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Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

SEVENTEENTH CONGRESS
First Regular Session

HOUSE BILL No.4944

INTRODUCED BY REP. KARLO A. B. NOGRALES and
REP. JERICHO JONAS B. NOGRALES

EXPLANATORY NOTE

Education, in general, is regarded as the major contributor to the
improvement of living standards of the underprivileged. For many poor
Filipinos, education is a means to a better life."

With the current education reforms, particularly the K to 12 Program under
RA 10533 and the Unified Financial Assistance System for Tertiary Education
or the UNIFAST Act under RA 10687, the State is now faced with the
challenge to allocate enough resources to meet the current input gaps and to
translate these education reforms into concrete actions. Every year, the
government allocates the highest budget for education. A major development is
also the inter- agency collaboration in addressing the needs of the poorest
Filipinos through the Conditional Cash Transfer (CCT) program that requires
school attendance of children. However, even with this budgetary support, there
are still many Filipinos who remain unable to afford the full cost of education;
many Filipinos are in areas that are underserved due to tremendous geographical
barriers to access the schools, emerging climate change issues, continuing
threats to security and peace, and the long-standing marginalization of
indigenous peoples and those with disabilities. The problem does not exclude
those who are actually in school as there remains much to be desired when it
comes to the quality of education being provided.

Consistent with the constitutional mandate to protect and promote the right
of all citizens to quality and accessible education’, it is imperative to make sure
quality higher education is provided to all the deserving and qualified, and
providing more to the deserving and qualified poor in the form of subsidy to
cover the full cost of education. Such subsidy shall be made available to

* FA 2015
? Sec. 1, Art. XV, 1987 Philippine Constitution.


deserving and poor students in both public and private higher education
institutions as mandated by the constitution, no less*.

Given the current landscape in higher education where 1,706 are private
higher education institutions, which accounts to 54% of the total students
enrolled in higher education; and 228 are State Universities and Colleges
(SUCs) which accounts to 46% of the total student population in higher
education, it presents an opportunity to once and for all operationalize the
constitutional mandate of complementarity between public and private higher
education institutions‘. This complementarity is calculated to optimize the use
of government resources in reaching out to more student beneficiaries for higher
education.

In sum, this complementary role of Philippine higher education is
envisioned to be an instrument to expand access to quality education, enhance
the competencies of graduates and faculty, develop and foster excellence in all
institutions of higher learning, and enshrine ethical and innovative governance
in higher education.

WHEREFORE, in recognition of education as a universal right’, and in
line with the long-term and collective aspirations of Filipinos established by the
NEDA under Ambisyon Natin 2040, urgent passage of this bill providing for
free higher education for all, is earnestly sought.

KARLO A. B. NOGRALES JERI IONAS B. Ni LES

* Sec. 2 (1) and (3) supra.
* Sec. 4, (1) supra.

® article 26, The Universal Declaration of Human Rights (UDHR). Its a milestone document in the history of human rights.
Drafted by representatives with different legal and cultural backgrounds from all regions of the world, the Declaration was
proclaimed by the United Nations General Assembly in Paris on 10 December 1948 (General Assembly resolution 217 A) as
‘a common standard of achievements for all peoples and all nations.



Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

SEVENTEENTH CONGRESS
First Regular Session

HOUSE BILL NO. 4944

INTRODUCED BY REP. KARLO A. B. NOGRALES and
REP. JERICHO JONAS B. NOGRALES

AN ACT
PROVIDING FOR FREE QUALITY HIGHER EDUCATION AND
CREATING THE FREE QUALITY HIGHER EDUCATION VOUCHER
SYSTEM, AND APPROPRIATING FUNDS THEREFOR

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

SECTION 1. Short Title. — This Act shall be known as the “Free Quality
Higher Education Act of 2016.”

SECTION 2. Declaration of Policy. — The State shall protect and promote the
right of all citizens to accessible quality higher education through a system of
complementary public and private higher education institutions. Towards this
end, the State shall:

1. Give the highest budgetary allocation to education;

2. Provide subsidies which shall be available in both public and private
higher educational institutions;

3. Give priority to students who are financially challenged and academically
able;

4. Ensure the optimized utilization of government resources in education;

5. Recognize the complementary roles of public and private institutions in
the higher educational system.

Specifically, the delivery of quality and accessible higher education shall aim
to:

1) Stimulate the social and cultural transformation of the society;

2) Accelerate innovation and inclusive economic prosperity;


3) Pursue public-private complementarity by encouraging diversity and
increasing competition among higher educational institutions within a
level playing field; and

4) Align with the long-term and collective aspirations of Filipinos
established by the NEDA under Ambisyon 2040.

SECTION 3. Higher Education Voucher System (HEVS)- There shall be a
higher education voucher system for students in both public and private higher
education institutions under the Free Quality Higher Education Program. The
Higher Education Voucher (HEV) shall entitle the holder to quality higher
education in any qualified participating State University or College (SUC) or
Private Higher Education Institution (PHEI).

SECTION 4. Jmplementing Agency. The UNIFAST Board under
Republic Act 10687 shall be the lead agency tasked, in consultation with multi-
sectoral representatives which includes the academe and industry, to:

a. Identify the priority higher educational programs that will be subsidized
under this Act;

b. Provide the guidelines in the selection and accreditation of participating
SUCs and PHEIs to implement the HEVs and ensure equal opportunity
and access of the participating educational institutions;

c. Provide the guidelines or criteria for students to qualify for free quality
higher education vouchers;

d. Administer the Free Higher Education Voucher System; and

e. To manage the Free Higher Education Fund.

SECTION 5. Free Quality Higher Education Fund. ~ The Free Quality
Higher Education Fund, hereinafter referred to as the Fund, is hereby
established. The Fund shall be used solely for the purpose of implementing the
HEVS under the provisions of this Act.

SECTION 6. Free Quality Higher Education Voucher Value- The
Commission on Higher Education (CHED) shall be tasked to determine the
appropriate HEV voucher values upon consultation with the National Economic
and Development Authority (NEDA), Philippine Institute for Development
Studies (PIDS), industry groups, and other relevant sectors, based on a set of
criteria which shall include, among others:

1. tuition and other school fees charged by the participating
SUCS/PHEls,
2. the socioeconomic needs of each region,


3. the academic qualifications and the financial needs of the students and
the teachers, and the financial needs of the educational institutions;

4. level of quality of educational services delivered by the participating
SUCs and PHEIs, and

5. the geographic spread and size of student population.

The HEV values shall be subject to change upon periodic review of
CHED and after due consultation with stakeholders.

SECTION 7. Coverage of Subsidy. The amount of subsidy through the
HEV received by the state university or college (SUC) shall cover the full cost
of education. No other collections shall be made to the students. For private
higher educational institutions (PHEI), the amount of tuition and other fees not
covered by the HEV shall be determined and collected only in compliance with
consultation and other requirements under existing guidelines and procedures
for tuition and other school fees of the Commission on Higher Education.

A violation of this provision shall be a cause for disqualification of the
educational institution from participating in the implementation of the Higher
Education Voucher System under this Act.

SECTION 8. Appropriations. — Such amount necessary to effectively
carry out the provisions of this Act shall be included in the annual General
Appropriations Act.

SECTION. 9. Jmplementing Rules and Regulations. — Within sixty (60)
days from the effectivity of this Act, the CHED in consultation with the
Coordinating Council of Private Educational Associations (COCOPEA),
Philippine Association of State Universities and Colleges (PASUC),
Association of Local Colleges, and Universities (ALCU), all other concerned
associations and government agencies necessary to implement the provisions of
this Act.

SECTION. 10. Separability Clause. — Should any provision herein be
declared unconstitutional, the same shall not affect the validity of the other
provisions of this Act.

SECTION. 11. Repealing Clause. — All laws, decrees, orders, rules and
regulations, or other issuances or parts inconsistent with the provisions of this
Act are hereby repealed or modified accordingly.

SECTION. 12. Effectivity Clause. — This Act shall take effect fifteen (15)
days after its publication in the Official Gazette or in two (2) newspapers of

general circulation in the Philippines.

Approved.