REPUBLIC ACT NO. 7722 - AN
ACT CREATING THE COMMISSION ON HIGHER EDUCATION, APPROPRIATING FUNDS
THEREFORE AND FOR OTHER PURPOSES
Section 1. Title. — This Act shall be known as the "Higher
Education Act of 1994."
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 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.
Sec. 3. 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), 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 programs in all post-secondary educational
institutions, public and private.
Sec. 4. Composition of the Commission. — The
Commission shall be composed of five (5) full-time members.
During the transition period which begins upon approval of this Act,
President may appoint the Secretary of Education, Culture and Sports as
ex-officio chairman of the Commission for a maximum period of one (1)
year. Thereafter, the President shall appoint a Chairman of the
Commission and four (4) commissioners, who shall be holders of earned
doctorate(s), who have been actively engaged in higher education for at
least ten (10) years, and must not have been candidates for elective
positions in the elections immediately preceding their
appointment. They shall be academicians known for their high
degree of professionalism and integrity who have distinguished
themselves as authorities in their chosen fields of learning. The
members of the Commission shall belong to different academic
specializations.
In no case shall any and all of the Commissioners appoint
representatives to act on their behalf.
Sec. 5. Term of Office. — The President shall
appoint the full-time chairman 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 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 term, his successors shall be appointed by the
President of the Philippines but only for the unexpired portion of the
term.
Sec. 6. Rank and Emoluments. — The chairman 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. 7. 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, Culture and Sports, as
chairman;
b) the Director-General of the National Economic and
Development Authority, as co-chairman;
c) the Secretary of Science and Technology;
d) the Secretary of Trade and Industry;
e) the Secretary of Labor and Employment;
f) 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.
Sec. 8. Powers and Functions of the Commission. —
The Commission shall have the following powers and functions:
a) formulate and recommend development plans,
policies, priorities, and programs on higher education and research;
b) formulate and recommend development plans,
policies, priorities and programs on research;
c) recommend to the executive and legislative
branches, priorities and grants on higher education and research;
d) 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;
e) 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;
i) 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;
l) 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
o) perform such other functions as may be necessary
for its effective operations and for the continued enhancement, growth
or development of higher education.
Sec. 9. 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.
SECTION 10. The Higher Education Department Fund. — A
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).
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.
c) 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.
SECTION 11. 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;
c) 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 and programs.
SECTION 12. 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.
SECTION 13. 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.
SECTION 14. 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.
SECTION 15. Tax 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.
SECTION 16. Authority. — The Commission 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 Commission may seek
the assistance of other government agencies for the proper
implementation of this Act.
SECTION 17. Appropriation. — The amount of Five
hundred million pesos (P500,000,000) is hereby authorized to be
appropriated for the seed capital of the Fund. The additional
amount of Fifty million pesos (P50,000,000) 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.
SECTION 18. 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 (ACSC), 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.
SECTION 19. 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. 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. Effectivity. — This Act shall take effect
upon its approval.
Approved: May 18, 1994
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