R.a7722

R.A.7722- ―Higher Education
Act of 1994‖.
AN ACT CREATING THE COMMISSION ON HIGHER
EDUCATION,
APPROPRIATING FUNDS THEREFOR AND FOR OTHER
PURPOSES

DEFINITION OF TERMS
 CHED
an attached agency to the Office of the President for administrative
purposes, is headed by a chairman and four commissioners, each having
a term of office of four years.
is responsible in the formulation and implementation of policies, plans and
programs for the development and efficient operation of the higher
education system in the country. The delivery of higher education in the
Philippines is provided by private and public higher education institutions
(HEIs).
 Private HEIs
are established under the Corporation Code and are governed by special
laws and general provisions of this Code. Those under non-sectarian are
duly incorporated, owned and operated by private entities that are not
affiliated to any religious organization while those under sectarian are
usually non-stock, non-profit, duly incorporated, owned and operated by a
religious organization.
Generally, private HEIs are covered by the policies, standards and
guidelines (PSGs) set by CHED in terms of program
offerings, curriculum, administration and faculty academic
qualifications, among others. Officials or owners of private HEIs usually
manage their internal organizations and implement the PSGs formulated
by CHED.

DEFINITION OF TERMS
• Public Higher Education Institutions
– The State Universities and Colleges (SUCs) are chartered
public higher education institutions established by
law, administered and financially subsidized by the
government. SUCs have their own charters. The Board of
Regents (BOR) for state universities and a Board of Trustees
(BOT) for state colleges maintain the formulation and approval
of policies, rules and standards in SUCs. The Chairman of
CHED heads these boards. However, CHED Order No. 31
series of 2001 of the Commission en banc, also authorizes
CHED Commissioners to head the BOR/ BOT of SUCs.
Implementation of policies and management are vested on the
president, staff, and support units of the public higher
education institutions.

• The local universities and colleges (LUCs)
– are those established by the local government through
resolutions or ordinances. LUCs are financially supported by
the local government concerned. A CHED Supervised
Institution (CSI) is non-chartered public post-secondary
education institution established by
law, administered, supervised and financially supported by
government. Other government schools (OGS) are public
secondary and post-secondary education institutions, usually
technical-vocational education institutions that offer higher
education programs. Special HEIs are directly under the
government agency stipulated in the law that created them.
They provide specialized training in areas such as military
science and national defense.

SEC. 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, the 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. 4. Composition of the
Commission.
Ex officio chairman of the
Commission (DepEd Sec) One
year period appointed by President
Chairman of the Commission
Commissioner1 Commissioner2 Commissioner3
Commissioner
4

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
successor shall be appointed by
the President of the Philippines but
only for the unexpired portion of
the term.
Ex officio chairman of the Commission (DepEd Sec)
One year period appointed by President
Chairman of the Commission (4 years )
Commissioner1 (3years) Commissioner2(3years) Commissioner3(2 years) Commissioner 4(2 years)

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.
For The
Board of
Advisers
shall be
composed
of the
following(9)
• 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;

Cont’d
 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;

Cont’d
 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.ch

Sec. 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.cralaw
(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. chan robles virtual law
library
(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.chanrobles virtual law library

SEC. 11. Management and Administration of
the Higher Education Development Fund. -
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.

• Sec. 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.

• Sec. 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.chanrobles
virtual law library

• Sec. 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.

• Sec. 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.

• Sec. 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.cralaw

• Sec. 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.

• Sec. 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.cralaw
• The Commission shall have the authority to appoint its own personnel.cralaw
• 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.cralaw
• 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).cralaw
• 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.cralaw

• Sec. 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. chan robles virtual law library
• 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

REFERENCES
• http://www.ched.gov.ph/chedwww/index.p
hp/eng/Information/CHED-
Publications/Republic-Act-7722
• http://www.ched.gov.ph/chedwww/index.p
hp/eng/Information
• http://www.unesco.org/education/wef/c
ountryreports/philippines/rappport_1.ht
ml

Thank you!...........
• R.A. 7722
• Prepared by:
• Mr. Boyet B. Aluan
MAED Mg’t

R.a7722

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R.a7722