Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City, Philippines

SIXTEENTH CONGRESS
First Regular Session

HOUSE BILL NO. 1510

EXPLANATORY NOTE

The Commission on Higher Education (CHED) is the governing body covering
both public and private higher education institutions as well as degree-granting programs
in all tertiary educational institutions in the Philippines.

CHED was established in May 18, 1994 through Republic Act No. 7722 or the
Higher Education Act of 1994. Pursuant to the said law, the Commission is mandated to
undertake steps to promote quality education, and ensure accessibility of education to
all, as well as, protect academic freedom for intellectual growth and advancement of
learning and research, among others.

Specifically and more importantly, the Commission is responsible for formulating
and implementing policies, plans and programs for the development and efficient
operation of the higher educational system in the country.

More than 15 years since its creation, several amendments to the CHED charter
are now being proposed to address the limitations and challenges the Commission had
to endure under its present charter that substantially affected its performance as a
government entity tasked to ensure quality tertiary education. Apparently, no less than
CHED admits to the insufficiency of the existing law under which the CHED derives its
functions and powers.

This bill seeks to, among others, 1) Set the standards for and regulate review
centers and similar entities; 2) Provide additional qualifications and duties for the
Chairperson and Commissioners of CHED, and other requirements with respect to the
composition of the Commission Proper; 3) Grant CHED the powers not merely to
formulate and recommend development plans and policies on higher education and
research but to implement such policies as well, 4) Allow CHED to recommend to
Congress the creation, dissolution and merger of state and/or local colleges and other
publicly-funded tertiary institutions; 5) Bestow CHED the authority to set minimum
qualifications for faculty who can teach in HEIs, monitor and evaluate the performance of
programs of HEIs both private and public including locally-funded colleges and
Universities, and approve the establishment of and changes in the institutional status of
private universities and colleges; and 6) Confer CHED the authority to regulate
increases in tuition and other fees, to conduct mediation, conciliation, exercise appellate
jurisdiction between HEIs and students, teachers and staff involving academic issues,
and to exercise quasi-judicial powers in the pursuit of the mandate of the Commission.

Hopefully, with the proposed changes under the measure, CHED can fulfill its
mandate more effectively, especially so that there are already 2,060 higher education
institutions in the Philippines today.

In light of the foregoing, approval of this billjs eamestly sous

lewohe, 1 + \a—
MARCELINO “MARCY” R. TEODORO
Representative
1" District, City of Marikina


Republic of the Philippines
HOUSE OF REPRESENTATIVES
‘Quezon City, Philippines

SIXTEENTH CONGRESS
First Regular Session

House BiLiNo.__1510

INTRODUCED BY: HON. MARCELINO “MARCY” R. TEODORO

AN ACT
AMENDING REPUBLIC ACT NO. 7722, OTHERWISE KNOWN AS THE “HIGHER
EDUCATION ACT OF 1994,” STRENGTHENING THE COMMISSION ON HIGHER
EDUCATION (CHED), AND FOR OTHER PURPOSES

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

SECTION 1. A new section is hereby inserted as Section 3 of Republic Act No. 7722:

Sec. 3. DEFINITION OF TERMS. — UNLESS THE CONTEXT OTHERWISE
INDICATES, THE FOLLOWING TERMS SHALL MEAN:

A. HIGHER EDUCATION SUBSECTOR ~ SHALL REFER TO BOTH PUBLIC
AND PRIVATE INSTITUTIONS THAT OFFER TERTIARY EDUCATION
DEGREE PROGRAMS.

B. HIGHER EDUCATION INSTITUTIONS (HEIs) — REFER TO PUBLIC OR
PRIVATE INSTITUTIONS PRIMARILY OFFERING DEGREE-GRANTING
PROGRAMS, INCLUDING POST-SECONDARY DEGREE-GRANTING
VOCATIONAL AND TECHNICAL EDUCATIONAL INSTITUTIONS DULY
RECOGNIZED BY CHED.

C. LOCAL COLLEGES AND UNIVERSITIES (LCUs) — REFER TO PUBLIC
HEls ESTABLISHED AND FINANCIALLY SUPPORTED BY THE LOCAL
GOVERNMENT THROUGH AN ENABLING ORDINANCE. LCUs MAY BE
REFERRED TO AS “DALUBHASAAN” FOR COLLEGE AND
“PAMANTASAN” FOR UNIVERSITY,

D. STATE UNIVERSITIES AND COLLEGES (SUCs) - REFER TO PUBLIC
HEls WITH INDEPENDENT AND SEPARATE GOVERNING BOARDS
CREATED AND ESTABLISHED BY LAW.

—, GOVERNING BOARDS (GBs) - REFER TO THE HIGHEST POLICY-
MAKING BODY OF CHARTERED SUCs AS DEFINED IN R.A. 8292. FOR
CHARTERED STATE UNIVERSITIES, THEY ARE CALLED BOARD OF
REGENTS (BOR). FOR CHARTERED STATE COLLEGES THEY ARE
CALLED BOARD OF TRUSTEES (BOT).

SECTION 2. Section 3 of Republic Act No. 7722 is hereby amended to read as follows:

Section [3] 4. 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 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), IT SHALL ALSO SET THE STANDARDS FOR AND
REGULATE REVIEW CENTERS AND SIMILAR ENTITIES.

SECTION 3. Section 4 of the same Act is hereby replaced with the following Section 5:

Sec. [4] 5. COMPOSITION OF THE COMMISSION PROPER. - THE
COMMISSION PROPER SHALL BE COMPOSED OF A CHAIRPERSON AND
FOUR (4) COMMISSIONERS WHO MUST HAVE DISTINGUISHED
THEMSELVES IN THEIR CHOSEN CAREER OR PROFESSION, AND ARE
KNOWN FOR THEIR HIGH DEFGREE OF HONESTY, INTEGRITY AND
PROFESSIONALISM.

AT LEAST THREE (3) OF THE MEMBERS OF THE COMMISSION, INCLUDING
THE CHAIRPERSON, SHALL COME FROM THE ACADEME. THEY SHALL BE
HOLDERS OF EARNED DOCTORAL DEGREES AND HAVE BEEN ACTIVELY
ENGAGED IN HIGHER EDUCATION FOR AT LEAST TEN (10) YEARS. THE
REST SHALL COME FROM BUSINESS, INDUSTRY, AND EXPERTS OR
SPECIALISTS FROM OTHER AREAS OF DISCIPLINE WHO CAN
CONTRIBUTE TO THE EFFICIENT AND EFFECTIVE GOVERNANCE OF
HIGHER EDUCATION. NO PERSON SHALL BE APPOINTED AS
CHAIRPERSON OR COMMISSIONER IF HE/SHE HAS BEEN A CANDIDATE
FOR ELECTIVE POSITIONS IN THE ELECTIONS IMMEDIATELY PRECEDING
THEIR APPOINTMENT.

THE COMMISSION SHALL REGULARLY MEET ONCE A MONTH, HOWEVER,
THE MATTER OF IMPLEMENTATION AND EXECUTION SHALL BE AT THE
JURISDICTION OF THE EXECUTIVE OFFICE OF THE COMMISSION.

SECTION 4. Section 5 of the same Act is hereby amended to read as Section 6:

Sec. [5] 6. Term of Office. — The President shall appoint the full-time [chairman]
CHAIRPERSON and the commissioners for a term of four (4) years, without
prejudice to one reappointment. The terms of the initial appointees shall be on a
staggered basis: the full-time [chairman] CHAIRPERSON shall hold office for a
term of four (4) years, the next two (2) commissioners for three (3) years, and the
last two (2) commissioners for two (2) years

The commissioners shall hold office until their successors shall have been
appointed and qualified, Should a member of the Commission fail to complete
his/HER term, his/HER successors shall be appointed by the President of the
Philippines but only for the unexpired portion of the term.

SECTION 5. Section 6 of the same Act is hereby amended to read as Section 7:

Sec. [6] 7. Rank and Emoluments. — The [chairman] CHAIRPERSON and the
commissioners shall have the rank of a Department Secretary and
Undersecretary, respectively. They shall receive the compensation and other
emoluments corresponding to those of a Department Secretary and
Undersecretary, respectively, and shall be subject to the same disqualifications.

SECTION 6. A new Section is hereby inserted as Section 8

Sec. 8. DUTIES AND RESPONSIBILITIES OF THE CHAIRPERSON AND THE
COMMISSIONERS. - SUBJECT TO PERTINENT LAWS, THE CHAIRPERSON
SHALL ACT AS THE CHIEF EXECUTIVE OFFICER OF THE COMMISSION.
THE CHAIRPERSON, ACTING TOGETHER WITH THE COMMISSIONERS AS
A COLLEGIAL BODY, SHALL PERFORM THE POLICY-MAKING, RULE-
MAKING, REGULATORY, QUASI-JUDICIAL AND OTHER FUNCTIONS
MANDATED BY LAW TO THE COMMISSION. PROVIDED, HOWEVER, THAT
IN NO CASE SHALL THE COMMISSIONERS PERFORM LINE OR EXECUTIVE
FUNCTIONS. IN CASE OF THE ABSENCE OF THE CHAIRPERSON DUE TO


ILLNESS, INCAPACITY OR OTHER SERIOUS CAUSE, THE MOST SENIOR
COMMISSIONER SHALL PERFORM THE FUNCTIONS OF THE
CHAIRPERSON AS OFFICER-IN-CHARGE.

SECTION 7. Section 7 of the same Act is hereby amended to read as Section 9.
Sec, [7] 9. Board of Advisers. - There shall be constituted a Board of Advisers
which shall meet with the Commission at least once a year to assist it in aligning
its policies and plans with the cultural, political and socioeconomic development
needs of the nation and with the demands of world-class scholarship.
‘The Board of Advisers shall be composed of the following

a) the Secretary of THE DEPARTMENT OF Education, [Culture and Sports,]
as [chairman] CHAIRPERSON;

b) the Director-General of the National Economic and Development
Authority, as co-chairman;

c) the Secretary of THE DEPARTMENT OF Science and Technology;
d) the Secretary of THE DEPARTMENT OF Trade and Industry;
) the Secretary of THE DEPARTMENT OF Labor and Employment;

f) THE DIRECTOR-GENERAL OF THE TECHNICAL EDUCATION AND
SKILLS DEVELOPMENT AUTHORITY

g) the President of the Federation of Accrediting Associations of the
Philippines (FAAP); [and]

h)_ the President of the Fund for Assistance to Private Education (FAPE);

i) THE PRESIDENT OF THE PHILIPPINE ASSOCIATION OF STATE
UNIVERSITIES AND COLLEGES [PASUC];

j) THE PRESIDENT OF THE PHILIPPINE ASSOCIATION OF LOCAL
COLLEGES AND UNIVERSITIES (ALCU); AND

k) THE PRESIDENT OF THE COORDINATING COUNCIL OF PRIVATE
EDUCATIONAL ASSOCIATIONS OF THE PHILIPPINES (COCOPEA).

[Two (2) additional members of the Board of Advisers may be appointed by the
President upon recommendation of the Commission.]

SECTION 8. Section 8 of the same Act is hereby amended to read as Section 10:

Sec. [8] 10. Powers and Functions of the Commission, ~ IN ACCORDANCE
WITH THE CONSTITUTIONAL MANDATE ON EDUCATION, THE LETTER AND
INTENT OF THIS ACT AND OTHER PERTINENT LAWS, The Commission shall
PERFORM [have] the following powers and functions:

(a) formulate and [recommend] IMPLEMENT development plans, policies,
priorities, and programs on higher education and research;

(b) formulate and [recommend] IMPLEMENT development plans, policies,
priorities and programs on research;

(c) recommend to [the executive and legislative branches,] CONGRESS
priorities and grants on higher education and research AS WELL AS THE
CREATION, DISSOLUTION AND MERGER OF STATE AND/OR LOCAL


COLLEGES AND OTHER  PUBLICY-FUNDED TERTIARY
INSTITUTIONS;

(4) IT SHALL HAVE THE AUTHORITY TO set minimum standards for
programs and institutions of higher learning AS WELL AS THE MINIMUM
QUALIFICATIONS FOR FACULTY WHO TEACH IN HEIs, recommended
by panels of experts in the field and subject to public hearing, and enforce
the same;

(e) 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
or withdrawal of subsidy, recommendation on the downgrading or
withdrawal of accreditation, program termination or school closure:
PROVIDED THAT THE COMMISSION SHALL HAVE THE EXCLUSIVE
AUTHORITY TO CUNDUCT VISITATIONS FOR HEls FOR THE
ISSUANCE OF GOVERNMENT PERMIT/RECOGNITION TO OPERATE
PROGRAMS, AS WELL AS FOR MONITORING AND EVALUATION
PURPOSES;

(f) APPROVE THE ESTABLISHMENT OF, AND CHANGES IN THE
INSTITUTIONAL STATUS OF PRIVATE UNIVERSITIES AND
COLLEGES;

[()@) EXCLUSIVE AUTHORITY TO SET CRITERIA IN THE
IDENTIFICATION [identify], support and [develop] DEVELOPMENT
OF potential centers of excellence in program areas needed for the
development of world-class scholarship, nation building and national
development IN HEIs;

[(@)(h) recommend to the Department of Budget and Management the
budgets of SUCs [public institutions of higher leaming as well as]
BASED ON A FUNDING FORMULA WHICH SHALL BE
FORMULATED BY THE COMMISSION IN CONSULTATION WITH
ITS BOARD OF ADVISERS, AND RECOMMEND general guidelines
for the use of their income;

[(h)|() rationalize programs and institutions of higher leaming 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 HEIs IN the number of institutions of higher
learning in the province or region where creation, conversion or
elevation is sought to be made;

[@1G)__ 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;

{@\(k) direct or redirect purposive research by institutions of higher leaming
to meet the needs of agro-industrialization and development,

[)]()_ devise and implement resource development schemes;

{()\(m) administer the Higher Education Development Fund, as described in
Section 10 hereunder, which will promote the purposes of higher
education;

[(m)|(n) review the charters of institutions of higher learning and state
universities and colleges including the chairmanship and membership


of their goveming bodies and recommend appropriate measures as
basis for necessary action;

[(n)(o) REGULATE THE INCREASE IN TUITION AND OTHER FEES IN
PUBLIC AND PRIVATE HIGHER EDUCATIONAL INSTITUTIONS
AND PENALIZE VIOLATIONS;

(p) CONDUCT MEDIATION, CONCILIATION, SETTLEMENT MEETING OR
CONFERENCES, EXERCISE APPELATE JURISDICTION BETWEEN
HIGHER EDUCATION INSTITUTIONS AND STUDENTS, TEACHERS
AND STAFF INVOLVING ACADEMIC ISSUES ONLY;

(q) EXERCISE QUASI-JUDICIAL POWERS IN THE PURSUIT OF THE
MANDATE OF THE COMMISSION;

(®) promulgate such rules and regulations and exercise such other powers
and functions as may be necessary to carry out effectively the purpose
and objectives of this Act; and

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

SECTION 9. QUASI-JUDICIAL POWERS OF THE COMMISSION. — THE
COMMISSION SHALL EXERCISE EXCLUSIVE ORIGINAL JURISDICTION OVER THE
FOLLOWING:

A. CLOSING DOWN OF NON-PERFORMING PROGRAMS AND/OR
INSTITUTIONS UNDER ITS JURISDICTION;

B. CLOSING DOWN OF REVIEW CENTERS;

C. COMPLAINTS AND CASES AGAINST CHED PERSONNEL RELATED TO
THE PERFORMANCE AND DISCHARGE OF THEIR OFFICIAL DUTIES;

D. COMPLAINTS AND CASES RELATED TO THE IMPLEMENTATION OF R.A.
8292 AND THE RESPECTIVE CHARTERS OF THE SUCs; AND

—. OTHER CASES AND COMPLAINTS RELATED TO THE POWERS AND
FUNCTIONS OF THE COMMISSION.

EXCEPT FOR SUBPARAGRAPH D., COMPLAINTS AND CASES SHALL FIRST
BE FILED WITH THE REGIONAL OFFICE WHICH HAS JURISDICTION OVER
THE AREA. THE REGIONAL DIRECTOR SHALL RESOLVE THE CASE
WITHIN A REASONABLE PERIOD OF TIME FROM THE SUBMISSION OF THE.
CASE FOR RESOLUTION, BUT IN NO CASE SHALL THE ENTIRE
RESOLUTION OF THE CASE EXCEED NINETY (90) DAYS FROM FILING.

APPEAL FROM THE DECISION OF THE REGIONAL DIRECTOR SHALL BE
FILED WITH THE EXECUTIVE DIRECTOR OF THE COMMISSION WITHIN
TEN (10) DAYS FROM THE RECEIPT OF THE DECISION. THE EXECUTIVE
DIRECTOR SHALL RULE ON THE APPEAL WITHIN NINETY (90) DAYS FROM.
THE FILING OF THE APPEAL.

APPEAL FROM THE DECISION OF THE EXECUTIVE DIRECTOR SHALL BE
FILED WITH THE COMMISSION EN BANC WITHIN TEN (10) DAYS FROM
THE RECEIPT OF THE DECISION. THE COMMISSION EN BANC SHALL.
RESOLVE THE APPEAL WITHIN NINETY (80) DAYS FROM THE FILING OF
THE APPEAL.


APPEAL FROM THE DECISION OF THE COMMISSION EN BANC SHALL BE
TO THE COURT OF APPEALS, SUBJECT TO THE PERIOD ON APPEALS
FROM ADMINISTRATIVE QUASI-JUDICIAL BODIES TO THE COURT OF
APPEALS IN THE RULES OF COURT. THE COMMISSION SHALL ENJOY THE
POWER TO COORDINATE WITH THE REGIONAL TRIAL COURT (RTC). THE
RTC SHALL BE PROHIBITED FROM ISSUING INJUNCTION AGAINST
DECISIONS OF THE COMMISSION IN THE EXERCISE OF ITS QUASI-
JUDICIAL FUNCTIONS.

SECTION 10. Sec. 9 of the same Act is hereby amended to read as Section 11

Sec. [9] 11. The Secretariat. - The Commission shall organize a secretariat
which shall be headed by an executive officer, WITH THE TITLE OF
EXECUTIVE DIRECTOR AND ASSISTED BY A DEPUTY EXECUTIVE
DIRECTOR, 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. It shall also prepare and approve its budget.

The Commission shall appoint the members of the staff upon the
recommendation of the executive officer.

SECTION 11. A new Section is hereby inserted as Section 12:

Sec. [10] 12. QUALIFICATIONS AND FUNCTIONS OF THE EXECUTIVE
DIRECTOR. - THE EXECUTIVE DIRECTOR SHALL BE A CAREER
EXECUTIVE OFFICER WITH AT LEAST FIVE (5) YEARS.
ADMINISTRATIVE/TECHNICAL EXPERIENCE IN THE AREAS OF POLICIES
AND STANDARDS DEVELOPMENT, MANAGEMENT, PUBLIC OR PRIVATE.
ADMINISTRATION AND POLICY AS WELL AS HUMAN RESOURCE
DEVELOPMENT, AMONG OTHERS.

SECTION 12. A new Section is hereby inserted as Section 13.

Sec, 13, REGIONAL OPERATIONS. — THE COMMISSION SHALL ESTABLISH
REGIONAL OFFICES IN ACCORDANCE WITH THE ADMINISTRATIVE CODE
OF 1987 AND OTHER PERTINENT LAWS AND ISSUANCE RELATIVE TO THE
ESTABLISHMENT AND OPERATION OF REGIONAL OFFICES. A QUALIFIED
REGIONAL DIRECTOR AND AN ASSISTANT REGIONAL DIRECTOR SHALL
HEAD THE REGIONAL OFFICE. THEY SHALL SUPERVISE THE PROGRAMS,
OF THE REGIONAL OFFICE OF THE COMMISSION AND RENDER PERIODIC
REPORTS ON ITS OPERATIONS. IN CASES WHERE FIELD OFFICES OR
SUB-REGIONAL OFFICES MAY BE NEEDED OR APPROPRIATE, THE
COMMISSION MAY ESTABLISH SUCH OFFICES PURSUANT TO EXISTING
GUIDELINES AND PRACTICE.

THE REGIONAL DIRECTOR MAY ALSO SIT AS A RESOURCE PERSON IN
ALL BOARD MEETING OF THE SUCs IN THE REGION, TO KEEP HIM/HER
ATTUNED AND UPDATED ON THE OFFICIALS ACTIVITIES AND NEEDS OF
THE CONCERNED SUCs.

SECTION 13. A new Section is hereby inserted as Section 14:

Sec. 14. THE OFFICE OF LADDERIZED EDUCATION PROGRAM AND
ALTERNATIVE LEARNING SYSTEM AND THE OFFICE FOR REVIEW
CENTERS ARE HEREBY CREATED. THE COMMISSION SHALL ESTABLISH
THE OFFICES OF THE LADDERIZED EDUCATION PROGRAM AND
ALTERNATIVE LEARNING SYSTEM AND THE OFFICE FOR REVIEW
CENTERS AND PROVIDE PLANTILLA POSITIONS.


(1) THE OFFICE OF THE LADDERIZED EDUCATION PROGRAM AND
ALTERNATIVE LEARNING SYSTEM IN COORDINATION WITH THE
CONCERNED SECTORS AND STAKEHOLDERS SHALL BE RESPONSIBLE
FOR IMPLEMENTING A UNIFIED QUALIFICATIONS FRAMEWORK THAT
ESTABLISHES EQUIVALENCY PATHWAYS AND ACCESS RAMPS FOR A
LADDERIZED SYSTEM ALLOWING FOR EASIER TRANSITIONS AND
PROGRESSIONS BETWEEN TECHNICAL-VOCATIONAL EDUCATION AND
TRAINING (TVET) AND HIGHER EDUCATION (HE). THIS OFFICE SHALL BE
THE COMMISSION'S ARM IN THE FORMULATION OF POLICIES AND
ACCREDITATION OF ALTERNATIVE LEARNING PROGRAMS. TO ENSURE
THAT ALTERNATIVE LEARNING PROGRAMS WITHIN THE HIGHER
EDUCATION WILL BE COVERED, THREE (3) DIVISIONS WILL BE CREATED
TO EXTEND THE NECESSARY SERVICES, ASSISTANCE AND TECHNICAL
SUPPORT IN ATTAINING THE GOAL OF ALTERNATIVE LEARNING
SCHEMES, TO WIT:

A) THE EXPANDED TERTIARY EDUCATION EQUIVALENCY AND
ACCREDITATION PROGRAM (ETEEAP) DIVISION — THE OFFICE
SHALL CONDUCT ASSESSMENT SCHEMES, WHICH RECOGNIZE
KNOWLEDGE, SKILLS AND LEARNING OBTAINED BY INDIVIDUAL
FOR NON-FORMAL AND INFORMAL EDUCATION EXPERIENCES.

B) THE LIFELONG LEARNING DIVISION —- ENCOMPASSES ALL
LEARNING ACTIVITIES UNDERTAKEN THROUGHOUT LIFE FOR THE
DEVELOPMENT OF COMPETENCIES AND QUALIFICATIONS OF
PEOPLE ACROSS THE ENTIRE LIFE SPAN, PROVIDE LEARNING
AND TRAINING NEEDS FROM CAREER DEVELOPMENT TO
MASTERY UNTIL BEYOND RETIREMENT; AND DEVELOP POLICIES,
STANDARDS AND GUIDELINES FOR DEVELOPMENT TO AID
CAPACITY-BUILDING PROGRAMS.

(2) OFFICE FOR REVIEW CENTERS - THE OFFICE FOR REVIEW CENTERS
SHALL BE RESPONSIBLE FOR CREATING A FRAMEWORK FOR THE
REGULATION OF REVIEW CENTERS AND SIMILAR ENTITIES FOR THE
CONDUCT OF REVIEW CLASSES FOR PROGRAMS OR COURSES
REQUIRING LOCAL LICENSURE EXAMINATIONS GIVEN BY THE
PROFESSIONAL REGULATIONS COMMISSION, INCLUDING BUT NOT
LIMITED TO THE DEVELOPMENT AND INSTITUTIONALIZATION OF
POLICIES, STANDARDS AND GUIDELINES FOR THE ESTABLISHMENT,
OPERATION AND ACCREDITATION OF REVIEW CENTERS AND SIMILAR
ENTITIES; MAINTENANCE OF A MECHANISM TO MONITOR THE
ADEQUACY, TRANSPARENCY AND PROPRIETY OF THEIR OPERATIONS
AND REPORTING MECHANISM TO REVIEW PERFORMANCE AND ETHICAL
PRACTICE TO ENSURE THE EFFECTIVE IMPLEMENTATION OF THIS
PROVISION.

The newly-created offices shall be headed by a Director, subject to the National
Compensation and position classification plan. Likewise, the corresponding staff
complements shall be organized accordingly by the Commission.

SECTION 14. Section 12 of the Same Act is hereby amended to read as Section 15:

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, POLICIES, GUIDELINES 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 CHAIRPERSON.

SECTION 15. Section 10 of the same Act is hereby amended to read as Section 16:


Sec. [10] 16. ESTABLISHMENT OF A TRUST FUND [The Higher Education
Development Fund]. - A TRUST FUND REFERRED TO AS THE Higher
Education Development Fund, hereinafter referred to as the Fund, is hereby
established exclusively for the strengthening of higher education in the entire
country UNDER THE EXCLUSIVE CONTROL AND MANAGEMENT OF THE
COMMISSION.

FUND SOURCING AND UTILIZATION. —
(a) The Govemment's contribution to the Fund shall be the following:
(1) the amount of five hundred million pesos (P500,000,000) as seed —_capital;

(2) the amount of fifty million pesos (P50,000,000) for the initial operation of the
Commission;

(3) the equivalent of forty percent (40%) annual share on the total gross
collections of the travel tax;

(4) the equivalent of thirty percent (30%) share of the collections from the
Professional Registration Fee; and

(5) the equivalent of one percent (1%) of the gross sales of the lotto
operation of the Philippine Charity Sweepstakes Office (PCSO).

(b) Every year hereafter, government financial institutions identified and
requested by the Commission may contribute to the Fund an amount equivalent
to not less than three percent (3%) but not more than five percent (5%) of their
unimpaired surplus realized during the immediately preceding year.

(©) The Fund shall have a private portion to be raised from donations, gifts, and
other conveyances including materials, equipment, properties and services by
gratuitous tite,

ALL CONTRIBUTIONS IDENTIFIED AS ACCURING TO THE FUND SHALL
DIRECTLY AND AUTOMATICALLY BE REMITTED, AND SHALL THEREAFTER
BE REGULARLY AND AUTOMATICALLY RELEASED QUARTERLY TO THE
COMMISSION.

FURTHERMORE, THE FUND SHALL ALSO BE USED TO ASSIST
INSTITUTIONS BOTH PUBLIC AND PRIVATE IN ACCORDANCE WITH
ASSISTANCE SCHEMES AND/OR CRITERIA AS PRESCRIBED BY THE
COMMISSION, TAKING INTO ACCOUNT URGENCY OF NEEDS AND EQUITY
CONSIDERATIONS,

SECTION 16. Section 11 of the same Act is hereby amended to read as Section 14:

Sec. [11] 14. Management and Administration of the Higher Education
Development Fund. — The Fund shall be administered by the Commission. For
sound and judicious management of the Fund, the Commission shall appoint a
reputable government financial institution as portfolio manager of the Fund,
subject to the following conditions:

(a) No part of the seed capital of the Fund, including eamings thereof,
shall be used to underwrite overhead expenses for administration;

(b) Unless otherwise stipulated by the private donor, only eamings of
private contributions shall be used for administrative expenses;

(©) The Commission shall appoint and organize a separate staff,
independent administratively and budgetarily separate from the
Commission Secretariat; and


(d) The Fund shall be utilized equitably according to regions, HEIs AND
programs. WITH EIGHTY (80%) OF ITS FUNDING ASSISTANCE
ALLOCATED TO SUCs AND OTHER PUBLICLY-FUNDED TERTIARY
INSTITUTIONS, AND TWENTY PERCENT (20%) TO PRIVATE HEls. IN
NO CASE SHALL THE FUND BE UTILIZED FOR PURPOSES
BENEFITING INDIVIDUALS OTHER THAN THOSE EARMARKED FOR
DEVELOPMENTAL PURPOSES.

SECTION 17. Section 13 of the same Act is hereby amended to read as Section 16.

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 THE PROGRAM OFFERINGS OF SUCs SHALL
FOLLOW AND BE APPROVED IN ACCORDANCE WITH THE MINIMUM
STANDARDS AND REQUIREMENTS PRESCRIBED BY THE COMMISSION.

SECTION 18. Section 14 of the same Act is hereby amended to read as Section 17:

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 HIGHER
EDUCATION DEVELOPMENT FUND AS INCENTIVES FOR ACCREDITATION,

SECTION 19. Section 15 is hereby renumbered as Section 18.
SECTION 20. Section 16 is hereby renumbered as Section 19.
SECTION 21. Section 17 of the same Act is hereby replaced by the following Section 20.

Sec. [17] 20. Appropriation. - THE AMOUNT NECESSARY FOR THE
OPERATION OF THE COMMISSION SHALL BE PROVIDED FOR IN THE
ANNUAL GENERAL APPROPRIATIONS ACT.

SECTION 22. A new section is hereby inserted as Section 21

Sec. 21. IMPLEMENTATION. — THE CHAIRPERSON OF THE COMMISSION IS.
HEREBY DIRECTED TO TAKE SUCH STEPS AS NECESSARY FOR THE
IMMEDIATE IMPLEMENTATION OF THIS ACT, IN CONSULTATION WITH
THE MEMBERS OF THE BOARD OF ADVISERS, THE SENATE COMMITTEE
ON EDUCATION, ARTS AND CULTURE AND THE HOUSE OF
REPRESENTATIVES COMMITTEE ON HIGHER AND TECHNICAL
EDUCATION.

SECTION 23. Section 18 of the same Act is hereby replaced with the following Section
22:

Sec. [18] 22. Transitory Provisions. - UPON EFFECTIVITY OF THIS ACT,
SUCH PERSONNEL, PROPERTIES, ASSETS AND LIABILITIES, FUNCTIONS.
AND RESPONSIBILITIES OF THE PRESENT COMMISSION ON HIGHER
EDUCATION ARE HEREBY TRANSFERRED TO THE REORGANIZED
COMMISSION.

SECTION 24. A new section is hereby inserted as Section 23:


Sec. [19] 23. IMPLEMENTING RULES AND REGULATIONS (IRR). ~ THE
COMMISSION SHALL ORGANIZE A COMMITTEE TO BE CHAIRED BY THE
COMMISSION CHAIRPERSON AND COMPOSED OF THE FOLLOWING
AGENCIES TO DRAFT THE IMPLEMENTING RULES AND REGULATIONS OF
THIS ACT: NEDA, COCOPEA, PASUC, AND ALCU. THE SENATE
COMMITTEE ON EDUCATION, ARTS AND CULTURE AND THE HOUSE
COMMITTEE ON HIGHER TECHNICAL EDUCATION SHALL SIT AS
OBSERVERS IN THE DRAFTING OF THE IRR.

THE CHED EXECUTIVE DIRECTOR AND DEPUTY EXECUTIVE DIRECTOR
SHALL CO-CHAIR THE SUPPORT SECRETARIAT WHICH SHALL BE
RENDERED BY THE VARIOUS OFFICES UNDER THE COMMISSION. THE
SUPPORT SECRETARIAT SHALL PROVIDE THE NECESSARY TECHNICAL
AND ADMINISTRATIVE SUPPORT TO THE COMMITTEE.

THE COMMITTEE SHALL FORMULATE THE RULES NOT LATER THAN
THREE (3) MONTHS AFTER THE CREATION OF THE COMMITTEE.

SECTION. 25. Repealing Clause. — All laws INCLUDING R.A. 8981 OTHERWISE
KNOWN AS THE PRC MODERNIZATION LAW, 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

SECTION. 26. Separability Clause, — If any part or provision of this Act shall be held
unconstitutional or invalid, other provisions hereof which are not affected thereby shall
continue to be in full force and effect.

SECTION 27. Effectivity. — This Act shall take effect fifteen (15) days from publication
in a newspaper of general circulation.

Approved,