SIXTEENTH CONGRESS OF THE }
REPUBLIC OF THE PHILIPPINES )
FIRST REGULAR SESSION )

HOUSE OF REPRESENTATIVES

HOUSE BILL NO. 4468

INTRODUCED BY REPRESENTATIVE DAKILA CARLO E. CUA

EXPLANATORY NOTE

Early this year, the Commission on Higher Education (CHED) received
2,000 requests to increase tuition fees for the academic year of 2013-2014.
‘Three hundred requests were granted. In Metro Manila, about 100 education
institutions are set to increase their tuition fees giving much burden to the
families of ordinary wage earners.

‘The Philippine educational system has been largely affected by the
worsening condition of the economy. In 2011, some 376 private learning
institutions increased their tuition fees. For school year 2009-2010, more
than 50% of the private colleges and universities nationwide raised their
tuition fees. Ninety-Three of these schools that raised their tuition fees are
in Metro Manila.

‘The average tuition fee increase ranges from 10% in Region II and
CAR, in other Regions such as Region I and VII, it raised to about 15%. In
the National Capital Region, the average increase is 12%. State Universities
and Colleges charge lower tuition fees due to the fact that they receive
subsidy from the National Government. Although, the SUCs have received
the much-needed relief when the National Government increased its
subsidy, however, there should be an effective mechanism that will ensure
that no huge budgetary cuts would occur in the future.

State Universities and Colleges are confronted by similar problems as
that of private tertiary educational institutions. Poor education spending
and budget cuts like in the past force state schools to impose enrolment
quotas and increase fees, forcing many ‘skolar ng Bayan’ to leave.

The case of UP Manila student, Ms. Kristel Tejada has only proved
that education in the Philippines has become a commodity that only the
privileged especially the rich can afford. The State must now interfere in
order to ensure that quality education must be accessible to all.

This measure therefore aims to provide affordable access to quality
education by rationalizing or reasonably regulating tuition fee 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 serves as
the highest policymaking body on matters pertaining to tuition fee rates and
other increases or adjustments in school fees.

D. LO E. CUA


SIXTEENTH CONGRESS OF THE }
REPUBLIC OF THE PHILIPPINES )
FIRST REGULAR SESSION )
HOUSE OF REPRESENTATIVES

HOUSE BILL NO, _ 4468

INTRODUCED BY REPRESENTATIVE DAKILA CARLO E. CUA

AN ACT RATIONALIZING AND REGULATING TUITION AND OTHER
SCHOOL FEES IN ALL HIGHER EDUCATION INSTITUTIONS, CREATING
A TUITION FEE RATIONALIZING COUNCIL, AND FOR OTHER
PURPOSES

Be_it enacted by the Senate and the House of Representatives of the
Philippines in Congress assemble«

SECTION 1, Title. This Act shall be known as the “Tuition Fee
Rationalization Act of 2013”

SECTION 2. Declaration of Policy. - Section 1, Article XIV of the 1987
Philippine 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 II, further recognizes the role of the youth in nation-
building and promotes and protects their physical, moral, spiritual,
intellectual and social 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 Board of Regents of
State Universities and Colleges that is acceptable to concerned
stakeholders taking into account the socio-economic and other
considerations and safety nets.

SECTION 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 tertiary level. 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 (15%) 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 the students stated above but
all other years level including those to be imposed by the State Universities
and Colleges shall be subject to the approval of the National Tuition Fee
Rationalization Council 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 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, further, 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 or courses classified under Level III
Accreditation duly recognized by the Commission on Higher Education
(CHED), and the Technical Education and Skills Development Authority
(ESDA) as the case may be 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 or any rates increase
or adjustment with respect to the accredited programs/courses only and
subject to minimal and reasonable guidelines from the Council.

SECTION 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 tertiary level
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 tertiary level.

c. Board — shall refer to the governing board of the school, such as the
Board 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.

€. 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 National Service Training
Program (NSTP) 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 or technical vocational programs.

h. Level II Accreditation - shall refer to a classification conferred to an
institution or any of its program courses by a recognized accrediting
body based on certain quality indicators and standards duly
recognized by 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.

SECTION 5. Establishment of the National Tuition Fee Rationalization
Council and its 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
Chairperson of the CHED as Chair; the Director-General of the TESDA as
Vice-Chair; and with the following as members: Chairman of the House of
Representative’s Committee on Higher and Technical Education, Chairman
of the Senate Committee on Education, representatives from the National
Economic and Development Authority (NEDA), and the Philippine
Association of State Universities and Colleges (PASCU); one (1)
representative each from these sectors; parent, university or college student
council or government, campus publication, faculty association, leading
association of higher education institutions, major aggrupation of technical
education institution as well as other sectors which may be 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 CHED, the TESDA, NEDA Regional Director, and representatives from

5


the faculty associations, student council/government, and 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,
and the Director-General of the TESDA based on criteria that shall be
instituted for the purpose.

SECTION 6. Office and Expenditure. — Every member of the Council shall
serve in an ex-officio capacity without compensation from the government
except for travel and other actual expenses incurred in the performance of
their duties and responsibilities.

SECTION 7. Administration and Enforcement. - After due investigation
and proper observance of due process, any person, natural or juridical,
found willfully 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 of reasonable penalties and administrative fines.

SECTION 8. Penal Provisions. - Any person who shall willfully 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 (P50,000) nor more than One Hundred Thousand
Pesos (P 100,000) 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) but not more than One Million Pesos
(P1,000,000).

Pursuant thereto, the CHED and the TESDA shall be 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 attendance of witnesses and the
production of documents in connection with the charges presented.

SECTION 9. Implementing Rules and Regulations. ~ Upon the approval of
this Act and within 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.


SECTION 10. Separability Clause. - In case any provision of this Act or
portion thereof is declared unconstitutional by a competent court, other
provisions shall not affect thereby.

SECTION 11. Repealing Clause. - Any provisions 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.

SECTION 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,