Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City, Philippines

SIXTEENTH CONGRESS
First Regular Session

1522

HOUSE BILL NO.

INTRODUCED BY REP. MARCELINO “MARCY” R. TEODORO

EXPLANATORY NOTE
Article XIV of the Philippine Constitution declares:

“Section 1. The State shall protect and promote the right of alll citizens to quality
education at all levels and shall take appropriate steps to make such education
accessible to all.

Section 2, The State shall:
1. XXX
2. Xxx
3. Establish 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 the
underprivileged.”

Despite numerous attempts to implement educational reforms, programs and
projects to address the key issues of access and quality of basic education, relevance
and efficiency of the country's education system, many problems are still besetting the
education in the Philippines and it is basically poverty that hinders the access of many
Filipinos to education.

Thus, this bill seeks to lessen the financial burden of underprivileged college
students by giving them discounts on basic and education services.

Specifically, the proposal provides that underprivileged college students shall be
entitled to a five percent (5%) discount on food establishments, medicines, textbooks
and school supplies, tuition fees, miscellaneous and other school fees.

In view of the foregoing, approval of this bill is earnestly sought.

MARCELINO “MARCY” R. TEODORO,

Representative
1st District, City of Marikina


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City, Philippines

SIXTEENTH CONGRESS
First Regular Session

House BILL No.__1522

INTRODUCED BY REP. MARCELINO “MARCY” R. TEODORO

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 2013”.

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.

Seo. 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 nondegree 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 (3) 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 the basic necessities such as food for snacks and
meals and medicines.

(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 Tech-Voc
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 the public and private schools accredited by the Technical
Education and Skills Development Authority (TESDA) and the Commission on
Higher Education (CHED), 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 Republic
Act No. 9442 or the law amending the “Magna Carta for Disabled Persons’:
Provided, That these 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:


(a) If the tertiary student:

(1) fails for one (1) semester in the majority of the academic subjects
enrolled in during the course of the study, unless such failure is due to some
valid cause beyond the student's control;

(2) falls to finish the course within two (2) years from the time the student
should have graduated;

(3) stops schooling for one (1) semester; and

(4) is convicted of any crime.

(b) If the post-secondary student:

(1) fails in the certificate/diploma course enrolled in, unless such failure is
due to some valid cause beyond the student's control,

(2) fails to finish the short-term technical-vocational course enrolled in;

(3) stops schooling; and

(4) 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 assess their academic standing,

(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 college
student claiming the discounts through the CHED website;

(h) To monitor the extent of the 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:

(a) 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 assess their academic standing;

(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 post-
secondary student claiming the discounts through the TESDA website;

(h) To monitor the extent of the 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 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 the
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), the 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 Act takes effect.

Sec. 10. Penalties. — The first violation of any provision 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 that 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 provision 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, the DOH and local
government units (LGUs), in coordination with the CHED and the 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 hereof is held invalid
or unconstitutional, the other sections or provisions hereof 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,