TSSEP 2014

Republic of the Philippine a
HOUSE OF REPRESENTATIVES a BY fN
Quezon City : Papel
SIXTEENTH CONGRESS
Second Regular Session

H.B. No, 9004

INTRODUCED BY REPRESENTATIVE BELLAFLOR J. ANGARA-CASTILLO

EXPLANATORY NOTE

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

However, not all deserving and underprivileged students who were able to get
scholarships, grants or loans get to finish their education because they lack the financial
capacity to spend for their basic needs or other expenses related to their schooling.

To ease the financial burden of underprivileged students and help them cope with
the high cost of education and daily school expenses, this measure proposes to grant
discounts on basic services, such as food and medicine. Moreover, it also seeks to give them
discounts on educational expenses, such as tuition, miscellaneous and other school fees,
including books and school supplies.

Considering that we now have a law giving discounts to senior citizens, it is high
time that we consider the plight of our underprivileged students who are our nation’s
future.

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

ee

BEI |. ANGARA-CASTILLO
Representdfive
Lone District, Aurora Province


16" CONGRESS OF THE PHILIPPINES)
REPUBLIC OF THE PHILIPPINES )
Second Regular Session )

H.8.No,__5004

INTRODUCED BY REPRESENTATIVE BELLAFLOR J. ANGARA-CASTILLO

AN ACT GRANTING DISCOUNTS ON BASIC AND EDUCATION SERVICES TO
UNDERPRIVILEGED STUDENTS IN ALL LEVELS, INCLUDING THOSE ENROLLED IN
TECHNICAL-VOCATIONAL (TECH-VOC) INSTITUTIONS.

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 Students’
Discount Act of 2014.”

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 Student refer to a Filipino student enrolled in basic education, post-
secondary non-degree technical-vocational (Tech-Voc) courses, and those enrolled
in Bachelor's Degree Programs at the college level, whose parents have a gross
annual income of not more than One Hundred Fifty Thousand Pesos (P150,000.00),
subject to review by the National Economic and Development Authority (NEDA)
every three years; provided that a Filipino student who opts to take part-time jobs
to subsidize the student's education and whose income combined with the annual
gross income of the student's parents do not exceed One Hundred Fifty Thousand
Pesos (P150,000.00), subject to review by the NEDA every three (3) years, is deemed
an Underprivileged Student;

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

SEC. 4. Discounts for Underprivileged Students. Underprivileged students shall be
entitled to the following:

(a) On Food Establishments. - A five percent (5%) discount shall be granted to
underprivileged 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


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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
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 (NIRC) of 1997, as amended;

(c) On Textbooks and School Supplies. ~ A five percent (5%) discount shall be granted
to underprivileged students by establishments anywhere in the country that sell
reference books 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 NIRC of 1997, as
amended; and

(d) On Tuition Fees, Miscellaneous and Other School Fees. - A five percent (5%)
discount shall be granted to underprivileged students by public and private schools
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 NIRC of 1997, as amended

(e) On Museums, Theaters and Cultural Events - A five percent (5%) discount shall be
granted to underprivileged students on entrance fees to museums, theaters, and
cultural events sanctioned by the National Commission on Culture and Arts
anywhere in the country: Provided, That private museums, theaters and producers
of cultural events 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 NIRC of 1997, as amended;

SEC. 5. Limitations. The DepEd, TESDA and CHED may identify grounds for
disqualification of students in availing the aforementioned discounts, in accordance
with the implementing rules and regulations of this Act. Provided, that these grounds
will not defeat the purpose of liberally granting such discounts to underprivileged
students.

SEC. 6. Roles of the DepEd and CHED. Qualified primary and secondary students, and
tertiary or college beneficiaries, shall be determined by the Department of Education
(DepEd) and the Commission on Higher Education (CHED), respectively. Both agencies
shall have the following functions:

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

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


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(c) To closely coordinate with the NEDA in determining the income brackets of Filipino
families for the purpose of identifying underprivileged primary, secondary and
college students, respectively;

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

(e) To maintain and regularly update, on a quarterly basis, the list of underprivileged
primary, secondary and college students who avail themselves of the discounts;

(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 primary, secondary
and college students claiming the discounts through the DepEd and CHED websites,
respectively;

(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 DepEd Secretary and
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
a. 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;

(c) 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
a. as proof of the eligibility of the underprivileged post-secondary students to
b. avail themselves of the discounts;

(e)To maintain and regularly update, on a quarterly basis, the list of underprivileged
post secondary 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
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 of
this Act; and,

(i)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 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 DepEd, CHED and TESDA, in
coordination with the NEDA, the Department of Social Welfare and Development
(DSWp), 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 DepEd, DTI, DOH, and local government
units (LGUs), in coordination with the CHED and TESDA, shall have the mandate to
ing 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.