NINETEENTH CONGRESS OF THE )

REPUBLIC OF THE PHILIPPINES )
First Regular Session )
HOUSE OF REPRESENTATIVES

House Bill No._8965_

Introduced by Representative Ralph G. Recto

AN ACT
EXPANDING THE PURPOSES AND APPLICATION OF THE SPECIAL
EDUCATION FUND, AMENDING FOR THE PURPOSE SECTION 272 OF
REPUBLIC ACT NO. 7160, OTHERWISE KNOWN AS THE LOCAL
GOVERNMENT CODE OF 1991, AND FOR OTHER PURPOSES

EXPLANATORY NOTE

It is embodied under our Constitution that the State shall protect and promote
the right of all citizens to quality education at all levels and shall take appropriate steps
to make such education accessible to all.!

Providing basic public education has always been the responsibility of the central
government. However, with the enactment of Republic Act No. 7160, otherwise
known as the Local Government Code of 1991 (LGC), local government units (LGUs)
now provide supplementary funding support to basic public education through a
recurring financial source known as the Special Education Fund (SEF). The SEF was
created under Section 235 of the LGC wherein LGUs are mandated to impose and
collect an additional one percent (1%) on real property tax, which will accrue to SEF
and in tun, automatically released to the local school boards. Section 272 of the LGC
further provides that the proceeds of the SEF shall be allocated for the following
purposes, namely: (a) operation and maintenance of public schools; (b) construction
and repair of school buildings, facilities and equipment; (c) educational research; (d)
purchase of books and periodicals; and (e) sports development.

1 Section 1, Article XIV of the 1987 Philippine Constitution.

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LGUs have consistently pointed out that the abovementioned purposes of the
SEF have been deemed to be too restrictive and are no longer responsive to the needs
of the stakeholders in basic public education. Proper utilization of the SEF may help
address the public education sector’s perennial problems of lack of funding, teachers
or instructors and classrooms.

This bill seeks to introduce amendments to Section 272 of the LGC by expanding
the purposes and application of the SEF by including the construction and repair of
libraries, payment of salaries, allowances and other benefits of teaching and non-
teaching personnel, competency trainings for teaching personnel, operation of non-
formal education programs or alternative learning system (ALS) including the payment
of the salaries of ALS facilitators and all other expenditures relative to the promotion
of accessible public education.

To better ensure the quality and competitiveness of our public education system,
the purposes and application of the SEF must be amended and expanded.

In view of the foregoing, the approval of this bill is earnestly sought.

LPH


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NINETEENTH CONGRESS OF THE )

REPUBLIC OF THE PHILIPPINES )
First Regular Session )
HOUSE OF REPRESENTATIVES

ho, 6965

House

Introduced by Representative Ralph G. Recto

AN ACT
EXPANDING THE PURPOSES AND APPLICATION OF THE SPECIAL
EDUCATION FUND, AMENDING FOR THE PURPOSE SECTION 272 OF
REPUBLIC ACT NO. 7160, OTHERWISE KNOWN AS THE LOCAL
GOVERNMENT CODE OF 1991, AND FOR OTHER PURPOSES.

Be it enacted by the Senate and House of Representatives of the Philippines in
Congress assembled:
Section 1. Section 272 of Republic Act No. 7160 is hereby amended to read as
follows:
“Sec. 272. Application of the Proceeds of the Additional One
Percent SEF Tax. — The proceeds from the additional one percent
(1%) tax on real property accruing to the Special Education Fund
(SEF) shall be automatically released to the local school boards.
Provided, That in case of provinces, the proceeds shall be divided
equally between the provincial and municipal school boards.
Provided, however, That the proceeds shall be allocated for the
operation and maintenance of public schools, construction and repair
of school buildings AND LIBRARIES, facilities, and equipment,
PAYMENT OF SALARIES, ALLOWANCES AND OTHER
BENEFITS OF TEACHING AND NON-TEACHING PERSONNEL,
COMPETENCY TRAININGS FOR TEACHING PERSONNEL,
OPERATION OF ALTERNATIVE LEARNING SYSTEM (ALS)
INCLUDING PAYMENT OF SALARIES, ALLOWANCES AND
OTHER BENEFITS OF ALS LEARNING FACILITATORS,
educational research, purchase of books and periodicals, [and]

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sports development, AND ALL OTHER EXPENDITURES
RELATIVE TO THE PROMOTION OF ACCESSIBLE PUBLIC
EDUCATION as determined and approved by the local school
board.”

S000"

Sec. 2. Implementing Rules and Regulations. ~The Department of Interior and
Local Government and the Department of Education shall jointly promulgate the
necessary rules and regulations for the faithful and effective implementation of the
provisions of this Act within thirty (30) days from the date of its effectivity.

Sec. 3. Repealing Clause. - All laws, acts, decrees, executive orders, issuances,
and rules and regulations or parts thereof which are contrary to and inconsistent with
this Act are hereby repealed, amended or modified accordingly.

Sec. 4. Effectivity. - This Act shall take effect fifteen (15) days after its complete
Publication in the Official Gazette or in at least two (2) newspapers of general
circulation.

Approved,