MALACAŅANG
M a n i l a
PRESIDENTIAL DECREE No. 451 May 11, 1974
AUTHORIZING THE SECRETARY OF EDUCATION AND CULTURE TO REGULATE THE IMPOSITION OF TUITION AND OTHER SCHOOL FEES, REPEALING REPUBLIC ACT NO. 6139, AND FOR OTHER PURPOSES
WHEREAS, private schools, colleges and universities have been faced with increasingly serious problems arising from decreasing incomes due to slump in enrolment and increasing operational costs brought about by the rise in prices of instructional materials and educational, as well as allied services;
WHEREAS, it is imperative that private educational institutions upgrade classroom instruction by improving their facilities and hiring competent teachers in all levels of education, provide salary and or wage increases and other benefits to their teaching, administrative and other personnel to keep up with the increasing cost of living;
WHEREAS, the procedure prescribed under R.A. No. 6139 for the increase of tuition and other school fees has been proved to be too cumbersome and time-consuming, and is not conducive to the growth and improvement of private educational institutions and the well-being of their employees, particularly those in the lower income groups and
WHEREAS, in order to alleviate the sad plight of private schools, their personnel and all those directly and indirectly dependent on school incomes it advisable and necessary that the cumbersome and time-consuming procedures fixed under Republic Act No. 6139 for increasing tuition fees be simplified without opening the flood-gates to abuse of the right to increase tuition and other school fees.
NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the Philippines, by virtue of the powers vested in me by the Constitution do hereby decree and order the following as part of the law of the land:
Section 1. Authority of Secretary of Education and Culture. Within the limits and under the circumstances set forth in this Decree, the Secretary of Education and Culture shall have the authority to regulate the imposition of tuition and other school fees or charges by any and all private schools as defined under Act Numbered Two thousand seven hundred and six, as amended. No changes in the rates of tuition or other school fees or charges shall be effective without the prior approval of the Secretary of Education and Culture. New school fees or charges to be imposed by new or existing schools, whether for new courses or other matters, shall be at such reasonable rates as may be determined by the Secretary of Education and culture based on the standard of such school.
Section 2. Application and Documents Required. Any private school which desires to revise its rates of tuition or other school fees or charges or to impose other fees or charges shall file application therefor with the Secretary of Education and Culture. The application shall include:
(a) Statement of the itemized current rates of tuition and other charges and the corresponding itemized proposed changes thereon, as well as the new fees or charges proposed to be imposed, and of the proposed allocation of the incremental proceeds in accordance with Section 3(a) hereof. Such statements shall, when accomplished be under oath by the proper official (s) of the school concerned;
(b) Financial statement showing the financial status of the school duly certified by a certified public accountant;
(c) A copy of the last tax return, where required, filed with the Bureau of Internal Revenue.
Section 3. Limitations. The increase in tuition or other school fees or other charges as well as the new fees or charges authorized under the next preceding section shall be subject to the following conditions:
(a) That no increase in tuition or other school fees or charges shall be approved unless sixty (60%) per centum of the proceeds is allocated for increase in salaries or wages of the members of the faculty and all other employees of the school concerned, and the balance for institutional development, student assistance and extension services, and return to investments: Provided, That in no case shall the return to investments exceed twelve (12%) per centum of the incremental proceeds; and
(b) That any such increase shall in no case exceed fifteen (15%) per centum of the rates charged during the preceding school year.
Section 4. Rules and Regulations. The Secretary of Education and Culture is hereby authorized, empowered and directed to issue the requisite rules and regulations for the effective implementation of this Decree. He may, in addition to the requirements and limitations provided for under Sections 2 and 3 hereof, impose other requirements and limitations as he may deem proper and reasonable.
Section 5. Prohibitions. No school administration or office or division thereof shall hold or sponsor any benefit performance, movies, concerts, dramatic presentation, games and/or shows of whatever kind or nature whether for charity or otherwise. Any such act on the part of the school administration or office or division thereof shall be considered a circumvention of this law and shall be sufficient cause for the cancellation of the approval of any previous increase in tuition or other school fees and shall subject the school official concerned to such disciplinary action as the Secretary of Education and Culture may deem proper including the revocation on any decree conferred by authority of the Government.
Section 6. Review of Financial Statements. Financial statements submitted in accordance with the provisions of Section 2 hereof may be reviewed by the Commission on Audit at the instance of the Secretary of Education and Culture whenever he believes that the same is necessary for verification purposes. For this purpose, the Commission on Audit is authorized to examine the pertinent books and record of the school concerned.
Section 7. Additional Scholarships. As a further condition to any grant of increase in tuition or other school fees, private schools with a total enrolment of at least one thousand, are hereby required to provide free scholarships to poor but deserving students at the ratio of one (1) free scholarship for every five hundred (500) pupils/students enrolled: Provided, That this requirement shall be exclusive of the present practice of private schools offering scholarship privileges to valedictorians and salutatorians and other pupils/students who have achieved scholastic distinctions. Neither shall other forms of scholarships such as those offered to athletes and working students be included in arriving at the proper number of poor but deserving pupils/students to be given free scholarships.
Section 8. Penal Clause. Any violation of the provisions of this Decree or of the rules or regulations promulgated pursuant thereto or any final decision made by the Secretary of Education and Culture shall be punishable by a fine of five thousand (P5,000.00) pesos or imprisonment of two years or both at the discretion of the court which penalty shall be imposed on the official(s) of the private school or on any person acting for and in behalf of the school directly responsible for the violation. If the violator is a public official the same penalty shall be imposed without prejudice to any administrative action which may be taken against him.
Section 9. Repealing Clause. Republic Act No. 6139 is hereby repealed, and all laws, decrees, executive orders, directives and rules and regulations inconsistent herewith are likewise repealed, amended or modified accordingly.
Section 10. Effectivity. This Decree shall take effect immediately.
Done in the City of Manila, this 11th day of May, in the year of Our Lord, nineteen hundred and seventy-four.
DEC ISSUANCE
IMPLEMENTING RULES AND REGULATIONS FOR PRESIDENTIAL DECREE NO. 451
Pursuant to Section 4 of Presidential Decree No. 451, in relation to Section 1 thereof, the following implementing rules and regulations are hereby prescribed and promulgated for the guidance of all concerned:
RULE I
Policy and Scope
Section 1. Scope. The rules and regulations herein prescribed shall apply to all private schools, colleges and universities duly authorized or recognized by the Government.
Section 2. Authority to Regulate. The Secretary of Education and Culture has the authority to regulate any increase or change in the rate of tuition and/or other school fees or charges collected from pupils or students and/or their parents by all private schools, colleges and universities.
Any increase or change including new fees in private schools, colleges, and universities shall not be effective without the prior approval of the Secretary of Education and Culture.
Section 3. Purpose of Increase. As a general rule, the purpose or purposes for which any increase or change in the current rates of tuition and/or other school fees or charges of private schools, colleges and universities shall be to upgrade and update classroom instruction by improving their facilities and hiring competent teachers in all levels of education, provide salary and/or wage increase and other benefits to their teaching, administrative and other personnel to keep up with the increasing cost of living, and to grant student assistance and establish extension services.
Section 4. Effectivity of Increase. Unless otherwise provided, the effectivity of each approval of an application for increase or change in tuition and/or other school fees or charges, including new fees or charges, shall be specified and indicated on the action taken by the Secretary of Education and Culture.
RULE II
Definition of Terms
Section 1. Unless otherwise specifically defined the following terms shall be understood thus
a) Tuition fee covers the school charges for the subjects or course enrolled in by a pupil or student, as indicated in the respective prospectuses, colleges and universities, which may either be on a term or yearly basis or per unit or units.
b) Other school fees includes all miscellaneous fees charged to be charged by private schools, colleges and universities as embodied in their respective prospectuses, bulletins of information, or catalogues, which are collected and earmarked for certain specified purposes pursuant to existing laws, rules and regulations.
c) Current school fees means the tuition and other school fees collected or charged by private schools, colleges and universities as approved, indicated and published in their respective prospectuses, bulletins of information, or catalogues.
d) Increase in fees means any addition in the amount of the current tuition and/or other school fees as defined in subsections (a), (b), and (c) herein.
e) New fee or charge means those which are imposed by new schools or by existing schools which are not included in their public bulletin or catalogue.
RULE III
Application
Section 1. Period of Filing. For the school year 1974-75, each application for increase in tuition and/or other school fees or charges, including new fees or charges, together with all necessary supporting documents, shall be filed directly by mail or personal delivery to the Director of Private Schools in Manila.
Section 2. Contents. The application referred to in the preceding section shall indicate, among others, (a) the purpose and jurisdiction for the proposed increase in tuition and/or other school fees or other charges, (b) the itemized current rates of tuition fee or other school charges, (c) the corresponding proposed percentage increase, (d) the revised rates to be imposed or collected, (e) the proposed allocation and program of expenses to be effected if the petition is approved, and (f) the effectivity in point of school year on a term at which time the new rates shall be implemented.
Section 3. Notices. Application for increase in tuition fee and/or other school charges, or for new fees or charges, shall be announced by the school administration.
Section 4. Oath and Other Requirements. The application shall be signed by the school head, under oath, and shall include as annexes (a) copy of the financial statement showing the financial status of the school, college or university, duly certified correct by a licensed Certified Public Accountant; and (b) copy of the latest tax returns filed by the school, college or university with the Bureau of Internal Revenue, or in the negative, and lieu of the required tax returns, a corresponding statement relative thereto by the school head or his duly authorized representative; and (c) a certification by the school head to the effect that the application for increase has been announced.
RULE IV
Action on Application
Section 1. Delegation of Authority. The Director of Private Schools is hereby authorized to process and evaluate all applications for increase in tuition fee and/or other charges, including new school fees or charges, and to submit corresponding recommendations thereon to the Secretary of Education and Culture for appropriate action.
RULE V
Disposition of Proceeds from Increase
Section 1. Emoluments. At least sixty (60) per cent of the total incremental proceeds from the increase in tuition fee and/or other school charges shall be applied toward an equitable increase in the emoluments and/or benefits for members of the faculty, including the staff and administrative employees of the school, college or university concerned, a maximum of twelve (12%) per cent for return on investments, and the rest or twenty-eight (28%) per cent for institutional development, including the emergency allowance called for under LOI No. 174, are deemed embraced in the emoluments and/or other benefits for members of the faculty and staff.
Section 2. Percentage of Increase. The rate of increase in tuition and/or other school fees or charges shall in no case exceed fifteen (15%) per centum of the current school fees in the school, college, or university concerned during the next preceding school year.
Section 3. Scholarships. As a condition precedent for the grant of any increase in tuition and/or other school fees or charges, each school, college or university is required to provide free scholarships to poor but deserving pupils or students at the ratio of one (1) free scholarship for every five hundred (500) pupils/students enrolled: Provided, however, That the free scholarships herein called for shall be exclusive or in addition to any existing privileges internally granted by private schools, colleges and universities to class valedictorians, salutatorians, and other pupils/students who have achieved scholastic distinctions as well as other forms or kinds of scholarships such as those granted to athletes, working students, and other beneficiaries.
Section 4. Review of Financial Statements. The Secretary of Education and Culture, whenever he deems fit and necessary for verification purposes, may authorize and/or request a representative of the Commission on Audit, through its Chairman, to review the financial statements submitted pursuant to Section 2 of Rule III hereof, and to examine the pertinent books and records of the school, college or university concerned.
RULE VI
Miscellaneous
Section 1. Prohibitions. No school administration shall sponsor or hold any benefit performances, movies, concerts, dramatic presentations, games and/or shows of whatever kind or nature whether for charity or otherwise. Any such act on the part of the school administration shall be considered a circumvention of Presidential Decree No. 451 and shall accordingly be taken as sufficient cause for the cancellation of the latest approval of the increase in tuition and/or other school fees or charges of the school, college or university concerned granted by the Secretary of Education and Culture, if any, or a valid ground for the denial or disapproval of its application if one is pending consideration.
Section 2. Penal Provision. Pursuant to Section 8 of Presidential Decree No. 451, any violation of the law or any provisions of these Implementing Rules and Regulations, or any final decision made by the Secretary of Education and Culture shall be punishable by a fine of Five thousand pesos (5,000.00) or imprisonment of two (2) years or both at the discretion of the court, which penalty shall be imposed on the official(s) of the private school or any person acting for and in behalf of the school directly responsible for the violation. If the violator be a public official the same penalty shall be imposed without prejudice to any administrative action that may be taken against him.
Section 3. Repealed Clause. All existing rules and regulations inconsistent with the present Implementing Rules and Regulations are repealed, cancelled, revoked, or modified accordingly.
Section 4. Effectivity. These implementing rules and regulations shall be effective immediately.
Manila Philippines, May 13, 1974.
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