The House of Representatives approved on final reading on Monday a bill that seeks to impose sanctions on private elementary and high school educational institutions that prevent students from taking scheduled periodic examinations due to unresolved financial obligations.

Once enacted, House Bill No. 7584, also known as the "No Permit, No Exam Prohibition Act," will allow students in private basic educational institutions to take scheduled periodic examinations despite unpaid school fees, provided that the unpaid financial obligations are due to emergencies, force majeure (uncontrollable events), good cause, or other justifiable reasons.

To strike a balance between student welfare and the interests of private schools, the proposed proposal compels learners' parents or guardians to sign a promissory note for the settlement schedule prior to taking the examination.

The measure further states that payment deferment should not extend beyond the school year unless permitted by private basic education institutions.

Similarly, school authorities should have the authority to refuse the issuing of proper clearance and transfer credentials to elementary and secondary students who have outstanding financial commitments, as well as to refuse their enrollment in the following enrollment session, until all past delinquencies are settled.

Private basic education institutions that violate any provision of this Act will face administrative sanctions imposed by the Department of Education (DepEd) under its powers under Batas Pambansa 232 (Education Act of 1982) and Republic Act 9155 (Governance of Basic Education Act of 2001).

Meanwhile, parents, guardians, or students who are determined to have committed any act of fraud, deceit, or misrepresentation in order to obtain the benefits of this act will face administrative and disciplinary punishments from private schools.