Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

EIGHTEENTH CONGRESS.
First Regular Session

5433

HOUSE BILL NO.

Introduced by Hon. John Marvin “Yul Servo” C. Nieto

EXPLANATORY NOTE

This bill aims to strengthen the Technical Education and Skills Development
Authority by upgrading it into a department from an authority thereby
amending RA 7796, otherwise known as TESDA Act of 1994.

Pursuant to the law creating TESDA, the authority is mandated to carry out the
government efforts in providing relevant, accessible, high quality and efficient
technical education and skills development of Filipinos in pursuit to empowering
them towards self-actualization.

Twenty-five (25) years since their creation, TESDA has become the leading
authority in ensuring that technical education and skills development (TESD) is
relevant, efficient, accessible, and of high quality. However, the agency has
been facing enormous challenges due to changes in the local and global
environment that the organization needs to focus on. There are limitations to
what TESDA can do which can be addressed if it will be elevated into a line
Department of the government. TESDA must address the need for modern
facilities and equipment in order to be at par with the requirements of the
challenge posed by the onslought of Industrial Revolution and other
advancements that may happen in the future. It must also be bestowed with
the police powers to impose sanctions and penalties to erring TESD
implementers.

It is high time that the TESDA receive additional support from the government,
considering their great contribution not just to our fellow Filipinos, but
ultimately to the economy of the country.

As manifestation of support to the main proponents of this measure, the
immediate passage of this bill is earnestly sought.

JOHN IN J YUL SERVO” C. NIETO

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Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

EIGHTEENTH CONGRESS
First Regular Session

HOUSE BILL NO. 5433

Introduced by Hon. John Marvin “Yul Servo” C. Nieto

AN ACT CREATING THE DEPARTMENT OF TECHNICAL EDUCATION AND
SKILLS DEVELOPMENT, DEFINING ITS POWERS AND FUNCTIONS,
REPEALING REPUBLIC ACT NO. 7796, OTHERWISE KNOWN AS THE
TESDA ACT OF 1994 AND APPROPRIATING FUNDS THEREFOR

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

SECTION 1. Short Title. - This Act shall be known as the “Department of
Technical Education and Skills Development (DTESD) Act of 2019.”

SECTION 2. Declaration of Policy. - It is hereby declared the policy of the
State to provide relevant, accessible, high quality and efficient technical
education and skills development in support of the development of high quality
Filipino manpower responsive to and in accordance with Philippine development
goals and priorities.

The State shall encourage active participation of various concerned sectors,
public as well as private technical-vocational institutions (TVIs) particularly
private enterprises, being direct participants in and immediate beneficiaries of a
technically educated and trained workforce, in providing technical education
services and training opportunities.

SECTION 3. Objectives. -The objectives of this Act are:

a) Promote and strengthen the quality of technical education and skills
development programs to attain global competitiveness and inclusive
growth;

b) Focus technical education and skills development on meeting the
changing demands for quality manpower particularly in support of the
development thrust of the country;

¢) Encourage critical and creative thinking by disseminating the scientific
and technical knowledge base of manpower development programs;


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‘ecognize and
96 S z encourage the
rive ituti compl

a7 owt te institutions, enterprises, jocal Sone Toles of public and
oe il Society Organizations (CSOs) j government units (LGUs) and
99 ) development; n technical education and’ skills

€) Develop the capaciti
ie ici

100 and delivery Of quality teen nchosers to participate in the Blanning

ia 5 Systems; education and skills development
inculcate desiral
103 with emphecte pe values through the development of moral character
104 Nationalism; cs, self-discipline, self-reliance and
105 9) Strongly support the
106 Framework Act (R.A. 10560) ame ton OF the Philippine Qualification
107 10647) and the Busl Tree i Ladderized Education Program (R.A.
108 decrees and orders on education; ” em (R.A. 7686); and other laws,
109 h) Maximize returns to the country’s i
Ty's investment in technical educ: ti
110 ation
tn aos, proigement through an efficient graduates’ employment
rogram within the framework of the nati
12 service network system; and © national employment
113 i) Help in the poverty alleviation efforts by i
Providing the marginalized
114 and vulnerable segments of the country’s population access to income
a generating technical education and skills development opportunities.
17 SECTION 3. Definition of Terms. - As used in this Act:
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119 a) Apprenticeship refers to the training within employment with
120 compulsory related theoretical instruction involving a contract between
121 an apprentice and an employer on an approved apprenticeable
122 occupation;
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124 b) Apprentice refers to a person undergoing training for an approved
125 apprenticeable occupation during an apprenticeship agreement;
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127 ) Apprenticeship Agreement refers to a contract wherein a prospective
128 employer binds himself to train the apprentice who in turn accepts the
129 terms of training for a recognized apprenticeable occupation
130 emphasizing the rights, duties and responsibilities of each party;
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132 d) Apprenticeable Occupation refers to an occupation officially endorsed
133 by a tripartite body and approved for apprenticeable by the Authority;
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BS e) Dual Training System refers to an instructional delivery system of
136 technical and vocational education and training that combines in-plant
137 training and in-school training based on a training plan collaboratively
138 designed and implemented by an accredited dual system educational
139 Institution/training center and accredited dual system agricultural,
140 industrial and business establishments with prior notice and advice te
sa

141 the local government unit concerned. Under this system,


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establishments and the educational institution share the responsibility
of providing the trainee with the best possible job qualifications, the
former essentially through practical training and the latter by securing
an adequate level of specific, general and occupation-related
theoretical instruction. The word “dual” refers to the two parties
providing instruction: the concept “system” means that the two
instructing parties do not operate independently of one another, but
rather coordinate their efforts.

f) Ladderized education refers to the harmonization of all education and
training mechanisms that allow students and workers to progress
between technical-vocational and higher education programs, or vice-
versa. It opens opportunities for career and educational advancement
to students and workers. It creates a seamless and borderless
education and training system that will allow transfers in terms of
flexible entry and exit between technical-vocational and higher
education programs in the post-secondary school educational system;

g) Leading Technology Center refers to centers that provide high quality
and efficient technical education, training and certification in support of
the development of high quality Filipino manpower responsive to and
in accordance with Philippine development goals and priorities;

h) Learner refers to persons hired as trainees in semi-skilled and other
industrial occupations which are non-apprenticeable. Learnership
programs must be approved by the Authority;

i) Levy Grant System refers to a legal contribution from participating
employers who would be beneficiaries of the program (often as a
percentage of the payroll) which is subsequently turned over or
rebated to enterprises offering employee training programs;

4) Middle-Level Manpower refers to those:

i, who have acquired practical skills and knowledge through
formal or non-formal education and training equivalent to at
least a secondary education but preferably at post-secondary
education with a corresponding degree of diploma; or

ii. skilled workers who have become highly competent in their
trade or craft as attested by industry

k) Philippine Qualifications Framework (PQF) refers to the national policy
which describes the levels of educational qualifications and sets the
standards for qualifications outcomes. It is a quality assured national
system for the development, recognition and award of qualifications
based on standards of knowledge, skills, and values acquired in
different ways and methods by learners and workers of a certain

country;


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|) Private Enterprise refers to an economic system under which property
of all kinds can be privately owned and in which individuals, alone or in
association with another, can embark on a business activity. This
includes industrial, agricultural, or agro-industrial establishments
engaged in the production, manufacturing, processing, repacking or
assembly of goods including service-oriented enterprises;

m) Skill refers to the acquired and practiced ability to carry out a task or
job;

n) Skills Development refers to the process through which learners and
workers are systematically provided with learning opportunities to
acquire or upgrade, or both, their ability, knowledge and behavior
pattern required as qualifications for a job or range of jobs in a given
occupational area;

©) Technical Education refers to the education process designed at upper
secondary and lower tertiary levels, aligned with the levels of the PQF,
with the pathways to higher education through the credit transfer
system based on learning outcomes aimed at preparing technicians,
technologists, para-professionals and other categories of workers
and/or entrepreneurs by providing them with a broad range of general
education, theoretical, scientific and technological studies, and related
job skills training;

Trade refers to any group of interrelated jobs or any occupation which
is traditionally or officially recognized as craft or artisan in nature
requiring specific qualifications that can be acquired through work
experience and/or training;

i)

q) Trainee refers to persons who are participants in a vocational,
administrative or technical training program for the purpose of
acquiring and developing job-related skills;

1) Trainer refers to persons who direct the practice of skills towards
immediate improvement in some task;

s) Training refers to teaching or developing oneself or others, any skills
and knowledge that relate to specific useful competencies;

t) Trainer's training refers to training trainers aimed at developing the
latter’s capacities for imparting attitudes, knowledge, skills and
behavior patterns required for specific jobs, tasks, occupations or
group of related occupations;

u) User-Led” or “Market-Driven Strategy refers to a strategy which
Promotes strengthened linkages between  educational/training


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institutions and industry to ensure that appropriate skills and
knowledge are provided by the educational system;

SECTION 4. Creation and Mandate of the Department of Technical
Education and Skills Development. - There is hereby created a Department
of Technical Education and Skills Development (DTESD) hereinafter referred to
as DTESD.

The DTESD shall be the primary policy formulation, planning,
coordinating, implementing, regulating and administrative entity of the
Government for technical education and skills development agenda.

SECTION 5.Powers and Functions. - The DTESD shall have the following
powers and functions:

a) Formulate and recommend national policies and guidelines and conduct
in-depth studies on all policy areas and options that will promote technical
education and skills development in consultation with the relevant
stakeholders;

b) Assess, review, harmonize and coordinate all technical education and
skills development policies and programs to ensure overall consistency
and implementation of the national policies;

c) Organize and constitute various standing committees, subsidiary groups,
or technical working groups for efficient integration, coordination and
monitoring of technical education and skills development programs at the
national, regional, and local levels;

d) Enter into, make, execute, perform and carry-out domestic and foreign
contracts subject to existing laws, rules and regulations;

e) Restructure the entire sub-sector consisting of all institutions and
programs involved in the promotion and development of middle-level
manpower through upgrading, merger and/or phase-out following a user-
led strategy;

f) Approve training standards and assessment packages as established and
conducted by private industries;

g) Establish and administer a system of accreditation of both public and
private institutions;

h) Establish, develop and support institutions trainors’ training and/or
programs;

i) Exact reasonable fees and charges for such assessment and trainings

conducted and retain such earnings for its own use, subject to guidelines

promulgated by the Department;

Allocate resources for the programs and projects it shall undertake

pursuant to the approved National Technical Education and Skills

Development (NTESDP);

k) Determine and approve systematic funding schemes such as the Levy and
Grant scheme for technical education and skills development purposes.

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1) Create, when deemed necessary, an Advisory Committee which shall
provide expert and technical advice to the Secretary to be chosen from
the academe and the private sector. Provided, That in case the Advisory
Committee is created, the Department is hereby authorized to set aside a
Portion of its appropriation for its operations;

m)To review and recommend action to concerned authorities on proposed
technical assistance programs and grants-in-aid for technical education
and skills development, including those which may be entered into
between the Government of the Philippines and other nations, including
international and foreign organizations, both here and abroad;

n) Promuigate rules and regulations for the implementation of its policies
and related laws; and,

0) To perform such other functions as maybe needed to achieve its goals
and objectives to the fullest and as may be provided by this Act.

SECTION 6. Composition. - The DTESD shall be composed of the Office of
the Secretary, and the various bureaus, services, regional and provincial/district
offices. The Office of the Secretary shall house the Office of the Department
Secretary, the Offices of the Undersecretaries, the Offices of the Assistant
Secretaries, and their immediate support staff.

SECTION 7. Powers and Functions of the Secretary.
The Secretary shall have the following functions;

a) Provide executive direction and supervision over the entire operations of
the DTESD;

b) Represent and effectively advocates technical education and skills
development (TESD) concerns in national and international bodies;

c) Establish TESD policies and standards for the effective, efficient and
economical operation of the Department, in accordance with the programs
of the government;

d) Mobilize resources and ensures prudent utilization of and access to TESD
investments and incentives according to national development plans and
priorities;

e) Designate and appoints officers and employees of the Department,
excluding the Undersecretary and Assistant Secretary, Regional Directors,
in accordance with the Civil Service Laws, rules and regulations;

f) Undertake consultations with other members of the Cabinet and officers
of the government relating to TESD concerns;

g) Advise the President on the promulgation of executive and administrative
orders and formulation of regulatory and legislative proposals on matters
pertaining to TESD;

h) Promulgate rules, regulations and other issuances in carrying out the
Department's mandate, objective, policies, plans, programs and projects;

i) Direct and manage the implementation of Department’s programs and
services;


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3) Perform such other functions as may be authorized.

SECTION 8. Undersecretaries and Assistant Secretaries. - The Secretary
shall be assisted by four (4) Undersecretaries and four (4) Assistant Secretaries
who shall be appointed by the President upon recommendation of the
Secretary: Provided, that the two (2) Undersecretaries and the two (2) Assistant

Secretaries shall be career officers.

SECTION 9. Qualifications and Appointments. - The person appointed as
Secretary, Undersecretary, or Assistant Secretary of the DTESDmust be a
citizen and a resident of the Philippines, of good moral character, of proven

integrity, and with at least five (5) years relevant TVET experience.

SECTION 10. Office of Undersecretary for Policy And Planning - The

Undersecretaryfor Policy and Planning shall perform the following functions:

a) Assist the Secretary in matters pertaining to the corporate and
Technical Education and Skills Development (TESD) sector plans and
policies including international cooperation and commitments;

b) Assist the Secretary in the formulation of policies and implementation
of quality management systems;

c) Orchestrate the conduct of sectoral researches and studies as inputs to
planning and policymaking for an effective and efficient allocation of
resources;

d) Direct the preparation and submission of reports on TESD to the Office
of the President and other oversight agencies;

e) Direct the development of a user-led and market-driven national TESD
strategy;

f) Lead in the development of a national marketing strategy for TESD;

g) Oversee the effectiveness of the TESD system and proposes strategies
to continuously improve the TESD sector;

h) Ensure the participation of the stakeholders in the governance of TESD
programs;

i) Oversee the implementation of the PQF in cooperation with other
relevant agencies in accordance with the PQF-Implemeting Rules and
Regulations;

j) Initiate the establishment of local (inter-agency) and international
technical cooperation projects;

k) Direct the implementation of international commitments within the
Department including bilateral, regional and multilateral cooperation;

1) Provide direct supervision over the Planning Bureau, International
Relations Bureau and the Quality and Organizational Management
Bureau;

m)Monitor and evaluates the programs and projects implemented; and

n) Perform such other functions as may be authorized.


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SECTION 11. Office of the Undersecretary for Partnerships and
Standards Development.- The Undersecretary for Partnerships and Standards
Development shall perform the following functions:

a) Assist the Secretary in matters pertaining to partnerships and
linkages;

b) Oversee’ the development of a system of establishing and
monitoring industry partnerships;

c) Manage enterprise-based training systems in collaboration with the
relevant Bureau;

d) Exercise direct supervision over the Partnerships and Linkages
Office (PLO) and the Globalization of TESD Programs and Services
for OFWs Programs and Services;

e) Monitor and evaluate the effectiveness of partnerships and linkages
with partners and stakeholders; and

f) Perform such other functions as may be authorized.

SECTION 12. Office of the Undersecretary for Learner Development -
The Undersecretary for Learner Development shall exereise-direet-supervision-of
Be eee e errata) auton od e—fer—Fechnieat_Educatien—and—Skits
Bureatt_and_theNatienat TESD—Trainers Academy

(NTFA}-He/she- shalt Be nelahe shell poformn the following functions:

a) Assist the Secretary in matters pertaining to learner development
programs;

b) Oversee the effective and efficient implementation of TESD delivery
in schools, centers, enterprises and communities;

c) Oversee the efficient and effective implementation of the
implementation of continuing development programs for trainers,
teachers and instructors, partners/stakeholders in the TESD sector;

d) Oversee the implementation of the national career guidance
program and system;

e) Exercise direct supervision over programs and projects for the
continuing development and enhancement of the administrators,
supervisors, teaching personnel and non-teaching personnel;

f) Direct the  establishment/maintenance of linkage with
partners/stakeholders to expand training capabilities;

g) Direct the conduct of technology researches, and studies for the
optimum utilization of specialized centers and technical excellence;

h) Perform such other functions as may be authorized.

SECTION 13. Office of the Undersecretary for TESD Operations -
TheUndersecretary for TESD Operations shall perform the following
functions:


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a) Assist the Secretary in matters pertaining to TESD operations and
scholarship programs;

b) Oversee the effective and efficient implementation of national
strategy to enhance access to TESD programs and services at the
Regional and Provincial/ District level;

c) Oversee the efficient and effective implementation of TESD policies,
standards, and programs;

d) Exercise direct supervision over Scholarship Management Bureau,
Regional Operations Management Bureau, Public Information Office
and the Special Projects Office;

e) Monitor and evaluates the performance of Regional/Provincial
Offices/TTIs including specialized centers; and

f) Perform such other functions as may be authorized.

SECTION 14. Bureaus, Services, and Personnel. - The bureaus under
the Office of the Secretary of DTESD shall be headed by an Executive
Director to be appointed by the President upon the recommendation of the
Secretary. The Executive Directors shall have the rank and emoluments of
Director IV.

SECTION 15. Regional Office - There shall established Regional Office in
each region of the country to be headed by the Regional Director with the rank
and emoluments of Director IV and appointed by the President. The Regional
Office shall have the following functions:

a) Direct implementation of TESD programs, projects and related
activities in the region;

b) Develop and recommends TESD programs for local level
implementation within set policies;

c) Deploy policies to stakeholders;

d) Manage TESD resources in the region;

e) Plan and implement policy inputs;

f) Monitor and evaluate program implementation; and

g) Perform such other functions as may be authorized.

SECTION 16. The Provincial/District Offices- The Provincial/District Office
shall be headed by a Provincial/District Director who shall have the rank and
emoluments of a Director III. The Provincial/District office shall have the
following functions;

a) Serve as secretariat to the Provincial Technical Education and Skills

Development Committees;

b) Provide technical assistance to the local government units for effective

supervision, coordination, integration of all technical education and
training programs within their localities;

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¢) Review and recommends priority technical education and training
Programs within their localities; and
d) Perform such other functions as may be authorized.

SECTION 17. Technical Education and Training Centers. - The DTESD shall
absorb and enhance existing Technical Education and Training Centers; and
establish a network of national, regional and local technical education and skills
development centers for the purpose of promoting technical education and skills
development. This network shall include leading training technology centers,
training centers in vocational and technical schools, technical institutes,
polytechnic colleges, and all other duly accredited public and private dual
system educational institutions. The technical education and skills development
centers shall be administered and operated under such rules and regulations as
may be established by the Department in accordance with the National
Technical Education and Skills Development Plan.

Thesecenters and schools shall have the following functions:

a) Provide responsive formal and non-formal TESD programs;

b) Conduct applied research and development programs and provides
extension services in coordination with Regional Offices
(ROs)/Provincial Offices (POs);

c) Undertake entrepreneurship development program;

d) Conduct outreach programs in coordination with ROs/POs;

e) Provide job linkages;

f) Provide assessment and certification;

g) Devise mechanisms for sustainable operation and development;

h) Monitor and evaluate program implementation; and

i) Perform such other functions as may be authorized.

SECTION 18. Structure and Staffing Pattern. - Subject to the approval of
the DBM, the Department through the Secretary shall determine its
organizational structure, staffing, pattern, qualification standards, and
Placement of personnel in the DTESD shall be appointed in accordance with the
civil service law, rules, and regulations.

SECTION 19. Compliance with the Salary Standardization Law. - The
compensation and emoluments of the officials and employees of the DTESD
shall be in accordance with the salary standardization law and other applicable
laws under the national compensation and clarification plan.

SECTION 20. Consultants and Technical Assistance, Publication and
Research. - In pursuance of its objectives, the DTESD is hereby authorized to
set aside a portion of its appropriation for the hiring of services of qualified
consultants, and private organizations for research work and publication in the
field of technical education and training. It shall avail itself of the services of
other agencies of the Government as may be required.

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SECTION 20. Formulation of a Comprehensive Development Plan for
Middle Level Manpower.- The Department shall formulate a comprehensive
development plan for middle manpower based on a national employment plan
or policies for the optimum allocation, development and utilization of skilled
workers for employment entrepreneurship and technology development for
economic and social growth. This plan shall be updated periodically and
submitted to the President of the Philippines for approval. Thereafter, it shall be
the plan for the technical education, training, and certification for the entire
country within the framework of the National Development Plan. The
Department shall direct through its offices to call on public agencies, the private
sector and academe to assist in this effort. The comprehensive plan shall
provide for a reformed industry-based training program including
apprenticeship, dual training system and other similar schemes intended to:

a) Promote maximum protection and welfare of the worker-trainee;

b) Improve the quality and relevance and social accountability of technical
education and training;

c) Accelerate the employment generation effort of the government; and

d) Expand the range of opportunities for upward social mobility of the school
going population beyond the traditional higher levels of formal education.
All government and non-government agencies receiving financial and
technical assistance from the government shall be required to formulate
their respective annual agency technical education and training plan. The
budget to support such plan shall be subject to review and endorsement
by the Department to the DBM. The Department shall evaluate the
efficiency and effectiveness of agencies skills development program and
schemes to make them conform to the quantitative and qualitative
objectives of the national technical education and skills development plan.

SECTION 21. Technical Education and Skills Development Committees. -
The Department shall establish Technical Education and Skills Development
Committees at the regional and local levels tocoordinate and monitor the
delivery of all training activities by the public and private sectors, and
recommend policy, program and project. This committee shall likewise serve as
the Technical Education and Skills Development Committees of the regional and
local development councils. The composition of the Technical Education and
Skills Development Committees shall be determined by the Secretary.

SECTION 22.Enterprise-Based Training Program. - The Department shall
promote Enterprise-Based Training as a major mode of training rather than an
employment arrangement and shall see to it that it is not subject to abuse by
unscrupulous entities.

SECTION 23. Establishment and Administration of National Training

‘Standards. - There shall be national training standards to be established by
Department-accredited industry committees. The Department shall develop and

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implement a certification and accreditation program in which private industry
groups and trade associations are accredited to conduct approved assessment
packages, and the local government units to promote such assessment in their
respective areas in accordance with the guidelines set by the Department.

The Secretary shall determine the occupational trades for mandatory
certification. All certificates relating to the national training standards and
certification system shall be issued by the Department through its Regional and
Provincial Offices.

In consonance with the Philippine Qualifications Framework (PQF), the
Department shall closely collaborate with the Professional Regulation
Commission (PRC) as regards to the assessment of technicians, master
craftsman and technologists.

SECTION 24. Administration of Training Programs. - The Department shall
design and administer training programs and schemes that will develop the
capabilities of public and private institutions to provide quality and cost-
effective technical education and skills development and related opportunities.
Such training programs and schemes shall include teachers'/trainers’ training in
occupational trades and related fields of employment, and value development
as an integral component of all technical education and training programs.

SECTION 25. Assistance of Employers and Organizations. - The
Department shall assist any employer or organization engaged in technical
education and training schemes designed to attain its objectives under rules
and regulations established by the Department for this purpose.

SECTION 26. Accreditation and Regulation of Technical Education and
Skills Development Programs. - A\l technical education and_ skills
development programs shall be duly accredited by the Department before it is
offered to the public by any public, private entity or non-government
organization.

Non-compliance with the accreditation requirements of the Department
shall form part of the bases for the possible suspension or cancellation of the
entities’ license to operate issued by competent authorities.

SECTION 27. Coordination of All Technical Education and Skills
Development Schemes. - In order to integrate the national technical
education and skills development efforts, all technical education and skills
development schemes as provided for in this Act shall comply with national
standards as determined by the DTESD particularly those having to do with
competency standards. For this purpose, existing technical education and skills
development programs in the Government and in the private sector, specifically
those wholly or partly financed with government funds, shall be reported to the

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Department which shall assess and evaluate such programs to ensure their
efficiency and effectiveness.

Noncompliance with the above-mentioned standards as well as reportorial
requirements shall be disqualified from any form of government assistance in
the field of technical education and skills development.

SECTION 28. Enterprise-Based Partnerships and Linkages. - The
Department shall establish effective and efficient institutional arrangements
with industry bodies and such other organizations or associations to ensure
direct participation of employers and workers in the design and implementation
of technical education and skills development schemes, competency
standardization and certification; and such other functions in the fulfilment of
the Department's objectives.

SECTION 29. Inclusive Training Opportunities. - The Department shall
likewise design and implement a delivery system for community based technical
education and skills development opportunities for the marginalized and
disadvantaged sectors of the population, providing them with new tools of
wealth creation and with the capability to take on higher value-added gainful
activities; and, to share equitably in productivity gains eventually leading to
poverty alleviation and reduction.

SECTION30. Skills Competitions. - To promote quality technical education
and skills development in the country and with the view of participating in
international skills competitions, the DTESD, with the active participation of
private industries, shall organize and conduct annual Skills competitions.

The DTESD shall promulgate the necessary rules and guidelines for the
effective and efficient conduct of National Skills competitions and for the
country’s participation in internationals Skills competitions such as ASEAN and
World Skills Olympics.

SECTION 31. The TESD Development Fund. - A Technical Education and
Skills Development Fund is hereby established, to be managed/administered by
the Department, 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) A one-time lump sum appropriation from the National Government;

b) An annual contribution from the Overseas Workers Welfare
Administration Fund, the amount of which shall be determined by the
Overseas Workers Welfare Administration and based on the study on
financing capacity of the OWWA fund;

14


677
678

c) Donations, grants, endowments, and other bequests or gifts, and any
other income generated by the Department.

The Secretary shall be the administrator of the fund, and as such, shall
formulate the necessary implementing guidelines for the management of the
fund, subject to the following:

a) Unless otherwise stipulated by the private donor, only earnings of
private contributions shall be used; and

b) No part of the seed capital of the fund, including earnings, thereof,
shall be used to underwrite expenses for the administration of the
Fund.

The Secretary shall appoint a reputable government-accredited
investment institution as fund manager, subject to existing government rules
and regulations.

SECTION 32. Technical Assistance, Incentives and Scholarship Grants. -
The Department shall adopt a system of providing technical assistance,
incentives and scholarship grants which shall be designed to encourage public
and private sector and clientele participation in technical education and training
activities along the priorities identified by the National Development
Plan/Agenda.

SECTION 33. Placement Centers. - There shall be established a network of
Placement centers or PLACERS in all the Provincial/District Offices to cater
specifically to the job placement of graduates of TESD institutions. These
Centers shall be financed and administered by the DTESD. In coordination with
the Department of Labor and Employment (DOLE), these centers shall be part
of the National Employment Service Network of the DOLE.

SECTION 34.Separation and Retirement from Service. - Employees who
are separated from service within six (6) months from the effectivity of this Act
as a result of the abolition/reorganization under the provisions of this Act shall
receive separation benefits to which they may be entitled under existing laws,
orders and issuances: Provided, that those who are qualified to retire under
existing retirement laws shall be allowed to retire and receive retirement
benefits to which they may be entitled under applicable laws, orders and
issuances.

SECTION 35. Transitory Provision. - The Technical Education and Skills
Development (TESDA) created under Republic Act No. 7796 is hereby
abolished; and all personnel and resources therein shall be transferred to the
DTESD.

The TESDA Board created under Section 6 and 7 of R.A. 7796 is likewise
abolished.

15


703

706
707
708

no
m1
712
713
n4
7s
716
n7
718
n9
720

ne
723
724
725
726
27
728
729
730
1
732
733
734
735
736
BI
38
B9
740
741

743
744,
745
746

747

TheTESDA Secretariat created under Sections 10-15 of R.A. 7796 shall
comprise the initial manpower complement of the DTESD, Provided,that, no
employee shall be terminated by virtue of this transfer.

The laws and rules on government reorganization as provided under
Republic Act No. 6656, otherwise known as the Reorganization Law, shall
govern the transfer and reorganization process of the Department.

The Personnel of the TESDA 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 pattern of the DTESD shall have been approved. Provided, That the
Preparation and approval of the said new organizational structure and staffing
pattern shall, as far as practicable, respect and ensure the security of tenure
and seniority rights of affected government employees. Those personnel whose
Positions are not included in the new staffing pattern or who are not
reappointed or who choose to be separated as a result of the reorganization
shall be paid their separation or retirement benefits under existing laws.

SECTION 36. Appropriations. - The amount needed for the initial
implementation of this Act shall be taken from the current fiscal year’s
appropriation of TESDA. Thereafter, the amount needed for the operation and
maintenance of the DTESD shall be included in the General Appropriations Act.

SECTION 37. Implementing Rules and Regulations. - The DTESD shall
issue, within a period of ninety (90) days after the effectivity of this Act, the
rules and regulations for the effective implementation of this Act.

SECTION 38. Separability Clause. - If, for any reason, 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 39. Repealing Clause. - All laws, decrees, executive orders, rules
and regulations, issuances of parts thereof inconsistent with the provisions of
this Act are hereby repealed or modified accordingly.

SECTION 40. Effectivity. - This Act shall take effect fifteen (15) days after its
publication in the Official Gazette or in a newspaper of general circulation.

Approved.

16