[ BATAS PAMBANSA BLG.

232, September 11, 1982 ]

AN ACT PROVIDING FOR THE ESTABLISHMENT AND MAINTENANCE OF AN

INTEGRATED SYSTEM OF EDUCATION.

I. GENERAL PROVISIONS

Chapter 1

Preliminary Matters

SECTION 1. Title.—This Act shall be known as the "Education Act of 1982."

SEC. 2. Coverage.—This Act shall apply to and govern both formal and non-formal
systems in public and private schools in all levels of the entire educational system.
Chapter 2

Declaration op Basic State Policy and Objectives

SEC. 3. Declaration of Basic Policy.—It is the policy of the State to establish and
maintain a complete, adequate and integrated system of education relevant to the goals
of national development. Toward this end, the government shall ensure, within the
context of a free and democratic system, maximum contribution of the educational)
system to the attainment of the following national developmental goals:
1. To achieve and maintain an accelerating rate of economic development and social progress;
2. To assure the maximum participation of all the people in the attainment and enjoyment of the benefits of
such growth; and
3. To achieve and strengthen national unity and consciousness and preserve, develop and promote
desirable cultural, moral and spiritual values in a changing world.
The State shall promote the right of every individual to relevant quality education,
regardless of sex, age, creed, socio-economic status, physical and mental conditions,
racial or ethnic origin, political or other affiliation. The State shall therefore promote and
maintain equality of access to education as well as the enjoyment of the benefits of
education by all its citizens.

The State shall promote the right of the nation's cultural communities in the exercise of
their right to develop themselves within the context of their cultures, customs, traditions,
interests and belief, and recognizes education as an instrument for their maximum
participation in national development and in ensuring their involvement in achieving
national unity.

SEC. 4. Declaration of Objectives.—The educational system aims to:

1. Provide for a broad general education that will assist each individual in the peculiar ecology of his own
society, to (a) attain his potentials as a human being; (b) enhance the range and quality of individual and
group participation in the basic functions of society; and (c) acquire the essential educational foundation
of his development into a productive and versatile citizen;
2. Train the nation's manpower in the middle-level skills required for national development;
3. Develop the professions that will provide leadership for the nation in the advancement of knowledge for
improving the quality of human life; and
4. Respond effectively to changing needs and conditions of the nation through a system of educational
planning and evaluation.
Towards the realization of these objectives, and pursuant to the Constitution, all
educational institutions shall aim to inculcate love of country, teach the duties of
citizenship, and develop moral character, personal discipline, and scientific,
technological, and vocational efficiency.

Furthermore, the educational system shall reach out to educationally deprived

communities, in order to give meaningful reality to their membership in the national
society, to enrich their civic participation in the community and national life, and to unify
all Filipinos into a free and just nation.
 II. THE EDUCATIONAL COMMUNITY

Chapter 1

Preliminary Provisions

SEC. 5. Declaration of Policy and Objectives.—It is likewise declared government policy

to foster, at all times, a spirit of shared purposes and cooperation among the members
and elements of the educational community, and between the community and other
sectors of society, in the realization that only in such an atmosphere can the true goals
and objectives of education be fulfilled.
Moreover, the State shall:

1. Aid and support the natural right and duty of parents in the rearing of the youth through the educational
system.
2. Promote and safeguard the welfare and interests of the students by defining their rights and obligations,
according them privileges, and encouraging the establishment of sound relationships between them and
the other members of the school community.
3. Promote the social and economic status of all school personnel, uphold their rights, define their
obligations, and improve their living and working conditions and career prospects.
4. Extend support to promote the viability of those institutions through which parents, students and school
personnel seek to attain their educational goals.
SEC. 6. Definition and Coverage.—"Educational community" refers to those persons or
groups of persons as such, or associated in institutions involved in organized teaching
and learning systems.
The members and elements of the educational community are:

1. "Parents" or guardians or the head of the institution or foster home which has custody of the pupil or
student.
2. "Students," or those enrolled in and who regularly attend an educational institution of secondary or
higher level or a person engaged in formal study. "Pupils" are those who regularly attend a school of
elementary level under the supervision and tutelage of a teacher.
3. "School personnel," or all persons working for an educational institution, which includes the following:
a. "Teaching or academic staff," or all persons engaged in actual teaching and/or research
assignments, either on full-time or part-time basis, in all levels of the educational system.
b. "School administrators," or all persons occupying policy implementing positions having to
do with the functions of the school in all levels.
c. "Academic non-teaching personnel," or those persons holding some academic
qualifications and performing academic functions directly supportive of teaching, such as
registrars, librarians, guidance counsellors, researchers, research assistants, research
aides, and similar staff.
d. "Non-academic personnel," or all other school personnel not falling under the definition and
coverage of teaching and academic staff, school administrators and academic non-teaching
personnel.
4. "Schools," or institutions recognized by the State which undertake educational operations.
SEC. 7. Community Participation.—Every educational institution shall provide for the
establishment of appropriate bodies through which the members of the educational
community may discuss relevant issues, and communicate information and suggestions
for assistance and support of the school and for the promotion of their common interest.
Representatives from each subgroup of the educational community shall sit and
participate in these bodies, the rules and procedures of which must be approved by
them and duly published.

Chapter 2

Rights

SEC. 8. Rights of Parents.—In addition to other rights under existing laws, all parents
who have children enrolled in a school shall have the following rights:
1. The right to organize by themselves and/or with teachers for the purpose of providing a forum for the
discussion of matters relating to the total school program, and for ensuring the full cooperation of parents
and teachers in the formulation and efficient implementation of such programs.
2. The right to access to any official record directly relating to the children who are under their parental
responsibility.
SEC. 9. Rights of Students in School.—In addition to other rights, and subject to the
limitations prescribed by law and regulations, students and pupils in all schools shall
enjoy the following rights:
1. The right to receive, primarily through competent instruction, relevant quality education in line with
national goals and conducive to their full development as persons with human dignity.
 2. The right to freely choose their field of study subject to existing curricula and to continue their course
therein up to graduation, except in cases of academic deficiency, or violation of disciplinary regulations.
3. The right to school guidance and counselling services for making decisions and selecting the
alternatives in fields of work suited to his potentialities.
4. The right of access to his own school records, the confidentiality of which the school shall maintain and
preserve.
5. The right to the issuance of official certificates, diplomas, transcript of records, grades, transfer
credentials and other similar documents within thirty days from request.
6. The right to publish a student newspaper and similar publications, as well as the right to invite resource
persons during assemblies, symposia and other activities of similar nature.
7. The right to free expression of opinions and suggestions, and to effective channels of communication
with appropriate academic and administrative bodies of the school or institution.
8. The right to form, establish, join and participate in organizations and societies recognized by the school
to foster their intellectual, cultural, spiritual and physical growth and development, or to form, establish,
join and maintain organizations and societies for purposes not contrary to law.
9. The right to be free from involuntary contributions, except those approved by their own organizations or
societies.
SEC. 10. Rights of all School Personnel.—In addition to other rights provided for by law,
the following rights shall be enjoyed by all school personnel:
1. The right to free expression of opinion and suggestions, and to effective channels of communication with
appropriate academic and administrative bodies of the school or institution.
2. The right to be provided with free legal service by the appropriate government office in the case of public
school personnel, and through the school authorities concerned in the case of private school personnel,
when charged in an administrative, civil and/or criminal proceedings by parties other than the school or
regulatory authorities concerned for actions committed directly in the lawful discharge of professional
duties and/or in defense of school policies.
3. The right to establish, join and maintain labor organizations and/or professional and self-regulating
organizations of their choice to promote their welfare and defend their interests.
4. The right to be free from involuntary contributions except those imposed by their own organizations.
SEC. 11. Special Rights and/or Privileges of Teaching or Academic Staff.—Further to
the rights mentioned in the preceding Section, every member of the teaching or
academic staff shall enjoy the following rights and/or privileges :
1. The right to be free from compulsory assignments not related to their duties as defined in their
appointments or employment contracts, unless compensated therefor, conformably to existing law.
2. The right to intellectual property consistent with applicable laws.
3. Teachers shall be deemed persons in authority when in the discharge of lawful duties and
responsibilities, and shall, therefore, be accorded due respect and protection.
4. Teachers shall be accorded the opportunity to choose alternative career lines either in school
administration, in classroom teaching, or others, for purposes of career advancement.
SEC. 12. Special Rights of School Administrators.—School administrators shall, in
accordance with existing laws, regulations and policies of the Ministry of Education,
Culture and Sports, be accorded sufficient administrative discretion necessary for the
efficient and effective performance of their functions.
School administrators shall be deemed persons in authority while in the discharge of
lawful duties and responsibilities, and shall therefore be accorded due respect and
protection.

SEC. 13. Rights of Schools.—In addition to other rights provided for by law, schools
shall enjoy the following:
1. The right of their governing boards or lawful authorities to provide for the proper governance of the
school and to adopt and enforce administrative or management systems.
2. The right for institutions of higher learning to determine on academic grounds who shall be admitted to
study, who may teach, and what shall be the subjects of the study and research.

Chapter 3

Duties and Obligations

SEC. 14. Duties of Parents.—In addition to those provided for under existing laws, all
parents shall have the following duties and obligations:
1. Parents, individually or collectively, through the school systems, shall help carry out the educational
objectives in accordance with national goals.
2. Parents shall be obliged to enable their children to obtain elementary education and shall strive to
enable them to obtain secondary and higher education in the pursuance of the right formation of the
youth.
3. Parents shall cooperate with the school in the implementation of the school program curricular and co-
curricular
SEC. 15. Duties and Responsibilities of Students.—In addition to those provided for
under existing laws, every student shall:
1. Exert his utmost to develop his potentialities for service, particularly by undergoing an education suited
to his abilities, in order that he may become an asset to his family and to society.
2. Uphold the academic integrity of the school, endeavor to achieve academic excellence and abide by the
rules and regulations governing his academic responsibilities and moral integrity.
 3. Promote and maintain the peace and tranquility of the school by observing the rules of discipline, and by
exerting efforts to attain harmonious relationships with fellow students, the teaching and academic staff
and other school personnel.
4. Participate actively in civic affairs and in the promotion of the general welfare, particularly in the social,
economic and cultural development of his community and in the attainment of a just, compassionate and
orderly society.
5. Exercise his rights responsibly in the knowledge that he is answerable for any infringement or violation of
the public welfare and of the rights of others.
SEC. 16. Teachers' Obligations.—Every teacher shall:
1. Perform his duties to the school by discharging his responsibilities in accordance with the philosophy,
goals and objectives of the school.
2. Be accountable for the efficient and effective attainment of specified learning objectives in pursuance of
national development goals within the limits of available school resources.
3. Render regular reports on performance of each student and to the latter and the latter's parents or
guardians with specific suggestions for improvement.
4. Assume the responsibility to maintain and sustain his professional growth and advancement and
maintain professionalism in his behavior at all times.
5. Refrain from making deductions in students' scholastic ratings for acts that are clearly not manifestations
of poor scholarship.
6. Participate as an agent of constructive social, economic, moral, intellectual, cultural and political change
in his school and the community within the context of national policies.
SEC. 17. School Administrators' Obligations.—Every school administrator shall:
1. Perform his duties to the school by discharging his responsibilities in accordance with the philosophy,
goals and objectives of the school.
2. Be accountable for the efficient and effective administration and management of the school.
3. Develop and maintain a healthy school atmosphere conducive to the promotion and preservation of
academe freedom and effective teaching and learning, and to harmonious and progressive school-
personnel relationship.
4. Assume and maintain professional behavior in his work and in dealing with students, teachers, academic
non-teaching personnel, administrative staff, and parents or guardians.
5. Render adequate reports to teachers, academic non-teaching personnel and non-academic staff on their
actual performance in relation to their expected performance and counsel them on ways of improving the
same.
6. Observe due process, fairness, promptness, privacy, constructiveness and consistency in disciplining his
teachers and other personnel.
7. Maintain adequate records and submit required reports to the Ministry of Education, Culture and Sports.
SEC. 18. Obligations of Academic Non-Teaching Personnel.—Academic non-teaching
personnel shall:
1. Improve himself professionally by keeping abreast of the latest trends and techniques in his profession.
2. Assume, promote and maintain a professional attitude towards his work, students, teachers,
administrators and administrative staff and relate with them in a supportive and cordial manner.
3. Promote and maintain an atmosphere conducive to service and learning.

III—THE EDUCATIONAL SYSTEMS

Chapter 1

Formal Education

SEC. 19. Declaration of Policy.—The State recognizes that formal education, or the
school system, is society's primary learning system, and therefore the main instrument
for the achievement of the country's educational goals and objectives.
SEC. 20. Definition.—"Formal Education" refers to the hierarchically structured and
chronologically graded learnings organized and provided by the formal school system
and for which certification is required in order for the learner to progress through the
grades or move to higher levels. Formal education shall correspond to the following
levels:
1. Elementary Education—the first stage of compulsory, formal education primarily concerned with
providing basic education and usually corresponding to six or seven grades, including pre-school
programs.
2. Secondary Education—the stage of formal education following the elementary level concerned primarily
with continuing basic education and expanding it to include the learning of employable gainful skills,
usually corresponding to four years of high school.
3. Tertiary Education—post-secondary schooling is higher education leading to a degree in a specific
profession or discipline.
SEC. 21. Objectives of Elementary Education.—The objectives of elementary education
are:
1. To provide the knowledge and develop the skills, attitudes, and values essential to personal
development and necessary for living in and contributing to a developing and changing social milieu;
2. To provide learning experiences which increase the child's awareness of and responsiveness to the
changes in and just demands of society and to prepare him for constructive and effective involvement;
3. To promote and intensify the child's knowledge of, identification with, and love for the nation and the
people to which he belongs; and
 4. To promote work experiences which develop the child's orientation to the world of work and creativity
and prepare himself to engage in honest and gainful work.
SEC. 22. Objectives of Secondary Education.—The objectives of secondary education
are:
1. To continue to promote the objectives of elementary education; and
2. To discover and enhance the different aptitudes and interests of the student so as to equip him with skills
for productive endeavor and/or prepare him for tertiary schooling.
SEC. 23. Objectives of Tertiary Education.—The objectives of tertiary education are:

1. To provide a general education program that will promote national identity, cultural consciousness, moral
integrity and spiritual vigor;
2. To train the nation's manpower in the skills required for national development;
3. To develop the professions that will provide leadership for the nation; and
4. To advance knowledge through research work and apply new knowledge for improving the quality of
human life and responding effectively to changing societal needs and conditions.
Chapter 2

Non-formal Education and Specialized Educational Services

SEC. 24. Specialized Educational Service.—The State further recognizes its

responsibility to provide, within the context of the formal education system, services to
meet special needs of certain clientele. These specific types, which shall be guided by
the basic policies of the State embodied in the General Provisions of this Act, include:
1. "Work Education," or "Practical Arts," as a program of basic education which aims to develop the right
attitudes towards work; and "technical-vocational education," post-secondary but non-degree programs
leading to one - two, or three-year certificates in preparation for a group of middle-level occupations.
2. "Special Education," the education of persons who are physically, mentally, emotionally, socially, or
culturally different from the so-called "normal" individuals that they require modification of school
practices/services to develop them to their maximum capacity; and
3. "Non-formal Education," any organized school-based educational activities undertaken by the Ministry of
Education, Culture and Sports and other agencies aimed at attaining specific learning objectives for a
particular clientele, especially the illiterates and the out-of-school youth and adults, distinct from and
outside the regular offerings of the formal school system.
The objectives of non-formal education are as follows:

a. To eradicate illiteracy and raise the level of functional literacy of the population;
b. To provide unemployed and underemployed youth and adults with appropriate vocational/technical skills
to enable them to become more productive and effective citizens; and
c. To develop among the clientele of non-formal education proper values and attitudes necessary for
personal, community and national development.

Chapter 3

Establishment of Schools

SEC. 25. Establishment of Schools.—All schools shall be established in accordance

with law. The establishment of new national schools and the conversion of existing
schools from elementary to national secondary schools or from secondary to national
secondary or tertiary schools shall be by law: Provided, That any private school
proposed to be established must incorporate as a non-stock educational corporation in
accordance with the provisions of the Corporation Code of the Philippines. This
requirement to incorporate may be waived in the case of family-administered pre-school
institutions.
Government assistance to such schools for educational programs shall be used
exclusively for that purpose.

SEC. 26. Definition of Terms.—The terms used in this Chapter are denned as follows:
1. "Schools" are duly established institutions of learning or educational institutions.
2. "Public Schools" are educational institutions established and administered by the government.
3. "Private Schools" are educational institutions maintained and administered by private individuals or
groups.
SEC. 27. Recognition of Schools.—The educational operations of schools shall be
subject to the prior authorization of the government, and shall be effected by
recognition. In the case of government operated schools, whether local, regional, or
national, recognition of educational programs and/or operations shall be deemed
granted simultaneously with establishment.
In all other cases the rules and regulations governing recognition shall be prescribed
and enforced by the Ministry of Education, Culture and Sports defining therein who are
qualified to apply, providing for a permit system, stating the conditions for the grant of
recognition and for its cancellation and withdrawal, and providing for related matters.

SEC. 28. Effects of Recognition; Punishable Violations.— The issuance of a certificate

of recognition to a school shall have the following effects:
1. It transforms the temporary permit to a permanent authority to operate;
2. It entitles the school or college to give the students who have completed the course for which recognition
is granted, a certificate, title or diploma; and
3. It shall entitle the students who have graduated from said recognized course or courses to all the
benefits and privileges enjoyed by graduates in similar courses of studies in all schools recognized by
the government.
Operation of schools and educational programs without authorization, and/or operation
thereof in violation of the terms of recognition, are hereby declared punishable violations
subject to the penalties provided in this Act.

SEC. 29. Voluntary Accreditation.—The Ministry shall encourage programs of voluntary

accreditation for institutions which desire to meet standards of quality over and above
the minimum required for State recognition.
Chapter 4

Internal Organization of School

SEC. 30. Organization of Schools.—Each school shall establish such internal

organization as will best enable it to carry out its academic and administrative functions,
subject to limitations provided by law.
Each school shall establish such arrangements for the peaceful settlement of disputes
between or among the members of the educational community.

SEC. 31. Governing Board.—Every government college or university established as a

tertiary institution and every private school shall have a governing board pursuant to its
charter or to the Corporation Code of the Philippines, as the case may be.
SEC. 32. Personnel Transactions.—The terms and conditions of employment of
personnel in government schools shall be governed by the Civil Service, budgetary and
compensation laws and rules.
In private schools, disputes arising from employer-employee relations shall fall under
the jurisdiction of the Ministry of Labor and Employment as provided for by law and
regulations: Provided, That in view of the special employment status of the teaching and
academic non-teaching personnel, and their special roles in the advancement of
knowledge, standards set or promulgated jointly by the Ministry of Education, Culture
and Sports and by the Ministry of Labor and Employment shall be applied by the
Ministry of Labor and Employment: Provided, further, That every private school shall
establish and implement an appropriate system within the school for the prompt and
orderly settlement of personnel disputes at the school level, subject to the provisions of
Articles 262 and 263 of the Labor Code.
Chapter 5

School Finance and Assistance

SEC. 33. Declaration of Policy.—It is hereby declared to be the policy of the State that
the national government shall contribute to the financial support of educational
programs pursuant to the goals of education as declared in the Constitution. Towards
this end, the government shall:
1. Adopt measures to broaden access to education through financial assistance and other forms of
incentives to schools, teachers, pupils and students; and
2. Encourage and stimulate private support to education through, inter alia, fiscal and other assistance
measures.
A. Funding of Public Schools

SEC. 34. National Funds.—Public schools shall continue to be funded primarily from
national funds: Provided, That local governments shall be encouraged to assume
operation of local public schools on the basis of national fund participation and
adequate revenue sources which may be assigned by the national government for the
purpose.
SEC. 35. Financial Aid and Assistance to Public Secondary Schools.—The national
government shall extend financial aid and assistance to public secondary schools
established and maintained by local governments, including barangay high schools.
SEC. 36. Share of Local Government.—Provinces, cities and municipalities and
barangays shall appropriate funds in their annual budgets for the operation and
maintenance of public secondary schools on the, basis of national fund participation.
SEC. 37. Special Education Fund.—The proceeds of the Special Education Fund
accruing to local governments shall be used exclusively for the purposes enumerated in
Section 1 of Republic Act No. 5447, and in accordance with rules and regulations
issued by the Ministry of Education, Culture and Sports and the Ministry of the Budget.
Said proceeds shall be considered a local fund and shall be subject to Presidential
Decree No. 477, Presidential Decree No. 1375 and other applicable local budget laws
and regulations.
SEC. 38. Tuition and other School Fees.—Secondary and post-secondary schools may
charge tuition and other school fees, in order to improve facilities or to accommodate
more students.
SEC. 39. Income from other Sources.—Government-supported educational institutions
may receive grants, legacies, donations and gifts for purposes allowed by existing laws.
Furthermore, income generated from production activities and from auxiliary enterprises
may be retained and used for schools concerned in accordance with rules and
regulations jointly issued consistently with pertinent appropriation and budgetary laws
by the Ministry of the Budget, the Ministry of Education, Culture and Sports and the
Commission on Audit.

B. Funding Of Private Schools

SEC. 40. Funding of Private Schools.—Private schools may be funded from their capital
investments or equity contributions, tuition fees and other school charges, grants, loans,
subsidies, passive investment income and income from other sources.
SEC. 41. Government Assistance.—The government, in recognition of their
complementary role in the educational system, may provide aid to the programs of
private schools in the form of grants or scholarships, or loans from government financial
institutions: Provided, That such programs meet certain defined educational
requirements and standards and contribute to the attainment of national development
goals.
SEC. 42. Tuition and Other School Fees.—Each private school shall determine its rate
of tuition and other school fees or charges. The rates and charges adopted by schools
pursuant to this provision shall be collectible, and their application or use authorized,
subject to rules and regulations promulgated by the Ministry of Education, Culture and
Sports.
SEC. 43. Income from. Other Sources.—Any private school duly recognized by the
government, may receive any grant and legacy, donation, gift, bequest or devise from
any individual, institution, corporation, foundation, trust or philanthropic organization, or
research institution or organization as may be authorized by law.
Furthermore, private schools are authorized to engage in any auxiliary enterprise to
generate income primarily to finance their educational operations and/or to reduce the
need to increase students' fees.

SEC. 44. Institutional Funds.—The proceeds from tuition fees and other school charges,
as well as other income of schools, shall be treated as institutional funds. Schools may
pool their institutional funds, in whole, or in part, under joint management for the
purpose of generating additional financial resources.
C. Incentives to Education

SEC. 45. Declaration of Policy.—It is the policy of the State in the pursuit of its national
education development goals to provide an incentive program to encourage the
participation of the community in the development of the educational sector.
SEC. 46. Relating to School Property.—Real property, such as lands, buildings and
other improvements thereon used actually, directly and exclusively for educational
purposes shall be subject to the real property tax based on an. assessment of fifteen
percent of the market value of such property: Provided, That all the proceeds from the
payment thereof shall accrue to a special private education ment thereof shall accure to
a special private education fund which shall be managed and disbursed by a local
private school board which shall be constituted in each municipality or chartered city
with private educational institutions with the mayor or his representative as chairman
and not more than two representatives of the institutional taxpayers, and, likewise, not
more than two residents of the municipality or chartered city who are alumni of any of
the institutional taxpayers as members: Provided, further, That fifty percent of the
additional one percent tax on real estate property provided for under Republic Act 5447,
shall accrue to the special private education fund: Provided, finally, That in
municipalities or chartered cities wherein the number of private institutions with
individual enrollment of pupils and students over five thousand exceeds fifteen, the
members of the private school board shall be increased to not more than fourteen
members determined proportionately by the Minister of Education, Culture and Sports.
The private school board shall adopt its own rules which shall enable it to finance the
annual programs and projects of each institutional taxpayer for the following purposes;
student-pupil scholarships; improvement of instructional, including laboratory, facilities
and/or equipment; library books and periodicals acquisition; and extension service in the
community, in that order of priority.
SEC. 47. Relating to Gifts or Donations to Schools.— All gifts or donations in favor of
any school, college or university recognized by the Government shall not be subject to
tax: Provided, That such gifts or donations shall be for improvement of classrooms and
laboratory or library facilities, and shall not inure to the benefit of any officer, director,
official, or owner or owners of the school, or paid out as salary, adjustments or
allowance of any form or nature whatsoever, except in support of faculty and/or
professorial chairs.
SEC. 48. Relating to Earnings from Established Scholarship Funds.—All earnings from
the investment of any duly established scholarship fund of any school recognized by the
government, constituted from gifts to the school, and/ or from contributions or other
resources assigned to said fund by the school, if said earnings are actually used to fund
additional scholarship grants to financially deserving students shall be exempt from tax
until the scholarship fund is fully liquidated, when the outstanding balance thereof shall
be subject to tax.
SEC. 49. School Dispersal Program.—All gains realized from the sale, disposition or
transfer of property, real or personal, of any duly established private school, college or
university, in pursuance of a school dispersal program of the government or of the
educational institution as approved by the government, shall be considered exempt from
tax if the total proceeds of the sale are reinvested in a new or existing duly established
school, college, or university located in the dispersal site, within one (1) year from the
date of such sale, transfer or disposition; otherwise, all taxes due on the gains realized
from the transaction shall immediately become due and payable.
SEC. 50. Conversion to Educational Foundations.—An educational institution may
convert itself into a non-stock, non-profit educational foundation, in accordance with the
implementing rules to be issued jointly by the Ministry of Education, Culture and Sports
and the Ministry of Finance.
In the case of stock corporations, if for any reason its corporate existence as an
educational institution ceases and is not renewed, all its net assets after liquidation of
the liabilities and other obligations may be conveyed and transferred to any non-profit
educational institution or successor non-profit educational institution or to be distributed
by a court to another organization to be used in such manner as in the judgment of said
court will best accomplish the general purposes for which the dissolved organization
was organized, or to the State.

D. Assistance to Students

SEC. 51. Government Assistance to Students.—The government shall provide financial

assistance to financially disadvantaged and deserving students. Such assistance may
be in the form of State scholarships, grants-in-aid, assistance from the Educational
Loan Fund, or subsidized tuition rates in State colleges and universities.
All the above and similar assistance programs shall provide for reserve quotas for
financially needed but academically qualified students from the national cultural
communities.
SEC. 52. Grant of Scholarship Pursuant to Existing Laws.—Educational institutions
shall be encouraged to grant scholarships to students pursuant to the provisions of
existing laws and such scholarship measures as may hereafter be provided for by law.
SEC. 53. Assistance from the Private Sector.—The private sector, especially
educational institutions, business and industry, shall be encouraged to grant financial
assistance to students, especially those undertaking research in the fields of science
and technology or in such projects as may be necessary within the context of national
development.
IV. THE MINISTRY OF EDUCATION, CULTURE AND SPORTS

Chapter 1

General Provisions

SEC. 54. Declaration of Policy.—The administration of the education system and,

pursuant to the provisions of the Constitution, the supervision and regulation of
educational institutions are hereby vested in the Ministry of Education, Culture and
Sports, without prejudice to the provisions of the charter of any state college and
university.
SEC. 55. Organization.—The Ministry shall be headed by the Minister of Education,
Culture and Sports who shall be assisted by one or more Deputy Ministers.
The organization of the Ministry shall consist of (a) the Ministry Proper composed of the
immediate Office of the Minister, and the Services of the Ministry, (b) the Board of
Higher Education, which is hereby established, (c) the Bureau of Elementary Education,
the. Bureau of Secondary Education, the Bureau of Higher Education, the Bureau of
Technical and Vocational Education, and the Bureau of Continuing Education, which
are hereby established, (d) Regional offices and field offices, (e) the National
Scholarship Center and such other agencies as are now or may be established
pursuant to law, and (f) the cultural agencies, namely: the National Library, the National
Historical Institute, the National Museum, and the Institute of National Language. Such
of the above offices as are created or authorized to be established under this provision,
shall be organized and staffed and shall function, subject to the approval of the
President, upon recommendation of the Minister of Education, Culture and Sports in
consultation with the Presidential Commission on Reorganization.

SEC. 56. The National Board of Education is hereby abolished, and its appropriations,
personnel, records, and equipment are hereby transferred to the Office of the Minister of
Education, Culture and Sports.

SEC. 57. Functions and Powers of the Ministry.—The Ministry shall:

1. Formulate general education objectives and policies, and adopt long-range educational plans;
2. Plan, develop and implement programs and projects in education and culture;
3. Promulgate rules and regulations necessary for the administration, supervision and regulation of the
educational system in accordance with declared policy;
4. Set up general objectives for the school system;
5. Coordinate the activities and functions of the school system and the various cultural agencies under it;
6. Coordinate and work with agencies concerned with the educational and cultural development of the
national cultural communities; and
7. Recommend and study legislation proposed for adoption.
SEC. 58. Report to the Batasang Pambansa.—The Minister of Education, Culture and
Sports shall make an annual report to the Batasang Pambansa on the implementation
of the national basic education plan, the current condition of the education sector, the
effectiveness of the education programs, the adequacy or deficiency of the
appropriations and status of expenditures, the impact of education on the different
regions, the growth of enrollment, the adequacy of academic facilities, the concentration
of low income groups, or the supply of teaching and non-teaching personnel, with such
comments and appropriate recommendations thirty (30) days before the opening of its
regular session.

Chapter 2

Board of Higher Education

SEC. 59. Declaration of Policy.—Higher education will be geared towards the provision
of better quality education, the development of middle and high-level manpower, and
the intensification of research and extension services. The main thrust of higher
education is to achieve equity, efficiency, and high quality in the institutions of higher
learning both public and private, so that together they will provide a complete set of
program offerings that meet both national and regional development needs.
SEC. 60. Organization of the Board of Higher Education. —The Board of Higher
Education is reconstituted as an advisory body to the Minister of Education, Culture and
Sports. The Board shall be composed of a Deputy Minister of Education, Culture and
Sports designated as Chairman and four other members to be appointed by the
President of the Philippines upon nomination by the Minister of Education, Culture and
Sports for a term of four years. The four members shall have distinguished themselves
in the field of higher education and development either in the public or private sector. In
the initial appointment of the non-ex officio members, the first appointee shall serve for
a term of four years; the second for a term of three years; the third for a term of two
years, and the fourth for a term of one year. The Director of the Bureau of Higher
Education shall participate in the deliberation of the Board but without the right to vote.
The Bureau of Higher Education shall provide the Board with the necessary technical
and staff support: Provided, That the Board may create technical panels of experts in
the various disciplines as the need arises.
SEC. 61. Functions of the Board of Higher Education.— The Board shall:
1. Make policy recommendations regarding the planning and management of the integrated system of
higher education and the continuing evaluation thereof.
2. Recommend to the Minister of Education, Culture and Sports steps to improve the governance of the,
various components of the higher education system at national and regional levels.
3. Assist the Minister of Education, Culture and Sports in making recommendations relative to the
generation of resources and their allocation for higher education.

Chapter 3

The Bureaus

SEC. 62. Bureau of Elementary Education.— The Bureau shall perform the following
functions:
1. Conduct studies and formulate, develop, and evaluate programs and educational standards for
elementary education;
2. Undertake studies necessary for the preparation of prototype curricular designs, instructional materials,
and teacher training programs for elementary education; and
3. Formulate guidelines to improve elementary school physical plants and equipment, and general
management of these schools.
SEC. 63. Bureau of Secondary Education.—The, Bureau shall perform the following
functions:
1. Conduct studies and formulate, develop and evaluate programs and educational standards for
secondary education;
2. Develop curricular designs, prepare instructional materials, and prepare and evaluate programs to
upgrade the quality of the teaching and non-teaching staff at the secondary level;
3. Formulate guidelines to improve the secondary school physical plants and equipment, and general
management of these schools.
SEC. 64. Bureau of Technical mid Vocational Education. — The Bureau shall perform
the following:
1. Collaborate with other agencies in the formulation of manpower plans;
2. Conduct studies, formulate, develop and evaluate post-secondary vocational-technical programs and
recommend educational standards for these programs;
3. Develop curricular designs and prepare instructional materials, prepare and evaluate programs to
upgrade the quality of teaching and non-teaching staff, and formulate guidelines to improve the physical
plant and equipment of post-secondary vocational-technical schools.
SEC. 65. Bureau of Higher Education. — The Bureau of Higher Education shall perform
the following functions:
1. Develop, formulate and evaluate programs, projects and educational standards for a higher education;
2. Provide staff assistance to the Board of Higher Education in its policy formulation and advisory functions;
3. Provide technical assistance to encourage institutional development programs and projects;
4. Compile analyze and evaluate data on higher education; and
5. Perform other functions provided for by law.
SEC. 66. Bureau of Continuing Education.—As the main implementing arm of the non-
formal education programs of the Ministry, the Bureau shall provide learning programs
or activities that shall:
1. Serve as a means of meeting the learning needs of those unable to avail themselves of the educational
services and programs of formal education;
 2. Provide opportunities for the acquisition of skills necessary to enhance and ensure continuing
employability, efficiency, productivity, and competitiveness in the labor market;
3. Serve as a means for expanding access to educational opportunities to citizens of varied interests,
demographic characteristics and socio-economic origins or status.

Chapter 4

Regional Offices

SEC. 67. Functions.—A regional office shall:

1. Formulate the regional plan of education based on the national plan of the Ministry taking into account
the specific needs and special traditions of the region;
2. Implement education laws, policies, plans, programs, rules and regulations of the Ministry or agency in
the regional area;
3. Provide economical, efficient and effective education services to the people in the area.

V. MISCELLANEOUS PROVISIONS

Chapter 1

Penal and Administrative Sanctions

SEC. 68. Penalty Clause.—Any person upon conviction for an act in violation of Section
28, Chapter 3, Title. III above, shall be punished with a fine of not less than two
thousand pesos (P2,000.00) nor more than ten thousand pesos (P10,000.00) or
imprisonment for a maximum period of two (2) years, or both, in the discretion of the
court.

If the act is committed by a school corporation, the school head together with the person
or persons responsible for the offense or violation shall be equally liable.

SEC. 69. Administrative Sanction.—The Minister of Education, Culture and Sports may
prescribe and impose such administrative sanction as he may deem reasonable and
appropriate in the implementing rules and regulations promulgated pursuant to this Act
for any of the following causes:
1. Mismanagement of school operations;
2. Gross inefficiency of the teaching or non-teaching personnel;
3. Fraud or deceit committed in connection with the application for Ministry permit or recognition;
4. Failure to comply with conditions or obligations prescribed by this Code or its implementing rules and
regulations; and
5. Unauthorized operation of a school, or course, or any component thereof, or any violation of the
requirement governing advertisements or announcements of educational institutions.
Sanctions against the schools shall be without prejudice to the interest of the students,
teachers and employees.

Chapter 2

Administrative Provisions

SEC. 70. Rule-making Authority.—The Minister of Education, Culture and Sports

charged with the administration and enforcement of this Act, shall promulgate the
necessary implementing rules and regulations.
SEC. 71. Separability Provision.— Any part or provision of this Act which may be held
invalid or unconstitutional shall not affect its remaining parts or provisions.
SEC. 72. Repealing Clause.— All laws or parts thereof inconsistent with any provision
of this Act shall be deemed repealed or modified, as the case may be.
SEC. 73. Effectivity.— This Act shall take effect upon its approval.