HOUSE OF REPHI TAT

BEG EIMGP

DATE:

Republic of the Philippines
HOUSE OF REPRESENTATIVES}
Quezon City BY:
SEVENTEENTH CONGRESS a
First Regular Session RPeSTRATION UNIT

BILLS 4\0 «UEX SERVICE
HOUSE BILL No. B38 93

Introduced by BAYAN MUNA.
Rep. CARLOS ISAGANI T. ZARATE

AN ACT
IMPOSING A THREE-YEAR MORATORIUM ON TUITION AND OTHER FEE
INCREASES (TOFI) ON ALL EDUCATIONAL INSTITUTIONS

EXPLANATORY NOTE

Among the basic needs given importance by most Filipino families is education. ‘This is why, even if
they can barely eat three meals a day, parents and working students often forego other needs just to
pay for their education, In such a situation, the meteoric and unchecked rise of school fees in
practically all private and public educational institutions in the country further burdens our already
suffering populace.

Private education, by virtue of the deregulation policy mandated by Batas Pambansa 232, has
INDEED tured into a very profitable business for many school owners. From 637 private higher
education institutions (HEIs) in 1991, the numbers increased to 1,523 in 2008. In fact, several private
HEIs have been consistently included in the Top 1,000 Corporations of the country. The top five (5)
school-corporations earned, in a span of six years, P15.43 billion in gross revenues and P3.45 billion
in net income.

Unfortunately, the goverment agencies tasked to protect the public against schools
engaged in profiteering activities have failed miserably, as increases in tuition, miscellaneous. and
other fees, some of which are collected redundantly, continue without regard to the suffering of the
students and their parents. In 2013, while state universities and colleges mulled the possibility of
imposing a tuition moratorium following the suicide of a cash-strapped University of the Philippines
student, CHED instead approved 354 or 78% of tuition increase petitions.

Since CHED imposed its Memorandum No. 3, series of 2012, under the Aquino administration,
students have been bombarded by year-by-year TOFI, with tuition rate having increased at an average
of P146.52, while other school fees at P587.35.



‘Keademic Year ‘Average ‘Average | Average ‘Average
Increase in| Increase in| Increase in | Increase in
Tuition (in | Tuition (in | Other School | Other
PHP/per %) Fees (in | School Fees
unit) PHP/per unit) | (in %)

2013 - 2014 37.45 351 194.62 758

2014 - 2015 35.66 8:13, 141.55 797

2015 - 2016 29.86 6.17 135.60 6.55,

2016-2017 43.55 5.10 115.58 SAL

Total Cumulated Increase [146.52 387.35

from AYs 2013-2017

Yet, if the intentions of the yearly increase in tuition rates are to augment the increase in payment of
wages, benefits for teaching and non-teaching personnel, improvement of facilities, and for
operational costs, the spike in profits of private HEIs under the previous Aquino administration is
strikingly doubtful. Far Eastern University, for instance, posted an 81-percent growth, from P713
million in 2010 to P1.08 billion in 2015. Lyceum of the Philippines, meanwhile, netted a 140-percent
profit growth, from P2726 million in 2010 to P657.6 million in 2015.

Tronically, students enrolled in state universities and colleges (SUCs) also face the same situation.
According to the Department of Budget and Management, total tuition collection in SUCs has
increased by 55 percent, from P5.3 billion in 2010 to P8.1 billion in 2015. Meanwhile, collection from
other school fees is also increasing faster, with SUCs posting an 83 percent increase in total other
school fee collection in the past five years, from P2.6 billion in 2010 to P4.7 billion in 2015.

With such incessant increases, students are forced to recuperate from such costly tuition, opting to
work abroad instead of serving our own country. Moreover, with K-12 now fully implemented, such
would mean added burden to parents and students who, before K-12, barely could even make ends
mect just to finance their education.

Considering how important education is for our people and how costly it has become for them, it will
only be fair for government to ensure our citizen’s right to education by imposing a three-year
‘moratorium on all kinds of fee increases, whether tuition or other school fees, on all schools that have
registered a profit in the previous year. Unfortunately, former Pres. Benigno Aquino and CHED Chair
Patricia Licuanan did not believe that education is a right, with the latter stating that not every student
should go to college.

‘With the imposition of a three-year moratorium, the Government shall be able to regulate the rather
uncontrollable spikes in tuition of educational institutions who, in the first place, did not even register
and incur net losses even before CHED and other regulatory bodies relentlessly gave go-signals to
increase tuition. More importantly, this would provide necessary relief to all students burdened by
these incessant tuition spikes.

By the end of the said moratorium, itis hoped that the government will already remedy the defects of
a deregulated education sector and provide the proper guidelines on school fee increases so that the
tights of students and parents are respected and properly observed.


‘This bill, originally filed in 2013 as House Bill 354 by Bayan Muna Representatives Neti Colmenares,
Carlos Isagani Zarate, ACT Teachers Rep. Antonio Tino and former Kabataan party-list Rep. Terry
Ridon, sought to impose a three-year moratorium on TOFI. Yet, three years since, CHED, in an ironic
fashion, again approved a total of 617 applications by private HEIs for TOFI, for academic years
2015-2016 and 2016-2017.

In view of the foregoing, immediate approval of this measure is sought.

Bayan MunarPariylist

Abpproed,


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

SEVENTEENTH CONGRESS
First Regular Session

HOUSE BILL No. 239 3

Introduced by BAYAN MUNA
Rep. CARLOS ISAGANI T. ZARATE

AN ACT
IMPOSING A THREE-YEAR MORATORIUM ON TUITION AND OTHER FEE
INCREASES (TOFI) ON ALL EDUCATIONAL INSTITUTIONS

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

SECTION 1. Declaration of Basic Policy- It is the policy of the state to ensure that education
shall always be a right. With this regard, the State shall promote quality education that is accessible to
all and to establish, maintain and support a complete, adequate and integrated education system
relevant to the needs of the Filipino people.

SECTION 2. Definition of Terms ~ as used in this Act, the following terms shall mean:

(@) “Private Educational Institutions” — any school, college, university, company or
corporation authorized by the state to grant education, either formal or informal; technical or non-
technical; vocational or non-vocational; and whose subsistence relies significantly in it gaining
profits, dividends or stocks from giving such.

(©) “Tuition” — is used to refer to the charges that all students pay to attend an educational
institution. These are composed of specific types: operating fees, building fees, services and activities
fees and technology fees.

(©) “Miscellaneous and other school fees”- additional charges other than tuition collected for
specific actual services rendered to students, as may be identified by the school authorities and
certified by the recognized student council and faculty association such as but not limited to, medical
and dental, athletic, audio-visual,

guidance, insurance, laboratory fee, laboratory deposit, library fee, school publication,
registration, and such other fees that refer to services.

SECTION 3. Moratorium on School Fees - The Department of Education (DepEd)
Commission on Higher Education (CHED), and Technical Education and Skills Authority
(TESDA) are hereby mandated to impose a three year moratorium on any school fee increase,


whether it be tuition, miscellaneous and other school fees on all public and private educational
institutions.

SECTION 4, Exemptions - \ private educational institution may apply for an increase in tuition
‘or other school fees, following existing rules and guidelines implemented by the DepEd, CHED and
‘TESDA, provided that on the year preceding the application for fee increases, said institution posted
incurred net losses as reflected in its complete annual financial statement, a copy of which should be
filed together with the application for exemption.

SECTION 5. Penalty Clause - Any educational institution found in violation of this Act shall be
punished with a fine of NOT LESS THAN 100,000 pesos (100,000 PHP) and NOT MORE THAN
500,000 pesos (500,000 PHP) or imprisonment of its officials OF NOT MORE THAN SIX (6)
YEARS or both, in the discretion of the court.

Misrepresentation or misdeclaration of assets, incomes and liabilities shall be prima facie evidence of
violations this Act.

SECTION 6. Repealing Clause ~All laws, presidential decrees, executive orders, rules and
regulations or parts thereof, such as CHED’s Memorandum No. 3, series of 2012, which are
inconsistent with the provisions of this Act are hereby repealed or modified accordingly.

SECTION 7. Separability Clause — If any part ot provision of this Act shall be held
unconstitutional or invalid, other provisions hereof which are not affected shall continue to be in
fall force and effect.

SECTION 8. Effectivity — ‘This Act shall take effect fifteen (15) days after its publication in two
(2) national newspapers of general circulation.

Approved,