HOUSE OF REPRESENTATIVES:
7 RECEIVED
MOU OF REPRESENTATIMEs pare:_2/ WL 2016
Quezon City ave:_ fox Mm,
BY. Dercdle

REEISTRATION UNIT
HOUSE BILL NO, _ UO} BULLS AND iAUEX SERVICE

SEVENTEENTH CONGRES:
First Regular Session

INTRODUCED BY CONGRESSMAN ALFREDO D. VARGAS III

EXPLANATORY NOTE

It I the policy of the State to promote and protect the right to accessible, equitable
and quality education. Further, it is a commitment of the State to “establish, maintain,, and
support a complete adequate and integrated system of education relevant to the needs of
the people and society.”

Quezon City is the most populated city in the country with a population of
2,761,720, Of this figure, eighteen percent (18%) of the city’s population is based in the
Novaliches Distr

In the year 1998, the United Nations Educational, Scientific and Cultural
Organization stressed the “unprecedented demand for a great diversification in higher
education, as well as an increased awareness of its vital importance for sociocultural and
economic development.” As the population continues to grow, a greater demand for
accessible basic and tertiary education is being confronted by the government. To address
this, more schools and higher education institutions should be established.

‘This bill seeks to create the Novaliches State University, s state university that will
cater to the educational needs of the people from Novaliches and its neighboring
communities. As commerce, trade, and other industries continue to grow in the District, an
able and competent labor and work force should also be a priority of the government, This
can be attained through public investment in the higher education sector. Hence, the
speedy approval of this bill is sought.

‘ALFREDO D. VARGAS III


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

SEVENTEENTH CONGRESS
First Regular Session

HOUSE BILL NO. 2004

INTRODUCED BY CONGRESSMAN ALFREDO D. VARGAS III

AN ACT
CREATING A STATE UNIVERSITY IN THE FIFTH LEGISLATIVE DISTRICT OF
QUEZON CITY TO BE KNOWN AS THE NOVALICHES STATE UNIVERSITY 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 “Novaliches State
University Charter.”

SECTION 2. Declaration of Policy. - The State shall promote, foster, nurture and
protect the right to accessible, equitable and quality education. Through a refocused
institutional culture and improved governance, the Novaliches State University shall
aim to become one of the State’s main higher education provider in the region.

SECTION 3. Creation of the Novaliches State University. - There is hereby
created a Novaliches State University hereinafter referred to as the State University.

SECTION 4. General Mandate. - The State University shall provide a unified
corporate structure to guarantee common academic standards and institutional
identity. It shall foster complete unity and deep collaboration among its constituency
towards the following strategic goals,

a. To uphold absolute academic freedom;

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

c. To build greater synergy among the constituency to establish and improve
the State University academic portfolio, boost academic performance to
higher level and enhance teaching quality in more diverse academic
disciplines; and

d. To utilize governance structures more effectively by having a single
governing board that can be better focus on responding to development
needs and combining disconnect academic and non-academic functions that
can create additional capacity for other appropriate pursuits.


SECTION 5. Administration. - The State University shall have the general
powers of a corporation set forth in Batas Pambansa Big, 68, as amended, otherwise
known as "The Corporation Code of the Philippines.” The administration of the State
University and the exercise of its corporate powers shall be vested exclusively in the
Board of Regents.

SECTION 6. Governing Board. - The Governing Board of State University shall be
the Board of the 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 his/her
representative, as Chairperson;

b. The President of the State University, as Vice Chairperson;

c. 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 Representatives;

e, The Regional Director of the National Economic and Development Authority

(NEDA);

‘The Regional Director of the Department of Science and Technology (DOST);

‘The President of the faculty union/association;

The President of the university student council;

The President of the alumni association; and

Two (2) prominent alumni from the private sector who have distinguished

themselves in their profession or fields of specialization and are active in

dominant industries in the region that are directly relevant to the university's

need and external affairs, as members.

verses

‘The Board of Regents shall appoint the two (2) prominent alumni from a list of
five (5) qualified persons who are residents of Quezon City, as recommended by the
search committee constituted by the State University 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 alumni associations shall
be co-terminus with their respective terms of office, as set forth in their respective
constitution and by-laws.

The two (2) prominent citizens shall serve for a term of two (2) years from the
date of their appointment.

SECTION 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, science and technology, and other fields
deemed important for economic growth in the City,


SECTION 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 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 charges shall, including
government and subsidies and other income generated by the State
University, 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 State
University. In cases where tuition and other fees adjustment shall be
implemented, a documented consultation compendium on the proposed
increase should be submitted to the Board in order to support the Board's
action.

Any provision of existing laws, rules and regulations to the contrary
notwithstanding, all income generated by the State University from tuition
fees and other charges, as well as from the operation of auxiliary services and
land grants, shall be retained by the constituent unit 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 State University 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
State University:

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

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;

Designate, upon recommendation of the President of the State University, the
vice presidents, deans, directors, heads of departments, head of campus,
faculty members, and other officials and employees of the university;

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, as 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;

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

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

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 State University: Provided, That such degrees shall not be
conferred in consideration of any payment, gift or other valuable
consideration;

Establish research and extension centers of the State University where such
will promote the development of the latter;

Establish professional chairs in the State University and provide fellowships
for qualified faculty members and scholarships to deserving students;
Delegate any of its powers and duties to the president or other officials of the
State University, as it may deem appropriate, so as to expedite the
administration of the affairs of the State University;

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

Collaborative with other governing boards of the State Colleges and
universities as well as private colleges and universities in working towards
the development of the State University to become more efficient, relevant,
productive and competitive;

Enter into joint ventures, which may be initiated by the constituency, with
business and industry for the profitable development and management of the
economic assets of the State University; Provided, That these ventures shall
not affect the academic character of the State University;


s. Develop consortia and other economic forms of linkages with the local
government unit (LGU), as well as public or private institutions and agencies,
local and foreign, in the furtherance of the purposes and objectives of the
State University;

t, Develop academic arrangements for institution-capability building with
appropriate institutions and agencies, public or 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;

u. Set up the adoption of modern and innovative models 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;

v. Establish policy guidelines and procedures for participative decision-making
and transparency within the State University;

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

x. Extend the term beyond the age of retirement but not beyond the age of
seventy (70) of the State University President whose performance has been
unanimously rated by the Board as outstanding, after unanimous
recommendation by the Performance Evaluation Committee (PEC).

SECTION 9, Meetings of the Board. - The Board of the Regents of the State
University 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 the 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 majority of all its members
holding office at the time of the meeting; Provided, That the Chairperson of the Board or
the State University 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 however, that during this
meeting, the State University President as Vice-Chairperson shall be the presiding
officer: 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 said meeting, their respective representatives shall have the same
rights and responsibilities as a regular member of the Board, except in cases of the
appointment of the State University officials, including the State University President,
wherein the Chairpersons shall send an official communication to the Board
transmitting their approval of the appointment/designation.


The members of the Board shall not receive any salary or honoraria 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.

SECTION 10, State University President. - The State University 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: Provided, the candidate shall be a doctorate degree
holder, The State University 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 State University 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 shall only serve a period within six (6) months from the date of vacancy, pending
the appointment of new State University President: Provided, the officer-in-charge shall
only serve a period of not more than one (1) year. The State University President
appointed by the Board after the occurrence of any 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 State University, 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 State University 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,

SECTION 11. Vice President. - The State University 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, but not exceeding five (5) vice
presidents serving at a time. They shall be designated by the Board, upon the
recommendation of the State University President, They shall serve as staff and may
assume line functions upon the direction of the State University.

SECTION 12. Secretary of the University of the Board, - There shall be a
Secretary of the University and of the Board of Regents to appointed by the Board, who
shall keep records of the University and the Board, as may be designated by the Board.

SECTION 13. Executive Administrative Council. - There shall be a university-
wide administrative council by the State University President, with membership
consisting of the vice president for administration and finance, 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 university-wide basis and shall
perform oversight functions on administrative matters.


SECTION 14. Administrative Council . - There shall be an administrative council
in the State University with the President as Chairman, the deans and directors of equal
rank within the university as members. The Administrative Council shall formulate and
recommend plans, programs and policies for administration, finance and production for
approval of the Board.

The President of the student council of the University may be allowed to attend
the meetings of the Administrative Council as an observer.

SECTION 15. Academic Council. ~ There shall be an Academic Council with the
State University President as chairperson, the vice-presidents, chancellors, deans, and
all faculty members with an academic rank of at least Assistant Professor as members.

SECTION 16. Powers of the Academic Council. ~ The Academic Council is the
supreme academic advisory body in the State University and shall be responsible for the
following functions:

a. Set academic policies and minimum academic standards;

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

c, Formulate, evaluate, and recommend to the State University President
policies and procedures which pertain to the development, maintenance, and
improvement of the State University program in academic matters;

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

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

f, Recommend to the Board the graduation of students and the grant of honors;
Undertake a periodic review of academic courses, programs standards, thrust
and policies;

h. 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
or missed school days or examinations which coincided with the exercise of
their established religious beliefs;

i, Adopt internal rule or procedures consistent with the provisions of this Act;
and

j. Perform other corollary functions consistent to the goals and objectives of
the State University.

SECTION 17. Research, Extension and Enterprise Development (REED) State
University Council. - There shall be a REED State University Council which shall
perform oversight functions and provide direction on REED matters in the university.
‘The REED State University Council shall be headed by the Vice President of Research
Extension and Development, with the Chairpersons of each academic department as
members.


SECTION 18. Faculty. - No political beliefs, gender preference,
disability, cultural or community affiliation or ethnic origin, and religious opinion or
affiliation shall be a matter of inquiry in the appointment of the faculty members of the
State University: Provided, That the appointment shall be subject to the guidelines,
qualifications and standards set by the Board consistent with existing policies and laws:
Provided, further, That no member of the faculty shall teach for or against any
particular church or religious sect.

SECTION 19. Scholarship Program or Admission. ~ ‘The State University shall
provide a scholarship program and other affirmative action programs to assist poor but
deserving students who qualify for admission to the State University.

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

SECTION 20, Academic Freedom and Institutional Autonomy. - The State
University shall enjoy academic freedom and institutional autonomy, pursuant to
paragraph 2, Section 5 of Article XIV of the 1987 Constitution.

SECTION 21. Assets, Liabilities and Personnel. ~ All assets, real and personal,
personnel and records of the State University, as well as liabilities or obligations, are
hereby transferred to the State University. The positions, rights and security of tenure of
the faculty members and personnel employed in the university under existing laws
prior to this Act shall be respected.

All assets donated to the State University under its former juridical personality
shall be deemed donated to and hence a property of the new State University as a duly
constitutes body or juridical entity.

SECTION 22. Appropriations. ~ The amount necessary to carry out the initial
implementation of this Act shall be included in the Annual General Appropriations Act
following its approval.

In addition, the amount of One Hundred Million Pesos (Php100,000,000.00) is
hereby appropriated in addition to the proposed appropriations for the establishment
of the State University.

SECTION 23. Land Grants and other Real Properties of the State University. -
The State shall provide support to the State University 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 theses
grants, income derived from the development of all land grants and real properties
acquired by the State University shall be used to further the ends of the State University,
as may be decided by the Board.

The Board shall plan, design, approve or cause the implementation of financial
mechanisms, such as joint venues 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 State University’s academic
mission, as well as, sustain an protect the environment: Provided, finally, That funds
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 State University.

SECTION 24. Tax Exemptions. - The provision of any general or special law to
the contrary notwithstanding:

a. All revenues and assets of the State University 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 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 State University shall be exempt from payment of value-added tax on its
transactions which are primarily and directly undertaken for educational
purposes.

SECTION 25. Development Plan and Institutionalization. - Within one hundred
twenty (120) days after the approval of this Act, the Commission on Higher Education
shall accomplish the following:

a. Submit a medium term development plan, including its corresponding
recommendation to the Department of Budget and Management;

b, Accordingly set up its organizational, administrative, as well as, academic
structure, including the appointment of the State University key officials; and

c. Determine the courses and programs to be offered in the State University.

SECTION 26, Suppletory Application. - The provisions of the 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 State
University.

ON 27. Parity Clause, - All other powers, functions and privileges,
responsibilities and limitations granted to, or imposed upon state university and their
officials under existing laws shall be deemed granted to or imposed upon the State
University and its officials whenever appropriate.

SECTION 28. Implementing Rules and Regulations. - Within a period of ninety
(90) days from the effectivity of this Act, the Commission on Higher Education shall
promulgate rules and regulations as may be necessary for the effective implementation
of this Act.


SECTION 29. 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 hereby shall remain in full force and effect.

SECTION 30. Repealing Clause. - All laws, decrees, orders, rules and regulations
inconsistent with the provisions of this Act are hereby repealed or modified accordingly.

SECTION 31. Effectivity. - This Act shall take effect fifteen (15) days after its
publication in the Official Gazette or in any newspaper of general circulation.

Approved,