ic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City, Metro Manila

TWENTIETH CONGRESS
First Regular Session

House Bit No, 1995

Introduced by Representative Midy N. Cua
Lone District, Quirino

AN ACT ESTABLISHING THE PHILIPPINE ENTREPRENEURS ACADEMY AND
APPROPRIATING FUNDS THEREFOR

EXPLANATORY NOTE

Article Il, Section 9 of the Constitution provides that the State shall promote a just and dynamite social
order that will ensure the prosperity and independence of the nation and free the people from poverty
through policies that provide adequate social services. promote full employment. a rising standard of
living. and an improved quality of life for al.

In the Philippine economy. the Micro, Small. and Me iterprises (MSMEs_ sector serves as the
cornerstone of the Philippine economy. playing a crucial role in employment generation. A 2020 study
by the United Nations Development Programme found that MSMEs make up 99.5% of business
establishments in the country, provide 63% of employment to the Philippine workforce, and contribute
about 40% to the country’s Gross Domestic Product (GDP). These have led to MSMEs becoming the
backbone of the Philippine economy.

Despite this, however, there is are little to no state-funded opportunities for citizens to obtain education
on entrepreneurship. The country has yet to invest and capitalize on the potential of MSMEs for
‘economic growth. As such. there is an opportunity for this develop:nent. Thus this bill aims to address
such gap by establishing a learning institution to be known as the Philippine Entrepreneurs Academy,
This is also in support of one of the administration's top priorities. that is to revitalize and revive the
MSMEs in the country. by providing adequate protection and ample opportunities that will allow the
same to be more resilient and thriving,

The passing of this bill in the 19" Congress further attests to the importance and significance of this
bill

In view of the foregoing. immediate approval of this bill is requested.

Loné District, Quirino


HOUSE OF REPRESENTATIVES,
Quezon City, Metro Manila

‘TWENTIETH CONGRESS
First Regular Session

House Bill No._1995,

Introduced by Representative Midy N. Cua
Lone District, Quirino

AN ACT ESTABLISHING THE PHILIPPINE ENTREPRENEURS ACADEMY AND
APPROPRIATING FUNDS THEREFOR
Be it enacted by the Senate and House of Representatives of the Philippines in Congress assembled:

SECTION 1. Short Tit

~This Act shall be known as the “Philippine Entrepreneurs Academy Act.”

SEC. 2. Establishment. — There is hereby established a learning institution, under the supervision of
the Commission on Higher Education (CHED), to be known as the “Philippine Entrepreneurs
Academy,” hereinafter referred to as the Academy.

SEC. 3. General Mandate. - The Academy shall provide undergraduate and graduate degree
programs, short-term technical-vocational nondegree courses, and modular trainings that will enhance
the core competencies of individuals on entrepreneurship. It shall cater to technical-vocational, college,
and graduate students. It shall promote the relevance of entrepreneurship to job generation and its
significant role to the sustainable economic growth of the country.

The Academy shall formalize and integrate, under a school system, the nonformal entrepreneurship
programs and short-term technical-vocational courses of the Technical Education and Skills
Development Authority (TESDA), Department of Trade and Industry (DTI), Department of Science
and Technology (DOST), and other government agencies. It shall administer education and
consultancy, and supervise publication on entrepreneurship. It shall also conduct scientific and policy-
oriented research and training.

‘The Academy shall comply with the requirements and standards of the CHED and the provisions of
Republic Act No. 8292, otherwise known as the “Higher Education Modernization Act of 1997,” and
other pertinent laws on higher education.

SEC. 4, Curricular Offerings. - The Academy shall offer undergraduate and graduate degree
programs and short-term diploma or certificate courses on entrepreneurship, including entrepreneurship
development in the fields of agriculture, trade, technology, and the manufacturing sector. The
curriculum and modules of the programs shall be designed and developed following the competency-
based curriculum model and in accordance with the mandate of this Act.

SEC. 5, School Sites. ~ The Academy shall have two (2) campuses, with the main campus to be
established in the Clark Freeport and Special Economic Zone located in the Provinces of Pampanga and
Tarlac, to be known as the “Philippine Entrepreneurs Academy Main Campus-Clark.” The other


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‘campus shall be located in the City of Baguio, to be known as the “Philippine Entrepreneurs Academy-
Baguio City Campus”.

SEC. 6. Governing Board. ~ The governing board of the Academy shall be the Board of Trustees,
hereinafter referred to as the Board, which shall be chaired and co-chaired by the Chairperson of the
CHED, and the President of the Academy, respectively, with the following as members:

(a) Chairperson of the Committee on Higher, Technical and Vocational Education of the Senate;

(b) Chairperson of the Committee on Higher and Technical Education of the House of Representatives;
(c) Director General of the TESDA;

(d) Secretary of the Department of Economy, Planning, and Development (DEPDev);

(e) Secretary of the DOST;

(0) Secretary of the DTI;

(g) President of the federation of faculty associations of the Academy:

(h) President of the federation of student councils of the Academy;

(i) President of the federation of alumni associations of the Academy; and

(j) two (2) prominent citizens from the private sector who have distinguished themselves in their
professions or fields of specialization.

‘The members of the Board shall not receive any compensation or remuneration for their services as
such, but may be reimbursed for actual and necessary expenses incurred in discharging the business of
the Academy

SEC. 7. Powers and Duties of the Board, — The Board shall be the highest policymaking body of the
‘Academy. In addition to its general powers of administration and the exercise of all the powers granted
to the Board of a corporation under existing laws, the Board shall have the following specific powers,
and duties:

(a) Promulgate and implement policies in accordance with the declared State policies and pertinent
provisions of the Philippine Constitution on education, as well as policies, standards, and thrusts of
the CHED under Republic Act No. 7722, otherwise known as the "Higher Education Act of 1994;"

(b) Adopt rules and regulations not contrary to law, as may be necessary to carry out the purposes and
functions of the Academy, and to effectively discharge its responsibilities;

(6) Receive assistance from any legitimate source to augment the internal sources of funds, as may be
provided, for the support of the Academy in the manner it may determine, in its discretion, to carry
ut the purposes and functions of the Academy;

(@) Constitute the Board, as herein defined;

(©) Appoint the President, and as many Vice-Presidents as may be necessary to assist the President in
the administration of the affairs of the Academy;

(©) Review periodically the administrative procedures and programs of the Academy;


(g) Receive, in kind and in trust, legacies, gifts and donations of real and personal properties of all
kinds, and to administer and dispose the same when necessary for the benefit of the Academy,
subject to limitations, discretions and instructions of the donors, if any;

(h) Fix the tuition fees and other school charges such as matriculation fees, graduation fees, laboratory
fees, and other miscellaneous fees as the Board may deem proper to impose after due consultations
with the involved sectors: Provided, That these fees shall not be prohibitive or unreasonable as to
deviate from the purpose for which the Academy was created based on the guidelines of the CHEI

Such fees and charges, including government subsidies and other incomes generated by the
Academy, shall constitute its regular fund and shall be deposited in any authorized government
depository bank, and all interests that shall accrue therefrom shall form part of the same fund for
the use of the Academy.

Any provision of existing law, rule and regulation to the contrary notwithstanding, any income
generated by the Academy from tuition fees and other charges, as well as from the operation of
auxiliary services and land grants, shall be retained by the Academy, and may be disbursed by the
Board for instruction, research, extension services, or other programs and projects of the Academ;
Provided, That all fiduciary fees shall be disbursed for the specific purposes for which they were
collected.

If for reason beyond its control, the Academy shall not be able to pursue any project for which funds
have been appropriated and allocated under its approved program of expenditures, the Board may
authorize the use of said funds for any reasonable purpose which, in its discretion, may be necessary
and urgent for the attainment of the objectives and goals of the Academy;

(i) Adopt and implement a socialized tuition scheme for greater access of poor, but deserving students
in accordance with Republic Act No.10931 or the "Universal Access to Quality Tertiary Education
Act;"

(i) Authorize the construction or repair of its buildings, machineries, equipment, and other facilities,
as well as the purchase and acquisition of real and personal properties, including the necessary
supplies, materials, and equipment;

(k) Appoint, upon the recommendation of the President of the Academy, the deans, executive directors,
heads of departments, faculty members, and other officials and employees;

()) Prescribe the salaries of faculty members and administrative officials and employees, subject to the
provisions of Republic Act No. 11466, otherwise known as the "Salary Standardization Law of
2019," and by such other laws amendatory thereto, which may hereinafter be enacted, and civil
service rules and regulations governing hours of service and related concerns, and other pertinent
laws;

(m) Formulate and implement the curricula and institutional programs of the Academy: Provided, That
they comply with the minimum CHED requirements and guidelines;

(n) Formulate and promulgate the rules of discipline for the students of the Academy to ensure orderly
and effective governance thereof;

(0) Set policies on admission and graduation of students: Provided, That they conform with CHED
guidelines;

(p) Award honorary degrees upon persons in recognition of outstanding contribution in the field of
education, public service, arts, science and technology, or any field of specialization within the
academic competence of the Academy and to authorize the issuance of certificates of completion

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of non-baccalaureate programs and nontraditional or innovative courses: Provided, That these
conform with the applicable guidelines of the CHED and TESDA;

(q) Establish research and extension centers of the Academy where such will promote the development
of the latter;

(®) Establish professorial chairs in the Academy and provide fellowships for qualified faculty members
and scholarships to deserving students;

(8) Enter into any agreements or joint ventures with business and industry for the profitable
management of the economic and manpower assets of the Academy, the proceeds from which shall
be used for the upgrading of facilities and its development;

(#) Authorize an external management audit of the Academy, to be financed by the CHED, subject to
the rules and regulations of the Commission on Audit, and institute reforms, including academic
and structural changes, on the basis of the audit results and recommendations;

(u) Import economic, technical, and cultural books and publications;

(¥) Develop consortia, academe-industry linkages and other forms of networks with other institutions
and agencies, both public and private, local and foreign: Provided, That these comply with the
applicable guidelines of the CHED in furtherance of the purposes and objectives of the institution
as well as develop academic arrangements for institution capacity and capability building with
appropriate institutions and agencies, public and private;

(w) Appoint experts and specialists as consultants, or visiting or exchange professors, scholars,
researchers, as the case may be: Provided, That the appointment shall conform with CHED
guidelines;

(x) Set up the adoption of modern and innovative modes of transmitting knowledge, such as the use of
information technology, the dual training system, open distance learning, and community
laboratory for the promotion of greater access to education;

(y) Outsource, where most advantageous to the institution, the management of non-academic services
such as health, food, building or grounds or property maintenance and similar objectives;

(2) Delegate any of its powers and duties to the President or the other officials of the Academy, as it
may deem appropriate, so as to expedite the administration of the affairs of the Academy;

(aa) Extend the term of the President of the Academy beyond the age of retirement, when deemed
meritorious due to outstanding performance, but not beyond the age of seventy (70) years old; and

(bb) Promulgate rules and regulations, as may be necessary, to carry out the purposes and functions of
the Academy.

SEC. 8, President of the Academy. ~ The Academy shall be headed by a President, who shall render
full- time service and shall be appointed by the Board upon the recommendation of a duly constituted
Search Committee, The President shall also be the chief executive officer of the Academy.

‘The President shall have a term of four (4) years and shall be eligible for reappointment to another term.
Within six (6) months before the expiration of the term of office of the incumbent President of the
‘Academy, the Board shall constitute the Search Committee for the Presidency.

‘The President shall receive such compensation and renumeration in accordance with Republic Act No.
11466 or the “Salary Standardization Law of 2019”, and by such other laws amendatory thereto, which

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may hereinafter be enacted, and shall be comparable to that being received by the Presidents of similar
‘educational institutions.

The President shall exercise the following powers and duties:

(a) Submit, for the consideration of the Board and the Executive Committee, the policies and measures
which are necessary to carry out the purposes of the Academy;

(b) Recommend, coordinate, and admi

ster the programs and projects of the Academy;

(©) Direct and supervise the operations and internal administration of the Academy, and delegate
administrative responsibilities in accordance with the rules and regulations of the Academy;

(@) Submit an annual report to the Board setting forth the accomplishments of the Academy during the
‘year, its financial operations and status, and a program and budget for the ensuing year; and

(©) Exercise other powers and discharge other functions, as may be vested by the Board and the
Executive Committee,

The Board shall designate an Officer-In-Charge (OIC) of the Academy in case of vacancy in the Office
of the President by reason of death, compulsory retirement, resignation, removal for cause or incapacity
of the President to perform the functions of the office, pending the appointment of a new President:
Provided, That the OIC shall serve only during the unexpired portion of the term.

‘The powers and duties of the President of the Academy, in addition to those provided in this Act, shall
be those usually pertaining to the Office of the President of similar educational institutions, and those
delegated by the Board.

SEC. 9, Executive Committee. ~ There shall be an Executive Committee consisting of the President
of the Academy and four (4) other members to be elected by the Board from its members, Each
Members of the Executive Committee, other than the President of the Academy, shall hold office for a
term of two (2) years, and shall be eligible for re-election, unless at the time of election, a shorter term
is specified. The Board shall elect the Chairperson of the Executive Committee from the membership
of the Board.

SEC. 10, Functions of the Executive Committee. ~ The Executive Committee shall administer the
affairs of the Academy in accordance with such functions, powers, and responsibilities as may be
delegated by the Board.

SEC. 11. Government Support and Coordination. — The CHED Chairperson is hereby authorized to
call upon any department, bureau, agency or instrumentality of the government for such assistance as
may be necessary for the effective implementation of this Act.

SEC. 12. Tax Exemption. — The importation of economic, technical, and cultural books and
publications, which are for the economic, technical, vocational, scientific, philosophical, historical or
cultural purposes of the Academy, upon certification by the CHED, shall be exempt from customs duties
in accordance with the provisions of Republic Act No. 10863, otherwise known as the “Customs
Modernization and Tariff Act.”

Al grants, bequests, endowments, donations and contributions made to the Academy, to be used
actually, directly, and exclusively by it, shall be exempt from donor's tax and the same shall be
‘considered as allowable deduction from the gross income in the computation of the income tax of the
donor, in accordance with the provisions of the National Internal Revenue Code of 1997, as amended.


SEC. 13. Appropriations. - The amount necessary to carry out the provisions of this Act shall be
included in the annual General Appropriations Act.

SEC. 14, Implementing Rules and Regulations. ~ Within ninety (90) days from the effectivity of this
‘Act, the CHED shall, in coordination with the TESDA and the DTI, formulate the necessary rules and
regulations to fully implement the provisions of this Act.

SEC. 15. Separability Clause. — If, for any reason, any part or provision of this Act is declared invalid
‘or unconstitutional, the remaining parts or provisions not affected shall remain in full force and effect.

SEC. 16. Repealing Clause. — All laws, presidential decrees, executive orders, proclamations or
administrative regulations that are inconsistent with the provisions of this Act are repealed, amended,
‘or modified accordingly.

SEC. 17. Effectivity. - This Act shall take effect fifteen (15) days after its publication in the Official
Gazette or in a newspaper of general circulation.

Approved,