Philippine Entrepreneurs Academy Act

Senate Difice of the excretarp TWENTIETH CONGRESS OF THE REPUBLIC OF THE PHILIPPINES First Regular Session 26 JAN 27 P1:59 SENATI RECEIVED BY: 5. No. 1701 Introduced by Senator MARK A. VILLAR AN ACT ESTABLISHING THE PHILIPPINE ENTREPRENEURS' ACADEMY AND APPROPRIATING FUNDS THEREFOR EXPLANATORY NOTE The Philippine mindset had already shifted from employment to engaging into business. Filipino entrepreneurs are significant drivers of the Philippine economy, with eighty-one percent (81%)' preferring to own their ventures, provided that they are in possession of necessary knowledge on the workings of establishing a business. However, many Filipinos had, after starting their engagement, withdrawn from the business and suffered financial drawbacks. This issue is not due to the lack of capability of Filipinos to do business but because of the lack of knowledge on sustaining its operations when encountering corporate risk or loss, improving services, and maintaining or increasing sales, among others. A research by the Philippine Institute for Development Studies (PIDS) likewise concluded that businesses fail due to the challenge of navigating the complex corporate needs of a business to thrive. The government must develop a scheme to support the growing business sector of the country, especially for Micro, Small and Medium Enterprises (MSMEs) which are considered to be the backbone of the economy. Primarily, there must be an institution that will provide professional and quality education to support Filipinos already starting a business and those planning to start one. Thus, this bill seeks to create a Philippine Entrepreneur Academy for purposes of mentoring entrepreneurs engaged in MSMEs. This will increase the interest of Filipinos to start their own business and develop potential livelihood. The Philippine 'Based from a 2022 survey of OCTA Research

Entrepreneurship will offer undergraduate and graduate programs, short term technical-vocational and non-degree courses, and modular training, including in the fields of agriculture, trade, technology and manufacturing. The curriculum and modules of the academy will be designed and developed according to the competency- based curriculum mode mandate of the Act. With this, non-formal entrepreneurship programs and short-term technical- vocational courses of government agencies will also be formalized and integrated into the educational system. In view of the foregoing, immediate passage of the bill is earnestly sought. MARK A. VILLAR ROC

Senate & Office of the scaretaup TWENTIETH CONGRESS OF THE REPUBLIC OF THE PHILIPPINES First Regular Session 26 JAN 27 P1:59 SENATE RECEIVED BY: S. No. 1701 Introduced by Senator MARK A. VILLAR AN ACT ESTABLISHING THE PHILIPPINE ENTREPRENEURS' ACADEMY AND APPROPRIATING FUNDS THEREFOR Be it enacted by the Senate and House of Representatives of the Philippines in Congress assembled:

Section 1. Short Title. - This Act shall be known as the "Philippine

2 Entrepreneurs Academy Act."

Sec. 2. Philippine Entrepreneurs Academy. - There is hereby established a

4 learning institution, under the supervision of the Commission on Higher Education 5 (CHED), to be known as the "Philippine Entrepreneurs Academy", hereinafter referred 6 to as the Academy.

Sec. 3. General Mandate. - The Academy shall provide undergraduate and

8 graduate degree programs, short-term technical-vocational non-degree courses, and 9 modular training programs within its area of competency and specialization, pursuant to the mandates of the Academy. The Academy shall also perform the following; (a) Enhance the core competencies of individuals on entrepreneurship; (b) Cater to the needs of technical-vocational, undergraduate and graduate students; (c) Promote the relevance of entrepreneurship to job generation and sustainable economic growth of the country; (d) Formalize and integrate, under a school system, the nonformal entrepreneurship programs and short-term technical-vocational courses of the

Technical Education and Skills Development Authority (TESDA), Department of Trade and Industry (DTI), Department of Science and Technology (DOST), and other government agencies concerned; (e) Provide education, consultancy and extension services; (f) Supervise publication on entrepreneurship; (g) Conduct scientific and policy-oriented research and training; and (h) Perform other interventions as may be formulated by its Board of Trustees.

Sec. 4. Curricular Offerings. - The Academy shall offer undergraduate and

9 graduate degree programs and short-term diploma or certificate courses on 10 entrepreneurship, including entrepreneurship development in the fields of agriculture, 11 trade, technology, and manufacturing: Provided, That the design for the curriculum 12 and modules to be used in programs and courses offered by the Academy shall adopt 13 a competency-based curriculum model and shall be in accordance with the mandate 14 and objectives of this Act.

Sec. 5. School Sites. - The Academy shall have two (2) campuses, with the

main campus to be established in the Clark Freeport and Special Economic Zone located in the Provinces of Pampanga and Tarlac, to be known as the "Philippine Entrepreneurs' Academy Main Campus-Clark". The other campus shall be located in the City of Baguio, to be known as the "Philippine Entrepreneurs' Academy-Baguio City Campus". Other campuses may be established by the Academy upon approval of its governing board.

Sec. 6. Governing Board. - The governing board of the Academy shall be the

Board of Trustees, hereinafter referred to as the Board, which shall be chaired and co-chaired by the Chairperson of the CHED, and the President of the Academy, respectively, with the following as members: (a) Chairperson of the Committee on Higher, Technical and Vocational Education of the Senate; (b) Chairperson of the Committee on Higher and Technical Education of the House of Representatives; (c) Secretary of Agriculture; (d) Secretary of Socioeconomic Planning; (e) Secretary of Science and Technology;

(f) Secretary of Trade and Industry; (g) Director General of the TESDA; (h) President of the Federation of Faculty Associations of the Academy; (i) President of the Federation of Student Councils of the Academy; (j) President of the Federation of Alumni Associations of the Academy; and (k) Three (3) prominent citizens from the private sector who have distinguished themselves in their professions or fields of specialization to be appointed by the President of the Philippines upon the recommendation of the Board: Provided, That they shall serve a term of two (2) years. The members of the Board shall not receive any compensation or remuneration for their services as such, but may be reimbursed for actual and necessary expenses incurred in discharging the business of the Academy.

Sec. 7. Powers and Duties of the Board. - The Board shall be the highest policy

making body of the Academy. In addition to its general powers of administration and the exercise of all the powers granted to the Board of a corporation under existing laws, the Board shall have the following specific powers and duties: (a) Promulgate and implement policies in accordance with the declared State policies and pertinent provisions of the Constitution, the provisions of this Act, and the policies, standards, guidelines and thrusts of the CHED; (b) Adopt rules and regulations as may be necessary to carry out the purposes and functions of the Academy and to effectively discharge its responsibilities; (c) Receive assistance from any legitimate source to augment the internal sources of funds and to support the Academy in carrying out the purposes and functions of the Academy in accordance with relevant laws, rules and regulations; (d) Constitute the Board, as herein defined; (e) Appoint the President, and as many Vice Presidents as may be necessary to assist the President in the administration of the affairs of the Academy; (f) Conduct periodic review of the administrative procedures and programs of the Academy; (g) Receive, in kind and in trust, legacies, gifts and donations of real and personal properties of all kinds, and to administer and dispose the same when

necessary for the benefit of the Academy, subject to limitations, discretions and instructions of the donors, if any, and in accordance with relevant laws, rules and regulations; (h) Fix the tuition fees and other school charges such as matriculation fees, graduation fees, laboratory fees, and other miscellaneous fees as the Board may deem proper to impose after due consultations with the involved sectors: Provided, That these fees shall not be prohibitive or unreasonable as to deviate from the purpose for which the Academy was created. The fees and charges collected by the Academy, including government subsidies and proceeds from other income sources, as well as interests that would accrue therefrom, shall be retained by the Academy: Provided, That in no case shall the said income be used for the payment of allowances and other benefits not authorized by law: Provided, further, That all fiduciary fees shall be disbursed for the specific purposes for which they were collected. If the Academy, for reasons beyond its control, would not be able to pursue any project for which funds have been appropriated and allocated under its approved program of expenditures, the Board may authorize the use of said fund for any reasonable purpose for which it deems necessary and urgent for the attainment of the objectives of the Academy: Provided, That funds collected from students for specific purposes shall not be realigned or reprogrammed to other expenditures; (i) Adopt and implement a socialized tuition scheme for greater access of poor, but deserving students in accordance with Republic Act No. 10931 or the "Universal Access to Quality Tertiary Education Act"; (j) Authorize the construction or repair of its buildings, machineries, equipment, and other facilities, as well as the purchase and acquisition of real and personal properties, including the necessary supplies, materials, and equipment; (k) Appoint, upon the recommendation of the President of the Academy, the deans, executive directors, heads of departments, faculty members, and other officials and employees; (I) Prescribe the salaries of faculty members and administrative officials and employees, subject to the provisions of Republic Act No. 11466, otherwise

known as the "Salary Standardization Law of 2019" and by such other laws amendatory thereto which may hereinafter be enacted, civil service rules and regulations governing hours of service and other related concerns, and other pertinent laws, rules and regulations; (m) Formulate and implement the curricula and institutional programs of the Academy; (n) Formulate and promulgate the rules of discipline for the students of the Academy to ensure orderly and effective governance thereof; (o) Set policies on admission and graduation of students; (P) Award honorary degrees upon persons in recognition of outstanding contribution in the field of entrepreneurship, education, public service, arts, science and technology, or any field of specialization within the academic competence of the Academy and to authorize the issuance of certificates of completion of non-baccalaureate programs and nontraditional or innovative courses: Provided, that the award of honorary degree and the issuance of certificates of completion shall conform with the applicable policies, standards and guidelines of the CHED and TESDA; (q) Establish research and extension centers of the Academy where such will promote the development of the latter; (r) Establish professorial chairs in the Academy and provide fellowships for qualified faculty members and scholarships to deserving students; (s) Enter into any agreements or joint ventures with business and industry for the profitable management of the economic and manpower assets of the Academy: Provided, That the proceeds from such agreements or joint venture shall be used for the upgrading and development of the facilities of the Academy; (t) Authorize an external management audit of the Academy, to be financed by the CHED, subject to the rules and regulations of the Commission on Audit, and institute reforms, including academic and structural changes, on the basis of the audit results and recommendations; (u) Import economic, technical, and cultural books and publications;

(v) Develop consortia, academe-industry linkages and other forms of networks with other institutions and agencies, both public and private, local and foreign: Provided, That these institutional linkages shall comply with the applicable policies, standards and guidelines of the CHED; (w) Appoint experts and specialists as consultants, or visiting or exchange professors, scholars, researchers, as the case may be: Provided, That such appointments shall conform with the policies, standards and guidelines of CHED; (x) Set up the adoption of modern and innovative modes of transmitting knowledge for the promotion of greater access to education, inciuding, but not limited to, the use of information technology, the dual training system, open distance learning, and community laboratory; (y) Outsource, where most advantageous to the institution, the management of non-academic services such as health, food, building or grounds or property maintenance and similar services and undertaking; (z) Delegate any of its powers and duties to the President or the other officials of the Academy, as it may deem appropriate, so as to expedite the administration of the affairs of the Academy; (aa) Extend the term of the President of the Academy beyond the age of retirement, when deemed meritorious due to outstanding performance, but not beyond the age of seventy (70) years; and (bb) Promulgate rules and regulations, as may be necessary, to carry out the purposes and functions of the Academy.

Sec. 8. President of the Academy. - The President of the Academy shall be the

chief academic officer, head of the faculty and the chief executive officer of the Academy. The President shall render full-time service and shall be appointed by the Board, subject to the guidelines, qualifications, and standards set by the Board, and upon the recommendation of a duly constituted Search Committee, for a term of four (4) years, eligible for reappointment for another term. Within six (6) months before the expiration of the term of office of the incumbent President of the Academy, the Board shall constitute the Search Committee for the Presidency.

The President shall receive such compensation and remuneration in accordance with Republic Act No. 11466 or the "Salary Standardization Law of 2019" ", and by such 3 other laws amendatory thereto, which may hereinafter be enacted, and shall be comparable to that being received by the Presidents of similar educational institutions. The President shall exercise the following powers and duties: (a) Submit, for the consideration of the Board and the Executive Committee, the policies and measures which are necessary to carry out the purposes of the Academy; (b) Recommend, coordinate, and administer the programs and projects of the Academy; (c) Direct and supervise the operations and internal administration of the Academy, and delegate administrative responsibilities in accordance with the rules and regulations of the Academy; (d) Submit an annual report to the Board setting forth the accomplishments of the Academy during the year, its financial operations and status, and a program and budget for the ensuing year; and (e) Exercise other powers and discharge other functions, as may be vested by the Board and the Executive Committee. The Board shall designate an Officer-In-Charge (OIC) of the Academy in case of vacancy in the Office of the President by reason of death, compulsory retirement, resignation, removal for cause or incapacity of the President to perform the functions of the office, pending the appointment of a new President: Provided, That the OIC shall only serve the unexpired portion of the term. The powers and duties of the President of the Academy, in addition to those provided in this Act, shall be those usually pertaining to the Office of the President of similar educational institutions, and those delegated by the Board.

Sec. 9. Executive Committee. — There shall be an Executive Committee

consisting of the President of the Academy and four (4) other members to be elected by the Board from its members. Each Member of the Executive Committee, other than the President of the Academy, shall hold office for a term of two (2) years, and shall be eligible for re-election, unless at the time of election, a shorter term is specified.

1 The Board shall elect the Chairperson of the Executive Committee from the 2 membership of the Board.

Sec. 10. Functions of the Executive Committee. - The Executive Committee

4 shall administer the affairs of the Academy in accordance with such functions, powers 5 and responsibilities as may be delegated by the Board.

Sec. 11. Government Support and Coordination. - The CHED Chairperson is

7 hereby authorized to call upon any department, bureau, agency or instrumentality of 8 the government for such assistance as may be necessary for the effective 9 implementation of this Act.

Sec. 12. Compliance with the Requirements of CHED and TESDA. - The

11 Academy, prior to its establishment and the offering of new and revised courses and 12 programs related thereto, shall ensure compliance with the applicable policies, 13 standards and guidelines of CHED and TESDA.

Sec. 13. Suppletory Application. - The provisions of Republic Act No. 8292,

15 Otherwise known as the "Higher Education Modernization Act of 1997", shall form part 16 of this Act.

Sec. 14. Exemptions from Taxes and Duties. - The importation of economic,

18 technical and cultural books and publications, which are for the economic, technical, 19 vocational, scientific, philosophical, historical or cultural purposes of the Academy 20 shall, upon the issuance of certification by the CHED, be exempt from customs duties in accordance with the provisions of Republic Act No. 10863, otherwise known as the 22 "Customs Modernization and Tariff Act". All grants, bequests, endowments, donations and contributions made to the Academy, to be used actually, directly and exclusively for its programs, projects, and activities, shall be exempt from donor's tax and the same shall be considered as allowable deductions from the gross income in the computation of the income tax of the donor, in accordance with the provisions of the National Internal Revenue Code of 1997, as amended.

Sec. 15. Appropriations. - The amount necessary for the effective

implementation of this Act shall be included in the annual general appropriations or be. local appropriation ordinances, as the case may

Sec. 16. Implementing Rules and Regulations. - Within sixty (60) days from

1 the effectivity of this Act, CHED shall, in consultation with TESDA, DTI, Department of 2 Budget and Management and University of the Philippines - Institute for Small Scale 3 Industries, promulgate the rules and regulations to effectively implement the provisions of this Act.

Sec. 17. Separability Clause. - If any provision or part hereof is declared

6 unconstitutional, the remainder of this Act or any provision not affected thereby shall 7 remain in full force and effect.

Sec. 18. Repealing Clause. - All laws, acts, decrees, executive orders, issuances,

9 and rules and regulations or parts thereof which are contrary to and inconsistent with 10 this Act are hereby repealed, amended or modified accordingly.

Sec. 19. Effectivity. - This Act shall take effect immediately following its

publication in the Official Gazette or in at least two (2) newspapers of general circulation. Approved,