Commission
on HigherEducation

Republic Act 7722
Higher Education Act of 1994

Republic of the Philippines
Congress of the Philippines
Metro Manila

Second Regular Session
Begun and held in Metro Manila, on Monday the twentysixth day of July, nineteen hundred and ninety-three.

REPUBLIC ACT NO. 7722
AN ACT CREATING THE COMMISSION ON HIGHER EDUCATION,
APPROPRIATING FUNDS THEREFOR AND FOR OTHER PURPOSESREPUBLIC ACT NO. 7722
AN ACT CREATING THE COMMISSION ON HIGHER EDUCATION,APPROPRIATING FUNDS THEREFOR AND FOR OTHERPURPOSES

Be it enacted by the Senate and House of Representatives ofthe Philippines in Congress assembled:
SEC. 1. Title. - This Act shall be known as the “Higher
Education Act of 1994”.
SEC. 2. Declaration of Policy. - The State shall protect,foster and promote the right of all citizens to affordable quality
education at all levels and shall take appropriate steps to ensurethat education shall be accessible to all. The State shall likewise
ensure and protect academic freedom and shall promote its
exercise and observance for the continuing intellectual growth,
the advancement of learning and research, the development ofresponsible and effective leadership, the education of high-leveland middle-level professionals, and the enrichment of ourhistorical and cultural heritage.
State-supported institutions of higher learning shall gear theirprograms to national, regional or local development plans.
Finally, all institutions of higher learning shall exemplify throughtheir physical and natural surroundings the dignity and beautyof, as well as their pride in, the intellectual and scholarly life.

SEC. 3. Creation of the Commission on Higher
Education. - In pursuance of the abovementioned policies, theCommission on Higher Education is hereby created, hereinafterreferred to as the Commission.
The Commission shall be independent and separate fromthe Department of Education, Culture and Sports (DECS), andattached to the Office of the President for administrative
purposes only. Its coverage shall be both public and private
institutions of higher education as well as degree-granting
programs in all post-secondary educational institutions, publicand private.
SEC. 4. Composition of the Commission. - The
Commission shall be composed of five (5) full-time members.
During the transition period which begins upon approval of thisAct, the President may appoint the Secretary of Education,
Culture and Sports as ex officio chairman of the Commission fora maximum period of one (1) year. Thereafter, the President
shall appoint a Chairman of the Commission and four (4)commissioners, who shall be holders of earned doctorate(s),who have been actively engaged in higher education for at leastten (10) years, and must not have been candidates for electivepositions in the elections immediately preceding theirappointment. They shall be academicians known for their highdegree of professionalism and integrity who have distinguishedthemselves as authorities in their chosen fields of learning. The
members of the Commission shall belong to different academic
specializations.
In no case shall any and all of the Commissioners
appoint representatives to act on their behalf.

SEC. 5. Term of Office. - The President shall appoint thefull-time chairman and the commissioners for a term of four (4)years, without prejudice to one reappointment. The terms of theinitial appointees shall be on a staggered basis: the full-timechairman shall hold office for a term of four (4) years, the next
two (2) commissioners for three (3) years, and the last two (2)commissioners for two (2) years.
The commissioners shall hold office until their successors
shall have been appointed and qualified. Should a member of
the Commission fail to complete his term, his successor shall beappointed by the President of the Philippines but only for theunexpired portion of the term.
SEC. 6. Rank and Emoluments. - The chairman and thecommissioners shall have the rank of a Department Secretaryand Undersecretary, respectively. They shall receive thecompensation and other emoluments corresponding to those ofa Department Secretary and Undersecretary, respectively, andshall be subject to the same disqualifications.
SEC. 7. Board of Advisers. - There shall be constituteda Board of Advisers which shall meet with the Commission atleast once a year to assist it in aligning its policies and plans
with the cultural, political and socioeconomic development
needs of the nation and with the demands of world-classscholarship.
The Board of Advisers shall be composed of thefollowing:a. the Secretary of Education, Culture and Sports, aschairman;

b. the Director-General of the National Economic andDevelopment Authority, as co-chairman;c. the Secretary of Science and Technology;
d. the Secretary of Trade and Industry;e. the Secretary of Labor and Employment;
f. the President of the Federation of Accrediting
Associations of the Philippines (FAAP); andg. the President of the Fund for Assistance to Private
Education (FAPE).
Two (2) additional members of the Board of Advisers may
be appointed by the President upon recommendation of theCommission.
SEC. 8. Powers and Functions of the Commission. The Commission shall have the following powers and functions:a. formulate and recommend development plans, policies,priorities, and programs on higher education andresearch;b. formulate and recommend development plans, policies,priorities and programs on research;c. recommend to the executive and legislative branches,priorities and grants on higher education and research;d. set minimum standards for programs and institutions ofhigher learning recommended by panels of experts in thefield and subject to public hearing, and enforce the same;e. monitor and evaluate the performance of programs andinstitutions of higher learning for appropriate incentives
as well as the imposition of sanctions such as, but notlimited to, diminution or withdrawal of subsidy,
recommendation on the downgrading or withdrawal ofaccreditation, program termination or school closure;f. identify, support and develop potential centers ofexcellence in program areas needed for the developmentof world-class scholarship, nation building and nationaldevelopment;
g. recommend to the Department of Budget andManagement the budgets of public institutions of higher
learning as well as general guidelines for the use of theirincome;h. rationalize programs and institutions of higher learningand set standards, policies and guidelines for the creationof new ones as well as the conversion or elevation ofschools to institutions of higher learning, subject tobudgetary limitations and the number of institutions ofhigher learning in the province or region where creation,conversion or elevation is sought to be made;i.

develop criteria for allocating additional resources suchas research and program development grants,
scholarships, and other similar programs: Provided, That
these shall not detract from the fiscal autonomy alreadyenjoyed by colleges and universities;j.

direct or redirect purposive research by institutions ofhigher learning to meet the needs of agro-industrializationand development;

k. devise and implement resource development schemes;l.

administer the Higher Education Development Fund, as
described in Section 10 hereunder, which will promote
the purposes of higher education;

m. review the charters of institutions of higher learning andstate universities and colleges including the chairmanshipand membership of their governing bodies andrecommend appropriate measures as basis for necessary
action;n. promulgate such rules and regulations and exercise suchother powers and functions as may be necessary to carryout effectively the purpose and objectives of this Act; ando. perform such other functions as may be necessary
for its effective operations and for the continued
enhancement, growth or development of highereducation.
SEC. 9. The Secretariat. - The Commission shallorganize a secretariat which shall be headed by an executive
officer, subject to the national compensation and position
classification plan. It shall fix the secretariat’s staffing pattern,
determine the duties, qualifications, responsibilities andfunctions, as well as the compensation scheme for the positions
to be created upon the recommendation of the executive officer.
It shall also prepare and approve its budget.

The Commission shall appoint the members of the staff
upon the recommendation of the executive officer.
SEC. 10. The Higher Education Development Fund. A Higher Education Development Fund, hereinafter referred
to as the Fund, is hereby established exclusively for thestrengthening of higher education in the entire country.
a. The Government’s contribution to the Fund shall be thefollowing:
1. the amount of Five hundred million pesos(P500,000,000) as seed capital;
2. the amount of Fifty million pesos (P50,000,000) for
the initial operation of the Commission;
3. the equivalent of forty percent (40%) annual shareon the total gross collections of the travel tax;
4. the equivalent of thirty percent (30%) share of thecollections from the Professional Registration Fee;and
5. the equivalent of one percent (1%) of the grosssales of the lotto operation of the Philippine
Charity Sweepstakes Office (PCSO).
b. Starting Fiscal Year 1995 and every year thereafter,
government financing institutions identified and requestedby the Commission may contribute to the Fund anamount equivalent to not less than three percent (3%) butnot more than five percent (5%) of their unimpaired surplus
realized during the immediately preceding year.
c. The Fund shall have a private portion to be raised fromdonations, gifts, and other conveyances including
materials, equipment, properties and services by
gratuitous title.
SEC. 11. Management and Administration of theHigher Education Development Fund. - The Fund shall beadministered by the Commission. For sound and judicious
management of the Fund, the Commission shall appoint a
reputable government financial institution as portfolio managerof the Fund, subject to the following conditions.
As administrator of the Fund, the Commission shallprepare the necessary guidelines for its use, subject to thefollowing conditions:a. No part of the seed capital of the Fund, including
earnings thereof, shall be used to underwrite overhead
expenses for administration;b. Unless otherwise stipulated by the private donor, only
earnings of private contributions shall be used foradministrative expenses;
c. The Commission shall appoint and organize a separate
staff, independent administratively and budgetarily
separate from the Commission Secretariat; andd. The Fund shall be utilized equitably according to regionsand programs.

SEC. 12. The Technical Panels. - The Commission shallreconstitute and/or organize technical panels for different
disciplines/program areas. They shall assist the Commission insetting standards and in program and institution monitoring andevaluation. The technical panels shall be composed of seniorspecialists or academicians to be appointed by the Commission.
SEC. 13. Guarantee of Academic Freedom. - Nothing
in this Act shall be construed as limiting the academic freedomof universities and colleges. In particular, no abridgment ofcurricular freedom of the individual educational institutions bythe Commission shall be made except for: (a) minimum unit
requirements for specific academic programs; (b) general
education distribution requirements as may be determined by
the Commission; and (c) specific professional subjects as may
be stipulated by the various licensing entities. No academic or
curricular restriction shall be made upon private educational
institutions which are not required for chartered state colleges
and universities.
SEC. 14. Accreditation. - The Commission shall provide
incentives to institutions of higher learning, public and private,
whose programs are accredited or whose needs are foraccreditation purposes.
SEC. 15. Tax Exemptions. - Any donation, contribution,bequest, and grant which may be made to the Commission shallconstitute as allowable deduction from the income of the donor
for income tax purposes and shall be exempt from donor’s tax,
subject to such conditions as provided under the National
Internal Revenue Code, as amended.

SEC. 16. Authority. - The Commission shall exercise
such authority as may be deemed necessary within its premises
or areas of operation to effectively carry out its powers andfunctions and to attain its objectives: Provided, That theCommission may seek the assistance of other government
agencies for the proper implementation of this Act.
SEC. 17. Appropriation. - The amount of Five hundred
million pesos (P500,000,000) is hereby authorized to beappropriated for the seed capital of the Fund. The additionalamount of Fifty million pesos (P50,000,000) is hereby
authorized to be appropriated out of the funds in the National
Treasury not otherwise appropriated or out of the Philippine
Amusement and Gaming Corporation (PAGCOR) funds for theinitial operation of the Commission.
The sum equivalent to the appropriations for the current
year for the Bureau of Higher Education and the degreegranting-programs of the Bureau of Technical-Vocational
Education, including those for higher and tertiary education anddegree granting vocational and technical programs of theBureau of Technical-Vocational Education in the regional offices,
as well as parts of the budgetary items under the DECS budgetthat are concerned with higher and tertiary education anddegree-granting vocational and technical programs such as
those for personal services, maintenance and other operating
expenses and capital outlay, shall be transferred to theCommission.
Thereafter, the funds necessary shall be included in theGeneral Appropriations Act.

SEC. 18. Transitory Provisions. - Such personnel,properties, assets and liabilities, functions and responsibilities ofthe Bureau of Higher Education, including those for higher andtertiary education and degree-granting vocational and technicalprograms in the regional offices, under the Department ofEducation, Culture and Sports, and other government entities
having functions similar to those of the Commission are hereby
transferred to the Commission.
The Commission shall have the authority to appoint its
own personnel.
All regular or permanent employees transferred to theCommission shall not suffer any loss of seniority or rank or
decrease in emoluments. Personnel of the Bureau of Higher
Education not otherwise transferred to the Commission shall bereassigned by the DECS in any of its offices and bureaus:
Provided, however, That, any employee who cannot be
accommodated shall be given all the benefits as may beprovided under existing laws, rules and regulations.
Jurisdiction over DECS-supervised or chartered statesupported post-secondary degree-granting vocational andtechnical programs and tertiary institutions shall be transferredto the Commission.
A transitory body is hereby created which shall becomposed of the Secretary of Education, Culture and Sports(DECS), Chair of the Senate Committee on Education, Arts andCulture, Chair of the House Committee on Education andCulture, a representative each of the Association of Christian
Schools andColleges (ACSC), the Catholic Educational Association of thePhilippines (CEAP), the Philippine Association of Colleges andUniversities (PACU), the Philippine Association of Private
Schools, Colleges and Universities (PAPSCU), the Philippine
Association of State Universities and Colleges (PASUC), andthe Philippine Association of Private Technical Institutions(PAPTI).
The transitory body shall facilitate the complete and fulloperation of the Commission which shall not be later than three(3) months after the effectivity of this Act. It shall likewise,
promulgate the rules and regulations necessary to effectively
implement the smooth and orderly transfer to the Commission.
The transition period not exceeding three (3) months shallcommence from the approval of this Act.
SEC. 19. Repealing Clause. -All laws, presidential
decrees, executive orders, rules and regulations or parts thereof
which are inconsistent with the provisions of this Act are hereby
repealed or modified accordingly.
SEC. 20. Separability Clause. - If any part or provisionof this Act shall be held unconstitutional or invalid, otherprovisions hereof which are not affected thereby shall continue
to be in full force and effect.

SEC. 21. Effectivity. - This Act shall take effect upon its
approval.
Approved,(SGD.) JOSE DE VENECIA, JR.
Speaker of the Houseof Representatives(SGD.) EDGARDO J. ANGARA
President of the Senate

This Act, which is a consolidation of Senate Bill No. 1453 and the House Bill No. 12200, wasfinally passed by the Senate and the House of Representatives on May 4, 1994 and May 17,1994, respectively.

(SGD.) CAMILO L. SABIO
Secretary General
House of Representatives(SGD.) EDGARDO E. TUMANGAN
Secretary of Senate

Approved: 18 May 1994

(SGD.) FIDEL V. RAMOS
President of the Philippines

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