Adopt-a- School Act of 2025

Senate ifice of the surretary TWENTIETH CONGRESS OF THE REPUBLIC OF THE PHILIPPINES First Regular Session 25 JUL 31 P2:51 SENATE RECEIVFD BY: S. No._ 775 Introduced by Senator PIA S. CAYETANO AN ACT STRENGTHENING THE INCENTIVES FOR PRIVATE SECTOR PARTICIPATION IN PUBLIC EDUCATIONAL INSTITUTIONS, AMENDING FOR THE PURPOSE REPUBLIC ACT NO. 8525 OTHERWISE KNOWN AS THE "ADOPT-A-SCHOOL ACT OF 1998" EXPLANATORY NOTE Articles XIII and XIV of the 1987 Philippine Constitution affirm the State's duty to promote and safeguard every citizen's right to quality education, and to ensure its accessibility at all levels. To achieve this, the State is mandated to establish and maintain a system of free public education that is responsive to the needs of society. In support of these, the State shall give education the highest budgetary priority to ensure adequate funding for facilities, teaching personnel, instructional materials, and other essential resources that contribute to meaningful and inclusive learning. Republic Act No. 8525, also known as the "Adopt-a-School Act of 1998", was enacted with the goal of encouraging the private sector to support the modernization and development of the public education system. The private sector has long been a partner of the government in the delivery of essential services, and has helped reduce the resource gaps in public schools. To further encourage and incentivize this public- private partnership, this measure improves and builds upon the existing Adopt-a- School Act. This proposed bill seeks to strengthen the connection between educational institutions and their corresponding industries, particularly in the areas of training and employment for Senior High School graduates. It establishes an Adopt-a-School One-

Stop Shop, which shall serve as a central hub for inquiries and applications of interested entities, thereby enhancing the program's accessibility and administrative efficiency. Furthermore, it introduces enhanced fiscal incentives, including tax exemptions and additional allowable deductions, to encourage participation from private individuals and entities. The Adopt-a-School Coordinating Council is broadened to include key government agencies and a private sector representative to strengthen policy alignment and effective implementation. The DepEd, CHED, and TESDA are mandated to conduct regular assessments of public education needs to guide strategic collaborations and investments from the private sector. This measure builds upon and harmonizes the legislative initiative filed in the 19th Congress by former Senator and current Department of Education Secretary Sonny Angara. The said proposal aims to enhance the quality and accessibility of education, bridging the gap between academic institutions and industry needs, and equipping Filipino learners with the skills necessary to thrive in a competitive workforce. It presents a unified and strategic approach to improving the country's public education system through stronger public-private collaboration. In view of the foregoing, the immediate passage of this bill is earnestly sought. Pia S. Cantano PIA S. CAYÉTANO

Senate Office of the Ex retary TWENTIETH CONGRESS OF THE ) REPUBLIC OF THE PHILIPPINES First Regular Session 25 JUL 31 P2:51 SENATE RECEIVED BY: S. No. _ Introduced by Senator PIA S. CAYETANO AN ACT STRENGTHENING THE INCENTIVES FOR PRIVATE SECTOR PARTICIPATION IN PUBLIC EDUCATIONAL INSTITUTIONS, AMENDING FOR THE PURPOSE 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:

Section 1. Section 1 of Republic Act No. 8525, otherwise known as the "Adopt-

2 a-School Act of 1998", is hereby amended to read as follows: "Section 1. Title. - This Act shall be known and cited as the "Adopt-a- School Act of [1998] 2025."

Sec. 2. Section 2 of Republic Act No. 8525 is hereby further amended to read

6 as follows: "Section 2. Declaration of Policy. - It is the policy of the State to provide quality and relevant education to the Filipino youth and to encourage private initiative to support public education. Towards this end, the State shall institute programs to INCENTIVIZE THE [encourage] private SECTOR, [companies and enterprises] to ASSIST [help] in the DEVELOPMENT, upgrading, and modernization of THE COUNTRY'S public EDUCATION SYSTEM AND ESTABLISH PROPER LINKAGES BETWEEN EDUCATIONAL INSTITUTIONS AND THEIR RESPECTIVE INDUSTRIES, PARTICULARLY IN THE TRAINING AND EMPLOYMENT OF SENIOR HIGH SCHOOL (SHS)

GRADUATES [schools in the country, particularly those in poverty- stricken provinces]."

Sec. 3. Section 3 of Republic Act No. 8525 is hereby further amended to read

as follows: "Section 3. Adopt-a-School 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 EDUCATIONAL INSTITUTIONS [school], whether IN EARLY CHILDHOOD, elementary, secondary, TECHNICAL- VOCATIONAL, ALTERNATIVE LEARNING SYSTEM (ALS) or HIGHER EDUCATION [tertiary], preferably located in THE 4TH, 5TH, AND 6TH CLASS PROVINCES, CITIES, AND MUNICIPALITIES, AS DETERMINED BY THE DEPARTMENT OF FINANCE (DOF), IN ACCORDANCE WITH REPUBLIC ACT NO. 11964 OR THE "AUTOMATIC INCOME CLASSIFICATION OF LOCAL GOVERNMENT UNITS ACT", AND OTHER LOCAL GOVERNMENT UNITS (LGUS) EXPERIENCING SEVERE SHORTAGES, INSUFFICIENT BUDGET OR HAVING NUMEROUS ECONOMICALLY DISADVANTAGED YET HIGH PERFORMING LEARNERS [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] in, but not limited to, the following areas: TRAINING, DEVELOPMENT, AND FURTHER EDUCATION FOR SCHOOL HEADS, TEACHERS, INCLUDING EARLY CHILDHOOD CARE AND DEVELOPMENT SERVICE PROVIDERS, TECHNICAL AND VOCATIONAL EDUCATION AND TRAINING TRAINERS, FACULTY AND LEARNERS; ASSESSMENTS IN PURSUIT OF RELEVANT WORK- RELATED CERTIFICATIONS AND CREDENTIALS; SCHOLARSHIPS FOR TEACHERS; ACQUISITION OF REAL ESTATE PROPERTY FOR SCHOOL FACILITIES [staff and faculty development for training and

further education]; construction of SCHOOL facilities SUCH AS LIBRARIES, LABORATORIES, AND INFRASTRUCTURE RELATED TO POWER, WATER, AND SANITATION; [upgrading] UPGRADE AND REPAIR of existing facilities; provision of books, publications, SCHOOL SUPPLIES, and other instructional materials, INCLUDING ELECTRONIC BOOKS, COMPUTERS, FURNITURE, EDUCATIONAL FILMS AND AUDIO-VISUAL MATERIALS; PROCUREMENT OF TECHNICAL VOCATIONAL LIVELIHOOD TOOLS AND EQUIPMENT; DISTRIBUTION OF HEALTH AND NUTRITION PACKAGES; ACQUISITION OF ASSISTIVE LEARNING DEVICES AND 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 CONCERNED REGIONAL, PROVINCIAL, OR FIELD OFFICE OF THE EDUCATIONAL INSTITUTION [Superintendent of Schools of the province or district concerned]: Provided, further, That the agreement shall last for at least two (2) years with the possibility of extension: Provided, finally, 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 THIS ACT [the succeeding Sec]."

Sec. 4. Insert a new Section under Republic Act No. 8525 to read as follows,

and renumber the succeeding sections accordingly: "SEC. 4. CREATION AND ESTABLISHMENT OF AN ADOPT-A- 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), INCLUDING

THEIR RESPECTIVE REGIONAL OFFICES, SHALL ESTABLISH AND MAINTAIN AN ADOPT-A-SCHOOL ONE-STOP SHOP. THIS OFFICE SHALL SERVE AS A CENTRAL HUB FOR ADDRESSING QUERIES AND CONCERNS FROM PRIVATE INDIVIDUALS AND ENTITIES INTERESTED IN PARTICIPATING IN THE PROGRAM, AS WELL AS FOR RECEIVING AND PROCESSING APPLICATIONS JOINTLY WITH THE BUREAU OF INTERNAL REVENUE (BIR) AND BUREAU OF CUSTOMS (BOC): PROVIDED, THAT THE 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."

Sec. 5. Section 4 of Republic Act No. 8525 is hereby further amended to read

as follows: "Section [4] 5. Periodic review. - A review of the adoption shall be undertaken by the CONCERNED REGIONAL, PROVINCIAL, OR FIELD OFFICE WHERE THE PARTICIPATING SCHOOL [local school board of the province or city where the school] is located. The standards and guidelines for the review shall be formulated by the ADOPT-A- SCHOOL Coordinating Council created under Sec. 8 [7] hereof. The results of the review shall be taken into consideration in the assessment of the application for tax credits by the adopting INDIVIDUAL OR entity. The CONCERNED REGIONAL, PROVINCIAL, OR FIELD OFFICE [school board] may, after an appropriate review, recommend to the ADOPT-A-SCHOOL Coordinating Council the termination of the adoption. The adopting entity may appeal the assessment to the ADOPT- A-SCHOOL Coordinating Council whose decision shall be final and unappealable."

Sec. 6. Section 5 and 6 of Republic Act No. 8525 are hereby repealed and

replaced with a new Section to be read as follows:

"SEC. 6. INCENTIVES FOR ADOPTING INDIVIDUALS OR ENTITIES. - NOTWITHSTANDING ANY LAW TO THE CONTRARY, ADOPTING INDIVIDUALS OR ENTITIES SHALL ENJOY THE FOLLOWING INCENTIVES: A) ADDITIONAL DEDUCTION FOR EXPENSES INCURRED FOR THE ADOPTION - EXPENSES INCURRED BY THE ADOPTING INDIVIDUAL OR ENTITIES FOR THE "ADOPT-A-SCHOOL PROGRAM" SHALL BE ALLOWED AN ADDITIONAL DEDUCTION FROM THE GROSS INCOME EQUIVALENT TO FIFTY PERCENT (50%) OF SUCH EXPENSES. 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) ONE-TIME ADDITIONAL DEDUCTION FOR HIRING OF PUBLIC SHS GRADUATES - ADOPTING INDIVIDUALS OR ENTITIES WHO EMPLOY SHS GRADUATES FROM THEIR PARTNER PUBLIC INSTITUTION SHALL BE ENTITLED TO AN ADDITIONAL DEDUCTION FROM THEIR GROSS INCOME, EQUIVALENT TO TWENTY PERCENT (20%) OF THE TOTAL SALARIES, WAGES, AND BENEFITS PAID TO THE EMPLOYED SHS GRADUATE, SUBJECT TO THE PROVISIONS OF SECTION 34 OF THE NATIONAL INTERNAL REVENUE CODE, AS AMENDED: PROVIDED, THAT THE SHS GRADUATE IS REGULARLY EMPLOYED FOR AT LEAST ONE YEAR. 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,

and renumber the succeeding sections accordingly: "SEC. 7. TAX EXEMPTION - THE DONATED GOODS, REAL PROPERTY, AND SERVICES BY AN ADOPTING INDIVIDUAL OR ENTITY SHALL BE EXEMPT FROM CUSTOMS, DUTIES, VALUE- ADDED TAX, EXCISE TAX, DONOR'S TAX, AND OTHER FEES, AS THE CASE MAY BE: PROVIDED, THAT THE DONATIONS SHALL NOT BE RESOLD OR TRANSFERRED FOR MATERIAL CONSIDERATION."

Sec. 8. Section 7 of Republic Act No. 8525 is hereby further amended to read

as follows: "Section 8 [7]. ADOPT-A-SCHOOL Coordinating Council. - 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 DEPED [Department of Education, Culture and Sports (DECS)], as chairperson; the Chairman of the CHED [Commission on Higher Education (CHED)] and the Director-General of the TESDA [Technical Education and Skills Development Authority (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 BIR [and the chairperson of the Presidential Council for Countryside Development (PCCD)], and a representative, WHO SHALL HAVE A TERM OF THREE (3) YEARS AND MAY BE REAPPOINTED FOR ANOTHER THREE (3) YEARS, from a REPUTABLE BUSINESS GROUP [national federation of chambers of commerce and industry] 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 [DECS], CHED, [and] TESDA, DTI, DOLE through a mutual agreement, AND IN COORDINATION WITH THE DBM, shall each make provisions for the secretariat of the Council. THE COUNCIL SHALL COORDINATE WITH NATIONAL GOVERNMENT AGENCIES AND EXISTING COUNCILS RELEVANT TO THE IMPLEMENTATION OF THE PROVISIONS OF THIS ACT.

Sec. 9. Insert a new Section under Republic Act No. 8525 to read as follows,

19 and renumber the succeeding sections accordingly: "SEC. 9. DETERMINATION OF EDUCATION SECTOR NEEDS AND PRIORITIES. - THE DEPED, CHED, AND TESDA, THROUGH THEIR RESPECTIVE REGIONAL, PROVINCIAL, AND FIELD OFFICES, SHALL MAKE AN ANNUAL DETERMINATION OF THE NEEDS AND PRIORITIES OF PUBLIC EDUCATION INSTITUTIONS WITHIN THEIR JURISDICTION, WHICH MAY SERVE AS A GUIDE FOR STRATEGIC INTERVENTIONS IN PARTNERSHIP WITH THE PRIVATE SECTOR."

Sec. 10. Implementing Rules and Regulations. - Within sixty (60) days from

29 the effectivity of this Act, the DepEd, CHED, TESDA, DTI and DOLE, in consultation

1 with the DOF, including the BIR, and the BOC, as well as with the participation of the 2 ECCD Council Secretariat, shall formulate the implementing rules and regulations to implement this Act.

Sec. 11. Transitory Clause. - To prevent any delay in the delivery of goods,

services, and real property, the provisions or Republic Act No. 8525 also known as the 6 "Adopt-a-School Act of 1998" shall still apply to pending and on-going transactions 7 and/or donations by adopting individuals or entities.

Sec. 12. Separability Clause. - If any portion or provision of this Act is declared

9 unconstitutional, the remainder of this Act or any provisions not affected thereby shall 10 remain in force and effect.

Sec. 13. Repealing Clause. - Any law, presidential decree or issuance, executive

order, letter of instruction, rule or regulation inconsistent with the provisions of this Act is hereby repealed or modified accordingly.

Sec. 13. Effectivity Clause. - This Act shall take effect fifteen (15) days following

its complete publication in the Official Gazette or a newspaper of general circulation. Approved,