FOURTEENTH CONGRESS OF THE REPUBLIC 
) 
OF THE PHILIPPINES 
1 
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, 
First Regular Session 
1 
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FLv:. 
SENATE 
Senate Bill No. 5 3 0 
Introduced by Sen. JINGGOY EJERCITO ESTRADA 
EXPLANATORY NOTE 
In 1994, the Commission on Higher Education was created to take on the 
responsibility of the then Department of Education, Culture and Sports over 
higher education and research. Essentially, the Commission was provided overall 
supervision and regulatory powers over private higher educational institutions 
and degree programs, and limited influence over state universities and colleges 
through chairmanship of their governing boards and the recommendation of their 
budgets to the Department of Budget and Management. 
To enhance its developmental role in the higher education subsystem, the 
Commission was armed with a Higher Education Development Fund which it can 
use to support, among others, faculty development, the development of centers 
of excellence in various fields of learning, and enhancing governance over, and 
linkages between and among, private and public higher educational institutions. 
More than a decade after its creation, experiences as well as the 
enactment of several laws on different professions and professional regulations 
have necessitated the need to clarify the powers and strengthen the 
Commission. 
The increase in the number of state universities and colleges (SUCs) as 
well as the imminent and problematic creation of locally-funded universities and 
colleges (LUCs), and the concomitant offering by these SUCs and LUCs of 
numerous degree programs without a CHED evaluation, the rational allocation of 
state support to these SUCs, the absence of a grievance and conciliation 
mechanism on academic issues, and the limitation on the number of educational 
institutions that may be created, are all being addressed in this Bill. 
Lastly, this bill seeks to clarify that the Higher Education Development 
Fund is a trust fund and therefore is free from restriction or limitation on 
budgetary releases. 
In view thereof, immediate approval of this Bill is sought. 
AGGO~ 
EJERCITO ESTRADA 
uena


FOURTEENTH CONGRESS OF THE REPUBLIC 
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OF THE PHILIPPINES 
Firsf Regular Session 
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S E N A T E  
Senate Bill No. 5 3 0 
Introduced by Sen. JINGGOY EJERCITO ESTRADA 
AN ACT 
STRENGTHENING THE COMMISSION ON HIGHER EDUCATION (CHED), 
AMENDING FOR THE PURPOSE REPUBLIC ACT NO. 7722, ENTITLED “AN 
ACT 
CREATING 
THE 
COMMISSION 
ON 
HIGHER 
EDUCATION, 
APPROPRIATING FUNDS THEREFOR AND FOR OTHER PURPOSES” 
Be it enacted by the Senate and House of Representatives of the Philippines in 
Congress assembled: 
SECTION 1. Section 2 of Republic Act (R. A.) No. 7722 is hereby amended 
to read as follows: 
“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 ensure 
that 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 of 
responsible and effective leadership, the education of high-level 
[and middle-level] professionals, and the enrichment of our historical 
and cultural heritage. 
x x x x  
SEC. 2. Section 3 of R.A. 7722 is amended to read as follows: 
“SEC. 3. Creation of the Commission on Higher Education. - 
In pursuance of the abovementioned policies, the Commission on 


Higher Education is hereby created, hereinafter referred to as the 
Commission. 
The Commission shall be a collegial body independent and 
separate from the Department of Education, [Culture and Sports 
(DECS)] (DEPED), and attached 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] 
OFFERING DEGREE programs [in all post-secondary educational 
institutions, public and private]. 
SEC. 3. Section 4 of R.A. 7722 is hereby deleted and replaced with a new 
Section 4, to read as follows: 
“SEC. 4. BOARD OF COMMISSIONERS. 
THERE SHALL 
BE 
A 
MULTI-SECTORAL 
AND 
INTERDISCIPLINARY 
GOVERNING BOARD OF COMMISSIONERS RESPONSIBLE 
FOR POLICY-MAKING AND GOVERNANCE OF THE ENTIRE 
SUBSYSTEM OF HIGHER EDUCATION. 
IT SHALL BE 
COMPOSED OF SEVEN MEMBERS WHO WILL SERVE IN PART- 
TIME 
CAPACITY AND 
WHO 
SHALL REPRESENT THE 
ACADEME, PROFESSIONAL ASSOCIATIONS, PRIVATE AND 
PUBLIC BUSINESS AND INDUSTRY AND SUCH OTHER 
SECTORS WHICH HAVE DIRECT STAKES 
IN HIGHER 
EDUCATION: PROVIDED, THAT, THE DIRECTOR-GENERAL OF 
THE SECRETARIAT SHALL BE AN EX-OFFICIO BUT NON- 
VOTING MEMBER OF THE BOARD. 
THE 
COMMISSIONERS SHALL 
BE 
PERSONS OF 
HIGHEST PROFESSONALISM AND INTEGRITY, AND WHO 
HAVE DISTINGUISHED THEMSELVES AS AUTHORITIES AND 
EXPERTS IN THEIR CHOSEN FIELDS OF LEARNING AS 
PROFESSORS, RESEARCHERS, MANAGERS, PROFESSIONAL 


PRACTITIONERS AND OTHER LINES OF ENDEAVORS THAT 
CAN CONTRIBUTE TO THE EFFICIENT AND EFFECTIVE 
EXTERNAL GOVERNANCE OF HIGHER EDUCATION. 
NO 
PERSON CAN BE APPOINTED COMMISSIONER IF HE HAS 
BEEN A CANDIDATE FOR ELECTIVE POSITION IN THE 
IMMEDIATELY PRECEEDING ELECTION. 
IN NO 
CASE SHALL ANY 
AND 
ALL 
OF THE 
COMMISSIONERS APPOINT REPRESENTATIVES TO ACT ON 
THEIR BEHALF. 
THE COMMISSION SHALL BE AN EQUAL-OPPORTUNITY 
INSTRUMENTALITY AND SHALL STRICTLY ADHERE TO THE 
TENETS OF TRANSPARENCY AND ACCOUNTABILITY. TO 
DEMOCRATIZE THE SELECTION AND APPOINTMENT OF 
PERSONS IN THE BOARD OF COMISSIONERS AND THE 
SECRETARIAT, ALL VACANCIES IN THE COMMISSION AND 
THE SECRETARIAT SHALL BE WELL-PUBLICISED AND TO 
WHICH THE APPLICATION BY 
INDIVIDUALS OF MOST 
SUITABLE PROFESSIONAL QUALIFICATIONS AND MORAL 
PROBITY SHALL BE ENCOURAGED. TO PRESERVE ACADEMIC 
AND FISCAL AUTONOMY, THE COMMISSIONERS SHALL 
ELECT FROM AMONG THEMSELVES THE CHAIRMAN AND 
VICE CHAIR OF THE COMMISSION. 
THE COMMISSION SHALL REGULARLY MEET ONCE IN 
TWO 
MONTHS: 
PROVIDED, 
HOWEVER, 
THAT 
UPON 
CERTIFICATION OF THE DIRECTOR-GENERAL OF THE 
SECRETARIAT, IT SHALL CONVENE SPECIAL MEETINGS IF 
THE EXIGENCIES SO WARRANT. 
SEC. 4. Section 5 of R.A. 7722 is hereby amended to read as follows: 


“SEC. 5. Term of Office. - The President shall appoint ALL 
the [full-time chairman and the commissioners for a term of four (4) 
years,] MEMBERS OF THE BOARD OF COMMISSIONERS 
without prejudice to [one] reappointment BASED ON MERIT AND 
TRACK RECORD OF PERFORMANCE. The terms of the initial 
appointees shall be on a staggered basis TO ENSURE 
CONTINUITY 
AND 
COHERENCE 
OF 
POLICIES 
AND 
PROGRAMS ACROSS ADMINISTRATIONS. [: the full-time 
chairman] A SET OF THREE COMMISSIONERS shall hold office 
for a term of [four (4)] FIVE (5) years, the next two (2) 
commissioners for three (3) years, and the last two (2) 
commissioners for two (2) years. 
The Commission shall hold office until their successors shall 
have been appointed and qualified. Appointment to any vacancy 
shall only be for the unexpired term of the predecessor. In no case 
shall any commissioner be appointed or designated in a temporary 
or acting capacity.” 
SEC. 5. Section 6 of the same Act is hereby amended to read as follows: 
“SEC. 6. 
Rank and Emoluments. - The chairman, VICE 
CHAIR and the commissioners shall have the ranks AND 
EMOLUMENTS CORRESPONDING OR COMPARABLE TO 
THOSE APPOINTED IN THE POLICY AND GOVERNING 
BOARDS OF PRIVATE AND PUBLIC CORPORATIONS AS MAY 
BE DETERMINED BY THE OFFICE OF THE PRESIDENT [of a 
Department Secretary and Undersecretary, respectively. They shall 
receive the compensation and emoluments corresponding to those 
of a Department Secretary and Undersecretary, respectively, and 
shall be subject to the same qualifications]. 
SEC. 6. A new Section 7 is hereby inserted to the same Act as follows: 


“SEC. 7. 
DUTIES AND RESPONSlBlLlTlES OF THE 
CHAIRMAN. - SUBJECT TO PERTINENT LAWS AND THE 
POLICIES AND RULES ADOPTED BY THE COMMISSION, THE 
CHAIRMAN SHALL: 
( 1 )  ACT AS THE PRESIDING OFFICER OF THE 
COMMISSION EN k3ANC; 
(2) SUBMIT TO THE OFFICE OF THE PRESIDENT 
RULES AND REGULATIONS ADOPTED BY THE 
COMMISSION, WHICH REQUIRE PRESIDENTIAL 
ATTENTION 
INCLUDING 
ANNUAL AND OTHER 
PERIODIC REPORTS; AND 
(3) DIRECT 
THE 
DIRECTOR-GENERAL 
OF 
THE 
SECRETARIAT 
ON 
THE 
PERFORMANCE 
OR 
EXECUTION OF THE DECISIONS AND POLICIES OF 
THE BOARD OF COMMISSIONERS 
SEC. 7. A new Section 8 is hereby inserted to the same Act as follows: 
“SEC. 8. DUTIES AND RESPONSIBILITIES OF THE 
COMMISSIONERS. - IN THE SPIRIT OF COLLEGIALITY, 
JOINTLY WITH THE CHAIRMAN, THE COMMISSIONERS SHALL 
BE RESPONSIBLE FOR THE EFFECTIVE EXERCISE OF THE 
POLICY AND RULE-MAKING, RESOURCE ALLOCATION AND 
MANAGEMENT FUNCTIONS OF THE COMMISSION OVER THE 
ENTIRE HIGHER EDUCATION SUBSYSTEM. THEY SHALL 
LIKEWISE PERFORM SUCH OTHER FUNCTIONS AS MAY BE 
DELEGATED BY THE COMMISSION. 
IN CASE OF THE 
ABSENCE OF THE CHAIRMAN AND THE VICE CHAIR DUE TO 
ILLNESS, INCAPACITY OR OTHER SERIOUS 
CAUSE, THE 
MOST SENIOR FULL-TIME COMMISSIONER SHALL PERFORM 
THE FUNCTIONS OF THE CHAIRMAN. 


NOTHING IN THIS ACT SHALL BE CONSTRUED TO 
MEAN THE DEROGATION OF THE PREROGATIVES OF 
INTERNAL GOVERNANCE AND FISCAL AUTONOMY OF THE 
INSTITUTIONS OF HIGHER LEARNING AS WELL AS PROMOTE 
A CONFLICT OF INTEREST BETWEEN THE FUNCTIONS OF 
INSTITUTIONAL GOVERNING BOARDS AND THOSE OF THE 
COMMISSION 
IN THE 
EXERCISE 
OF 
THE 
LATTER'S 
COORDINATIVE AND OVERSIGHT FUNCTIONS OVER THE 
FORMER." 
SEC. 8. Section 7 of the same Act is hereby renumbered as Section 9. 
SEC. 9. Section 8 of R.A. 7722 is hereby amended to read as follows: 
"SEC. [8] 10. Powers and Functions of the Commission. - The 
Commission shall have the following COLLEGIAL powers and functions 
OVER 
THE 
SECRETARIAT AND 
THE 
HIGHER 
EDUCATION 
INSTITUTIONS: 
a) formulate and [recommend] IMPLEMENT development plans, 
policies, priorities and programs on higher education and 
research; AND RECOMMEND TO THE EXECUTIVE AND 
LEGISLATIVE BRANCHES, PRIORITIES AND GRANTS ON 
HIGHER EDUCATION AND RESEARCH; 
[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;] 
B) APPROVE THE CHANGES IN THE INSTITUTIONAL STATUS 
OF 
PRIVATE UNIVERSITIES AND 
COLLEGES AND 
RECOMMEND TO THE LEGISLATURE THE CREATION, 
DISSOLUTION AND MERGER OF STATE COLLEGES AND 
UNIVERSITIES AND OTHER PUBLICLY FUNDED TERTIARY 


INSTITUTIONS ON THE BASIS OF NATIONAL AND 
SECTORAL DEVELOPMENT PLANS; 
[d] C) set minimum standards for programs and institutions of 
higher learning recommended by panel of experts in the field 
and subject to public hearing, and enforce the same. 
LIKEWISE, IT SHALL HAVE THE EXCLUSIVE AUTHORITY 
TO DETERMINE THE MINIMUM QUALIFICATIONS FOR 
FACULTY WHO CAN TEACH IN HIGHER EDUCATION 
INSTITUTIONS; 
[e] D) monitor and evaluate the performance of programs and 
institutions of higher learning, BOTH PRIVATE AND PUBLIC, 
INCLUDING 
LOCALLY 
FUNDED 
COLLEGES 
AND 
UNIVERSITIES, for appropriate incentives as well as the 
imposition of sanctions such as, but not limited to, [diminution 
or] 
withdrawal 
of 
subsidy, 
[recommendation 
on the] 
downgrading [or] AND withdrawal [of accreditation, program 
termination] 
GOVERNMENT 
RECOGNITION 
AND 
AUTHORITY TO OPERATE PROGRAMS or school closure[;]: 
PROVIDED, THAT, THE COMMISSION SHALL HAVE THE 
EXCLUSIVEISOLE AUTHORITY TO CONDUCT VISITATIONS 
TO HIGHER EDUCATION INSTITUTIONS (HEIS) FOR 
ISSUANCE OF GOVERNMENT AUTHORITY TO OPERATE 
PROGRAMS OR 
COURSES FOR MONITORING AND 
EVALUATION PURPOSES; 
[fj E) identify, support and develop potential centers of excellence in 
program areas needed for the development of world-class 
scholarship, nation building and national development; 
[g] F) [recommend to] ALLOCATE AND SUBDIVIDE THE TOTAL 
BUDGET OF STATE UNIVERSITIES AND COLLEGES IN 


COORDINATION WITH the Department of Budget and 
Management [the budgets of public institutions of higher 
learning as well as] AND RECOMMEND general guidelines for 
the use of their income, BASED ON A NORMATIVE ANE 
MERIT-BASED FUNDING FORMULA WHICH SHAL BE 
FORMULATED BY THE COMMISSION: PROVIDED, ALSO, 
THAT THE USE OF THE INTERNAL AND EXTERNAL 
SOURCES OF DEVELOPMENT FINANCING SHALL BE 
ALLOCATED ON MERIT AND EQUITY GROUNDS ACROSS 
REGIONS 
AND 
PROVINCES, 
PROGRAMS 
AND 
INSTITUIONS; 
[h] G) rationalize programs and institutions of higher learning 
BASED ON LOCAL AND 
REGIONAL DEVELOPMENT 
IMPERATIVES AND set standards, policies and guidelines for 
the creation of new ones as well as the conversion or elevation 
of schools to institutions of higher learning, subject to budgetary 
limitations and GEOGRAPHIC DISTRIBUTION OF HIGHER 
EDUCATION INSTITUTIONS and the LIMITATION ON THE 
number of institutions of higher learning in the province or region 
where creation, conversion or elevation is sought to be made; 
[i] H) develop criteria for allocating additional resources such as 
research and program development grants, scholarships, and 
other similar programs: Provided, That these shall not detract 
from the fiscal autonomy already enjoyed by colleges and 
universities; 
[i] I) direct or redirect purposive research by institutions of higher 
learning to meet the needs of agro-industrialization and 
development AS WELL AS OTHER STRATEGIC AREAS OF 
GLOBAL IMPORTANCE: 


J) AUTHORIZE 
THE 
PERIODIC 
REVIEW 
OF 
THE 
ORGANIZATION, FUNCTIONS, MISSION AND STRUCTURE 
OF THE ENTIRE COMMISSION IN THE LIGHT OF THE 
COUNTRY’S SOCIAL, ECONOMIC AND TECHNOLOGICAL 
CHANGES 
AND 
PROPOSE 
THE 
NECESSARY 
INTERVENTIONS 
INCLUDING 
APPROPRIATE 
LEGISLATIONS; 
k) devise and implement resource development schemes; 
I) 
administer the Higher Education Development TRUST Fund, as 
described in Section 10 hereunder, which will promote the 
purposes of higher education: 
m) review the charters of institutions of higher learning and state 
universities and colleges including the chairmanship and 
membership of their governing bodies and recommend 
appropriate measures as basis of necessary action; 
N) CONDUCT 
MEDIATION, 
CONCILIATION, SETTLEMENT 
MEETINGS OR CONFERENCES, EXERCISE APPELLATE 
JURI SDl CTl ON 
BETWEEN 
HIGHER 
EDUCATION 
INSTITUTIONS AND STUDENTS, TEACHERS, AND STAFF 
INVOLVING ACADEMIC ISSUES ONLY, IN ACCORDANCE 
WITH RULES TO BE ISSUED BY THE COMMISSION FOR 
THE PURPOSE; 
[n] 0) promulgate such rules and regulations and exercise such 
other powers and functions as may be necessary to carry out 
effectively the purpose and objective of this Act; and 
[o] P) perform such other functions as may be necessary for its 
effective operations and for the continued enhancement, growth 
or development of higher education. 


SEC. I O .  Section 10 of the same Act is hereby amended to read as 
follows: 
"SEC. [9] 11. The Secretariat. - The Commission shall 
organize a TECHNICAL secretariat which shall be headed by [an 
executive officer] A DIRECTOR-GENERAL, subject to the national 
compensation and position classification plan. It shall fix the 
secretariat's [staffing pattern, determine the duties, qualifications, 
responsibilities and functions, as well as the compensation scheme 
for the positions to be created upon the recommendation of the 
executive officer] STRUCTURE BASED ON AN ACCEPTABLE 
ORGANIZATIONAL 
EVALUATION 
STUDY 
THAT 
WILL 
RECOMMEND SUITABLE QUALIFICATION, RESPONSIBILITIES 
AND 
FUNCTIONS 
AS 
WELL 
AS 
THE 
APPROPRIATE 
COMPENSATION SCHEME THAT BEFITS AN ORGANIZATION 
OF 
SUCH 
HIGHLY TECHNICAL 
AND 
DEVELOPMENTAL 
MANDATE. It shall also prepare and approve its budget. 
THE COMMISSION SHALL HAVE THE AUTHORITY TO 
APPOINT ITS OWN PERSONNEL AND DETERMINE THE 
QUALIFICATION 
STANDARDS 
REQUIRED 
BY 
THE 
MANAGEMENT, COORDINATION AND PLANNING FUNCTIONS 
OF THE COMMISSION TOWARDS THE DEVELOMENT OF 
WORLD-CLASS HIGHER EDUCATION SUB-SYSTEM. 
THE COMMISSION SHALL TAKE STEPS TO ATTRACT 
THE MOST QUALIFIED AND COMPETENT STAFF IN ALL 
GRADES AND LEVELS AND SHALL INSTITUTE NECESSARY 
AND 
FLEXIBLE 
INTERNAL 
RULES 
AND 
PROCEDURES 
TOWARDS HIRING AND REMOVAL OF PERSONNEL IN THE 
INTEREST OF EFFICIENCY, ECONOMY, DISCIPLINE AND 
BETTER PERFORMANCE STANDARDS." 


SEC. 11. A new Section 12 is hereby inserted to the same Act, as follows: 
“SEC. 12. 
THE EXECUTIVE OFFICERS. - THE 
COMMISSION SECRETARIAT SHALL BE HEADED BY A 
DIRECTOR-GENERAL, ASSISTED BY TWO DEPUTY DIRECTOR 
GENERALS WHO WILL ALTERNATELY SERVE AS SECRETARY 
TO THE BOARD OF COMMISSIONERS AND WHOSE OTHER 
RESPONSIBILITIES SHALL BE BASED ON THE RESPONSIVE 
STRUCTURE AS RECOMMENDED BY THE ORGANIZATIONAL 
EVALUATION. THE DIRECTOR GENERAL SHALL ACT AS THE 
CHIEF OPERATING AND EXECUTIVE OFFICER OF THE 
COMMISSION AND SHALL BE AN EX-OFFICIO NON-VOTING 
MEMBER OF THE BOARD OF COMISSIONERS. AS SUCH, THE 
DIRECTOR-GENERAL, 
WITH 
THE 
RANK 
OF 
UNDERSECRETARY, SHOULD HAVE A WELL-BALANCED 
EXPERIENCE AND EXPOSURE IN 
ORGANIZATIONAL AND 
FINANCIAL MANAGEMENT IN BOTH PUBLIC AND PRIVATE 
SETTING AND HUMAN RESOURCES DEVELOPMENT, AMONG 
OTHERS. 
AS DIRECTOR-GENERAL HE SHALL: 
EXECUTE AND IMPLEMENT POLICIES, STANDARDS, 
RULES AND REGULATIONS PROMULGATED BY THE 
COMMISSION; 
SUPERVISE AND COORDINATE THE PROGRAMS OF THE 
CENTRAL, REGIONAL, AND OTHER OFFICES OF THE 
COMMISSION AND RENDER PERIODIC REPORTS ON 
THEIR OPERATIONS; 
DIRECT 
AND 
SUPERVISE 
THE 
INTERNAL 
ADMINISTRATION AND DAY TO DAY OPERATIONS OF 
THE COMMISSION; 


SIGN/ISSUE 
APPOINTMENTS 
TO 
SUBORDINATE 
OFFICIALS AND EMPLOYEES OF THE COMMISSION IN 
ACCORDANCE WITH LAW; 
DELEGATE AUTHORITY FOR THE PERFORMANCE OF 
ANY FUNCTION TO OFFICIALS AND EMPLOYEES OF THE 
COMMISSION; 
SUBJECT 
TO 
THE 
CONCURRENCE 
OF 
THE 
COMMISSION, 
MAKE 
TEMPORARY 
ASSIGNMENTS, 
ROTATE, 
AND 
TRANSFER 
PERSONNEL 
IN 
ACCORDANCE WITH PERTINENT LAWS; 
SUBMIT AN ANNUAL BUDGET OF THE SECRETARIAT 
AND COMPOSITE HIGHER EDUCATION BUDGET TO THE 
COMMISSION FOR APPROVAL; 
REPRESENT THE COMMISSION ON HIGHER EDUCATION 
IN INTERNATIONAL ORGANIZATIONS AND MEETINGS 
WHICH EXCLUSIVELY DEAL WITH HIGHER EDUCATION; 
AND 
PERFORM SUCH OTHER FUNCTIONS AS MAY BE 
AUTHORIZED BY THE COMMISSION. 
SEC. 12. Section 10 of the same Act is hereby amended to read as 
follows: 
"SEC. [I 01 13. The Higher Education Developmenf TRUST 
Fund. -A Higher Education Development TRUST Fund, hereinafter 
referred to as the TRUST Fund, is hereby established exclusively for 
the strengthening of higher education in the entire country. FOR 
THIS 
PURPOSE, 
THE 
COMMISSION 
SHALL 
EXERCISE 
COMPLETE AUTONOMY OVER THE MANAGEMENT AND USE 
OF THE FUND. 
x x x x  


SEC. 13. Section 11 of the same Act is hereby amended to rea as follows: 
"SEC. [Ill 14. 
Management and Administration of the 
Higher Education Development TRUST Fund. - The Fund shall be 
administered by the Commission. For sound, PROFITABLE and 
judicious management of the Fund, the Commission shall appoint a 
reputable government financial institution as portfolio manager of the 
Fund, subject to the following conditions: 
As administrator of the Fund, the Commission shall prepare 
the necessary guidelines for its use, subject to the following 
conditions: 
a) 
No part of the seed capital of the Fund, including 
earnings thereof, shall be used to underwrite overhead 
expenses for administration; 
Unless otherwise stipulated by the private donor, only 
earnings of private contributions shall be used for 
administrative expenses; 
The Commission shall appoint and organize a separate 
staff, independent administratively and budgetarily 
separate from the Commission Secretariat; and 
b) 
c) 
d) 
The Fund shall be utilized equitably according to 
regions, HIGHER EDUCATION INSTITUTIONS and 
programs. 
IN NO CASE SHALL THE FUND BE 
UTILIZED 
FOR 
PURPOSES 
BENEFITING 
INDIVIDUALS OTHER THAN THOSE EARMARKED 
FOR THE DEVELOPMENTAL PURPOSES. 
SEC. 14. Section 12 of the same Act is hereby amended to read as 
follows: 
"SEC. [I21 15. The Technical Panels. -The Commission shall 
reconstitute andlor 
organize technical 
panels for 
different 


disciplines/program areas. 
They shall assist the Commission in 
setting standards, PROGRAM DEVELOPMENT and in program and 
institution monitoring and evaluation. The technical panels shall be 
composed of senior specialists, PROFESSIONAL PRACTITIONERS 
or academicians to be appointed by the Commission. THEY SHALL 
BE DIRECTLY 
UNDER THE OFFICE OF 
THE 
DIRECTOR- 
GENERAL 
SEC. 15. Section 13 of the same Act is hereby amended to read as 
follows: 
“SEC. [I31 16. Guarantee ofAcademic Freedom. - Nothing in 
this Act shall be construed as limiting the academic freedom of 
universities and colleges. In particular, no abridgment of curricular 
freedom of the individual educational institutions by the 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:-PROVIDED, 
HOWEVER, THAT 
PROGRAM OFFERINGS 
OF 
STATE 
UNIVERSITIES AND 
COLLEGES ( SUCS) SHALL FOLLOW AND BE APPROVED IN 
ACCORDANCE 
WITH 
THE 
MINIMUM 
STANDARDS AND 
REQUIREMENTS PRESCRIBED BY THE COMMISSION.” 
SEC. 16. Section 14 of the same Act is hereby amended to read as 
follows: 
“SEC. [I41 17 . Accreditation. - The Commission shall 
provide incentives to institutions of higher learning, public and 


private, whose programs are accredited or whose needs are for 
accreditation purposes. THE COMMISSION SHALL 
LIKEWISE 
FORMULATE GUIDELINES FOR GRANTS FROM THE HEDF 
AS INCENTIVES FOR ACCREDITATION. 
SEC. 17. Section 15 of the same Act is hereby amended to read as 
follows: 
“SEC. [I51 18. Tax Exemptions. - Any donation, contribution, 
bequest and grant which may be made to the Commission shall 
constitute 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, AND CONSISTENT WITH THE NATIONAL 
PRlORlTlTES PLAN IN COORDINATION WITH THE NATIONAL 
ECONOMIC AND DEVELOPMENT AUTHORITY.” 
SEC. 18. Repealing Clause. All laws, republic acts, presidential 
decrees, executive orders, rules and regulations of parts thereof which are 
inconsistent with the provisions of this Act are hereby repealed or modified 
accordingly. 
SEC. 19. Separability Clause. If any part or provision of this Act 
shall be declared unconstitutional or invalid, other provisions hereof which 
are not affected thereby shall continue to be in full force and effect. 
SEC. 20. Effectivity. - This Act shall take effect after fifteen (15) 
days from publication in a newspaper of general circulation. 
Approved,