Republic of the Philippines
HOUSE OF REPRESENTATIVES
Constitution Hills, Quezon City

SIXTEENTH CONGRESS
Third Regular Session

6213

HOUSE BILL NO.

Introduced by Representative Nicasio M. Aliping, Jr.

EXPLANATORY NOTE

This bill seeks to integrate the Baguio City School of Arts and Trades and the TESDA
‘Technology Institutions (TTIs) in the Cordillera Administrative Region into a single public
institute of technical education to be known as the Cordillera State Institute of Technical
Education (CSITE)..

With the establishment of CSITE, synergy among the institutions will be achieved,
efficiency in operations will be enhanced, the range of academic course offerings will be
broadened, a single administrative support system will be provided, and institutional
performance will be heightened.

‘The establishment of CSITE, with the institution possessing a stronger system of
governance, will address the need for higher quality TVET programs that will sharpen
relevance and competitiveness for the development of technically competent, innovative and
ino workforce in the Cordillera Region.

creative

In line with the Philippine Qualifications Framework, the ASEAN Mutual Reform
Agreements, and Section 1, Article XIV of the Constitution which provides 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.”, the immediate passage of
this Bill is eamestly requested.



Republic of the Philippines
HOUSE OF REPRESENTATIVES
Constitution Hills, Quezon City

SIXTEENTH CONGRESS
Third Regular Session

6213

HOUSE BILL NO.

Introduced by Representative Nicasio M. Al

ig, Jr.

AN ACT
ESTABLISHING THE CORDILLERA STATE INSTITUTE OF TECHNICAL
EDUCATION, INTEGRATING FOR THE PURPOSE THE BAGUIO CITY
SCHOOL OF ARTS AND TRADES AND THE TECHNOLOGY INSTITUTIONS OF
THE TECHNICAL SKILLS AND DEVELOPMENT AUTHORITY IN THE
CORDILLERA ADMINISTRATIVE RE IN, AND APPROPRIATING FUNDS
THEREFOR

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

SECTION 1. Establishment. ~ The Cordillera State Institute of Technical Education,
hereinafter referred to as the Institute, is hereby established by integrating the Baguio City
School of Arts and Trades, the Technology Institutions of the Technical Education and Skills
Development Authority in the Cordillera Administrative Region consisting of the TESDA
Regional Training Center in Baguio City, the TESDA Provincial Training Centers in Abra,
Ifugao, Kalinga and Mountain Province, and the LGU Provincial Training Center in Apayao.

SEC. 2. Declaration of Objectives and Core Values. ~ The principal objectives of this

a. Establish a public institute of technical education in the Cordillera Region having a
stronger single system of governance that would bring about greater synergy among
the integrated public Technology Institutions in the region with improved operational
efficiency and enhanced organizational competitiveness.

b. Increase absorptive capacity and institutional capability to address the growing and
changing demand for accessible, quality and relevant technical-vocational education
and training in the region.

c. Deliver higher and more developed technical education and skills development
programs in line with the advocacy of the Philippine Qualifications Framework

es


(PQE), the National Technical Education and Skills Development Plan, the ASEAN
Mutual Reform Agreements, and international standards.

d. Promote and enhance partnership with local and international institutions and
industries to encourage mutual agreements for benchmarking and program exchange
and development.

SEC. 3. General Mandate. ~ The Institute shall primarily provide accessible, relevant and
quality career technical education at the technician and semi-professional levels that would
develop technically competent, innovative and creative Filipino workforce in the Cordillera
Region. It shall also embark on creative and innovative undertakings in research and
extension services and programs, provide progressive leadership in its areas of specialization
and the skills priorities of the region, and implement its programs and services following
policies set forth by TESDA.

SEC. 4. Institutional Autonomy. ~ The Institute shall enjoy institutional autonomy
throughout its corporate existence.

SEC. 5. Curricular Offerings. ~ The Institute shall offer programs and courses below
degree level in the industrial, service and agricultural fields corresponding to levels 1 to 5 of
the Philippine Qualifications Framework as the Board of Trustees may deem necessary to
carry out its objectives, particularly to meet the needs of the Cordillera Region for technicians
and semi-professional workers for the various economic sectors.

SEC. 6. Administration. — The Institute shall have the general powers of a corporation set
forth in Batas Pambansa Blg. 68, otherwise known as the “Corporation Code of the
Philippines”. The administration of the Institute and the exercise of its corporate powers shall
be vested exclusively in the Board of Trustees and the Executive Director of the Institute.

SEC. 7. The Governing Board. — The governing Board of the Institute shall be the Board
of Trustees, hereinafter referred to as the Board, which shall be composed of the following:

(a) The Director-General of the Technical Education and Skills Development
Authority (TESDA), Chairperson;

(b) The Executive Director of the Institute, Vice Chairperson;

(c) The Chairperson of the Committee on Labor, Employment and Human Resources
Development of the Senate, Member;

(4) The Chairperson of the Committee on Higher and Technical Education of the
House of Representatives, Member:

(©) The Regional Director of the National Economic and Development Authority
(NEDA), Member;

(® The Regional Director of the Department of Science and Technology (DOST),
Member;

(g) The Administrator of the Philippine Export Zone Authority (PEZA) in Baguio
City, Member:


(h) The Chairman of the Cordillera regional Chamber of Commerce, Member;
(i) Two representatives from duly recognized industry organizations, Members; and
() A representative from the labor/workers sector, Member.

The Board shall appoint the two representatives from the duly recognized industry
organizations from among a list of at least five (5) qualified persons, and the representative
from the labor/workers sector from among a list of at least three (3) qualified persons, as
recommended by the search committee constituted by the Executive Director of the Institute,
in consultation with the Chairperson and the other Members of the Board, based on the
normal standards and qualifications for the position. They shall serve for a term of two (2)
years from the date of their respective appointments.

The Chairman of the Cordillera regional Chamber of Commerce shall serve in the Board
only for the duration of his or her term of office, as set forth in the chamber’s constitution and
by-laws.

SEC. 8. Powers and Duties of the Board of Trustees. ~ The Board shall have the
following specific powers and duties, in addition to its general powers of administration and
the exercise of all the powers granted to the board of directors of a corporation under existing
laws:

(a) To promulgate and implement policies in accordance with the declared State policies
and the pertinent provisions of the Philippine Constitution on education, agriculture, science
and technology, as well as the policies, standards and thrusts of the TESDA under Republic
Act No. 7796, otherwise known as the “Technical Education and Skills Development Act of
1994";

(b) To promulgate rules and regulations not contrary to law as may be necessary to carry
out the purposes and functions of the Institute:

(c) To receive and appropriate all sums as may be provided for the support of the
Institute, in the manner it may determine in its discretion, in order to carry out the purposes
and functions of the Institute:

(d) To receive in trust legacies, gifis and donations of real and personal properties of all
kinds and to administer and dispose of the same when necessary for the benefit of the
Institute, and subject to the limitations, directions and instructions of the donor, if any;

(©) To fix the tuition/training fees and other necessary school charges such as, but not
limited to, matriculation fees. graduation fees and laboratory fees, as the Board may deem
proper to impose, after due consultations with the involved sectors.

Such fees and charges, including government subsidies and other income generated by
the Institute, shall constitute special trust funds and shall be deposited in any authorized

4


government depository bank, and all interests that shall accrue therefrom shall form part of
the same funds for the use of the Institute.

Any provision of existing laws, rules and regulations to the contrary notwithstanding, any
income generated by the Institute from tuition/training fees and other charges, as well as from
the operation of auxiliary services and land grants, shall be retained by the Institute and may
be disbursed by the Board for instruction, research, extension or other programs or projects of
the Institute: Provided, That all fiduciary fees shall be disbursed for the specific purposes for
which these are collected.

If, for reasons beyond its control, the Institute shall not be able to pursue any project for
which funds have been appropriated and allocated under its approved programs of
expenditures, the Board may authorize the use of said funds for any reasonable purpose
which, in its discretion, may be necessary and urgent for the attainment of the objectives and
goals of the Institute;

(f) To adopt and implement a socialized scheme of tuition and other school fees for
greater access to poor but deserving students;

(g) To authorize the construction or repair of its buildings, machinery, equipment and
other facilities, and the purchase and acquisition of real and personal properties, including
necessary supplies, materials and equipment;

(h) To appoint, upon recommendation of the Executive Director of the Institute, deputy
executive directors, campus directors, heads of departments, faculty members, trainers, and
other officials and employees of the Institute;

(i) To fix and adjust salaries of faculty members, trainers, and administrative officials
and employees, subject to the provisions of the Revised Compensation and Position
Classification System and other pertinent budget and compensation laws governing hours of
service, and such other duties and conditions as it may deem proper; to grant them, at its
discretion, leaves of absence under such regulations as it may promulgate, any provision of
existing laws to the contrary notwithstanding; and to remove them for cause in accordance
with the requirements of due process of law;

()) To approve the curricula, instructional programs and rules of discipline drawn by the
Management Committee as herein provided;

(k) To set policies on admission and graduation of students;

()) To authorize the awarding of certificates of completion of non-degree, non-traditional,
and semi-professional courses;


(m) To establish research and extension centers where such will promote the development
of the Institute and provide greater access to educational and training opportunities to
qualified and deserving students;

(n) To delegate any of its powers and duties to the Executive Director and other officials
of the Institute as it may deem appropriate, so as to expedite the administration of the affairs
of the Institute;

(0) To collaborate with other governing boards of both private and state universities and
colleges within the Cordillera Administrative Region, under the supervision of TESDA and
CHED and in consultation with the DBM, for continuing education programs, ladderized
interface, and other initiatives;

(p) To enter into joint ventures with business and industry for the profitable development
or management of the economic assets of the Institute, such as the establishment of income
generating projects, the proceeds from which shall be used for the development and
strengthening of the Institute;

(q) To develop consortia and other forms of economic linkages with the City Government
of Baguio and the local government units (LGUs) in the Cordillera Region, institutions and
agencies, both public and private, local and foreign, in furtherance of the purposes and
objectives of the Institute;

(®) To develop academic and training arrangements for institutional capability building
with appropriate institutions and agencies, both public and private, local and foreign, and to
appoint experts or specialists as consultants, part-time or visiting faculty members, trainers or
researchers, as the case may be:

(8) To set up the adoption of modern and innovative modes of transmitting knowledge
and skills such as the use of information technology, the dual learning system, open learning
or distance education and community laboratory for the promotion of greater access to
technical-vocational education and training; and

(© To establish policy guidelines and procedures for participative decision-making and
transparency within the Institute.

SEC. 9. Meetings of the Board. ~The Board shall regularly convene once every three (3)
months. Whenever necessary, the Chairperson of the Board may call, upon three (3) days’
prior written notice, a maximum of two (2) special meetings within the same period.

‘A quorum of the Board shall consist of majority of all its members holding office at the
time of the meeting: Provided, That the Chairperson of the Board or the Executive Director
of the Institute is among those present in the meeting.


In the absence of the Chairperson of the Board, the Director General of TESDA shall
designate a Deputy Director General of TESDA as representative with all the rights and
responsibilities of a regular member: Provided, however, That during this meeting, the
Executive Director of the Institute as Vice Chairperson shall be the Presiding Officer:
Provided, further, That this proviso notwithstanding, the Director General of TESDA is
hereby authorized to designate a Deputy Director General of TESDA as the regular Chair of
the Board, in which case said Deputy Director General of TESDA shall act as the Presiding
Officer.

In case the Chairpersons of the Congressional Committees shall not be able to attend the
Board meeting, they may duly designate their respective representatives to attend the said
meeting, who shall have the same rights and responsibilities as regular members of the Board.

The members of the Board shall not receive any salary but shall be entitled to
reimbursements for actual and necessary expenses incurred, either in their attendance to
meetings of the Board or in connection with other official business authorized by resolution
of the Board, subject to existing laws and regulations.

SEC. 10. The Executive Director. ~ The Institute shall be headed by an Executive
Director who shall render fulltime service as a career official with the rank and emoluments
as that of a Director III. He or she shall be appointed by the Board, upon recommendation of
a duly constituted search committee, in accordance with the guidelines, qualifications and
standards set by the Board and Civil Service rules and regulations.

In order to effect the smooth operation of the Institute following the integration of the
Technology Institutions of TESDA in the Cordillera Administrative Region, the incumbent
Vocational School Administrator of the Baguio City School of Arts and Trades shall serve as
the first Executive Director of the Institute.

In case of vacancy in the Office of the Executive Director by reason of death, retirement,
resignation, removal for cause or incapacity of the Executive Director to perform the
functions of the office, the Board shall designate an Officer-in-Charge of the Institute
pending the appointment of a new Executive Director.

‘The Board shall constitute the Search Committee for the appointment of an Executive
Director within six (6) months after the date of vacancy, if occurring for reasons other than
retirement, or within six (6) months before the compulsory or optional retirement of the
incumbent Executive Director.

The powers and duties of the Executive Director of the Institute, in addition to those
specifically provided in this Act, shall be those delegated by the Board and those that pertain
‘to the Office of the Executive Director of similar institutes existing or hereinafter established.


The salary of the Executive Director of the Institute shall be equivalent to that of a
Director [Il in accordance with the Revised Compensation and Position Classification
System.

SEC. 11. Deputy Executive Directors. — The Executive Director of the Institute shall be
assisted by a Deputy Executive Director for General Administration and Services, a Deputy
Executive Director for Academic Affairs, and a Deputy Executive Director for Linkages and
Partnership. They shall render fulltime service as career officials with the rank and
emoluments as that of a Director Il. They shall be appointed by the Board upon
recommendation of the Search Committee and the Executive Director in accordance with the
guidelines, qualifications and standards set by the Board and Civil Service rules and
regulations.

SEC. 12. Campus Sites and Directors. ~ The campuses of the Institute shall consist of the
Baguio City School of Arts and Trades which shall be the main campus and central academy,
the TESDA regional training center in Baguio City, the TESDA provincial training centers in
Abra, Apayao, Ifugao, Kalinga, and Mountain Province, and the LGU provincial training
center in Apayao. Each campus shall be headed by a Campus Director who shall render
fulltime service as a career official with the rank and emoluments as that of a Director I,
except for the Baguio City Main Campus Director who shall have the rank and emoluments
as that of a Director II.

They shall be appointed by the Board upon recommendation of the Search Committee
and the Executive Director in accordance with the guidelines, qualifications and standards set
by the Board and Civil Service rules and regulations. Incumbent training center
administrators who hold the rank of Supervising TESD Specialist shall serve as Campus
Directors in their respective areas.

SEC. 13. The Management Committee. - There shall be a Management Committee
consisting of the Executive Director as Chairperson, the Deputy Executive Directors, the
Campus Directors, the President of the association of employees, the President of the student
council, and the President of the alumni association, whose duty is to review and recommend
to the Board the policies governing the administration, management and development
planning of the Institute.

‘The Management Committee shall prepare strategic and operational plans, budget
requests, monitoring and evaluation reports, and annual reports, subject to the review and
approval of the Board. It shall have the power to review and recommend the curricular
offerings and rules of discipline of the Institute. It shall fix the requirements for admission of
students, as well as for their graduation and conferment of diplomas and certificates, subject
to review and approval by the Board, through the Executive Director. It shall have the
disciplinary power over students of the Institute and shall formulate academic and
instructional policies and rules and regulations on discipline, subject to the approval of the
Board.


SEC. 14. The Secretary of the Institute. ~The Board shall appoint a Secretary who shall
serve as such for both the Board and the Institute and who shall keep all records and
proceedings of the Board. The Secretary shall serve the appropriate notice of Board meetings
upon each member of the Board.

SEC. 15. The Treasurer of the College. ~ The Treasurer of the Philippines shall be the ex
officio Treasurer of the Institute.

SEC. 16. Faculty Members and Trainers. — No political belief, gender preference,
cultural or community affiliation or ethnic origin, and religious opinion or affiliation shall be
a matter of inquiry in the appointment of trainers and faculty members of the Institute:
Provided, That said appointment shall be subject to the guidelines, qualifications and
standards set by the Board and the Civil Service Commission: Provided, further, That no
trainer or member of the faculty shall teach for or against any particular church or religious
sect.

National Budget Circular 461 shall apply to promotions or upgrading of positions of the
faculty and other teaching or trainer positions.

SEC. 17. Scholarship Program and Admission. — The Institute shall provide an
institution-based scholarship program and other affirmative action programs, and coordinate
with TESDA, the Local Government Units in the Cordillera Region, National Agencies, and
sponsoring private organizations and industries for scholarships to assist poor but deserving
‘students who qualify for admission to the Institute.

No student shall be denied admission to the Institute by reason of sex, religion, cultural or
community affiliation or ethnic origin

SEC. 18. Authority to Loan or Transfer Apparatus, Equipment or Supplies and Detail of
Personnel. — The heads of the bureaus and offices of the national government are hereby
authorized to loan or transfer, upon request of the Executive Director of the Institute, such
apparatus, equipment or supplies as may be needed by the Institute, and to detail employees
for duty therein when, in the judgment of the head of the bureau or office, such apparatus,
equipment, supplies or services of such employees can be spared without serious detriment to
public service.

The employees so detailed shall perform such duties as required of them by the Executive
Director of the Institute, and the time so employed shall be counted as part of their regular
services.

SEC. 19. Assets, Liabilities and Personnel. — The campuses and all assets, real or
personal, personnel and records, as well as liabilities and obligations of the Baguio City
School of Arts and Trades, the TESDA Regional Training Center in Baguio City, the TESDA

9


Provincial Training Centers in Abra, Ifugao, Kalinga and Mountain Province, and the LGU
Provincial Training Center in Apayao are hereby transferred to the Cordillera State Institute
of Technical Education.

The positions, rights and security of tenure of the faculty members, trainers, specialists
and other personnel therein employed under existing laws prior to the integration and
establishment as a state institute shall be respected.

‘The parcels of land presently occupied by the operating units integrated under this Act are
hereby declared to be property of the Cordillera State Institute of Technical Education, and
shall be titled under that name: Provided, That should the Institute cease to exist or be
abolished, or should said parcels of land be no longer needed by the Institute, the same shall
revert to the national government or LGU concerned.

SEC. 20. Tax Exemption on Importation and Donations. ~ The importation of economic,
vocational, trades and crafts, and technical and technology books or publications, which are
for economic, vocational, trades and crafts, and technical or technology purposes made by the
Institute, upon certification by TESDA, shall be exempt from customs duties in accordance
with the provisions of the Tariff and Customs Code of the Philippines, as amended.

All donations in any form to the Cordillera State Institute of Technical Education shall be
exempt from the donor’s tax and the same shall be considered as allowable deduction from
the gross income in the computation of the income tax of the donor, in accordance with the
provisions of the National Internal Revenue Code of 1997, as amended.

SEC. 21. Appropriations. - The amount necessary to carry out the provisions of this Act
shall be charged against existing appropriations for the Baguio City School of Arts and
Trades, the TESDA Regional Training Center in Baguio City, and the TESDA Provincial
Training Centers in Abra, Ifugao, Kalinga, and Mountain Province. ‘Thereafter, the amount
necessary for the continued implementation of this Act shall be included in the annual
General Appropriations Act.

SEC. 22. Development Plan, Management Audit, and Organizational, Administrative and
Instructional Structure. ~ Within the period of one hundred twenty (120) days after the
approval of this Act, the Institute shall accomplish the following:

(a) Submit a five (5) — year development plan, including its corresponding program
budget to TESDA, for corresponding recommendation to the DBM;

(b) Undergo a management audit in cooperation with TESDA; and

(c) Set up its organizational, administrative as well as instructional structure,
including the appointment of the key officials of the Institute.


SEC. 23. Filing of Report. — On or before the fifteenth (15) day of the second (2™)
month after the opening of the regular classes each year, the Board shall file with the Office
of the President of the Philippines, through the Director General of TESDA, and with both
Houses of Congress, a detailed report on the progress, conditions and needs of the Institute.

SEC. 24. Parity Clause. — All other powers, functions and privileges, responsibilities and
limitations to state institutes established by law, or their officials, shall be deemed granted to
or imposed upon the Institute or its officials, whenever appropriate.

SEC. 25. TESDA Monitoring and Evaluation. — TESDA shall conduct regular monitoring
and evaluation to determine continuing compliance with the requirements of the Unified
TESDA Program Registration and Accreditation System, Competency Assessment and
Certification program and other relevant policies and impose sanctions as may be necessary.

SEC. 26. Implementing Rules and Regulations. — The governing Board of the Institute, in
consultation with TESDA, shall formulate the guidelines to fully implement the provisions of
this Act.

SEC. 27. Separability Clause. ~ If, for any reason, any part or provision of this Act is
declared invalid or unconstitutional, the remaining parts or provisions not affected thereby
shall remain in full force and effect.

SEC. 28. Repealing Clause. — Republic Act No. 7834 is hereby expressly repealed. All
other laws, presidential decrees, executive orders, rules and regulations contrary to or
inconsistent with the provisions of this Act are hereby repealed or modified accordingly.

SEC. 29. Effectivity. — This Act shall take effect fifteen (15) days after its publication in

two (2) newspapers of general circulation.

Approved,