Salam Iran- Economy

CHAPTER TWENTY:

Education

ARTICLE 143-

A- To regulate and reform the structure of the man-power of Ministry of Education and to deploy the manpower to the needy regions and especially to undeveloped or less-developed regions of the country, government is authorized to draw up and execute necessary regulations to promote transfer, redemption of the service, reduction of the working hours in undeveloped and less-developed regions, payment of overtime remuneration and take other necessary measures.

B- To secure the quality and quantity of the man-power, create educational space, and provide educational equipment and vehicles, government, in cooperation and coordination with the Plan and Budget Organization and the State Administrative and Employment Affairs Organization, is required to make plan and take measures in such a way as to eliminate disparities between urban and rural areas and to provide necessary facilities in order to enable students to attend schools from the elementary level through senior and high school levels.

C- To provide the necessary funds in the annual budget in order to cover the cost of meal for the students in the boarding schools, and a once-a-week transportation service to the villages and back to the school.

The cost of transportation of the male and female students from the small villages lacking junior and high school facilities to the villages that possess these facilities, provided that this cost is less than the cost of boarding school arrangement, should be provided in the budget. In the educational regions that the proportion of the junior and senior high school students to the elementary students is less that of the national average, the quorum to form junior high school classes is ten and for the senior high school is fifteen.

The executive by-law of this Article shall be prepared jointly by the Plan and Budget Organization, the State Administrative and Employment Affairs Organization and Ministry of Education, and to be approved by the Cabinet.

ARTICLE 144-

A- In the events that the non-governmental real and legal persons undertake to build, develop, complete and equip the spaces for educational, sport uses, as well as boarding rooms, restaurants, libraries, and dormitories for students of lower and higher education affiliated with Ministry of Education and institutions of higher education within the framework of the comprehensive plan and/or development plans, the costs of these undertakings will be accepted as tax deductible expenses.

B- The non-public real and legal persons who donate and transfer their properties such as building, residential dwelling, garden, land, and their share of inheritance for the educational purposes, and to the universities and institutions of higher education and the Bassij Resistance Forces ( including the lines) and theological schools, and the Islamic Azad University, as well as to the research centers affiliated with the universities and the Physical Education Organization, are exempted from any transfer tax or similar charges and duties.

C- Ministry of Education is authorized to spend up to ten percent (10%) of its annual development budget (national and provincial) to purchase land for creation of proper educational and sport spaces.

ARTICLE 145-

A- In order to mobilize the non-governmental resources for the educational sector, the rate of charges and revenues from the goods and service subject of Item (2) of Article (13) of the Law of Establishment of the Education Councils in the Provinces, Counties and Regions of the Country enacted on 15/01/1994 is raised to two percent (2%).

B- From the date of enactment of this Law, imported consumer goods will be added to the list of goods and services content of Item (2) of Article (13) of the Law of Establishment of the Education Councils in the Provinces, Counties and Regions of the Country, and will be charged at the rate of two percent (2%) as stipulated in the aforesaid Article of the Law.

C- Thirty percent (30%) of the revenue earned through the execution of the Items (A) and (B) of this Article will be allocated to Ministry of Education in order to create balance between provinces of the country.

ARTICLE 146- During the Third Plan period the educational units affiliated with Ministry of Education as well as the technical and vocational educational units are exempted from any municipal charges.

ARTICLE 147- In order to fully realize the targets of the Educational Employees Reserve Fund subject of Note (63) of the Law of the Second Five-Year Economic, Social and Cultural Development Plan enacted on 10/12/1994, secure maximum possible welfare and enhance the subsistence of the country’s educational employees, government is required to undertake the following tasks:

A- Those employees of Ministry of Education who are or will be member of the Educational Employees Reserve Fund are required to deposit with the account of the said fund up to five percent of their salary and fringe benefits; and government is required to match equally the total contribution made by the members of the reserve fund through a special budgetary line in the annual budget of the relevant year.

B- Government is required to settle its debts to the Educational Employees Reserve Fund, accumulated up to the end of 1379 (20 March 1999) within three years through the annual budget bills.

C- Ministry of Education will be responsible before the Islamic Consultative Assembly for the performance of the Educational Employees Reserve Fund.

ARTICLE 148- From the date of enactment of this law the educational calendar of the schools will be drawn up in conformity with the atmospheric and geographic characteristics of each region. The calendar shall be approved by the High Council of Education.

ARTICLE 149-

A- Ministry of Education is authorized to rent out through contract, with priority given to the educational employees, the educational spaces and dwellings not in use by the Ministry for a certain period of time and collect the proceeds and spend it on the basis of the provisions of Item (B) of this Article. In this case, the educational employees shall not be subject to the Law of Non-intervention of the Public Employees in the Governmental Transactions.

B- Authorization is given to Ministry of Education to deposit into the accounts to be opened by the Treasury for any of the national or provincial executive agencies the income collected on the basis of the approved laws. The deposited funds will be included in the special account of the relevant agency. Equivalent to one hundred percent (100%) of the deposited funds will be provided in the annual budget law of each year to be granted to the relevant agency.

C- The rents indicated in Item (A) of this Article in national executive agencies shall be proposed by the Ministry of Education and approved by the Cabinet. The rents for the relevant provincial executive agencies shall be adopted by the provincial education councils.

ARTICLE 150-

A- Authorization is given to the executive agencies to spend a percentage of their current and development credits for undertaking on-the-job training (outside of the country’s higher education system) as described below:

1- Launching on-the-job training programs compatible with the employees incumbency in order to enhance their level of efficiency, particularly through short-term modular training.

2- Launching special management training for the managers.

B- All the executive agencies are required to prepare within six months from the date of enactment of this Law their annual educational programs for the Third Plan period and on yearly basis, including the educational subject matters, the procedures for implementing the programs, and also the manner of covering all the tenured employees; and submit these program to the State Administrative and Employment Affairs Organization for ratification.

C- The executive by-law of this Article including the rents and manner of spending the funds content of Item (A) of this Article and provision of necessities and lawful incentives will be proposed jointly by the Plan and Budget Organization and the State Administrative and Employment Affairs Organization to the Cabinet for approval.

ARTICLE 151- In order to coordinate policy-making decisions pertaining to the formal and informal technical and vocational education including skill and applied scientific training under the auspices of Ministry of Science, Research and Technology, and Ministry of Health-Medicare and Medical Education; the middle school technical and vocational training, the work-and-training administered by Ministry of Education, short-term technical and vocational training by Ministry of Labor and Social Affairs, on-the-job training of the government employees, and the specialized professional management training run by the State Administrative and Employment Affairs Organization, the High Council of Training (Articles (5) and (6) and (7) of the Training Law enacted in 1970 by the former Senate and the Consultative Assembly) and the High Council of Coordination of the Technical and Vocational Training in the Country (enacted in 1980 by the Revolution Council of the Islamic Republic of Iran) and the High Council of Scientific and Applied Education (enacted in 1990 by the High Council of the Cultural Revolution) are dissolved, and the Technical and Vocational Education Commission is established to be chaired by the First Vice President and membership of the Ministers of “Education”, “Labor and Social Affairs”, “Science-Research and Technology”; “Health, Medicare and Medical Education”, “Agriculture”, “Construction Jihad”, the Head of Plan and Budget Organization, Secretary-General of the State Administrative and Employment Affairs Organization, and the Head of the Center for the Women Participation Affairs. Other ministers, as the case may call for, will be invited to attend the meetings. The Head of the Plan and Budget Organization will serve as the Secretary of the Commission. Other functions and mandates of the dissolved councils are delegated to the pertinent ministries. Upon approval of the Cabinet, the decisions of the Commission will be binding for all the ministries and councils concerned with the above mandates.

The by-law of this Article shall be approved by the Cabinet on the recommendation of the Commission within three months from the date of enactment of this Law.

ARTICLE 152- In order to properly meet the increasing demand for higher education, optimally utilize the existing capacity, and promote popular participation:

A- Authorization is granted to the executive agencies with higher educational units affiliated to them to admit students for the baccalaureate (Associate Degree) Level education for the capacity in excess of their own need, and by obtaining authorization from the Council of Development of Higher Education, collect the cost of such an education and deposit the proceeds with the Treasury. Equivalent to the deposited funds will be provided for in the country’s annual budget bills to be granted to the executive agencies administering the said educational programs in order to be allocated on the basis of the relevant regulations to these programs and to enhance the quality of the educational units.

In the cases that the education received by the students will be reciprocated through a service commitment on part of the applicant, the concerned entity must obtain the necessary authorization from the State Administrative and Employment Affairs Organization.

Administration of the educational programs at the bachelor level in the fields not available in other universities or where their administration would not be in the best interest of these universities and/or such programs are not economically justifiable, will be permissible in exceptional cases for which authorization must be obtained from the Council of Development of Higher Education.

B- Authorization is given to universities and institutions of higher education to launch evening and special educational programs and charge the applicants for the relevant costs upon confirmation by the Ministries of “Health, Medicare and Medical Education” and “Science, Research and Technology”, as the case may be, and deposit the proceeds with the Treasury. The deposited funds will be allocated to the concerned entities through the annual budget bills.

Commissioning special educational programs should not lead to granting academic degrees.

The War-veteran applicants with a disability of over twenty five (25%) percent will be totally exempted from payment of any tuition for the special and evening courses. The student under patronage of the Imam Khomeini Relief Committee and the Welfare Organization are exempted from payment of up to fifty percent (50%) of the said tuition.

C- Government is authorized to grant credit facilities in the form of long-term loan to the Students’ Welfare Fund so that a segment of the students of the programs indicated in Item (B) of this Article and the students of universities and the public and non-public educational institutions and the Payam-e Noor University, with the exception of certain courses, who are unable to meet the tuition cost could take advantage of this loan and repay it gradually after graduation.

The students under patronage of the Imam Khomeini Relief Committee and the Welfare Organization and children of the disabled War-veterans with an intensity of twenty five percent (25%) and over, and the martyrs children and the children of the ex-prisoners of the War whose financial debility is certified by the concerned organizations will be exempted from paying any tuition.

The Islamic Azad University and the non-profit (non-public) institutions of higher education, Payam-e Noor University and the evening programs will receive tuition for these students through the funds provided for in the annual budget for this purpose.

D- Expenditure of the Payam-e Noor University will be financed through the tuition paid by the students, popular contributions and the funds allocated in the general budget.

E- Government is authorized to grant subsidy on the facilities extended by banks, through the general budget, for the investment projects of the private sector in the areas of establishing and developing units of higher education on the condition that these projects meet the criteria and policies of the country’s higher education. Establishment of non-governmental and non-profit making schools for the purpose of developing scientific-applied programs at the baccalaureate level will receive priority in use of the said banking facilities.

F- All students of the Islamic Azad University units and the centers controlled by these units whose accreditation have been approved up to the end of the year 1378 ( 20 March 1999)by the Board of Trustees shall equally enjoy all the facilities granted to the students of other universities.

The units and the centers that will be approved by the Board of Trustees after 20 march 1999 must follow all the stages indicated in the university’s charter.

ARTICLE 153- In order to improve the students’ welfare conditions and facilities, payment of subsidy and the government assistance should be reorganized in favor of the lower income students. At the same time the government contribution to the Students’ Welfare Funds and provision of welfare facilities to universities and institutions of higher education must be continued. In this connection:

A- A portion of the Rial equivalent of the welfare facilities granted by the university to the student is considered as long-term interest-free loan (Gharzol-Hassaneh) from the welfare funds; and the users of the said services are bound to repay this loan in the form of long-term installments upon graduation.

B- The proceeds of the above installments shall be used to bring about improvement in the welfare conditions and facilities such as dormitories for the qualified students.

C- Graduates of the daily programs of the public universities who intend to leave the country prior to the completion of their service obligations (subject of the Law of Provision of Necessities and Facilities for Education of the Iranian Pupils and the Youth enacted on 20/07/1974 and amended on 21/101979 must, prior to their departure, pay off their educational expenses, or make necessary arrangement to repay the same. The out-of-the-country holders of scholarship from the government agencies who have given sufficient security pledge to return home are exempted from this provision.

The by-law of this Article shall be proposed jointly by the Ministry of Science, Research and Technology and Ministry of Health, Medicare and Medical Education, and shall be approved by the Cabinet.

ARTICLE 154- In order to facilitate the utilization of the specialized and technical capacity of the academic faculty of the universities and institutions of higher education, and to reorient the university research works toward the country’s scientific and specialization needs:

A- Universities and institutions of higher education and research centers are authorized to take measures in compliance with the following premises to form public companies in order to render scientific, research and technical services under especial regulations and in conformity with the commercial code:

1- The services of these companies should be exclusively confined to the realm of research, scientific inquiries and technical services not undertaken by the enterprises and institutions of the non-public sector, and will not deviate the university’s mandates from its main educational and research objectives.

2- A maximum of forty nine percent (49%) of the shares of these companies must be held by the academic staff, research experts, technicians

and employees of the same university, institute of higher education and the research center. The shareholders and the relevant enterprises will be excluded from limitations imposed by the Law of Non-Intervention of the Ministers and the Members of the Parliament and the Government Employees from the State and Government Transactions, enacted on 16/01/1959.

A model articles of association for each of the above enterprises in any university and institution of higher education and research center will be drawn up and recommended by the Plan and Budget Organization and shall be approved by the Cabinet.

B- The manner of spending the current and special earmarked credits in the research programs of the universities and the research centers that are subject to the Law Concerning the Sanctions of the High Council of the Cultural Revolution in Connection with Composition of the Board of Trustees of the Universities and Institutions of Higher Education and Research enacted on 24/06/1997 and the Law of the Manner of Performing Financial and Transactional Duties of the Universities and Institutions of Higher Education and Research Centers enacted on 7/01/1991 will be merely subject to the said law and the pertinent by-laws, and are exempted from the provisions of the general laws and regulations of the governmental entities, barring article (31) of the Public Audit Law. The income derived as the result of the research services of the research centers will be accounted as the special revenue of the said centers.


	CHAPTER TWENTY: Education ARTICLE 143- A- To regulate and reform the structure of the man-power of Ministry of Education and to deploy the manpower to the needy regions and especially to undeveloped or less-developed regions of the country, government is authorized to draw up and execute necessary regulations to promote transfer, redemption of the service, reduction of the working hours in undeveloped and less-developed regions, payment of overtime remuneration and take other necessary measures. B- To secure the quality and quantity of the man-power, create educational space, and provide educational equipment and vehicles, government, in cooperation and coordination with the Plan and Budget Organization and the State Administrative and Employment Affairs Organization, is required to make plan and take measures in such a way as to eliminate disparities between urban and rural areas and to provide necessary facilities in order to enable students to attend schools from the elementary level through senior and high school levels. C- To provide the necessary funds in the annual budget in order to cover the cost of meal for the students in the boarding schools, and a once-a-week transportation service to the villages and back to the school. The cost of transportation of the male and female students from the small villages lacking junior and high school facilities to the villages that possess these facilities, provided that this cost is less than the cost of boarding school arrangement, should be provided in the budget. In the educational regions that the proportion of the junior and senior high school students to the elementary students is less that of the national average, the quorum to form junior high school classes is ten and for the senior high school is fifteen. The executive by-law of this Article shall be prepared jointly by the Plan and Budget Organization, the State Administrative and Employment Affairs Organization and Ministry of Education, and to be approved by the Cabinet. ARTICLE 144- A- In the events that the non-governmental real and legal persons undertake to build, develop, complete and equip the spaces for educational, sport uses, as well as boarding rooms, restaurants, libraries, and dormitories for students of lower and higher education affiliated with Ministry of Education and institutions of higher education within the framework of the comprehensive plan and/or development plans, the costs of these undertakings will be accepted as tax deductible expenses. B- The non-public real and legal persons who donate and transfer their properties such as building, residential dwelling, garden, land, and their share of inheritance for the educational purposes, and to the universities and institutions of higher education and the Bassij Resistance Forces ( including the lines) and theological schools, and the Islamic Azad University, as well as to the research centers affiliated with the universities and the Physical Education Organization, are exempted from any transfer tax or similar charges and duties. C- Ministry of Education is authorized to spend up to ten percent (10%) of its annual development budget (national and provincial) to purchase land for creation of proper educational and sport spaces. ARTICLE 145- A- In order to mobilize the non-governmental resources for the educational sector, the rate of charges and revenues from the goods and service subject of Item (2) of Article (13) of the Law of Establishment of the Education Councils in the Provinces, Counties and Regions of the Country enacted on 15/01/1994 is raised to two percent (2%). B- From the date of enactment of this Law, imported consumer goods will be added to the list of goods and services content of Item (2) of Article (13) of the Law of Establishment of the Education Councils in the Provinces, Counties and Regions of the Country, and will be charged at the rate of two percent (2%) as stipulated in the aforesaid Article of the Law. C- Thirty percent (30%) of the revenue earned through the execution of the Items (A) and (B) of this Article will be allocated to Ministry of Education in order to create balance between provinces of the country. ARTICLE 146- During the Third Plan period the educational units affiliated with Ministry of Education as well as the technical and vocational educational units are exempted from any municipal charges. ARTICLE 147- In order to fully realize the targets of the Educational Employees Reserve Fund subject of Note (63) of the Law of the Second Five-Year Economic, Social and Cultural Development Plan enacted on 10/12/1994, secure maximum possible welfare and enhance the subsistence of the country’s educational employees, government is required to undertake the following tasks: A- Those employees of Ministry of Education who are or will be member of the Educational Employees Reserve Fund are required to deposit with the account of the said fund up to five percent of their salary and fringe benefits; and government is required to match equally the total contribution made by the members of the reserve fund through a special budgetary line in the annual budget of the relevant year. B- Government is required to settle its debts to the Educational Employees Reserve Fund, accumulated up to the end of 1379 (20 March 1999) within three years through the annual budget bills. C- Ministry of Education will be responsible before the Islamic Consultative Assembly for the performance of the Educational Employees Reserve Fund. ARTICLE 148- From the date of enactment of this law the educational calendar of the schools will be drawn up in conformity with the atmospheric and geographic characteristics of each region. The calendar shall be approved by the High Council of Education. ARTICLE 149- A- Ministry of Education is authorized to rent out through contract, with priority given to the educational employees, the educational spaces and dwellings not in use by the Ministry for a certain period of time and collect the proceeds and spend it on the basis of the provisions of Item (B) of this Article. In this case, the educational employees shall not be subject to the Law of Non-intervention of the Public Employees in the Governmental Transactions. B- Authorization is given to Ministry of Education to deposit into the accounts to be opened by the Treasury for any of the national or provincial executive agencies the income collected on the basis of the approved laws. The deposited funds will be included in the special account of the relevant agency. Equivalent to one hundred percent (100%) of the deposited funds will be provided in the annual budget law of each year to be granted to the relevant agency. C- The rents indicated in Item (A) of this Article in national executive agencies shall be proposed by the Ministry of Education and approved by the Cabinet. The rents for the relevant provincial executive agencies shall be adopted by the provincial education councils. ARTICLE 150- A- Authorization is given to the executive agencies to spend a percentage of their current and development credits for undertaking on-the-job training (outside of the country’s higher education system) as described below: 1- Launching on-the-job training programs compatible with the employees incumbency in order to enhance their level of efficiency, particularly through short-term modular training. 2- Launching special management training for the managers. B- All the executive agencies are required to prepare within six months from the date of enactment of this Law their annual educational programs for the Third Plan period and on yearly basis, including the educational subject matters, the procedures for implementing the programs, and also the manner of covering all the tenured employees; and submit these program to the State Administrative and Employment Affairs Organization for ratification. C- The executive by-law of this Article including the rents and manner of spending the funds content of Item (A) of this Article and provision of necessities and lawful incentives will be proposed jointly by the Plan and Budget Organization and the State Administrative and Employment Affairs Organization to the Cabinet for approval. ARTICLE 151- In order to coordinate policy-making decisions pertaining to the formal and informal technical and vocational education including skill and applied scientific training under the auspices of Ministry of Science, Research and Technology, and Ministry of Health-Medicare and Medical Education; the middle school technical and vocational training, the work-and-training administered by Ministry of Education, short-term technical and vocational training by Ministry of Labor and Social Affairs, on-the-job training of the government employees, and the specialized professional management training run by the State Administrative and Employment Affairs Organization, the High Council of Training (Articles (5) and (6) and (7) of the Training Law enacted in 1970 by the former Senate and the Consultative Assembly) and the High Council of Coordination of the Technical and Vocational Training in the Country (enacted in 1980 by the Revolution Council of the Islamic Republic of Iran) and the High Council of Scientific and Applied Education (enacted in 1990 by the High Council of the Cultural Revolution) are dissolved, and the Technical and Vocational Education Commission is established to be chaired by the First Vice President and membership of the Ministers of “Education”, “Labor and Social Affairs”, “Science-Research and Technology”; “Health, Medicare and Medical Education”, “Agriculture”, “Construction Jihad”, the Head of Plan and Budget Organization, Secretary-General of the State Administrative and Employment Affairs Organization, and the Head of the Center for the Women Participation Affairs. Other ministers, as the case may call for, will be invited to attend the meetings. The Head of the Plan and Budget Organization will serve as the Secretary of the Commission. Other functions and mandates of the dissolved councils are delegated to the pertinent ministries. Upon approval of the Cabinet, the decisions of the Commission will be binding for all the ministries and councils concerned with the above mandates. The by-law of this Article shall be approved by the Cabinet on the recommendation of the Commission within three months from the date of enactment of this Law. ARTICLE 152- In order to properly meet the increasing demand for higher education, optimally utilize the existing capacity, and promote popular participation: A- Authorization is granted to the executive agencies with higher educational units affiliated to them to admit students for the baccalaureate (Associate Degree) Level education for the capacity in excess of their own need, and by obtaining authorization from the Council of Development of Higher Education, collect the cost of such an education and deposit the proceeds with the Treasury. Equivalent to the deposited funds will be provided for in the country’s annual budget bills to be granted to the executive agencies administering the said educational programs in order to be allocated on the basis of the relevant regulations to these programs and to enhance the quality of the educational units. In the cases that the education received by the students will be reciprocated through a service commitment on part of the applicant, the concerned entity must obtain the necessary authorization from the State Administrative and Employment Affairs Organization. Administration of the educational programs at the bachelor level in the fields not available in other universities or where their administration would not be in the best interest of these universities and/or such programs are not economically justifiable, will be permissible in exceptional cases for which authorization must be obtained from the Council of Development of Higher Education. B- Authorization is given to universities and institutions of higher education to launch evening and special educational programs and charge the applicants for the relevant costs upon confirmation by the Ministries of “Health, Medicare and Medical Education” and “Science, Research and Technology”, as the case may be, and deposit the proceeds with the Treasury. The deposited funds will be allocated to the concerned entities through the annual budget bills. Commissioning special educational programs should not lead to granting academic degrees. The War-veteran applicants with a disability of over twenty five (25%) percent will be totally exempted from payment of any tuition for the special and evening courses. The student under patronage of the Imam Khomeini Relief Committee and the Welfare Organization are exempted from payment of up to fifty percent (50%) of the said tuition. C- Government is authorized to grant credit facilities in the form of long-term loan to the Students’ Welfare Fund so that a segment of the students of the programs indicated in Item (B) of this Article and the students of universities and the public and non-public educational institutions and the Payam-e Noor University, with the exception of certain courses, who are unable to meet the tuition cost could take advantage of this loan and repay it gradually after graduation. The students under patronage of the Imam Khomeini Relief Committee and the Welfare Organization and children of the disabled War-veterans with an intensity of twenty five percent (25%) and over, and the martyrs children and the children of the ex-prisoners of the War whose financial debility is certified by the concerned organizations will be exempted from paying any tuition. The Islamic Azad University and the non-profit (non-public) institutions of higher education, Payam-e Noor University and the evening programs will receive tuition for these students through the funds provided for in the annual budget for this purpose. D- Expenditure of the Payam-e Noor University will be financed through the tuition paid by the students, popular contributions and the funds allocated in the general budget. E- Government is authorized to grant subsidy on the facilities extended by banks, through the general budget, for the investment projects of the private sector in the areas of establishing and developing units of higher education on the condition that these projects meet the criteria and policies of the country’s higher education. Establishment of non-governmental and non-profit making schools for the purpose of developing scientific-applied programs at the baccalaureate level will receive priority in use of the said banking facilities. F- All students of the Islamic Azad University units and the centers controlled by these units whose accreditation have been approved up to the end of the year 1378 ( 20 March 1999)by the Board of Trustees shall equally enjoy all the facilities granted to the students of other universities. The units and the centers that will be approved by the Board of Trustees after 20 march 1999 must follow all the stages indicated in the university’s charter. ARTICLE 153- In order to improve the students’ welfare conditions and facilities, payment of subsidy and the government assistance should be reorganized in favor of the lower income students. At the same time the government contribution to the Students’ Welfare Funds and provision of welfare facilities to universities and institutions of higher education must be continued. In this connection: A- A portion of the Rial equivalent of the welfare facilities granted by the university to the student is considered as long-term interest-free loan (Gharzol-Hassaneh) from the welfare funds; and the users of the said services are bound to repay this loan in the form of long-term installments upon graduation. B- The proceeds of the above installments shall be used to bring about improvement in the welfare conditions and facilities such as dormitories for the qualified students. C- Graduates of the daily programs of the public universities who intend to leave the country prior to the completion of their service obligations (subject of the Law of Provision of Necessities and Facilities for Education of the Iranian Pupils and the Youth enacted on 20/07/1974 and amended on 21/101979 must, prior to their departure, pay off their educational expenses, or make necessary arrangement to repay the same. The out-of-the-country holders of scholarship from the government agencies who have given sufficient security pledge to return home are exempted from this provision. The by-law of this Article shall be proposed jointly by the Ministry of Science, Research and Technology and Ministry of Health, Medicare and Medical Education, and shall be approved by the Cabinet. ARTICLE 154- In order to facilitate the utilization of the specialized and technical capacity of the academic faculty of the universities and institutions of higher education, and to reorient the university research works toward the country’s scientific and specialization needs: A- Universities and institutions of higher education and research centers are authorized to take measures in compliance with the following premises to form public companies in order to render scientific, research and technical services under especial regulations and in conformity with the commercial code: 1- The services of these companies should be exclusively confined to the realm of research, scientific inquiries and technical services not undertaken by the enterprises and institutions of the non-public sector, and will not deviate the university’s mandates from its main educational and research objectives. 2- A maximum of forty nine percent (49%) of the shares of these companies must be held by the academic staff, research experts, technicians and employees of the same university, institute of higher education and the research center. The shareholders and the relevant enterprises will be excluded from limitations imposed by the Law of Non-Intervention of the Ministers and the Members of the Parliament and the Government Employees from the State and Government Transactions, enacted on 16/01/1959. A model articles of association for each of the above enterprises in any university and institution of higher education and research center will be drawn up and recommended by the Plan and Budget Organization and shall be approved by the Cabinet. B- The manner of spending the current and special earmarked credits in the research programs of the universities and the research centers that are subject to the Law Concerning the Sanctions of the High Council of the Cultural Revolution in Connection with Composition of the Board of Trustees of the Universities and Institutions of Higher Education and Research enacted on 24/06/1997 and the Law of the Manner of Performing Financial and Transactional Duties of the Universities and Institutions of Higher Education and Research Centers enacted on 7/01/1991 will be merely subject to the said law and the pertinent by-laws, and are exempted from the provisions of the general laws and regulations of the governmental entities, barring article (31) of the Public Audit Law. The income derived as the result of the research services of the research centers will be accounted as the special revenue of the said centers.

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