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FIFTEENTH CONGRESS OF THE REPUBLIC) 
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OF THE PHILIPPINES 
) 
First Regular Session 
) 
SENATE 
Senate Bill No. <1 89 
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. 
Senator 


').' 
.' { 
FIFTEENTH CONGRESS OF THE REPUBLIC) 
q:~'!p.,,f~E ,;;: f;' 
,!..{i" ~,;M.-';/ 
OF THE PHILIPPINES 
) 
First Regular Session 
) 
SENATE 
Senate Bill No. 4 8 9 
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. 
xxxx 
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 MUL TI-
. 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 PARTTIME 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 NONVOTING 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 THEIMMEDIATELY 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 6 of RA 7722 is hereby amended to read as follows: 
"SEC. 6. 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 fUII-
time chairman] A SET OF THREE COMMISSIONERS shall hold office for 
a term of [four (4)1 FIVE (6) 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 RESPONSIBILITIES 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 
BANC; 
(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; 
. tel 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; 
[f]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 AND 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 
JURISDICTION 
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 
[0] 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. 10. 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 
SI;lALL 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: 
1) EXECUTE AND IMPLEMENT POLICIES, STANDARDS, RULES AND 
REGULATIONS PROMULGATED BY THE COMMISSION; 
2) SUPERVISE AND COORDINATE THE PROGRAMS OF THE 
CENTRAL, REGIONAL, AND OTHER OFFICES OF THE COMMISSION 
AND RENDER PERIODIC REPORTS ON THEIR OPERATIONS; 
3) DIRECT AND SUPERVISE THE INTERNAL ADMINISTRATION AND 
DAY TO DAY OPERATIONS OF THE COMMISSION; 
4) SIGN/ISSUE APPOINTMENTS TO SUBORDINATE OFFICIALS AND 
EMPLOYEES OF THE COMMISSION IN ACCORDANCE WITH LAW; 
5) DELEGATE AUTHORITY FOR THE PERFORMANCE OF ANY 
FUNCTION TO OFFICIALS AND EMPLOYEES OF THE COMMISSION; 
6) SUBJECT TO THE CONCURRENCE OF THE COMMISSION, MAKE 
TEMPORARY 
ASSIGNMENTS, 
ROTATE, 
AND 
TRANSFER 
PERSONNEL IN ACCORDANCE WITH PERTINENT LAWS; 
7) SUBMIT AN ANNUAL BUDGET OF THE SECRETARIAT AND 
COMPOSITE HIGHER EDUCATION BUDGET TO THE COMMISSION 
FOR APPROVAL; 
8) REPRESENT THE COMMISSION ON HIGHER EDUCATION IN 
INTERNATIONAL 
ORGANIZATIONS 
AND 
MEETINGS 
WHICH 
EXCLUSIVELY DEAL WITH HIGHER EDUCATION; AND 
9)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 Development TRUST Fund. -A 
Higher Education Development TRUST Fund, hereinafter referred to as 
the TRUST Fund, is hereby established exclusively for the strengthening 
or higher education in the entire country. FOR THIS PURPOSE, THE 


• 
COMMISSION SHALL EXERCISE COMPLETE AUTONOMY OVER THE 
MANAGEMENT AND USE OFTHE FUND. 
xxxx 
SEC. 13. Section 11 of the same Act is hereby amended to read as 
follows: 
"SEC. [III 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; 
b) Unless otherwise stipulated by the private donor, only earnings of 
private contributions shall be used for administrative expenses; 
c) The Commission shall appoint and organize a separate staff, 
independent 
administratively 
and 
budgetarily 
separate 
from 
the 
Commission Secretariat; and 
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. [121 15. The Technical Panels. -The Commission shall reconstitute 
and/or 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 
e.valuation. 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 DIRECTORGENERAL 
SEC. 15. Section 13 of the same Act is hereby amended to read as 
follows: 
"SEC. [131 16. Guarantee of Academic 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. [141 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. [151 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 PRIORITIES 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,