Republic of the Philippines
HOUSE OF REPRESENTATIVES,
Quezon City

:VENTEENTH (17TH) CONGRESS
First Regular Session

House Bill NoVSEA

Introduced by: Rep. BERNADETTE R. HERRERA-DY

AN ACT
PROVIDING FOR FULL TUITION SUBSIDY IN STATE UNIVERSITIES AND
(GES, AND APPROPRIATING FUNDS THEREFOR

Explanatory Note

It is an established state policy for the State to “protect and promote the right of all
citizens to quality education at all levels, and shall take appropriate steps to make such
education accessible to all” and to “give priority to education, science and technology, arts,
culture, and sports to foster patriotism and nationalism, accelerate social progress, and promote
fotal human liberation and development.” In carrying out these established policies, the
Constitution directs the State to “felstablish and maintain a system of scholarship grants,
student loan programs, subsidies, and other incentives which shall be available to deserving
students in both public and private schools, especially to the under-privileged” and “shall
assign the highest budgetary priority to education and ensure that teaching will attract and
retain its rightful share of the best available talents through adequate remuneration and other
means of job satisfaction and fulfillment.

While great strides have been made in ensuring free or low-cost primary and secondary
education to Filipino families, tertiary education is a completely different story. Glaring
inequity in access to higher education continues to impede the Filipino’s right to education at
this pivotal level, In fact, according to the 2013 Annual Poverty and Indicator Survey (APIS),
half of college-age youngsters were unable to pursue higher education due to financial
constraints or the need to work and earn for the family. The financial difficulties of many
families that simply cannot afford to send their children to college deprives them of a powerful
tool to lift themselves out of poverty — a college degree. The latest Family and Income
penditure Survey (FIES) shows that a family headed by a college graduate has an average
family income more than two times larger than a family headed by a high school graduate
This, combined with studies showing more significant private returns on investment in higher
education compared to secondary education, demonstrated the singular power of higher

1 Section 1, Art, XIV, Constitution.

? Section 17, Art. Il, id.

3 Section 2(3), Art. XIV, id

4 Section 5(5), Art. XLV, id. (emphasis supplied)


a

education in improving economic outcomes for the neediest segments of our population. A
vicious cycle emerges in which those who would benefit the most from a college education are
prevented from obtaining one due to prohibitive costs.

This bill seeks to revolutionize education reform by introducing tuition-free tertiary
education, This bill borrows from and builds upon H.B. $905 filed during the Sixteenth
Congress.”

Institutionalizing tuition-free tertiary education in state universities and colleges
(SUCS) would increase access to the Philippine higher education system 0 the level of
developed countries that enjoy high human development indices. This legislation sceks to
provide for a full tuition subsidy for all current and future enrollees in SUCs. Qualified Filipino
citizens will be able to avail of the full tuition subsidy, provided they maintain good academic
and moral standing. The tuition fees to be paid by the students will instead be paid directly by
the government to the SUCs. This bill proposes to create a Special Tuition Subsidy Fund,
which shall be used solely for the purposes of implementing the full tuition subsidy. Tuition
fees for units enrolled by persons eligible for the tuition benefit under the provisions of this
bill, payable to state universities and colleges, shall be paid from this Fund, The Fund shall be
administered by the Commission on Higher Education. The bill requires the presidents of each
state university or college to submit to the Commission on Higher Education (CHED) reports
detailing the number of units enrolled by persons eligible for the full tuition subsidy in their
institution, as well as the tuition fee amount due based on the number of units enrolled. The
CHED shall ensure the full payment of tuition fees due to the state university or college, as
reported, no later than thirty (30) days after the submission or the report to the CHED. The bill
proposes that the amount of Ten Billion Five Hundred Million Pesos (P10,500,000,000) is to
be initially appropriated from the Presidential Social Fund to implement the provisions of
this bill, once passed into law. Thereafter, the bill provides that such amount necessary to
effectively carry out the objectives of this program shall be included in the annual General
Appropriations Act

In view of the foregoing, the approval of this bill is earnestly recommended

t \
INADETTE WeARE RA-DY

5 Filed by then Representative (and now Senator) Sherwin T. Gatchalian.


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City
SEVENTEENTH (17TH) CONGRESS:
First Regular Session

House Bill No, 0864
Introduced by: Rep. BERNADETTE R. HERRERA-DY

AN ACT
PROVIDING FOR FULL TUITION SUBSIDY IN STATE UNIVERSITIES AND
COLLEGES, AND APPROPRIATING FUNDS THEREFOR

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

‘TION I. Short Title. ~This Act shall be known as the “Free Higher Education Act

of 2017.

SEC. 2. Declaration of Policy. — It is hereby declared that accessible and quality
education is an inalienable right of the Filipino, Therefore, the State shall renew its
constitutionally mandated duly to make education its top budgetary priority by providing
tuition-free higher education courses in state universities and colleges.

SEC. 3, Full Tuition Subsidy. — AM Filipino citizens who are either currently enrolled
at the time of effectivity of this Act, or shall enroll at any time thereafter, in courses in
pursuance of a bachelor’s degree, certificate degree, or any comparable undergraduate degree
in any state university or college shall be exempt from paying tuition fees for any units enrolled
in any state university or college, unless they are disqualified under the provisions of this Act
or by any other provision of law,

SEC. 4, Exceptions. ~ The provisions of the next preceding Section of this Act
notwithstanding, the following are hereby disqualified and deemed ineligible for the full tuition
subsidy

a)

Persons who have already attained a bachelor’s degree or equivalent degree
from any higher education institution, whether public or private;

Persons who have been dishonorably discharged from any higher education institution,
whether public or private, for any reason other than financial difficulty in paying tuition
and other fees:

©) Persons who have been convicted of any crime involving moral turpitude; and

d) Persons who fail to regain good academic standing within their respective state
universities and colleges alter one (1) year upon being placed on academic probation or
delinquent status;

b


SEC. 5. Special Tuition Subsidy Fund ~The Special Tuition Subsidy Fund, hereinafter
referred to as the Fund, is hereby established, The Fund shall be used solely for the purposes
of implementing the full tuition subsidy under the provisions of this Act. Tuition fees for units
enrolled by persons eligible for the tuition benefit under the provisions of this Act, payable to
state universities and colleges, shall be paid from this Fund.

SEC. 6. Administration of the Fund. — The Fund shall be administered by the
Commission on Higher Education, with the following powers and functions:

a) Manage and administer the Fund;

b) Devise a reporting mechanism to be implemented by the state universities and coll
which will detail the exact amount of tuition fee subsidy availed of by persons eligible
for the full tuition, subsidy under this Act;

c) Formulate and implement an efficient and transparent mechanism to ensure the
payment of tuition fees to the respective state universities and colleges, pursuant to the
provisions of this Act, using money from the Fund;

d) Resolve and mediate disputes concerning the ineligibility or disqualification of
persons from the full tuition subsidy under the provisions of this Act or any other
provision of law; and

e) Any other powers or functions necessary for the implementation of the provisions of
this Act

SEC. 7. Tuition Report, ~ The President of each state university or college shall submit
to the Commission on Higher Education (CHED), within five (5) days after the last day of late
registration for cach semester, a report detailing the number of units enrolled by persons
eligible for the full tuition subsidy in their institution, as well as the tuition fee amount due
based on the number of units enrolled.

SEC. 8. Payment from Fund. ~The CHED shall ensure the full payment of tuition fees
due to the state university or college, as reported under the next preceding section of this Act,
no later than thirty (30) days after the submission or the report to the CHED: Provided, That
the CHED shall reserve the right to disallow the payment of any reported fees which are
anomalous or irregular, until further investigation has been conducted.

SEC. 9. Accountability Report, ~ At the end of each academic semester, the President
of each state university or college shall submit to the CHED a report reconciling the funds
received from the Fund. Any unused or improperly disbursed amount shall be returned
immediately to the Fund

SEC. 10. Midterm Report. ~ Starting during the first school year upon effectivity of this
Act, the CHED shall conduct a mandatory review and submit a midterm report to Congress as
to the status of implementation of this Act.

‘The CHED shall include among others, in this midterm report, the following key
metrics of access to and quality of public tertiary education

(a) Enroliment rate;
(b) Student demographics:
‘c) Graduation rate;
(d) Gross tuition receipts;


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(c) Disqualification and ineli

(f) Teachers’ welfare and training profiles;

(g) Adequacy of funding requirements; and

(h) Other educational quality indicators, including but not limited to physical learning
infrastructure, teacher-to-student ratio, and student housing.

11. Appropriations. ~ The amount of Ten Billion Five Hundred Million Pesos
(P10,500,000,000) is hereby initially appropriated from the Presidential Social Fund to
implement the provisions of this Act. Thereafter, such amount necessary to effectively carry
out the provisions of this Act shall be included in the annual General Appropriations Act

SEC, 12. Implementing Rules and Regulations. ~ Within (50) days from the effectivity
of this Act, the CHED shall promulgate the implementing rules and regulations necessary to
ensure the efficient and effective implementation of this Act.

SEC. 13. Separability Clause. ~ Should any part of this Act be declared
unconstitutional, the rest of the provisions of this Act shall continue to be in effect and
subsisting

SEC. 14. Repealing Clause. ~The provisions of other laws, decrees, executive orders,
rules and regulations inconsistent with this Act are hereby repealed, amended, or modified
accordingly.

SEC. 15, Effectivity, This Act shall take effect fifteen (15) days after its publication in
the Official Gazette and/or in at least two (2) national newspapers in general circulation.

Approved,