■ I'. ■
NINETEENTH CONGRESS OF THE 
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REPUBLIC OF THE PHILIPPINES 
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Third Regular Session 
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. crfu-p
24 SEP-3 ?7:38
SENATE 
s. No. 2Pi03
KB:.LL
Introduced by Senator Loren B. Legarda
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"
EXPLANATORY NOTE
One of the most pressing issues in our education system is the persistent 
disconnect between our educational institutions and the industries that should be 
employing our graduates.
The Philippine Business for Education (PBEd) revealed that while four out of 
five firms are now open to hiring senior high school graduates—an improvement from 
the 2018 survey where only three out of five were willing—there's still a long way to 
go. Nearly half of these firms said they had positions available for K to 12 graduates, 
but these roles are predominantly entry-level jobs in the service sector or 
administrative positions that fresh college graduates are already competing for. PBEd 
pointed out that the industry still "generally prefers" college degree holders. For 
example, in 2024, employers expect that 73%, or 12,544 of the 17,273 entry-level 
jobs, will be filled by college graduates, leaving less than a quarter for senior high 
school finishers. Furthermore, most businesses (62%) remain uncertain about hiring 
more K to 12 graduates in the next two years.1
1 Chi, C. (2024, July 15). More firms open to hiring K-12 grads, but most still prefer college degree- 
holders. Philstar.com. https://www.philstar.eom/headlines/2024/07/15/2370370/more-firms-open- 
hiring-k-12-grads-most-still-prefer-college-degree-holders


To help address this issue, the new "Adopt-a-School Act," amending Republic 
Act No. 8525, is proposed to fortify the partnerships between our educational 
institutions and industry stakeholders.
First, the bill broadens the scope of support that the private sector can extend 
to public educational institutions, including training and further education for school 
heads, teachers, and learners, as well as support for certifications, scholarships, and 
the construction and repair of school facilities. Additionally, it includes the provision of 
essential educational materials, technical vocational tools, and assistive devices for 
learners with special needs.
Second, the proposed measure addresses a critical issue identified by the 
Second Congressional Commission on Education (EDCOM2). As reported by the 
Bureau of Internal Revenue, not a single entity has availed of the tax incentives under 
the Adopt-A-School Act of 1998 (R.A. No. 8525) since 1996. The proposed measure 
addresses this by introducing clearer incentive provisions aimed at encouraging and 
strengthening partnerships between educational institutions and adopting individuals 
or entities.
Third, the membership of the "Adopt-A-School" Coordinating Council is 
expanded to include key industry and government representatives.
This measure aims to revitalize the partnership between the private sector and 
our educational institutions, a collaboration that is vital to the success of both our 
students and our economy. Given the significant evolution of our educational 
landscape, this amendment is essential to updating and aligning the program with the 
current needs of our educational system.
In view of the foregoing, the passage of this measure is earnestly sought.
LOftENLEGARDA


NINETEENTH CONGRESS OF THE 
)
REPUBLIC OF THE PHILIPPINES 
)
Third Regular Session 
)
SENATE
s. No. 2f>09
24 SEP-3 P7 38
R,x.
Introduced by Senator Loren B. Legarda
AN ACT
FURTHER STRENGTHENING THE INCENTIVES FOR PRIVATE SECTOR 
PARTICIPATION IN PUBLIC EDUCATIONAL INSTITUTIONS BY AMENDING 
CERTAIN PROVISIONS IN REPUBLIC ACT NO. 8525f 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 "Adopt-
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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-o-
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School Act of 1998".] "ADOPT-A-SCHOOL ACT OF 2024".
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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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initiatives to support public education. Towards this end, the State shall institute
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programs to [encourage] 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 [in the country>-partieularfy- thoGC in povefty-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:
"Sec. 3. Adopt-a-Schoo! Program. - There is hereby established the 
"Adopt-a-School Program" which will allow private INDIVIDUALS OR entities,
WHETHER LOCAL OR FOREIGN, OF GOOD STANDING to assist [a] public 
[seheoi] EDUCATIONAL INSTITUTIONS, whether EARLY CHILDHOOD, 
elementary, secondary, TECHNICAL-VOCATIONAL, ALTERNATIVE 
LEARNING SYSTEM (ALS), or [tertiary] HIGHER EDUCATION, preferably 
located in [any of the twenty (20) poorest provinces identified by the 
Presidential Council for Countryside Development- or any other government
agency-tasked with identifying the poorest provinces] THE 4TH AND 5TH 
CLASS PROVINCES, CITIES, AND MUNICIPALITIES AS DETERMINED 
BY THE DEPARTMENT OF FINANCE (DOF) AND OTHER LOCAL 
GOVERNMENT UNITS (LGUs) EXPERIENCING SEVERE SHORTAGES, 
INSUFFICIENT BUDGET OR HAVING NUMEROUS POOR BUT HIGH 
PERFORMING LEARNERS in, but not limited to, the following areas: 
TRAINING, DEVELOPMENT AND FURTHER EDUCATION FOR SCHOOL 
HEADS, TEACHERS INCLUDING DAYCARE WORKERS AND TEACHERS, 
TVET TRAINERS, FACULTY AND LEARNERS; ASSESSMENTS IN


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PURSUIT OF RELEVANT WORK-RELATED CERTIFICATIONS AND 
CREDENTIALS; SCHOLARSHIPS FOR TEACHERS; REAL ESTATE 
PROPERTY [staff andfaeulty-developmcnt for training and further education]; 
construction of SCHOOL facilities SUCH AS LIBRARIES AND 
LABORATORIES AND THOSE RELATED TO POWER, WATER, AND 
SANITATION; [upgrading] UPGRADE AND REPAIR of existing facilities, 
provision of books, publications, SCHOOL SUPPLIES, and other instructional 
materials SUCH AS ELECTRONIC BOOKS (E-BOOKS), COMPUTERS, 
FURNITURE, EDUCATIONAL FILMS AND AUDIO-VISUAL MATERIALS; 
TECHNICAL VOCATIONAL LIVELIHOOD (TVL) TOOLS AND 
EQUIPMENT; HEALTH AND NUTRITION PACKAGES; ASSISTIVE 
LEARNING DEVICESAND EQUIPMENT FOR LEARNERS WITH SPECIAL 
NEEDS; and modernization of instructional technologies.
A Memorandum of Agreement (MOA) specifying the details of the 
adoption shall be entered into between the adopting INDIVIDUAL OR entity 
and the head of the [school] EDUCATIONAL INSTITUTION concerned: 
Provided, That such MOA shall be subject to review and approval of the 
[Superintendent—of—Schools—of the—province—or—district—concerned]
CONCERNED FIELD OFFICE OF THE EDUCATIONAL INSTITUTION: 
Provided, further. That the agreement shall last for at least two (2) years with 
the possibility of extension: Provided, finaiiy. That such period may be 
shortened only in cases where the adopting INDIVIDUAL OR entity is 
dissolved before the end of such period unless otherwise earlier terminated in 
accordance with [the succeeding 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 
DEPARTMENT OF EDUCATION (DEPED), COMMISSION ON HIGHER 
EDUCATION (CHED), AND TECHNICAL EDUCATION AND SKILLS 
DEVELOPMENT AUTHORITY (TESDA), AS WELL AS ITS RESPECTIVE 
REGIONAL OFFICES, SHALL BE MANDATED TO ESTABLISH AND 
MAINTAIN AN ADOPT-A-SCHOOL ONE-STOP SHOP WHICH SHALL 
SERVE AS A LOCATION TO ADDRESS QUERIES AND CONCERNS FROM 
PRIVATE INDIVIDUALS AND ENTITIES INTERESTED IN THE 
PROGRAM, AND TO RECEIVE AND PROCESS APPLICATIONS JOINTLY 
WITH BIR AND BOC: PROVIDED, THAT DEPED, CHED AND TESDA 
SHALL, IN CONSULTATION WITH THE DEPARTMENT OF 
INFORMATION AND COMMUNICATIONS TECHNOLOGY (DICT), 
ESTABLISH AN INTEGRATED ONLINE PORTAL TO RECEIVE AND 
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:
"Section [4] 5. Periodic review. - A review of the adoption shall be 
undertaken by the [local school board of the province or city where the school] 
CONCERNED FIELD OFFICE WHERE THE PARTICIPATING SCHOOL is 
located. The standards and guidelines for the review shall be formulated by the 
ADOPT-A-SCHOOL Coordinating Council created under Sec. [7] 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 appiication for tax credits by the adopting INDIVIDUAL OR entity. The
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[schoet-beard] 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 Councii whose
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decision shail be final and unappealable."
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SEC. 6. Sections 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 foliows:
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"SEC. 6. INCENTIVES FOR ADOPTING INDIVIDUALS OR
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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 
APPRENTICESHIP AGREEMENT UNDER PRESIDENTIAL DECREE 
NO. 442, SERIES OF 1974, OR THE 'LABOR CODE OF THE 
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 HAVE ALREADY BEEN USED, 
b) ADDITIONAL DEDUCTION FOR HIRING OF PUBUC 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.


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c) ADDITIONAL INCENTIVES. - IN ACCORDANCE WITH EXISTING
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LAWS AND SUBJECT TO THE GUIDELINES THAT SHALL BE
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PROVIDED IN THE IRR, THE ADOPTING INDIVIDUAL OR
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ENTITY SHALL BE ENTITLED TO HAVE ITS NAME EMBLAZONED
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BENEATH THE NAME OF THE SCHOOL AFTER WORDS
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INDICATING THAT THE SCHOOL IS UNDER THE "ADOPT-A-
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SCHOOL PROGRAM.""
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SEC. 7. 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. 7. EXEMPTION FROM IMPORT DUTIES, TAXES AND
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OTHER FEES - THE DONATED GOODS, REAL PROPERTY, AND
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SERVICES BY AN ADOPTING INDIVIDUAL OR ENTITY SHALL BE
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EXEMPT FROM CUSTOMS DUTIES, VALUE-ADDED TAX, EXCISE TAX,
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DONOR'S TAX, AND OTHER FEES: PROVIDED, THAT THE DONATIONS
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SHALL NOT BE RESOLD OR TRANSFERRED FOR MATERIAL
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CONSIDERATION.1
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SEC. 8. Section 7 or Republic Act No. 8525 is hereby amended to read as
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follows:
"Section [7] 8. ADOPT-A-SCHOOL Coordinating Councii. - An 
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 Department of 
Education; Culture and Sports (DECS)] DEPED, as chairperson; the Chairman 
of [the Commission on Higher Education (CHED)] CHED and the Director-


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General of [the Technical Education and Skills Development Autherity-(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—Council—for—Countryside—Development—(PCCD)^—aftd] a
representative, WHO SHALL HAVE A TERM OF THREE (3) YEARS AND 
MAY BE REAPPOINTED FOR ANOTHER THREE (3) YEARS, from a 
[national federatiof> 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.
The Council shall meet once every three (3) months. The chairpersons 
and members shall not receive compensation but shall be entitled to 
reimbursements for reasonable expenses related to the Council's activities.
The DEPED [9EGS], CHED, [and] TESDA, DTI, DOLE through a mutual 
agreement, AND IN COORDINATION WITH DBM, shall each make 
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 
RELEVANT TO THE IMPLEMENTATION OF THE PROVISIONS OF THIS 
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 of Republic Act No. 8525 also known as the
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"Adopt-a-School Act of 1998" shall still apply to pending and ongoing 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
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parts thereof which are contrary to or inconsistent with any of the provisions of this
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Act are 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,