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REPUBLIC OF THE PHILIPPINES

HOUSE OF REPRESENTATIVES 31 JUL 2012

Quezon City, Metro Manila

FIFTEENTH CONGRESS
Third Regular Session

6426

House Bill No.

Introduced by Rep. V. Dennis M. Socrates

EXPLANATORY NOTE

Manpower development programs jin the agricultural sector have been focused
primarily on technologists and scientists. Every year, universities and colleges in the
country produce sizable numbers of graduates in agriculture-related courses. Many of
these graduates find work in government agencies, companies engaged in agriculture, but
unfortunately a good number do not end up working in agri-related jobs.

However, because of this bias, few graduates have ventured into the business of
farming or agricultural (or agri) entrepreneurship. This has contributed to the historical
underperformance of Philippine agriculture and the transformation of the country from an
agricultural exporter into a major importer of agricultural products. In fact, the
Philippines is already the largest importer of rice in the world. The same bias has tended
to perpetuate the negative outlook that agriculture is less of a profession or a business
enterprise than a means to daily subsistence: agriculture is often equated with poverty and
underprivileged status. An abundance of anecdotal reference points to children of farmers
preferring education in the professions or work in the factories or in the service sector in
large urban areas to farming.

There have been initiatives to address the need for agricultural entrepreneurship
training programs. Family Farm Schools (in same cases they are known as Rural
Development Schools) have been established in various parts of the country since 1988
based on the original French model. Such schools provide boys and girls with vital actual
experience in agricultural operations and farm management during the formative high
school years. As a proof of the effectiveness of the system, about 2,000 schools around
the world have copied the French model. The experience has been the same: farms
operate as business enterprises with significant results in profits for farming families and
incteases in food production.

The concept of Family Farm Schools may be extended to the post-secondary and
collegiate level. In 1994, Congress enacted Republic Act No. 7686 (The Dual Training
System Act of 1994), which institutionalized the dual training system, fusing technical
and vocational education with actual training. This dual training system has since

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produced thousands of graduates who have given technical and vocational education an
impetus into the industrial, manufacturing, and service sectors.

The new approach to education in agriculture espoused in this bill takes
inspiration from RA No. 7686. Through the measures proposed in this bill, the country
will train men and women as agriculture entrepreneurs, with actual or “hands on”
experience in farming business, who would consider agriculture as an entrepreneurial
activity. This can be accomplished through a /adderized system of agricultural education
and training that begins from secondary education especially in the proposed Senior High
Schools under the K+12 program. Further, this new approach aims to alleviate poverty
among farmers.

The bill does not seek to create new government agencies at a time when there is
renewed thrust fo streamline the bureaucracy. It also will not entail large appropriations.
Instead, it empowers the Department of Agriculture, through the Agricultural Training
Institute, to pursue the plans, goals and objectives of the bill, in partnership with the
private sector and non-governmental organizations (NGOs). Thus, this is a Private Public
Partnership for manpower development for the agriculture sector.

In view thereof, approval of this bill is earnestly sought.

ey, M. SOCRATES

Representative
2™ District Palawan


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Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City, Metro Manila

FIFTEENTH CONGRESS
Third Regular Session

6426

House Bill No.

Introduced by Rep. V. Dennis M. Socrates

AN ACT TO STRENGTHEN
AGRICULTURAL EDUCATION AND TRAINING IN THE PHILIPPINES
BY INSTITUTIONALIZING
THE PHILIPPINE MANPOWER DEVELOPMENT PLAN
FOR AGRICULTURE ENTREPRENEURSHIP,
PROVIDING FOR ITS MECHANISM, APPROPRIATING FUNDS
THEREFOR AND FOR OTHER PURPOSES.

Section 1. Title. —- This Act shall be known as The Agriculture
Entrepreneurship Act of 2011.

Section 2. Declaration of Policy. - It is hereby declared the policy of
the State to develop and strengthen manpower education and training for
agricultural entrepreneurship in order to provide the country with a pool
of an educated and skilled agricultural manpower equipped with
appropriate skills in agriculture and business, and desirable work habits
and attitudes. The manpower development plan for agriculture
entrepreneurship, as successfully implemented in other countries, shall
be adopted in duly accredited vocational and technical schools, in
cooperation with accredited agricultural, industrial and business
establishments, as one of the preferred means of creating a dependable
pool of well-trained farmers, agriculturists and entrepreneurs for the
economy.

To achieve this, the State hereby establishes the Agricultural
Manpower Education and Entrepreneurship System (AMEES) that will
assume a leadership role in secondary and tertiary level agricultural and
entrepreneurship education.

Section 3. Objectives. - This Act shall have the following
objectives:


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(a) Encourage application of manpower education and training for
agriculture entrepreneurship in agricultural, technical and
vocational education and training by both public and private
schools within the context of existing agricultural training and
educational system;

(b) Promote investment in manpower education and training for
agriculture entrepreneurship by both public and private sectors
especially in rural areas;

(c) Enhance the technical competence of students of agriculture by
equipping them with analytical and creative thinking and
problem-solving abilities; manipulative competencies suitable
for occupational standards and requirements; values and
attitudes with emphasis on work ethics, quality orientation,
discipline, honesty, self-reliance and patriotism; and

(d) Strengthen training cooperation between _ agricultural,
industrial and business establishments and educational
institutions by designing and implementing relevant training
programs in close coordination with local government units.

Section 4. Definition of Terms. - For purposes of this Act, the

following terms shall mean:

(a) Appropriate authority refers to the government entity in charge
of implementing the provisions of this Act on manpower
education and training for agriculture entrepreneurship;

(b) Manpower education and training for _agriculture
entrepreneurship refers to the instructional delivery system of
agricultural, technical and vocational education and training
that combines hands-on training and in-school training based
on a training plan designed and implemented by an accredited
manpower education and training for _ agriculture
entrepreneurship institution/training center and accredited
dual system agricultural, industrial and — business
establishments with prior notice and advice to the local
government unit concerned. Under this system, said
establishments and the educational institution share the
responsibility of providing the trainee with the best possible
competencies and experience, the former essentially through
practical training and the latter, by providing an adequate level
of specific, general and theoretical instruction on agriculture
and entrepreneurial management. Dual shall refer to the two


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parties providing instruction; system does not connote
independent action of the two parties but connotes coordinated
efforts;

(c) Trainee refers to a person qualified to undergo the manpower
education and training for agriculture entrepreneurship;

(d) Accredited dual training system educational institution or
training center refers to a public or private institution duly
recognized and authorized by the appropriate authority in
coordination with the agricultural sector, business and
industry, to participate in the manpower education and training
for agricultural entrepreneurship;

(e) Establishments refers to enterprises or services, or both, of
agricultural, industrial, or business establishments;

() Accredited dual training system agricultural, industrial and
business establishments refers to a juridical entity duly
recognized and authorized by the appropriate authority to
participate in the dual system for manpower education and
training for agriculture entrepreneurship.

Section 5. Institutionalization of the manpower education and
training for agriculture entrepreneurship. - The manpower education and
training for agriculture entrepreneurship (hereafter the System) shall be
institutionalized in the Philippines in accordance with the provisions of
this Act.

Section 6. Coverage. ~ This Act shall apply to all public and
private educational institutions or training centers, and agricultural,
industrial and business establishments duly accredited to participate in
the manpower education and training for agriculture entrepreneurship.

Section 7. Components of the Manpower Education and Training
for Agriculture Entrepreneurship. ~The manpower education and training
for agricultural entrepreneurship shall have the following components:

1. There shall be a ladderized system of agriculture
entrepreneurship education that begins in the secondary level and
culminates in applicable collegiate courses. The secondary level
education shall follow the system of education of the Family Farm
Schools and/or Rural Development Schools. The post-secondary
Program shall involve the conferment of a Diploma in Agriculture


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Entrepreneurship upon graduation of the trainee from the Farm
Business Schools who shall have the option to continue his studies
in partner universities for a degree in Bachelor of Science in
Entrepreneurial Management, major in Farm Business;

2, There shall be created for each administrative region
(excluding the National Capital Region) an AMEE Development
School and such other schools as may be established by law;

3. There shall be an instructional delivery system of
agricultural, technical and vocational education and training
beyond the secondary level called the Farm Business Schools that
combines hands-on training and in-school training based on a
training plan designed and implemented by an accredited
manpower education and training for agriculture entrepreneurship
institution/training centre and accredited dual system
agricultural, industrial and business establishments with prior
notice and advice to the local government unit concerned. Under
this dual system, said establishments and the educational
institution share the responsibility of providing the trainee with the
best possible competencies and experience, the former essentially
through practical training and the latter, by providing an adequate
level of specific, general and theoretical instruction on agriculture
and entrepreneurial management;

4, The AMEE System shall include instruction on vital values
on citizenship, governance, entrepreneurship, work ethics, quality
orientation, discipline, honesty, and self-reliance;

5. The partnership between the public, private and voluntary
sectors shall be a crucial component of the AMEE System in both
academic content and in on-the-job or hands-on training;

6. The AMEE System shall be promoted among poor farming
families and out-of-school youth in the rural areas and in agrarian
reform communities; the State shall ensure that poor and
deserving youths receive the necessary grants and scholarships.

Section 8. Board of Trustees. ~ There shall be a Board of Trustees

composed of the Secretary of the Department of Agriculture as ex-officio
Chairman, the Secretary of Department of Education (DepEd) as cx-
officio Vice Chairman, and the following members:


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1. The Chairman of the Commission on Higher Education
(CHED);

2. The Chairman of the Technical Education and Skills
Development, Authority (TESDA);

3. The Director of the Bureau of Micro, Small and Medium
Enterprise and Development (BMSMED);

4. The Chairman of the National Anti-Poverty Commission
(NAPC);

5. The Chairman of the National Youth Commission (NYC);

6. One representative each from the private sector representing
higher education, industry, agriculture, and new and emerging
agricultural technologies, and the voluntary sector or non-
governmental organizations. The private sector representatives
shall be appointed by the Chairman subject to the confirmation of
the Board of Trustees. For the first set of appointments, three (3) of
them shall serve for four (4) years, while the other two (2) for two
(2) years, thereafter, succeeding appointments shall have a fixed
term of four (4) years.

The Board shall exercise the following powers:

(a) Formulate policies and guidelines for the administration and
operation of the AMEE System;

(b) Formulate policies on the appointment, promotion, retention,
removal, renewal, rewards and incentives for administrators,
faculty and staff;

(c) Approve the curricula submitted by the Executive Director;

(d) Approve the criteria for the selection and admission of students;

(c) Approve the grant of scholarship, stipend and such allowances
for students;

(| Approve the graduation of successful candidates from the
various AMEES campuses;

(g) Formulate policies and rules of discipline for students, faculty
and staff;


(h) Approve the AMEE System budget and appropriate to the ends
specified by law such sums as may be provided by law for the
support of the System;

(i) Receive grants whether cash, land, buildings and improvements
thereof; donations, contributions, bequest, gifts, and to formulate
policies for the administration thereof;

(i) Develop policies for the expansion of enrollment in the
campuses under the AMEE System;

(k) Set policies and criteria to rationalize the establishment of
AMEE schools under the System, for its evaluation and approval
thereof; and

(I) Prepare strategic plans to enhance the capability of the System
in developing human resources with focus on youth with special
aptitudes and inclination to agriculture and entrepreneurship.

Section 9. Planning and Coordination for In-plant Training. - The
Agricultural Coordinating Office of the Agricultural Training Institute
(ATI) of the Department of Agriculture shall plan, set standards,
coordinate, monitor and allocate resources in the implementation of the
provisions of this Act and in support of the in-plant training or on-the-
job training component of the AMEE System: provided that the
agricultural and or agro-industrial establishment shall be required to
furnish the educational institution with the necessary information for the
purpose of supervision.

The Agricultural Coordinating Office shall be headed by an
Agricultural Coordinator (AC) with at least an officer-level rank. The
agricultural coordinator may be assisted by such other personnel as may
be necessary for the effective discharge of the functions of the office.

‘The AC shall perform the following roles and functions:

1. Coordinate curriculum planning activities for the AMEE System;

2. Coordinate publication of research outputs of the teachers,
administrators and students from the AMEE. System;

3. Provide legal and technical support to the members of the
System;

4. Coordinate exchange programs with other educational
institutions both local and foreign;


5. Develop and coordinate linkages and networking among the
campuses of the AMEE System with other institutions;

7. Coordinate the implementation of the program for the
identification and selection of scholars for the AMEE System;

8. Provide for the secretariat services of the Board of Trustees;
9. Perform other functions as may be deemed necessary.

For the efficient and effective implementation of the foregoing
functions, the AC shall be provided with a staff.

Section 10. Status of trainee. For the duration of the senior high
school and post-secondary training under the system, the trainee is to be
considered not an employee of the business/ industrial establishment but
rather a trainee of both the accredited dual training system educational
institution and the agricultural, industrial and business establishments:
provided that the union or the workers of the latter have been duly
informed in advance of such an agreement.

A trainee who has successfully completed a training program in a
particular agricultural, industrial or business establishment shall be
given priority of employment in that agricultural, industrial or business
establishment. The appropriate authority shall keep a roll of these
successful trainees for purposes of identifying them for employment.

Section 11. Incentives for participating establishments. ‘To
encourage agricultural, industrial and business establishments to
participate in the system, they shall be allowed to deduct from their
taxable income the amount of one hundred and fifty (150) per cent of the
system expenses paid to the accredited dual training system educational
institution for the establishment's trainees: provided that such expenses
shall not exceed five (5) per cent of their total direct labor expenses but in
no case to exceed twenty-five million pesos (P25,000,000) a year.

Donations for the operation of the system shall be deductible from
the taxable income of the donors. Donations to government-run
educational institutions shall be awarded incentives under the “Adopt A
School Program.”

The Department of Finance shall issue the necessary rules and
regulations for the purpose of tax incentives provided herein.


Section 12. Obligations of accredited agricultural, industrial and
business establishments. The agricultural, industrial and business
establishments shall:

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(a) ensure that the necessary abilities and knowledge for the
trainee to achieve the purpose of his training are imparted to him
and shall provide such training systematically in accordance with
an approved training plan;

(b) appoint the training officer to implement the training plan;

(c) make available, free of charge, the consumable materials and
basic hand tools and equipment necessary for his training;

(d) allow the trainee to attend his in-school training and to sit for
his examinations;

(¢) require the trainee to keep his report book up to date and
inspect such books;

(9 ensure that the trainee is encouraged to develop his personality
and that he is protected from physical or moral danger;

(g) entrust to the trainee such jobs as are related to the purpose of
his training and are commensurate with his capabilities;

(h) pay to the accredited educational institution /training centre the
daily allowance of the trainee; and

(i) allow the trainee the necessary time off for his in-school
training.

Section 13. Obligations of the trainee. A trainee shall exert every

effort to acquire the abilities and knowledge necessary for him to achieve
the purpose of his training. Towards this end, he shall:

(a) carefully perform the jobs entrusted to him as part of his
training;

(b) take part in training programs for which he has been granted
time off under this Act;

(0) follow the instruction given to him as part of his training by the
training officer or any other person entitled to give him such
instructions;


(d) observe rules of behavior in the training premises;

(e) use tools, instruments, machines and other equipment with due
care;

(f not reveal any business or trade secrets that have come to his
knowledge in the course of his training; and

(g) keep his record books up to date.

Section 14. Obligations of the accredited educational
institutions/training centers. The educational _institutions/training
centers that have entered into a memorandum of agreement with
agricultural, industrial or business establishments to undertake training
shall:

(a) design, implement and evaluate jointly the training plan with
the accredited establishments;

(b) provide specific, general and occupation-related theoretical
instruction;

(c) appoint industrial coordinators to supervise the in-plant/farm
training;

(d) pay the trainee his daily allowance; and

(¢) perform such other tasks and activities as may be necessary
and in furtherance of the objectives of the training.

Section 15. Non-diminution of incentives. Nothing in this Act shall
be construed to diminish or reduce any privilege already enjoyed by the
parties concerned under existing laws, decrees or executive orders.

Section 16. Signing of memorandum of agreements by the
accredited dual training system agricultural, industrial and business
establishments, the accredited dual training system, educational
institution/training centre and the trainee. Before an individual
establishment begins with an accredited education institution/training
centre and the trainee or his representative, the individual establishment
shall provide the accredited educational institution/training centre and
the trainee with a copy of the signed agreement.

The memorandum of agreement shall set forth, among others, the
following:


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(a) the training plan;
(b) the nature and objective of the training;

(c) the commencement and duration of the training period,
including the total number of in-school and in-plant/farm training
hours;

(d) the normal daily training hours;

(c) the trainee's allowance and the rate to be applied, which in no
case shall start below seventy-five (75) per cent of the applicable
minimum daily wage for days spent in the establishments;

(f) the rights and obligations of the parties concerned in addition to
those provided in Sections 12, 13 and 14;

(g) the definition of the status of the trainee according to Section
10 of this Act;

(h) the conditions for the termination of the training agreement;
(i) the performance, monitoring and evaluation system; and

() such other essential particulars as would mutually benefit all
parties concerned.

Section 17. Insurance coverage of the trainee. Every agricultural,
industrial and business establishment undertaking training, in
accordance with the provisions of this Act, shall sign a life and/or
accident insurance policy on the life of the trainee with the insured and
the spouse, children or parents of the trainee as the beneficiaries thereof:
provided that the agricultural, industrial and business establishments
shall pay for the premiums of said insurance policy.

Section 18. Revolving fund. Any law, rule or regulation to the
contrary notwithstanding, the accredited dual training system
educational institution/training centre is hereby authorized to retain as
a revolving fund the amount paid to it by the agricultural, industrial and
business establishments representing the actual dual training expenses.
The fund shall be used to improve the operation of the dual training
system.

Section 19. Implementing rules. The appropriate authority and
the Department of Finance, upon prior consultation with the business


and industry concerned, shall issue the necessary rules and regulations
for the effective implementation of this Act within a period of ninety (90)
days after its effectivity. Any violation of this section shall render the
concerned officials liable under R.A. No. 6713, otherwise known as the
"Code of Conduct and Ethical Standards for Public Officials and
Employees” and other existing administrative and/or criminal laws.

Section 20. Other exemption from taxes and duties. Any donation,
contribution, bequest, subsidy or financial aid which may be made for
the operation of the system shall constitute an allowable deduction from
the income of the donors for income tax purposes and shall be exempt
from donor's tax, subject to such conditions as provided under the
National Internal Revenue Code, as amended. Essential equipment,
apparatus and materials imported by accredited dual training private
educational institutions shall be exempt from taxes and duties: provided
that the importation of these items shall be subject to the following
qualifications:

(a) that the importation shall be certified by the appropriate
authority;

(b) that they should be actually, directly and exclusively used in
connection with the dual training system and any unauthorized
use shall subject the accredited dual training private educational
institutions to payment of taxes and duties thereon; and

() that they are not available locally in sufficient quantity of
comparable quality, and at reasonable prices:

Provided, however, that taxes and duties pertaining to the
importations of accredited government and dual training educational
institutions are deemed automatically appropriated.

‘The Department of Finance shall accumulate the necessary rules
and regulations to implement the provisions of this section.

Section 19. Appropriations. For the initial implementation of this
Act, an amount of fifty million pesos (P50,000,000) shall be charged
against the current year's appropriation of the contingency fund.
Thereafter, such sums as may be necessary for its continued
implementation shall be included in the annual General Appropriations
Act.


Section 20. Separability clause. If for any reason any provision of
this Act is declared invalid or unconstitutional, the rest shall not be
affected thereby.

Section 21. Repealing clause. All laws, decrees, orders, rules and
regulations or parts thereof inconsistent with this Act are hereby
repealed or modified accordingly.

Section 22. Effectivity. This Act shall take effect after completion
of its publication in the Official Gazette or in two (2) newspapers of
general circulation.

Approved,