Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

FIFTEENTH CONGRESS
First Regular Session

HOUSE BILL No. 313 5

Introduced by Reps. TEDDY A. CASINO, NERI JAVIER COLMENARES,
RAYMOND V. PALATINO, LUZVIMINDA C, ILAGAN RAFAEL V. MARIANO,
EMERENCIANA A. DE JESUS

EXPLANATORY NOTE

The passage of several tax measures by the 13" Congress has subjected our people to the double
whammy of lower incomes and higher prices, making it more difficult for most families to meet
even their most basic needs.

Among the basic needs given importance by most families
eat three mea

is education. This is why, even if they can
y, parents and working students often forego other needs just to pay for

In such a situation, the meteoric and unchecked rise of school fees in practically all private and
public educational institutions in the country further burdens our already suffering populace.

Private education, by virtue of the deregulation policy mandated by Batas Pambansa 232, has turned
into a very profitable business indeed. From 637 private higher education institutions (HEIs) in
1991, the numbers increased (0 1,523 in 2008. In fact, several private HEIs have been consistently
included in the ‘Top 1,000 Corporations of the country. The top five school-corporations earned, in
«span of six years, P15.43 billion in gross revenues and P3.45 billion in net income.

Unfortunately, the government agencies tasked to protect the public against schools engaged in
profiteering activities have failed miserably, as increases in tuition, miscellaneous and other
fees, some of which are collected redundantly, continue without regard to the suffering of the
students and their parents.

{he Commission on Higher Education's Memorandum Order 13 (CMO 13), series of 1998 was the
commission’s first attempt to check the unabated rise in tuition increases. ‘This was followed by
CMO 14, series of 2005, which allowed schools to automatically increase tuition by up to 7.6% even
without consultation. Through intense lobbying by student groups who viewed exemptions from
consultations as illegal and unconstitutional, CMO 14 was suspended and a new order was drafted
putting a cap on fee increases and making consultations mandatory for all fees. However, in
February 20, 2007, CHED abandoned the new draft memorandum and reinstated CMO 13 as the



guideline for all incre
increase and exemp

es in tuition. It should be noted that CMO 13 allows for an unlimited tuition
miscellaneous and other school fees from the consultation process. The
CHED chairman even admitted chat their action was the direct result of intense lobbying by school
owners to the President

According to CHED, 15.37% of 1,321 HEls applied for an increase in tuition fees in 2005 while this
vent, 390 of more than a quatter of HEIs applied and 339 o: the greenlight to
se tuition. From the nationa ¢ of P257.41 per unit Tuition increased
by 107.8% for A.Y. 2010-2011 and is now pepged at P501.22.

5% wel
ALY. 2001

Considering how important education is for our people and how costly it has become for them, it
will only be fair for government to ensure our citizen’s right to education by imposing a three-year
moratorium on all kinds of fee increases, whether tuition or other school fees, on all schools that
have registered a profit in the previous year. This is just t give our people some kind of relief,
considering that they have yet to feel the promised social payback from higher taxes,

By the end of the said moratorium, it is hoped that the government will already remedy the defects
of a deregulated education sector and provide the proper guidelines on school fee increases so that
the rights of students and parents are respected and properly observed,

In view of the foregoing, immedia

pproval of this measure is sought.

Approved,

ieee

fle
TEDDY A. CASINO.
Bayan Muna Party-list

RAYM Vv. PALATINO
Kaataan Party.

aguante, ¢
LUZVIMINDA C. ILA

Gabriela Women’s Pai

-_ q ;
WZ f Sexe g¥of
‘AEL V. MAI 1O EMERENCIANA A. DE JESUS
‘Anakpawis Party-list Gabriela Women’s Party



Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

FIFTEENTH CONGRESS
First Regular Session

HOUSE BILLNo, 3135

Introduced by Reps. TEDDY A. CASINO, NERI JAVIER COLMENARES,
RAYMOND V. PALATINO, LUZVIMINDA C. ILAGAN RAFAEL V. MARIANO,
EMERENCIANA A. DE JESUS

AN ACT
IMPOSING A THREE-YEAR MORATORIUM ON TUITION AND OTHER FEE
INCREASES ON ALL EDUCATIONAL INSTITUTIONS

Be it enacted by the Senate and the Hlonse of Repr

ies ofthe Philippines in Congress assembled:

SECTION 1. Declaration of Basic Policy- \tis the policy of the state to promote quality
education that is acce:
integrated education

ible to all and to establish, maintain and support a complete, adequate and
stem relevant to the needs of the Filipino people.

SECTION 2. Definition of Terms ~ as used in this Act, the following terms shall mean:

(a) “Private Educational Institutions” ~ any school, college, university, company or corporation
authorized by the state to grant education, either formal or informal; technical or non-technical;
vocational or non-vocational; and whose subsistence relies significantly in it gaining profits,
dividends or stocks from giving such.

(b) “Tuition” — is used to refer to the
institution. These are composed of spe
fees and technology

ges that all students pay to attend an educational
fic types: operating fees, building fees, services and activities

(c) “Miscellaneous and other school fee:
specific actual services rendered to students, a

additional charges other than tuition collected for
be identified by the school authorities and
certified by the recognized student council and faculty association such as but not limited to, medical
‘nd dental, athletic, audio-visual, guidance, insurance, laboratory fee, laboratory deposit, library
fee, school publication, registration, and such other fees that refer to services.



SECTION 3. Moratorium on School Fees - The Department of Education (DepEd)
Commission on Higher Education (CHED), and Technical Education and Skills Authority
(TESDA) are hereby mandated to impose a three year moratorium on any school fee increase,
whether it be tuition, miscellaneous and other school fees on all public and private educational
institutions.

SECTION 4, Exemptions - A private educational institution may apply for an increase in tuition
or other school fees, following existing rules and guidelines implemented by the DepEd, CHED and
TESDA, provided that on the year preceding the application for fee increases, said institution
posted incurred net losses as reflected in its complete annual financial statement, a copy of which
should be filed together with the application for exemption.

SECTION 5. Penalty Clause - Any educational instication found in violation of this Act shall be
punished with a fine of NOT LESS THAN 100,000 pesos (100,000 Php) and NOT MORE: THAN
500,000 pesos (500,000Php) or imprisonment of its officials OF NO'T MORE ‘THAN SIX (6)
YEARS or both, in the discretion of the court.

Misrepresentation or misde
violations this Act

ration of assets, incomes and liabilities shall be prima facie evidence of

SECTION 6. Repealing Clause ~ Ail laws, presidential dectees, executive orders, rules and
regulations ot parts thereof which are inconsistent with the provisions of this Act are hereby
repealed or modified accordingly.

SECTION 7. Separability Claus yy Part or provision of this Act shall be held
unconstitutional or invalid, other provisions hereof which are not affected shall continue to be in
full force and effect.

SECTION 8. Effectivity ~'his Act shall take effect fifteen (15) days after its publication in two
(2) national newspapers of general circulation.

Approved