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

Case Overview and Summary

Summary of Presidential Decree No. 451

Authority of the Secretary of Education and Culture
- The Secretary of Education and Culture has the authority to regulate the imposition of tuition and other school fees or charges by private schools. (Section 1)
- No changes in tuition or fees shall be effective without prior approval of the Secretary. (Section 1)
- New fees proposed by new or existing schools shall be at reasonable rates determined by the Secretary. (Section 1)

Application and Required Documents
- Private schools seeking to revise tuition or fees must file an application with the Secretary, including: (Section 2)
    - Statement of current and proposed rates, under oath (Section 2a)
    - Financial statement certified by a CPA (Section 2b)
    - Copy of the latest tax return filed with BIR (Section 2c)

Limitations
- At least 60% of the proceeds from the increase must be allocated for salary/wage increases of faculty and employees. (Section 3a)
- The balance shall be for institutional development, student assistance, extension services, and return on investment, which shall not exceed 12% of the incremental proceeds. (Section 3a)
- Any increase shall not exceed 15% of the rates charged during the preceding school year. (Section 3b)

Rules and Regulations
- The Secretary is authorized to issue rules and regulations for effective implementation. (Section 4)
- The Secretary may impose additional requirements and limitations. (Section 4)

Prohibitions
- School administrations are prohibited from holding benefit performances, movies, concerts, games, or shows of any kind, whether for charity or otherwise. (Section 5)
- Violation of this prohibition shall be grounds for cancellation of the approved increase and disciplinary action against the school official. (Section 5)

Review of Financial Statements
- Financial statements submitted may be reviewed by the Commission on Audit at the instance of the Secretary for verification purposes. (Section 6)
- The Commission on Audit is authorized to examine the pertinent books and records of the school. (Section 6)

Additional Scholarships
- As a condition for the increase, private schools with at least 1,000 total enrollment must provide free scholarships to poor but deserving students at a ratio of 1 free scholarship for every 500 students enrolled. (Section 7)
- This requirement is exclusive of existing scholarships for valedictorians, salutatorians, athletes, and working students. (Section 7)

Penal Clause
- Violation of the provisions, rules, regulations, or final decision of the Secretary shall be punishable by a fine of 5,000 pesos or 2 years imprisonment, or both, at the court's discretion. (Section 8)
- The penalty shall be imposed on the responsible school official(s) or person acting on behalf of the school. (Section 8)
- If the violator is a public official, the same penalty shall apply without prejudice to administrative action. (Section 8)

Repealing Clause
- Republic Act No. 6139 is repealed. (Section 9)
- All laws, decrees, executive orders, directives, and rules and regulations inconsistent with this Decree are repealed, amended, or modified accordingly. (Section 9)

Effectivity
- This Decree shall take effect immediately. (Section 10)