SIXTEENTH CONGRESS OF THE +)
REPUBLIC OF THE PHILIPPINES — )
Second Regular Session )

HOUSE OF REPRESENTATIVES

: 4675

HOUSE BILL NO,__

Introduced by Representative Susan A, Yap

EXPLANATORY NOTE

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, However, since the passage of the
Constitution, there is yet to be a law to give flesh to the application of this provision to tuition fee
increase. The current system based on Republic Act No. 6139, An Act to Regulate Tuition and
other School Fees of Private Educational Institution, Providing for the Settlement of
Controversies thereon and for other Purposes, which was passed in 1970, has become
unresponsive given reported cases of irrational tuition fee increases which contribute to the
prohibitive cost of education, jeopardizing the access of a wide majority to quality education
Likewise, the law only defines the regulatory regime for tuition fee increases in private
educational institutions, leaving public educational institutions unregulated.

‘This Act aims to define a more responsive yet flexible policy regime for tuition fee
increases. First, as a general rule, tuition fee increases without any consultations must only be
imposed on incoming freshmen students in the tertiary level of education, provided that the
inerease shall not exceed fifteen percent (15%) of prevailing rates. If the proposed tuition fee is
in excess of this level, and if this affects all other years, then it will be subject to consultations
and the approval of the National Tuition Fee Rationalization Council-(NTFRC). The NTFRC
shall be created under this Act to, be the highest policy-making body on matters pertaining to
tuition fee inoreases, to ensure that such are acceptable to stakeholders.

Further, this Act rationalizes the increase of other school fees, which shall be no more than
twenty-five percent (25%) of the amount collected as tuition fee for the semester to which the
student is currently enrolled. An imposition of more than 25% increase in other school fees shall
be subject to consultations and hearings and the examination of financial records and the
determination of the requirements and conditions of schools by the NTFRC.

To ensure effective implementation, this Act provides for the creation of a Regional
Tuition Fee Rationalization Council in all regions. Further, to strictly enforce compliance,
violations of this Act shall be subject to appropriate penal provisions.

REP. SUS.
Second Distt

P
Tarlac



SIXTEENTH CONGRESS OF THE
REPUBLIC OF THE PHILIPPINES —__)
Second Regular Session )

HOUSE OF REPRESENTATIVES

HOUSE BILL No,_ 4675

Introduced by Representative Susan A. Yap

7
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 enacted by the Senate and the House of Representatives ofthe Philippines in Congress assembled:

SECTION 1. Short Tit, — This Act shall be known as the “Tustion Fee Rationalization Act of
2014.”

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 heteby declared the objectives of this Act:

a, To piomote 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;

¢ 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 incteases or adjustments in school fees; and

d. To provide an effective and: rational mechanisms 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 Regenis 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 of 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.

©) 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;

. Student. shall refer to any person enrolled in school in tertiary level including those enrolled

in vocational and technical education,

4, School. shall refer to any academic institution of learning, public ot private, offering any or all

courses in the tertiary.

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.

4. Council shall refer to the Tuition Fee Rationalization Council which shall setve as the highest
policy-making body on mattets 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 cost if instruction, training and other related
activities and the use of school facilities,

f Other sebool 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) fe:

4 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 ot technical vocational
programs,

b, Lew! Il Accreditation- shall refer to a cl

ssification conferred to an institution or any of its
program courses by a recognized accrediting body based on certain quality of 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 (NTRFAC) shall be established to be composed of the following: the Chairperson of the
CHED as Chair; the Director-General of 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
Ditector, and representatives from the faculty associations, student council/government, and
association of private schools and from a recognized association of State institutions.


‘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 x offi
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 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 of reasonable penalties and administrative fines,
,

SECTION 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
fing of not less than Fifty Thousand Pesos (P50,000.00) nor more than One Hundred Thousand
Pesos (P100,000.00) or both 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
tules shall be fined the amount of not less than Five Hundred Thousand Pesos (P500,000.00) but
not more than One Million Pesos (P1,000,000.00).

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
subporna duces fecum 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 affected thereby.

SECTION 11. Repealing Clause. — Any provision of laws, order, proclamations, rules and regulations,
ot parts thereof, which are inconsistent with any provisions of this Act are hereby repealed and
modified accordingly.

SECTION 12. Efctivity Clause. — This Act shall take effect fifteen (15) days after its publication in at
least two (2) newspapers of general circulation.

Approved,