FOURTEENTH CONGRESS OF THE 
First Regular Session 
REPUBLIC OF THE PHILIPPINES 
SENATE 
S. B. No. 915 
Introduced by SENATOR EDGARDO J. ANGARA 
EXPLANATORYNOTE 
The era of globalization has placed extreme pressure on our 
government to produce highly specialized and technical personnel in a 
relatively short period of time. Given the rapid changes and developments in 
the field of Information Technology and emergence of knowledge-based 
society, the Philippines has to reorient the thrusts of its educational system 
to meet the growing needs and demands of a highly competitive world 
market. 
To achieve this arduous task, there is a need to formulate a viable, 
comprehensive and sustainable long-term modernization plan for schools 
primarily at the elementary and secondary levels. 
At present, the students in public schools have been left behind by 
their counterparts in the private schools. 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, A computer laboratory consists of a 
minimum of 10 computers. 
Given the scarce resources of the national government, there is a need 
to be more cost-effective and innovative in our approach to finance school 
modernization programs. This can be achieved through active partnership 
with local government units and private sector such as foundations private 
corporations and business groups. 
The School Modernization and Innovation bill aims to: 
a) Provide a broad framework for the institutionalization of a 
comprehensive and sustainable modernization program for the 
public schools; 
b) Encourage the schools to become more innovative and resourceful 
in developing and implementing programs geared towards 
modernization; 
Develop mechanisms that will define the roles and responsibilities 
of the officials from the regional, division down to the school levels 
in the implementation of school modernization programs; 
d) Provide mechanism on how the private sector can participate in 
the program; 
e) Define regional and school modernization plans responsive to the 
needs of the students in the area.& 
c) 


The bill also seeks to establish the School Modernization and 
Innovation Trust Fund which will augment the regular appropriations that 
will be provided under the annual General Appropriations Act to finance the 
priority programs for school modernization and improvement of public 
elementary and secondary schools. 
This is the opportune time for the government to seriously consider 
ways of increasing the share of budget devoted to computerization of schools, 
upgrading of libraries and science laboratories. Moreover the application of 
information technology in classroom instruction would increase efficiency in 
teaching and learning process and enhance competencies of students. 
In view of the foregoing, the immediate passage of this bill is earnestly 
sought. 
EDGARDO J. ANGARA 
Senator 


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FOURTEENTH CONGRESS OF THE 
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First Regular Session 
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REPUBLIC OF THE PHILIPPINES 
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SENATE 
S. B. No. 915 
Introduced by SENATOR EDGARDO J. ANGARA 
AN ACT INSTITUTIONALIZING A SCHOOL MODERNIZATION AND 
INNOVATION PROGRAM FOR PUBLIC ELEMENTARY AND 
SECONDARY SCHOOLS, PROVIDING FUNDS THEREFOR, AND 
FOR OTHER PURPOSES 
Be it enacted by the Senate and House of Representatives in Congress 
amem bled: 
SECTION 1. Title. - This Act shall be known as the "School 
Modernization and Innovation Act of 2001". 
SECTION 2. Declaration of Policy. - 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 
@)To encourage the schools to become more innovative and 
resourceful in developing and implementing programs geared 
towards modernization 
(e) To develop mechanisms which will define the roles and 
responsibilities of the officials from the regional, division down to 
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the school levels in the implementation of the school modernization 
programs 
(d) To provide mechanisms on how the private sector can participate in 
the program 
(e) To define a regional, division and school modernization and 
innovation plan responsive to the needs of the students in the area. 
SECTION 4. Implementing 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 shall consist of the following: 
(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. 
(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 
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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 science equipment, which is essential in 
improving the competencies of the students in the area of science 
and technology. 
SECTION 6. Phased Implementation 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 DECS for the financing of the School Modernization and Innovation 
Program. 
SECTION 8. Formulation 
of 
Sch.001 Modernization and 
Innovation Plan at School and Regional Level. 
(a) National Modernization and Innovation Plan. The Secretary of 
Education in consultation with regional directors and schools 
division superintendents shall develop a comprehensive and 
sustainable modernization 
and innovation plan for public 
elementary and secondary schools nationwide which will be 
implemented within a period of 10 years. The plan shall be divided 
into short, medium and long term period of implementation. It shall 
take into account the rapid changes in the field of information 
technology, communication and instructional delivery in various 
part of the world. It shall also identify sources of funding both from 
local and international financial institutions as well as the role of 
private sector, local government units and other members of the 
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civil society. It shall likewise define the national standards and 
framework, which will be adopted in deveIoping the individual 
plans. 
(b) Regional Modernization and Innovation Plan. The Regional 
Director in coordination with the Schools Division Superintendents 
shall formulate a modernization framework consistent with 
national standards which will serve as the basis for the plan taking 
into consideration the specific needs, and requirements of the 
region. The regional plan shall highlight the peculiarities and 
unique needs of the various schools within its jurisdiction. 
(c) School Modernization and Innovation Plan. Each school shall 
formulate its own 10-year modernization plan which reflects the 
aspirations and goals of the school based on the regional plan of 
action. The plan shall consist of an assessment of the existing needs 
of the school as well as an inventory of existing educational 
facilities, priority programs for the allocation of funds, strategies to 
mobilize financial resources to augment regular budget and 
strategies to manage the use of personnel, physical and fiscal 
resources. The individual plans of the schools shall be submitted to 
the regional offices for consolidation. 
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 
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collections of the travel tax; 
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4) The equivalent of 20 %of any additional increase annually in the 
fees for vehicle registration; 
5) The equivalent of 2% of the additional increase annually in 
revenue collections; 
6) Tlie equivalent of 10% of the sales of the lotto operations of the 
Philippine 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 10. Management and Administration of the Fund. - 
The Fund shall be administered by the Department of Education. For sound 
and judicious management 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 
used 
to underwrite 
overhead expenses 
of 
the 
administration; 
(b) Unless otherwise stipulated by the private donor, only earnings of 
private 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. 
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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 instructional communication technology. 
(c) Procurement of computer equipments including maintenance of 
computer, laboratories, audio visual and multimedia facilities, and 
appropriate education technology softwares 
(d) Procurement of science equipments for science laboratories in 
schools 
SECTION 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. 
(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 
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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 P500,000.00 and less. 
However, the approved project proposals with a funding requirement of 
more than P500,000.00 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 SchooI 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. 
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SECTION 16. Implementing Rules and Regulations. - The 
Secretary of Education shall promulgate thie 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, 
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