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

SECTION 1. Republic Act No. 7165 is hereby amended as follows:

"SECTION 1. It is hereby declared to be the policy of the State to give the highest priority to the adoption of measures for the universalization of literacy.

"Toward this end, it shall encourage and rationalize the formulation of policies and the implementation of programs on nonformal, informal, and indigenous learning systems, as well as self- learning, independent, and out-of-school study programs particularly those that respond to community needs.

"The State shall institutionalize an inter- agency coordinating and advisory body to synchronize and strengthen policies and efforts toward the universalization of literacy."

"SEC. 2. To carry out the declared national policy, there is hereby created a Literacy Coordinating Council, hereinafter referred to as the Council, which shall be an inter-agency body administratively attached to the Department of Education."

"SEC. 3. The Council shall be composed of the following members:

"(a) The Secretary of the Department of Education (DepED), as the Chairperson, who may designate an undersecretary as his/her permanent representative;

"(b) The Secretary of the Department of the Interior and Local Government (DILG) or his/her duly designated representative;

"(c) The President of the Philippine Normal University (PNU) or his/her duly designated representative;

"(d) The Director General of the Philippine Information Agency (PIA) or his/her duly designated representative;

"(e) The Director General of the National Economic and Development Authority (NEDA) or his/her duly designated representative;

"(f) The Chairperson of the Senate Committee on Education, Arts and Culture or his/her duly designated representative;

"(g) The Chairperson of the House of Representatives Committee on Basic Education and Culture or his/her duly designated representative; and

"(h) A representative from the network of nongovernment organizations (NGOs) involved in the propagation of literacy.

"The Council shall approve and confirm the appointment of the NGO representative, who shall serve for a period of three (3) years, and who may be reappointed for another term.

"The Council shall meet regularly and may hold special meetings to consider urgent matters upon the call of the Chairperson or any five (5) Council members."

"SEC. 4. The duly designated representatives to the Literacy Coordinating Council shall be afforded equal opportunity to vote and participate in any deliberation during meetings of the Council.

"Likewise, they shall be afforded, whenever necessary, reimbursement of any actual expenses incurred during council-related functions and duties, subject to the provisions of existing law and/or pertinent rules and regulations."

"SEC. 5. The Council shall have the following powers and functions:

"(a) Act as the overall advisory and coordinating body, providing policy and program directions for all literacy endeavors in the country;

(b) Engage the services, expertise and resources including, but not limited to, cooperation, assistance and support of appropriate government agencies or NGOs involved in literacy;

"(c) Recommend strategies on the development of a mass movement for the promotion of life skills and education towards the universalization of literacy;

"(d) Formulate measures on the monitoring and evaluation of the literacy situation in the country, including the establishment and maintenance of a national data bank and information exchange and dissemination system to support literacy efforts at the national and local levels;

"(e) Assist in identifying and adopting successful management schemes of literacy programs, and adopt measures to boost research and development work in literacy, by government agencies and NGOs involved in literacy work;

"(f) Formulate policies towards maximizing public and private sector support and involvement on literacy programs, projects, and activities;

"(g) Propose measures on how to organize and strengthen support structures for literacy at the regional, provincial, city, municipal and barangay levels; and

"(h) Perform such other functions as may be necessary in furtherance of the purposes of this Act."

"SEC. 6. The Council shall organize a secretariat to be headed by a Chief of Office. The Council shall determine the secretariat's staffing pattern, qualifications, duties, responsibilities and functions as well as the compensation for the positions to be created subject to the National Compensation and Classification Plan and other existing civil service rules and regulations.

"The existing secretariat of the Council shall continue to serve in their present position and shaD be extended permanent status subject to existing civil service rules and regulations.

"The amount necessary for the payment of employees' salaries, benefits and other emoluments shall be taken from the annual appropriations of the Council: Provided, That such obligations shall not exceed forty per centum (40%) of its total annual appropriations.

"SEC. 7. The sum of Twenty million pesos (Php20,000,000.00) is hereby authorized to be appropriated, out of any funds in the National Treasury not otherwise appropriated, to carry out the functions of the Council under this Act. Thereafter, the sum needed for the operation and maintenance of the Council shall be included in the annual budget of the DepED.

"The Council shall submit to Congress an annual report which shall include, among other things, policy recommendations which require legislative action towards the total eradication of illiteracy."

"SEC. 8. The Council, in consultation with the appropriate national government agencies, shall promulgate the implementing rules and regulations within ninety (90) days from the effectivity of this Act."

SEC. 2. All laws, executive orders, presidential decrees, and other issuances or parts thereof inconsistent with the provisions of this Act are hereby repealed or modified accordingly.

SEC. 3. If any part, section or provision of this Act is declared unconstitutional, the other parts, sections or provisions hereof not affected thereby shall remain in force and in effect.

SEC. 4. This Act shall take effect fifteen (15) days after completion of its publication in at least two (2) newspapers of its publication in at least two (2) newspapers of general circulation.

Approved,

(Sgd.) JUAN PONCE ENRILE	(Sgd.) PROSPERO C. NOGRALES
President of Senate	Speaker of the House of Representatives

This Act which is a consolidation of Senate Bill No. 3573 and House Bill No. 6439 was finally passed by the Senate and the House of Representatives on February 1, 2010 and February 3, 2010, respectively.

(Sgd.) EMMA LIRIO-REYES	(Sgd.) MARILYN B. BARUA-YAP
Secretary of Senate	Secretary General House of Representatives

Approved: MAY 27 2010

(Sgd.) GLORIA MACAPAGAL - ARROYO
President of the Philippines