NINETEENTH CONGRESS )
REPUBLIC OF THE PHILIPPINES )
First Regular Session )

HOUSE OF REPRESENTATIVES

Introduced by Representative Rufus B. Rodriquez f

House Bill No, 2920,

EXPLANATORY NOTE

In view of the public interest nature of legal educational institutions, and to ensure the
quality and competency of our schools and educators, as well as upiift the standard of legal
education in the country, Republic Act No. 7662, or the Legal Education Reform Act of 1993,
was enacted. Accordingly, the Legal Education Board (LEB) was constituted as the
independent agency that would govern the legal education system and supervise the legal
education institutions all over the country

Throughout the years, however, the flaws of the Legal Education Reform Act have
become apparent.

Despite being an independent government agency with its own charter, the LEB is
attached for budgetary purposes and administrative support to the Commission on Higher
Education (CHED). As a result, the Legal Education Reform Act has imposed upon CHED
additional duties and functions that are not related to the latter's mandate; CHED, in turn, with
the amount of tasks already faced by it, is additionally burdened with the financial and
administrative operations of what actually is an independent agency in all other respects.

Then, in the 2019 Decision of the Supreme Court in Pimentel et al. vs. LEB', some
provisions of the Legal Education Reform Act were declared unconstitutional for intruding into
areas which otherwise fell within the exclusive jurisdiction of the Supreme Court. Indeed, the
decision of the highest court of the country deserved full respect, prompting the LEB to review
and overhaul its policies with respect to the regulation of legal education institutions through
the proposed amendments.

On the other hand, notwithstanding its minimal budget of Twenty-Nine Million Pesos
(Php 29,000,000.00), the LEB has remained faithful to its mandate to elevate the standards
of legal education in the country. With the assistance of local and international non-profit
organizations, LEB has been able to embark on worthy and ambitious undertakings, the fruits
of some have been felt instantly by legal education institutions, while the other benefits are
projected to be the seeds for the agency's long-term plans. In either case, the proposed
amendments are expected to draw more capable officials into LEB's fold, dedicated public
servants who would preserve and take up from what the present Board has begun with its
significantly small monetary capital.

Overall, in order to allow LEB to fully exercise its duties and functions as provided by
statutory law and highlighted by jurisprudence, amendments to the Legal Education Reform
Act are necessary. This bill seeks to reiterate the authority of the LEB to establish the
parameters of the exercise of its power and to enable itself to operate at its highest potential,
while respecting and pursuing every comerstone of academic freedom.

For the reasons above-cited, and the desire for a smooth transition towards a more
empowered regulatory commission, the approval of this measure is earnestly sought.

1 G.R. No. 230642, November 09, 2021


NINETEENTH CONGRESS )
REPUBLIC OF THE PHILIPPINES )
First Regular Session )

HOUSE OF REPRESENTATIVES.

Introduced by Representative Rufus B. Rodriguez

sano 4520

House Bill No.

AN ACT
STRENGTHENING THE LEGAL EDUCATION BOARD, THEREBY AMENDING REPUBLIC
ACT NO. 7662, OTHERWISE KNOWN AS THE “LEGAL EDUCATION REFORM ACT OF
1993”, AND APPROPRIATING FUNDS THEREFOR

Be it enacted by the Senate and House of Representatives of the Philippines in Congress
Assembled:

SECTION 1. Short Title. - This Act shall be known as the “Revised Legal Education Reform
Act.”

SEC. 2. Section 2 of Republic No. 7662, otherwise known as the “Legal Education Reform
Act of 1993,” is hereby amended to read as follows:

“Section 2. Declaration of Policies. - It is hereby declared the policy of the
State to uplift the standards of legal education in order to prepare law students for
advocacy, counselling, problem-solving and decision-making, so as to infuse in
them the ethics of the legal profession AND impress upon them the importance,
nobility and dignity of the legal profession as an equal and indispensable partner of
the Bench in the administration of justice and to develop social competence.

‘Towards this end, the State shall undertake appropriate reforms in the legal
education system THAT WOULD ENSURE THE MAINTENANCE OF quality
standards among LEGAL EDUCATION INSTITUTIONS."

SEC. 3. Section 3 of Republic Act No. 7662 is hereby amended to read as follows:

"Section 3. General and Specific Objectives of Legal Education. - (a) Legal
education in the Philippines is geared to attain the following objectives:

(1) to prepare students for the practice of law OR WORK IN THE PUBLIC
OR PRIVATE LEGAL SERVICES SECTOR;

(2) to increase awareness among STUDENTS of the needs of the poor,
deprived and oppressed sectors of society;

(3) to train STUDENTS OF LAW for leadership;
(4) to contribute towards the promotion of justice and the improvement of
THE administration OF THE LEGAL SYSTEM AND LEGAL
EDUCATION INSTITUTIONS OF THE COUNTRY in the light of the
historical and contemporary developments of law WORLDWIDE; AND

(8) TO GENERATE LEGAL RESEARCH AND SCHOLARSHIP THAT
CONTRIBUTE TO THE EXPANSION OF LEGAL KNOWLEDGE.


(b) Legal education shall aim to accomplish the following specific objectives:

(1) to impart among law students a broad knowledge of THE law and its
various fields and of legal PHILOSOPHIES, SYSTEMS AND institutions;

(2) to enhance their legal research abilities to enable THE STUDENTS to
analyze, articulate and apply the law effectively, as well as to allow them to have a
holistic approach to legal problems and issues:

(3) _ to prepare students for advocacy, counselling, problem-solving and
decision-making, and to develop THEIR ability to deal with recognized legal problems
of the present and the future;

(4) to develop competence in any field of law as is necessary for gainful
employment or sufficient as a foundation for future training beyond the basic
professional degree, and to develop in THE STUDENTS the desire and capacity for
continuing study and self-improvement THROUGH THE DIFFERENT LEGAL
EDUCATION PROGRAMS;

(6) _ to INSTILL in THE STUDENTS the ethics and responsibilities of the
legal profession; and

(6) to CREATE AN ENVIRONMENT CONDUCIVE TO THE TRAINING OF
PROSPECTIVE lawyers AND ALLIED PROFESSIONALS who conscientiously pursue
the lofty goals of their profession THROUGH STRICT ADHERENCE TO ITS ETHICAL
NORMS.”

SEC. 4. Anew Section 4 is hereby inserted after Section 3 of Republic Act No. 7662, to read
as follows

“Section 4. DEFINITION OF TERMS. AS USED IN THIS ACT:

A ALLIED LEGAL STUDIES PROGRAMS - ACADEMIC PROGRAMS
INTENDED TO PROVIDE PARALEGALS AND OTHER PROFESSIONALS WITH
LEGAL KNOWLEDGE AND SKILLS THAT WOULD MEET THE EXPANDING NEEDS
OF THE PUBLIC AND PRIVATE SECTORS OUTSIDE THE PRACTICE OF LAW.
THE PROGRAM MAY ALSO INCLUDE A PREPARATORY LAW PROGRAM THAT
MAY QUALIFY THE ENTRY OF STUDENTS TO THE BASIC LAW PROGRAM IN
CONFORMITY WITH THE ADMISSION TO LEGAL STUDIES REQUIREMENTS OF
THE SUPREME COURT UNDER THE RULES OF COURT.

B. BASIC LAW PROGRAM ~ AN ACADEMIC PROGRAM LEADING TO
A PROFESSIONAL DOCTORATE DEGREE PRIMARILY DESIGNED FOR THE
TRAINING AND FORMATION OF PROSPECTIVE LAWYERS TO QUALIFY THEM
TO TAKE THE BAR EXAMINATIONS IN ACCORDANCE WITH SUPREME COURT
RULES;

(o GRADUATE LAW PROGRAMS ~ ADVANCED ACADEMIC STUDIES
AFTER COMPLETION OF THE BASIC LAW PROGRAM TO FURTHER LEGAL
SCHOLARSHIP AND PROFESSIONAL SKILLS; SUCH AS MASTER AND DOCTOR
OF LAWS, AND OTHER EQUIVALENTS;

D. LEGAL EDUCATION - THE TOTALITY OF VARIOUS ACADEMIC
PROGRAMS IN HIGHER EDUCATION DESIGNED FOR THE TRAINING OF
PROSPECTIVE LAWYERS, ALLIED PROFESSIONALS AND LEGAL SCHOLARS. IT


SHALL ENCOMPASS THE BASIC AND GRADUATE LAW PROGRAMS AND OTHER
LEGAL STUDIES PROGRAMS; AND

E. LEGAL EDUCATION INSTITUTIONS — ALL HIGHER EDUCATION
INSTITUTIONS RECOGNIZED BY THE COMMISSION ON HIGHER EDUCATION
(CHED) AND AUTHORIZED OR ACCREDITED UNDER THIS ACT TO OFFER
BASIC AND/OR GRADUATE LAW PROGRAMS, ALLIED LEGAL STUDIES
PROGRAMS AND/OR OTHER LEGAL STUDIES PROGRAMS.

SEC. 5. A new Section 5 is hereby inserted after Section 4 of this Act, to read as follows:

“Section 5. COVERAGE. - THIS ACT SHALL APPLY TO ALL EXISTING
LEGAL EDUCATION INSTITUTIONS IN THE PHILIPPINES, INCLUDING THE
LEGAL EDUCATION INSTITUTIONS IN THE BANGSAMORO AUTONOMOUS
REGION IN MUSLIM MINDANAO.

ALL LEGAL EDUCATION INSTITUTIONS WHICH SHALL BE ESTABLISHED
FOLLOWING THE APPROVAL OF THIS ACT SHALL LIKEWISE BE COVERED,
INCLUDING LEGAL EDUCATION INSTITUTIONS WHICH SHALL BE
ESTABLISHED IN AUTONOMOUS REGIONS.

SEC. 6. Section 4 of Republic Act No. 7662 is hereby amended and renumbered as Section
6, to read as follows:

“Section [4] 6. COMMISSION ON LEGAL EDUCATION; Creation and
Composition. - To carry out the purpose of this Act, there is hereby created the
COMMISSION ON LEGAL EDUCATION, hereinafter referred to as the COMMISSION
OR CLED.

The COMMISSION shall be composed of a CHAIRPERSON and the following
as regular members: a representative of the Integrated Bar of the Philippines (IBP); a
representative of the Philippine Association of Law Schools (PALS); a representative
from the ranks of active law practitioners AND a representative from the ranks of the
law professors.

THE CHAIRPERSON and regular members of the COMMISSION must be
natural-born citizens of the Philippines and members of the Philippine Bar who have
been engaged in the practice of law for at least ten (10) years, as well as ACTIVELY
ENGAGED in LEGAL EDUCATION IN AN ACCREDITED LEGAL EDUCATION
INSTITUTION ALSO FOR AT LEAST TEN (10) YEARS. RETIRED OR RESIGNED
JUSTICES OF THE SUPREME COURT AND COURT OF APPEALS, OR ELECTED
OR APPOINTED GOVERNMENT OFFICIALS WHOSE DUTIES AND FUNCTIONS
PROHIBIT THEM FROM ENGAGING IN THE PRACTICE OF LAW AND/OR
ACTIVELY ENGAGING IN LEGAL EDUCATION DURING THEIR TERM OF OFFICE,
MUST HAVE BEEN ENGAGED IN THE PRACTICE OF LAW OR LEGAL
EDUCATION FOR AT LEAST FIVE (5) YEARS PRIOR TO OR AFTER THEIR
ELECTION OR APPOINTMENT AS SUCH.

THE CHAIRPERSON AND REGULAR MEMBERS MUST
PREFERABLY BE HOLDERS OF AN EARNED MASTER OF LAWS DEGREE OR A
MASTERS DEGREE IN AN EDUCATION-RELATED FIELD, AND MUST NOT HAVE
BEEN CANDIDATES FOR ELECTIVE POSITIONS IN THE ELECTIONS
IMMEDIATELY PRECEDING THEIR APPOINTMENT. THEY SHALL BE
ACADEMICIANS KNOWN FOR THEIR HIGH DEGREE OF PROFESSIONALISM



AND INTEGRITY, WHO HAVE DISTINGUISHED THEMSELVES AS AUTHORITIES
IN THE FIELD OF LEGAL EDUCATION.

SEC. 7. Section 5 of Republic Act No. 7662 is hereby amended and renumbered as Section
7, to read as follows:

“Section 7. Term of Office; Compensation. - The CHAIRPERSON and regular
members of the COMMISSION shall be appointed by the President for a term of five
(5) years, without PREJUDICE TO ONE reappointment, from a list of at least three (3)
nominees prepared, with prior authorization from the Supreme Court, by the Judicial
and Bar Council, for every position or vacancy, and no such appointment shall need
confirmation by the Commission on Appointments. IF THE APPOINTMENT IS MADE
TO FILL UP A VACANCY CAUSED BY DEATH, DISQUALIFICATION, INCAPACITY
OR RESIGNATION, THE TERM OF OFFICE SHALL BE FOR THE UNEXPIRED
PORTION OF THE TERM OF THE PREDECESSOR. THE CHAIRPERSON OR ANY
REGULAR MEMBER OF THE COMMISSION, WHOSE TERM HAS ENDED, SHALL
SERVE IN A HOLDOVER CAPACITY, IN CONSONANCE WITH JURISPRUDENTIAL
DOCTRINES.

The CHAIRPERSON and regular members of the COMMISSION shall have
the same RANKS, SALARIES, PRIVILEGES, RETIREMENT AND OTHER BENEFITS
as the CHAIRPERSON and members, respectively, of the Constitutional
Commissions: Provided, that their salaries shall not be diminished during their term of
office.”

SEC. 8. Section 6 of Republic Act No. 7662 is hereby amended and renumbered as Section
8, to read as follows:

“Section 8. Secretariat. — The COMMISSION SHALL ORGANIZE A
SECRETARIAT WHICH SHALL BE HEADED BY AN EXECUTIVE DIRECTOR WHO
SHALL BE APPOINTED BY THE COMMISSION AND WHO SHALL REPORT TO,
AND BE UNDER THE CHAIRPERSON'S GENERAL SUPERVISION AND
CONTROL. THE SECRETARIAT SHALL CONSIST OF OFFICES FOR
ACCREDITATION AND ADMISSION STANDARDS, PROGRAMS, RESEARCH,
LEGAL, FINANCE, ACCOUNTING, HUMAN RESOURCES AND OTHERS
NECESSARY FOR THE EFFECTIVE PERFORMANCE OF THE COMMISSION'S
POWERS AND FUNCTIONS, SUBJECT TO THE NATIONAL COMPENSATION AND
POSITION CLASSIFICATION PLAN. THE COMMISSION, UPON THE
RECOMMENDATION OF THE EXECUTIVE DIRECTOR, 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

THE COMMISSION SHALL ALSO PREPARE ITS BUDGETARY
SUBMISSION TO CONGRESS.

The COMMISSION, UPON THE EXECUTIVE DIRECTOR'S
RECOMMENDATION, may appoint such officers and employees AS it may deem
necessary in the performance of its powers and functions.

THE COMMISSION SHALL ESTABLISH A FIELD OFFICE OR OFFICES IN
THE LUZON, VISAYAS AND IN MINDANAO REGIONS AS IT MAY DEEM
NECESSARY.”


SEC. 9. Section 7 of Republic Act No. 7662 is hereby amended and renumbered as Section
9, to read as follows:
“Section 9. Powers and Functions, - For the purpose of achieving the objectives
of this Act, the COMMISSION shal! have the following powers and functions:
(a) _ TO FORMULATE DEVELOPMENT PLANS, POLICIES, PRIORITIES
AND PROGRAMS ON LEGAL EDUCATION AND RESEARCH, AND IMPLEMENT
THE SAME UNDER THE PROVISIONS OF THIS ACT, OR IN THE ABSENCE OF
SUCH PROVISIONS, TO RECOMMEND TO THE LEGISLATIVE BRANCH
APPROPRIATE REMEDIAL LEGISLATION;

(b) WITHIN THE PARAMETERS OF ITS POWERS AND FUNCTIONS AS.
HEREIN ENUMERATED, TO ADMINISTER THE LEGAL EDUCATION SYSTEM AND.
supervise LEGAL EDUCATION INSTITUTIONS in the country, BOTH PUBLIC AND
PRIVATE, IN RELATION TO THEIR LEGAL EDUCATION PROGRAMS;

(c) to set the standards of accreditation for LEGAL EDUCATION
INSTITUTIONS AND OTHER LEGAL EDUCATION PROGRAMS, taking into account,
among others, THE NEED FOR SUCH QUALITY PROGRAMS AS WELL AS THE
NUMBER OF EXISTING LEGAL EDUCATION INSTITUTIONS AND OTHER LEGAL
EDUCATION PROGRAMS IN THE COMMUNITY, the size of enroliment, the
qualifications AND AVAILABILITY of the members of the faculty, library AND other
PHYSICAL facilities, INCLUDING THE CAPACITY TO INSTALL AND PROVIDE
HARDWARE/SOFTWARE FOR THE VIRTUAL TRANSMISSION OF KNOWLEDGE,
AND SUCH OTHER REASONABLE STANDARDS, without encroaching upon the
academic freedom of institutions;

(@) to accredit LEGAL EDUCATION INSTITUTIONS that meet the
standards of accreditation, AND PROVIDE INCENTIVES, INCLUDING SUBSIDIES,
TO ACCREDITED LEGAL EDUCATION INSTITUTIONS, PUBLIC OR PRIVATE, AND
TO THEIR STUDENTS AND FACULTY MEMBERS;

(e) _ to prescribe minimum standards for admission TO THE BASIC LAW
PROGRAM AND THE ALLIED LEGAL STUDIES PROGRAMS and the minimum
qualifications of faculty members WITHOUT ENCROACHING UPON THE ACADEMIC
FREEDOM OF INSTITUTIONS OF HIGHER LEARNING;

to prescribe the basic curricula AND OTHER MINIMUM STANDARDS
for the DIFFERENT LAW PROGRAMS aligned to THE PREPARATION FOR
PROFESSIONAL practice and social consciousness, and such other courses of study
as may be prescribed by the LEGAL EDUCATION INSTITUTIONS under the different
levels of accreditation status. NOTHING IN THIS ACT SHALL BE CONSTRUED AS
LIMITING THE ACADEMIC FREEDOM OF LEGAL EDUCATION INSTITUTIONS. IN
PARTICULAR, NO ABRIDGMENT BY THE COMMISSION OF CURRICULAR
FREEDOM OF ANY LEGAL EDUCATION INSTITUTION SHALL BE MADE, EXCEPT
FOR THE FOLLOWING:

i, MINIMUM UNIT REQUIREMENTS FOR GENERAL LEGAL
EDUCATION AS MAY BE DETERMINED BY THE COMMISSION;

ji, MINIMUM UNIT REQUIREMENTS FOR SPECIFIC
ACADEMIC PROGRAMS; AND

iii, SPECIFIC PROFESSIONAL SUBJECTS AS MAY BE
MANDATED BY RULES PROMULGATED BY THE SUPREME COURT.


ACADEMIC CURRICULAR RESTRICTIONS SHALL BE THE SAME FOR ALL
LEGAL EDUCATION INSTITUTIONS, PUBLIC OR PRIVATE, COVERED BY THIS
ACT."

(g) | to MONITOR AND EVALUATE THE PERFORMANCE AND QUALITY
OF LEGAL EDUCATION PROGRAMS AND LEGAL EDUCATION INSTITUTIONS
FOR APPROPRIATE INCENTIVES, INCLUDING SUBSIDIES, AND TO IMPOSE
ADMINISTRATIVE PENALTIES SUCH AS, BUT NOT LIMITED TO, THE
DIMINUTION OR WITHDRAWAL OF SUBSIDY OR INCENTIVES, WITHDRAWAL OF
ACCREDITATION, PROGRAM TERMINATION OR CLOSURE OF THE LEGAL
EDUCATION INSTITUTION:

(h) to IDENTIFY, SUPPORT AND DEVELOP POTENTIAL AREAS OF
EXCELLENCE IN LEGAL EDUCATION PROGRAMS NEEDED FOR THE
DEVELOPMENT OF WORLD-CLASS SCHOLARSHIPS, PROMOTION OF THE
RULE OF LAW AND ATTAINMENT OF THE GOALS OF NATION BUILDING;

(i) TO RESOLVE ALL MATTERS INVOLVING ACTS OR OMISSIONS IN
RELATION TO REPUBLIC ACT NO. 7662 AND ITS AMENDMENTS, AS WELL AS
ORDERS, MEMORANDA AND CIRCULARS ISSUED BY THE COMMISSION IN THE
PERFORMANCE OF ITS REGULATORY AND QUASI-JUDICIAL FUNCTIONS;

TO HOLD HEARINGS, CONDUCT INVESTIGATIONS AND OTHER
APPROPRIATE DISPUTE RESOLUTIONS TO ENSURE SPEEDY DISPOSITION OF
CASES IN THE PERFORMANCE OF ITS QUASI-JUDICIAL FUNCTIONS;

(k) TO HAVE APPELLATE JURISDICTION IN THE RESOLUTION OF
CONTROVERSIES BETWEEN AND AMONG LEGAL EDUCATION INSTITUTIONS
AND THEIR STUDENTS OR FACULTY MEMBERS IN MATTERS INVOLVING
LEGAL EDUCATION, AND IMPOSE ADMINISTRATIVE PENALTIES INCLUDING
FINES, PROVIDED THAT THIS POWER DOES NOT ENCROACH UPON THE
ACADEMIC FREEDOM OF THE INSTITUTION OR INTRUDE INTO THE
JURISDICTION OF REGULAR AND SPECIAL COURTS, LABOR AND OTHER
QUASI-JUDICIAL TRIBUNALS;

(l) | TO COLLECT FEES FOR THE ISSUANCE OF GOVERNMENT
PERMIT OR GOVERNMENT RECOGNITION, AND OFFICIAL CERTIFICATIONS,
AND FOR THE HOLDING OF SEMINARS AND OTHER SERVICES PROVIDED BY
THE COMMISSION,

(m) TO IMPOSE REASONABLE FINES NOT EXCEEDING ONE
HUNDRED THOUSAND PESOS (P100,000.00), AND OTHER ADMINISTRATIVE
SANCTIONS FOR VIOLATIONS OF THIS ACT OR THE RULES AND
REGULATIONS OF THE COMMISSION ADOPTED PURSUANT TO THIS ACT:
PROVIDED, THAT THE AMOUNT OF FINES SHALL BE AUTOMATICALLY
ADJUSTED TO THE VALUE PREVAILING AT THE TIME OF ADJUSTMENT USING
THE CONSUMER PRICE INDEX (CPI) AS PUBLISHED BY THE PHILIPPINE
STATISTICAL AUTHORITY (PSA);

(n) TO ACCEPT DONATIONS, GRANTS, AID, FUNDING AND ANY
GRATUITOUS TRANSFERS, WHETHER IN CASH, REAL OR PERSONAL
PROPERTY, TO BE USED FOR ACCOMPLISHING THE OBJECTIVES OF THIS
ACT OR FOR THE ADVANCEMENT OF LEGAL EDUCATION IN THE COUNTRY;
AND


(0) to perform such other ADMINISTRATIVE functions and prescribe such
rules and regulations necessary for the attainment of the policies and objectives of this
Act."

SEC. 10. Sections 8 and 9 of Republic Act No. 7662 are hereby amended, integrated and
renumbered as Section 10, to read as follows:

“Section 10. Accreditation of LEGAL EDUCATION INSTITUTIONS. — LEGAL
Education Institutions may not operate AS SUCH OR OFFER LAW EDUCATION
PROGRAMS unless accredited by the COMMISSION. Accreditation of LEGAL
EDUCATION INSTITUTIONS may be granted only to THOSE recognized by the
government AND WHOSE CHARTERS OR ARTICLES OF INCORPORATION
EXPRESSLY OR IMPLIEDLY AUTHORIZE THEM TO OFFER LAW COURSES.

The COMMISSION may withdraw or downgrade the accreditation status of a
LEGAL EDUCATION INSTITUTION WHICH fails to maintain the standards set for its
accreditation status.

SEC. 11. Section 10 of Republic Act No. 7662 is hereby deleted.

SEC. 12. Section 11 of Republic Act No. 7662 is hereby amended, to read as follows:

“Section 11. Legal Education Fund.- There is hereby created a special
endowment fund, to be known as the Legal Education Fund or FUND, TO BE USED
EXCLUSIVELY FOR THE IMPROVEMENT AND STRENGTHENING OF LEGAL
EDUCATION IN THE ENTIRE COUNTRY. THE FUND shall be under the control of
the COMMISSION, and administered as a separate fund by the Social Security System
(SSS) which shall invest the same with due and prudent regard to its solvency, safety
and liquidity.

The Legal Education Fund shall be established out of and maintained from THE
GOVERNMENT'S CONTRIBUTION TO THE FUND, CONSISTING OF THE
FOLLOWING:

1 THE AMOUNT OF FIVE HUNDRED MILLION PESOS
(P500,000,000.00) AS SEED CAPITAL;

2. THE COLLECTIONS OF FEES FOR THE ISSUANCE OF
GOVERNMENT PERMITS OR GOVERNMENT RECOGNITIONS, FEES FOR
OFFICIAL CERTIFICATIONS AND REGISTRATION FEES IN SEMINARS
AND THE LIKE CONDUCTED BY THE COMMISSION; AND

S ADMINISTRATIVE FINES COLLECTED BY THE
COMMISSION.

b. THE FUND SHALL HAVE A PRIVATE PORTION SOURCED FROM
DONATIONS, CONTRIBUTIONS, BEQUESTS, AND GRANTS, IN CASH, MADE
FOR THE PURPOSE OF CONTRIBUTING TO THE FUND.

©. THE EARNINGS OF THE FUND SHALL BE UTILIZED EQUITABLY
ACCORDING TO REGIONS AND PROGRAMS.

Being a special endowment fund, only the interests earned on the Fund shall
be used exclusively for the purposes of this Act, WHICH SHALL include support for
faculty development grants, professorial chairs, library improvements, SUBSIDIES
FOR STUDENTS’ TUITION FEES, AND OTHER FORMS OF FINANCIAL


ASSISTANCE AND PROGRAMS for the advancement of LEGAL education in
ACCREDITED LEGAL EDUCATION INSTITUTIONS: PROVIDED, THAT IN THE
ALLOCATION OF FUNDS, PREFERENCE SHALL BE GIVEN TO LOCAL AND
STATE COLLEGES AND UNIVERSITIES; AND PROVIDED, FURTHER, THAT NO
PART OF ANY INCOME FROM THE FUND SHALL BE USED FOR THE
OPERATIONAL EXPENSES OF THE COMMISSION SUCH AS PAYMENT OF
STAFF COMPENSATION AND BENEFITS, CAPITAL OUTLAYS, MAINTENANCE
AND OPERATING EXPENSES, ETC.

For THE purpose of DETERMINING THE AVAILABLE AMOUNT FOR
EXPENDITURE, an amount not exceeding FIFTY PERCENT (50%) of the interest on
the Fund shall be utilized.

THE FUND SHALL BE IMMEDIATELY AVAILABLE, AND IN NO CASE LATER
THAN TWO (2) YEARS FROM THE EFFECTIVITY OF THIS ACT.

The COMMISSION, in consultation with the SSS, shall issue the necessary
rules and regulations for the collection, administration and utilization of the Fund.”

SEC. 13. Anew Section 12 is hereby inserted after Section 11 to read as follows:

“SECTION 12. TAX EXEMPTIONS - ANY DONATION, CONTRIBUTION,
BEQUEST, AND GRANT, IN CASH OR PROPERTY, REAL OR PERSONAL,
DESTINED TO BE PART OF THE LEGAL EDUCATION FUND, WHICH MAY BE
MADE TO THE COMMISSION, SHALL CONSTITUTE AS ALLOWABLE DEDUCTION
FROM THE INCOME TAX DUE OF THE DONOR, AND SHALL BE EXEMPT FROM
DONOR'S TAX, SUBJECT TO SUCH CONDITIONS AS PROVIDED UNDER THE
NATIONAL INTERNAL REVENUE CODE, AS AMENDED. VALUATION OF
DONATIONS, IN OTHER THAN MONEY, SHALL BE BASED ON WHICHEVER IS
LOWER BETWEEN THE ACQUISITION COST AND FAIR MARKET VALUE OF THE
PROPERTY AT THE TIME OF THE DONATION.

IF THE DONOR PROVIDES THAT THE DONATION SHALL NOT FORM
PART OF THE LEGAL EDUCATION FUND, THE DONATION IS EXEMPT FROM
DONOR'S TAXES BUT THE AMOUNT DONATED SHALL BE ALLOWED ONLY AS
A DEDUCTION FROM GROSS INCOME AS PROVIDED UNDER THE PROVISIONS
OF THE NATIONAL INTERNAL REVENUE CODE.”

SEC. 14. Section 13 of Republic Act No. 7662 is hereby amended, to read as follows:

“Section 13. Appropriations. - The amount of THREE HUNDRED Million Pesos
(P300,000,000.00) is hereby authorized to be charged against the current year's
appropriation of the Contingent Fund for the initial expenses of the REORGANIZED
COMMISSION, EXCLUDING CAPITAL OUTLAY. THEREAFTER, THE BUDGET
FOR THE OPERATIONS OF THE COMMISSION SHALL BE INCLUDED IN THE
GENERAL APPROPRIATIONS ACT.

SEC. 15. Anew Section 14 is hereby inserted after Section 13, to read as follows:

“Section 14. IMPLEMENTING RULES AND REGULATIONS. - WITHIN ONE
HUNDRED TWENTY (120) DAYS FROM THE EFFECTIVITY OF THIS ACT, THE
COMMISSION, IN COORDINATION WITH THE UNIVERSITY OF THE PHILIPPINES
LAW CENTER, fHE—CHED],THE IBP, PALS, AND OTHER RELEVANT
STAKEHOLDERS, SHALL ISSUE THE RULES AND REGULATIONS FOR THE
IMPLEMENTATION OF THIS ACT: PROVIDED, THAT, THE RULES AND


REGULATIONS PREVIOUSLY ISSUED BY THE COMMISSION IN THE FORM OF
MEMORANDUM ORDERS, RESOLUTIONS AND OTHER ISSUANCES SHALL
CONTINUE TO BE IN FULL FORCE AND EFFECT UNLESS THEY DIRECTLY
CONTRAVENE ANY PROVISION OF THIS ACT OR ARE AMENDED OR REPEALED
BY SUBSEQUENT COMMISSION ISSUANCES."

SEC. 16. A new Section 15 is hereby inserted after Section 14, to read as follows:

“Section 15. TRANSITORY PROVISIONS. —- UPON THE EFFECTIVITY OF
THIS ACT, THE INCUMBENT CHAIRPERSON AND COMMISSIONERS OF THE
COMMISSION SHALL CONTINUE TO PERFORM THEIR RESPECTIVE DUTIES
AND RESPONSIBILITIES AND RECEIVE THEIR CORRESPONDING SALARIES
AND BENEFITS ACCORDINGLY. WITH THE EXCEPTION OF THE
REPRESENTATIVE OF THE LAW STUDENTS’ SECTOR, WHO SHALL SERVE
UNTIL THE EXPIRATION OF HIS TERM AS INDICATED IN HIS APPOINTMENT,
THE CHAIRPERSON AND OTHER COMMISSIONERS SHALL EACH SERVE A
FRESH TERM OF FIVE (5) YEARS RECKONED FROM EFFECTIVITY OF THIS ACT
TO ENSURE THE SMOOTH TRANSITION TO THE NEW ORGANIZATIONAL
STRUCTURE AND STAFFING PATTERN OF THE COMMISSION. THE
PREPARATION AND APPROVAL OF THE SAID NEW ORGANIZATION
STRUCTURE AND STAFFING PATTERN SHALL, AS FAR AS PRACTICABLE,
RESPECT AND ENSURE THE SECURITY OF TENURE AND SENIORITY RIGHTS
OF AFFECTED GOVERNMENT EMPLOYEES. THOSE PERSONNEL, WHOSE
POSITIONS ARE NOT INCLUDED IN THE NEW STAFFING PATTERN AS
APPROVED BY THE COMMISSION, OR WHO ARE NOT REAPPOINTED, OR WHO
CHOOSE TO BE SEPARATED AS A RESULT OF THE REORGANIZATION, SHALL
BE PAID THEIR SEPARATION OR RETIREMENT BENEFITS UNDER EXISTING
LAWS.

WITHIN THREE (3) MONTHS AFTER THE EFFECTIVITY OF THE ACT, THE
COMMISSION SHALL APPOINT THE EXECUTIVE DIRECTOR WHO WILL HEAD
THE SECRETARIAT.

SEC. 17. Section 14 of Republic Act No. 7662 is hereby renumbered as Section 16, to read
as follows.

“Section 16. Separability Clause. - If any provision of this Act is declared
unconstitutional or the application thereof to any person, circumstance or transaction is held
invalid, the validity of the remaining provisions of this Act and the applicability of such
provisions to other persons, circumstances and transactions shall not be affected thereby.”

SEC. 18. Section 15 of Republic Act No. 7662 is hereby renumbered as Section 17, to read
as follows
“Section 17. Repealing Clause. - All laws, decrees, executive orders, rules and
regulations, issuances or parts thereof inconsistent with this Act are hereby repealed
or amended accordingly.”

SEC. 19. Section 16 of Republic Act No. 7662 is hereby renumbered as Section 18, to read
as follows:
“Section 18. Effectivity. - This Act shall take effect after fifteen (15) days
following its publication in the Official Gazette or in ANY NEWSPAPER of general
circulation.”

Approved,

10