AN ACT CREATING THE COMMISSION ON HIGHER EDUCATION

Case Overview and Summary

Summary of Republic Act No. 7722 (Higher Education Act of 1994)

Declaration of Policy (Section 2):
- The State shall protect, foster and promote the right to affordable quality education at all levels.
- The State shall ensure and protect academic freedom.
- State-supported institutions shall gear programs to national, regional or local development plans.
- Institutions shall exemplify dignity and beauty of intellectual and scholarly life.

Creation of the Commission on Higher Education (CHED) (Section 3):
- CHED is created as an independent and separate body from the Department of Education, Culture and Sports (DECS).
- CHED shall cover both public and private institutions of higher education and degree-granting programs.

Composition of CHED (Section 4):
- CHED shall have 5 full-time members appointed by the President.
- Members must have earned doctorate(s), engaged in higher education for at least 10 years, and not candidates in recent elections.
- Members shall belong to different academic specializations.

Term of Office (Section 5):
- The Chairman and Commissioners shall have a term of 4 years, with possibility of one reappointment.
- Initial appointees shall have staggered terms of 4, 3, and 2 years.

Rank and Emoluments (Section 6):
- The Chairman shall have the rank and emoluments of a Department Secretary.
- The Commissioners shall have the rank and emoluments of an Undersecretary.

Board of Advisers (Section 7):
- A Board of Advisers shall assist CHED in aligning policies with national development needs.
- The Board shall include the Secretaries of DECS, NEDA, Science and Technology, Trade and Industry, and Labor and Employment, among others.

Powers and Functions of CHED (Section 8):
- Formulate development plans, policies, priorities, and programs on higher education and research. (8a, 8b)
- Recommend priorities and grants on higher education and research. (8c)
- Set minimum standards for programs and institutions, and enforce them. (8d)
- Monitor and evaluate performance of programs and institutions, and impose sanctions. (8e)
- Identify, support and develop potential centers of excellence. (8f)
- Recommend budgets of public institutions and guidelines for their income use. (8g)
- Rationalize programs and institutions, and set standards for creation of new ones. (8h)
- Develop criteria for allocating additional resources like research grants and scholarships. (8i)
- Direct or redirect purposive research to meet agro-industrialization and development needs. (8j)
- Devise and implement resource development schemes. (8k)
- Administer the Higher Education Development Fund. (8l)
- Review charters of institutions and recommend measures. (8m)
- Promulgate rules and regulations, and exercise other necessary powers and functions. (8n, 8o)

The Secretariat (Section 9):
- CHED shall organize a Secretariat headed by an executive officer.
- CHED shall fix the staffing pattern, duties, qualifications, responsibilities, functions, and compensation scheme.

The Higher Education Development Fund (Section 10):
- A Higher Education Development Fund is established for strengthening higher education.
- The Government's contribution includes:
- P500 million as seed capital (10a1)
- P50 million for initial operation of CHED (10a2)
- 40% annual share of total gross collections of travel tax (10a3)
- 30% share of collections from Professional Registration Fee (10a4)
- 1% of gross sales of PCSO lotto operation (10a5)
- Government financing institutions may contribute 3-5% of their unimpaired surplus. (10b)
- The Fund shall have a private portion raised from donations, gifts, and conveyances. (10c)

Management and Administration of the Fund (Section 11):
- The Fund shall be administered by CHED.
- CHED shall appoint a reputable government financial institution as portfolio manager.
- Guidelines for use of the Fund include:
- Seed capital and earnings shall not be used for overhead expenses. (11a)
- Only earnings of private contributions shall be used for administrative expenses. (11b)
- CHED shall appoint a separate staff for the Fund. (11c)
- The Fund shall be utilized equitably according to regions and programs. (11d)

The Technical Panels (Section 12):
- CHED shall reconstitute and/or organize technical panels for different disciplines/program areas.
- The panels shall assist CHED in setting standards and in program and institution monitoring and evaluation.
- The panels shall be composed of senior specialists or academicians appointed by CHED.

Guarantee of Academic Freedom (Section 13):
- Academic freedom of universities and colleges shall not be limited, except for:
- Minimum unit requirements for specific academic programs
- General education distribution requirements
- Specific professional subjects stipulated by licensing entities
- No academic or curricular restriction shall be made upon private educational institutions not required for chartered state colleges and universities.

Accreditation (Section 14):
- CHED shall provide incentives to institutions whose programs are accredited or whose needs are for accreditation purposes.

Tax Exemptions (Section 15):
- Donations, contributions, bequests, and grants to CHED shall be allowable deductions from the donor's income for income tax purposes and shall be exempt from donor's tax.

Authority (Section 16):
- CHED shall exercise necessary authority within its premises or areas of operation to carry out its powers and functions.
- CHED may seek assistance from other government agencies for implementation.

Appropriation (Section 17):
- P500 million is authorized for the seed capital of the Fund.
- P50 million is authorized for the initial operation of CHED.
- Funds for the current year for the Bureau of Higher Education and degree-granting programs of the Bureau of Technical-Vocational Education, including related budgetary items, shall be transferred to CHED.
- Necessary funds shall be included in the General Appropriations Act.

Transitory Provisions (Section 18):
- Personnel, properties, assets, liabilities, functions and responsibilities of the Bureau of Higher Education and other entities with similar functions shall be transferred to CHED.
- CHED shall have the authority to appoint its own personnel.
- Transferred employees shall not suffer loss of seniority, rank or emoluments.
- Employees not transferred shall be reassigned by DECS or given benefits under existing laws.
- Jurisdiction over DECS-supervised or chartered state-supported post-secondary degree-granting vocational and technical programs and tertiary institutions shall be transferred to CHED.
- A transitory body is created to facilitate the complete and full operation of CHED within 3 months after the effectivity of the Act.

Repealing Clause (Section 19):
- All laws, presidential decrees, executive orders, rules and regulations inconsistent with this Act are repealed or modified accordingly.

Separability Clause (Section 20):
- If any part of this Act is held unconstitutional or invalid, other provisions not affected shall continue to be in full force and effect.

Effectivity (Section 21):
- This Act shall take effect upon its approval.