Title
Creation of Commission on Higher Education
Law
Republic Act No. 7722
Decision Date
May 18, 1994
The Higher Education Act of 1994 establishes the Commission on Higher Education as an independent entity responsible for promoting affordable quality education in the Philippines, while also establishing the Higher Education Development Fund to provide financial support for higher education institutions and programs.

Law Summary

Declaration of Policy

  • The State shall protect and promote affordable quality education at all levels.
  • Ensures accessibility of education and academic freedom.
  • Promotes intellectual growth, leadership development, and enrichment of cultural heritage.
  • State-supported institutions to align programs with national, regional, and local development.
  • All higher education institutions to exemplify dignity and beauty in academic life.

Creation and Independence of the Commission on Higher Education (CHED)

  • CHED is created as an independent body separate from DECS.
  • Attached to the Office of the President for administrative purposes only.
  • Covers both public and private higher education institutions and degree-granting post-secondary programs.

Composition of CHED

  • Comprised of five full-time members.
  • Transition period: Secretary of Education may be ex officio chairman for one year.
  • Subsequent appointments by the President include a Chairman and four commissioners.
  • Commissioners must have earned doctorates, 10 years in higher education, no recent elective candidacy.
  • Must be officials of high professionalism and integrity, from distinct academic specializations.
  • Commissioners cannot designate representatives to act on their behalf.

Term of Office

  • Chairman and commissioners serve a 4-year term with possible one reappointment.
  • Initial appointments staggered: chairman (4 years), two commissioners (3 years), two commissioners (2 years).
  • Members serve until successors qualify.
  • Successors appointed only for unexpired term if vacancy occurs.

Rank and Emoluments

  • Chairman has rank of Department Secretary; commissioners rank of Undersecretaries.
  • Receive corresponding compensation and are subject to related disqualifications.

Board of Advisers

  • Composed of key government officials and representatives from accrediting bodies.
  • Meets at least annually to support CHED in policy alignment with national development.
  • Includes Secretary of Education (chair), NEDA Director-General, other secretaries, presidents of FAAP and FAPE.
  • Two additional members may be appointed by the President on CHED recommendation.

Powers and Functions of CHED

  • Formulate and recommend development plans, policies, priorities, and programs for higher education and research.
  • Recommend priorities and grants to executive and legislative branches.
  • Set and enforce minimum standards for programs and institutions after expert panel reviews and public hearings.
  • Monitor and evaluate institutions for incentives or sanctions including subsidy withdrawal and program closure.
  • Identify and develop centers of excellence.
  • Recommend budgets and guidelines for public institutions.
  • Rationalize programs and institutions; set standards for new creations, conversions, or elevation of schools.
  • Develop criteria for allocating additional resources without diminishing fiscal autonomy.
  • Direct purposive research aligned with national development goals.
  • Implement resource development and manage the Higher Education Development Fund.
  • Review and recommend changes to institution charters and governing bodies.
  • Promulgate necessary rules and exercise additional powers as needed.

Secretariat

  • CHED shall organize an executive-led secretariat.
  • Staffing, duties, qualifications, and compensation determined by the secretariat and approved by CHED.
  • Secretarial staff appointed upon executive officer recommendation.

Higher Education Development Fund (HEDF)

  • Established exclusively for strengthening higher education nationwide.
  • Fund sources include seed capital (P500 million), initial Commission operations (P50 million), portions of travel tax, professional registration fees, and PCSO lotto sales.
  • Government financial institutions may contribute 3-5% of prior year’s unimpaired surplus.
  • Private contributions may be accepted as donations, gifts, or services.

Management and Administration of the HEDF

  • Administered by CHED with a reputable government financial institution as portfolio manager.
  • Guidelines prohibit using seed capital or earnings for overhead.
  • Earnings from private contributions may be used for administrative expenses unless restricted.
  • An independent staff separate from CHED Secretariat manages the Fund.
  • Fund utilization to be equitable by region and program.

Technical Panels

  • CHED shall reorganize or establish panels of senior specialists for disciplines/programs.
  • Panels assist in setting standards and monitoring.

Academic Freedom

  • Academic freedom of universities and colleges is guaranteed.
  • Curricular freedom is only limited by CHED for minimum unit requirements, general education distribution, and professional subject requirements set by licensing bodies.
  • Private educational institutions not subject to curricular restrictions unless state-chartered.

Accreditation

  • CHED shall incentivize institutions with accredited programs and those seeking accreditation.

Tax Exemptions

  • Donations and grants to CHED are deductible from donor income taxes and exempt from donor tax, subject to National Internal Revenue Code conditions.

Authority and Enforcement

  • CHED may exercise necessary authority within its jurisdiction.
  • May seek assistance from other government entities.

Appropriations

  • Seed capital (P500 million) and initial operation funds (P50 million) appropriated.
  • Existing budgets for higher education bureaus transferred to CHED.
  • Subsequent funding included in the General Appropriations Act.

Transitory Provisions

  • Transfer of personnel, assets, liabilities, functions from Bureau of Higher Education and other entities to CHED.
  • CHED empowered to appoint its personnel with job security guarantees.
  • Jurisdiction over degree-granting vocational and technical programs transferred to CHED.
  • A transitory body composed of government and education sector representatives to oversee full operation and transitions.
  • Transition period limited to three months after the Act’s effectivity.

Repealing Clause

  • Laws and orders inconsistent with this Act are repealed or modified accordingly.

Separability Clause

  • If any provision is declared unconstitutional or invalid, other provisions remain effective.

Effectivity

  • Act takes effect upon approval.

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