House Bill No.

3708 (Tuition Moratorium Bill) AN ACT IMPOSING A THREE YEAR MORATORIUM ON TUITION AND OTHER FEE INCREASES IN ALL EDUCATIONAL INSTITUTIONS Introduced by KABATAAN Partylist Representative Raymond V. Palatino
Executive Summary The HB 3708 prescribes a Three-Year Moratorium on tuition and miscellaneous and other school-related fees in all basic, technical-vocational and higher education institutions including private educational institutions. It mandates the Department of Education, Commission on Higher Education and the Technical Education and Skills Authority to impose the moratorium on increases on any school fees in all public and private educational institutions. It aims to give economic relief to the increasing number of families who are struggling to send their children to school given the worsening social and economic conditions. Salient Features of HB 3708 The bill explicitly states that education is a state function and a fundamental right of the people. The Tuition Moratorium shall be absolute on public educational institutions. Should the need for funds arise for improvement or expansion of school facilities, the Government shall provide funds necessary through subsidies. Private schools may apply for an increase in fees given: 1.) Their institution have incurred substantial financial losses on the preceding year of the application, and 2.) They present to the proper government authority, the student body and recognized parents associations verified financial statements, declaration of assets and liabilities for the last five (5) years. An approved increase shall be limited to an amount that would cover financial losses verified from submitted financial records. The bill also seeks to protect the rights of teachers such that educational institutions may not refuse a salary increase within the period of the moratorium solely based on the legislated moratorium as justification. It also imposes an audit of tuition increases of the past ten (10) years to verify whether or not 70 percent of the increases went to the salaries of teachers as mandated by law. The House Bill seeks to severely penalize institutions who violate the moratorium. Violation of the moratorium shall result to a revocation of the license to operate or franchise granted by the government to the school, or a temporary take-over by the government of the school operations. Proper government authorities shall order a refund of the increase in the same semester when such increases were collected by the erring institution. Misrepresentation or misdeclaration of assets, incomes and liabilities shall be fined an amount between 100,000 to 500,000.