FOURTEENTH CONGRESS OF THE REPUBLIC 
OF THE PHILIPPINES 
) 
7 &L -3 ’ i J‘ 
First Regular Session 
1 
) 
Introduced by Senator Ramon Bong Revilla, Jr. 
EXPLANATORY NOTE 
Our educational system has been largely affected by the worsening condition of 
the economy. Last school year, some 376 private schools increased their tuition fees. For 
school year 2001-2002, 400 out of 1,189 private colleges and universities (HEls) nation 
wide raised their tuition fees. This accounts to 34% of the total number of HEls, 
nationwide. Ninety-three of these schools or 23.25% of schools that raised their tuition 
fees are in Metro Manila. 
The average tuition fee increase ranges from 10% in Region 11 and C A R  to 15% 
in Region I and Region VII. In NCR, the average percent increase is 12%. Public colleges 
and universities charge lower tuition fees because they receive subsidy from the 
government. However, public colleges and universities are also in a tight financial fix 
because of drastic cuts in their budget in the last couple of years. This was brought about 
by the economic problems saddling the country and the policy of the government to 
reduce subsidy in higher education in order to increase the share of basic education. This 
seems to run counter with the Constitutional mandate that the government should provide 
quality and accessible education to all. . 
This bill therefore aims to provide affordable access to quality education by 
rationalizing and/or reasonably regulating tuition fee rates increases in all educational 
institutions and instituting an effective and rational mechanism for fixing the tuition fee 
rate. It proposes the creation of Tuition Fee Rationalization Council, envisioned to be a 
multi-sectoral body to serve as the highest policymaking body on matters pertaining to 
tuition fee rates and other increases or adjustments in school fees. 


FOURTEENTH CONGRESS OF THE REPUBLIC 
OF THE PHILIPPINES 
1 
7 
JUI- -3 
E’ 1 :I, 1 
) 
First Regular Session 
) 
SENATE 
S.B. No. 784 
Introduced by Senator Ramon Bong Revilla, Jr. 
AN ACT RATIONALIZING AND REGULATING TUITION AND OTHER 
SCHOOL FEES IN ALL HIGHER AND BASIC EDUCATION INSTITUTIONS, 
CREATING A TUITION FEE RATIONALIZING COUNCIL, AND FOR OTHER 
PURPOSES 
Be if enacted by the Senate and House of Representatives of the Philippines in 
Congress assembled: 
SECTION 1. Title.- This Act shall be known as the “TuitionFee Rationalization Act.” 
SEC. 2. Declaration of Policy. - Section 1, Article XIV of the 1987 Constitution 
mandates the protection and promotion of the right of all citizens to quality and 
affordable education at all level and that the State shall take appropriate steps to make 
such education accessible to all. Section 13, Article 11, fixther recognizes the role of the 
youth in nation-building and promotes and protects their physical, moral, spiritual, 
intellectual and social well-being. In view of these, the following are hereby declared the 
objectives of this Act. 
a. To promote affordable access to quality education by rationalizing and/or reasonably 
regulating tuition fee rate and increases in all educational institutions including other 
fees: 
b. To provide all educational institutions with accredited program greater flexibility and 
autonomy in tuition fee rate fixing and/or tuition fee increase adjustments; 
c. To establish a Tuition Fee Rationalization Council which is envisioned to be a multi- 
sectoral body that shall serve as the highest policy-making body on matters pertaining to 
tuition fee rates and other increases or adjustments in school fees; and 
d. To provide an effective and rational mechanism for fixing the tuition fee rates and 
adjustments in other school fees in all educational institutions including those to be 
adopted by the boards of State Universities and Colleges that is acceptable to concerned 
stakeholders taking into account socio-economic and other considerations and safety nets. 
SEC. 3. Coverage. - a) Tuition Fees- As a general rule, public and private academic and 
technical institutions shall be allowed to impose tuition fee increases and/or adjustments 
without any prior consultations, on incoming freshmen students in the secondary and 
tertiary level, and in the first and fifth grade in the elementary level only. There shall be 
no tuition fee increases and/or adjustments in all other year levels. 


The tuition fee increases which may be allowed to be imposed shall not exceed fifteen 
percent (1 5%) of prevailing rates: Provided, however, That any proposed tuition fee 
increase and/or adjustment in excess of the stipulated percentage affecting not only the 
segment of students stated above but all other years level including those to be imposed 
by State universities and Colleges shall be subject to the approval of the National Tuition 
Fee Rationalization Council and/or its regional council having jurisdiction and on a case- 
to-case basis. 
b) Other school fees- The amount of other school fees to be collected from students in the 
freshmen level of the secondary and tertiary institutions, and from the first grade and fifth 
in the elementary level shall in no way be more than twenty-five percent (25%) of the 
amount collected as tuition fee for the semester to which the student is currently enrolled: 
Provided, hrther, That an imposition of more than fifteen percent (15%) in tuition fees 
and twenty-five percent (25%) in the case of miscellaneous fees may be allowed after the 
concerned schools shall have conducted thorough consultations and hearings, and the 
examination of financial records and the determination of the distinct requirements and 
conditions of schools shall have been assessed by the Council. 
c. Exemptions - Schools and/or courses classified under Level 111 Accreditation duly 
recognized by the Commission on Higher Education (CHED), the Department of 
Education PepEd) and the Technical Education and Skills Development Authority 
(TESDA) as the case may he, and whose categorization standards are duly affirmed by 
the major association of private and state institutions shall enjoy autonomy in fixing the 
rates of their tuition fees andlor any rates increase or adjustment with respect to the 
accredited programs/courses only and subject to minimal and reasonable guidelines fiom 
the Council. 
SEC. 4. Definition of Terms. - As used in this Act, the following terms shall mean: 
a. Student- shall refer to any person enrolled in school in the elementary, secondary, and 
tertiary levels including those enrolled in vocational and technical education. 
b. School- shall refer to any academic institution of learning, public or private, offering 
any or all courses in the above mentioned levels. 
c. Board- shall refer to the governing board of the school, such as the hoard of directors, 
trustees or regents, which represents its highest policy-making body. 
d. Council- shall refer to the Tuition Fee Rationalization Council which shall serve as the 
highest policy-making body on matters pertaining to tuition and other school fees and 
which shall have regional counterparts for efficient rate fixing and determination. 
e. Tuition- shall refer to the fee representing direct costs of instruction, training and other 
related activities, and the use of school facilities. 
f Other school fees- shall refer to fees which cover other necessary costs supportive of 
instruction, including but not limited to medical and dental, athletic, library, laboratory, 
and citizens military training (CMT) fees. 
g. Tertiary- shall refer to the higher learning level after high school which includes those 
offering baccalaureate degrees or four (4) to five (5) year courses andlor technical- 
vocational programs. 
h. Secondary- shall refer to the middle segment in the educational system comprising a 
four-year program after attendance from elementaly or grade school level, 
i. Grade School- shall pertain to the level of education which constitutes four (4) years of 
primary learning and two (2) or three (3) years of intermediate training usually for 
children with age levels of 6-1 3 years. 
j. Level I11 Accreditation- shall refer to a classification conferred to an institution and/or 
any of its progradcourses by a recognized accrediting body based on certain quality 
indicators and standards duly recognized by the DepEd, the CHED or the TESDA as the 


case may be, and prescribed by the national accrediting arm of the major association of 
private and state institutions. 
SEC 5. Establishment of the National Tuition Fee Rationalization Council (TFRAC) 
and ifs Regional Counterpart. - Within thirty (30) days after the effectivity of this Act, 
the National Tuition Fee Rationalization Council (NTFRAC) shall be established to be 
composed of the following: the Chair of the CHED as Chair; the Secretary of the DepEd 
as co-chair; the Director-General of the TESDA as vice-chair; and with the following as 
members: representatives of the House of Representatives’ Committee on Higher and 
Technical Education and the Committee on Basic Education and Culture, the Senate 
Committee on Education, the National Economic and Development Authority (NEDA), 
and the Philippine Association of State Universities and Colleges; one (1) representative 
each from these sectors: parent, legitimately recognized students’ organizations, leading 
associations of private higher and basic education institutions, major aggmpation of 
technical education institution, faculty associations as well as other sectors which may he 
deemed indispensable by the Council. 
A regional Tuition Fee Rationalization Council (RTFRAC) shall also be established in all 
the regions of the country whose membership shall include the DepEd, the CHED, the 
TESDA, and NEDA regional directors, and representatives from the provincial school 
boards, faculty associations student councils, parent-teachers association (PTA), form the 
association of private schools, and from a recognized association of state institution. 
The manner and procedure of selecting and appointing representatives and/or members of 
the Council from the different sectors other than those directly identified shall be made 
jointly by the Chairperson of the CHED, the Secretary of the DepEd, and the Director- 
General of the TESDA based on a criteria that shall be instituted for the purpose. 
SEC. 6. Office and Expenditure. - Every member of the Council shall serve in an ex- 
offcio capacity without compensation from the government except for travel and other 
actual expenses incurred in the performance of their duties and responsibilities. 
SEC. 7. Administration and Enforcement. - M e r  due investigation and proper 
observance of due process, any person, natural or juridical, found wilfully violating any 
provisions of this Act and its implementing rules, shall be subjected to the appropriate 
administrative sanctions, including the suspension or revocation of the school’s license to 
operate, disqualification from enjoying tuition fee rate increases or adjustment, and/or the 
imposition ofreasonable penalties and administrative fines. 
SEC. 8. Penal Provisions. - Any person who shall wilfully violate or commit any act 
intended to defeat any provision of this Act and its implementing rules, shall, upon 
conviction, be punished by a fine of not less than Fifty thousand pesos (P50,OOO.OO) nor 
more than One hundred thousand pesos (Pl00,OOO.OO) or imprisonment of not less than 
one (1) year nor more than five ( 5 )  years, or both at the discretion of the court. 
Any school found likewise to have violated the provisions of this Act and its 
implementing rules shall be fined the amount of not less than Five hundred thousand 
pesos (P500,000.00) but not more than One million pesos (Pl,OOO,OOO.OO). 
Pursuant thereto, the DepEd, the CHED, and the TESDA shall he empowered to 
investigate violations of this Act as well as the implementing rules and regulations and 
other issuances appurtenant thereto, and for this purpose shall have the power to issue 
summons, writs, orders, subpoena and subpoena duces tecum to secure the attendance of 
witnesses and the production of documents in connection with the charges presented. 


SEC, 9. Implementing Rules and Regulations. - Upon the approval of this Act and 
within the sixty (60) days after the Council shall have been constituted, the Council shall 
formulate the rules and regulations (IRR) to implement the provisions of this Act. Public 
hearings and consultation may be conducted to facilitate the drafting of the IRR. 
SEC. 10. Separability Clause. - In case any provision of this Act or portion thereof is 
declared unconstitutional by a competent court, other provisions shall not be affected 
thereby. 
SEC. 11. Repealing Clause. - Any provision of laws, order, proclamations, rules and 
regulations, or part thereof, which are inconsistent with any provision of this Act are 
hereby repealed and modified accordingly. 
SEC. 12. Effectivity Clause. - This Act shall take effect (15) days following its 
publication in the Official Gazette or in at least two (2) newspapers of general circulation. 
Approved,