NINETEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES
Third Regular Session
SENATE 
S. B. No.2731
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24 JUL 15 P3 54
KtCtiv/tO C'i.
Introduced by Senators SONNY ANGARA and WIN GATCHALIAN
AN ACT
FURTHER STRENGTHENING THE INCENTIVES FOR PRIVATE SECTOR 
PARTICIPATION IN PUBLIC EDUCATIONAL INSTITUTIONS BY AMENDING 
CERTAIN PROVISIONS IN REPUBLIC ACT NO. 8525 OTHERWISE KNOWN 
AS THE "ADOPT-A-SCHOOL ACT OF 1998"
A perennial problem that has been identified across our education system is the lack 
of linkages between our educational institutions and our industries. One example of 
this is the persistent resistance of the private sector to hire learners who have 
completed Senior High School (SHS) despite the promise of the K to 12 basic 
education program to graduate individuals with adequate work-skills and 
competencies to land a job.
A 2018 survey conducted by JobStreet on fresh graduates even found that only 24 
percent of employers—nearly 1 out of 4-were ready to hire the first batch of K to 12 
graduates1. Furthermore, the same survey found that 35 percent of employers were 
not ready to hire SHS graduates, while 41 percent were still undecided. Such tepid 
reception undergirds the results of a June 2023 Pulse Asia Survey,2 which showed 
that 4 out of 10 respondents were dissatisfied with the SHS program.
Hence, this new "Adopt-A-School Act" which amends Republic Act No. 8525 or the 
"Adopt-a-School Act of 1998", is proposed in response to this issue. Aimed at 
strengthening linkages between educational institutions and industry stakeholders, 
the proposed measure alms to improve on the existing "Adopt-A-School" program in 
several ways.
First is by expanding the menu of assistance that the private sector can extend to 
public educational institutions to include the following: training, development and
https://www.philstar.com/headlines/2018/04/21/1807909/private-sector-urged-hire-k-12-graduates/amp/
>
Commissioned by Senator Shenwin Gatchalian


further education for school heads, teachers including daycare workers and teachers, 
TVET trainers, faculty and learners; assessments in pursuit of relevant work-related 
certifications and credentials; scholarships for teachers; real estate property; 
construction of school facilities such as libraries and laboratories as well as those 
related to power, water, and sanitation; repair of existing school facilities; provision 
of school supplies, and other educational materials such as electronic books (e- 
books), educational films and audio-visual materials; technical vocational livelihood 
(TVL) tools and equipment; health and nutrition packages; and assistive learning 
devices and equipment for learners with special needs.
Second is the provision of additional incentives to adopting individuals or entities to 
include an additional deduction amounting to 50 percent of labor training expenses 
incurred for scholarships for teachers and the skills development of enterprise-based 
trainees as provided for under Republic Act No. 11534 also known as the "Corporate 
Recovery and Tax Incentives for Enterprises Act" or "CREATE" and an additional 
deduction amounting to 20 percent of the salaries paid to the SHS graduates they 
employ. Donations made to public educational institutions under the Adopt-A-School 
Program shall also be exempted from customs duties, value-added tax, excise tax, 
donor's tax, and other fees.
Third, to ensure adequate coordination with the reievant industry stakeholders, the 
membership of the "Adopt-A-School" Coordinating Council is expanded to include the 
secretaries of the Department of Trade and Industry (DTI) and the Department of 
Labor and Employment (DOLE), the Commissioner of the Bureau of Internal 
Revenue (BIR), and a representative from a reputable business group.
In filing this measure, it is our earnest hope that the private sector be further 
enticed to forge linkages with our public educational institutions. It is important to 
note that the original Republic Act No. 8525 or the "Adopt-A-School Act of 1998" 
was enacted in 1998, several years before the K to 12 program was established 
under Republic Act No. 10533 also known as the "Enhanced Basic Education Act of 
2013". In that sense, the proposed measure aims to update the existing Adopt-A- 
School program. Given the serious crisis our education system is facing, we call for 
the swift passage of this proposed measure.
ftcf
SONNY ANGARA
V^NrGATCHALIAN


NINETEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES
Third Regular Session
SENATE
S. B. No. 2731
■ (K
'Feb.'S'- 
of
24 JUL 15 P4 ;07
Ri:C£iV!:D 3V.
Introduced by Senators SONNY ANGARA and WIN GATCHALIAN
AN ACT
FURTHER STRENGTHENING THE INCENTIVES FOR PRIVATE SECTOR 
PARTICIPATION IN PUBLIC EDUCATIONAL INSTITUTIONS BY AMENDING 
CERTAIN PROVISIONS IN REPUBLIC ACT NO. 8525 OTHERWISE KNOWN AS 
THE "ADOPT-A-SCHOOL ACT OF 1998"
Be it enacted by the Senate and House of Representatives of the Philippines in 
Congress assembled:
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SECTION 1. Section 1 of Republic Act No. 8525, otherwise known as the
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"Adopt-a-School Act of 1998", is hereby amended to read as follows:
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"Section 1. Title. -This Act shall be known and cited as the ["Adopt a-
4 
School Act of 1998".] "ADOPT-A-SCHOOL ACT OF 2024".
5 
SEC. 2. Section 2 of Republic Act No. 8525 is hereby amended to read as
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follows:
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"Section 2. Declaration of policy. - It is the policy of the State to provide
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quality and relevant education to the Filipino youth and to encourage private
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initiative to support public education. Towards this end, the State shall institute
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programs to [eneourage] INCENTIVIZE THE private [companies and
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enterprises] SECTOR to [help] ASSIST in the DEVELOPMENT^ upgrading,
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and modernization of THE COUNTRY'S public [schools] EDUCATION
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SYSTEM [irv-the country-,-pafticularly those ■ in- poverty stricken provinces.]
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AND ESTABLISH PROPER LINKAGES BETWEEN EDUCATIONAL
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INSTITUTIONS AND THEIR RESPECTIVE INDUSTRIES


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PARTICULARLY IN THE TRAINING AND EMPLOYMENT OF SENIOR
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HIGH SCHOOL (SHS) GRADUATES."
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SEC. 3. Section 3 of Republic Act No. 8525 is hereby amended to read as
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follows:
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"Sec. 3. Adopt-a-School Program. - There is hereby established the
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"Adopt-a-School Program" which will allow private INDIVIDUALS OR entities,
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WHETHER LOCAL OR FOREIGN, OF GOOD STANDING to assist [a] public
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[seheef] EDUCATIONAL INSTITUTIONS, whether EARLY CHILDHOOD,
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elementary, secondary, TECHNICAL-VOCATIONAL, ALTERNATIVE
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LEARNING SYSTEM (ALS), or [tertiary] HIGHER EDUCATION, preferably
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located in [any of the twenty (20) poorest provinces identified by the
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Presidential Council for Countryside Development or any other government
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agency tasked with identifying the poorest provinces] THE 4TH AND 5TH
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CLASS PROVINCES, CITIES, AND MUNICIPALITIES AS DETERMINED
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BY THE DEPARTMENT OF FINANCE (DOF) AND OTHER LOCAL
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GOVERNMENT UNITS (LGUs) EXPERIENCING SEVERE SHORTAGES,
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INSUFFICIENT BUDGET OR HAVING NUMEROUS POOR BUT HIGH
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PERFORMING LEARNERS in, but not limited to, the following areas:
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TRAINING, DEVELOPMENT AND FURTHER EDUCATION FOR SCHOOL
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HEADS, TEACHERS INCLUDING DAYCARE WORKERS AND TEACHERS,
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TVET TRAINERS, FACULTY AND LEARNERS; ASSESSMENTS IN
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PURSUIT OF RELEVANT WORK-RELATED CERTIFICATIONS AND
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CREDENTIALS; SCHOLARSHIPS FOR TEACHERS; REAL ESTATE
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PROPERTY [staff and faculty development for training and further education];
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construction of SCHOOL facilities SUCH AS LIBRARIES AND
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LABORATORIES AND THOSE RELATED TO POWER, WATER, AND
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SANITATION; [upgrading] UPGRADE AND REPAIR of existing facilities,
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provision of books, publications, SCHOOL SUPPLIES, and other instructional
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materials SUCH AS ELECTRONIC BOOKS (E-BOOKS), COMPUTERS,
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FURNITURE, EDUCATIONAL FILMS AND AUDIO-VISUAL MATERIALS;
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TECHNICAL VOCATIONAL LIVELIHOOD (TVL) TOOLS AND
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EQUIPMENT; HEALTH AND NUTRITION PACKAGES; ASSISTIVE


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LEARNING DEVICES AND EQUIPMENT FOR LEARNERS WITH SPECIAL
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NEEDS; and modernization of instructional technologies.
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A Memorandum of Agreement (MOA) specifying the details of the
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adoption shall be entered into between the adopting INDIVIDUAL OR entity
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and the head of the [seheet] EDUCATIONAL INSTITUTION CONCERNED
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concerned: Provided, That such MOA shall be subject to review and approval
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of the [Superintendent of Schools of the province er-district concerned]
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CONCERNED FIELD OFFICE OF THE EDUCATIONAL INSTITUTION:
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Provided, further, That the agreement shall last for at least two (2) years with
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the possibility of extension: Provided, finally. That such period may be
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shortened only in cases where the adopting INDIVIDUAL OR entity is
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dissolved before the end of such period unless otherwise earlier terminated in
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accordance with [the-succcxDding section] THIS ACT."
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SEC. 4. Insert a new Section under Republic Act No. 8525 to read as follows,
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and renumber the succeeding sections accordingly:
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"SEC. 4. CREATION AND ESTABLISHMENT OF AN ADOPT-A-
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SCHOOL ONE-STOP SHOP. - THE CENTRAL OFFICES OF THE
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DEPARTMENT OF EDUCATION (DEPED), COMMISSION ON HIGHER
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EDUCATION (CHED), AND TECHNICAL EDUCATION AND SKILLS
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DEVELOPMENT AUTHORITY (TESDA) AS WELL AS ITS RESPECTIVE
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REGIONAL OFFICES SHALL BE MANDATED TO ESTABLISH AND
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MAINTAIN AN ADOPT-A-SCHOOL ONE-STOP SHOP WHICH SHALL
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SERVE AS A LOCATION TO ADDRESS QUERIES AND CONCERNS FROM
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PRIVATE INDIVIDUALS AND ENTITIES INTERESTED IN THE
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PROGRAM, AND TO RECEIVE AND PROCESS APPLICATIONS JOINTLY
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WITH BIR AND BOC: PROVIDED, THAT DEPED, CHED AND TESDA
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SHALL, IN CONSULTATION WITH THE DEPARTMENT OF
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INFORMATION AND COMMUNICATIONS TECHNOLOGY (DICT),
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ESTABLISH AN INTEGRATED ONLINE PORTAL TO RECEIVE AND
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PROCESS APPLICATIONS."
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SEC. 5. Section 4 of Republic Act No. 8525 is hereby amended to read as
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follows:


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"Section [4] 5. Periodic review. - A review of the adoption shall be
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undertaken by the [local school board of the province or city where^the school]
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CONCERNED FIELD OFFICE WHERE THE PARTICIPATING SCHOOL is
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located. The standards and guidelines for the review shall be formulated by the
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ADOPT-A-SCHOOL Coordinating Council created under Sec. [^] 8 hereof.
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The results of the review shall be taken into consideration in the assessment of
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the application for tax credits by the adopting INDIVIDUAL OR entity. The
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[school board] CONCERNED FIELD OFFICE may, after an appropriate
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review, recommend to the ADOPT-A-SCHOOL Coordinating Council the
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termination of the adoption. The adopting INDIVIDUAL OR entity may appeal
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the assessment to the ADOPT-A-SCHOOL Coordinating Council whose
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decision shall be final and unappealable."
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SEC. 6. Section 5 and 6 of Republic Act No. 8525 are hereby repealed and
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replaced with a new Section to be read as follows:
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"SEC. 6. INCENTIVES FOR ADOPTING INDIVIDUALS OR
16 
ENTITIES. - PROVISIONS OF EXISTING LAWS TO THE CONTRARY
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NOTWITHSTANDING, ADOPTING INDIVIDUALS OR ENTITIES SHALL
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ENJOY THE FOLLOWING INCENTIVES:
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a) ADDITIONAL DEDUCTION FOR EXPENSES INCURRED FOR THE
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ADOPTION - EXPENSES INCURRED BY THE ADOPTING
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INDIVIDUALS OR ENTITIES FOR THE 
"ADOPT-A-SCHOOL
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PROGRAM" SHALL BE ALLOWED AN ADDITIONAL DEDUCTION
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FROM THE GROSS INCOME EQUIVALENT TO FIFTY PERCENT
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(50%) OF SUCH EXPENSES.
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THIS SHALL INCLUDE SCHOLARSHIPS FOR TEACHERS
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AND LABOR TRAINING EXPENSES INCURRED FOR SKILLS
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DEVELOPMENT OF ENTERPRISE-BASED TRAINEES ENROLLED
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IN PUBLIC SENIOR HIGH SCHOOLS, 
PUBLIC HIGHER
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EDUCATION INSTITUTIONS, OR PUBLIC TECHNICAL AND
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VOCATIONAL INSTITUTIONS AND DULY 
COVERED BY AN
31 
APPRENTICESHIP AGREEMENT UNDER PRESIDENTIAL DECREE
32 
NO. 442, SERIES OF 1974, OR THE 'LABOR CODE OF THE


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and
PHILIPPINES’, AS AMENDED: PROVIDED, FURTHER, THAT FOR 
THE ADDITIONAL DEDUCTION FOR ENTERPRISE-BASED 
TRAINING OF STUDENTS FROM PUBLIC EDUCATIONAL 
INSTITUTIONS, THE ENTERPRISE SHALL SECURE PROPER 
CERTIFICATION FROM THE DEPED, TESDA, OR CHED: 
PROVIDED, FINALLY, THAT SUCH DEDUCTION SHALL NOT 
EXCEED TEN PERCENT (10%) OF DIRECT LABOR WAGE.
VALUATION OF ASSISTANCE OTHER THAN MONEY SHALL 
BE BASED ON THE ACQUISITION COST OF THE GOODS, 
SERVICES AND REAL PROPERTY. SUCH VALUATION SHALL 
TAKE INTO CONSIDERATION THE DEPRECIATED VALUE OF THE 
GOODS AND REAL PROPERTY IN CASE SAID GOODS AND REAL 
PROPERTY HAS ALREADY BEEN USED.
b) ADDITIONAL DEDUCTION FOR HIRING OF PUBLIC SENIOR 
HIGH SCHOOL (SHS) GRADUATES - ADOPTING INDIVIDUALS 
OR ENTITIES WHO HIRE SENIOR HIGH SCHOOL (SHS) 
GRADUATES FROM THEIR PARTNER PUBLIC SCHOOL SHALL 
ENJOY AN ADDITIONAL DEDUCTION EQUIVALENT TO 20% OF 
THE SALARIES, WAGES, AND BENEFITS PAID TO THE 
EMPLOYED SHS GRADUATE.
c) ADDITIONAL INCENTIVES - IN ACCORDANCE WITH EXISTING 
LAWS AND SUBJECT TO THE GUIDELINES THAT SHALL BE 
PROVIDED IN THE IRR, THE ADOPTING INDIVIDUAL OR 
ENTITY SHALL BE ENTITLED TO HAVE ITS NAME EMBLAZONED 
BENEATH THE NAME OF THE SCHOOL AFTER WORDS 
INDICATING THAT THE SCHOOL IS UNDER THE "ADOPT-A- 
SCHOOL PROGRAM.""
SEC. 7. Insert a new Section under Republic Act No. 8525 to read as follows, 
renumber the succeeding sections accordingly:
"SEC. 7. EXEMPTION FROM IMPORT DUTIES, TAXES AND 
OTHER FEES. - THE DONATED GOODS, REAL PROPERTY, AND 
SERVICES BY AN ADOPTING INDIVIDUAL OR ENTITY SHALL BE


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EXEMPT FROM CUSTOMS DUTIES, VALUE-ADDED TAX, EXCISE TAX, 
DONOR'S TAX, AND OTHER FEES: PROVIDED, THAT THE DONATIONS 
SHALL NOT BE RESOLD OR TRANSFERRED FOR MATERIAL 
CONSIDERATION."
SEC. 8. Section 7 or Republic Act No. 8525 is hereby amended to read as
follows:
"Section [7]. ADOPT-A-SCHOOL Coordinating Council. - A ADOPT- 
A-SCHOOL Coordinating Council, hereinafter referred to as the Council, is 
hereby created to coordinate and monitor the implementation of this Act. The 
Council shall be composed of the Secretary of [the Deportment of Education, 
Culture and Sports (DECS)] DEPED, as chairperson; the Chairman of [the 
Commission on Higher Educotion (CHED)] CHED and the Director-General of 
[the Technical-Education and Skills Development Authority (TESDA)] TESDA, 
as co-chairpersons; THE SECRETARY OF THE DEPARTMENT OF TRADE 
AND INDUSTRY (DTI); THE SECRETARY OF THE DEPARTMENT OF 
LABOR AND EMPLOYMENT (DOLE); THE COMMISSIONER OF THE 
BUREAU OF INTERNAL REVENUE (BIR) and [the chairperson of the 
Presidential—CeufTcil—for—Countryside—Development—(PCCD),—af>d] a
representative, WHO SHALL HAVE A TERM OF THREE (3) YEARS AND 
MAY BE REAPPOINTED FOR ANOTHER THREE (3) YEARS, from a 
[notional-federation of chambers of commerce and industry] REPUTABLE 
BUSINESS GROUP to be appointed by the President of the Philippines, as 
members."
THE SECRETARIES OF DEPED, DTI AND DOLE, THE CHAIRMAN 
OF CHED, THE DIRECTOR-GENERAL OF TESDA, AND THE 
COMMISSIONER OF BIR MAY DESIGNATE THEIR RESPECTIVE 
ALTERNATES WITH RANKS NOT LOWER THAN ASSISTANT 
SECRETARY OR ITS EQUIVALENT. ALL ALTERNATES SHALL BE 
AUTHORIZED TO DECIDE FOR OR ON BEHALF OF THEIR RESPECTIVE 
PRINCIPALS.


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The Council shall meet once every three (3) months. The chairpersons
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and members shall not receive compensation but shall be entitled to
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reimbursements for reasonable expenses related to the Council's activities.
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The DEPED [DECS], CHED, [affd] TESDA, DTI, DOLE through a mutual
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agreement, AND IN COORDINATION WITH DBM, shall 
each make
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provisions for the secretariat of the Council.
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THE COUNCIL SHALL COORDINATE WITH NATIONAL
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GOVERNMENT AGENCIES (NGAS) AND EXISTING 
COUNCILS
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RELEVANT TO THE IMPLEMENTATION OF THE PROVISIONS OF THIS
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ACT."
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SEC. 9. Implementing Rules and Regulations. - Within sixty (60) days from the
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effectivity of this Act, the DepEd, CHED, TESDA, DTI and DOLE, in consultation with
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the DOF, including the BIR, and the Bureau of Customs (BOC), as well as with the
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participation of the ECCD Council Secretariat, shall formulate the implementing rules
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and regulations to implement this Act.
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SEC. 10. Transitory Clause. - To prevent any delay in the delivery of goods,
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services, and real property, the provisions or Republic Act No. 8525 also known as the
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"Adopt-a-School Act of 1998" shall still apply to pending and on-going transactions
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and/or donations by adopting individuals or entities.
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SEC. 11. Separability Clause. - If any portion or provision of this Act is declared
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unconstitutional, the remainder of this Act or any provision not affected thereby shall
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remain in full force and effect.
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SEC. 12. Repealing Clause. - All other laws, acts, presidential decrees,
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executive orders, presidential proclamations, issuances, rules and regulations or parts
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thereof which are contrary to or inconsistent with any of the provisions of this Act are
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hereby repealed, amended, or modified accordingly.
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SEC. 13. Effectivity. - This Act shall take effect fifteen (15) days after its
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publication in the Official Gazette or in a newspaper of general circulation.
Approved,