SIXTEENTH CONGRESS OF THE REPUBLIC) 
OF THE PHILIPPINES 
) 
First Regular Session 
) 
'13 
OEC 11 P2 :41 
SENATE 
Senate Bill No. 2 0 ~ 4 
RECEIVED II\:-f. 
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 sues, 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 


SIXTEENTH CONGRESS OF THE. REPUBLIC) 
OF THE PHILIPPINES 
) 
First Regular Session 
) 
SENATE 
Senate Bill No. 2024 
INTRODUCED BY SEN. JINGGOY EJERCITO ESTRADA 
AN ACT 
"13 
OEC 11 
P 2 :41 
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 leaming 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 RA. 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 RA 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 
PARTIIME 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 5 of R.A. 7722 is hereby amended to read asfollows: 
"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 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 
POLlCIF.S 
OF 
THE 
BOARD 
OF 
COMMISSIONERS." 
SEC. 7. A new Section 8 is hereby inserted to the same Aqt 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 'Iegislative 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 INS'rlTUTIONS; 


[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; 
It] 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 a9ro-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 1 o 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 functiohs 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 
PROCE'oURES 
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: 
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 
APPQINTMENTS 
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 
THANSFER 
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 HigherEducation Development 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 
OFTHE FUND. 
x x x XU 
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 lJEVELOPMENTAl. 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 
andlor organize 
technical 
panels 
for 
different 
disciplines/program areas: They shall assist the Commission in 
setting standards, PROGRAM DEVEl.OPMENT .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 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,