Private Basic Education Vouchers Assistance Act

CONGRESS OF THE PHILIPPINES TWENTIETH CONGRESS First Regular Session HOUSE OF REPRESENTATIVES H. No. 4744 BY REPRESENTATIVES ROMUALDEZ (F.M.), ROMULO, MARCOS, ROMUALDEZ (A.J.), ACIDRE, YAP (EDVIC), ESCUDERO, RODRIGUEZ (R.), RODRIGUEZ (M.), LUISTRO, TEODORO, CO-PILAR, MACEDA, VILLAFUERTE (M.L.), VILLAFUERTE (V.R.L.), HORIBATA, RIDON, DIMAGUILA, YAP (ERIC), PRIMICIAS-AGABAS, YULO, QUANO-DIZON, CRUZ (R.), RAMA, OLIVAREZ, FRESNEDI, ADIONG, CRUZ (A.P.), ROMAN, LEVISTE, GATCHALIAN, ROQUE, AMATONG, DIORNO, RECTO, VELOSO-TUAZON, BENITEZ (J.M.), MERCADO-REVILLA, LAZATIN, MARQUEZ, TUPAS, LABADLABAD, FERRER (A.), SAGARBARRIA, ALANO, PLEYTO, RODRIGUEZ (E.), GONZALES (A.M.), VERGARA, GONZALES (C.S.), LACSON, QUIMBO, LAGBAS, ANGELES, VALERIANO, CHAN, CHUA, DE JESUS, SINGSON-MEEHAN, SUANSING (M.A.), BARONDA, ACOSTA, TEVES, ERICE, DAGOOC, CENDAÑA, TINIO, GARCIA (A.), FUENTEBELLA, SINGSON (R.V.), BONDOC, TAN (K.M.), HERNANDEZ (F.), LAGDAMEO (M.Y.M.), ONGCHUAN, MOMO, ALVAREZ (J.), TAN (J.), CORVERA, HERNANDEZ. (C.A.), GONZALES (A.), PANCHO, CELESTE, BAUTISTA (C.), POE, ESPINA, YAP (C.), MATUGAS, TALLADO, BELTRAN, LAGDAMEO (J.M.), LORIA, ORETA, YATCO, CENIZA, REGENCIA, MACAPAGAL-ARROYO, CO (R.L.), SAN FERNANDO, ZUBIRI, BENITEZ (A.), CHUNGALAO, DOMOGAN, PUMAREN, ALBANO, ARENAS, DE VENECIA, AQUINO-MAGSAYSAY, PANALIGAN, GARCIA (K.H.), DEL MAR, TARRIELA, RIVERA, ANG, REVILLA (R.J.), PUNO, BAUTISTA-LIM, ROMUALDO, YU (J.K.), TOLENTINO, ORTEGA, KHONGHUN, DIONISIO AND GUTIERREZ AN ACT ESTABLISHING THE PRIVATE BASIC EDUCATION VOUCHER PROGRAM, PROVIDING FOR THE CREATION OF THE BUREAU OF PRIVATE EDUCATION, AND APPROPRIATING FUNDS THEREFOR, REPEALING FOR THE PURPOSE SECTIONS 2, 3, 4(2), 4(3), 5, 6, 7, 12, 14, AND 15 OF REPUBLIC ACT NO. 8545, OTHERWISE KNOWN AS THE "EXPANDED GOVERNMENT ASSISTANCE TO STUDENTS AND TEACHERS IN PRIVATE EDUCATION ACT", WHICH AMENDED REPUBLIC ACT NO. 6728, OTHERWISE KNOWN AS THE "GOVERNMENT ASSISTANCE TO STUDENTS AND TEACHERS IN PRIVATE EDUCATION ACT" Be it enacted by the Senate and House of Representatives of the Philippines in Congress assembled:

SECTION 1. Short Title. - This Act shall be known as the "Private Basic

Education Vouchers Assistance Act."

SEC. 2. Declaration of Policy. - It is the declared policy of the State to

protect and promote the right of all citizens to quality education at all levels, and take appropriate steps to make such education accessible to all. As part of its mandate, it is the State's policy to establish and maintain a system of scholarship grants, subsidies, and other incentives which shall be available to deserving students, as determined by

the guidelines, in both public and private schools, especially to the underprivileged. Likewise, the State recognizes the complementary roles of public and private educational institutions in the educational system and the invaluable contribution that the private schools have made and will make to education. The State shall provide the mechanisms to augment the resources and enhance the quality of private basic education, specifically promoting the complementary roles of public and private schools and thus recognize the government's priority of providing basic elementary and secondary education to all Filipino students.

SEC. 3. Coverage. - This Act shall cover all private basic education institutions

that receive government assistance in the form of vouchers for qualified students, teachers and schools. This covers all the years of basic education. The programs of assistance for students under this Act shall be extended only to citizens of the Philippines.

SEC. 4. Criteria for Voucher Assistance. - The programs for voucher

assistance shall be based on a set of criteria which include, among others, the following: (a) Criteria for Students. - The voucher assistance may be provided to students belonging to middle-income families and below, as determined by the Philippine Statistics Authority (PSA), who attended public schools identified by the Department of Education (DepEd) as congested or those living in areas with congested public schools or without a nearby public school who wish to enroll in private basic education schools. Families with students who are recognized as most vulnerable and underprivileged shall receive a higher voucher amount as determined by the Basic Education Assistance Council (BEAC), in accordance with Section 6(d) of this Act. For purposes of this Act, the DepEd shall include the definition and classification of "middle-income" and "vulnerable and underprivileged" in the implementing rules and regulations, under Section 17 of this Act: Provided, That the DepEd shall regularly review and update the definition and classification accordingly, in coordination with PSA, Department of Economy, Planning, and Development (DEPDev), and other key government agencies." (b) Criteria for Schools. - The participating private basic education schools shall receive assistance based on Quality Assurance under Section 6 of this Act, and with due regard to their geographic distribution and student enrollment, as determined by the BEAC: Provided, That schools with gaps in resources and facilities which are located in geographically isolated, disadvantaged, and conflict-affected areas (GIDCA), schools with the highest incidences of classroom congestion or multiple-shift operations, and schools situated in high-risk or disaster-prone areas, shall be exempted from the qualification criteria of geographic distribution and student enrollment. - 2 -

Private schools shall undergo the process of recognition and periodic assessment to be able to participate in the programs for voucher assistance: Provided, That the DepEd shall develop a system of prioritization that shall ensure and support the adequate participation of small and medium-sized private schools: Provided, further, That DepEd shall issue corresponding guidelines on the typology of private schools consistent with Section 12(j) of this Act."

SEC. 5. Empowering Student Choice. - The DepEd shall create a system

that allows students and parents to select their preferred schools from a registry of participating recognized schools, subject to availability of slots. The registry of participating recognized private basic educational institutions shall include their schools information, such as location, number of available slots, number of students per classroom and level, extra-curricular programs, current tuition fees, and top-up required in cases where the voucher amount is less than the tuition fee, among others.

SEC. 6. Quality Assurance. - The DepEd shall establish, operate and

maintain a system and mechanism for monitoring program outcomes to ensure accountability of participating recognized private basic educational institutions. This covers the following areas: (a) Improved Student Performance - Appropriate performance indicators to determine the extent and outcome of the government assistance and subsidies (GAS) programs including youth literacy rates, national and international assessment scores, among others. For this purpose, the National Achievement Tests or any national assessment examinations generally given by the DepEd shall be administered to all eligible students in all participating private basic education institutions; (b) Improved Student Outcomes - Tracer system to collect and evaluate the career and employment path of its graduates, including learner performance in the Comprehensive Rapid Literacy Assessment (CRLA), Rapid Math Assessment (RMA), Philippine Informal Reading Inventory (PHIL-IRI), and other similar assessments conducted by the DepEd; (c) School Performance - School performance data indicating the mean, median and mode of the scores of the students in the national examinations, and such other measures of quality education delivery, which shall be published by the DepEd and the participating schools regularly; and (d) Priority Subsidy for Underprivileged Students - Distribution of the GAS programs while ensuring that funding is equitably allocated following the order of priority groups.

SEC. 7. Other Forms of Assistance. - The following shall consist of

assistance to private basic education institutions and teachers participating in the voucher program under this Act: - 3 -

The forms of assistance granted to teachers in the participating recognized private basic education schools may include: (a) In-service training for teachers in private basic education schools; (b) Scholarships for qualified private basic education teachers enrolled in quality graduate programs; and (c) Participation in government-funded in-service training for basic education teachers. The DepEd may establish a program of assistance for the development of qualified recognized private basic education schools to cover the following areas of school operation: (a) Institutional development; (b) Organizational development; (c) Human resource development; (d) Curriculum and instructional development; (e) Research and planning; and (f) Facilities and school improvement. Consistent with Section 10 of Republic Act No. 10533, or the "Enhanced Basic Education Act of 2013," the DepEd, in consultation with the Department of Budget and Management (DBM), may develop other forms of financial arrangements and engage the services of private basic education schools based on the complementary roles of public and private institutions in the educational system.

SEC. 8. Basic Education Voucher Program. - Under the basic education

voucher program, kindergarten, elementary, and secondary students enrolled in recognized private basic education schools charging school fees shall be provided by the government with vouchers in such amount as may be determined by the DepEd: Provided, That the amount shall not be less than the amount currently provided by the DepEd: Provided, further, That the government shali reimburse the vouchers from the schools concerned within sixty (60) days from the submission of complete documents, as required by the BEAC, to the DepEd. The budget for the basic education voucher program shall be equitably allocated and distributed among all regions including the Bangsamora Autonomous Region in Muslim Mindanao (BARMM) based on official data sources including, but not limited to, congestion data and open seats, giving priority to underprivileged students: Provided, That pursuant to Section 2(V), Article V of the Bangsamoro Organic Law, - 4 -

the Bangsamoro Government shall exercise its authority over education for the areas under the BARMM and will directly implement the same program to be charged against their block grant: Provided, further, That the DepEd shall provide technical assistance in the implementation of the GAS Program, when necessary. Schools participating in the basic education voucher program may increase 7. tuition on the condition that seventy percent (70%) of the amount of the tuition increases shall go to the payment of salaries, wages, allowances, and other benefits of teaching and non-teaching personnel, except administrators who are principal stockholders of the school, and may be used to cover salary increase as provided for in the collective bargaining agreements existing or in force at the time when this Act is approved and made effective. At least twenty percent (20%) of the tuition increases shall go to the improvement or modernization of buildings, equipment, libraries, laboratories, gymnasia and similar facilities and to the payment of other costs of operation. For this purpose, schools shall maintain a separate record of accounts for all assistance received from the government, any tuition increase, and the detailed disposition and use thereof, which record shall be made available for periodic inspection by the faculty, the non-teaching personnel, students of the school concerned, and relevant government agencies.

SEC. 9. In-Service Training or Inset. - For the purpose of improving the

quality of teaching in private basic education, the DepEd may propose allocation, in its annual budget, for Inset programs for the upgrading of knowledge and teaching competencies in critical subject areas and for the modernization of teaching techniques and strategies, including training on the use of computers and of other multi-media educational technologies to assist instruction: Provided, That the amount available to private basic education shall not exceed the amount available to public basic education as per capita basis: Provided, further, That the training programs shall be approved by the DepEd.

SEC. 10. Teachers' Salary Subsidy. - The DepEd may propose allocation,

in its annual budget, for government subsidy to teachers in recognized private basic education schools participating in the programs of assistance under this Act: Provided, That the government shall provide the teachers with salary subsidy, to be determined, reviewed, and updated regularly by the DepEd, at least every three (3) years: Provided, further, That the government shall disburse payment within sixty (60) days after the close of the school year upon submission of proof of complete documents, including but not limited to qualification and actual teaching service, to the DepEd: Provided, furthermore, That the present allocation out of increases from tuition and other income shall be maintained: Provided, finally, That the salary subsidy received by the teacher shall form part of the exclusions from gross income in accordance with Section 32(B)(7)(e) of the National Internal Revenue Code of 1997, as amended.

SEC. 11. Institutionalization of Anti-Fraud Mechanisms in the

Expanded Government Assistance to Students and Teachers in Private Education (E-GASTPE). - DepEd shall adopt and implement robust anti-fraud safeguards, including but not limited to: - 5 -

(a) Centralized verification system for learner eligibility and participating school compliance; (b) Enhanced audit and monitoring protocols, including periodic field validations and inspections; (c) Whistleblower protection mechanisms to encourage reporting of irregularities; (d) Imposition of administrative and legal sanctions, including suspension, disqualification, reimbursement of funds, blacklisting, and prosecution, on any school, personnel, or individual found to have committed fraud; and (e) Long-term data sharing agreements with other government agencies for cross-validation and fraud prevention, among others. These measures shall be reviewed and updated regularly to ensure the continued integrity and effectiveness of the E-GASTPE Programs.

SEC. 12. Creation of the Bureau of Private Education. - The Bureau of

Private Education (BPE) under the DepEd shall be created to serve as the focal office for the administration, supervision, and regulation of all matters relating to private basic education institutions, including government assistance and subsidies. It shall be headed by a Bureau Director. It shall have the following powers and functions: (a) Monitor and assess the implementation of the private basic education institutions of the policies, plans, and programs established by the DepEd as recommended by BPE; (b) Set and enforce minimum standards for programs and institutions of learning, subject to public hearing; (c) Ensure that the activities, efforts, and performance of private basic education institutions shall meet the high standards of excellence and accountability; (d) Administer and implement the policies and programs related to the assistance and subsidies given by the government to students, teachers, and schools in private education; (e) Establish and support partnerships with individual private education institutions to respond effectively to the pressing needs of students and teachers, and to provide learning solutions to underserved communities; - 6 -

(f) Monitor and ensure compliance of private basic education institutions to the promulgated rules and regulations of the DepEd in all matters concerning private schools, including tuition fee increases; (g) Jointly formulate and implement a unified investment plan that indicates the complementary targets for voucher slots, for classroom construction and repair, for public-private partnerships, and other efforts to address congestion, with all relevant DepEd units, submitting the same to Congress for budgetary deliberations; (h) Regularly conduct or commission studies to assess the efficacy and efficiency of the voucher program, to inform refinements in policies and programs, including targeting, subsidy amounts, and learner supports; (i) Propose and implement developmental programs and grants to support the upgrading of quality of private schools, particularly small and medium-sized institutions; (i) Formulate and implement a typology or a system of classification of basic education private schools based on quantitative and qualitative standards, including, but not limited to, student enrollment size, specific clientele served (e.g. isolated and far-flung communities, indigenous peoples, mission schools, learners with special needs, gifted learners, etc.), as well as learner outcomes; (k) Devise a corresponding system of budgetary or fiscal allocation for assistance and development based on the typology of the schools under Section 120), and in consideration of types of learners served; and (1) Such other powers and functions as may be necessary for the effective and efficient implementation of this Act.

SEC. 13. Program Administration and Implementation. - The BEAC shall

be responsible for policy guidance and direction, monitoring and evaluation of new and existing programs while the Government Assistance and Subsidies Service (GASS) under the BPE shall be responsible for the day-to-day administration and implementation on the programs of assistance to private basic education. The BEAC shall be composed of the Secretary of the DepEd, as Chairperson, and the Secretary of the DEPDev and Secretary of the DBM as members. The alternate representative of the Chairperson shall possess the rank of an Undersecretary while the alternate representatives of the members shall possess the rank of not less than an Assistant Secretary in order to secure a quorum. The BEAC shall meet, from time to time, as the need arises, to assess the effectivity of the programs under this Act and to propose to Congress other forms of assistance to participating students and schools. - 7 -

The GASS shall serve as the permanent secretariat for the implementation of the government assistance and subsidies programs under this Act. The DepEd may engage the services of a third party co-implementor of the government assistance and subsidies program under this Act.

SEC. 14. Appropriations. - The amount necessary for the initial

implementation of this Act shall be charged against the current year's appropriation 9 of the DepEd. Thereafter, such amount shall be included in the annual General Appropriations Act.

SEC. 15. Penalties. - In case of violation of this Act by a private school, the

responsible officers under existing laws.

SEC. 16. Transitory Provision. - Subject to the availability of funds, the

implementation of the provisions stipulated in this Act for the kindergarten and elementary levels shall gradually commence in school year 2026-2027, as may be determined by the DepEd. Until such time as the DepEd has issued the necessary rules and guidelines for the proper implementation of this Act, but in no case later than five (5) years from its effectivity, the existing educational service contracting (ESC) program for the junior high school shall continue to be implemented.

SEC. 17. Implementing Rules and Regulations. - Within ninety (90) days

from the approval of this Act, the DepEd shall, in consultation with the DEPDev, the DBM, and other concerned stakeholders from the national associations of private basic education institutions, promulgate the rules and regulations implementing the provisions of this Act.

SEC. 18. Separability Clause. - If any provision of this Act is held invalid or

unconstitutional, the other provisions not so declared shall remain in full force and effect.

SEC. 19. Repealing Clause. - Sections 2, 3, 4(2), 4(3), 5, 6, 7, 12, 14, and

15 of Republic Act No. 8545, or the "Expanded Government Assistance to Students and Teachers in Private Education Act, which amended Republic Act No. 6728, or the "Government Assistance to Students and Teachers in Private Education Act," are hereby repealed. All other laws, decrees, orders and rules and regulations contrary to or inconsistent with the provisions of this Act are hereby repealed or amended accordingly. - 8 -

SEC. 20. Effectivity. - Notwithstanding the non-issuance of the implementing

rules and regulations, this Act shall take effect fifteen (15) days after its publication in the Official Gazette or in a newspaper of general circulation. Approved, - 9 -