HOUSE OF REPRESENTATIVES

RECENVECD

pare, 22 AUG 2016
Republic of the Philippines —
HOUSE OF REPRESENTATIVES — T=_@.IF fin

Constitution Hills, Quezon Cify ey: “Ped

SEVENTEENTH CONGRES: REGISTRATION UNIT
First Regular Session BILLS AND INDEX SERVICE

HOUSE BILL No. _3165

Introduced by: Representative JOHNNY T. PIMENTEL

EXPLANATORY NOTE

With the advent of globalization—the opening of borders, reduction in cross-
border barriers, and the surge of information and communications
technology—the perspective and practice of higher education has changed.
The reach of education is no longer closed within the national borders for
educational systems have become integrated to the public policy of
international cooperation.

Higher education has become increasingly a crucial factor for generating
productive knowledge, innovation and technology to develop higher order
skills needed to compete in the knowledge economy. The frontiers of the
Universities have extended to becoming centers of economic success by its
ability to produce globally competitive graduates.

Academic exchanges have proliferated in recent years as part of universities’
efforts to connect with learners, teachers, scholars, as well as labor markets
worldwide as part of globalization. This effort at connectivity has been
intensified with innovations in transport and information technology that
have made physical distances shorter, and the cost of mobility, cheaper.

Furthermore, International students who pay private universities offer a
lucrative source of income!. The income generation indeed has given
incentives for the higher education service providers to propagate its
operations.

In the AY 2007 ~ 2008, the United States was able to derive USD 15.54B for
hosting international students greatly contributing to their financial economy

* Taylor, J. Ibid.


manifesting how the universities and colleges, as service providers of higher
education, have become crucial actors in the realm of the global economy?.

The Philippine government is committed to the bilateral, multilateral, regional
and international agreements in higher education venturing to put into
application the principles and ideals of the Internationalization of the
Philippine Higher Education.

Among others, Philippines recognizes the promise of the commoditization of
education and the enhanced trade of service as enshrined by the General
Agreement on Trade and Services (GATS), UNESCO 2005 Guidelines for
Quality Provision in Cross-Border Higher Education and the ASEAN
Framework Agreement on Services. Yet, to be able to get more share in the
market of higher education, restrictive policies should be further relaxed in
promoting trade in this service.

The operation of the foreign branch campuses to operate locally and opening
of the maritime trainings to foreigners, among others are pristine areas which
can be tapped in promoting Philippine competitiveness.

Recognition of the economic importance of higher education has encouraged
that adoption of policies encouraging greater access. It is important to note
that many of our neighbors have aggressively entered the field of
competition?. As new service providers of higher education, these countries
serve as a challenge to the hegemony of the traditional providers in Western
Europe*. The direction of the student mobility has put an interesting
inclination to the emergence of the new service providers.

Furthermore, these countries have opened their doors in allowing foreign
higher education institutions to put up branch campuses within their
territories to keep their graduates within the home countries». It is illustrated
by the franchising agreements between foreign providers and local providers.
Monash University from Australia has established branch campuses in South
Africa and Malaysia while the University of Nottingham of the United Kingdom
has launched international campuses in China and Malaysia®.

If the Philippines is unable to maximize this present global trend, it would
not only deter the inflow of income that could be derived from the mobility of
foreign students but also fail to grab an opportunity presented by the upswing
of globalization which is being utilized by its neighbors in the Asia-Pacific
Region.

Maringe, J & Foskett, N. 2010. Globalization and Internationalization in Higher Education.
* Singapore, China, Hong Kong and Malaysia are new higher education service providers.
* Woodfield, S. 2000. Key Trends and Emerging Issues in International Student Mobility (ISM).
* Foskett, N. & Maringe, F. 2000. The Internationalization of Higher Education: A Prospective View.
* Taylor, J. Ibid.



This Bill seeks to place the Philippines as a key player in this trend in higher
education.

The approval of this Bill is earnestly sought.

——
JOHNNY T. (ENTEL


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Constitution Hills, Quezon City

SEVENTEENTH CONGRESS
First Regular Session

HOUSE BILL NO. 3165

Introduced by: Representative JOHNNY T. PIMENTEL

AN ACT
PROMOTING THE INTERNATIONALIZATION OF PHILIPPINE HIGHER
EDUCATION AND THE INTRODUCTION OF FOREIGN BRANCH CAMPUS
AND OFFSHORE CAMPUS IN THE PHILIPPINES

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

SECTION 1. Title. - This Act shall be known as the “Internationalization of
Higher Education Act of 2016.”

SECTION 2. Declaration of Policy - It is the declared policy of the State
that higher education shall serve as a principal instrument for generating
productive knowledge, innovation and technology to develop higher order
skills needed to compete in the knowledge economy to redound in resource
generation.

SECTION 3. Definition of Terms. - For the purposes of this Act, the
following terms shall mean:

a. Academic cooperation agreement — cooperative agreement, either
bilateral or multilateral, that signifies a partnership between two or
more HEIs for the implementation of collaborative teaching and
learning activities, including distance learning; joint research;
transfer of technology; delivery of academic services; and the
exchange of art and culture or other collaborative academic
activities. An academic cooperation agreement can be bilateral or



multilateral, and it can be between governments, between HEIs, or
between corporations and HEIs;

b. Authority to operate — authority issued to private higher education
institution to operate any degree program without the approval of the
Commission;

c. Branch campus ~ campus established by a higher education institution
from one country in another country (host country) to offer its own
educational programmes and qualifications;

d. Foreign Higher Education Institutions - higher education
institutions incorporated and formed under laws other than the
Philippines;

e. Internationalization of higher education ~ process of integrating
international, intercultural, and global dimensions into the goals,
functions (teaching, learning, research, and service), and delivery of
higher education.

SECTION 4. Establishment of Foreign Educational Branch Campus. -
Establishment of foreign educational branch campuses is hereby allowed to
operate in the Philippines.

Foreign higher education institutions that seek to establish a branch campus
and acquire the right to operate a higher education institution in the
Philippines shall obtain a license to transact business in this country from
the Securities and Exchange Commission (SEC).

Provided, that the foreign higher education institution must first procure from
the Commission on Higher Education (CHED) an Authority to Operate.

Provided further, that an existing International Academic Cooperation
Agreements between the Philippines and the foreign, between the
Commission and the foreign ministry of higher education, and between local
institutions of higher education and the foreign higher education institution.

SECTION 5. Application for Authority to Operate. - The foreign higher
education institution that pursues to establish a Branch Campus in the
Philippines must obtain an Authority to Operate from the Commission. The
following documents must be submitted to the Commission to secure such
Authority:

1. date and term of the incorporation of the foreign HEI;

2. address of the foreign corporation operating a Higher Education in its
home country;


3. the location of the institution or college where the foreign HEI intends
to operate;

4, the names and addresses of the present officers, directors, governing
boards and faculties;

a

. the total amount of money actually invested and other information
relative to the financial condition of the institution or college;

6. a description of the buildings occupied or to be occupied by the
institution or college, with full details regarding the number and
dimensions of rooms, plumbing and sanitary arrangements, and
facilities for the proper lighting and ventilation;

7. a list of required teachers, and assistants, showing the academic
degrees, profession, experience and qualifications, and the subjects to
be taught by each;

8. complete information concerning the curriculum to be established, with
full details regarding the amount of instruction to be given on each
subject; full information relative to laboratories, equipment and
libraries; and all other details and data that the Commission may
require for the purpose of passing upon the application.

SECTION 6. Exemption to Ownership, Control and Administration, and
Student Population. The general rule on ownership of educational
institutions, control and administration, and student population shall not
apply to higher education institutions established for foreign temporary
residents.

SECTION 7. Supervision of the Commission on Higher Education. - The
Commission on Higher Education (CHED), in coordination with the Securities
and Exchange Commission, shall take supervision over the implementation
of this Act.

SECTION 8. Continuing Research. - The CHED shall conduct continuing
research and development on the internationalization of higher education for
the purpose of enhancing knowledge creation and revenue generation.

SECTION 9. Inclusion in the Appropriations Act. - The amount necessary
to implement the provisions of this Act shall be included in the General
Appropriations Act for the year following the approval of this Act.

SECTION 10. Repealing Clause. - Any law, presidential decree or issuance,
executive order, letter of instruction, administrative order, rule or regulation
contrary to or inconsistent with the provisions of the Act is hereby repealed,
modified or amended accordingly.


SECTION 11. Effectivity. - This Act shall take effect fifteen (15) days after
its publication in the Official Gazette or in at least two (2) national newspapers
of general circulation.

Approved,