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EIGHTEENTH CONGRESS
Second Regular Session

7640

HOUSE BILL NO,

Introduced by HON. JOY MYRA S. TAMBUNTING

EXPLANATORY NOTE

Philippines is endowed with vast natural resources. It has fertile and arable lands which makes
agriculture one of the essential industries in the country. Younger generations however, are
discouraged from pursuing careers in agriculture as the sector is characterized by persistent
poverty levels—the common misconception being: “farming is a poor person’s job.”

Formal education is vital in changing this misconception about agricultural careers. The education
system for the longest time has focused on preparing students for higher education for purposes
of employability. The problem with this is that not everyone can pursue careers in their fields
after graduation. The Philippines is an agricultural country and agriculture is among the most
important sectors in the country, it is only appropriate that the education system highlight the
relevance of careers in agriculture. This could be done by revisiting the education system's
curriculum and introduce agricultural entrepreneurship across the various levels of education.

It is the responsibility of the State to ensure that agriculture is a viable and an attractive career
option for the younger generations. In this light, this proposed measure aims to complement the
Rural Farm Schools Act of 2016 which addresses the need for agricultural entrepreneurship
programs, This measure shall strengthen agricultural education through the establishment of the
Agricultural Manpower Education and Entrepreneurship System (AMEES) which shall assume a
leadership role in the post-secondary, vocational or tertiary level of agricultural and
entrepreneurship education. With the establishment of the AMEES, young Filipinos have the
option to specialize on agricultural entrepreneurship at the post-secondary level through various
programs and trainings under the ladderized system of agricultural education,

On behalf of the people of Parafiaque City’s Second District, and for the common good of the
Filipino people, the approval of the said measure is earnestly sought.



Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

EIGHTEENTH CONGRESS
Second Regular Session

House eit no. 7640

Introduced by HON. JOY MYRA S. TAMBUNTING

‘AN ACT
TO DEVELOP AND STRENGTHEN THE AGRICULTURAL EDUCATION AND
TRAINING IN THE COUNTRY THROUGH THE INSTITUTIONAUZATION OF
MANPOWERDEVELOPMENT FOR AGRICULTURAL ENTREPREURSHIP IN THE
POST-SECONDARY LEVEL

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

SECTION 1. Short Title. - This Act shall be known as the “Entrepreneurial Agricultural
Education Act of 2020."

Sec. 2. Declaration of Policy. — It is hereby declared the policy of the State to promote the
sustained development of a reservoir of national talents consisting of Filipino scientist,
entrepreneurs; professionals, managers, high-level technical manpower and skilled workers and
craftsmen in all fields. Towards this end, manpower education and training in the agricultural
sector must be developed and strengthened in order to provide the country with a pool of
educated and skilled agricultural manpower equipped with appropriate skills in agriculture and
business, and desirable work habits and attitudes.

Sec. 3. Agricultural Manpower Education and Entrepreneurship System. — The State
hereby establishes the Agricultural Manpower Education and Entrepreneurship System (AMEES)
that will assume a leadership role in the post-secondary, vocational or tertiary level of agricultural
and entrepreneurship education, following the completion of the rural farm school's curriculum in
the secondary level,

Sec. 4, Objectives. - This Act primarily aims to develop and strengthen the agricultural
education and training in the country through the institutionalization of manpower development
for agricultural entrepreneurship in the post-secondary level. It shall have the following specific
objectives:

a. Encourage the application of manpower development for agricultural 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;

. Enhance the managerial skills and 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.

Sec. 5. Definition of Terms. — For purposes of this Act, the following terms shall mean:

. Agricultural Entrepreneurship refers to the process of identifying, starting and managing
a farm business or enterprise, sourcing and organizing the required resources and taking
both the risks and rewards associated with the venture;

b. Manpower education and training refers to - the instructional delivery system of
agricultural, technical and vocational education and training that combines hands-on and
in-school training based on a training plan designed and implemented by an accredited
manpower education and training institution for agricultural entrepreneurship and
accredited dual system agricultural, industrial and business establishments with prior
Notice and advice to the local government unit concerned;

¢. Trainee refers to a person qualified to undergo the manpower education and training for
agriculture entrepreneurship;

d. Farm Business Schools are post-secondary schools where students, who are graduates of
the Rural Farm Schools or any qualified secondary institution specializing in agriculture,
shall be trained on agricultural entrepreneurship;

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

f. Accredited dual training system agricultural industrial and business establishment refers
to a juridical entity duly recognized and authorized by the TESDA to participate in the dual
system for manpower education and training for agricultural entrepreneurship; and,

g. Establishments refer to enterprises or services, or both, of agricultural, industrial, or
business establishments.

Sec. 6. Institutionalization of the Manpower Education and Training for Agricultural
Entrepreneurship. — The manpower education and training for agriculture entrepreneurship,
hereafter the System, shall be institutionalized in the Philippines. It shall form as part of the post-
secondary education curriculum as provided in this Act,

Sec. 7. 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 agricultural entrepreneurship.

Sec. 8. Components of the Manpower Education and Training for Agricultural
Entrepreneurship. — The manpower education and training for agricultural entrepreneurship
shall have the following components:


There shall be a ladderized system of agriculture entrepreneurship education that begins
in the post-secondary level following the completion of the Rural Farm School curriculum
as provided in Republic Act No. 10618 (Rural Farm Schools Act of 2013), or upon
graduation in any qualified secondary institution, and culminates in applicable collegiate
Courses. The post-secondary program shall involve the conferment of a Diploma in
Agricultural 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;
There shall be created for each administrative region (excluding the National Capital
Region) an AMEES Development School or Farm Business School, and such other schools
as may be established by law;

There shall be an instructional delivery system of agricultural, technical and vocational
education and training in each Farm Business School that implements blended learning
consisting of hands on, in-school and online modules based on a training plan designed
and implemented by an accredited manpower education and training institution for
agricultural entrepreneurship 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, when possible, remote
training, and the latter, by providing an adequate level of specific, general and theoretical
instruction on agriculture and entrepreneurial management;

The AMEES shall include’ instruction on vital values on citizenship, governance,
entrepreneurship, work ethics, quality orientation, discipline, honesty, and self-reliance;
The partnership between the public, private and voluntary sectors shall be a crucial
component of the AMEES in both academic content and in on-the-job, hands-on, or
remote training; and,

‘The AMEES shall also be promoted among poor farming families and out-of-school youth
in the rural areas and in agrarian reform communities. The AMEES shall ensure that poor
and deserving youths receive the necessary grants and scholarships.

Sec. 9. Board of Trustees. - There shall be a Board of Trustees, herein referred to as the
Board, composed of the Secretary of the Department of Agriculture (DA) as ex-officio Chairman,
the Chairman of the Commission on Higher Education (CHED) as ex-officio Vice Chairman, and
the following members:

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The Chairman of the Technical Education and Skills Development Authority (TESDA);
The Director of the Bureau of Micro, Small and Medium Enterprise and Development
(BMSMED);

The Director of the DA-Agricultural Training Institute (ATI);

‘Two (2) Representatives from the private sector representing higher education, industry,
agriculture, and new and emerging agricultural technologies; and,

Representative from a non-governmental organization.

The representatives from the private sector and non-government organizations shall be appointed
by the Chairman, subject to the confirmation of the Board of Trustees.

The members of the Board shall serve for four years.


‘Sec. 10. Powers and Functions of the Board. — The Board shalll exercise the following powers
and functions:

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Formulate policies and guidelines for the administration and operation of the AMEES;
Formulate policies on the appointment, promotion, retention, removal, renewal, rewards
and incentives for administrators, faculty and staff;

Craft and approve the AMEES curricula;

‘Approve the criteria for the selection and admission of students;

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

‘Approve the graduation of successful candidates from the various AMEES campuses or
farm business schools;

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

‘Approve the AMEES budget and appropriate to the ends specified by law such sums as
may be provided by law for the support of the System;

Receive grants whether cash, land, buildings and improvements thereof; donations,
contributions, bequest, gifts, and to formulate policies for the administration thereof;
Develop policies for the expansion of enrollment in the campuses under the AMEES;

Set policies and criteria to rationalize the establishment of AMEES schools under the
System, for its evaluation and approval thereof;

Prepare strategic plans to enhance the capability of the AMEES in developing human
resources with focus on youth with special aptitudes and inclination to agriculture and
entrepreneurship;

Identify training centers /institutions that will provide manpower training and education;
and,

Perform such other functions as may be necessary to implement the provisions of this Act.

Sec. 11. Career Management Development Division. - The Career Management
Development Division (CMDD) of the Agricultural Training Institute (ATI) of the Department of
Agriculture (DA) 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, on-the-job; or remote
training components of the AMEES: Provided, That the agricultural and agro-industrial
establishment shall be required to furnish the AMEES with the necessary information for the
purpose of supervision.

The CMDD shall be headed by a Division Chief (DC). The DC shall be assisted by such other
Personnel as may be necessary for the effective discharge of the functions of the office,

Sec. 12. Duties and Functions of the Division Chief. - The DC shall perform the following
duties and functions:

1)
2)

3)
4)

5)

Coordinate curriculum planning activities for the AMEES;
Coordinate publication of farm business outputs of the teachers, administrators and
students from the AMEES;

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

Coordinate exchange programs with other educational institutions both local and foreign,
including youth development and empowerment organizations such as the 4-H Club;
Develop and coordinate linkages and networking among the campuses of the AMEES with
other institutions;


6) Coordinate the implementation of the program for the identification and selection of
scholars for the AMEES;

7) Provide for the secretariat services of the Board of Trustees; and,

8) Perform such other functions as may be deemed necessary: for the effective discharge of
the DC's duties.

Sec, 13. Status of Trainee. — Any student who is a bona fide graduate of a Rural Farm School
or any qualified secondary educational institution shall be eligible to enroll in a: farm business
‘school. For the duration of the post-secondary manpower 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.

Atrainee 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 CHED shall keep a roll of these successful trainees for purposes of
identifying them for employment.

Sec. 14. Obligations of the Accredited Educational Institutions or Training Centers. —
The educational institutions or training centers that have entered into a memorandum of
agreement with agricultural, industrial or business establishments to undertake training shall:

a. Ensure that the necessary skills and knowledge are imparted to the trainee during his in-
schoo! trainings in accordance with an approved training plan;

b. Design, implement and evaluate jointly the training plan with the accredited agricultural,

industrial and business establishments;

Provide the training instructors;

Provide specific, general and occupation-related theoretical instructions;

Appoint industrial coordinators to supervise the in-plant or farm trainin:

Pay the trainee his daily allowance;

Provide tools and equipment necessary for blended learning; and,

Perform such other tasks and activities as may be necessary in furtherance of the

objectives of the training,

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Sec. 15. Obligations of Accredited Agricultural Industrial and Business
Establishments. — The agricultural, industrial and business establishments shall have the
following duties and responsibilities:

a. Ensure that the necessary skills and knowledge are imparted to the trainee during his
hands-on trainings in accordance with an approved systematic training plan;

b. Appoint the training officer/s to implement the training plan;

©. Make available, free of charge, the, consumable materials and basic hand tools and
equipment necessary for the training;

d. Allow the trainee to attend training and to take examinations, whether in- school or online;

Require the trainee to keep his report book up to date and inspect such books;

Ensure that the trainee is encouraged to develop his personality and that he is protected

from physical or moral danger;

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Entrust to the trainee such jobs as are related to the purpose of his training and are
commensurate with his capabilities;

Pay to the accredited educational institution/training centre the daily allowance of the
trainee;

Allow the trainee the necessary time off for his in-school training; and,

Perform such other obligations in accordance with the provisions of this Act and other
prevailing laws of the Philippines.

Sec. 16. Obligations of the Trainee. - A trainee shall exert every effort to acquire the skills
and knowledge necessary for him to achieve the purpose of his training. Towards this end, the
trainee shall:

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f.

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h.

a. carefully perform the jobs entrusted to him as part of his training;
b.
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Take part in training programs for which he has been granted time off under this Act;
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;

Observe rules of behavior in the training premises;

Use tools, instruments, machines and other equipment with due care;

Not reveal any business or trade secrets that have come to his knowledge in the course
of his training;

Keep his record books up to date; and,

Perform such other obligations in the attainment of the objectives of this Act.

Sec, 17, Memorandum of Agreements. ~ Prior to the commencement of any manpower
training, a memorandum of agreement (MOA) shall be signed by all parties which shall .stipulate
the following, among others:

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a. the training plan;
b.
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the nature and objective of the training;

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

the normal daily training hours;

the trainee's allowance and the rate to be applied, which shall not be less than seventy-
five (75) per cent of the applicable minimum daily wage;

the rights and obligations of the parties concerned in addition to those provided in Sections
14, 15 and 16;

the definition of the status of the trainee according to Section 13 of this Act;

the conditions for the termination of the training agreement;

the performance, monitoring and evaluation system; and,

such other essential particulars as would mutually benefit all parties concemed.

Sec, 18, Loan Programs for the Purchase of Blended Learning Tools and Equipment. -
To achieve the objectives under Sec. 14 of this Act, concessional loan programs shall be developed
by appropriate Government Financial Institutions (GFis) for the purchase of blended learning tools
and equipment by Accredited Educational Institutions or Training Centers, such as computers,
laptops, tablets, and other ICT devices and equipment necessary to conduct and access related
trainings and learning materials.

Sec, 19. Incentives for the Trainees. —


‘a. 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.

b. Upon graduation, the students will be provided funding as start-up capital for their farm
business. Financial services and programs shall be made available to them as stipulated
in Republic Act No. 10000 or the "The Agri-Agra Reform Credit Act of 2009". Students
should be able to avail of loans without the need for collateral. A government guarantee
fund shall be set aside for this purpose in case of a default or failure to pay the debt:
Provided, That a proof is presented that the student suffers from financial hardships and
is no longer able to pay his loan.

c. The government shall also extend incentives to students for the production and
propagation of organic farm inputs by maximizing their use in all government and
government-supported agricultural production, research and demonstration programs, as
‘embodied in Republic Act No, 10068 or the "Organic Agriculture Act of 2010".

Sec. 20. 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 per cent (150%) 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 per cent (5%) of
their total direct labor expenses but in no case to exceed twenty-five million pesos
(P25,000,000.00) 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
Republic Act No. 8525 or the “Adopt-a-School Act of 1998".

The Department of Finance shall issue the necessary rules and regulations to implement the
provisions of this Section.

Sec, 21, 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.

Sec. 22. 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 that:

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

b) 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,


c) they are not available locally in sufficient quantity of comparable quality, and at 35
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 (DOF) shall accumulate the necessary rules and regulations to
implement the provisions of this section.

Sec, 23. Revolving Fund. ~ Any law, rule or regulation to the contrary notwithstanding, the
accredited dual training system educational institution/training center 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.

Sec. 24. Implementing Rules and Regulations. - The CHED, DA, TESDA and DOF, in
coordination with other industries 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.

Sec. 25. Separability Clause. — If any part or provision of this Act is declared unconstitutional
or invalid, other parts or provisions thereof which are not affected thereby shall continue to be in
full force and effect.

Sec. 26. Repealing Clause. ~ All laws, decrees, executive orders, rules and regulations or other
issuances or parts thereof, inconsistent with this Act, are hereby repealed, amended or modified
accordingly.

Sec. 27. Effectivity. - This Act shall take effect fifteen (15) days after its publication in the
Official Gazette or in two (2) newspapers of general circulation.

Approved,