Higher Education Governing Boards Act

State policy and purpose

The State policy is to establish, maintain, and support a complete, adequate and integrated system of education relevant to the needs of the people and society. (Section 2)
The composition of the governing boards of chartered state universities and colleges is modified to achieve a more coordinated and integrated system of higher education. (Section 2)
The composition is modified to render governing boards more effective in formulating and implementing policies on higher education. (Section 2)
The composition is modified to provide more relevant direction in higher education governance. (Section 2)
The composition is modified to ensure enjoyment of academic freedom guaranteed by the Constitution. (Section 2)

Governing boards and membership rules

The governing body of state universities and colleges is vested in the Board of Regents for universities and the Board of Trustees for colleges. (Section 3)
Each governing board includes the Chairman of the Commission on Higher Education (CHED) as Chairman, the President as Vice Chairman, and the Chairmen of the Congressional Committees on Education and Culture. (Section 3)
The board includes the Regional Director of the National Economic and Development Authority (NEDA) where the main campus is located. (Section 3)
The board includes a regional representative based on the institution type: Regional Director of DOST for science and technological colleges; Regional Director of DA for agricultural colleges; or the Secretary of Education for an Autonomous Region. (Section 3)
For the Board of the Philippine State College of Aeronautics, the Act provides that the commanding general of the Philippine Air Force sits as a member, and for the Philippine Merchant Marine Academy, the commanding general of the Philippine Navy sits as a member, in lieu of the mentioned representation. (Section 3)
The board includes the President of the faculty association and the President of the supreme student council or the student representative elected by the student council. (Section 3)
If there is no student council president or elected student representative, the university or college must schedule one (1) week for the campaign and election of a student representative. (Section 3)
The board includes the President of the alumni association of the institution concerned. (Section 3)
The board includes two (2) prominent citizens who have distinguished themselves in their professions or fields of specialization, selected from a list of at least five (5) persons qualified in the city or province where the school is located, as recommended by a search committee constituted by the President in consultation with the CHED Chairman. (Section 3)
In multi-campus universities and colleges, the faculty and student council are represented by the president of their respective federations. (Section 3)
Private sector representatives are appointed by the Board of Regents/Trustees upon recommendation of a duly constituted search committee. (Section 3)

Terms, meetings, quorum, and compensation

The presidents of the faculty and alumni associations and the student regents or trustees sit in the board until the expiration of their term of office in those capacities. (Section 3)
The prominent citizens serve a term of two (2) years. (Section 3)
The governing board must regularly convene at least once every quarter. (Section 3)
The Chairman may call a special meeting whenever necessary, provided that members are notified in writing at least three (3) days prior. (Section 3)
A majority of all members holding office constitutes a quorum, provided that the Chairman of the CHED who is the chairman of the board or the president of the university or college is among those present. (Section 3)
If the Chairman of the CHED is absent, a CHED Commissioner designated by him represents the CHED Chairman with all rights and responsibilities of a regular member. (Section 3)
In the specified meeting structure, the president of the university or college as vice chairman presides. (Section 3)
The CHED Chairman is authorized to designate a CHED Commissioner as the regular chair for a particular university or college, in which case that CHED Commissioner acts as the presiding officer. (Section 3)
Board members serve without compensation, but they are reimbursed for necessary expenses incurred in attendance of meetings or in connection with official business authorized by board resolution. (Section 3)

Powers and duties of governing boards

Governing boards have specific powers and duties in addition to their general corporate powers, including the powers granted to a corporation’s board of directors under Section 36 of Batas Pambansa Blg. 68 (Corporation Code of the Philippines). (Section 4)
Governing boards must have power to enact rules and regulations not contrary to law necessary to carry out purposes and functions of the university or college. (Section 4)
Governing boards must have power to receive and appropriate all sums provided for support of the university or college, in the manner determined by the board. (Section 4)
Governing boards may receive in trust legacies, gifts, and donations of real and personal properties of all kinds, administer and dispose them when necessary for the benefit of the institution, and do so subject to donor limitations and directions, if any. (Section 4)
Donations to the institution under these powers are exempt from all taxes and are treated as deductible items from the income tax of the donor. (Section 4)
The rights, privileges, and exemptions extended by the Act are extended to non-stock, nonprofit private universities and colleges. (Section 4)
The same privileges are extended to city colleges and universities upon approval of the local government unit concerned and in coordination with CHED. (Section 4)
Governing boards may fix tuition fees and other necessary school charges, including but not limited to matriculation fees, graduation fees, and laboratory fees, after due consultations with involved sectors. (Section 4)
All such fees and charges, including government subsidies and other income, constitute special trust funds deposited in any authorized government depository bank, and accrued interests form part of the same fund for use of the university or college. (Section 4)
Income derived from university hospitals is exclusively earmarked for operating expenses of the hospitals. (Section 4)
Any law or regulation contrary to this Act is overridden to the extent of: income generated from tuition fees and other charges, and income from operation of auxiliary services and land grants, must be retained by the university or college and may be disbursed for instruction, research, extension, or other programs/projects. (Section 4)
Fiduciary fees must be disbursed for the specific purposes for which collected. (Section 4)
If the university or college cannot pursue an approved project for reasons beyond its control, the board may authorize use of the funds for any reasonable purpose necessary and urgent for attainment of the institution’s objectives and goals. (Section 4)
Governing boards must have authority to adopt and implement a socialized scheme of tuition and school fees for greater access to poor but deserving students. (Section 4)
Governing boards may authorize construction or repair of buildings, machineries, equipment, other facilities, and purchase or acquisition of real and personal properties, including necessary supplies and materials and equipment. (Section 4)
Purchases and other transactions entered into by the university or college through the governing board are exempt from all taxes and duties. (Section 4)
Governing boards appoint, upon recommendation of the president, vice presidents, deans, directors, heads of departments, faculty members, and other officials and employees. (Section 4)
Governing boards fix and adjust salaries of faculty and administrative officials and employees subject to the revised compensation and classification system and other pertinent budget and compensation laws governing hours of service and other duties and conditions. (Section 4)
Governing boards grant leaves of absence to faculty and personnel under regulations they promulgate, despite provisions of existing law to the contrary. (Section 4)
Governing boards may remove officials and employees for cause in accordance with requirements of due process of law. (Section 4)
Governing boards approve curricula, institutional programs, and rules of discipline drawn by the administrative and academic councils as provided by the Act. (Section 4)
Governing boards set policies on admission and graduation of students. (Section 4)
Governing boards award honorary degrees to persons recognized for outstanding contribution in education, public service, arts, science and technology, or any field of specialization within the academic competence of the university or college. (Section 4)
Governing boards authorize the award of certificates of completion of nondegree and nontraditional courses. (Section 4)
Governing boards may absorb non-chartered tertiary institutions within their respective provinces in coordination with CHED and in consultation with the Department of Budget and Management, and offer needed programs or courses to promote and carry out equal access to educational opportunities mandated by the Constitution. (Section 4)
Governing boards may establish research and extension centers where such promotes development of the latter. (Section 4)
Governing boards may establish chairs and provide fellowships for qualified faculty members and scholarships to deserving students. (Section 4)
Governing boards may delegate any of their powers and duties to the president and/or other officials to expedite administration. (Section 4)
Governing boards may authorize an external management audit financed by CHED and institute reforms, including academic and structural changes, based on the audit results and recommendations. (Section 4)
Governing boards may collaborate with other governing boards of state universities and colleges within the province or region under CHED supervision and in consultation with the Department of Budget and Management, for restructuring into more efficient, relevant, productive, and competitive institutions. (Section 4)
Governing boards may enter into joint ventures with business and industry for profitable development and management of the economic assets of the college or institution, with proceeds used for development and strengthening. (Section 4)
Governing boards may develop consortia and other linkages with local government units, institutions, and agencies—public or private, local or foreign—to further institutional purposes and objectives. (Section 4)
Governing boards may develop academic arrangements for capability building with appropriate institutions and agencies—public or private, local or foreign—and appoint experts/specialists as consultants, or visiting or exchange professors, scholars, researchers. (Section 4)
Governing boards must be empowered to set up adoption of modern and innovative modes of transmitting knowledge, including the use of information technology, dual system, open learning, and community laboratory, to promote greater access to higher education. (Section 4)
Governing boards may establish policy guidelines and procedures for participative decision-making and transparency within the institution. (Section 4)
Governing boards may privatize, where most advantageous, management and non-academic services such as health, food, building or grounds or property maintenance and similar activities. (Section 4)
Governing boards may extend the term of the president beyond the age of retirement but not later than the age of seventy (70), when performance has been unanimously rated as outstanding and there is unanimous recommendation by the search committee for the president of the institution concerned. (Section 4)

Implementation and governing administration

Governing boards must promulgate and implement policies consistent with declared State policies on education and pertinent constitutional provisions on education, science and technology, arts, culture and sports, and consistent with CHED policies, standards, and thrusts under Republic Act No. 7722. (Section 5)
Administration is vested in the university or college president, who renders full-time service. (Section 6)
The board appoints the president upon recommendation of a duly constituted search committee. (Section 6)
The president has a term of four (4) years and is eligible for reappointment for another term, without adversely affecting the terms of incumbents. (Section 6)
The president is assisted by a vice president for academic affairs, appointed by the board upon the president’s recommendation, without prejudice to appointment of more than one vice president when warranted. (Section 6)
If the president’s office becomes vacant due to death, resignation, removal for cause, or incapacity, the board designates an officer-in-charge pending appointment of a new president. (Section 6)
The president’s successor in the vacancy scenario holds office for the unexpired term. (Section 6)

Board officers and internal councils

The board appoints a secretary who serves both the board and the university or college, keeps all records and proceedings of the board, and communicates meeting notices to each board member. (Section 7)
The Treasurer of the Philippines serves as ex officio treasurer of the university or college. (Section 8)
All accounts and expenses of the university or college are audited by the Commission on Audit or its duly authorized representative. (Section 8)
The university or college has an Administrative Council consisting of the president as chairman, vice presidents, deans, directors, and other officials of equal rank as members. (Section 9)
The Administrative Council reviews and recommends to the board policies governing administration, management, and development planning for appropriate board action. (Section 9)
The university or college has an Academic Council with the president as chairman and all instructional staff with the rank of not lower than assistant professor as members. (Section 10)
The Academic Council reviews and recommends curricular offerings and rules of discipline for appropriate board action. (Section 10)
The Academic Council fixes requirements for admission and graduation and the conferment of degrees, subject to review and/or approval by the board through the president. (Section 10)

Rights, admissions, and institutional autonomy

All institutions of higher learning, public or private, enjoy academic freedom and institutional autonomy as provided by paragraph 2, Section 5 of Article XIV of the Constitution. (Section 11)
No student shall be denied admission to any university or college for reasons of sex, nationality, religion, political affiliation, or physical disability. (Section 12)

Exclusion for specific charters

The Act’s provisions do not affect the charter of the University of the Philippines System, except for chairmanship of the board. (Section 13)
The Act’s provisions do not affect the charter of Mindanao State University (MSU) except for chairmanship of the board and the membership of the Chairmen of the Congressional Committees on Education and Culture. (Section 13)

Annual reporting duty

On or before the fifteenth (15th) day of the second month after the opening of regular classes each year, the president files with the Office of the President of the Philippines through the Chairman of the CHED, and with the Senate and House of Representatives, a detailed report on progress, conditions, and needs of the university or college. (Section 14)

Implementation direction and governance continuity

The Chairman of the CHED must take steps necessary for immediate implementation of the Act. (Section 15)

Separability, repeals, and effect

If any part or provision is declared invalid or unconstitutional, the remaining parts not affected remain in full force and effect. (Section 16)
All laws, presidential decrees, executive orders, letters of instruction, and state universities and colleges charters contrary to or inconsistent with the Act are repealed or amended accordingly. (Section 17)