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

HOUSE OF REPRESENTATIVES

Introduced by Representative Rufus B.

House Bill No. 1855
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 leaming, 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 of 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.



EIGHTEENTH CONGRESS »)
REPUBLIC OF THE PHILIPPINES )
First Regular Session )

HOUSE OF REPRESENTATIVES,

Introduced by Representative Rufus B. Rodriguez _

oe 1855

House Bill No.

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. 4. BOARD OF COMMISSIONERS. THERE SHALL BE A
MULTI-SECTORAL AND INTERDISCIPLINARY GOVERNING BOARD OF
COMMISSIONERS RESPONSIBLE FOR POLICY-MAKING AND
GOVERNANCE OF THE ENTIRE SUBSYSTEM OF HIGHER EDUCATION.
IT SHALL BE COMPOSED OF SEVEN MEMBERS WHO WILL SERVE IN
PART-TIME CAPACITY AND WHO SHALL REPRESENT THE ACADEME.
PROFESSIONAL ASSOCIATIONS, PRIVATE AND PUBLIC BUSINESS AND
INDUSTRY AND SUCH OTHER SECTORS WHICH HAVE DIRECT STAKES
IN HIGHER EDUCATION: PROVIDED, THAT, THE DIRECTOR-GENERAL
OF THE SECRETARIAT SHALL BE AN EX-OFFICIO BUT NON-VOTING
MEMBER OF THE BOARD.

SEC. 3. Section 4 of R.A. 7722 is hereby deleted and replaced with a new Section 4, to read
as follows:


THE COMMISSIONERS SHALL BE PERSONS OF HIGHEST
PROFESSONALISM AND INTEGRITY, AND WHO HAVE DISTINGUISHED
THEMSELVES AS AUTHORITIES AND EXPERTS IN THEIR CHOSEN
FIELDS OF LEARNING AS PROFESSORS, RESEARCHERS, MANAGERS,
PROFESSIONAL PRACTITIONERS AND OTHER LINES OF ENDEAVORS
THAT CAN CONTRIBUTE TO THE EFFICIENT AND EFFECTIVE
EXTERNAL GOVERNANCE OF HIGHER EDUCATION. NO PERSON CAN
BE APPOINTED COMMISSIONER IF HE HAS BEEN A CANDIDATE FOR
ELECTIVE POSITION IN THE IMMEDIATELY PRECEEDING ELECTION.

IN NO CASE SHALL ANY AND ALL OF THE COMMISSIONERS
APPOINT REPRESENTATIVES TO ACT ON THEIR BEHALF.

THE COMMISSION SHALL BE AN EQUAL-OPPORTUNITY
INSTRUMENTALITY AND SHALL STRICTLY ADHERE TO THE TENETS OF
TRANSPARENCY AND ACCOUNTABILITY. TO DEMOCRATIZE THE
SELECTION AND APPOINTMENT OF PERSONS IN THE BOARD OF
COMISSIONERS AND THE SECRETARIAT, ALL VACANCIES IN THE
COMMISSION AND THE SECRETARIAT SHALL BE WELL-PUBLICIZED
AND TO WHICH THE APPLICATION BY INDIVIDUALS OF MOST
SUITABLE PROFESSIONAL QUALIFICATIONS AND MORAL PROBITY
SHALL BE ENCOURAGED. TO PRESERVE ACADEMIC AND FISCAL
AUTONOMY, THE COMMISSIONERS SHALL ELECT FROM AMONG
THEMSELVES THE CHAIRMAN AND VICE CHAIR OF THE COMMISSION.

THE COMMISSION SHALL REGULARLY MEET ONCE IN TWO
MONTHS: PROVIDED, HOWEVER, THAT UPON CERTIFICATION OF THE
DIRECTOR-GENERAL OF THE SECRETARIAT, IT SHALL CONVENE
SPECIAL MEETINGS IF THE EXIGENCIES SO WARRANT.

SEC. 4, Section 5 of R.A. 7722 is hereby amended to read as follows:
“SEC. 5. Term of Office. - The President shall appoint ALL the [full-
time chairman and the commissioners for a term of four (4) years.)
MEMBERS OF THE BOARD OF COMMISSIONERS without prejudice to
[one] reappointment BASED ON MERIT AND TRACK RECORD OF
PERFORMANCE. The terms of the initial appointees shall be on a staggered
basis TO ENSURE CONTINUITY AND COHERENCE OF POLICIES AND
PROGRAMS ACROSS ADMINISTRATIONS. [: the full-time chairman] A SET
OF THREE COMMISSIONERS shall hold office for a term of [four (4)] FIVE
(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 Actiis 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)

>)
c)

B)

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;

formulate and recommend development plans, policies, priorities and
programs on research;

recommend to the executive and legislative branches, priorities and
grants on higher education and research;]

APPROVE THE CHANGES IN THE INSTITUTIONAL STATUS OF
PRIVATE UNIVERSITIES AND COLLEGES AND RECOMMEND TO
THE LEGISLATURE THE CREATION, DISSOLUTION AND MERGER
OF STATE COLLEGES AND UNIVERSITIES AND OTHER PUBLICLY


FUNDED TERTIARY INSTITUTIONS ON THE BASIS OF NATIONAL
AND SECTORAL DEVELOPMENT PLANS;

[d] C) set minimum standards for programs and institutions of higher learning
recommended by panel of experts in the field and subject to public
hearing, and enforce the same. LIKEWISE, IT SHALL HAVE THE
EXCLUSIVE AUTHORITY TO DETERMINE THE MINIMUM
QUALIFICATIONS FOR FACULTY WHO CAN TEACH IN HIGHER
EDUCATION INSTITUTIONS;

[e] D) monitor and evaluate the performance of programs and institutions of
higher learning, BOTH PRIVATE AND PUBLIC, INCLUDING LOCALLY
FUNDED COLLEGES AND UNIVERSITIES, for appropriate incentives as
well as the imposition of sanctions such as, but not limited to, [diminution
of] 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 EXCLUSIVE/SOLE 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;

[a] 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
INSTITUTIONS;

[hl 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] !) 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;

1) 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;

In] 0) promulgate such rules and regulations and exercise such other powers
and functions as may be necessary to carry out effectively the purpose
and objective of this Act; and

{o] P) perform such other functions as may be necessary for its effective
operations and for the continued enhancement, growth or development of
higher education.

SEC. 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
DEVELOPMENT OF WORLD-CLASS HIGHER EDUCATION SUB-SYSTEM
THE COMMISSION SHALL TAKE STEPS TO ATTRACT THE MOST
QUALIFIED AND COMPETENT STAFF IN ALL GRADES AND LEVELS AND
SHALL INSTITUTE NECESSARY AND FLEXIBLE INTERNAL RULES AND
PROCEDURES TOWARDS HIRING AND REMOVAL OF PERSONNEL IN
THE INTEREST OF EFFICIENCY, ECONOMY, DISCIPLINE AND BETTER
PERFORMANCE STANDARDS.”

SEC. 11. A new Section 12 is hereby inserted to the same Act, as follows:

“SEC. 12. THE EXECUTIVE OFFICERS. - THE COMMISSION
SECRETARIAT SHALL BE HEADED BY A DIRECTOR-GENERAL,
ASSISTED BY TWO DEPUTY DIRECTOR GENERALS WHO WILL
ALTERNATELY SERVE AS SECRETARY TO THE BOARD OF
COMMISSIONERS AND WHOSE OTHER RESPONSIBILITIES SHALL BE
BASED ON THE RESPONSIVE STRUCTURE AS RECOMMENDED BY THE
ORGANIZATIONAL EVALUATION. THE DIRECTOR GENERAL SHALL ACT
AS THE CHIEF OPERATING AND EXECUTIVE OFFICER OF THE


COMMISSION AND SHALL BE AN EX-OFFICIO NON-VOTING MEMBER OF

THE BOARD OF COMISSIONERS. AS SUCH, THE DIRECTOR-GENERAL,

WITH THE RANK OF UNDERSECRETARY, SHOULD HAVE A WELL-

BALANCED EXPERIENCE AND EXPOSURE IN ORGANIZATIONAL AND

FINANCIAL MANAGEMENT IN BOTH PUBLIC AND PRIVATE SETTING AND

HUMAN RESOURCES DEVELOPMENT, AMONG OTHERS.

AS DIRECTOR-GENERAL HE SHALL:

(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;

(4) | SUBJECT TO THE CONCURRENCE OF THE COMMISSION, MAKE
TEMPORARY ASSIGNMENTS, ROTATE, AND TRANSFER
PERSONNEL IN ACCORDANCE WITH PERTINENT LAWS;

(5) | SUBMIT AN ANNUAL BUDGET OF THE SECRETARIAT AND
COMPOSITE HIGHER EDUCATION BUDGET TO THE COMMISSION
FOR APPROVAL;

(6) | REPRESENT THE COMMISSION ON HIGHER EDUCATION IN
INTERNATIONAL ORGANIZATIONS AND MEETINGS WHICH
EXCLUSIVELY DEAL WITH HIGHER EDUCATION; AND.

(7) 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. [10] 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 of higher
‘education in the entire country. FOR THIS PURPOSE, THE COMMISSION
SHALL EXERCISE COMPLETE AUTONOMY OVER THE MANAGEMENT
AND USE OF THE FUND.
XX X XxX"

SEC. 13. Section 11 of the same Act is hereby amended to read as follows:

“SEC. [11] 14. Management and Administration of the Higher
Education Development TRUST Fund. - The TRUST Fund shall be
administered by the Commission. For sound, PROFITABLE and judicious
management of the TRUST 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 TRUST 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 TRUST 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 shalll 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

4) The TRUST Fund shall be utilized equitably according to regions,
HIGHER EDUCATION INSTITUTIONS and programs. IN NO
CASE SHALL THE TRUST 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. [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 standards, PROGRAM

DEVELOPMENT and in program and institution monitoring and evaluation

The technical panels shall_be composed of senior specialists,

PROFESSIONAL PRACTITIONERS or academicians to be appointed by the

Commission. THEY SHALL BE DIRECTLY UNDER THE OFFICE OF THE
DIRECTOR-GENERAL

SEC. 15. Section 13 of the same Act is hereby amended to read as follows:

"SEC. [13] 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. [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 HEDF AS INCENTIVES FOR ACCREDITATION.

SEC. 17. Section 15 of the same Act is hereby amended to read as follows:

“SEC. [15] 18. Tax Exemptions. - Any donation, contribution, bequest
and grant which may be made to the Commission shalll 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 or 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,