« .
EIGHTEENTH CONGRESS OF THE) 
REPUBLIC OF THE PHILIPPINES ) 
Second Regular Session 
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SENATE
S. No. 2205
Introduced by Senator Manuel "Lito" M. Lapid
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AN ACT
ESTABLISHING THE PHILIPPINE ENTREPRENEURS ACADEMY, 
AND APPROPRIATING FUNDS THEREFOR
EXPLANATORY NOTE
Micro, Small, and Medium Enterprises (MSMEs) are considered to be the 
backbone of our economy for several reasons such as generation of employment to 
Rlipinos, spearheading innovation, among others. In 2019, the Philippine Statistics 
Authority (PSA) reported that out of 1,000,506 business enterprises, 995,745 or 
99.5% are MSMEs. These MSMEs generated a total of 5,510,760 jobs or 62.4% of the 
country's total employment. Further, the Department of Trade and Industry (DTI) 
reported that MSMEs contributed approximately 35.7% of the total value-added or 
gross domestic product in 2018.
Given the statistics mentioned above, it is but evident how significant the role 
of these MSMEs Is in our economy. Yet, our country does not fully invest on these and 
capitalize on the potential of the same for economic growth. Thus, this bill aims to 
address such gap by establishing a learning institution to be known as the Philippine 
Entrepreneurs Academy. The Academy shall formalize and integrate the nonformal 
entrepreneurship programs and short-term technical-vocational courses In TESDA, 
DTI, and Department of Science and Technology, and other government agencies, 
under a school system. It seeks to enhance the core competencies of individuals on 
entrepreneurship and promote the relevance of entrepreneurship to job generation


and sustainable economic growth. The Academy Is the catalyst for change - it shall 
facilitate the growth of MSMEs which wili stimulate our economy.
In view of this, early passage of this bill is sought.
O M. LAPID
Senator


EIGHTEENTH CONGRESS OF THE) 
REPUBLIC OF THE PHILIPPINES ) 
Second Regular Session 
)
SENATE
S. No. 2205
%
T»ME¥
Introduced by Senator Manuel "Lito" M. Lapid
AN ACT
ESTABLISHING THE PHILIPPINE ENTREPRENEURS ACADEMY, 
AND APPROPRIATING FUNDS THEREFOR
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Be it enacted by the Senate and the House of Representatives of the Philippines 
in Congress assembled:
Section 1. Short Title. - This Act shall be known as "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.
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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 also 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


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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 also administer education and consultancy, and 
supervise publication on entrepreneurship. It shall also conduct scientific and policy- 
oriented research and training.
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 Entrepreneurs 
Academy-Clark Campus. The other campus shall be located in the City of Baguio, to 
be known as the 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 the CHED, and the President of the Academy, 
respectively, with the following as members:
(a) Chairperson of the Committee on Higher, Technical and Vocational 
Education of the Senate;
(b) Chairperson of the Committee on Higher and Technical Education of the 
House of Representatives;
(c) Director General of the TESDA;
(d) Director General of the National Economic and Development Authority 
(NEDA);
(e) Secretary of the DOST;
(f) Secretary of the DTI;


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(g) President of the federation of faculty associations of the Academy;
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(h) President of the federation of student councils of the Academy;
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(i) President of the federation of alumni associations of the Academy; and
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(j) Two (2) prominent citizens from the private sector who have distinguished
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themselves in their professions or fields of specialization.
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The members of the Board shall not receive any compensation or remuneration
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for their services as such, but may be reimbursed for actual and necessary expenses
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incurred In discharging the business of the Academy.
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Section 7. Powers and Duties of the Board. - The Board shall be the
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highest policymaking body of the Academy. In addition to its general powers of
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administration and the exercise of all the powers granted to the Board of a corporation
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under existing laws, the Board shall have the following specific powers and duties:
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(a) Promulgate and implement policies In accordance with the declared State
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policies and pertinent provisions of the Philippine Constitution on education, as
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well as policies, standards and thrusts of the CHED under Republic Act No.
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7722, otherwise known as the "Higher Education Act of 1994";
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(b) Prepare, adopt and enact rules and regulations not contrary to law, as may be
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necessary to carry out the purposes and functions of the Academy, and to
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effectively discharge its responsibilities;
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(c) Receive assistance from any legitimate source to augment the Internal sources
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of funds, as may be provided, for the support of the Academy in the manner It
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may determine, in its discretion, to carry out the purposes and functions of the
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Academy;
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(d) Constitute the Board, as herein defined;
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(e) Appoint the President and as many Vice-Presidents as may be necessary to
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assist the President in the administration of the affairs of the Academy;
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(f) Review periodically the administrative procedures and programs of the
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Academy;
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(g) Receive, in kind and in trust, legacies, gifts and donations of real and personal
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properties of all kinds, to administer and dispose the same when necessary for


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the benefit of the Academy, subject to the 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 laws, rules and regulations 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 allocated.
Of for reason beyond its control, the Academy shall not be able to pursue any 
project for which funds have been appropriated and allocated under its 
approved program of expenditures, the Board may authorize the use of said 
funds for any reasonable purpose which, in its discretion, may be necessary 
and urgent for the attainment of the objectives and goals of the Academy.
(i) Adopt and implement a socialized tuition scheme for greater access of poor, 
but deserving students In accordance with Republic Act No. 10931 or the 
"Universal Access to Quality Tertiary Education Act";


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0) Authorize the construction or repair of its buildings, machineries, equipment,
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and other facilities, as well as the purchase and acquisition of real and personal
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properties. Including the necessary supplies, materials, and equipment;
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(k) Appoint, upon the recommendation of the President of the Academy, the deans,
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executive directors, heads of departments, faculty members, and other officials
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and employees;
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(I) Prescribe the salaries of faculty members and administrative officials and
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employees, subject to the provisions of Republic Act No. 11466, otherwise
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known as the "Salary Standardization Law of 2019" and civil service rules and
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regulations governing hours of service and related concerns, and other
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pertinent laws;
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(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
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and guidelines;
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(n) Formulate and promulgate the rules of discipline for the students of the
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Academy to ensure orderly and effective governance thereof;
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(o)Set policies on admission and graduation of students: Provided, That they
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conform with the CHED guidelines;
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(p) Award honorary degrees upon persons in recognition of outstanding
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contribution in the field of education, public service, arts, science and
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technology, or any field of specialization within the academic competence of
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the Academy and to authorize the issuance of certificates of completion of non-
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baccalaureate programs and nontraditional or innovative courses: Provided,
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That these conform with the applicable guidelines of the CHED and TESDA;
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(q) Establish research and extension centers of the Academy where such will
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promote the development of the latter;
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(r) Establish professional chairs in the Academy and provide fellowships for
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qualified faculty members and scholarships to deserving students;
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(s) Enter into any agreements or joint ventures with business and industry for the
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profitable management of the economic and manpower assets of the Academy,
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the proceeds from which shall be used for upgrading of facilities and its
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development;


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(t) Authorize an external management audit of the Academy, to be financed by
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the CHED, subject to the rules and regulation of the Commission on Audit and
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institute reforms, including academic and structural changes, on the basis of
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the audit results and recommendations;
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(u) Import economic, technical and cultural books and publications;
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(v) Develop consortia, academe-industry linkages and other forms of networks with
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other institutions and agencies, both public and private, local and foreign:
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Provided, That these comply with the applicable guidelines of the CHED in
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furtherance of the purposes and objectives of the institutions as well as develop
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academic arrangements for institution capacity and capability building with
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appropriate institutions and agencies, public and private;
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(w) Appoint experts and specialists as consultants, or visiting or exchange
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professors, scholars, researchers, as the case may be: Provided, That the
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appointment shall conform to the CHED guidelines;
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(x)Set up the adoption of modern and innovative modes of transmitting
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knowledge, such as the use of information technology, the dual training system,
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open distance learning, and community laboratory for the promotion of greater
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access to education;
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(y) Outsource, where most advantageous to the institution, the management of
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non-academic services such as health, food, building or grounds or property
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maintenance and similar objectives;
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(z) Delegate any of its powers and duties to the President or the other officials of
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the Academy, as it may deem appropriate, so as to expedite the administration
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of the affairs of the Academy;
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(aa) 
Extend the term of the President of the Academy beyond the age of
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retirement, when deemed meritorious due to outstanding performance, but not
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later than the age of seventy (70) years old; and
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Promulgate rules and regulations, as may be necessary, to carry out the
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purposes and functions of the Academy.
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Section 8. President of the Academy. - The Academy shall be headed by
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a President, who shall render full-time service and shall be appointed by the Board


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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 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;
(c) 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
(e) Exercise other powers and discharge other functions, as may be vested by the 
Board and the Executive Committee.
The Board shall designate an Officer-In-Charge (OIC) of the Academy in case 
of vacancy in the Office of the President by reason of death, compulsory retirement, 
resignation, removal for cause or incapacity of the President to perform the functions 
of the office, pending the appointment of a new President: Provided, That the OIC


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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 Member 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 short 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 economic, technical, vocational, 
scientific, philosophical, historical or cultural purposes made by the Academy, upon 
certification by the CHED, shall be exempt from customs duties in accordance with the 
provisions of Republic Act No. 10863, otherwise known as the "Customs Modernization 
and Tariff Act".
All grants, bequest, endowments, donations and contributions made to the 
Academy, to be used actually, directly and exclusively by it, shall be exempt from


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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 for the immediate 
implementation of this Act shall be included in the annual General Appropriations Act.
Section 14. Implementing Rules and Regulations. - Within ninety 
(90) days from the approval of this Act, the CHED, In coordination with the TESDA 
and the DTI, shall formulate the necessary rules and regulations to fully implement 
the provisions of this Act.
Section 15. Separability Clause. - If, for any reason, any part or 
provision of this Act Is declared Invalid or unconstitutional, the remaining parts or 
provisions not affected shall remain In full force and effect.
Section 16. Repealing Clause. - All laws, presidential decrees, executive 
orders, rules and regulations contrary to or inconsistent with the provisions of this Act 
are repealed or modified accordingly.
Section 17. Effectivity. - This Act shall take effect fifteen (15) days after 
its publication in the Official Gazette or in a newspaper of general circulation.
Approved,