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BY:

SEVENTEENTH CONGRESS
OF THE REPUBLIC OF THE PHILIPPINES )
First Regular Session )

HOUSE OF REPRESENTATIVES

861

House Bill No. __

REGIST TION UNIT
BILLS AND INDEX SERVICE

Introduced by Representative Victor A. Yap

EXPLANATORY NOTE

Section I, Article XIV of the 1987 Constitution mandates the protection and promotion of
the right of all citizens to quality and affordable education at all level and that the State shall take
approptiate steps to make such education accessible to all. However, there is yet to be a law to give
flesh to the application of this Constitutional provision to tuition fee increase. The current system
based on Republic Act No. 6139, “An Act to Regulate Tuition and other School fees of Private
Educational Institution, providing for the settlement of controversies thereon and for other
purposes”, which was passed in 1970, has become unresponsive given reported cases of irrational
tuition fee increases which contribute to the prohibitive cost of education, jeopardizing the access of
a wide majority to qualify education. Likewise, the law only defines the regulatory regime for tuition
fee increases in private educational institutions, leaving public educational institutions unregulated.

This Act aims to define a more responsive yet flexible policy regime for tuition fee increases.
First, as a general rule, tuition fee increases without any consultations must only be imposed on
incoming freshmen students in the tertiary level of education, provided that the increase shall not
exceed fifteen percent (15%) of prevailing rates. If the proposed tuition fee is in excess of this level,
and if this affects all other years, then it will be subject to consultations and the approval of the
National Tuition Fee Rationalization Council (NI'FRC), ‘The N'I'FRC shall be created under this
Act to be the highest policy-making body on mattets pettaining to tuition fee incteases, to ensure
that such are acceptable to stakeholders.

Further, this Act rationalizes the increase of other school fees, which shall be no more than
twenty-five percent (25%) of the amount collected as tuition fee for the semester to which the
student is currently enrolled. An imposition of more than 25% increase in other school fees shall be
subject to consultations and hearings and the examination of financial records and the determination
of the requiements and conditions of schools by the NTFRC.

To ensure effective implementation, this Act provides for the creation of a Regional Tuition

Fee Rationalization Council in all regions. Further, to strictly enforce compliance, violations of this

heme

VICTO
Representative, 2'H District of Tarlac

‘Act shall be subject to appropriate penalties.



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SEVENTEENTH CONGRESS )
OF THE REPUBLIC OF THE PHILIPPINES )
First Regular Session )

HOUSE OF REPRESENTATIVES

861

House Bill No. __~

Introduced by Representative Victor A. Yap

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

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

SECTION 1. Short Tithe — This Act shall be known as the “Tuition Fee Rationalizing Act of
2016."

SECTION 2. Devlaration of Policy. - Section 1, Article XIV of the 1987 Philippine Constitution
mandates the protection and promotion of the right of all citizens to quality and affordable
education at all level and that the Senate shall take appropriate steps to. make such education
accessible to all. Section 13, Article IJ, further recognizes the role of the youth in nation-building
and promotes and protects their physical, moral, spisitual, 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 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 sate fixing and/or tuition fee increase adjustments;

c. To establish a ‘Tuition Fee Rationalization Council which is envisioned to be a muti-

sectoral body that shall ser

as the highest policy-making body on matters pertaining to tuition fee

rates and other increases or adjustments in school fees; and

d. To provide an effective and rational mechanisms for fixing the tuition fee rates and
adjustments in other school fees in all 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) ‘Tuition Fess - As a general rule, public and private academic and

technical institutions shall be allowed to impose tuition fee increases and/or adjustments without


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any prior consultations, on incoming freshmen students in the tertiary level. ‘There shall be no

tuition fee increases and/or adjustments in all other year level.

‘The tuition fee increases which may be allowed to be imposed shall not exceed fifteen
percent (15%) of prevailing rates: Provided, however, That any proposed tuition fee increase
and/ot adjustment in excess of the stipulated percentage affecting not only segment of the students

stated above but all other years level including those to be imposed by the State Universities and

Colleges shall be subject to the approval of the National Tuition 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 twent

five percent (25%) of the amount collected as tuition fee

for the semes'

1 to which the student is currently enrolled: Provided further, That an imposition of
more than fifteen percent (15%) in tuition fees and owenty-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.

©) E
by the Commission on Higher Education (CHED), and the Technical Education and Skills

xemptions ~ Schools or courses classified under Level III Accteditation duly recognized

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 of any rates increases or adjustment with respect to the accredited

program /courses only and subject to minimal and reasonable guidelines from the Council.

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

Student — shall refer to any person enrolled in school in tertiary level, including those

entolled in vocational and technical education.

b, Sobol ~ shail refer to any academic institution of learning, public or private, offering any
or all courses in the tertiary.

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

4. Council ~ shall refer to the Tuition Fee Rationalization Council which shall serve as the
highest policy-making body on matters pertaining to tuition and other school fees and
which shall have regional counterparts for efficient rate fixing and determination.

€. Tuition - shall refer to the fee representing direct cost if instruction, training and other

related activities and the use of school facilities.


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£ Other school fees — shall refer to fees which cover other necessary costs supportive of
instruction, including but not limited to medical and dental, athletic, library, laborary and
National 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 ~ shall refer to a classification conferred to an institution or any of its
progtam courses by a recognized accrediting body based on certain quality of indicators
and standards duly recognized by the CHED or 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
Couneil (NTRFY
CHED as Chai

.C) shall be established to be composed of the following: the Chairperson of the

the Director-General of 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

ot 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 Tuition Fee Rationalization Council (RTFRAC) shall also be established in all the
regions of the country whose membership shall 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
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. Offve and Exxpenditur, - Every member of the Council shall serve in an ex-offia
capacity without compensation from the government except for travel and other actual expenses

incurred in the performance of their duties and responsibilities.


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SECTION 7. Administration and Enforcement, ~ After due investigation and proper observance of
due process, any person, natural or juridical, found wilfully violating any provisions of this Act and
its implementing rules, shall be subjected to the appropriate administrative sanctions, including the
suspension or revocation of the school’s license to operate, disqualification from enjoying tuition fee

rate increases or adjustment, and/or the imposition of reasonable penalties and administrative fines.

SECTION 8, Penal Provisions. ~ Any person who shall wilfully violate or commit any act intended to
defeat any provision of this Act, and its implementing rules, shall, upon conviction, be punished by a

than Fifty Thousand Pesos (P50,000.00) nor more than One Hundred Thousand

fine of not le
Pesos (P100,000,00) of imprisonment of not less than one (1) year nor more than five (5) years, or

both at the discretion of the court.

Any school found to have violated the provision of this Act and its implementing rules shall
be fined the amount of not less than Five Hundred Thousand Pesos (P500,000,00) but not more
than One Million Pesos (P1,000,000.00),

Pursuant thereto, the CHED and TESDA shall 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, sal/poena and subpoena duces
coum 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 shall formulate the rules and
regulations (IRR) to implement the provisions of this Act. Public hearings and consultation shall be

conducted to facilitate the drafting of the IRR.

SECTION 10. Separability Clause ~ In case any provision of this Act or portion thereof is declared

‘unconstitutional by @ competent court other provisions shall not affected thereby.

SECTION 11, Repealing Clanse

Any provision of laws, order, proclamations, rules and regulations,
or parts thereof, which ate inconsistent with any provisions of this Act are hereby repealed and

modified accordingly.

SECTION 12. Efictinity Clanse ~ This Act shall take effect fifteen (15) days after its publication in at

least two (2) newspapers or general circulation.

Approved,