13th CONGRESS OF THE REPUBLIC 
OF THE PHILIPPINES 
) 
1 
JUL -6 411 :I5 
First Regrlar Session 
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S E N A T E  
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S. BILL NO. 
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lnfrodoced by Senator Ralph G. Recfo 
EXPLANATORY NOTE 
This bill seeks to expand the purposes and application of the Special 
Education Fund (SEF) by amending for the purpose Section 272 of Republic Act 
No. 71 60, otherwise known as "The Local Government Code." 
Local government units (LGUs) have the power to create its own sources 
of revenue and to levy taxes, fees, and charges subject to the provisions of the 
Local Government Code and consistent with the basic policy of local autonomy. 
Local School Boards have been established to determine the annual 
supplementary budgetary needs for the operation and maintenance of public 
schools within the province, city, or municipality, as the case may be, and the 
supplementary local cost of meeting such needs. This has been reflected in the 
form of an annual school board budget corresponding to its share of the 
proceeds of the special levy on real property constituting the Special Education 
Fund. 
Section 272 of the Local Government Code gives priority budget 
allocation only to the operation and maintenance of public schools, 
construction and repair of school buildings, facilities and equipment, 
educational research, purchase of books and periodicals, and sports 
development as determined and approved by the Local School Board. 
However, there is a continuing clamor to expand the application of the 
SEF as more and more LGUs post fund surplus that they believe can be used to 
cover needs of the school districts, other than fhat specified by law. 
This bill addresses such concerns as it proposes to include among the 
priority areas for SEF coverage the budget of the payment of electric and water 
bills, payment of salaries, allowances, and other benefits of non-teaching 
personnel, procurement of service vehicles for conveyance of teachers and 
non-teaching personnel, establishment and maintenance of extension classes, 
including the creation of teacher items for said classes, purchase of prescribed 
textbooks, teaching aids, and other instructional materials. 
In view of the foregoing. immediate approval f l  
of t 
earnestly urged. 


, 
13th CONGRESS OF THE REPUBLIC 
I 
OF THE PHILIPPINES 
1 
First Regular Session 
1 
s. BILL NO. 
Introduced by Senator Ralph G. Recto 
AN ACT 
EXPANDING THE PURPOSES AND APPLICATION OF THE SPECIAL EDUCATION 
FUND (SEF), 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 the House of Representatives of the 
Philippines in Congress assembled: 
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SECTION I. 
Section 272 of Republic Act No. 7160 is hereby 
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amended to read as follows: 
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“Sec. 272. - The proceeds from the additional one percent 
(1 %) tax on real property accruing to the 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, INCLUDING THE PAYMENT OF 
ELECTRIC AND WATER BILLS; construction and repair of school 
buildings, facilities and equipment, PAYMENT OF 
SALARIES, 
ALLOWANCES, AND OTHER BENEFITS OF TEACHING AND NON- 
TEACHING PERSONNEL, PROCUREMENT OF SERVICE VEHICLES FOR 
USE IN THE TRANSPORT OF 
TEACHERS AND NON-TEACHING 
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PERSONNEL, ESTABLISHMENT AND MAINTENANCE OF EXTENSION 
CLASSES, INCLUDING THE CREATION OF TEACHER ITEMS FOR SAID 
CLASSES, educational research, purchase of [books,] PRESCRIBED 
TEXTBOOKS, periodicals, TEACHING AIDS, OTHER INSTRUCTIONAL 
MATERIALS, and sports development as determined and approved 
by the Local School Board." 
SEC. 2. All laws and decrees, rules and regulations or parts thereof 
inconsistent with this Act are hereby repealed or modified accordingly. 
SEC. 3. This Act shall take effect within fifteen (15) days after its 
publication in two (2) newspapers of general circulation. 
Approved, 
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