Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

FIFTEENTH CONGRESS:
Second Regular Session

5271

House Bill No.

Introduced by Representatives
DIOSDADO MACAPAGAL ARROYO and GLORIA MACAPAGAL ARROYO

AN ACT
INSTITUTIONALIZING A SCHOOL MODERNIZATION AND INNOVATION
PROGRAM FOR PUBLIC ELEMENTARY AND SECONDARY SCHOOLS,
PROVIDING FUNDS THEREFOR, AND FOR OTHER PURPOSES

EXPLANATORY NOTE

Globalization has put pressure on Third World countries like the
Philippines in producing highly-specialized and technical people in a short span
of time or suffer the consequence of being left behind. Coupled by rapid
changes, developments and innovations in the field of Information Technology
and the emergence of knowledge-based society, the country finds it necessary to
review and recalibrate the thrusts of its educational system to be able to meet the
growing needs and demands of a highly-competitive world market.

There is therefore an urgent need to formulate a viable, comprehensive
and sustainable long-term plan on how to modernize our schools both at the
elementary and secondary levels.

Statistics would show that at present, public school students pale in
comparison with their counterparts in private schools. Based on a preliminary
report of Department of Education (DepEd), only 50% of the 4,336 high schools
nationwide have computer laboratories consisting of a minimum of ten
computers. Out of this 50%, most of their computers need repair or need
upgrading due to lack in proper maintenance.


Knowing of the National Government's lack in resources, there is a need
for cost-effective and innovative approaches on how to finance school
modernization programs. One such approach is in utilizing the active partnership
of local government units with the private sector such as foundations, private
corporations and business groups.

The proposed bill aims to: (a) provide a broad framework for the
institutionalization of a comprehensive and sustainable modernization program
for the public schools; (b) encourage the schools to become more innovative and
resourceful in developing and implementing programs geared towards
modemization; (c) develop mechanisms that will define the roles and
responsibilities of the officials from the regional, division down to the school
levels in the implementation of school modemization programs; (d) provide
mechanism on how the private sector can participate in the program; and (2)
define regional and school modernization plans responsive to the needs of the
students in the area

The bill also seeks to establish a corresponding School Modernization and
Innovation Trust Fund to help augment regular appropriations provided under the
annual General Appropriations Act. The combined amount will be able to finance
the priority programs for the modernization and improvement of public
elementary and secondary schools.

This is timely for government to find serious ways of increasing the share
of the national budget in prioritizing the computerization of schools, upgrading of
libraries and science laboratories. And with the application of information
technology in classroom instruction, it is the authors’ hope there will be an
increase in teaching efficiency, learning processes and competencies of our
students.

We are therefore enjoining our colleagues to ensure the immediate
passage of this bill into law.

DIOSDADO MACAPAGAL ARROYO GLORIA MACAPAGAL ARROYO
Second District, Camarines Sur Second District, Pampanga


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

FIFTEENTH CONGRESS
Second Regular Session

House Bill No. 5271

Introduced by Representatives
DIOSDADO MACAPAGAL ARROYO and GLORIA MACAPAGAL ARROYO

AN ACT
INSTITUTIONALIZING A SCHOOL MODERNIZATION AND INNOVATION
PROGRAM FOR PUBLIC ELEMENTARY AND SECONDARY SCHOOLS,
PROVIDING FUNDS THEREFOR, AND FOR OTHER PURPOSES

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

SECTION 1. Title. -— This Act shall be known as the "School
Modernization and Innovation Act of 2011."

SECTION 2. Declaration of Policy. — It is hereby declared the policy of the
State to promote a comprehensive and sustainable modernization program for all
public elementary and secondary schools aimed at improving the effectiveness
and efficiency of delivery of basic education. The State shall likewise take into
account the regional and sectoral needs and conditions in developing a viable
long-term modernization plan. The State shall also encourage the participation
of the private sector and local government units in strengthening programs which
provide relevant and adequate skills for public school children necessary for
them to be global competitive.

SECTION 3. Statement of Purpose. — This Act seeks to attain the
following objectives:


(a) To provide a broad framework for the institutionalization of a
comprehensive, and sustainable modemization program for the public
schools

(b) To encourage the schools to become more innovative and resourceful
in developing and implementing programs geared towards modernization

(c) To develop mechanisms which will define the roles and responsibilities
of the officials from the regional, division down to the school levels in the
implementation of the school modernization programs

(d) To provide mechanisms on how the private sector can participate Ill
the program

(e) To define a regional, division and school modernization and innovation
plan responsive to the needs of the students in the area.

SECTION 4. Implementing Agency. — The Department of Education,
hereinafter referred to as the "Department", shall be the main implementing
agency of the School Modernization and Innovation Act. The Secretary of
Education shall be responsible of ensuring the smooth implementation of the
modernization plan for schools.

SECTION 5. Components. - The School Modernization and Innovation
Program shall consist of the following}

(a) Computerization of public elementary and high schools. — At least one
computer laboratory with a minimum of 10 computers shall be established
in every public high school nationwide. The Science high schools in every
region nationwide shall be given priority in the allocation of funds for the
computerization. After more than 50% of the public high schools have
been computerized, the public elementary schools shall start its own
massive computerization program.

(b) Upgrading of Libraries in public elementary and secondary schools. —
A well-equipped library shall be established in every public elementary
and secondary high school. The library should be provided with at least 2
computers which have Internet access to assist the students in their
research work.

(c) Promotion of an integrated distance-learning program. — The distance
learning program aims to enable the students from local and foreign
private schools to share their knowledge and expertise in the areas of
Science and Technology, Mathematics, English and Communication to
students in public schools through modem system of instructional and
communication technology. It may adopt an interactive system of


instruction through television, modem satellite communication or cable
system whichever is appropriate and feasible in the area. The students as
well as teachers in public schools shall be provided with opportunities to
avail of the latest trends and developments in the field of educational,
science, technology and communication even from abroad through
distance learning programs.

(d) Upgrading of Science Laboratories. - Each public elementary and high
school will be provided with a well-equipped science laboratory with
modern science equipment, which is essential in improving the
competencies of the students in the area of science and technology.

SECTION 6. Phased Implementation of the Program. — The Department
shall implement the program in phases to ensure continuity and sustainability of
the projects. The phases of implementation will be determined according to the
priorities set by the Department as well as the absorptive capacity of the schools.

SECTION 7. Financing of the Program. — The Department of Budget and
Management shall allocate 10% of the total appropriations of the annual budget
of the DepEd for the financing of the School Modernization and Innovation
Program.

SECTION 8. Formulation .of School Modemization and Innovation Plan at
School and Regional Level. -

(a) National Modernization and Innovation Plan. — The Secretary of
Education in consultation with regional directors and schools division
superintendents shall develop a comprehensive and _ sustainable
modernization and innovation plan for public elementary and secondary
schools nationwide which will be implemented within a period of 10 years.
The plan shall be divided into short, medium and long term period of
implementation. It shall take into account the rapid changes in the field of
information technology, communication and instructional delivery in
various part of the world. It shall also identify sources of funding both from
local and international financial institutions as well as the role of private
sector, local government units and other members of the civil society. It
shall likewise define the national standards and framework, which will be
adopted in developing the individual plans.

(b) Regional Modernization and Innovation Plan. — The Regional Director
in coordination with the Schools Division Superintendents shall formulate
a modemization framework consistent with national standards which will
serve as the basis for the plan taking into consideration the specific needs,
and requirements of the region. The regional plan shall highlight the
peculiarities and unique needs of the various schools within its jurisdiction.


(c) School Modernization and Innovation Plan. — Each school shall
formulate its own 10-year modemization plan which reflects the
aspirations and goals of the school based on the regional plan of action.
The plan shall consist of an assessment of the existing needs of the
school as well as an inventory of existing educational facilities, priority
programs for the allocation of funds, strategies to mobilize financial
resources to augment regular budget and strategies to manage the use of
personnel, physical and fiscal resources. The individual plans of the
schools shall be submitted to the regional offices for consolidation

SECTION 9. Schoo! Modemization and Innovation Trust Fund. — A School
Modernization and Innovation Fund, hereinafter referred to as the Fund, is
hereby established, exclusively to augment the regular appropriations provided
under Section 7 to finance the priority programs for schoo! modernization and
improvement of public elementary and secondary schools.

(a) The government's contribution to the Fund shall be the following:

1) The amount of Fifteen billion pesos (P15,000,000,000) as seed
capital;

2) The equivalent of twenty percent (20%) of the annual gross
earnings of the Philippine Amusement Gaming Corporation
(PAGCOR);

3) the equivalent of 10% annual share on the Total gross
collections of the travel tax;

4) The equivalent of 20 %of any additional increase annually in the
fees for vehicle registration;

5) The equivalent of 2% of the additional increase annually in
revenue collections;

6) The equivalent of 10% of the sales of the lotto operations of the
Philippine Charity Sweepstakes Offices.

The fund shall have a private portion to be raised from donations and gifts
and other conveyances including materials, equipment, properties and services
by gratuitous title.

(b) The fund shall be distinct and separate from the schools regular
allotment for maintenance and other operating expenses (MOOE).

(c) The Department shall be authorized to use the annual interest income
of the Trust Fund provided that the expenditures will be used directly for


the implementation of the modernization programs and not on the regular
programs of the Department. Provided, further, that 50% of the entire
annual income shall be retained in the Bureau of the Special Treasury.

SECTION 10. Management and Administration of the Fund. — The Fund
shall be administered by the Department of Education. For sound and judicious
management of the Fund, the Commission shall appoint a reputable government
financial institution as portfolio manager of the Fund, subject to the following
conditions.

As administrator of the Fund, the Department shalll prepare the necessary
guidelines for its use, subject to the following conditions:

(a) No part of the seed capital of the Fund, including earnings thereof shall
be used to underwrite overhead expenses of the administration;

(b) Unless otherwise stipulated by the private donor, only earnings of
private contributions shalll be used for administrative expenses;

(c) The Department shall appoint and organize a separate staff that will be
independent administratively from the Department. It shall also enjoy
fiscal autonomy from the Department.

SECTION 11. Mandatory Allocation. — Each local government unit is
hereby directed to allocate at least 5% of their Special Education Fund to
augment the appropriations for the financing of programs in line with the thrusts
of the school modernization and innovation program.

SECTION 12. Uses of the Fund. - The School Modernization and
Innovation Fund shall be used to finance the following:

(a) Projects, which have been approved and certified as priority by the
National Executive Committee and Regional Modernization Committees
created under Section 9 based on the guidelines and criteria formulated
by the Department.

(b) In service training of the teachers in the area of computer literacy and
instructional communication technology.

(©) Procurement of computer equipments including maintenance of
computer, laboratories, audio visual and multimedia facilities, and
appropriate education technology softwares.

(d) Procurement of science equipments for science laboratories in schools


SECTION 13. Order of Priority in the allocation of funds. — In order for the
school to be given priority in the allocation of funds from the School
Modernization Innovation Trust Fund, the following criteria should be met:

(a) The programs, which will be funded, should be in line with the
formulated regional and school modernization plans.

(b) The school should have mobilized additional 40% counterpart funding
from either the local government unit, private corporations, foundations,
business groups or private individuals for every program which will be
implemented.

(c) The programs have been approved by either the Regional
Modernization Committee, and the National Executive Committee or both
depending on the funding required.

SECTION 14. Selection Process. — The individual schools nationwide are
directed to develop project proposals in line with the modernization thrusts of
their region and submit to their respective regional offices to determine its
feasibility and contribution to the overall thrusts of school modernization in the
country.

A National Executive Modemization Committee shall be established. It
shall be headed by the Secretary of the Department of Education, the
Undersecretary for Programs ard Directors of Elementary and Secondary
Education and 2 representatives from the private sector. It shall be in-charge in
evaluating projects with national application and coverage.

A Regional Modernization Committee headed by the Regional Director
and composed of 3 Division Superintendents and 2 Representatives from Parent
Teachers Association in the region shall be established to evaluate all project
proposals at the regional level. The Regional Modemization Committee shall
have the authority to approve and recommend release of funding for projects with
a funding requirement of Five Hundred Thousand Pesos (P500,000.00) and less

However, the approved project proposals with a funding requirement of
more than P500,000.00 will be forwarded to the National Executive
Modernization Committee chaired by the Secretary of Department of Education
or his duly designated representative for final review and approval.

The Department shall promulgate guidelines for the selection of the

project proposals, which will be funded by the School Modernization and
Innovation Fund.

SECTION 15. Private Sector Participation. - The members of the private
sector are hereby encouraged to provide technical and/or financial support to the


schools as they pursue their modemization plans. The private corporations,
foundations, business groups or individuals who shall provide support to
modernization programs shall be allowed to deduct from their gross income
100% of the expenses directly used to finance the implementation of the program
in the schools.

The schools which would be able to seek at least 40% counterpart funding
support from private corporations, foundations, business groups individuals as
well as local government in their respective local communities shall be given the
priority the provision of direct grants and funding from the School Improvement
and Innovation Fund particularly in programs which are mentioned in Section 9

SECTION 16. Implementing Rules and Regulations. - The Secretary of
Education shall promulgate the implementing rules and regulations within (90)
ninety days after the approval of this Act

SECTION 17. Separability Clause. — If any portion or provision of this Act
shall be declared unconstitutional, such declaration shall not invalidate other
parts thereof, which shall remain in full force and effect.

SECTION 18. Repealing Clause. - All laws and rules and regulations or
parts thereof inconsistent with the provisions of this Act are hereby repealed or
modified accordingly.

SECTION 19. Effectivity. - This Act shall take effect fifteen (15) days
following the publication in at least two (2) newspapers of general circulation.

Approved,