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.