WHEREAS, the arts complement the sciences in the improvement of the quality of human life and in working for the integrated and total development of the nation;

WHEREAS, it is the total person who can make the most meaningful contribution toward a just and humane society, and in developing national pride and identity;

WHEREAS, a just and humane society is necessary for the growth and full development of the precepts on which the new Philippine society is built; and

WHEREAS, the Philippine Constitution provides that arts and letters shall be under the patronage of the state;

NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the Philippines, by virtue of the powers vested in me by the Constitution, do hereby decree and order:

SECTION 1. There is hereby established a high school to be known as the Philippine High School for the Arts, which shall be attached to the Cultural Center of the Philippines for policy and program implementation with special emphasis on subjects pertaining to the arts, with the end in view of preparing its students for a career in the arts.

SEC. 2. The School shall be headed by a Director. He shall he appointed by the Chairman of the Board of Trustees as hereinafter provided, which Board shall also fix his compensation and the term of his office. His functions, powers and duties, in addition to those specifically provided for in this Decree, shall he those usually pertaining to the office of the principal of any high school in the Philippine educational system.

SEC. 3. The Philippine High School for the Arts shall have a Board of Trustees, hereinafter referred to as the Board, which shall be composed of the President of the Cultural Center of the Philippines, as chairman, the Undersecretary of Education and Culture as vice-chairman, and. the following members: the Director of the Philippine High School for the Arts, and a representative for each of the following fields: music, dance, drama and visual arts. The members shall receive a per diem of two hundred pesos (P200.00) per session of the Board.

The members of the Board representing music, dance, drama and visual arts shall be appointed by the Chairman of the Board.

SEC. 4. The Board shall have all the powers and prerogatives of a board of directors of a private corporation. It shall also have the following powers, among others:

1. To fix the site of the school;
2. To receive and appropriate for the ends specified by law such sums as may be provided by law for the support of the high school;
3. To approve appointment made and contracts entered into by the Director in connection with the employment of teachers, lecturers and other employees of the school, subject to the provisions of Section twelve of this Decree; to fix their compensation and other conditions of employment; and to remove them for cause after proper investigation.
4. To provide fellowships for faculty members and approve the grant of scholarships, stipends and such other allowances to deserving students;
5. To establish criteria for the selection and admission of students which shall include, among others, national competitive examinations;
6. To approve the issuance of certificates or diplomas to successful candidates for graduation;
7. To receive in trust legacies, gifts, and donations of real and personal property of all kinds and to administer the same for the benefit of the High School or for aid to any of its students.

SEC. 5. A quorum of the Board shall consist of majority of all the members holding office at the time a meeting is called.

SEC. 6. On or before the first of June of each year, the Board shall submit to the President of the Philippines a detailed report on the progress, condition and needs of the High School.

SEC. 7. There shall be an Executive Council consisting of the Director, the Assistant Director, as hereinafter provided, the heads of departments, and such other ranking faculty members or officials of the High School as may be determined by the Director. The Council shall have the power to screen and select the students to be admitted to the High School, to select students who shall be recipients of scholarships, stipends and other allowances, and to develop the curricula, course or stuffy, and rules of discipline. The Council shall implement and execute the policies laid down by the Board and exercise such other functions, powers and duties as the Board may prescribe.

SEC. 8. There shall be an Assistant Director who shall assist the Director in the arts education phase of the school. In the absence of the Director, he shall assume such administrative and supervisory functions of the Director as may be authorized him by the Board. He shall be appointed by the Chairman of the Board subject to the approval of the same Board, which shall also fix his compensation.

SEC. 9. There shall be a registrar of the High School who shall also act as Secretary of the Board, to be appointed by the Director with the approval of the Board. He shall keep all records of the school.

SEC. 10. There shall be a treasurer of the High School who shall be appointed by the Director with the approval of the Board.

All accounts and expenses of the High School are public in nature, and shall be audited by the Chairman of the Commission on Audit or his duly authorized representative.

SEC. 11. All legacies, gifts and donations for the benefit of the High School or for its support and maintenance or for aid to any of its students shall be tax-exempt and shall be an allowable deduction from the gross income of the donors. For the purpose of the income tax, the high school shall be exempt from payment of all taxes, fees, assessments and other charges of the Government, its branches and subdivisions. It shall likewise be exempt from taxes and duties on any equipment, books, articles, goods or services it may import from abroad, including withholding taxes on honoraria or fees paid by the high school to visiting lecturers or professors from abroad.

SEC. 12. All incomes and donations to the High School created under this Decree shall be formed into a fund, to be known as the Arts High School Fund. This fund shall be expended as authorized by the Board exclusively for the purpose of this Decree.

SEC. 13. To carryout the purposes of this Decree the amount of one and a half million pesos is hereby appropriated and shall be made available from the funds of the National Treasury not otherwise appropriated. Thereafter, this amount to be utilized for the expenses of the High School, for the purpose above described shall be provided in the yearly General Appropriation Act of the national Government.

SEC. 14. All laws, rules and orders inconsistent with the provisions of this Decree are hereby repealed, amended or modified accordingly.

SEC. 15. This Decree shall take effect immediately.

Done in the City of Manila, this 20th day of January, in the year of Our Lord, nineteen hundred and seventy-eight.

			(Sgd.) FERDINAND E. MARCOS President of the Philippines
	By the President:
	(Sgd.) JACOBO C. CLAVE
		Presidential Executive Assistant