HOUSE OF REPRESENTATIVES

Republic of the Philippines eh 2 i

HOUSE OF REPRESENTATIVES Dat
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Constitution Hills, Quezon City

SEVENTEENTH CONGRESS =|
First Regular Session |
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214i

HOUSE BILL NO.

Introduced by Honorable Mark O. Go

EXPLANATORY NOTE

This bill seeks to repeal Republic Act 7834 and integrate the Technology
Institutions of the Technical Education and Skills Development Authority (TESDA) of the
Cordillera Administrative Region (CAR); particularly the Baguio City School of Arts and
Trades, the Regional Training Center-Baguio, the Provincial Training Centers at Abra,
fugao, Kalinga, and Mountain Province, and the Apayao Training Center of the Local
Government Unit of Apayao into a state institute to be known as the Cordillera State
Institute of Technical Education (CSITE).

The establishment of CSITE is a strategic direction that will enhance the
capability of the public Technology Institutions in CAR to ensure the delivery of quality,
relevant and higher-level Technical Vocational Education and Training (TVET) programs
that develop technically competent, innovative and creative workforce.

The governance of CSITE over integrated institutions will effect greater synergy
and support system, higher operational efficiency and effectiveness in the planning and
delivery of higher level TVET programs with wider array of academic course offerings
that relate to the key employment generators in the region and the country.

This measure responds to the national direction provided in the National
Technical Education and Skills Development Plan (NTESDP) 2011-2016 which is to
develop technically competent, innovative and creative Filipino workforce for the 21%
century through technology-biased and higher technical education and skills
development.

This proposed measure takes cognizance of the objectives and intention of a
similar bill which was filed during the 16" Congress.

In view of the foregoing, immediate consideration and passage of this bill is
earnestly sought.



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

SEVENTEENTH CONGRESS
First Regular Session
214i
HOUSE BILL NO.

Introduced by Honorable Mark O. Go

AN ACT

REPEALING REPUBLIC ACT 7834 AND ESTABLISHING THE
CORDILLERA STATE INSTITUTE OF TECHNICAL EDUCATION
INTEGRATING THE TECHNOLOGY INSTITUTIONS OF THE
TECHNICAL EDUCATION AND SKILLS DEVELOPMENT
AUTHORITY IN THE CORDILLERA ADMINISTRATIVE REGION,
PROVIDING FOR ITS POWERS, STRUCTURE AND FUNDS
THEREFOR

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

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

SEC. 2. Statement of Goals and Objectives. — It is the goal and objective of
this Act to:

a. Establish a state institute of technical education in the Cordillera
Administrative Region with a stronger and single system of governance that
would bring about greater synergy among the integrated public technology
institutions 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;

¢. Deliver higher technical education and vocational training programs in line
with the skills priorities and key employment generators of the region, the


Philippine Standards Occupational Classification and international labor
requirements and standards;

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

e. Strengthen industry collaboration in the development of curriculum and
delivery of internship programs to equip graduates with competencies that are
responsive to the needs of the job market.

SEC. 3, Mandate. - The Institute shall primarily provide accessible, relevant and
high quality Technical-Vocational Education and Training at the technical diploma
and national certificate levels that would develop technically competent, innovative
and creative technicians and skilled workforce in the Cordillera Region. It shall also
undertake creative and innovative programs in research and extension services,
provide progressive leadership in its areas of specialization, and deliver programs
and services following policies set forth by its Governing Board and TESDA.

SEC. 4. Institutional Academic Freedom and Autonomy. — The Institute shall
enjoy academic freedom and institutional autonomy pursuant to paragraph 2,
Section 5 of Article XIV of the Constitution of the Republic of the Philippines.

SEC. 5. Curricular Offerings. - The Institute shall offer post-secondary technical
education courses on vocational training programs as the Board of Trustees may
deem necessary to carry out its objectives, particularly to meet the needs of the
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. Governance. - 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 Committee Secretary of the Committee on Labor, Employment and
Human Resources Development of the Senate, Member,

(d) The Committee Secretary of the Committee on Higher and Technical
Education of the House of Representatives, Member;

(e) The Regional Director of the Technical Education and Skills Development
Authority (TESDA)


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

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

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

(i) The Chairman of the CAR Regional Development Council

()) The Chairman of the Cordillera Regional Chamber of Commerce; Member

(k) A representative from the labor/workers sector, Member, and

(I) A representative from the employer/industry sector

The Board shall appoint the representatives for the labor/workers and
employer sectors from among the lists of at least five (5) 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 appointment

The Chairman of the Cordillera Regional Chamber of Commerce shall serve
in the Board only for the duration of his/her term of office, as set forth in their
respective constitutions 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 adopt and implement measures that would provide greater access to poor
but deserving students;

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

(d) 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;

(e) 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;


(f) To receive in trust legacies, gifts 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;

(g) 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
and authorities and concerned government authorities;

Such fees and charges, including government subsidies and other income
generated by the Institute, shall constitute its revolving fund and shall be deposited in
any authorized 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;

(h) 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;

(i) To appoint, upon recommendation of the Executive Director of the Institute,
other officials and employees of the Institute;

(j) 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;

(k) 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;

(I) 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;

(m) 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; and

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

SEC. 9. Meetings of the Board. - The Board shall meet at least twice a year.
Whenever necessary, the Chairperson of the Board may call, upon three (3) days’
prior written notice, special meetings.

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 TESDA 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.

The members of the Board shall not receive any salary but shall be entitled to
honorarium and 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 IV. He or she shall be appointed by the Board
in accordance with the guidelines, qualifications and standards set by the Board and
Civil Service rules and regulations, upon recommendation of a duly constituted
search committee,

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.

SEC. 11. Deputy Executive Directors. - The Executive Director of the Institute
shall be assisted by the Deputy Executive Directors for General Administration and
Services, and Academic Affairs and Development. 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 merger of the Baguio City School of Arts and Trades and the TESDA
Regional Training Center-Baguio shall form the Main Campus of the Institute. It shall
have its extension campuses at the provinces of Abra, Apayao, Ifugao, Mountain
Province, and Kalinga.

The TESDA Provincial Training Centers in Abra, Ifugao, Kalinga, and
Mountain Province shall be converted as the provincial campuses, respectively. With
the concurrence of the Provincial Government of Apayao, LGU-run Provincial
Manpower Training Center shall be absorbed by the Institute and become the
provincial Campus for Apayao.

The Main 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 II. Each extension 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 |. 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. 13. 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. 14. The Treasurer of the College. — The Treasurer of the Philippines shall
be the ex officio Treasurer of the Institute.

SEC. 15. The Faculty. ~ The faculty shall refer to the personnel performing
teaching functions following the staffing pattern from instructor to professor positions.

The Department of Budget and Management shall set a system for position
reclassification and upgrading of personnel, that is appropriate to the nomenclature
of technical education institution. Appropriate orders and circulars shall apply to
promotions or upgrading of positions for the faculty and other teaching positions.

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 member of
the faculty shall teach for or against any particular church or religious sect.


SEC. 16. Scholarship Program and Admission. - The Institute shall provide an
institution-based scholarship program and other affirmative action programs. It shall
coordinate with TESDA, the Local Government Units in the Cordillera Region,
Offices of the Congressional District Representatives, National Agencies, and
sponsoring private organizations and industries for scholarships to assist poor but
deserving students who qualify for admission to the Institute.

SEC. 17. 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 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 affected personnel shall, in a holdover capacity, continue to perform their
respective duties and responsibilities and receive their corresponding salaries and
benefits until such time when the organizational structure and staffing pattern of the
Institute shall have been approved by the Board. Provided, that the preparation and
approval of the said new organizational structure and staffing pattern shall, as far as
practicable, respect the positions, rights and security of tenure of the affected
personnel

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. 18. 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. 19. Appropriations. - The amount necessary to carry out the provisions of
this Act shall be included in the General Appropriations Act. The initial amount of
One Hundred Fifty Million (P 150,000,000.00) shall be appropriated to cover the
requirement for Personnel Services, Maintaining Operating and Other Expense and


Capital Outlay during its first year of operation. The appropriation for Capital Outlay
shall be continuing to facilitate the need for classrooms, laboratories and equipment

SEC. 20. 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 to impose
necessary sanctions,

SEC. 21, 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. 22. Transitory Provisions. —

a) Within two (2) months after the approval of this Act, the members of the Board
and the Executive Director shall have been appointed;

b) Within two (2) months after the appointment of Board Members, the Board
shall issue the rules and regulations for the implementation of this Act, which shall be
submitted to both Houses of Congress and the Senate, respectively;

©) Within two (2) months after the approval of the Implementing Rules and
Regulations of this Act, the Board shall convene to organize the structure and
staffing pattern of the Institute.

SEC. 23. 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. 24. Repealing Clause. — Republic Act No, 7834 and 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. 25. Effectivity. - This Act shall take effect fifteen (15) days after its
publication in two (2) newspapers of general circulation

Approved,