Republic of the Philippines
HOUSE OF REPRESENTATIVES
Queson City

SEVENTEENTH CONGRESS
‘Second Regular Session

House BILLNo.?271

Introduced by HON. LUIS RAYMUND “LRAY” F. VILLAFUERTE, JR.

EXPLANATORY NOTE

Classroom shortage remains a burden on the education system in the country,
affecting those from highly-populated areas to the rural schools. Despite the increase
in the Department of Education's budget, the additional funding is still unable to cope
with the current demand’ as well as increase in the number of enrollees expected in
the coming years. The agency plans to tackle this problem through “creative”
strategies? such as high-rise school buildings and school communities outside urban
centers. However, plans would fail to come to fruition without support from the State.

This bill intends to improve the levy and use of the Special Education Fund (SEF). The
SEF is collected from the additional 1% tax on real property established under
Republic Act No. 7160, or the Local Government Code. This bill proposes to amend
the said RA to grant municipalities the power to levy and collect SEF. This intends to
empower the Local Government Units and the local school boards and help support
the funding problem for classroom shortages. The bill also proposes to expand the
use of the SEF for the payment of honoraria for volunteer school teachers and use the
SEF as payment or collateral for loans, debts or credits from lending institutions.

The approval of this bill is earnestly sought.

" http://www. philstar.com/cebu-news/2017/0S/16/1700464/
? https://www.rappler.com/nation/172372-deped-address-ph-Classroom-shortage


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Queson City

SEVENTEENTH CONGRESS
Second Regular Session

HOUSE BILL No. 7271

Introduced by HON. LUIS RAYMUND “LRAY” F. VILLAFUERTE, JR.

—

AN ACT
EXPANDING THE PURPOSES AND APPLICATION OF THE SPECIAL
EDUCATION FUND (SEF), AMENDING FOR THE PURPOSE SECTIONS 100, 235
AND 272 OF REPUBLIC ACT 7160, OTHERWISE KNOWN AS THE LOCAL
GOVERNMENT CODE OF 1991

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

SECTION 1. Section 100 of Republic Act No. 7160, otherwise known as the
“Local Government Code of 1992” is hereby amended to read as follows. - “Sec.
100 Meeting and Quorum; Budget.

(a) The local school board shall meet at least once a month or as often as
necessary.

(b) Any of the co-chairmen may call a meeting. A majority of all its members shall
constitute a quorum. However, when both co-chairmen are present in the
meeting, the local chief executive concerned, as a matter of protocol, shall be
given preference to preside over the meeting. The division superintendent, city
superintendent, or district supervisor, as the case may be, shall prepare the
budget of the school board concerned. Such budget shall be supported by
programs, projects, and activities of the school board for the ensuing fiscal year.
The affirmative vote of all the members shall be necessary to approve the
budget.

(c) The annual school board budget shalll give priority to the following:


a. Construction, repair, and maintenance of school buildings and other
facilities of public elementary and secondary schools;

b. Establishment and maintenance of extension classes where necessary;
and

c. [Sports activities at the division, district, municipal, and barangay levels]
PAYMENT OF SALARIES, ALLOWANCES, AND OTHER BENEFITS
OF TEACHERS INCLUDING THE CREATION OF TEACHER ITEMS
FOR THE SAID EXTENSION CLASSES, TEACHING AIDS, AND
OTHER INSTRUCTIONAL MATERIALS.”

SECTION 2. Section 235 of the same Code is hereby amended to read as follows.
— “Sec. 235. Additional Levy on Real Property for the Special Education Fund. —

A special education fund (SEF) is hereby created for every local government unit
mentioned hereunder to be funded from the additional levy on real property prescribed
under this section.

A province, city, or municipality within the Metropolitan Manila Area, may levy
and collect an annual tax of one percent (1%) on the assessed value of real property
IN THEIR RESPECTIVE TERRITORIAL JURISDICTION which shall be in addition to
the basic real property tax PROVIDED UNDER THIS CODE.

EVERY MUNICIPALITY OUTSIDE THE METROPOLITAN MANILA AREA
MAY LIKEWISE LEVY AND COLLECT AN ANNUAL TAX OF ONE HALF PERCENT
(1/2%), ON THE ASSESSED VALUE OF THE PROPERTY WITHIN SAID
MUNICIPALITY. The proceeds OF THE ADDITIONAL LEVY STATED IN THE
PRECEDING PARAGRAPHS thereof shall exclusively accrue to the Special
Education Fund (SEF) OF THE LOCAL GOVERNMENT UNIT CONCERNED.

SECTION 3. Section 272 of the same Code is hereby amended to read as follows.
-“Sec. 272. Application of Proceeds of the Additional One Percent Special Education
Fund (SEF) Tax. —


The proceeds from the additional one percent (1%) tax on real property
accruing to the Special Education Fund 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 maintenance of additional school buildings and/or other related
facilities as determined by the local school board. INCLUDING BUT NOT LIMITED TO.
THE FOLLOWING: PARENTS'-TEACHERS’ ASSOCIATIONS AND/OR ASSEMBLY
HALLS AND SCHOOL STAGES, PROCUREMENT OF SERVICE VEHICLES FOR
USE IN THE TRANSPORT OF TEACHERS AND NON-TEACHING PERSONNEL,
INSTALLATION OF COMPUTER SOFTWARE AND HARDWARE, PURCHASE
AND/OR ACQUISITION OF LABORATORY EQUIPMENT, REPAIR AND
MAINTENANCE OF ALL SUCH OTHER SCHOOL-RELATED EQUIPMENT AND
FACILITIES, PAYMENT OF ELECTRIC AND WATER BILLS, EDUCATION
RESEARCH, PURCHASE OF PRESCRIBED TEXTBOOKS, PERIODICALS, AND
OTHER REFERENCE MATERIALS, INSTRUCTIONAL MATERIALS, TEACHING
AIDS, AND SPORTS DEVELOPMENT, PAYMENT OF SALARIES, ALLOWANCES
AND OTHER BENEFITS OF TEACHING AND NON-TEACHING PERSONNEL,
ESTABLISHMENT AND CREATION OF EXTENSION CLASSES INCLUDING THE
CREATION OF NEW TEACHER ITEMS AS WELL AS CONTRACTUAL POSITIONS:
PROVIDED, THAT THE HIRING OF TEACHERS THEREFORE SHALL BE IN
ACCORDANCE WITH THE SELECTION AND PROMOTION SYSTEM OF THE
DEPARTMENT OF EDUCATION SUCH AS RANKING AND LOCALIZATION:
PROVIDED, FURTHER, THAT THE TEACHER HIRED SHALL BE PAID A SALARY
EQUIVALENT TO THAT RECEIVED BY A NATIONALLY PAID SCHOOL TEACHER,
PROVIDED FURTHERMORE, THAT THE SAID TEACHER SHALL BE ENTITLED,
WHENEVER POSSIBLE, TO THE SAME ALLOWANCES RECEIVED BY THE
LATTER, REMUNERATION OR HONORARIA OF VOLUNTEER SCHOOL
TEACHERS; SCHOLARSHIP AND TRAINING OF STUDENTS, TEACHERS, AND
SCHOOL ADMINISTRATORS AS WELL AS CONTRIBUTIONS TO SEMINARS,
WORKSHOPS, RESEARCH STUDIES, CONFERENCES AND MEETINGS FOR
THE PUBLIC EDUCATIONAL SECTOR.


THE RESPECTIVE LOCAL SCHOOL BOARDS OF A PROVINCE CITY, OR
MUNICIPALITY WITHIN THE METRO MANILA AREA, INCLUDING THE LOCAL
SCHOOL BOARD OF A COMPONENT MUNICIPALITY OF A PROVINCE SHALL.
DETERMINE THE SPECIFIC FUND ALLOCATION AS TO THE AMOUNT AND
SCHEDULE OF DISBURSEMENT OF THE SPECIFIC USES OF THE SCHOOL
BOARD FUND BY VOTE OF THE MAJORITY OF THE QUORUM OF THE LOCAL
SCHOOL BOARD CONCERNED PROVIDED, FURTHER THAT THE RESPECTIVE
LOCAL SCHOOL BOARDS SHALL BE AUTHORIZED TO EXTEND ASSISTANCE
TO OTHER LOCAL SCHOOL BOARDS FOR THE PURPOSES PREVIOUSLY
PROVIDED.

A PROVINCE, CITY, OR MUNICIPALITY MAY USE THE SPECIAL
EDUCATION FUND (SEF) AS LOAN COLLATERAL IN OBTAINING A LOAN,
CREDIT, OR INDEBTEDNESS FROM ANY FINANCIAL INSTITUTION, ENTITY, OR
INTERMEDIARY: PROVIDED, THAT THE PURPOSE OF THE LOAD SHALL BE THE
SAME AS THOSE STATED ABOVE AS ALLOWABLE USES FOR THE SEF:
PROVIDED, FURTHER, THAT THE PROJECT TO BE FINANCED AND THE USE
OF THE SEF AS COLLATERAL MUST BE APPROVED BY THE MAJORITY OF ALL
THE MEMBERS OF THE LOCAL SCHOOL BOARD: PROVIDED, FURTHERMORE,
THAT THE LOAN MUST BE INCLUDED IN THE LOCAL GOVERNMENT UNIT'S
BUDGET AND THERE MUST BE PROPER APPROPRIATIONS FOR THE
PURPOSE PROVIDED, FURTHERMORE, THAT THE LOCAL SCHOOL BOARD
MUST AUTHORIZE THE TRANSFER OF THE SEF TO THE GENERAL FUND, TO
THE EXTEND NEEDED TO AMORTIZE LOANS DULY INCURRED BY THE LOCAL
GOVERNMENT UNIT: PROVIDED, FURTHERMORE, THAT THE LOCAL SCHOOL
BOARD MUST AUTHORIZE THE TRANSFER OF THE SEF TO THE GENERAL
FUND, TO THE EXTENT NEEDED TO AMORTIZE LOANS DULY INCURRED BY
THE LOCAL GOVERNMENT UNIT: PROVIDED, FURTHERMORE, THAT THE
PAYMENT OF THE PRINCIPAL INTEREST, AND/OR OTHER COSTS SHALL BE
CHARGEABLE TO SEF OF THE BORROWING LOCAL GOVERNMENT:
PROVIDED, FINALLY, THAT THE LENDER INSTITUTION OR FINANCIAL
INTERMEDIARY PROVIDING TO ARRANGING THE LOAN OR CREDIT TO THE
SCHOOL BOARD OF A PROVINCE, CITY, OR MUNICIPALITY WITHIN THE
METRO MANILA SHALL BE ENTITLED TO AN ASSIGNMENT OF THE


CORRESPONDING PORTION OF THE FUND ACCRUING TO THE LOCAL
SCHOOL BOARD CONCERNED WHICH SHALL CONSTITUTE A PREFERRED OR
PRIORITY LIEN OR ENCUMBRANCE ON SAID FUND AND SAID LENDING
INSTITUTION OR INTERMEDIARY SHALL BE ENTITLED TO DEBIT THE
ACCOUNT DEPOSIT OR PLACEMENT OF THE BORROWING LOCAL SCHOOL
BOARD AS AND WHEN PAYMENT SCHEDULE OF THE LOAN, CREDIT OR
INDEBTEDNESS BECOME DUE AND PAYABLE WITHOUT NEED OF FURTHER
NOTICE OR DEMAND TO THE LOCAL SCHOOL BOARD TO ENSURE TIMELY
PAYMENT OF SUCH LIABILITIES OR OBLIGATIONS OF THE LOCAL SCHOOL
BOARD CONCERNED.

SECTION 4. Repealing Clause. — All other laws, decrees, executive orders, and other
administrative issuances and parts thereof which are inconsistent with the provisions
of this Act are hereby modified, amended, superseded or repealed accordingly.

SECTION 5. Effectivity. — This Act shall take effect after fifteen (15) days following

the completion of its publication in the Official Gazette or any major daily newspaper
of general circulation in the Philippines.

Approved,