Republic of the Philippines
HOUSE OF REPRESENTATIVES
QUEZON CITY, METRO MANILA
Sixteenth Congress
First Regular Session

HOUSE BILLNO,__ 4412

Introduced by: Honorable Isidro T. Ungab_

EXPLANATORY NOTE

This bill seeks to create the Davao Regional State University System by integrating the
University of Southeastem Philippines, the Davao del Norte State College, the Davao
Oriental State College of Science and Technology, the Southern Philippines Agribusiness
and Marine and Aquatic School of Technology, and the Campostela Valley State College
Davao Region’s four local colleges: the Kapalong College of Agriculture, Sciences and
Technology, the Governor Generoso College of Arts, Sciences and Technology, the
Monkayo College of Arts, Sciences and Technology, and the Kolehiyo ng Pantukan shall
also be integrated in the system through the respective state colleges operating in their
respective provinces.

It is the policy of the state to promote, establish, maintain, and support a complete,
adequate, and integrated system of education relevant to the needs of the people and
society. Pursuant thereto and to Section 2 of Republic Act No. 7722, otherwise known
as the “Higher Education Act of 1994” which seeks to promote the right to accessible,
equitable and quality education, the government has developed and implemented
programs on the merger of State Universities, and Colleges (SUCs).

With the favorable conditions in the Davao Region, the Commission on Higher
Education (CHED) has identified the Region as its pilot area to implement its long-term
plan strategy of reforming higher education, through a policy of amalgamation. Such
amalgamation finds support from the Regional Development Council XI. Hence, this bill.

Integrating the SUCs into regional state university is aimed at reducing the number of
SUCS in the country. In so doing, the concentration of the budget for education will be
best addressed and monitored. Focusing the resources of the government in regional state
university systems will result in more efficient, reliable and relevant educational
institutions that will produce quality and competitive graduates. Further , integrating the
Davao SUCs and LUCs would provide a unified corporate structure that guarantees
harmonized and common academic standards, mutual recognition of academic program
quality towards a system of inter-institutional credit transfer of units earned by students,
inter-institutional collaboration in research and extension, faculty and staff training, as
well as, resource and facilities sharing.

In view of the foregoing, early approval of this bill is earnestly sought.

ISIDRO TENGAB


Republic of the Philippines
HOUSE OF REPRESENTATIVES,
QUEZON CITY, METRO MANILA

Sixteenth Congress
First Regular Session

HOUSE BILLNO,__ 4412

Introduced by Honorable Isidro T. Ungab

AN ACT

CREATING A REGIONAL STATE UNIVERSITY SYSTEM IN DAVAO
REGION TO BE KNOWN AS THE DAVAO REGIONAL STATE UNIVERSITY
SYSTEM BY INTEGRATING THE UNIVERSITY OF SOUTHEASTERN
PHILIPPINES, THE DAVAO DEL NORTE STATE COLLEGE, THE DAVAO
ORIENTAL STATE COLLEGE OF SCIENCE AND TECHNOLOGY, THE
SOUTHERN PHILIPPINES AGRIBUSINESS AND MARINE AND AQUATIC
SCHOOL OF TECHNOLOGY, AND THE CAMPOSTELA VALLEY STATE
COLLEGE AND APPROPRIATING FUNDS THEREFOR

Be it enacted by the Senate and the House of Representatives of the Philippines in
Congress assembled:

SECTION 1. Short Title. ~ This Act shall be known as the "Davao Regional
State University System Charter.”

SEC. 2. Declaration of Policy. ~ The State shall promote, foster, nurture and
protect the right to accessible, equitable and quality education. ‘Toward this end, the State
shall integrate higher educational institutions to build greater synergy among them, to
enhance their academic performance and mission, to democratize access to affordable
quality education and to create a greater critical mass for stronger efficiency and
effectiveness in operations. Integration shall promote fiscal efficiency and a broad
spectrum of academic, research, extension and production services that are harmonized
and complementary, responsive to the development needs of the region and the nation.
‘Through a refocused institutional culture and improved governance, the integrated Davao
Regional State University System shall aim to become the State’s main higher education
provider in the region.

SEC. 3. Creation of the Davao Regional State University System. ~ There is
hereby created a Regional State University System in Davao Region to be known as the
Davao Regional State University System hereinafter referred to as Regional University
System by integrating the University of Southeastern Philippines established pursuant to
Batas Pambansa Blg. 12, the Davao Del Norte State College created pursuant to Republic
‘Act No. 7879, the Davao Oriental State College of Science and Technology established


pursuant to Republic Act No. 6807, the Southern Philippines Agribusiness and Marine
and Aquatic School of Technology established pursuant to Batas Pambansa Blg. 148, and
the Campostela Valley State College established pursuant to Republic Act No. 10598,
herein referred to as the Autonomous Campuses (ACs) of the Regional University
System shall be autonomous in fiscal management, program formulation and
implementation.

On account of its extensive geographical coverage and strategic role in the
establishment of the Regional University System, the University of Southeastern
Philippines shall serve as the seat of administration of the Regional University System. It
shall be composed of two autonomous campuses, namely: (1) the Obrero-Mintal Campus
and (2) the Tagum-Mabini Campus. The Bislig Campus located in the Caraga Region
shall, at the expressed option of the constituencies of the academic unit, either be
incorporated into a future amalgamated university system in Caraga Region that may be
created or be annexed as an external campus of the most contiguous State college or
university in that region.

In furtherance of their contribution to educational excellence in public higher
education, Davao Region’s four local colleges, namely: the Kapalong College of
Agriculture, Sciences and Technology, the Governor Generoso College of Arts, Sciences
and Technology, the Monkayo College of Arts, Sciences and Technology, and the
Kolehiyo ng Pantukan, shall be integrated into the Regional University System as
autonomous campuses of the respective state colleges operating in their respective
provinces, Being products of local legislation, they shall continue to be supported by the
respective local government units that created them while participating in the system-
wide processes of the Regional University System.

The respective state and local colleges and state university may retain their
original names for historical reasons and for purposes of keeping their present identities
under the umbrella of the Davao Regional State University System.

SEC. 4. General Mandate. — The Regional University System shall provide a
unified corporate structure to guarantee common academic standards and institutional
identity. It shall foster complete unity and deep collaboration among autonomous
campuses towards the following strategic goals:

a. To create greater critical mass and economies of scale that will enable the
University System to achieve greater efficiency and effectiveness;

b. To build greater synergy among the ACs to improve the Regional University
System’s academic portfolio, boost academic performance to higher levels and enhance
teaching quality in more diverse academic disciplines;

c. To utilize governance structures more effectively by having a single
governing board that can better focus on responding to development needs and
combining disconnected academic and non-academic functions that can create additional

capacity for other appropriate pursuits; and


d. To ensure equitable allocation of all financial, human, logistical resources
among ACs and programs.

SEC. 5, Administration. ~ The Regional University System shall have the
general powers of a corporation set forth in Batas Pambansa Blg, 68, as amended,
otherwise known as “The Corporation Code of the Philippines.” The administration of
the University System and the exercise of its corporate powers shall be vested exclusively
in the Board of Regents.

SEC. 6. Governing Board. - The Governing Board of the Regional University
System shall be the Board of Regents, hereinafter referred to as the Board, which shall be

composed of the following:

a. The Chairperson of the Commission on Higher Education (CHED) or
representative, as Chairperson;

b. The President of the Regional University System, as Vice-Chairperson;

cc. The Chairperson of the Committee on Education, Arts and Culture of the
Senate;

d. The Chairperson of the Committee on Higher and Technical Education of

the House of Representativ.

e. The Chairperson of the Regional Development Couneil (RDC) XI;

f. The Regional Director of the National Economic and Development
Authority (NEDA);

g. The Regional Director of the Department of Science and Technology
(Dost);

h, The Regional Director of the Department of Agriculture (DA);
The Chancellors of the Autonomous Campuses;
The President of the Federation of faculty associations of the Regional

University System;

k. The President of the Federation of student governments of the Regional
University System;

1. The President of the Federation of alumni associations of the Regional
University System; and

m. Two (2) prominent citizens from the private sector who have distinguished
themselves in their profession or fields of specialization and are active in the dominant
industries in the region that are directly relevant to the university's need and external
affairs, as members.

The Board of Regents shall appoint the two (2) prominent citizens from among
the list of at least five (5) qualified persons who are residents of the Davao Region, as
recommended by the search committee constituted by the Regional University System
President, in consultation with the other members of the Board, based on the normal

standards and qualifications for the position.


‘The term of office of the president of the federation of faculty associations, the
president of the federation of student councils, and the president of the federation of
alumni associations shall be co-terminus with their respective terms of office, as set forth
in their respective constitutions and by-laws. The two (2) prominent citizens shall serve
for a term of two (2) years from the date of their appointment.

SEC. 7. Promulgation and Implementation of Policies. - The Board shall
promulgate and implement policies in accordance with the declared State policies on
education, including those stated in Section 2 hereof, and other pertinent provisions of the
Philippine Constitution on education, agriculture, science and technology.

SEC, 8. Powers and Duties of the Board of Regents. ~ The Board shall have the
following specific powers and duties, in addition to its general powers of administration
and the exercise of all the powers granted to the board of directors of a corporation under
existing laws:

a) Promulgate rules and regulations not contrary to law as may be necessary to
carry out the purposes and functions of the Regional University System;

b) Receive and appropriate all sums as may be provided for the support of the
Regional University System in the manner it may determine in its discretion, in order to
carry out the purposes and functions of the Regional University System;

c) Import duty-free economic, technical and cultural books or publications,
upon certification by the CHED that such books are for economic, technical, vocational,
scientific, philosophical, historical or cultural purposes, in accordance with the provisions
of the Tariff and Customs Code, as amended;

d) Receive in trust legacies, gifts and donations of real and personal properties of
all kinds and to administer and dispose of the same when necessary for the benefit of the
Regional University System, and subject to the limitations, directions and instructions of
the donor, if any.

Such donations shall be exempt from the 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 (NIRC), as amended:

Provided, That such donations shall not be disposed of, transferred or sold;

e) Fix the tuition fees and other necessary school charges, such as, but not
limited to, matriculation fees, graduation fees and laboratory fees, as the Board may deem
proper to impose, after due consultations with the involved sectors. Such fees and
charges shall, including government subsidies and other income generated by the
Regional University System, constitute special trust funds and shall be deposited in any
authorized government depository bank, and all interests that shall accrue therefrom shall
form part of the same funds for the use of the Regional University System.


Any provision of existing laws, rules and regulations to the contrary
notwithstanding, all income generated by the Regional University System from tuition
fees and other charges, as well as from the operation of auxiliary services and land grants,
shall be retained by the autonomous campuses of the Regional University System, and
may be disbursed by the Board for instruction, research, extension or other
programs or _ projects of the university: Provided, That all fiduciary fees shall be
disbursed for the specific purposes for which these are collected.

If, for reasons beyond its control, the Regional University System shall not be
able to pursue any project for which the funds have been appropriated and allocated
under its approved program of expenditures, the Board may authorize the use of said
funds for any reasonable purpose which, in its discretion, may be necessary and urgent
for the attainment of the objectives and goals of the Regional University System;

f) Adopt and implement a socialized scheme of tuition and other school fees for
greater access to poor but deserving students;

2) Authorize the construction or repair of its buildings, machinery, equipment
and other facilities, and the purchase and acquisition of real property, including necessary
supplies, materials and equipment;

h) Designate, upon recommendation of the President of the Regional University
System, the vice presidents, chancellors, deans, directors, heads of departments, faculty
members, and other officials and employees of the university;

i) Fix and adjust salaries of faculty members and administrative officials and
employees, subject to the provisions of the Revised Compensation and Position
Classification System and other pertinent budget and compensation laws governing hours
of service, and such other duties and conditions as it may deem proper; grant them at its
discretion, leaves of absence under such regulations as it may promulgate, any provision
of existing law to the contrary notwithstanding; and remove them for cause in accordance
with the requirements of due process of law;

j) Approve the curricula, instructional programs and rules of discipline drawn
by the Administrative and the Academic Councils herein provided;

k) Set policies on the minimum system-wide requirements for admission,
‘graduation of students and grant of honors;

1) Award honorary degrees upon persons in recognition of their outstanding
contribution in the fields of education, public service, arts, science and technology,
agriculture or in any field of specialization within the academic competence of the

Regional University System: Provided, That such degrees shall not be conferred in

consideration of any payment, gift or other valuable consideration;
m) Establish and absorb non-chartered tertiary institutions and establish
‘campuses, branches and centers, and LUCs within the Davao Region in coordination with

the CHED, and in consultation with the Department of Budget and Management (DBM)


and offer therein programs or courses, to promote and carry out equal access to
educational opportunities as mandated by the Constitution: Provided, That any future
public higher education institution that will be established within the region may be
automatically integrated as an autonomous campus of the Davao Regional State
University System, as may be determined by the Board;

n) Establish research and extension centers of the Regional University System
where such will promote the development of the latter;

©) Establish professorial chairs in the Regional University System and provide
fellowships for qualified faculty members and scholarships to deserving students;

p) Delegate any of its powers and duties to the president or other officials of the
Regional University System, as it may deem appropriate, so as to expedite the
administration of the affairs of the Regional University System;

q) Authorize an external management audit of the Regional University System,
subject to the rules and regulation of the Commission on Audit (COA) and institute
reforms, including academic and structural changes, on the basis of the audit results and
recommendations;

1) Collaborate with other governing boards of the State colleges and universities
‘as well as with private colleges and universities in working towards the development of
the Regional University System to become more efficient, relevant, productive and
competitive;

s) Enter into joint ventures, which may be initiated by the ACs, with business
ts of

‘and industry for the profitable development and management of the economic
the Regional University System, including land grants, the proceeds of which shall be
used for the development and strengthening of the Regional University System;

t) Develop consortia and other economic forms of linkages with local
government units (LGUs), as well as public and private institutions and agencies, local
and foreign, in the furtherance of the purposes and objectives of the Regional University
System;

u) Develop academic arrangements for institution-capability building with
appropriate institutions and agencies, public and private, local and foreign, and appoint
experts or specialists as consultants, part-time or visiting or exchange professors, scholars
or researchers, as the case may be;

vy) Set up the adoption of modern and innovative modes of transmitting
knowledge such as the use of information technology, the dual system, open learning or
distance education and community laboratory for the promotion of greater access to
education;

w) Establish policy guidelines and procedures for participative decision-making
and transparency within the Regional University System;


x) Privatize, where most advantageous to the Regional University System, the
management of non-academic services such as health, food, building or grounds or
property maintenance and such other similar activities;

y) Extend the term beyond the age of retirement but not beyond the age of
seventy (70) of the Regional University System President whose performance has been
unanimously rated by the Board as outstanding, based on the guidelines, qualifications
and standards set by the Board, after unanimous recommendation by the Performance
Evaluation Committee (PEC); and

z) Reconstitute or create additional constituent units of the Regional University
System as may be relevant at a future time.

SEC. 9. Meetings of the Board. — The Board of Regents of the Regional
University System shall regularly convene at least once every quarter. However, the
Chairperson of the Board may, upon three (3) days prior written notice, call a maximum
of four (4) special meetings within a year, whenever necessary.

All regular meetings of the Board shall be held in either the main campus or in
any of the constituent units as may be determined by the Regional University System
President in consultation with the chancellor, except for certain meritorious and expedient
reasons where special meetings may be held in venues outside the Region.

‘A quorum of the Board of Regents shall consist of a majority of all its members
holding office at the time of the meeting: Provided, That the Chairperson of the Board or
the Regional University System President is among those present in the meeting.

In the absence of the Chairperson of the CHED, a duly designated Commissioner
of the CHED shall represent the Chairperson in the meeting with all the rights and
responsibilities of a regular member: Provided, however, That during this meeting, the

Regional University System President as Vice-Chairperson shall be the presiding offic
Provided, further, That this proviso notwithstanding, the Chairperson of the CHED is
hereby authorized to designate a CHED Commissioner as the regular Chair of the Board,
in which case said CHED Commissioner shall act as the presiding officer.

In case the Chairpersons of the Congressional Committees on Education shall not
be able to attend the Board meeting, they may duly designate to attend the said meeting
their respective representatives who shall have the same rights and responsibilities as a
regular member of the Board.

‘The members of the Board shall not receive any salary but shall be entitled to
reimbursements for actual and necessary expenses incurred, either in their attendance to
meetings of the Board or in connection with other official business authorized by

resolution of the Board, subject to existing laws and regulations.


SEC. 10. Regional University System President. ~ The Regional University
System shall be headed by a full-time president who shall be appointed by the Board
subject to the guidelines, qualifications and standards set by the Board and upon
recommendation of a duly constituted search committee, The Regional University
System President shall have a term of four (4) years and shall be eligible for
reappointment for another term,

In case of vacancy in the office of the Regional University System President by
reason of death, compulsory retirement, resignation, removal for cause or incapacity to
perform the functions of the office, the Board shall have the authority to designate an
officer-in-charge of the Regional University System within six (6) months from date of
vacancy, pending the appointment of a new Regional University System President. The
Regional University System President appointed by the Board after the occurrence of any
of the aforementioned events shall serve the unexpired portion of the term, subject to re~

appointment for another term if warranted.

‘The powers and duties of the President of the Regional University System, in
addition to those specifically provided in this Act, shall be those usually pertaining to the
office of the President of similar universities.

The salary of the Regional University System President shall be in accordance
with the Revised Compensation and Position Classification System and shall be
comparable to that being received by the Presidents of similar educational institutions.

SEC. 11. Vice-President. — The Regional University System President shall be
assisted by a vice president for academic affairs, a vice president for administration and
finance and a vice president for research and extension and development, and such other
vice presidents as may be determined by the Board. They shall be designated by the
Board, upon the recommendation of the Regional University System President. They
shall serve as staff and may assume line functions upon the direction of the University
System President.

SEC. 12. Chancellor of the Autonomous Campuses. — The administration of
each Autonomous Campuses (ACs) is vested in the Chancellor subject to the limitations
as may be imposed by the Board. The Chancellors shall be designated by the Board,
upon the recommendation of the duly constituted search committee, subject to the
guidelines, qualifications or standards set by the Board.

The Chancellors shall report to the Regional University System President, and
shall perform the duties and functions that are essential or necessary for the proper and
convenient administration and transaction of the business and affairs of their respective
ACs, subject to the policies and rules prescribed by the Board. The Board shall
determine the term and compensation of the Chancellor.

SEC, 13. Secretary of the University and of the Board. ~ There shall be a
Secretary of the Regional University System appointed by the Board, who shall also be
the Secretary of the Board in all its meetings, and who shall keep such records of the
University as may be designated by the Board.


SEC. 14, Executive Administrative Council. ~ There shall be a system-wide
administrative council headed by the Regional University System President, with
membership consisting of the vice-president for administration and finance, chancellors
and heads of the council of deans and other officials as may be deemed necessary by the
Board, The Executive Administrative Council shall set the direction and administrative
policies on a system-wide basis and shall perform oversight functions on administrative
matters.

SEC. 15, Administrative Council. ~ There shall be an administrative council in
cach AC in the Regional University System with a chancellor as Chairman, the deans and
directors of equal rank within the AC as members. The Administrative Council shall
formulate and recommend plans, programs and policies for administration, finance and
production for approval by the Board.

The president of the pertinent student association of each AC may be allowed to
attend the meetings of the Administrative Council as an observer.

SEC. 16. Academie Senate. ~ There shall be a system-wide Academic Senate
with the Regional University System President as chairperson, the vice-presidents,
chancellors, deans and all faculty members with an academic rank of full Professors as
members: Provided, That when a certain AC is not duly and amply represented, the
Academic Council of said AC’s shall elect their representatives, the number of which
shall not be more than ten percent (10%) of its faculty strength: Provided, further, That
the said AC’s representatives shall be members of the Academic Council.

SEC. 17. Powers of the Academic Senate. ~ The Academic Senate is the

supreme academic advisory body in the Regional University System and shall be

responsible for the following functions:

a. Set a system-wide academic policies and minimum academic standards;

b. Perform oversight functions on all academic matters pertaining to the
Regional University System and its programming;

¢. Formulate, evaluate, and recommend to the Regional University System
President policies and procedures which pertain to the development, maintenance, and

improvement of the Regional University System program in academic matters;

d. Adopt internal rules or procedures consistent with the provisions of this
Act; and
¢. Perform other corollary functions inherent to its functions.

SEC. 18, Academic Council. ~ There shall be an Academic Council in each AC
chancellor as chairperson and of all the faculty members in the AC holding the rank of
assistant professor and higher as members.

SEC. 19. Powers of the Academic Council. — The Academic Council shall be the
highest academic body of each AC and shall exercise the following powers within the
jurisdictional confines of such AC:


a. _ Fix the requirement for admission to any college or unit or any academic
program or course offering and for graduation and conferment of a degree, and the grant
of honors subject to the minimum system-wide requirements;

b. Prescribe the academic programs including their institution, revision,
abolition, and merger, subject to the approval of the Board;

©. Recommend to the Board the graduation of students and the grant of
honors;

d. Undertake a periodic review of academic courses, programs, standards,
thrusts and policies;

e. Adopt the necessary measures to enable students to exercise their
established religious beliefs consistent with the accepted norms and morals of society.
Students shall be given options to fulfill their academic responsibilities, such as, but not

limited to, make-up classes or examinations on missed school days or examinations

which coincided with the exercise of their established religious beliefs;

f Adopt internal rules or procedures consistent with the provisions of this
‘Act; and
g. Perform other corollary functions inherent to its functions.

SEC. 20. Research, Extension and Enterprise Development (REED)Regional
University System Council — There shall be a REED Regional University System
Council which shall perform oversight functions and provide direction on REED matters
system wide. The REED Regional University System Council shall be headed by the
Regional University System President, with the Chairpersons of the AC REED Councils
as members,

SEC. 21. Research, Extension and Enterprise Development Council (REED
Council) in ACs. — There shall be in each AC a REED Council which shall formulate and
craft research, extension, and enterprise development policies, programs and plans for
‘AC-based implementation upon approval by the Board. The REED Council shall be
chaired by the AC’s Chancellor, the deans and the directors, and the AC's active
researchers and extension personnel with the academic rank of associate professor or
higher as its members,

SEC. 22. Faculty, - No political beliefs, gender preference, physical disability,
cultural or community affiliation or ethnic origin, and religious opinion or affiliation shall
be a matter of inquiry in the appointment of faculty members of the Regional University
System: Provided, That the appointment shall be subject to the guidelines, qualifications
and standards set by the Board: Provided, further, That no member of the faculty shall
teach for or against any particular church or religious sect.

SEC. 23. Scholarship Program or Admission. — The Regional University
System shall provide a scholarship program and other affirmative action programs to
assist poor but deserving students who qualify for admission to the Regional University

System.


No student shall be denied admission to the Regional University System by
reason of age, gender, physical condition, religion, political beliefs, cultural or
community affiliation or ethnic origin.

SEC. 24. Academic Freedom and Institutional Autonomy. — The Regional
University System shall enjoy academic freedom and institutional autonomy, pursuant to
paragraph 2, Section 5 of Article XIV of the 1987 Constitution.

SEC. 25. Assets, Liabilities and Personnel, — All assets, real and personal,
personnel and records of all the ACs, as well as liabilities or obligations, are hereby
transferred to the Regional University System: Provided, That the utilization of the
assets shall be retained by the respective ACs, ‘The positions, rights and security of
tenure of the faculty members and personnel employed in each of the ACs under existing
laws prior to this Act shall be respected.

All assets donated to the respective ACs under its former juridical personality
shall be deemed donated to and hence a property of the new Regional University System
as a duly constituted body or juridical entity.

SEC. 26. Appropriations, - The amount necessary to carry out the initial
implementation of this Act shall be charged against the current year’s appropriations of
the University of Southeastern Philippines, the Davao del Norte State College, the Davao
Oriental State College of Science and Technology, and the Southern Philippines
Agribusiness and Marine and Aquatic School of Technology and the Campostela Valley
State College and the funding provided by the local government units where these State
university and colleges are located.

In addition, the amount of One Hundred Million Pesos (P100,000,000.00) is
hereby appropriated for the establishment of the Davao Regional University System.
‘Thereafter, such sums as may be necessary for the continued operation and maintenance
of the Regional University System shall be included in the annual General Appropriations
Act.

SEC. 27. Land Grants and Other Real Properties of the Regional University
‘System. ~ The State shall provide support to the Regional University System in the form
of lump sum amount, through general appropriations and other financial benefits, and in
kind, through land grants and donations and use of other real properties. To carry out the
intent of these grants, income derived from the development of all land grants and real
properties acquired by the Regional University System shall be used to further the ends of
the Regional University System, as may be decided by the Board.

‘The Board shall plan, design, approve or cause the implementation of financial
mechanisms, such as joint ventures and long-term leases, to give the Regional University
System the most advantageous position in generating revenues and other resources from
the land grants and other real property entrusted by the Filipino people: Provided, That
such long-term leases shall not conflict with the Regional University System’s academic

mission, as well as, sustain and protect the environment: Provided, further, That the


plans shall preserve the academic core zone of each autonomous campus concerned:
Provided, finally, That funds generated from the long-term leases shall not be meant to
replace, in whole or in part, the annual appropriation provided by the national
government to the Regional University System,

SEC. 28. Tax Exemptions. — The provision of any general or special law to the
contrary notwithstanding:

a. All revenues and assets of the Regional University System used actually,
directly and exclusively for educational purposes shall be exempt from all taxes and
duties;

b. Gifts and donations of real and personal properties of all kinds shall be
exempt from the donors’ tax and the same shall be considered as allowable deductions
from the gross income of the donor, in accordance with the provisions of the National
Internal Revenue Code, as amended;

c. Importation of economic, technical, vocational, scientific, philosophical,
historical and cultural books, supplies, equipment, machinery and other materials,
including scientific and educational computer and software equipment, shall be exempt
from customs duties; and

d. The Regional University System shall be exempt from payment of value-
added tax on its transactions which are primarily and directly undertaken for educational

purposes.

. 29, Development Plan, Management Audit. — Within one hundred twenty
(120) days after the approval of this Act, the Regional University System shall
accomplish the following:

a) Submit a medium term development plan, including its corresponding

program budget to CHED, for corresponding recommendation to the Department of

Budget and Management;
b) Undergo a management audit in cooperation with CHED; and
c) Accordingly set up its organizational, administrative, as well as, academic

structure, including the appointment of the Regional University System key officials.

SEC. 30. Transitory Provisions. —

Budget - Each AC shall retain its budget from the national government
through the General Appropriations Act. The internally-generated income of each AC
shall also be used by the AC itself, Each AC shall constitute and formulate its own
resource generation mechanism and the operational policies and implementation scheme
shall be approved by the respective AC's Administrative Council.

b. Transitory President — In order to effect a smooth transition to a Regional
University System, the Governing Board may appoint a qualified transitory President
who shall serve as the first President of the Regional University System for two (2) years
from the effectivity of this Act, the selection process for whom, shall be determined by

the Governing Board.


& Transitory Chancellors — The incumbent Presidents of the State university
and colleges being integrated shall serve as transitory chancellors of the respective ACs
for two (2) years from the effectivity of this Act or until the expiration of the current term
of office of the incumbent, whichever is longer.

d. Transitory Faculty Regent — The incumbent faculty trustees or regents, as
the case may be, shall choose from among themselves who shall be the transitory Faculty
Regent for the Regional University System. ‘The term of the transitory Faculty Regent
shall be until such time that a Faculty Regent shall have been duly elected by the new
faculty federation of the Regional University System.

e. Transitory Student Regent ~ The incumbent student trustees or regents, as
the case may be, of the integrated state university and colleges shall choose from among
themselves who shall be the Transitory Student Regent for the Regional University
System. The term of transitory Student Regent shall be until such time that a Student
Regent shall have been duly elected by the new student federation of the Regional
University System.

£ Transitory Alumni Regent - The incumbent alumni trustees or regents, as
the case may be, of the integrated state university and colleges shall choose from among
themselves who shall be the transitory Alumni Regent for the Regional University
System. The term of the transitory Alumni Regent shall be until such time that an
Alumni Regent shall have been duly elected by the new alumni federation of the
Regional University System.

g. Budget for the transitory system-wide administration — The first year of
implementation of the system-wide administration of the Regional University System
shall be provided for by the CHED, speci
activities or programs, until the budgetary requirement shall have been incorporated into

ly on complementation and consortium

the general budget of the Regional University System.

h. Rationalization of the system-wide administration — After the management
audit and to effect the appropriate administrative structure for operational efficiency, the
Davao Regional State University System shall gradually rationalize redundant
administrative offices, subject to civil rules and appropriate incentive packages.

SEC. 31. Suppletory Application. ~ The provisions of Republic Act No. 8292,
otherwise known as the “Higher Education Modernization Act of 1997,” shall be an
integral part of this Act and shall serve as part of the governing charter of the Regional
University System.

SEC. 32. Parity Clause. — All other powers, functions and privileges,
responsibilities and limitations granted to, or imposed upon state universities and their
officials under existing laws shall be deemed granted to or imposed upon the Regional

University System and its officials whenever appropriate.


SEC. 33. Implementing Rules and Regulations. ~ Within a period of ninety (90)
days from the effectivity of this Act, the Board of the Regional University System shall,
in collaboration with the Commission on Higher Education, promulgate rules and
regulations as may be necessary for the effective implementation of this Act.

SEC. 34, Separability Clause. ~ If, for any reason, any part or provision of this
Act is declared invalid or unconstitutional, the remaining parts or provisions not affected
thereby shall remain in full force and effect.

SEC. 35. Repealing Clause. ~ All laws, decrees, orders, rules and regulation
inconsistent with the provisions of this Act are hereby repealed or modified accordingly.

SEC. 36. Effectivity. - This Act shall take effect fifteen (15) days after its

publication in the Official Gazette or in any newspaper of general circulation.

Approved,