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TWENTIETH CONGRESS Say ey
First Regular Session 2 inpek
HOUSE BILL NO. 25 07

Introduced by REP. RAMIL L. HERNANDEZ

AN ACT
ESTABLISHING THE PHILIPPINE ENTREPRENEURS’ ACADEMY AND
APPROPRIATING FUNDS THEREFOR

EXPLANATORY NOTE

Entrepreneurship is a vital engine for economic growth, job creation, and poverty
reduction, particularly in developing economies like the Philippines. It fosters
innovation, encourages self-reliance, and builds resilience within communities.
Recognizing this indispensable role, this proposed measure seeks to establish the
Philippine Entrepreneurs Academy, an institution dedicated to nurturing and
formalizing entrepreneurship education and training across all levels of learning.

Currently, various government agencies such as the Technical Education and Skills
Development Authority (TESDA), Department of Trade and Industry (DTI), and
Department of Science and Technology (DOST) offer non-formal entrepreneurship
programs and short-term technical-vocational courses. While these initiatives are
useful, there is a clear need for a centralized, cohesive, and formalized academic
institution that can integrate these efforts into a structured school system. This will
ensure a standardized, high-quality, and comprehensive approach to entrepreneurship
development.

This bill aims to address this need by:

«Establishing the Philippine Entrepreneurs Academy under the supervision of
the Commission on Higher Education (CHED).

+ Providing a comprehensive mandate for the Academy to offer undergraduate
and graduate degree programs, as well as short-term technical-vocational non-
degree courses and modular trainings. These programs are designed to enhance
core competencies in entrepreneurship and cater to technical-vocational, college,
and graduate students.

« Promoting the relevance of entrepreneurship to job generation and its
significant role in the sustainable economic growth of the country.


+ Formalizing and integrating existing non-formal entrepreneurship programs
from various government agencies (TESDA, DTI, DOST, etc.) under one school
system.

+ Enabling the Academy to administer education and consultancy, supervise
publication, and conduct scientific and policy-oriented research and
training on entrepreneurship.

+ Creating a robust Governing Board (Board of Trustees) comprised of key
government officials from CHED, TESDA, NEDA, DOST, DTI, and legislative
committees, as well as representatives from the Academy's faculty, students,
alumni, and the private sector. This diverse composition ensures broad expertise
and oversight.

+ Providing tax exemptions for the importation of economic, technical, and
cultural books, and for grants, bequests, endowments, donations, and
contributions made to the Academy, incentivizing support for its mission.

+ Appropriating the necessary funds for its establishment and continued
operation.

By establishing the Philippine Entrepreneurs Academy, the State takes a decisive step
towards cultivating a strong entrepreneurial culture, equipping Filipinos with the
necessary skills and knowledge to innovate, create sustainable businesses, and
significantly contribute to the nation's economic resilience and prosperity.

This bill is a re-filed version of House Bill No. 6473, which was approved by the House
of Representatives in December 2022 and was transmitted and received by the Senate
December 2022. Due to its non-enactment into law during the 19 Congress and acting



Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

‘TWENTIETH CONGRESS
First Regular Session

2507

HOUSE BILL NO.

Introduced by REP. RAMIL L. HERNANDEZ

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 Title. This Act shall be known as the "Philippine Entrepreneurs
Academy Act."

Section 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.

Section 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 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.


Section 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.

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

Section 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 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;

Director General of TESDA;

Director General of the National Economic and Development Authority
(NEDA);

e) Secretary of DOST;

f) Secretary of 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.

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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.

Section 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 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;

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 out the purposes and
functions of the Academy;

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d) Constitute the Board, as herein defined;

e

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;

f) 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 CHED;

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 Academy: 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,


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but deserving students in accordance with Republic Act No.10931 or the
“Universal Access to Quality Tertiary Education Act”;

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;

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

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Academy: Provided, That they comply with the minimum CHED requirements
and guidelines;

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

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

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 of
non-baccalaureate programs and nontraditional or innovative courses:
Provided, That these conform with the 5 applicable guidelines of the CHED
and TESDA;

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;

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;

v) 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 transmi
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;

z) 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.

Section 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 remuneration in accordance with
Republic Act No. 11466 or the “Salary Standardization Law of 2019”, and by such other


laws amendatory thereto, which 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 administer 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;

d) 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.

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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.

Section 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.

Section 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.

Section 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.


Section 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 13
Act”.

All 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.

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

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

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

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

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

Approved,