Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

18TH CONGRESS
First Regular Session

HOUSE BILL NO, _1596

Introduced by Representatives Michael L. Romero and
Enrico A. Pineda

EXPLANATORY NOTE

It is hereby imperative that the State shall provide relevant, accessible, high
quality and efficient technical education and skills development in support of the
development of high quality Filipino middle-level manpower responsive to and in
accordance with Philippine development goals and priorities

This House Bill seeks to encourage active participation of various concerned
sectors, particularly private enterprises, being direct participants in and
immediate beneficiaries of a trained and skilled work force, in providing technical
education and skills development opportunities.

‘Thus, the early passage6f this bill is earnestly requested

a

MICHAEL L. ROMERO Ph.D. ENRICO A. PINEDA



Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

18TH CONGRESS
First Regular Session

HOUSE BILL NO. 1596

Introduced by Representatives Michael L. Romero and
Enrico A. Pineda

AN ACT
PROVIDING FOR ADDITIONAL DEVELOPMENTAL,
OPERATIONAL AND ORGANIZATIONAL FUNDING FOR THE
TECHNICAL EDUCATION AND SKILLS DEVELOPMENT
AUTHORITY (TESDA), AND FOR OTHER PURPOSES

Be it enacted by the Senate and House of Representative of the Philippines
in congress assembled:

SECTION 1. DECLARATION OF POLICY - it is hereby declared
the policy of the state to:

a. Promote and strengthen the quality of technical education and skills
development programs to attain international competitiveness.

b. Focus technical education and skills development on meeting the
changing demands for quality middle-level manpower;

¢. Encourage critical and creative thinking by disseminating the
scientific and technical knowledge base of middle-level manpower
development programs;

d. Recognize and encourage the complementary roles of public and
private institutions in technical education and skills development
and training systems; and


e. Instill desirable values through the development of moral
character with emphasis on work ethic, self-discipline, self-reliance
and nationalism.

SECTION 2. TESDA DEVELOPMENT FUND - A TESDA
Development Fund is hereby established, to be managed/administered by
the Authority, the income from which shall be utilized exclusively in
awarding of grants and providing assistance to training institutions,
industries, local government units for upgrading their capabilities and to
develop and implement training and training-related activities. The

contribution to the fund shall be the following:

a. one-time lump sum appropriation from the National Government;
b. annual contribution from the Overseas Workers Welfare
Administration Fund, the amount of which should be part of the

study on financing in conjunction with letter (D) of Section 34 of
RA7796;

¢. donations, grants, endowments, and other bequests or gifts, and
d. any other income generated by the Authority

SECTION 3. TESDA BUDGET - The amount necessary to finance
the initial implementation of this Act shall be charged against the existing
appropriations of the National Manpower and Youth Council (NMYC) and
the Bureau of Technical and Vocational Education (BTVE)

SECTION 4. APPROPRIATION - The amount of Five hundred
million pesos (P500,000,000.00), or so much thereof as may be
necessary, is there hereby appropriated as additional development
funding, out of any funds in the National Treasury not otherwise

appropriated, to carry into effect the provisions of this Act.


The State shall hereby provide a separate authorize operational and
organizational funding of One hundred million pesos (P100,000,000.00)

to implement and to maintain the continuity of its mandate.

‘The amount necessary to carry out the purposes of this Act shall be
included in the annual budget of implementing agencies in the General
Appropriations Act (GAA) of the year following its enactment into law and
every year thereafter.

The state shall hereby authorize the Technical Education and Skills
Development Authority to re-align its appropriations, in the current year

of the date of the effectivity of this Act to conform with its mandate and
requirements.

SECTION 5. PERIODIC REPORTS ~- The TESDA shall submit
periodic reports on its findings and make recommendations on actions to
be taken by Congress and Senate and the appropriate department, and in
order to carry out the objectives and mandates of this Act.

SECTION 6. AUTOMATIC REVIEW - Every three (3) years after the
effectivity of this Act, an independent review panel composed of experts to
be appointed by the President shall review the policies and programs in
the TESDA and shall make recommendations, based on its findings, to the
President and to both Houses of Congress.

SECTION 7. REPEALING CLAUSE - All laws, executive orders,
issuances, rules and regulations inconsistent with this Act are hereby

amended, repealed or modified accordingly.

SECTION 8. SEPARABILITY CLAUSE - If, for any reason or
reasons, any portion or provision of this Act shall be held unconstitutional
or invalid, the remaining provisions not affected thereby shall continue to

be in full force and effect.


SECTION 9. EFFECTIVITY CLAUSE - This Act shall take effect
fifteen (15) days after its publication in any newspaper of general
circulation.

Approved,