Republic of the Philippine
HOUSE OF REPRESENTATIVES
Quezon City

SIXTEENTH CONGRESS
First Regular Session

2785

House Bill No.

INTRODUCED BY REP. ROMAN T. ROMULO

EXPLANATORY NOTE

The 1987 Constitution provides that the State shall establish and maintain a system of
scholarship grants, student loan programs, subsidize schools, and provide other
incentives which shall be made available to deserving post-secondary and higher
education students, especially to the underprivileged, enrolled in both public and
private higher education institutions and technical-vocational institutes.

However, not all underprivileged students have the opportunity to avail themselves of
such financial assistance because of certain qualification requirements that have to be
met, Even if they get scholarships, grants or loans, some of the underprivileged student
do not always get to finish their education because of the lack of financial capability to
spend even for just their basic needs or for other education-related expenses.

To ease the financial burden of underprivileged students and help them cope with the
high cost of education on a day-to-day basis, this measure proposes to grant discounts
on basic services, such as food, medicines and transportation. It also seeks to give
them discounts on educational expenses, such as tuition, miscellaneous and other
school fees and board and books and school supplies.

Moreover, the bill raises the gross annual income requirement to not more than
300,000.00 to reach out to more beneficiaries considering that those who live below
the poverty line and have a lower gross annual income cannot even send their children
to college. In fact, a recent study conducted by the Philippine Institute for Development
Studies showed that the poor and near poor do not have the financial capability to send
their children to college. The National Statistics Coordinating Board 2009 Poverty
Statistics, which was released in February 2011, also revealed that only 2.8% students
from families living below the poverty line (comprising 3.8 million Filipino families or 26.5
percent) managed to obtain college education and a measly .6% managed to graduate
from college.


If the government was able to come up with a law giving discounts to senior citizens and
disabled persons, then it is also high time that it consider the plight of underprivileged
students who are the hope of the motherland.

In view of the foregoing reasons, immediate approval of this measure is earnestly
sought.

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ROMAN T. ROMULO
Representative
Lone District, Pasig City


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

Sixteenth Congress
First Regular Session

785

HOUSE BILL NO. 2

Introduced by Representative ROMAN T. ROMULO

AN ACT
GRANTING DISCOUNTS ON BASIC AND EDUCATIONAL SERVICES TO
UNDERPRIVILEGED STUDENTS IN HIGHER AND TECHNICAL EDUCATION

Be it enacted by the Senate and House of Representatives of the Philippines in
Congress assembled:

SECTION 1. Short Title. - This Act shall be known as the “Underprivileged
Higher and Technical Education Students’ Discount Act, -

SEC. 2. Declaration of Policy. It is the policy of the State to prioritize quality
education and take appropriate steps to make such education accessible to all

SEC. 3. Definition of Terms. As used in this Act, the following terms shall
mean:

(a) Underprivileged Higher and Technical Education Students refer to Filipino
students enrolled in post-secondary non-degree technical-vocational
courses and those enrolled in Bachelor's Degree Programs at the college
level, respectively, including beneficiaries of the Conditional Cash Transfer
or Pantawid Pamilyang Pilipino Program (4Ps), whose parents have a gross
annual income of not more than Three Hundred Thousand Pesos
(P300,000.00), subject to review by the National Economic and
Development Authority (NEDA) every three years. These also include
Filipino students who opt to take part-time jobs to subsidize their education
and whose income combined with the annual gross income of their parents
do not exceed Three Hundred Thousand Pesos (P300,000.00), subject to
review by the NEDA every three (3) years;

(b) Discounts refer to an amount deducted or counted off from the cost of
goods under basic services and from fees to be collected on education
services;


(c) Basic Services refer to basic necessities such as food for snacks and
meals and medicines; and

(d) Educational Services refer to education-related expenditures such as
tuition, miscellaneous and other school fees, books and school supplies.

SEC. 4. Discounts for Underprivileged Higher and Technical
Education Students. Underprivileged higher and technical education students
shall be entitled to the following:

(a) On Food Establishments. — A five percent (5%) discount shall be granted to
underprivileged higher and technical education students by food
establishments such as food chains, canteens and restaurants anywhere in
the country: Provided, That private food establishments may claim the cost
as allowable tax deduction from the gross income in the computation of the
income tax in accordance with the provisions of the National Internal
Revenue Code of 1997, as amended;

(b) On Medicines. - A five percent (5%) discount shall be granted to
underprivileged higher and technical education students by pharmacies or
drug stores anywhere in the country: Provided, That these pharmacies or
drug stores may claim the cost as allowable tax deduction from the gross
income in the computation of the income tax in accordance with the
provisions of the National Internal Revenue Code of 1997, as amended;

(c) On Textbooks and School Supplies. ~ A five percent (5%) discount shall be
granted to underprivileged higher and technical education students by
establishments anywhere in the country that sell reference books for
technical-vocational education and training and college and school
supplies: Provided, That these establishments may claim the cost as
allowable tax deduction from the gross income in the computation of the
income tax in accordance with the provisions of the National Internal
Revenue Code of 1997, as amended; and

(d) On Tuition Fees, Miscellaneous and Other School Fees. - A five percent
(6%) discount shall be granted to underprivileged higher and technical
education students by public and private schools accredited by the
Technical Education and Skills Development Authority (TESDA) and the
Commission on Higher Education (CHED), respectively, where they are
enrolled in, without prejudice to their right to avail themselves of other
educational assistance given by the school and the government, such as
the “Study Now, Pay Later Plan” under Republic Act No. 6728, “Discounts
to Disabled Students” under R.A. No. 9442 or the law amending the "Magna
Carta for the Disabled”: Provided, That the schools may claim the cost as
allowable tax deduction from the gross income in the computation of the
income tax in accordance with the provisions of the National Internal
Revenue Code of 1997, as amended.



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SEC. 5. Limitations. The discounts granted to an underprivileged higher and
technical education student under this Act may not be availed of under the
following circumstances -

4) If the higher education student:

(a) fails for one (1) semester in the majority of the academic subjects enrolled
in during the course of study, unless such failure is due to some valid cause
beyond the student's control;

(b) fails to finish the course within two (2) years from the time the student
should have graduated;

(c) stops schooling for one (1) semester; and

(d) is convicted of any crime.

2) If the technical education student:

(a) fails in the certificate/diploma course enrolled in, unless such failure is due
to some valid cause beyond the student's control;

(b) fails to finish the short-term technical-vocational course enrolled in;

(c) stops schooling; and

(d) is convicted of any crime.

SEC. 6. Role of the CHED. The CHED shall determine the qualified tertiary or
college beneficiaries under this Act through its Office of Student Services
(OSS). The CHED Chairperson shall include in the regular functions of the
OSS the following additional functions:

(a) To plan, implement and monitor yearly work programs, evaluate and submit
annual reports in pursuance of the objectives of this Act;

(b) To screen applicants, receive documentary proof, and identify who are the
eligible underprivileged tertiary students based on the provisions of this Act;

(0) To closely coordinate with the NEDA in determining the income brackets of
Filipino families for the purpose of identifying underprivileged college
students;

(d) To issue identification cards which shall be valid anywhere in the country as
proof of the eligibility of the underprivileged college students to avail
themselves of the discounts;

(e) To maintain and regularly update, on a quarterly basis, the list of
underprivileged college students who avail themselves of the discounts and
to review, evaluate and asses their academic standing;

(f) To cancel the identification cards issued for those disqualified under Section
5 of this Act;

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(g) To provide information to the affected establishments under Section 4 of this
Act for any questions regarding the eligibility of any underprivileged college
students claiming the discounts through the CHED website;

(h) To monitor the extent of implementation of this Act and to coordinate with
the concerned agencies regarding the imposition of penalties on violators of
this Act; and

(i) To perform such other functions as may be determined by the CHED
Chairperson

SEC. 7. Role of the TESDA. The TESDA shall be in charge of determining the
qualified post-secondary tech-voc beneficiaries under this Act through its
Office of Technical-Vocational Education and Training (TVET) Systems
Development Office (TSDO). The TESDA Director-General shall include in the
regular functions of the TSDO the following additional functions:

(a) To plan, implement and monitor work programs, evaluate and submit
annual reports in pursuance of the objectives of this Act;

(b) To screen applicants, receive documentary proof, and identify who are the
eligible underprivileged post-secondary students based on the provisions of
this Act;

(0)To closely coordinate with the NEDA in determining the income brackets of
Filipino families for the purpose of identifying underprivileged post-secondary
students;

(d) To issue identification cards which shall be valid anywhere in the country
as proof of the eligibility of the underprivileged post-secondary students to
avail themselves of the discounts;

(e)To maintain and regularly update, on a quarterly basis, the list of
underprivileged college students who avail themselves of the discounts and
to review, evaluate and asses their academic standing;

(f) To cancel the identification cards issued for those disqualified under
Section 5 of this Act;

(g) To provide information to the affected establishments under Section 4 of
this Act for any questions regarding the eligibility of any underprivileged
post-secondary students claiming the discounts through the TESDA
website;

(h) To monitor the extent of implementation of this Act and to coordinate with
the concerned agencies regarding the imposition of penalties on violators

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of this Act; and

() To perform such other functions as may be determined by the TESDA
Director-General in the implementation of this Act.

SEC. 8. Tax Incentives. Discounts granted by establishments to
underprivileged higher and technical students under this Act shall be treated as
allowable deduction from the gross income in the computation of the income
tax, in accordance with the provisions of the National Internal Revenue Code of
1997, as amended.

SEC. 9. Implementing Rules and Regulations. The CHED and TESDA, in
coordination with the NEDA, the Department of Social Welfare and
Development (DSWD), the Department of Health (DOH), the Department of
Trade and Industry (DTI), Department of Finance (DOF), and such other
agencies concerned with the establishments which may be affected by this Act,
shall issue the implementing rules and regulations to carry out the objectives of
this Act within thirty (30) days after this law takes effect.

SEC. 10. Penalties. The first violation of any provisions of this Act shall cause
the suspension of the license to operate or the business permit of the
establishment or person concerned for not less than one (1) week but not more
than four (4) weeks and a fine of not less than Twenty Thousand Pesos
(P20,000.00) but not more than Fifty Thousand Pesos (P50,000.00).

The second violation of any provisions of this Act shall cause the
suspension of the license to operate or the business permit of the
establishment or the person concerned for not less than four (4) weeks and a
fine of not less than Fifty Thousand Pesos (P50,000.00), but not exceeding Two
Hundred Fifty Thousand Pesos (P250,000.00): Provided, however, that the
procedure of notice and hearing shall have been complied with prior to the
imposition of the said penalties.

If the offender is a corporation, organization or any similar entity, the officers
thereof shall suffer the same penalty imposed on any person found violating
this Act.

SEC. 11. Enforcement. Pursuant hereto, the DTI, DOH, and local government
units (LGUs), in coordination with the CHED and TESDA, shall have the
mandate to implement the provisions of this Act. After filing of an appropriate
complaint, and after due notice and hearing, the proper authorities may also
cause the cancellation or revocation of the business permit, permit to operate,
franchise and other similar privileges granted to any business entity that fails to
abide by the provisions of this Act.


SEC. 12. Separability Clause. If any provision or part thereof is held invalid or
unconstitutional, the other sections or provisions thereof shall not be affected
thereby and shall remain in force and effect.

SEC. 13. Repealing Clause. All laws, executive orders, decrees, instructions,
rules and regulations contrary to or inconsistent with any provision of this Act
are hereby amended, repealed or modified accordingly

SEC. 14. Effectivity Clause. This Act shall take effect fifteen (15) days after its
publication in the Official Gazette or in a newspaper of general circulation.

Approved,