Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City, Philippines

FIFTEENTH CONGRESS
First Regular Session

2
House iLL No._ S718

INTRODUCED BY: HON. MARCELINO “MARCY” R. TEODORO

EXPLANATORY NOTE

The Commission on Higher Education (CHED) is the governing body
covering both public and private higher education institutions as well as
degree-granting programs in all tertiary educational institutions in the
Philippines.

CHED was established in May 18, 1994 through Republic Act 7722 or the
Higher Education Act of 1994. Pursuant to the said law, the Commission is
mandated to undertake steps to promote quality education, and ensure
accessibility of education to all, as well as, protect academic freedom for
intellectual growth and advancement of leaming and research, among others.

Specifically and more importantly, the Commission is responsible for
formulating and implementing policies, plans and programs for the
development and efficient operation of higher educational system in the
country.

More than 15 years since its creation, several amendments to the CHED
charter are now being proposed to address the limitations and challenges the
Commission had to endure under its present charter that substantially affected
its performance as a government entity tasked to ensure quality tertiary
education. Apparently, no less than CHED admits to the insufficiency of the
existing law under which the CHEDderive its functions and powers.

This bill seeks to, among others, 1). Set the standards for and regulate
the review centers and similar entities; 2). Provide additional qualifications
and duties for the Chairperson and Commissioners of CHED, and other
requirements with respect to the composition of the Commission Proper; 3)
Grant CHED the powers not merely to formulate and recommend development


plans and policies on higher education and research but to implement such
Policies as well; 4). Allow CHED to recommend to Congress the creation,
dissolution and merger of state and/or local colleges and other publicly-funded
tertiary institutions; 5). Bestow CHED the authority to set minimum
qualifications for faculty who can teach in HEls, monitor and evaluate the
performance of programs of HEls both private and public including locally-
funded colleges and universities, and approve the establishment of and changes
in the institutional status of private universities and colleges; and 6). Confer
CHED the authority to regulate increases in tuition and other fees, to conduct
mediation, conciliation, exercise appellate jurisdiction between HEls and
students, teachers and staff involving academic issues, and to exercise quasi-
judicial powers in the pursuit of the mandate of the Commission

Hopefully, with the proposed changes under the measure, CHED can
fulfill its mandate more effectively, especially so now that there are already
2,060 higher education institutions in the Philippines today

In the light of the foregoing, approval of this bill is earnestly sought

fuk. [rsobo—
MARCELINO “MARCY” R. TEODORO

Representative, 1* District
City of Marikina


Rep-ublic of the Philippines
HOUSE OF REPRESENTATIVES
Quezén City, Philippines

FIFTEENTH CONGRESS
First Regular Session

a04
HOUSE BILL No,_° “4°

INTRODUCED BY: HON. MARCELINO “MARCY” R. TEODORO,

AN ACT AMENDING REPUBLIC ACT 7722, OTHERWISE KNOWN AS THE
“HIGHER EDUCATION ACT OF 1994”, STRENGTHENING THE COMMISSION
ON HIGHER EDUCATION (CHED), AND FOR OTHER PURPOSES.

Be it enacted by the Senate and the House of Representatives of the Philipines in Congress
assembled:

SECTION 1. A new section is hereby inserted as Section 3 of Republic Act No.7722:

Sec 3 DEFINITION OF TERMS. - UNLESS THE CONTEXT OTHERWISE INDICATES, THE
FOLLOWING TERMS SHALL MEAN:

B. HIGHER EDUCATION SUBSECTOR - SHALL REFER TO BOTH PUBLIC AND PRIVATE
INSTITUTIONS THAT OFFER TERITIARY EDUCATION DEGREE PROGRAMS.

C. HIGHER EDUCATION INSTITUTIONS (HEIs) - REFER TO PUBLIC OR PRIVATE
INSTITUTIONS PRIMARILY OFFERING DEGREE-GRANTING PROGRAMS, INCLUDING POST-
SECONDARY DEGREE-GRANTING VOCATIONAL AND TECHNICAL EDUCATIONAL
INSTIITUTIONS DULY RECOGNIZED BY CHED;

D."LOCAL COLLEGES AND UNIVERSITIES (LCUs) - REFER TO PUBLIC HEls ESTABLISHED
AND FINANCIALLY SUPPORTED BY THE LOCAL GOVERNMENT THROUGH AN ENABLING
ORDINANCE. LGUs MAY BE REFERRED TO AS “DALUBHASAAN" FOR COLLEGE AND.
“PAMANTASAN” FOR UNIVERSITY.

E."STATE UNIVERSITIES AND COLLEGES'(SUCs) - REFER TO PUBLIC HEls WITH
INDEPENDENT AND SEPARATE GOVERNING BOARDS CREATED AND ESTABLISHED BY
LAW;

F."GOVERNING BOARDS (GBs)" - REFER TO THE HIGHEST POLICY-MAKING BODY OF
CHARTERED SUCs AS DEFINED IN R.A. 8292. FOR CHARTERED STATE UNIVERSITIES,
THEY ARE CALLED THE BOARD OF REGENTS (BOR). FOR CHARTERED STATE COLLEGES
THEY ARE CALLED BOARD OF TRUSTEES (B07).

SECTION 2.Section 3 of Republic Act No 7722 is hereby amended to real as follows:

Section [3} 4. Creation of the Commission on Higher Education. - In pursuance of the
abovementioned policies, the Commission oh Higher Education is hereby created hereinafter
referred to as the Commission.

The Commission shall be independent and separate for 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.] IT SHALL ALSO SzT THE STANDARDS FOR AND REGULATE THE REVIEW
CENTERS AND SIMILAR ENTITITIES.

SECTION 3. Section 4 of the same Act is hereby replaced with the following section 5:

Sec,[4].5.COMPOSITION OF THE COMMISSION PROPER. - THE COMMISSION PROPER
SHALL BE COMPOSED OF A CHAIRPERSON AND FOUR (4) COMMISSIONERS WHO MUST
HAVE DISTINGUISHED THEMSELVES IN THEIR CHOSEN CAREER OR PROFESSION, AND
ARE KOWN FOR OTHER THEIR HIGH DEGREE OF HONESTY, INTERGRITY AND
PROFESSIONALISM.

AT LEAST THREE (3) OF THE MEMBERS OF THE COMMISSION, INCLUDING THE
CHARIPERSON, SHALL COME FROM THE ACADEME. THEY SHALL BE HOLDERS OF
EARNED DOCTORAL DEGREES AND HAVE BEEN ACTIVELY ENGAGED IN HIGHER
EDUCATION FOR AT LEAST TEN (10) YEARS. THE REST SHALL COME FROM BUSINESS,
INDUSTRY, AND EXPERTS OR SPECIALISTS FROM OTHER AREAS OF DISCIPLINE, WHO.
CAN CONTRIBUTE TO THE EFFICIENT AND EFFECTIVE GOVERNANCE OF HIGHER
EDUCATION. NO PERSON SHALL BE APPOINTED AS CHAIRMAN OR COMMISSIONER IF
HE/SHE HAS BEEN A CANDIDATE FOR ELECTIVE POSITIONS IN THE ELECTIONS
IMMEDIATELY PRECEEDING THEIR APPOINTMENT.

THE COMMISSION SHALL REGULARLY MEET ONCE A MONTH, HOWEVER, THE
MATTER OF IMPLEMENTATION AND EXECUTION SHALL BE AT THE JURISDICTION OF THE
EXECUTIVE OFFICE OF THE COMMISSION.

SECTION 4, Section 5 of the same Act is hereby amended to read as Section 6:

Sec.[5] 6. Term of Office. - The President shall appoint the full-time [chairman] CHAIRPERSON
and the commissioners for a term of four (4) years, without prejudice to one reappointment, The
terms of the initial appointees shall be on a staggered basis: the full-time chairman 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 successors shall be appointed
by the President of the Philippines but only for the unexpired portion of the term.

SECTION 5.Section 6 of the same Act is nereby amended to read as Section 7:

Sec.[6] 7. Rank and Emoluments. - The [chairmary CHAIRPERSON and the commissioners shall
have the rank of a Department Secretary and Undersecretary, respectively. They shall receive the
cdmpensation and other emoluments corresponding to those of a Department Secretary and
Undersecretary, respectively, and shall be subject to the same disqualifications.

‘SECTION 6. A new Section is hereby inserted as Section 8

Sec[7] 8. DUTIES AND RESPONSIBILITIES OF THE CHAIRPERSON AND THE
COMMISSIONERS. - SUBJECT TO PERTINENT LAWS, THE CHAIRPERSON SHALL ACT AS
THE CHIEF EXECUTIVE OFFICER OF THE COMMISSION. THE CHAIRPERSON, ACTING
TOGETHER WITH THE COMMISSIONERS AS A COLLEGIAL BODY, SHALL PERFORM THE
POLICY-MAKING, RULE-MAKING, REGULATORY, QUASI-JUDICIAL AND OTHER FUNCTION
MANDATED BY LAW TO THE COMMISSION. PROVIDED, HOWEVER THAT IN NO CASE
SHALL THE COMMISSIONERS PERFORM LINE OR EXECUTIVE FUNCTIONS. IN CASE OF
THE ABSENCE OF THE CHAIRPERSON DUE TO ILLNESS, INCAPACITY OR OTHER


SERIOUS CAUSE, THE MOST SENIOR COMMISSIONERS SHALL PERFORM THE
FUNCTIONS OF THE CHAIRPERSON AS OFFICER-IN-CHARGE.

SECTION 7. Section 7 of the same Act is hereby amended to read as section 9:

Sec.[8]9.The Board of Advisers. - There shall be constituted a Board of Advisers which shall meet
with the Commission at least once a year to assist it in aligning its policies and plans with the
culture, political and socioeconomic development needs of the nation and with the demands of
world-class scholarship

The Board of Advisers shall be composed of the following:

a) the secretary of THE DEPARTMENT OF Education, [Culture and Sports Jas{chairman)
CHIARPERSON;

) the Director-General of the National Economic end Development Authority, as co chairman;

) the Secretary of THE DEPARTMENT OF Science and Technology;
d) the Secretary of THE DEPARTMENT OF Trade and Industry;

e) the Secretary of THE DEPARTMENT OF Labor and Employment;

f) THE DIRECTOR-GENERAL OF TECHNICAL EDUCATION AND SKILLS DEVELOPMENT
AUTHORITY

g) the President of the Federation of Accrediting Associations of the Philippines (FAAP);{and]
hy) the President of the Fund for Assistance to Private Education (FAPE);

i) THE PRESIDENT OF THE PHILIPPINE ASSOCIATION OF STATE UNIVERSITIES AND
COLLEGES; (PASUC);

j) THE PRESIDENT OF THE ASSOCIATION OF LOCAL COLLEGES AND UNIVERSITIES
(ALCU); AND

k) THE PRESIDENT OF THE COORDINATING COUNCIL OF PRIVATE EDUCATIONAL
ASSOCIATIONS OF THE PHILIPPINES (COCOPEA).

[Two (2) additional members of the Board of Advisers may be appointed by the President upon
recommendation of the Commission ]

SECTION 8.Section 8 of the same Act is hereby amended to read as Section 10:

Sec,[8] 10. Powers and Functions of the Commission. - IN ACCORDANCE WITH
CONSTITUTIONAL MANDATE ON EDUCATION, THE LETTER AND INTENT OF THIS ACT AND
OTHER PERTINENT LAWS, the Commission shall PERFORM [have] the following powers and
functions:

(a) formulate and [recommend] IMPLEMENT development plans, policies, priorities, and programs
on higher education and research;

(b) formulate and {recommend] IMPLEMENT development plans, policies, priorities and programs
‘on research;

[(@}] (c) recommend to [the executive and legislative branches ] CONGRESS priofities and grants
on higher education and research AS WELL AS THE CREATION, DISSOLUTION AND MERGER


OF STATE AND OR LOCAL COLLEGES AND OTHER PUBLICLY-FUNDED TERITIARY
INSTITUTIONS;

{(@)] (@) IT SHALL HAVE THE AUTHORITY TO set minimum standard for programs and
institutions of higher leaning AS WELL AS THE MINIMUM QUALIFICATIONS FOR FACULTY
WHO TEACH IN HEI, recommended by panels of experts in the field and subject to public hearing,
ahd enforce the same;

{(@)] (e) 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 sanction such as, but not
limited to , diminution or withdrawal of subsidy, recommendation on the downgrading or withdrawal
of accreditation, program termination or school closure; PROVIDED THAT THE COMMISSION
SHALL HAVE THE EXCLUSIVE AUTHORITY TO CONDUCT VISITATIONS FOR HEls FOR THE
ISSUANCE OF GOVERNMENT PER‘AITIRECOGNITION TO OPERATE PROGRAMS, AS WELL
‘AS FOR MONITORING AND EVALUATION PURFUSES;

(f APPROVE THE ESTABLISHMENT OF, AND CHANGES IN THE INSTITUTIONAL STATUS OF
PRIVATE UNIVERSITIES AND COLLEGES;

{(9] (g) EXCLUSIVE AUTHORITY TO SET CRITERIA IN THE IDENTIFICATION [identify] support
and [develop] DEVELOPMENT OF potential centers of excellence in program areas needed for the
development of world-class scholarship, nation building and national development IN HEIs;

{(@)](h) recommend to the Department of Budget and Management the budget of SUCs [public
institutions of higher learning as well as] BASED ON A FUNDING FORMULA WHICH SHALL BE
FORMULATED BY THE COMMISSION IN CONSULTATION WITH ITS BOARD OF ADVISERS,
AND RECOMMEND general guidelines for the use of their income;

{(h)J() rationalize programs and institutions of higher learning 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 HEls IN the number of institutions of highe: learning in the province or region where creation,
conversion or elevation is sought to be made;

{(D1G) develop criteria for allocating additional resources such as research and program
development grants, scholarships, and other similar programs: Provided , that these shall not
detract fro the fiscal autonomy already enjoyed by colleges and universities;

{(@(k) direct or redirect purposive research by institutions of higher learning to meet the needs of
agro-industrialization and development;

{(K)]() devise and implement resource development schemes;

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

{(m](n) review the charters of institutions of higher learning and state universities and colleges
including the chairmanship and membership of their governing and recommend appropriate
measures as basis for necessary action;

((n)] (0) REGULATE INCREASE IN TUITION AND OTHER FEES IN PUBLIC AND PRIVATE
HIGHER EDUCATIONAL INSTITUTIONS AND PENALIZE VIOLATIONS;

(p) CONDUCT MEDIATION, CONCILIATION, SETTLEMENT MEETING OR CONFERENCES,
EXERCISE APPELATE JURISDICTION BETWEEN HIGHER EDUCATION INSITUTIONS AND.
STUDENTS, TEACHERS AND STAFF INVOLVING ACADEMIC ISSUES ONLY;


(gq) EXERCISE QUASI-JUDICIAL POWERS IN THE PURSUIT OF THE MANDATE OF THE
COMMISSION.

(1) promulgate such rules and regulations and exercise such other powers and functions as may
be necessary to carry out effectively the purpose and objectives of this Act; and

(s) perform such other functions as may be necessary for its effective operation and for the
continued enhancement growth or development of higher education.

SECTION 9. QUASI-JUDICIAL POWER OF THE COMMISSION. - THE COMMISSION SHALL
EXERCISE EXCLUSIVE ORIGINAL JURISDICTIC'N OVER THE FOLLOWING:

‘A. CLOSING DOWN OF NON-PERFORMING PROGRAMS AND/OR INSTITUTIONS UNDER ITS.
JURISDICTION;

B. CLOSING DOWN OF REVIEW CENTERS;

C, COMPLAINTS AND CASES AGAINST CHED PERSONNEL RELATED TO THE
PERFORMANCE AND DISCHARGE OF THEIR OFFICIAL DUTIES;

D, COMPLAINTS AND CASES RELATED TO THE IMPLEMENTATION OF RA 8292 AND THE
RESPECTIVE CHARTERS OF THE SUCS; AND

E.OTHER CASES AND COMPLAINTS RELATED TO THE POWERS AND FUNCTIONS OF THE.
COMMISSION.

EXCEPT FOR SUBPARAGRAPH D. COMPLAINTS AND CASES SHALL FIRST BE FILLED WITH
THE REGIONAL OFFICE WHICH HAS JURISDICTION OVER THE AREA. THE REGIONAL
DIRECTOR SHALL RESOLVE THE CASE WITHIN A REASONABLE PERIOD OF TIME FROM
THE SUBMISSION OF THE CASE FOR RESOLUTION, BUT IN NO CASE SHALL THE ENTIRE
RESOLUTION OF THE CASE EXCEED NINETY (90) DAYS FROM FILING.

APPEAL FROM THE DECISION OF THE REGIONAL DIRECTOR SHALL BE FILED WITH THE
EXECUTIVE DIRECTOR OF THE CUMMISSION WITHIN TEN (10) DAYS FROM RECEIPT OF
THE DECISION. THE EXECUTIVE DIRECTOR SHALL RULE ON THE APPEAL WITHIN NINETY
(90) DAYS FROM THE FILLING OF THE APPEAL.

APPEAL FROM THE DECISION OF THE EXECUTIVE DIRECTOR SHALL BE FILED WITH THE
COMMISSION ENBANC WITHIN TEN (10) DAYS FROM THE RECEIPT OF THE DECISION. THE
COMMISSION ENBANC SHALL RESOLVE THE APPEAL WITHIN NIETY (90) DAYS FROM THE
FILING OF THE APPEAL.

APPEAL FROM THE DECISION OF THE COMMISSION EN BANC SHALL BE TO THE COURT
OF APPEALS, SUBJECT TO THE PERIOD ON APPEALS FROM ADMINISTRATIVE QUASI-
JUDICIAL BODIES TO THE COURT OF APPEALS IN THE RULES OF COURT. THE
COMMISSION SHALL ENJOY THE POWER TO COORDINATE WITH THE REGIONAL TRIAL
COURT (RTC). THE RTC SHALL BE PROHIBITED FROM ISSUING INJUNCTION AGAINST
DECISIONS OF THE COMMISSION IN THE EXERCISE OF ITS QUASI-JUDICIAL FUNCTIONS.

SECTION 10. Sec. 9 of the same Act is hereby amended to read as Section 11

Sec{9]11. The Secretariat. - The Conimission shall organize a secretariat which shall be headed
by an executive officer, WITH THE TITLE OF EXECUTIVE DIRECTOR AND ASSISTED BY A
DEPUTY EXECUTIVE DIRECTOR, subject t=: the national compensation and position
classification plan. It shall fix the secretaria’s stafffing pattern, determine the duties,
qualifications responsibilities and functions, as well as the compensation scheme for the position to
be created upon the recommendation of the executive officer. It shall also prepare and approve its
budget.


The Commission shall appoint the member of the staff upon the recommendation of the executive
officer.

SECTION 11. A new section is hereby inserted as Section 12:

Sec. [10] 12. QUALIFICATIONS AND FUNCTIONS OF THE EXECUTIVE DIRECTOR - THE
EXECUTIVE DIRECTOR SHALL BE A CAREER EXECUTIVE OFFICER WITH AT LEAST FIVE
(S)YEARS ADMINISTRATIVE/TECHNICAL EXPERIENCE IN THE AREAS OF POLICIES AND
STANDARDS DEVELOPMENT, MANAGEMENT, PUBLIC OR PRIVATE ADMINISTRATION AND.
POLICY AS WELL AS HUMAN RESOURCE DEVELOPMENT, AMONG OTHERS.

SECTION 12. A new Section is hereby inserted as Section 13:

Sec.13, REGIONAL OPERATIONS - THE COMMISSION SHALL ESTABLISH REGIONAL
OFFICES IN ACCORDANCE WITH THE ADMINISTRATIVE CODE OF 1987 AND OTHER
PERTINENT LAWS AND ISSUANCE RELATIVE TO THE ESTABLISHMENT AND OPERATION
OF REGIONAL OFFICES. A QUALIFIED REGIONAL DIRECTOR AND AN ASSISTANT
REGIONAL DIRECTOR SHALL HEAD THE REGIONAL OFFICE, THEY SHALL SUPERVISE THE
PROGRAMS OF THE REGIONAL OFFICE OF THE COMMISSION AND RENDER PERIODIC
REPORTS ON ITS OPERATIONS. IN CASES WHERE FIELD OFFICES OR SUB-REGIONAL
OFFICES MAY BE NEEDED OR APPROPRIATE, THE COMMISSION MAY ESTABLISHED
SUCH OFFICES PURSUANT TO EXISTING GUIDELINES AND PRACTICE.

THE REGIONAL DIRECTOR MAY ALSO SIT AS A RESOURCE PERSON IN ALL BOARD
MEETING OF THE SUCs IN THE REGION, TO KEEP HIM/HER ATTUNED AND UPDATED ON
THE OFFICIALS ACTIVITIES AND NEEDS OF THE CONCERNED SUCS.

SECTION 13, A new Section is hereby inserted as Section 14:

Sec. 14 THE OFFICE OF LADDERIZED EDUCATION PROGRAM AND ALTERNATIVE
LEARNING SYSTEM AND THE OFFICER FOR REVIEW CENTERS ARE HEREBY CREATED.
THE COMMISSION SHALL ESTABLISH THE OFFICES OF THE LADDERIZED EDUCATION
PROGRAM AND ALTERNATIVE LEARNING SYSTEM AND THE OFFICE FOR REVIEW
CENTERS AND PROVIDE PLANTILLA POSITIONS.

(1) OFFICE OF THE LADDERIZED EDUCATION PROGRAM AND ALTERNATIVE
LEARNING SYSTEM IN COORDINATION WITH THE CONCERNED SECTORS AND
STAKEHOLDERS SHALL BE RESPONSIBLE FOR IMPLEMENTING THAT A UNIFIED
QUALIFICATIONS FRAMEWORK ESTABLISHES EQUIVALENCY PATHWAYS AND ACCESS
RAMPS FOR A LADDERIZED SYSTEM ALLOWING FOR EASIER TRANSITIONS AND
PROGRESSIONS BETWEEN TECHNICAL-VOCATIONAL EDUCATION AND TRAINING (TVET)
AND HIGHER EDUCATION (HE). THIS OFFICE SHALL BE THE COMMISSION'S ARM IN THE
FORMULATION OF POLICIES AND ACCRFOITATION OF ALTERNATIVE LEARNING
PROGRAMS. TO ENSURE THAT ALTERNATIVE LEARNING PROGRAM WITHIN THE HIGHER
EDUCATION WILL BE COVERED, THREE (3) DIVISIONS WILL BE CREATED TO EXTEND THE
NECESSARY SERVICES, ASSISTANCE AND TECHNCAL SUPPORT IN ATTAINING THE GOAL
OF ALTERNATIVE LEARNING SCHEMES, TO WIT:

A) THE EXPANDED TERTIARY EDUCATION EQUIVALENCY AND ACCREDITATION
PROGRAM (ETEEAP) DIVISION - THE OFFICE SHALL CONDUCT ASSESSMENT
SCHEMES, WHICH RECOGNIZE KNOWLEDGE, SKILLS AND LEARNNG OBTAINED
BY INDIVIDUAL FOR NON-FORMAL AND INFORMAL EDUCATION EXPERIENCES.

B) THE LIFELONG LEARNING DIVISION - ENCOMPASSES ALL LEARNING
ACTIVITIES UNDERTAKEN THROUGHOUT LIFE FOR THE DEVELOPMENT OF
COMPENTENCIES AND QUALIFICATIONS OF PEOPLE ACROSS THE ENTIRE LIFE
SPAN. PROVIDE LEARNING AND TRAINING NEEDS FROM CAREER DEVELOPMENT


TO MASTERY UNTIL BEYOND REITREMENT. DEVELOP POLICIES STANDARDS AND
GUIDELINES FOR DEVELOPMENT TO AID CAPACITY-BUIDLING PROGRAMS.

2) OFFICE FOR REVIEW CENTERS - THE OFFICE FOR REVIEW CENTERS SHALL
BE RESPONSIBLE FOR CREATING A FRAMEWORK FOR REGULATION OF REVIEW CENTER
AND SIMILAR ENTITIES FOR THE CONDUCT OF REVIEW CLASSES FOR PROGRAMS OR
COURSES REQUIRING LOCAL LICENSURE EXAMINATIONS GIVEN BY THE PROFESSIONAL
REGULATIONS COMMISSION, INCLUDING BUT NOT LIMITED TO THE DEVELOPMENT AND
INSTITUTIONALIZED OF POLICIES, STANDARDS, GUIDELINES FOR THE ESTABLSIHMENT,
OPERATION AND ACCREDITATION OF REVIEW CENTERS AND SIMILAR ENTITIES;
MAINTENANCE OF A MECHANISM TO MONITOR THE ADEQUACY, TRANSPARENCY AND
PROPRIETY OF THEIR OPERATIONS; AND REPORTING. MECHANISM TO REVIEW
PERFORMANCE AND ETHICAL PRACTICE TO ENSURE THE EFFECTIVE IMPLEMENTATION
OF THIS PROVISION.

The newly-created offices shall be headed by a Director, subject to the National Compensation and
position classification plan. Likewise, the corresponding staff complements shall be organized
accordingly by the Commission.

SECTION 14. Section 12 of the same Act is hereby amended to read as Section 15:

Sec,12]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
standard, POLICIES, GUIDELINES 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 CHAIRPERSON.

SECTION 15. Section 10 of the same Act is hereby amended to read as Section 16:

Sec,[10] 16. ESTABLISHMENT OF A TRUST FUND [The Higher Education Department Fund]. - A
TRUST FUND REFERRED TO AS THE Higher Education Development Fund, hereinafter referred
to as the Fund, is hereby established exclusively for the strengthening of higher education in the
entire country UNDER THE EXCLUSIVE CONTROL AND MANAGEMENT OF THE
COMMISSION.

FUND SOURCING AND UTILIZATION. —
(a) The Government's contribution to the Fund shalll be the following :

(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:

(B)the equivalent of forty percent (40%0 annual share on the total gross collections
of the travel tax;

(4) the equivalent of thiriy percent (30%) share of the collections from the
Professional Registration Fee; and

(6) the equivalent of one percent (1%) of the gross sales of the lotto operation of
the Philippine Charity Sweepstakes Office (PCS).

(b) Every year hereafter, government financially institutions identified and requested by the
Commission may contribute to the Fund an amount 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 poriion to be raised from donations, gifts and other
conveyances including mater: pment, properties and services by gratuitous title.



ALL CONTRIBUTIONS IDENTIFIED AS ACCURING TO THE FUND SHALL DIRECTLY AND
AUTOMATICALLY BE REMITTED, AND SHALL THEREAFTER BE REGULARLY AND
AUTOMATICALLY RELEASED QUARTERLY TO THE COMMISSION.

FURTHERMORE, THE FUND SHALL ALSO BE USED TO ASSIST INSTITUTIONS BOTH
PUBLIC AND PRIVATE IN ACCORDANCE WITH ASSISTANCE SCHEMES AND OR CRITERIA
AS PRESCRIBED BY THE COMMISSION, TAKING INTO ACCOUNT URGENCY OF NEEDS
AND EQUITY CONSIDERATIONS.

SECTION 16. Section 11 of the same Act is hereby amended to read as Section 14

Sec,{11] 14. Management and Administration of the Higher Education Development Fund. - The
Fund shall be administered by the Commission. For sound, and judicious management of the
Fund, the Commission shall appoint a reputable government financial institution as portfolio
manager of the Fund, subject to the foliowing conditions.

(a) No part of the seed capital of the Fund, including earings thereof, shall be used to
underwrite overhead expenses for administration:

(b) Unless otherwise stipulated by the private donor, only eaming of private contributions
shall be used for administrative expenses;

(¢) The Commission shall appoint and organize a separate staff, independent
administratively and budgetary separate fro the Commission Secretariats; and

(h) The Fund shall be utilized equitably according to regions, HEIs AND programs, WITH
EIGHT PERCENT (80%) OF ITS FUNDING ASSISTANCE ALLOCATED TO SUCS AND
OTHER PUBLICITY FUNDED TERITIARY INSTITUTIONS, TWENTY PER CENT (20%)
TO PRIVATE HEls. IN NO CASE SHALL THE FUND BE UTILIZED FOR PURPOSES
BENEFITING INDIVIDUAL OTHER THAN THOSE EARMARKED FOR THE
DEVELOPMENTAL PURPOSES.

SECTION 17. Section 13 of the same Act is hereby amended to read as Section 16:

Sec.{13].16. Guarantee of Academic “reedom. - 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 as may be determined by the Commission; and © specific professional
subject 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 THE PROGRAM OFFERINGS OF
SUCs SHALL FOLLOW AND BE APPROVED IN ACCORDANCE WITH THE MINIMUM
STANDARDS AND REQUIREMENTS PRESCRIBED BY THE COMMISSION

SECTION 18. Section 14 of the same Act is hereby amended to read as Section 17:

‘Set,[14] 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 HIGHER EDUCATION DEVELOPMENT FUND AS INCENTIVES FOR
ACCREDITATION.

SECTION 19. Section 15 is hereby renumbezed as Section 18.

SECTION 20. Section 16 is hereby renumbered as Section 19.

Republic of the Philippines
HOUSE OF REPRESENTATIVES


SECTION 21. Section 17 of the same Act is hereby replaced by the following Section 20:

Sec[17] 20. Appropriation, - THE AMOUNT NECESSARY FOR THE OPERATION OF THE
COMMMISSION SHALL BE PROVIDED FOR IN THE ANNUAL GENERAL APPROPRATIONS
ACT.

SECTION 22. A new section is hereby inserted as Section 21:

Sec. 21. IMPLEMENTATION ~ THE CHAIRPERSON OF THE COMMISSION IS HEREBY
DIRECTED TO TAKE SUCH STEPS AS NECESSARY FOR THE IMMEDIATE
IMPLEMENTATION OF THIS ACT, IN CONSULTATION WITH THE MEMBERS OF THE BOARD
OF ADVISERS , THE SENATE COMMITTEE ON EDUCATION, ARTS AND CULTURE AND THE
HOUSE OR REPRESENTATIVES COMMITTTE ON HIGHER & TECHNICAL EDUCATION.

SECTION 23, Section 18 of the same Act is hereby replaced with the following Section 22:

Sec, [18].22. Transitory Provisions. -UPON EFFECTIVITY OF THIS ACT, SUCH PERSONNEL,
PROPERTIES, ASSETS AND LIABILITIES, FUNCTIONS AND RESPONSIBILITIES OF THE
PRESENT COMMISSION ON HIGHER EDUCATION ARE HEREBY TRANSFERRED TO THE
REORGANIZED COMMISSION.

SECTION 24. A new section is hereby inserted as Section 23:

Sec[19] 23. IMPLEMENTING RULES AND REGULATIONS - THE COMMISSION SHALL
ORGANIZE A COMMITTEE TO BE CHAIRED BY THE COMMISSION CHAIRPERSON AND.
COMPOSED OF THE FOLLOWING AGENCIES TO DRAFT THE IMPLEMENTING RULES AND.
REGULATIONS OF THIS ACT: NEDA, COCOPEA, PASUC, THE ASSOCIATION OF LOCAL
GOVERNMENT COLLEGES AND UNIVERSITIES (ALCU), THE SENATE COMMITTEE ON
EDUCATION, ARTS AND CULTURE AND THE HOUSE COMMITTEE ON HIGHER AND
TECHNICAL EDUCATION.

THE CHED EXECUTIVE DIRECTOR AND DEPUTY EXECUTIVE DIRECTOR SHALL CO-CHAIR
THE SUPPORT SECRETARIAT WHICH SHALL BE RENDERED BY THE VARIOUS OFFICES
UNDER THE COMMISSION. THE SUPPORT SECRETARIAT SHALL PROVIDE THE
NECESSARY TECHNICAL AND ADMINISTRATIVE SUPPORT TO THE COMMITTEE.

THE COMMITTEE SHALL FORMULATE THE RULES NOT LATER THAN THREE (3) MONTHS
AFTER THE EFFECTIVITY OF THIS ACT AND WITHIN THREE (3) MONTHS AFTER THE
CREATION OF THE COMMITTEE.

SECTION 25. Repealing Clause. - Al! laws INCLUING R.A. 8981 OTHERWISE KNOWN AS THE
PRC MODERNIZATION LAW, presidential decrees, executive orders, rules and regulations or
parts thereof which are inconsistent with the provision of this Act are hereby repealed or modified
accordingly.

SECTION 26, Separability Clause. - If any part or provision of this Act shall be held unconstitutional
or invalid, other provisions hereof which are not affected thereby shall continue to be in full force
and effect.

SECTION 27. Effectivity. - This Act shall take effect fiteen (15) days from publication in a
newspaper of general circulation.

Approved,

Republic of the Philippines
HOUSE OF REPRESENTATIVES