Republic of the Philippines
HOUSE OF REPRESENTATIVES
Batasang Pambansa, Quezon City

FIFTEENTH CONGRESS
First Regular Session

HOUSE BrLL'No.__ 4598

a

INTRODUCED BY REP, JOSEPH VICTOR G, EJERCITO

V——e———————— es

EXPLANATORY NOTE

The Philippine educational system has been largely affected by the
worsening condition of the economy. Last school year, some 376 private
learning Institutions Increased thelr tuition fees. For school year 2009-2010,
more than 50% of the private colleges and universities nationwide ralsed
their tuition fees. Ninety-Three of these schools that raised thelr tuition fees
are in Metro Manila.

The average tuition fee increase ranges from 10% in Region II and
CAR, in other Reglons such as Region I and VII, it raised to about 15%. In
the National Capital Region, the average increase Is 12%. State Universities
and Colleges charge lower tuition fees due to the fact that they receive
subsidy from the National Government. However, under the present
administration, as reflected in the General Appropriations Act of FY 2011,
State Universities and Colleges’ suffered huge budgetary cuts. This was
brought about by the policy of the government to reduce subsidy in higher
education in order to Increase the share of basic education. However, this
seems to run counter with the Constitutional mandate that the government
should provide quality and accessible education to all.

This measure therefore aims to provide affordable access to quality
education by rationalizing or reasonably regulating tuition fee increases in all
educational institutions and instituting an effective and rational mechanism
for fixing the tuition fee rate. It proposes the creation of Tuition Fee
Rationalization Council, envisioned to be a multi-sectoral body serves as the
highest policymaking body on matters pertaining to tuition fee rates and
other Increases or adjustments In school fees, .

Rep. JOSEPH VICTOR G. EJERCITO


Republic of the Phitippines
HOUSE OF REPRESENTATIVES
Batasang Pambansa, Quezon City

FIFTEENTH CONGRESS
First Regular Session

House BiLNo._ 4993 _

I

INTRODUCED BY REP, JOSEPH VICTOR G. EJERCITO

V—e——————

AN ACT RATIONALIZING AND REGULATING TUITION AND OTHER
SCHOOL FEES IN ALL HIGHER EDUCATION INSTITUTIONS,
CREATING A TUITION FEE RATIONALIZING COUNCIL, AND FOR
OTHER PURPOSES

SECTION 1. Title. This Act shall be known as the "Tultion Fee
Rationalization Act.”

SECTION 2. Declaration of Policy. - Section 1, Article XIV of the 1987
Phiilppine Constitution mandates the protection and Promotion of the right of
all citizens to quality and affordable education at ail evel and that the State
shall take appropriate steps to make such education accessible to all.
Section 13, Article II, further recognizes the role of the youth in nation—
building and promotes and protects their physical, moral, spiritual,
intellectual and social being. In view of these, the following are hereby
declared the objectives of this Act.

a. To promote affordable access to quality education by rationalizing
and/or reasonably regulating tuition fee rate and increases in all
educational institutions Including other fees;

b. To provide all educational institutions with accredited Program greater
flexibility and autonomy in tuition fee rate fixing and/or tuition fee
increase adjustments;

¢. To establish a Tuition Fee Rationalization Council which Is envisioned
to be a multi-sectoral body that shall serve as the highest poltcy-
making body on matters Pertalning to tuition fee rates and other
increases or adjustments in school fees; and

d. To provide an effective and rational mechanism for fixing the tuition
fee rates and adjustments in other school fees In alt educational
institutions including those to be adopted by the Board of Regents of
State Universities and Colleges that is acceptable to concerned
Stakeholders taking into account the socio-economic and other
considerations and safety nets.

SECTION 3. Coverage. - a) Tuitlon Fees - As a general rule, public and
private academic and technical institutions shail be allowed to impose tuition
fee Increases and/or adjustments without any prior consultations, on


incoming freshmen students in the tertiary level. There shail be no tuition
fee increases and/or adjustments in all other year levels.

‘The tuition fee increases which may be allowed to be Imposed shalt not
exceed fifteen percent (15%) of prevailing rates: Provided, however, That
any proposed tuition fee increase and/or adjustment in excess of the
stipulated percentage affecting not only the segment of the students stated
above but all other years tevel Including those to be Imposed by the State
Universities and Colleges shall be subject to the approval of the National
Tultion Fee Rationalization Council or its regional council having jurisdiction
and on a case-to-case basis.

b) Other School Fees - The amount of other school fees to be collected
from students in the freshmen level of the tertiary institutions, and from the
first grade and fifth In the elementary level shall in no way be more than
twenty-five percent (25%) of the amount collected as tuition fee for the
semester to which the student is currently enrolled: Provided, further, That
an imposition of more than fifteen percent (15%) in tuition fees and twenty-
five percent (25%) In the case of miscellaneous fees may be allowed after
the concerned schools shall have conducted thorough consultations and
hearings, and the examination of financial records and the determination of
the distinct requirements and conditions of schools shall have been assessed
by the Council.

c} Exemptions - Schools or courses classified under Level IIT
Accreditation duly recognized by the Commission on Higher Education
(CHED), and the Technical Education and Skills Development Authority
(TESDA) as the case may be and whose categorization standards are duly
affirmed by the major association of private and state institutions shall enjoy
autonomy In fixing the rates of their tuition fees or any rates increase or
adjustment with respect to the accredited Programs/courses only and
subject to minimat and reasonable guidelines from the Council,

SECTION 4. Definition of Terms. As used in this Act, the following terms.
shall mean:

a. Student - shall refer to any person enrolled in school in tertiary fevet
inctuding those enrolled in vocational and technical education.

b. Schoo! — shall refer to any academic institution of leaming, public or
Private, offering any or all courses in tertiary level.

¢. Board - shalt refer to the governing board of the school, such as the
Board of Directors, Trustees or Regents, which represents its highest
policy-making body.

a. Council - shall refer to the Tuition Fee Rationalization Council which
shail serve as the highest Policy-making body on matters pertaining to
tultion and other school fees and which shall have regional
counterparts for efficient rate fixing and determination.

e. Tuition ~ shall refer to the fee representing direct costs of instruction,
training and other related activities and the use of schoot facilities.

f. Other schoo! fees - shall refer to fees which cover other necessary
costs supportive of Instruction, including but not limited to medical and


dental, athletic, tibrary, laboratory and Nationa! Service Training
Program (NSTP) fees.

g. Tertiary - shall refer to the higher learning level after high school
which includes those offering Baccalaureate degrees or four (4) to five
(5) year courses or technical vocational programs.

h. Level IT Accreditation — shail refer to a classification conferred to an
institution or any of its program courses by a recognized accrediting
body based on certain quality indicators and standards duly recognized
by the CHED or the TESDA as the case may be, and prescribed by the
national accrediting arm of the major association of private and state
institutions.

SECTION 5. Establishment of the National Tuition Fee Rationalization
Council and its Regional Counterpart. — Within thirty (30) days after the
effectivity of this Act, the National Tuition Fee Rationalization Council
{NTFRAC) shalt be established to be composed of the following: the
Chairperson of the CHED as Chalr; the Director-General of the TESDA as
Vice-Chair; and with the following as members: Chairman of the House of
Representative’s Committee on Higher and Technical Education, Chairman of
the Senate Committee on Education, representatives from the National
Economic and Development Authority (NEDA), and the Philippine Association
of State Universities and Colleges (PASCU); one (1) representative each
from these sectors; parent, university or college student council or
government, campus publication, faculty association, leading association of
higher education institutions, major aggrupation of technical education
institution as well as other sectors which may be deemed indispensable by
the Council.

A regional Tultion Fee Rationalization Council (RTFRAC) shall also be
established in all the regions of the country whose membership shail include
the CHED, the TESDA, NEDA Regional Director, and representatives from the
faculty associations, student council/government, and association of private
schools and from a recognized association of State Institution.

The manner and procedure of selecting and appointing representatives
and/or members of the Council from the different sectors other than those
directly Identified shall be made jointly by the Chairperson of the CHED, and
the Director-General of the TESDA based on criteria that shall be instituted
for the purpose.

SECTION 6. Office and Expenditure. ~ Every member of the Council shail
serve In an ex-officio capacity without compensation from the government
except for travel and other actual expenses incurred in the performance of
their duties and responsibilities.

SECTION 7. Administration and Enforcement. - After due investigation
and proper observance of due process, any person, natural or furidical,
found willfully violating any provisions of this Act and its implementing rules,
shail be subjected to the appropriate administrative sanctions, including the
suspension or revocation of the school’s license to operate, disqualification
from enjoying tultion fee rate increases or adjustment, and/or the imposition
of reasonable penalties and administrative fines.

SECTION 8. Penal Provisions. -— Any person who shail willfully violate or
commit any act intended to defeat any provision of this Act, and its


Implementing ruies, shall, upon conviction, be punished by a fine of not less
than Fifty Thousand Pesos (P50,000) nor more than One Hundred Thousand
Pesos (P 100,000) or imprisonment of not less than one (1) year nor more
than five (5) years, or both at the discretion of the court.

Any schoo! found {Ikewise to have violated the provisions of this Act and
its implementing rules shall be fined the amount of not less than Five
Hundred Thousand Pesos (P500,000) but not more than One Million Pesos
(P1,060,000).

Pursuant thereto, the CHED and the TESDA shail be empowered to
Investigate violations of this Act as well as the Implementing rules and
regulations and other Issuances appurtenant thereto, and for this Purpose
shall have the power to issue summons, writs, orders, subpoena and
subpoena duces tecum to secure attendance of witnesses and the production
of documents in connection with the charges presented.

SECTION 9. Implementing Rules and Regulations. ~ Upon the approval
of this Act and within sixty (60) days after the Council shall have been
constituted, the Council! shail formulate the rules and regulations (IRR) to
implement the provistons of this Act. Public hearings and consultation may
be conducted to factfitate the drafting of the IRR.

SECTION 10. Separability Clause. — In case any provision of this Act or
portion thereof is declared unconstitutional by a competent court, other
Provisions shall not affect thereby.

SECTION 11. Repealing Clause. - Any provisions of laws, order,
proclamations, rules and regulations, or part thereof, which are Inconsistent
with any provision of this Act are hereby repealed and modified accordingly.

SECTION 12. Fffectivity Clause. - This Act shail take effect (15) days

following its publication in the Official Gazette or in at feast two (2)
newspapers of general circulation.

Approved,