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

NINETEENTH CONGRESS
First Regular Session

House Bill No.8.94 1

Introduced by Representative Midy N. Cua
Lone District, Quirino

AN ACT STRENGTHENING THE COMMISSION ON HIGHER EDUCATION AND
APPROPRIATING FUNDS THEREFOR, AMENDING FOR THE PURPOSE REPUBLIC
ACT NO. 7722, OTHERWISE KNOWN AS THE “HIGHER EDUCATION
ACT OF 1994”

EXPLANATORY NOTE

The Commission on Higher Education (CHED) was created through R.A. 7722 or the Higher
Education Act of 1994 as part of the policy decision of Congress to separate responsibilities and
mandates over basic, higher and technical-vocational education across three agencies of government.
This major shift in education policy was a product of a long series of education reviews and
recommendations carried out through the Monroe Commission (1925), Economic Survey Committee
by the Bureau of Education (1927), Quezon Education Survey (1935), UNESCO (1949), Swanson
survey (1967), and the Congressional Commission on Education in 1991. R.A. 7722 mandated CHED
to perform policy making, regulatory, and developmental functions over all public and private higher
education institutions. As created, the Commission was not envisioned to have implementation
functions. Its functions were anchored the Constitutional mandate to protect, foster and promote the
right of all citizens to affordable quality education at all levels; ensure that education shall be
accessible to all; advance learning and research; develop responsible and effective leadership; develop
high-level and middle-level professionals, and the enrichment of our historical and cultural heritage.

Since 1994, the landscape of higher education has undergone significant changes. The
internationalization of higher education, outcomes-based education, quality assurance, giant strides in
information technology, ASEAN integration, the Fourth Industrial revolution, transnational education,
the expansion of secondary education through the K-12 program, and Universal Access to Quality
Higher Education (UAQTE) law require Commission that will steer and assist higher education
institutions to maximize these intemational and regional opportunities.

Apart from global and regional developments, the Philippine Congress has passed numerous laws that
increase implementation mandates for the CHED, such as:

R.A. 10650 or the Open Distance Learning Act;

R.A. 11448 or the Transnational Higher Education Law;

R.A. 10968 or An Act Institutionalizing the Philippine Qualifications Framework;

R.A. 11053 or the Anti Hazing law of 2018;

R.A. 11180 or An Act Requiring Higher Education Institutions to Report Participation and
Program Support Expenditures in All College Athletic Programs;

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6. R.A. 11261 or An Act Waiving Government Fees and Charges in the Issuance of Documents
Required in the Application for Employment of First Time Jobseekers;

7. R.A. 1313 or An Act Defining Gender-Based Sexual Harassment in Streets, Public Spaces,
Online, Workplaces, and Educational or Training Institutions, Providing Protective Measures
and Prescribing Penalties Therefor;

8. R.A. 11393 or An Act Authorizing Higher Education Curriculum Development and Graduate
Training in Advanced Energy and Green Building Technologies, and Appropriating Funds
Therefor;

9. R.A. 11396 or An Act Requiring State Universities and Colleges (SUCs) to Prepare and
Implement a Land Use Development and Infrastructure Plan that Shall Include the
Construction of Dormitories for Students and Housing Sites for Employees;

10, RA 11292 or An Act Providing for the Magna Carta for the Poor; and

11, RA 10931 or the Universal Access to Quality Tertiary Education Law.

The bill aims to strengthen the commission by:

‘* Incorporating all the added mandates created by laws passed by Congress since 1994 in a
single document;

‘* Expanding its mandate to cover sports development, supervision and regulation of higher
‘education programs offered by local universities and colleges (LUCs);

‘* Developing common standards for accrediting agencies; intemationalization of higher
education institutions, establishment of national registry for academic information and
mobility; and strengthening quality assurance;

‘* Giving the Commission quasi-judicial powers to strengthen its capability to establish and
enforce educational policies and standards;

Creating new offices in CHED that will carry out its added mandates; and
Increasing its manpower complement to ensure successful execution of all its functions that
include recently added mandates.

This measure previously passed the third reading in the 18° Congress. It was proposed by
Representatives Mark O. Go, Rufus B. Rodriguez, Henry R. Villarica, Michael Odylon L. Romero,
Enrico A. Pineda, Eduardo “Bro, Eddie” C. Villanueva, Domingo C. Rivera, Xavier Jesus D.
Romualdo, Evelina G. Escudero, Ann K. Hofer, Leonardo L. Babasa Jr., Angelo Marcos Barba,
Macnell Lusotan, Mximo Y. Dalog Jr., Mercedes “Didi” C. Cagas, Manuel D. Cabochan III, Ruth
Mariano-Hemnandez, Maricel G. Natividad-Nagafio MD., Leo Rafael M. Cueva, Frederick W. Siao,
Joseph “Jojo” L. Lara, Ma. Theresa V. Collantes, Joy Myra Salvador-Tambunting, Raul C. Tupas,
Paul Ruiz Daza, Jose Enrique “Joet” S. Garcia III, Rose Marie “Baby” J. Arenas, Antonio “Tonypet”
T. Albano, Gabriel H. Bordado Jr., Yasser Alonto Balindong, Strike B. Revilla, Christopher V.P. De
Venecia, Lianda B. Bolilia, Joey Sarte Salceda, Aurelio “Dong” D. Gonzales Jr., Virgilio S. Lacson,
Sergio C. Dagooc, Alfel M. Bascug, Jose “Jun” L. Ong, Junie E. Cua, Estrellita B. Suansing, Stella
Luz A. Quimbo, Adriano A. Ebcas, Jericho Jonas B. Nograles, Roman T. Romulo, Sharon S. Garin,
Micaela S. Violago, Kristine Singson-Meehan, Anthony Peter “Onyx” D. Crisologo, Deogracias
Victor “DV” Savellano, Joselito “Joel” S. Sacdalan, Joseph Stephen S, Paduano, Sarah Jane I. Elago,
Alyssa Sheena P. Tan, Pablo John F. Garcia, Sabiniano S. Canama, Wes Gatchalian, Janice Z.
Salimbangon, Jumel Anthony I. Espino, Ron P. Salo, Cheryl P. Deloso-Montalla, Lawrence “Law” H.
Fortun, Jose “Ping-Ping” I. Tejada, Jesus “Bong” C. Suntay, Horacio P. Suansing Jr., Ria Christina G.
Farifias, Faustino Michael Carlos T. Dy III, Lorenz R. Defensor, Ramon C. Nolasco Jr., Eric G. Yap,
Manuel Jose “Manmix” M. Dalipe, Tyrone D. Agabas, Loa P. Bautista-Bandigan, John Marvin
“Yul Servo” C. Nieto, Argel Jospeh T. Cabatbat, Ruffy B. Biazon, Luisa Lloren Cuaresma, John
Michael R. Duavit, Rudys Cesar G. Farifias 1, Greg G. Gasataya, Ed Chistopher S. Go, Jocelyn Sy
Limkaichong, Corazon T, Nufiez-Malanyaon, Manuel T. Sagarbarria, Way Kurat Zamora, Cyrille
“Beng” F. Abueg-Zaldivar, Narciso R. Bravo Jr., Carl Nicolas C. Cari, Abdullah D. Dimaporo, Alan
“Aldu” R. Dujali, Faustino “Inno” A. Dy V, Michael B. Gorriceta, Eduardo “Eddie” R. Gullas,


Godofredo N. Guya, Glona G. Labadlabad, Edward Vera Perez Maceda, Na. Lucille L. Nava MD.,
Emmarie “Lolypop” Ounao-Dizon, Eddiebong G. Plaza, Hector S. Sanchez, John Reynald M.
Tiangco, Kristine Alexie B. Tutor, Samantha Louise Vargas Alfonso, Rosanna “Ria” Vergara, Shirlyn
Baiias-Nograles, Precious Hipolito Castelo, Wilfrrido Mark M. Enverga, Dahlia A. Loyola, Josephine
Ramirez-Sato, Amihilda J. Sangeopan, Rowena Nifia O. Tauran, and Victor A. Yap as principal
authors thereof.

In view of the foregoing, approval of this measure is eamestly sought.

MIDYA. CUA
Reprgbentative
Lone Djftrict, Quirino


Philippines
HOUSE OF REPRESENTATIVES
Quezon City, Metro Manila

NINETEENTH CONGRESS
First Regular Session

House Bill No, 894 1

Introduced by Representative Midy N. Cua
Lone District, Quirino

AN ACT STRENGTHENING THE COMMISSION ON HIGHER EDUCATION AND
APPROPRIATING FUNDS THEREFOR, AMENDING FOR THE PURPOSE REPUBLIC
ACT NO. 7722, OTHERWISE KNOWN AS THE “HIGHER EDUCATION
ACT OF 1994”

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 “Amended Higher Education Act”

SEC. 2. Declaration of Policy. — The State shall protect, foster and promote the right of all citizens to
quality education at all levels and take appropriate steps to ensure that education is accessible to all.
The State shall likewise protect academic freedom and 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 professionals, and the enrichment of
our historical and cultural heritage.

State-supported institutions of higher learning shall design their programs to support national,
regional or local development plans.

All institutions of higher learning shall exemplify through their physical and natural
surroundings the dignity and beauty of, as well as pride in, the intellectual and scholarly life.

SEC. 3. Definition of Terms. — As used in this Act:

4) Commission en banc refers to the policy-making body of the Commission on Higher
Education (CHED) composed of the Chairperson and Commissioners sitting as a group in
order to exercise their powers and discharge their functions under the mandates prescribed by
this Act,

b) Foreign higher education institutions refer to foreign-owned and duly recognized higher
education institutions abiding by a prescribed system of education duly registered in a country
other than the Philippines;

©) Higher education institution (HEI) refers to either a college or university, whether public or
private, permitted to operate by offering degree programs and regulated by the CHED;


4) Local universities and colleges refer to public HEls established and financially supported by
their respective local government units;

©) Private higher education institutions refer to HEIs which are owned by private individuals,
groups or entities recognized by the CHED and registered with the Securities and Exchange
Commission; and

£) State universities and colleges refer to public HEIs created and established by law with
independent and separate governing boards.

SEC. 4. Commission on Higher Education. - The CHED created under Republic Act No. 7722,
otherwise known as the “Higher Education Act of 1994”, shall exercise the powers and functions
vested upon it by this Act.

‘The CHED is independent and separate from the Department of Education (DepEd) and is
attached to the Office of the President for administrative purposes only. Its coverage shall be both
public and private HEIs offering degree programs, except those explicitly removed by Congress from
its jurisdiction. The CHED shall continue to support, enhance and strengthen the Mindanao State
University (MSU) System, and all other state and local universities and colleges within the
Bangsamoro Autonomous Region: Provided, That the passage of this Act shall not diminish, reduce
nor prejudice the support and funding from the national government enjoyed by the MSU System and
all other state and local universities and colleges in the Bangsamoro Autonomous Region in Muslim
Mindanao (BARMM) prior to the passage of this Act: Provided, Further, That all state universities
and colleges shall remain to be governed by their own charters and existing laws.

The CHED is mandated to formulate and implement policies governing the delivery of
education services by public and private HEIs except those under the jurisdiction of the BARMM, as
provided for in Republic Act No. 11054, or the “Organic Law for the Bangsamoro Autonomous
Region in Muslim Mindanao”. As such, it shall exercise oversight powers and reasonable supervision
over HEls, including foreign HEIs which operate pursuant to Philippine laws.

SEC. 5. Commissioners. ~ The CHED shall be headed by five (5) full-time members, Chairperson and
four (4) Commissioners, who shall be holders of earned doctorate degrees, defined as Level 8 in the
Philippine Qualifications Framework (PQF), conferred by reputable HEIs recognized by the CHED
and have been actively engaged in higher education for at least ten (10) years, with at least five (5)
years of managerial experience, and must not have been candidates to elective positions in the national
or local election immediately preceding their appointment.

The Chairperson and the Commissioners must be persons known to possess the highest degree
of professionalism and integrity, and who have distinguished themselves as authorities and experts in
their chosen fields of learning as professors, researchers, managers, administrators, professional
practitioners and in other fields of endeavors that can contribute to efficient and effective higher
‘education governance.

‘The Commissioners shall possess different academic specializations.

The President of the Philippines shall appoint the Chairperson, four (4) Commissioners and
three (3) Deputy Commissioners. The Deputy Commissioners shall each be responsible for (1)
Standards and Quality Assurance; (2) Administration and Finance; and (3) Planning and Grants
Administration.

In no case shall any or all of the Commissioners or Deputy Commissioners appoint
representatives to act on their behalf.


SEC. 6. Term of Office. ~The President shall appoint the full-time Chairperson, Commissioners and
Deputy Commissioners for a term of four (4) years, without prejudice to one (1) reappointment. They
shall be appointed based on merit and track record of performance.

The Chairperson, Commissioners, and Deputy Commissioners shall hold office until their
successors shall have been appointed and qualified. In case a member fails to complete a term, the
successor shall be appointed by the President of the Philippines for a full four (4)-year term without
prejudice to reappointment to a second term. In case of a reappointment, the time served in an acting
or holdover capacity shall be counted as part of the new four (4)-year term.

SEC. 7. Rank and Emoluments. — The Chairperson shall have the rank of Department Secretary and
shall be a regular member of the Cabinet. The Commissioners shall have the rank of Department
Undersecretary. The Deputy Commissioners shall have the equivalent rank of an Assistant Secretary.
They shall be entitled to receive the corresponding compensation and other emoluments, and shall be
subject to the same conditions for disqualifications. Consistent with the provisions of Executive Order
No. 292, otherwise known as the “Administrative Code of 1987”, they are allowed to receive benefits,
subject to existing rules and regulations.

SEC. 8. Duties and Responsibilities of the Chairperson, — Subject to pertinent laws and and rules
adopted the policies by the CHED, the Chairperson shall:

a) Actas the Chief Executive Officer of the CHED;
b) Act as the Presiding Officer of the Commission en banc;

c) Submit to the Office of the President, rules and regulations adopted by the CHED which
require Presidential attention or action, including annual and other periodic reports;

d) Direct the Executive Director, the Secretariat, and the Regional Directors in the performance
or execution of the decisions and policies of the Commission en banc;

©) Appoint focal persons and representatives of the CHED to advisory boards, councils and
similar bodies where the CHED is identified by law as an ex-officio member; and

£) Appoint advisers and create advisory bodies to advise and provide support to the office of the
Chairperson.

SEC. 9. Powers and Functions of the CHED. - The CHED shall exercise the following powers and
function

a) Formulate a roadmap for Philippine higher education that sets the general directions for its
development, including the formulation of educational policies and standards that ensure the
accessibility and continuing improvement of tertiary education services, thereby ensuring the
creation and development of human resources that are responsive, innovative, and globally
competitive;

b) Prepare and implement development plans, policies, priorities, and programs on higher
education and research consistent with national and regional development goals, international
human resource requirements, and address job mismatch between education and industry
requirements;

©) Broaden access to quality higher education through programs and services, particularly for the
disadvantaged students, such as indigenous peoples, poor and deserving students, and students
from depressed areas pursuant to Republic Act No. 10931 or the “Universal Access to Quality
Tertiary Education Act” and other related laws on student financial assistance;


4) Direct the development and reform of higher education towards world class standards, and
harmonization with the Association of Southeast Asian Nations (ASEAN) education plan, and
international conventions and agreements;

©) Enable the development of non-traditional higher education programs and delivery modes,
including flexible learning modalities such as blended learning, online and distance education
pursuant to Republic Act No. 10650 or the “Open Distance Learning Act”, ladderized
education pursuant to Republic Act No. 10647 or the “Ladderized Education Act”, the
Expanded Tertiary Education Equivalency and Accreditation Program or ETEEAP, and
applicable executive orders and issuances;

f) Facilitate the development of sports and wellness programs in HEIs to produce globally
competitive student-athletes in coordination with the Philippine Sports Commission;

g) Set minimum quality assurance standards and guidelines for programs and institutions for all
HEls, as well as a governance framework for all state universities and colleges (SUCs) and
local universities and colleges (LUCs), and accrediting agencies, as recommended by panels
of experts in the field, subject to public hearing and publication, and enforce the same;

h) Review, monitor, and evaluate the curricula and other academic programs of HEls vis-a-vis
their performances in various government licensure examinations and certifications;

i) Identify, support and develop centers of excellence in program areas needed for the
development of world-class scholarships, including provision for faculty academic
development in HEIs, nation building and national development;

i) Accelerate the establishment of transnational higher education programs, the
internationalization of higher education in the country and the development of transnational
higher education sector consistent with Republic Act No. 11448, otherwise known as the
“Transnational Higher Education Act”;

k) Exercise quasi-judicial powers in the pursuit of the mandate of the CHED;

1) Develop and enforce a system of program compliance and impose necessary sanctions for
causes provided by law and only after due process, such as the imposition of fines or penalties,
downgrading to permit status, nonrecognition of accreditation, termination by closure or
phase-out of higher education programs, or cessation of operations of public and private HEIs,
including LUCs which are not in compliance with the prescribed minimum policies, standards
and guidelines (PSGs) set by the CHED or international conventions: Provided, That in the
case of LUCs, the action or decision of the CHED shall be in conjunction with, and not in
conflict with the provisions of Republic Act No. 7160, otherwise known as the “Local
Government Code of 1991”: Provided, Further, That no restraining orders or injunctions shall
be issued upon the actions of the CHED in the exercise of its quasi-judicial functions, except
by the appellate courts after proper proceedings: Provided, Further, That the welfare of
students, faculty, and employees shall be given due consideration: Provided, Finally, ‘That the
exercise of quasi-judicial power shall include such actions as the issuance of subpoena,
summons, and initiation of contempt proceedings against recalcitrant parties under its
jurisdiction;

m) Set PSGs for the creation of new HEls, as well as the conversion or elevation of schools to
institutions of higher learning;


1n) Develop and implement standards and systems on reclassification, promotion and professional
development of personnel in SUCs and LUC's in coordination with the Department of Budget
and Management (DBM) and the Civil Service Commission (CSC), and in consultation with
the Philippine Association of State Universities and Colleges, the Association of Local
Colleges and Universities and the Coordinating Council of Private Educational Associations;

©) Support HEIs in the implementation of the Philippine National Qualifications Framework for
higher education in coordination with the DepEd, Technical Education and Skills
Development Authority and other appropriate government agencies consistent with Republic
‘Act No. 10968, otherwise known as the “PQF Act”;

p) Set guidelines for reasonable increases in tuition and other fees in private HEIs: Provided,
That the CHED shall, through its regional offices, strictly monitor their compliance with the
guidelines set for this purpose;

q) Provide directions and common standards for accrediting agencies;

1) Administer the Higher Education Development Fund, as provided for in Section 15 of this
Act, and based on the guidelines set by the CHED, approve projects that shall promote the
development of public and private HEIs;

8) Conduct mediation, conciliation, settlement meeting or conferences between HEIs and
students, teachers and staff involving academic issues, in conjunction and in harmony with
existing civil service rules and regulations;

t) Chair the governing boards of SUCs and provide direction to these institutions and ensure that,
the PSGs of the CHED are complied with and fully implemented by them;

u) Establish a national registry for academic information and mobility and other relevant
mechanisms for information sharing and dissemination locally or internationally, in
coordination with other concerned government agencies;

v) Develop criteria for allocating additional resources such as research and program development
grants, scholarships, and other similar programs sourced from the Higher Education
Development Fund of the CHED and other fund sources outside of the budget and income of
the HEls: Provided, That these shall not detract from the fiscal autonomy already enjoyed by
colleges and universities;

w) Authorize the periodic review of the organization, functions, mission and structure of the
entire CHED in the light of social, economic, and technological changes, and propose the
necessary interventions, including appropriate legislations;

x) Fix and adjust the salaries of officials and personnel and administer the hiring of employees,
promotion and other staffing concerns in accordance with the Revised Compensation and
Position Classification System subject to the evaluation and approval of the DBM; and

y) Promulgate such rules and regulations and exercise such other powers and functions as may be
necessary to carry out effectively the purposes and objectives of this Act.

SEC. 10. Quasi-Judicial Powers of the CHED. ~ The CHED shall exercise exclusive original
jurisdiction over the following violations:

a) Fraud or deceit committed in connection with the application for and grant by the CHED of
government permits or recognition and other incentives and qualifying procedures;


b) Failure to comply with conditions or obligations prescribed by the CHED as minimum
standards in operating academic courses and programs;

©) Unauthorized operation of a school or course, or any component thereof, or any violation of
the requirement governing advertisements or announcements of educational institutions; and

d) Other cases and complaints related to its powers and functions.

Except for cases involving the failure to comply with the minimum standards in operating
academic courses and programs prescribed by the CHED, complaints and cases shall first be filed with
the concerned regional office which has jurisdiction over the area. The Regional Director shall resolve
the case within a reasonable period from the time of submission of the case for resolution, but in no
case shall the entire resolution of the case exceed sixty (60) days from filing.

An appeal from the decision of the Regional Director may be filed with the Office of the
Executive Director of the CHED within ten (10) days from receipt of the decision. The Office of the
Executive Director shall rule on the appeal within sixty (60) days from the filing of the appeal.

‘An appeal from the decision of the Office of the Executive Director may be filed with the
Commission en banc within ten (10) days from receipt of the decision and the latter shall resolve the
appeal within sixty (60) days from the filing of the appeal.

The decision of the Commission en bane shall be executory. An appeal from the decision of
the Commission en banc may be filed with the Court of Appeals, subject to the period for appeals from
the decisions of administrative quasi-judicial bodies as provided in the Rules of Court.

‘The Regional Trial Courts (RTCs) are prohibited from issuing any injunction against decisions
of the CHED jin the exercise of its quasi-judicial functions. In all other matters which does not
contravene the intent and spirit of this section, the CHED may coordinate with the RTCs.

The finding of a violation committed by an HEI shall not be taken against its students, teachers
and employees who believed in good faith that the school acted in conformity with the standards and
guidance of the CHED: Provided, However, That upon issuance of the CHED of a notice to the public
declaring the non-compliance of the HEI and the sanctions imposed therefor, the general public shall
be assumed to be fully informed of such violation and thus no presumption of good faith can be
enjoyed thereafter by students, faculty and employees.

SEC. 11. Secretariat and the Executive Director. ~ The CHED shall organize a secretariat which shall
be headed by an 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 Director. It shall also prepare and approve its budget.

The Executive Director must have at least five (5) years administrative or 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, with the rank and emoluments of an
assistant secretary to be appointed by the President of the Philippines upon the recommendation of the
Commission en banc.

The CHED 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. 12. Central Office Operation. - The CHED shall establish a Central Office in accordance with
the Revised Administrative Code of 1987 and other pertinent laws and issuances to support the
fulfillment

of the powers and functions of the CHED at the national level. The offices under the Central Office
shall be headed by a qualified Director and Assistant Director.

‘The Chairperson of the CHED shall appoint such personnel necessary to carry out the
objectives, policies, and functions of the CHED, subject to existing laws and the rules and regulations
of the CSC.

SEC. 13. Regional Operations. ~ The Regional Offices of the CHED shall be headed by Regional
Directors with the rank and emoluments of Director IV to be appointed by the President of the
Philippines.

The Regional Offices shall be under the direct control and supervision of the CHED
Chairperson and shall have the following functions:

a) Implement the programs of the CHED in the regional level, as well as in highly urbanized
cities, which are under their jurisdiction;

b) Develop and recommend programs for regional and local-level implementation within the
policies set by the CHED;

¢) Facilitate the implementation of Republic Act No. 10931, including disbursement of checks;
and

4) Perform such other duties and functions as may be deemed necessary.
In order to be attuned and updated on the official activities and needs of the concerned SUCs,

the Regional Director shall sit as a resource person in all board meetings of SUCs which the regional
office has jurisdiction over.
SEC. 14, Provincial Offices. — The CHED shall establish provincial offices to ensure the
implementation of policies and programs across island groups and remote areas. The provincial offices
shall be headed by provincial directors, who shall have the rank and emoluments of Director III. The
provincial offices shall be under the direct control and supervision of their respective regional directors
and shall have the following functions:

) Implement the policies and programs of the CHED in the province under its jurisdiction;

b) Review and recommend programs for implementation within their localities;

©) Provide technical assistance to local government units in the governance of LUCs and the
implementation of local government-initiated programs within their localities;

d) Facilitate the implementation of Republic Act No. 10931, including the disbursement of
checks for HEIs which are under their jurisdiction; and

©) Perform such other duties and functions as may be authorized.
SEC. 15. Higher Education Development Fund. - The Higher Education Development Fund
established under Republic Act No, 7722, hereinafter referred to as the Fund, shall be used exclusively
for the strengthening of higher education in all regions of the country.

‘The Fund shall consist of:

10


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

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

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

Government financing institutions identified and requested by the CHED 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 likewise consist of donations and grants privately raised by the CHED. These
and other conveyances including equipment, properties, materials and services by gratuitous title shall
be exempt from the donor's tax and shall constitute as allowable deduction from the gross income tax
of the donor. The Fund shall fall under the Tax Exemption provision in Section 21.

SEC. 16. Management and Administration of the Fund. ~The Fund shall be administered by the
CHED. For sound and judicious management, the Bureau of Treasury under the Department of
Finance shall be the portfolio manager of the Fund.

As administrator of the Fund, the CHED shall prepare the necessary guidelines for its use,
‘subject to the following conditions:

a) No part of the seed capital of the 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 shall be used for administrative expenses;

©) The CHED shall appoint and organize a separate Fund Office to be headed by a
director and to be composed of units responsible for resource mobilization,
planning and programs, monitoring and evaluation, and finance and
administration, among others. Since the Fund comes from contributions from the
government and private sector, the Fund Office shall be administratively
independent and budgetarily separate from the CHED Secretariat; and

4) The Fund shall be utilized equitably according to regions to strengthen HEIs and
support priority programs. In no case shall the Fund be utilized for purposes
benefiting individuals other than those earmarked for developmental purposes
under the guidelines set by the CHED.

SEC. 17. Technical Panels. - The CHED shall reconstitute or organize technical panels for different
disciplines and academic program areas. They shall assist the CHED in setting standards and
evaluating academic programs for regulatory and development purposes. The technical panels shall be
composed of individuals highly recognized in their fields of expertise and who shall be tasked to
formulate a roadmap for the development of disciplinal and degree programs; review, revise, and
update policies, standards, and guidelines based on the policy direction set by the CHED; and serve as,
resource persons in its various activities.

The technical panels shall serve as advisory or recommendatory bodies for a specific
discipline or related program, and their recommendations shall be subject to the approval of the
Commission en banc.

i


SEC. 18. 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 CHED shall be made except for: (a) minimum unit
requirements for specific academic programs; (b) general education distribution requirements as may
be determined by the CHED; and (c) specific professional subjects as may be stipulated by the various
licensing entities. Academic or curricular restrictions which are not required from chartered SUCs
shall likewise not be made upon private educational institutions.

Both public and private HEIs, including those established by local governments must comply with the
mandatory minimum institutional and program standards set by the Commission en banc.

SEC. 19. Guarantee of Religious Freedom. — No higher education student, faculty, or be other
members of the academic community shall prohibited from their exercising right to religious freedom
in the HEI or any of its campuses.

SEC. 20. Incentives For Accreditation. ~ The CHED shall provide incentives to institutions of higher
learning, public and private, whose proposed programs are approved and accredited or whose needs
are for accreditation purposes.

SEC. 21. Tax Exemptions. — All grants, bequests, endowments, donations and contributions made to
the CHED, 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 of the donor for purposes of
‘computing the taxable income of the donor in accordance with the provisions of the National Internal
Revenue Code of 1997, as amended.

SEC. 22. Scope of Authority. - The CHED shall exercise such authority as may be deemed necessary
within its premises or areas of operation to effectively carry out its powers and functions and to attain
its objectives: Provided, That the CHED may seek the assistance of the other government agencies for
proper implementation of this Act.

SEC. 23. Periodic Review. - The CHED shall undertake a periodic assessment of its accomplishments,
and review and update the roadmap of Philippine higher education every ten (10) years. The updated
roadmap shall be submitted to Congress and the Office of the President for the formulation of new
policies necessary for the continuous and sustained modernization of higher education in the country.

SEC. 24, Appropriations. — The initial amount for the implementation of this Act shall be charged
against the current year's appropriations of the CHED.

Thereafter, such amount necessary shall be included in the annual General Appropriations Act.

SEC. 25. Transitory Provisions. — Upon the effectivity of this Act, the incumbent Chairperson and
Commissioners of the CHED shall serve as the Chairperson and Commissioners, respectively, without
need of new appointments subject to the following conditions: (I) the incumbent Chairperson and
Commissioners serving their first terms upon the passage of this Act shall be deemed reappointed to
serve full term as provided under this Act but shall not be qualified for reappointment, and (2) the
incumbent Chairperson and Commissioners serving their second terms upon the passage of this Act
shall continue to serve only the remaining duration of the term they are currently serving and shall not
be eligible for reappointment, The incumbent Executive Director shall likewise serve as Executive
Director without need of a new appointment.

All officers and personnel of the CHED shall continue to perform their duties and
responsibilities and receive their corresponding salaries and benefits. The approval of this Act shall not
‘cause any demotion in rank or diminution of salary, benefits and other privileges of the incumbent
personnel of the CHED.

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SEC. 26. Implementing Rules and Regulations. ~ The CHED shall, within ninety (90) days after the
effectivity of this Act, formulate the necessary rules and regulations for its effective implementation,

SEC. 27. Separability Clause. - If any provision of this Act is held unconstitutional or invalid, all
other provisions not affected thereby shall continue to be in full force and effect.

SEC. 28. Repealing Clause. — All laws, decrees, executive orders, rules and regulations or parts
thereof, which are inconsistent with this Act, are hereby repealed, amended or modified accordingly.

SEC. 29, Effectivity. ~ This Act shall take effect fifteen (15) days after its publication in the Official
Gazette or in a newspaper of general circulation.

Approved,

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