Bureau Directors, Regional Directors, Schools Superintendents and Administrators
Heads of State and Community Colleges and Universities
Heads of Private Schools, Colleges and Universities

1. To implement the present thrusts for greater academic and administrative flexibility for private educational instructions, especially at the tertiary level, and to state colleges and universities were applicable, the following policies and proceedings contained in previous issuances of this office is hereby revoked.A. ON THE MORATORIUM ON NEW SCHOOLS, NEW TERTIARY COURSES, AND APPLICATIONS FOR CONVERSIONS INTO COLLEGES AND UNIVERSITIES
2. At the beginning of school year 1988-1989, a moratorium on the establishment of new schools, opening of new tertiary courses, and conversion of schools/colleges to colleges/universities as instituted. The policy was modified during the school year 1991-1992 by allowing certain special cases as exception to the moratorium. Given the thrust of further deregulation under present policies, especially in stimulating competition in higher education, an even more positive approach is now called for.
3. Accordingly, all existing moratorium policies are hereby rescinded, and applications for (a) opening of new schools, (b) the offering of new tertiary courses of study, and (c) the conversion into colleges and universities will now be accepted by DECS for processing. Approval of such application will be subject to applicable law and compliance with relevant DECS rules and standards. In general the principle educational competition between atleast two schools for the same course offering in the same locality will be a guiding policy.
4. Prior issuances or provisions thereof now consistent with this policy are superseded particularly (a) DECS Order No. 51, s. 1987, on the moratorium on the establishment of new colleges opening of tertiary curricular programs, and the conversion of schools/colleges to colleges/universities; (b) DECS Order No. 32, s. 1993, on amendments to DECS Order No. 51, series of 1987; (c) DECS Order No. 19, s. 1992 on the moratorium on opening of nursing schools/programs.B. ON THE ALLOCATION OF 70 PERCENT OF TUITION FEE INCREASES
5. R.A. No. 6728 entitled “An Act Providing Assistance to Students and Teachers Private Education” provides adequate guidelines for the allocation of the minimum 70 percent and incremental proceeds.
6. Therefore, DECS Order No. 13, s. 1992 on guidelines on the allocation minimum 70 percent and 20 percent incremental proceeds required under R.A. 6728, reference to Section 5.2.c which provides that “…seventy percent (70%) of the amount allotted for tuition fee or of the tuition fee increases shall go to the payment of salaries, with issuances, and other benefits of teaching and nonteaching personnel except administrators who are stockholders of the school, and may be used to cover increases as provided for in the collecting agreements (CBA) existing or in force at the time when this is approved and made.C. ON FULL DEREGULATION FOR EXCELLENT SCHOOLS AND FOR EXCELLENT TERTIARY PROGRAMS
7. Accreditation which is truly voluntary, non-government in nature, and programs rather than Institutional will play a much more important role in evaluating educational in Properly implemented, accreditation can serve as a method of recognizing the better schools.
8. With the full enforcement of the recently promulgated DECS policies on accreditation DECS Order No. 137, s. 1991 on full deregulation for excellent tertiary schools and DECS Order No. 68, s. 1992 on full deregulation for excellent higher education programs are hereby rescinded in schools and higher education programs identified in said DECS Orders shall no longer be called excellent schools or excellent programs. However, the benefits of full deregulation or complete active, curricular and financial autonomy granted for two years beginning with the school year 1992 will continue to be enjoyed until their expiration in school year 1993-1994.D. ON THE PENALTIES IMPOSED FOR LATE SUBMISSION AND ACTION ON SPECIAL ORDERS
9. The policies and guidelines on the issuance of special orders for graduation contained in Department Order No. 61, s. 1975, and MECS Order No. 48, s. 1986, have been expanded by DECS Order No. 114, s. 1991, with the provision of a schedule that should be strictly observed by schools and DECS regional offices in the issuance of special orders.
10. However, in the light of valid observations on the penalties imposed therein for submission and action on special orders, especially on the imposition of a fine on a school who necessarily be at fault with respect to late submissions of application for and issuances of special cases. Accordingly, the penalty provisions of DECS Order No. 114, s. 1991 as contained in Paragraphs 5 therein are hereby rescinded.E. ON THE INCORPORATION REQUIREMENT FOR PRESCHOOL LEVELS
11. Section 25 of Bata Pambansa Blg. 232 provides that the incorporation requirements may be waived in the case of family-administered pre-school institutions. With the inclusion of school institutions under Section 36(a) in the Eighth Edition of the Manual of Regulations for Private Schools as part of the elementary program under the jurisdiction of DECS, clarification is hereby made that incorporation is not mandatory for family-owned pre-school institutions. However, the incorporation requirement will apply if subsequent levels, such as Grade I Elementary, is offered by the said institution.
12. This Order takes effect immediately.

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