. SENATE
OFFICE OF THE SECRETARV
FIFTEENTH CONGRESS OF THE )
REPUBLIC OF THE PHILIPPINES )

First Regular Session ) ye wiz P14

SENATE eu : ,
s.B_1212 - a °

Introduced by Senator Manny Villar

EXPLANATORY NOTE

To be able to bring out the best in students, it is my humble opinion that only the
best teachers will be able to bring them out.

This legislation that is being sought to be passed does not seek to provide for the
best teachers to teach in educational institutions; it seeks to provide for the most
passionate teachers to teach, and so, ensures that it will bring out the best in the
students accordingly. .

Passion can be said to be an existing trait in these former students because,
knowing that the students they are teaching came from the very situation that they were
once in, their passion to teach will be unmatched, as it will be incumbent upon them to
make sure that the maximum learning and knowledge shall be inculcated upon these
individuals.

If passion and learning coincide, the only benefit it will bring are good benefits
that will inure to our countrymen in general, and the students in particular.

MANNY VILLAR



ATE .
SECRETARY

FIFTEENTH CONGRESS OF THE)
REPUBLIC OF THE PHILIPPINES —)
First Regular Session )
VO WL 12 P14

SENATE...
s.p_1212 ; weceveo oy:__{¢ ”

Introduced by Senator Manny Villar

AN ACT
PROVIDING FOR TEACHING SERVICE AS PAYMENT FOR EDUCATIONAL
LOANS DRAWN FROM PUBLIC FUNDS, INCLUDING TUITION SUBSIDIES
FOR STUDENTS OF STATE UNIVERSITIES AND COLLEGES

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

Section 1. Title. — This Act shall be known as the “Service to Pay Act".

Section 2. Declaration of Policy. — It is the policy of the State to promote and
make quality education accessible to all Filipino citizens. Further, it is the policy of the
State to inculcate in the youth patriotism and nationalism, and encourage their
involvement in public and civic affairs. Towards this end, the State shall provide
mechanism to ensure that civic-mindedness and service orientation shall be inculcated
in the youth, and at the same time, ensure that education will retain the best and the
brightest pool of talents.

Section 3. Service to Pay. —

(a) Covered students as defined by the succeeding subsection shall be required
to render service by teaching primary and secondary students in areas identified
by the Department of Education.

(b) For the purposes of this Act, “covered students” shall mean all recipients of
government educational assistance as enumerated in Section 4 of Republic Act
6728 as amended.

Section 4. Length of Service. - Covered students shall render teaching service
equivalent to one-half (1/2) of the total years of their actual employment in post-
secondary programs.

Section 5. Assignments. —

(a) The Secretary of Education shall determine areas where covered students
shall be deployed. The determination shall include the actual number of teachers
needed and the subject-competencies required. The Secretary of Education may
establish other parameters for such determination.

(b) The Secretary of Education shall furnish the Student Loan Fund Authority of
the determined areas. The Student Loan Fund Authority shall then assign



covered students to determined areas, taking into consideration the student's
health, the physical location of the area, and such other considerations.

(c) Upon assignment, covered students shall be (1) under the administrative
(22?)

Section 6. Student Loan Fund Authority. — In addition to its existing powers
and duties under Republic Acts no. 6014 and 6728 as amended, the Student Loan Fund
Authority shall have the following powers and duties:

(a) Draw up a contract with the student-debtor as a requisite before he or she
can access funds from the Students’ Loan Fund. The contract shalll include a
service clause obliging the student-debtor to render service as a form of loan
payment.

(b) Order the issuance of the student's final clearance to the College Registrar
concerned upon compliance of the student with the provisions of this Act.

Section 7. Compliance. — Covered students shall be required to comply with the
provisions of this Act before the issuance of his or her transcript of records. The
Regional Offices of the Department of Education shall monitor compliance of covered
students within their jurisdiction.

The concerned Regional Director of the Department of Education shall certify to
the Student Loan Fund Authority that covered students have complied with the
provisions of this Act.

Section 8. Compensation. — Covered students shall receive salaries, benefits,
emoluments, and other compensation pursuant to existing laws.

Section 9. Appropriations. — The initial sum of Five Hundred Million Pesos
(PHP500,000,000) shall be allocated to implement the provisions of this Act, to be
charged equally against current appropriations for the President's Social Fund, and the
total gross earnings of the Philippine Amusements and Gaming Corporation
(PAGCOR). If the amount shall not be enough, the remaining balance shall be charged
against unappropriated earnings from the implementation of Section 4 of Republic Act
9337, further amending the National Internal Revenue Code of 1997 as amended.

Subsequent appropriations necessary to carry out this Act shall be charged
against the following sources

(a) Twenty per centum (20%) of revenues earned from the proceeds of lease,
privatization, and/or disposal of assets and/or sequestered by the National
Government and government-owned and controlled corporations, including
shares of stocks of corporations where the Government owns interests;

(b) Twenty-five per centum (25%) of revenues earned from the collection under
Section 4 of Republic Act 9337, further amending the National Internal
Revenue Code of 1997 as amended;

(c) Twenty-five per centum (25%) to be charged against the current
appropriations for the President's Social Fund; and



(d) Thirty per centum (30%) of total gross earnings of the Philippine Amusements
and Gaming Corporation (PAGCOR).

Section 10. Separability Clause. — If any provision of this Act is declared
unconstitutional, the same shall not affect the validity and effectivity of the other
provisions not affected thereby.

Section 11. Repealing Clause. — Section 10(c) of Republic Act 6728 as
amended is hereby modified. All laws, decrees, rules and regulations, and other
issuances inconsistent with the provisions of this Act are hereby repealed or modified
accordingly.

Section 12. Effectivity. — This Act shall take effect immediately upon
publication: Provided, That service clause provisions shall be included in educational
loan applications and enrolment forms of covered students in the academic year
following the effectivity of this Act.

Approved,