Republic of the Philippine
HOUSE OF REPRESENTATIVES
Quezon City

SIXTEENTH CONGRESS
First Regular Session

House Bill No,__3093

Mtroduced by: HONORABLE CZARINA D. UMALI

EXPLANATORY NOTE

It is the responsibility of the State to make all means of support available to
students especially to the underprivileged ones in order to ensure that they finish their
education, so they can better help in nation-building

Although mechanisms are in place for scholarships, loans, grants and other
support systems, these prove to be inadequate as most underprivileged students still
struggle with other financial woes like food, transportation, school supplies, etc., which
sometimes force them to drop out of schoo!

To further ease their burden on a day-to-day basis, this bill seeks to give
discounts on basic services, such as food, medicines and transportation to these
underprivileged "hope of the motherland’. 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.

Just like the Senior Citizen's Act that gives discounts to our senior citizens, a
similar law should also be enacted to benefit these underprivileged students whose
future is a responsibility of the state.

For this reason, the immediate approval of this bill is earnestly sought.

- ho f
CZARINA D. UMALI
Representative

3rd District, Nueva Ecija


REPUBLIC OF THE PHILIPPINES.
House of Representatives
Sixteenth Congress
First Regular Session

3093

HOUSE BILL NO. _

Introduced by: HONORABLE CZARINA D. UMALI

AN ACT GRANTING DISCOUNTS ON BASIC AND EDUCATION SERVICES.
TO UNDERPRIVILEGED STUDENTS IN THE POST-SECONDARY AND
TERTIARY LEVELS

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
Post-Secondary and Tertiary Students’ Discount Act of 2011."

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 Post-Secondary and Tertiary Students refer to Filipino
students enrolled in post-secondary non-degree technical-vocational (Tech-
Voc) courses and those enrolled in Bachelor's Degree Programs at the
college level, respectively, whose parents have a gross annual income of
not more than One Hundred Thousand Pesos (P100,000.00), 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 One Hundred
Thousand Pesos (P100,000.00), 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) Education Services refer to education-related expenditures such as tuition,
miscellaneous and other school fees. books and school supplies.

SEC. 4. Discounts for Underprivileged Post-Secondary and Tertiary
Students. Underprivileged post-secondary and tertiary students shall be entitled
to the following

(a) On Food Establishments. — A five percent (5%) discount shall be granted to
underprivileged post-secondary and tertiary 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 post-secondary and tertiary 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 post-secondary and tertiary 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
(5%) discount shall be granted to underprivileged post-secondary and
tertiary students by public and private schools accredited by the Technical
Education and Skills Development Authority (TESDA) and the Commission
‘on Higher Education, 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.


SEC. 5. Limitations. The discounts granted to an underprivileged post-
secondary or tertiary student under this Act may not be availed under the
following circumstances -

4) If the tertiary 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 post-secondary 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;

(c) 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;


(a) 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:

(2) 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;

(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
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;

(Q) 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 concemed 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 post-secondary and tertiary 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,