Transnational Higher Education Act

Case Overview and Summary

Summary of Republic Act No. 11448 (Transnational Higher Education Act)

Objectives and Policy Declaration (Section 2):
- Provide quality and relevant education to meet changing societal needs.
- Promote higher education as a tool for knowledge generation, innovation, and skills development.
- Recognize globalization's impact on borderless teaching and learning.
- Modernize Philippine higher education to international standards.
- Attract talented students, faculty, and staff to improve human resources.
- Encourage transnational higher education (TNHE) programs and internationalization.
- Strengthen educational and cultural bonds with foreign institutions.
- Develop collaborative arrangements between Philippine and foreign universities.

Definition of Terms (Section 3):
- Defines various terms related to TNHE, such as academic franchising, articulation, branch campus, distance education, double degree, education services, foreign higher education institution (FHEI), higher education, higher education institutions (HEIs), international branch campus, internationalization of higher education, joint degree, offshore, onshore, open distance learning (ODL), providing institution, TNHE, TNHE arrangement, TNHE institutions, twinning arrangement, and validation.

Strategy for TNHE (Section 4):
- The Commission on Higher Education (CHED) shall formulate a national strategy to encourage and facilitate effective TNHE programs and institutions.

Establishment of TNHE Programs (Section 5):
- TNHE programs shall be established and administered by authorized HEIs.

Types or Modes of TNHE (Section 6):
- Lists various types or modes of TNHE, including academic franchising, articulation, branch campus, international branch campus, joint degree, double degree, online/blended/distance learning, ODL, TNHE offshore institution, twinning arrangements, and validation.
- Allows CHED to add other modes or arrangements in consultation with stakeholders.

Commercial Presence of FHEIs (Section 7):
- FHEIs may engage in providing educational services in the Philippines through modes indicated in the Act or other arrangements with Philippine HEIs.
- Sets minimum standards for FHEIs, including recognition as quality providers, accreditation, standards at par with or higher than Philippine HEIs, and requisite capabilities and resources.

Partnerships and Collaborative Arrangements (Section 8):
- FHEIs may enter into collaborative arrangements with Philippine HEIs, such as twinning or joint degrees.
- Sets minimum standards for partnerships, including CHED approval, accreditation requirements for Philippine HEIs, legally binding memorandum of agreement (MOA), academic quality comparable to established standards, compliance with accreditation and quality assurance requirements, transparency, and proper authorization.
- Philippine HEI partners must be registered with the Securities and Exchange Commission (SEC) or the Department of Trade and Industry (DTI).

Establishment of Branch Campuses (Section 9):
- FHEIs may establish branch campuses in the Philippines through a local partner with at least 60% Filipino ownership.
- Allows FHEIs to incorporate a Philippine company with at least 60% Filipino voting stocks.
- Limits foreign faculty and staff to 80% and 40%, respectively, and foreign students to one-third of enrollment.

Philippine HEIs Operating Offshore (Section 10):
- Philippine HEIs operating offshore must have CHED-recognized programs, abide by host country laws, and provide support services for offshore students spending time in the Philippines.

Programs and Degrees Offered (Section 11):
- TNHEIs may offer undergraduate, graduate, and postgraduate degrees, including specialized courses as determined by CHED.
- Curricula must conform to international standards, except for top 500 world universities based on CHED-acknowledged international ranking.

Quality Assurance (Section 12):
- TNHEIs are accountable for quality assurance and control, including internal processes and cooperation with CHED or other audit and accreditation bodies.
- Top 500 world universities for three consecutive years based on CHED-acknowledged ranking are presumed compliant with international standards and exempt from standard CHED review.

Benchmarks for Ensuring Quality of TNHE (Section 13):
- Lists performance indicators for reviewing TNHEIs, including curriculum innovation, student diversity, research and development, graduation and retention rate, job placement and career services, facilities and infrastructure, faculty and faculty diversity, alumni leadership and performance, alumni participation, international linkages, grant and endowment management, and other criteria.

Creation of Transnational Higher Education Division (TNHED) (Section 14):
- Establishes the TNHED under the CHED International Affairs Staff to handle matters related to TNHEIs and programs.
- Outlines the functions of the TNHED, including policy formulation, strategy development, application processing, performance evaluation, and other necessary duties.

Role of Government Agencies (Section 15):
- Mandates concerned government agencies and local government units (LGUs) to establish mechanisms to expedite processing of applications, documents, and permits for FHEIs and authorized institutions.
- Specific directives for the SEC, LGUs, Bureau of Immigration (BI), Department of Labor and Employment (DOLE), and Professional Regulation Commission (PRC).

Tax Exemptions (Section 16):
- Exempts revenues, assets, grants, bequests, endowments, donations, and contributions of nonstock, nonprofit TNHEIs used for educational purposes from taxes and duties.
- Allows tax deductions for donors in accordance with the National Internal Revenue Code (NIRC).
- Exempts lands, buildings, and improvements used for educational purposes from taxation.

Proprietary TNHEIs (Section 17):
- Proprietary TNHEIs are subject to taxes, exemptions, and other duties and privileges under the NIRC.
- Allows TNHEIs to enjoy benefits, tax credits, and incentives provided in existing laws, including the Omnibus Investments Code and the Export Development Act.

Repatriation of Capital and Remittance (Section 18):
- Allows repatriation of capital and remittance of dividends, profits, and earnings from foreign investments in TNHEIs, subject to Bangko Sentral ng Pilipinas (BSP) rules and regulations.

Labor and Management Relations (Section 19):
- Labor and management relations in TNHEIs shall be governed by existing labor laws, including the Labor Code of the Philippines and relevant DOLE issuances.

Termination of Partnership or Closure of Program (Section 20):
- In case of termination or closure, TNHEIs must ensure commitments to enrolled students are met, including offering alternative pathways for program completion.
- Allows transfer of assets and remittance of funds in accordance with Philippine laws and regulations.

Continuing Research (Section 21):
- CHED shall conduct continuing research and development on improving TNHE and internationalization of higher education for knowledge creation and revenue generation.

Appropriations (Section 22):
- Funds necessary for implementing the Act shall be charged against the current year's CHED appropriation and included in the annual General Appropriations Act.

Implementing Rules and Regulations (Section 23):
- The CHED Chairperson, with support from relevant committees and stakeholders, shall issue the implementing rules and regulations within 90 days from the Act's effectivity.

Separability Clause (Section 24):
- If any provision is declared unconstitutional, the remainder of the Act shall remain in full force and effect.

Repealing Clause (Section 25):
- All laws, acts, presidential decrees, executive orders, proclamations, or administrative regulations inconsistent with the Act are amended, modified, superseded, or repealed accordingly.

Effectivity (Section 26):
- The Act shall take effect 15 days after its publication in the Official Gazette or a newspaper of general circulation.