OF THE PHILIPPINES
First Regular Session )

FIFTEENTH CONGRESS OF THE REPUBLIC)
)

Introduced by Senator Miriam Defensor Santiago

EXPLANATORY NOTE
The Constitution, Article 14, provides:

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

education accessible to all.

Section 2. The State shall:
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(2) Establish and maintain a system of fice public education in the

elementary and high school levels. Without limiting the natural right of parents to

rear their children, elementary education is compulsory for all children of school

age.

(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.

However, despite the mechanisms already implemented by the government like the
assistance given to students in private education provided in R.A. No. 6728, many Filipinos still
cannot afford'the rising cost of education, As a result, a substantial number of students take part-
time jobs to cover the expenses. Others cut their expenses on basic needs such as food, medicine,
clothing, and housing.

This bill aims to alleviate the burden of shouldering educational expenses placed on the
students. It gives discounts for college students, particularly those who belong to the

underprivileged class forced to take part-time jobs. The government instituted a similar discount

mechanism for assisting senior citizens in R.A. No. 7432."
,

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> This bill was drafted by the participants in the Summer sa Senado program, namely: Alfred de Guzman, Karlos
Entuna, Deona Laine Figura, Kenvyn Garcia, Michael Pernites. and Sandee Recabar.



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

ony £885

Introduced by Senator Miriam Defensor Santiago

. AN ACT
GRANTING DISCOUNTS TO UNDERPRIVILEGED COLLEGE STUDENTS ON BASIC
AND EDUCATION SERVICES

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 “Underprivileged College

Students Discount Act.”

SECTION 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.

SECTION 3. Definition of Terms. ~ As used in this Act:

(A) “Underprivileged College Students” refer to persons enrolled in the tertiary level who
are forced to tale part-time jobs to subsidize their education. It shall refer to a student, whose
annual gross income combined with the gross annual income of his parents, do not exceed One
Hundred Thousand Pesos (P100,000.00) subject to review by the National Economic and
Development Authority (NEDA) every three (3) years;

(B) “Secretary” refers to the Secretary of Education, Culture and Sports; and

(C) “Chairman” refers to the Chairman of the Commission on Higher Education.

SECTION 4. Discounts for the Underprivileged College Students. ~

(A) On Food Establishments — A five percent (5%) discount shall be granted to the
underprivileged college students by food establishments such as food chains, canteens,
restaurants anywhere in the country: Provided, that private food establishments may claim the

cost as tax credit;


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(B) On Transportation — A five percent (5%) discount shall be granted to the
underprivileged college students by any public vehicle operator anywhere in the country;

(C) On Medicines — A five percent (5%) discount shall be granted to the underprivileged
college students by pharmacies or drug stores anywhere in the country: Provided, that these
pharmacies or drag stores may claim the cost as tax credit;

(D) On Textbooks and School Supplies - A five percent (5%) discount shall be granted to
the underprivileged college students by establishments anywhere in the country, who sell
reference books for college and school supplies; Provided that these establishments may claim
the cost as tax credit; and

(E) On Tuition Fees, Miscellaneous, and Other School Fees — A five percent (5%)
discount on these fees shall be granted to the underprivileged college students by schools where
they are enrolled anywhere in the country, without prejudice to their right in availing of the other
educational assistance given by the government such as the “Study Now, Pay Later Plan under

R.A. 6728; Provided that the schools may claim the cost as tax credit.

SECTION 5. Limitation, - The right of any underprivileged college student to avail
himself of the discounts under this Act shall not apply:

(A) it he fails for one (1) school year in the majority of the academic subjects in which he
has enrolled during the course of his study unless such failure is due to some valid cause beyond
his control;

(B) if he fails to finish his course within two (2) years afler the year within which he
should have graduated;

(©) it he stops schooling for one (1) school year unless such is due to some valid cause
beyond his control; and

(D) ifhe is convicted of any crime.

SECTION 6. Office for Underprivileged College Student. — The Secretary and the
Chairman shall establish an Office for the Underprivileged College Students in the Commission
on Higher Education. The functions of this office are:

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(A) to plan, implement, monitor yearly work programs, evaluate, and submit annual
reports in pursuance of the objectives of this Act;

(B) to conduct investigation, receive documentary proof, and identify who are the eligible
underprivileged college students based on the provisions in this Act;

(C)-to maintain and regularly update on a quarterly basis, the list of underprivileged
college student to avail of the discounts;

(D) to issue certificates which shall be valid anywhere in the country as proof of the
eligibility of the underprivileged college student to avail of the discounts;

(to cancel the certificates issued for those covered under Section 5.

(B) to provide information with the affected establishments under Section 4 for any
questions regarding the eligibility of any underprivileged college students claiming the
discounts; and

(G) to perform such other functions as may be determined by the Chairman and the

Secretary in the implementation of this Act.

SECTION 7. Implementing Rules and Regulations, ~The Secretary and the Chairman, in
coordination with the National Economic Development Authority, the Department of Health,
Land Transportation Franchising and Regulatory Board, the Department of Trade and Industry,
Department of Budget and Management, and such other agencies concerned with the
establishments which may be affected by this Act, shall issue the necessary rules and regulations

to carry out the objectives of this Act.

SECTION 8. Penalties. - The first violation of any provision of this Act shall cause the
suspension af the license to operate or the business permit of the establishment or person

concemed for not less than one (1) week but not more than four (4) weeks.

SECTION 9. Appropriation. - The national government shall appropriate such amounts

as may be necessary to carry out the provisions and objectives of this Act.


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SECTION 10. Separability Clause. ~ If any provision or part thereof, is held invalid or
unconstitutional, the remainder of the faw of the provision not otherwise affected shall remain

valid and subsisting.

SECTION 11. Repealing Clause. ~ Any law, presidential decree or issuance, executive
order, letter of instruction, administrative order, rule or regulation contrary to, or inconsistent

with, the provisions of this Act is hereby repealed, modified, or amended accordingly.

SECTION 12. Effectivity Clause. — This Act shall take effect fifteen (15) days after its

publication in at least two (2) newspapers of general circulation.

Approved,