Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

EIGHTEENTH CONGRESS
Second Regular Session

HOUSE BILL No. 7628

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

AN ACT
TO DEVELOP AND STRENGTHEN THE AGRICULTURAL EDUCATION AND
TRAINING IN THE COUNTRY THROUGH THE INSTITUTIONALIZATION OF
MANPOWER DEVELOPMENT FOR AGRICULTURAL ENTREPREURSHIP IN THE
POST-SECONDARY LEVEL

In the decade starting from 2008, the agricultural sector has employed an average 11.4
million1 Filipinos, accounting for a little less than one-third of total employment. Yet, in
the same period, the sector contributed to the country's Gross Domestic Product (GDP)
only 11.2 percent on average, with gross-value added (GVA) averaging 1.38 percent.

This proposed measure aims to support current agricultural entrepreneurship training
initiatives. Men and women will be trained as agriculture entrepreneurs (agri-preneurs),
equipped not just with hands-on agriculture experience but also business savvy. This can
be accomplished through a ladderized system of agricultural education and training in the
post-secondary level, which can be an extension of the Rural Farm Schools curriculum,
a training-program initiative enshrined in the Rural Farm Schools Act of 2013 (RA 10618).

The intention of this bill is to infuse the agriculture sector with the much needed
entrepreneurial spirit in order to make Philippine agriculture more productive to able-
bodied Filipinos.

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

Lypahr

LUIS RAYMUND/“LRAY/’ F. VILLAFUETE, JR.

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DATES. SEP 09 EP 08 md



Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

EIGHTEENTH CONGRESS
Second Regular Session

HOUSE BILL NO. _7628

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

AN ACT
TO DEVELOP AND STRENGTHEN THE AGRICULTURAL EDUCATION AND
TRAINING IN THE COUNTRY THROUGH THE INSTITUTIONALIZATION OF
MANPOWER DEVELOPMENT FOR AGRICULTURAL ENTREPREURSHIP IN THE
POST-SECONDARY LEVEL

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

Section1. 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 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.

Sec.

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 education system;

. 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 the analytical and creative thinking and problem-solving
abilities; manipulative competencies suitable for occupational standards and
requirements; values and attitudes with the emphasis on work ethics, quality
orientation, discipline, honesty, self-reliance and patriotism; and,

. Strengthen training cooperation between agricultural, industrial and business

establishments and education institutions by designing and implementing relevant
training programs in close coordination with local government units.

5. Definition of Terms. — For purpose 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;

. 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
establishment 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;

|. 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 education 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 refers to enterprise 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 and training for agricultural
entrepreneurship shall have the following components:

1. There shall be a laddered system of agriculture and 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;

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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;

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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 hand 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 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;

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The AMEES shall include instruction on vital values on citizenship, governance,
entrepreneurship, work ethics, quality orientation, discipline, honesty, and self-
reliance;

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. 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,

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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:

. 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,

. Representatives from a non-governmental organization.

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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 member of the Board shall serve for four years.

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

a. 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 scholarship, stipend and such allowances for students;

Approves 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;

Approves 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, building and improvements thereof; donations,
contributions, bequest, gifts, and to formulate policies for the administration thereof;

j. Develop policies for the expansion of enrolment 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 plan to enhance the capability of the AMEES in developing
human resources with focus on youth with special aptitudes and inclination to
agriculture and entrepreneurship;

m.|dentify training centers/institutions that will provide manpower training and
education; and,

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

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


3.) Provide legal and technical support to the members of the System;

4.) Coordinate exchange programs with other educational institutions both local and
foreign, including youth development and empowerment organization such as the
4-H Club;

5.) Develop and coordinate linkages and networking among the campuses of the
AMEES with other institutions;

6.) Coordinates 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 DCs 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

A trainee 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-school trainings in accordance with an approved training plan;

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;

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 the is
protected from physical or moral danger;

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

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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,

j. 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:

a. Carefully perform the jobs entrusted to him as part of his training;

b. Take part in training programs for which he has been granted time off under this
Act;

c. 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;

d. Observe rules of behavior in the training premises;

e. Use tools, Instruments, machines and other equipment with due care;

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

g. Keep his record books up to date; and,

h. 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:

a.) the training plan;

b,) the nature and objective of the training;

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

d.) the normal daily training hours;

e.) 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;

f.) the rights and obligations of the parties concemed in addition to those provided In
Sections 14,15 and 16;

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

h,) the conditions for the termination of the training agreement;

i.) the performance, monitoring and evaluation system; and,

j.) such other essential particulars as would mutually benefit all parties concerned.

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 (GRs) 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. —

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.

-

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.

9

The government shalll 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,

) they are not available locally in sufficient quantity of comparable quality, and at
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,