Republic of the Philippines
HOUSE OF REPRESENTATIVES
‘Quezon City

SIXTEENTH CONGRESS
First Regular Session

H.B. No, 1498

Introduced by Congresswoman BELLAFLOR J. ANG RA-CASTILLO

EXPLANATORY NOTE

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

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

To ease the financial burden of underprivileged students . xd help them cope with the
high cost of education and daily school expenses, this measure pi poses to grant discounts on
basic services, such as food, medicine and transportation. Moreos 1, it also secks to give them
discounts on educational expenses, such as tuition, miscellan: 5us and other schoo! fees,
including books and school supplies.

Considering that we now have a law giving discounts to ‘ nior citizens, it is high time
that we consider the plight of our underprivileged students who a1_ our nation’s future.

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

sought.
2
willl hcktGetivn
Representative

Lone District, ¢ urora Province


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

1496

H.B.No._+

Introduced by Congresswoman BELLAFLOR J. ANG -RA-CASTILLO

AN ACT
GRANTING DISCOUNTS ON BASIC AND EDUCAT ON SERVICES TO
UNDERPRIVILEGED STUDENTS IN THE POST-SECON)ARY 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 tc 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-vocatiosal (Tech-Voc) courses and
those enrolled in Bachelor's Degree Programs at the collee 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 incom: 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 (2) 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 ser vices;

() Basic Services refer to basic necessities such as food for snacks and meals and
medicines; and

(d) Education Services refer to educatior-related expe ditures such as tuition,
miscellaneous and other school fees, books and school supp ies.

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

(a) On Food Establishments. - A five percent (5%) discount shall be granted to
underprivileged post-secondary and tertiary students by ‘ood establishments such as
food chains, canteens and restaurants anywhere in the country: Provided, That private
food establishments may claim the cost as allowable tex deduction from the gross
income in the computation of the income tax in accordan. e 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 claiin 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;

(©) 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-vocationa! education and. training and
college and school supplies: Provided, That these establish nents 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, - 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=

1) 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 valié 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 enr Iled in;

(c) stops schooling; and

(d) is convicted of any crime.

SEC, 6. Role of the CHED. The CHED shall determine th: qualified tertiary or collega
beneficiaries under this Act through its Office of Student Services (OSS). The CHED
Chairperson shall include in the regular functions of the ©5S 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 iventify who are the eligible
underprivileged tertiary students based on the provisions o: this Act;


(6) To closely coordinate with the NEDA in determining the income brackets of Filipino
families for the purpose of identifying underprivileged colle se students;

() To

e identification cards which shalll be valid anywhere 2 the country as proof of the
ty of the underprivileged college students to avail themselves of the discounts;

maintain and regularly update, on a quarterly basis, the list of underprivileged

college students who avail themselves of the discounts and «9 review, evaluate and asses
their academic standing;

(® To cancel the identification cards issued for those disqual fied under Section 5 of this
Act;

(g) To provide information to the affected establishments unde: Section 4 of this Act for any

questions regarding the eligibility of any underpri

leged 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 function* of the TSDO the following
additional functions:

a)

»)

C)

4)

8)

h)

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

To screen applicants, receive documentary proof, and ‘dentify who are the eligible
underprivileged post-secondary students based on the provisions of this Act;

To closely coordinate with the NEDA in determining the income brackets of Filipind
families for the purpose of identifying underprivileged post-secondary students;

To issue identification cards which shall be valid anywh/re in the country as proof of
the eligibility of the underprivileged post-secondary st dents to avail themselves of
the discounts;

To maintain and regularly update, on a quarterly basi’, the list of underprivileged
college students who avail themselves of the discounts and to review, evaluate and
asses their academic standing;

To cancel the identification cards issued for those dis-ualified under Section 5 of
this Act;

To provide information to the affected establishments under Section 4 of this Act for
any questions regarding the eligibility of any und privileged post-secondary
students claiming the discounts through the TESDA website;

To monitor the extent of implementation of this Act and to coordinate with the
concerned agencies regarding the imposition of penaliies on violators of this Act;
and

To perform such other functions as may be determined by the TESDA Director-
General in the implementation of this Act.


(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 penall

If the offender is a corporation, organization or any simil:r 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, ind 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, de-rees, 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 effec! fifteen (15) days after itt
publication in the Official Gazette or in a newspaper of general circulation.

Approved,