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

Sixteenth Congress
First Regular Session

HOUSE BILL NO._ 38022

Introduced by:
Hon. Mariano U. Piamonte Jr.
Hon. Julieta R. Cortuna

EXPLANATORY NOTE

The law creating the Commission on Higher Education (CHED), R.A.
7722 has seen its implementation obviously in need of amendments.

One of the flaws of the said law is the CHED’s lack of power to
regulate tuition fee increases. There is also this need to regulate review
centers which sort of operate as an educational institution and yet it has
escaped the regulating arms of CHED due its lack of power to regulate
review schools.

Another aspect of CHED that needs to be changed is the inclusion of
political appointees in its composition which will possibly deprive the
entity of some much needed professionalism and expertise. All these
necessary changes of the law creating CHED are contained in this
proposed amendment.

In view of the foregoing, passage of this bill is hereby being earnestly
sought

Ve
MARIANO VU. PIAMOXRTE, JR.

4 R. CORTUNA


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

Sixteenth Congress
First Regular Session

HOUSE BILL NO. 3802

Introduced by:
Hon. Mariano U. Piamonte Jr.
Hon. Julieta R.

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

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

TION 1. Title. This Act shall be known as the “Amended Higher Education
Act”

SECTION 2. Declaration of Policy. \t shall be the policy of the State to
continuously improve the quality of education at all levels in accordance with the mandate
of the constitution to prioritize education in social development.

SECTION 3. Amendment of the Higher Education Act. Republic Act No. 7722
otherwise known as the Higher Education Act of 1994 is hereby amended to read as
follows:

“*SECTION 1. 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 affordable quality education at all levels and shall take appropriate steps to
ensure that education shall be accessible to all. The State shall likewise ensure and protect
academic freedom and shall 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 and middle-level

professionals, and the enrichment of our historical and cultural heritage. State-supported
1


institutions of higher learning shall gear their programs to national, regional or local
development plans, Finally, all institutions of higher learning shall exemplify through their
physical and natural surroundings the dignity and beauty of, as well as their pride in, the
intellectual and scholarly life

SECTION 3. DEFINITION OF TERMS. FOR THE PURPOSE OF IMPLEMENTING
THE PROVISIONS OF THIS ACT, THE FOLOOWING TERMS SHALL BE
CONSTRUED TO MEAN AS FOLLOWS.

A) HIGHER EDUCATION SUBSECTOR- SHALL REFER TO BOTH PUBLIC
AND PRIVATE INSTITUTIONS THAT OFFER TERTIARY EDUCATION
DEGREE PROGRAMS,

HIGHER EDUCATION INSTITUTIONS (HEIs)

PRIVATE INSTITUTIONS PRIMARILY OF

PROGRAMS, INCLUDING POST-SECONDARY DEGREE-GRANTING

VOCATIONAL AND TECHNICAL INSTITUTIONS DULY RECOGNIZED BY

COMMISSION ON HIGHER EDUCATION (CHED);

LOCAL COLLEGES AND UNIVERSITIES (LCUs) ~ REFER TO PUBLIC HEIs.

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) — SHALL REFER TO
PUBLIC HEIs WITH INDEPENDENT AND SEPARATE GOVERNING
BOARDS CREATED AND ESTABLISHED BY LAW,

E) 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).

SEC. [°] 4. Creation of the Commission on Higher Education.

2

Cc

- In pursuance of the abovementioned policies, the Commission on Higher Education
(CHED) is hereby created, hereinafter referred to as the Commission. The Commission
shall be independent and separate from the Department of Education, [

DE CS)] (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 [


>]. IT SHALL ALSO SET THE STANDARDS FOR AND
REGULATE REVIEW CENTERS AND SIMILAR ENTITIES.

SEC. [4] 5. Composition of the Commission PROPER. ~ The Commission PROPER shall
be composed of A CHAIRPERSON [ ] AND FOUR (4)
COMMISSIONERS WHO MUST HAVE DISTINGUISED THEMSELVES IN THEIR
CHOSEN CAREER OR PROFESSION, AND ARE KNOWN FOR THEIR HIGH
DEGREE 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 POSITION IN THE LAST
ELECTION PRIOR TO HIS APPOINTMENT.

THE COMMISSION SHALL REGULARLY MEET ONCE A MONTH, HOW!
THE MA’ IR OF IMPLEMI ION AND EX!
PROGRAMS SHALL BE & JURISDICTION OF THE
THE COMMISSION.



SEC. [5] 6 Term of Office. — The President shall appoint the full-time [: ]
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 [: -] 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
successor shall be appointed by the President of the Philippines but only for the unexpired

portion of the term

SEC. [6] 7. Rank and Emoluments, ~ The [ ] 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

SEC. ["] 8. 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 Education, [ J, as chairman;

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

(0) the Secretary of Science and Technology:

(d) the Secretary of Trade and Industry;

(c) the Secretary of Labor and Employment,

(8 the President of the Federation of Accrediting Associations of the Philippines
(FAAP); and

(g) the President of the Fund for Assistance to Private Education (FAPE). Two (2)
additional members of the Board of Advisers may be appointed by the President upon
recommendation of the Commission;

(h) THE PRESIDENT OF THE PHILIPPINE ASSOCIATION OF STATE
UNIVERSITIES AND COLLEGES (PASUC) AND


(ij) THE PRESIDENT OF THE PHILIPPINE ASSOCIATION OF LOCAL
COLLEGES AND UNIVERSITIES (ALCU),

SEC. [8] 9. Powers and Functions of the Commission. ~ The Commission shall have the
following powers and functions

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

(b) formulate and [ ] IMPLEMENT development plans, policies, priorities
and programs on research IN HIGHER EDUCATION:

(c) recommend to the executive and legislative branches, priorities and grants on
higher education and research;

(4) set. minimum standards for programs and institutions of higher learning
recommended by panels of experts in the field and subject to public hearing, and enforce
the same;

(€) monitor and evaluate the performance of programs and institutions of higher
learning 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;

(f) identify, support and develop potential centers of excellence in program areas
needed for the development of world class scholarship, nation building and national
development;

(g) recommend to the Department of Budget and Management the budgets of public
institutions of higher learning as well as general guidelines for the use of their income;

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

(j) 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;

(j) direct or redirect purposive research by institutions of
higher learning to meet the needs of agro-industrialization and development,

(k) devise and implement resource development schemes;

(1) administer the Higher Education Development Fund, as described in Section 10

hereunder, which will promote the purposes of higher education;


(m) review the charters of institutions of higher learning and state universities and
colleges including the chairmanship and membership of their governing bodies and
recommend appropriate measures as basis for necessary action:

(n) 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]

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

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

(q) REGULATE THE INCREASE/REDUCTION IN TUITION AND OTHER F!
OF PUBLIC AND PIRVATE COLLEGES AND UNIVERSITIES.

SEC. [9] 10. The Secretariat. ~ The Commission shall organize a secretariat which shall
be headed by an executive officer, 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.

SEC. [/0] 11. The Higher Education Development Fund. ~ & Higher Education
Development Fund, hereinafter referred to as the Fund, is hereby established exclusively
for the strengthening of higher education in the entire country
(a) The Government'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).

fe


(b) Starting Fiscal Year 1995 and every year thereafter, government financing
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

(6) The Fund shall have a private portion to be raised from donations, gifts, and other

conveyances including materials, equipment, properties and services by gratuitous title

SEC. [11] 12. 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. As
administrator of the Fund, the Commission 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 Commission shall appoint and organize a separate staff, independent
administratively and budgetarily separate from the Commission Secretariat; and

(4) The Fund shall be utilized equitably according to regions and programs.

SEC. [/ 2] 13. 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 and in program and institution monitoring and evaluation. The
technical panels shall be composed of senior specialists or academicians to be appointed

by the Commission

SEC. [3] 14. 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

(6) 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


SEC. [! 4] 15. 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

SEC. [5] 16. Zax Exemptions. ~ Any donation, contribution, bequest, and grant which
may be made to the Commission shall constitute as allowable deduction from the income
of the donor

for income tax purposes and shall be exempt from donor's tax, subject to such conditions

as provided under the National Internal Revenue Code, as amended.

SEC. [0] 17. Authority. — The Commission shall exercise such authority as may be
deemed necessary within its premises or areas of operation to effectively carry out i

powers and functions and to attain its objectives: Provided, That the Commission may
seek the assistance of other government agencies for the proper implementation of this

Act

SEC. [17] 18. Appropriation. ~ The amount of Five hundred million pesos (500,000,000)
is hereby authorized to be appropriated for the seed capital of the Fund. The additional
amount of Fifty million pesos (PS0,000,000) is hereby authorized to be appropriated out of
the funds in the National Treasury not otherwise appropriated or out of the Philippine

Amusement and Gaming Corporation (PAGCOR) funds for the initial operation of the

Commission, The sum equivalent to the appropriations for the current year for the Bureau
of Higher Education and the degree-granting programs of the Bureau of Technical-
Vocational Education, including those for higher and tertiary education and degree
granting vocational and technical programs of the Bureau of Technical-Vocational
Education in the regional offices, as well as parts of the budgetary items under the DECS
budget that are concerned with higher and tertiary education and degree-granting
vocational and technical programs such as those for personal services, maintenance and
other operating expenses and capital outlay, shall be transferred to the Commission

Thereafter, the funds necessary shall be included in the General Appropriations Act

[8] 19. Transitory Provisions. ~ Such personnel, properties, assets and liabilities,

functions and responsibilities of the Bureau of Higher Education, including those for
higher and tertiary education and degree-granting vocational and technical programs in the
regional offices, under the Department of Education, Culture and Sports, and other
government entities having functions similar to those of the Commission are hereby

@


transferred to the Commission. The Commission shall have the authority to appoint its
own personnel. All regular or permanent employees transferred to the Commission shall
not suffer any loss of seniority or rank or decrease in emoluments. Personnel of the Bureau
of Higher Education not otherwise transferred to the Commission shall be reassigned by
the DECS in any of its offices and bureaus: Provided, however, That, any employee who
cannot be accommodated shall be given all the benefits as may be provided under existing
laws, rules and regulations. Jurisdiction over DECS-supervised or chartered state
supported post-secondary degree-granting vocational and technical programs and tertiary
institutions shall be transferred to the

Commission. A transitory body is hereby created which shall be composed of the
Secretary of Education, Culture and Sports (DECS), Chair of the Senate Committee on
Education, Arts and Culture, Chair of the House Committee on Education and Culture, a
representative each of the Association of Christian Schools and Colleges (A

. the
Catholic Educational Association of the Philippines (CEAP), the Philippine Association of
Colleges and Universities (PACU), the Philippine Association of Private Schools,
Colleges and Universities (PAPSCU), the Philippine Association of State Universities and
Colleges (PASUC), and the Philippine Association of Private Technical Institutions
(PAPTI), The transitory body shall facilitate the complete and full operation of the
Commission which shall not be later than three (3) months after the effectivity of this Act
It shall likewise, promulgate the rules and regulations necessary to effectively implement
the smooth and orderly transfer to the Commission. The transition period not exceeding
three (3) months shall commence from the approval of this Act

SEC. [)°] 20. Repealing Clause. ~ All laws, 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

SEC. [20] 21. 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.

SEC. [21] 22. Effectivity. — This Act shall take effect upon its approval”

SECTION 4. Appropriations. The budget necessary for the implementation of the
provision of this Act shall be incorporated in the Annual Budget of the Department of

Education.


SECTION 5. Implementing Rules and Regulations. The Department of Education
shall issue the corresponding rules and regulation to implement the provisions of this Act

SECTION 6. Repealing Clause. All laws or parts of any law, orders, rules, and
regulations or parts thereof inconsistent with this Act are hereby repealed or amended
accordingly

SECTION 7. Effectivity Clause. This Act shall take effect fifteen (15) days after
its publication in the Official Gazette or in at least two (2) newspapers of general

circulation.

Approved,