REPUBLIC ACT NO. 7798
.
.
AN ACT AMENDING SECTION 25 OF BATAS PAMBANSA BLG. 232, OTHERWISE KNOWN AS THE "EDUCATION ACT OF 1982"
SECTION 1. Section 25, Chapter 3 of the Education Act of 1982 is hereby amended to read as follows:chan robles virtual law library
"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 either a non-stock or a 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.
"Provided, That the minimum paid-up capital for stock educational institutions for those engaged in elementary education shall not be less than One million pesos (P1,000,000.00); not less than Two million five hundred thousand pesos (P2,500,000.00) for those offering both elementary and secondary education; and not less than Five million pesos (P5,000,000.00) for those offering elementary, secondary and tertiary and postgraduate courses, except existing educational institutions organized as stock corporations which may retain their original capitalization.chan robles virtual law library
"Existing educational institutions organized as stock corporations may automatically apply for renewal of their corporate existence when the original period is about to expire.
"Provided, finally, That stock educational institutions may be allowed only in capital-intensive courses of study as may be determined by the Department of Education, Culture and Sports, the Commission on Higher Education, and the Department of Science and Technology, as the case may be.
"Any school that is established or organized as a stock corporation shall be ineligible for any form of government subsidy, incentive or assistance, except those given to individual students and teachers in the form of scholarships, student loans or other forms of subsidy as already mandated under existing laws.Government assistance to non-stock schools for educational programs shall be used exclusively for that purpose. chan robles virtual law library
"Taxes shall not be due on donations to educational corporations."
Sec. 2. The Department of Education, Culture and Sports and the Commission on Higher Education, as the case may be, are hereby authorized to formulate within sixty (60) days from the approval of this Act implementing rules and guidelines governing the establishment and operation of stock educational corporations that may be organized pursuant to this Act with particular emphasis on meeting the objectives of quality education and academic excellence provided for by the provisions of Batas Pambansa Blg. 232, otherwise known as the Education Act of 1982.
Sec. 3. All laws, rules and ordinances inconsistent with this Act are hereby repealed or modified accordingly.
Sec. 4. This Act shall take effect fifteen (15) days after its publication in at least two (2) national newspapers of general circulation.
Approved: August 25, 1994
http://www.chanrobles.com/republicactno7798.htm
Friday, January 20, 2012
GOVERNMENT ASSISTANCE TO STUDENTS... Batas Pambansa 232
D. ASSISTANCE TO STUDENTS
Section 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.
Section 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.
Section 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.
http://www.lawphil.net/statutes/bataspam/bp1982/bp_232_1982.html
Section 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.
Section 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.
Section 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.
http://www.lawphil.net/statutes/bataspam/bp1982/bp_232_1982.html
INCENTIVES TO EDUCATION.... Batas Pambansa 232
C. INCENTIVES TO EDUCATION
Section 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.
Section 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 per cent of the market value of such property: Provided, That all the proceeds from the payment thereof shall accrue 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.
Section 47. Relating to Gifts or Donations to Schools - All gifts or donation 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 of 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.
Section 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.
Section 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.
Section 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 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.
http://www.lawphil.net/statutes/bataspam/bp1982/bp_232_1982.html
Section 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.
Section 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 per cent of the market value of such property: Provided, That all the proceeds from the payment thereof shall accrue 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.
Section 47. Relating to Gifts or Donations to Schools - All gifts or donation 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 of 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.
Section 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.
Section 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.
Section 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 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.
http://www.lawphil.net/statutes/bataspam/bp1982/bp_232_1982.html
FUNDING OF PRIVATE SCHOOLS.... Batas Pambansa 232
B. FUNDING OF PRIVATE SCHOOLS
Section 40. Funding of Private Schools - Private schools may be funded from their capital investment or equity contributions, tuition fees and other school charges, grants, loans, subsidies, passive investment income and income from other sources.
Section 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.
Section 42. Tuition and Other 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.
Section 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 of 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.
Section 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.
http://www.lawphil.net/statutes/bataspam/bp1982/bp_232_1982.html
Section 40. Funding of Private Schools - Private schools may be funded from their capital investment or equity contributions, tuition fees and other school charges, grants, loans, subsidies, passive investment income and income from other sources.
Section 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.
Section 42. Tuition and Other 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.
Section 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 of 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.
Section 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.
http://www.lawphil.net/statutes/bataspam/bp1982/bp_232_1982.html
FUNDING OF REPUBLIC SCHOOLS... Batas Pambansa 232
CHAPTER 5
School Finance and Assistance
Section 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 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 REPUBLIC SCHOOLS
Section 34. National Funds - Public school shall continue to be funded 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.
Section 35. Financial Aid 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.
Section 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.
Section 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 Decrees No. 477, Presidential Decree No. 1375 and other applicable local budget laws and regulations.
Section 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.
Section 39. Income from other Sources - Government-supported educational institution 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.
http://www.lawphil.net/statutes/bataspam/bp1982/bp_232_1982.html
School Finance and Assistance
Section 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 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 REPUBLIC SCHOOLS
Section 34. National Funds - Public school shall continue to be funded 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.
Section 35. Financial Aid 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.
Section 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.
Section 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 Decrees No. 477, Presidential Decree No. 1375 and other applicable local budget laws and regulations.
Section 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.
Section 39. Income from other Sources - Government-supported educational institution 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.
http://www.lawphil.net/statutes/bataspam/bp1982/bp_232_1982.html
Internal Organization of Schools... Batas Pambansa 232
CHAPTER 4
Internal Organization of Schools
Section 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 establish such arrangements for the peaceful settlement of disputes between or among the members of the educational community.
Section 31. Governing Board - Every government college or university as a tertiary institution and every private school shall have a governing board pursuant to its charter or the Corporation Code of the Philippines, as the case may be.
Section 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, dispute arising from employer-employee relations shall fall under the jurisdiction of the Ministry of Labor and Employment as provided for by law 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 provisions of Articles 262 and 263 of the Labor Code.
http://www.lawphil.net/statutes/bataspam/bp1982/bp_232_1982.html
Internal Organization of Schools
Section 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 establish such arrangements for the peaceful settlement of disputes between or among the members of the educational community.
Section 31. Governing Board - Every government college or university as a tertiary institution and every private school shall have a governing board pursuant to its charter or the Corporation Code of the Philippines, as the case may be.
Section 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, dispute arising from employer-employee relations shall fall under the jurisdiction of the Ministry of Labor and Employment as provided for by law 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 provisions of Articles 262 and 263 of the Labor Code.
http://www.lawphil.net/statutes/bataspam/bp1982/bp_232_1982.html
Establishment of Schools... Batas Pambansa 232
CHAPTER 3
Establishment of Schools
Section 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 or tertiary schools shall be by law: Provided, That any private school proposed to be established must incorporate as an 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.
Section 26. Definition of Terms - The terms used in this Chapter are defined 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.
Section 27. Recognition of Schools - The educational operations of schools shall be subject to their prior authorization of the government, and shall be affected 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 case 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.
Section 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 entitled 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.
Section 29. Voluntary Accreditation - The Ministry shall encourage programs of voluntary accreditation for institution which desire to meet standards of quality over and above minimum required for State recognition.
http://www.lawphil.net/statutes/bataspam/bp1982/bp_232_1982.html
Establishment of Schools
Section 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 or tertiary schools shall be by law: Provided, That any private school proposed to be established must incorporate as an 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.
Section 26. Definition of Terms - The terms used in this Chapter are defined 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.
Section 27. Recognition of Schools - The educational operations of schools shall be subject to their prior authorization of the government, and shall be affected 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 case 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.
Section 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 entitled 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.
Section 29. Voluntary Accreditation - The Ministry shall encourage programs of voluntary accreditation for institution which desire to meet standards of quality over and above minimum required for State recognition.
http://www.lawphil.net/statutes/bataspam/bp1982/bp_232_1982.html
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