Panama Enacts New Law to Regulate Parent-Teacher Associations

Panama has introduced a new legal framework to govern parent-teacher associations (PTAs) in its public educational institutions. Law 544, published on July 21, 2026, establishes clear regulations for the organization, operation, responsibilities, and financial management of these associations. The legislation seeks to enhance the organized involvement of parents, guardians, and caregivers in educational processes. It also aims to foster more transparent, participatory, and student-centered school management.

Under the new law, every official educational center must establish a PTA as a non-profit civic organization supporting education. The Ministry of Education will maintain a publicly accessible registry of these groups, including their boards and contact information. PTAs will consist of a General Assembly, a Delegate Council, a Board of Directors, and oversight bodies. Their functions include collaborating with school activities, addressing student needs, promoting peaceful coexistence, and supporting projects that improve education and student well-being.

The law also introduces controls for financial administration. PTAs must open accounts at state banks, with checks requiring joint signatures from the president and treasurer. Cash handling is limited to a petty cash fund for urgent expenses, capped at 500 balboas. Funds can be used for student insurance, sports and cultural activities, school infrastructure improvements, educational materials, school canteens, professional services, graduation events, and aid for low-income students. The distribution of benefits must be equitable, and the selective favoring of specific groups is prohibited. All expenses require proper documentation.

Transparency is a key focus, with boards required to submit quarterly financial and management reports to the Delegate Council and semiannual reports to the General Assembly, school administration, and regional education authorities. These reports must also be published visibly or made accessible digitally. The legislation includes provisions for audits, internal controls, and sanctions for misuse of funds, election manipulation, conflicts of interest, and hiring family members of board members. It also prohibits the sale or transfer of institutional social media accounts.