Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

TWENTIETH CONGRESS
First Regular Session

HOUSE BILL NO.

Introduced by Representative JESUS R. MARQUEZ

EXPLANATORY NOTE

This bill seeks to establish the Philippine Science Institute as an attached agency
of the Department of Science and Technology (DOST).

Strengthening science and innovation ecosystems across the country is essential
for building a future-ready and resilient nation. While technology can be imported,
innovation must be cultivated domestically. It requires a multidisciplinary approach,
deep investments in research, and the sustained development of scientific and
technological talent.

The Philippines urgently needs to scale up support for research and development—
not only to increase its output of scientific knowledge and innovation, but more
importantly, to translate these into tangible products, services, and technologies that
advance national development goals and improve socio-economic resilience amid
accelerating environmental and societal challenges.

At present, the country lacks a dedicated institution that integrates applied science,
STEM education, extension services, and policy development within a unified academic
and research setting. The Philippine Science Institute will fill this gap. It will lead and
coordinate national R&D efforts, serve as a center of excellence, and complement the
existing mandates of DOST and the Commission on Higher Education (CHED).

Modeled after world-renowned institutions such as the Massachusetts Institute of
Technology (MIT), California Institute of Technology (Caltech), Indian Institutes of
Technology (IIT), and Nanyang Technological University (NTU), the PSI will be the
country’s flagship research institute—anchored on science-based solutions, innovation-
driven strategies, and future-forward leadership.


While the Philippines is home to 112 State Universities and Colleges (SUCs) with
421 satellite campuses, 121 local universities and colleges, 13 government-run
institutions, and 1,729 private higher education institutions, the diversity of their
mandates and limited resources prevent any single institution from taking on the central
role of steering the nation’s science and technology agenda. Their capacity to absorb and
implement large-scale DOST-led R&D initiatives remains constrained by fragmented
focus and thinly spread funding.

Thus, the establishment of the Philippine Science Institute is both timely and
necessary—to build a critical mass of scientific expertise, deepen collaboration across

disciplines, and drive innovation that directly serves the Filipino people.

In this regard, immediate approval of this bill is earnestly sought.

DALLES )
HON, JE! 8 “Jess” MARQUEZ

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Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

TWENTIETH CONGRESS
First Regular Session

HOUSE BILL NO..

Introduced by Representative JESUS R. MARQUEZ

AN ACT
ESTABLISHING THE PHILIPPINE SCIENCE INSTITUTE UNDER THE SUPERVISION
OF THE DEPARTMENT OF SCIENCE AND TECHNOLOGY
AND APPROPRIATING FUNDS THEREFOR

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

SECTION 1. Title. There is hereby established a research-based degree granting
institute to be known as the "Philippine Science Institute (PSI)", an attached agency of
the Department of Science and Technology (DOST).

SEC 2. Declaration of Policy. Sections 10 and 11 of the Philippine Constitution
recognizes that Science and technology are essential for national development and
progress, The State shall give priority to research and development, invention,
innovation, and their utilization; and to science and technology education, training, and
services. It shall support indigenous, appropriate, and self-reliant scientific and
technological capabilities, and their application to the country’s productive systems and
national life. Towards this end, Congress is empowered by the constitution to provide
incentives, including tax deductions, to encourage private participation in programs of
basic and applied scientific research, and other incentives such as scholarships, grants-
in-aid, and others to deserving science students, researchers, scientists, inventors,
technologists, and specially gifted citizens.

SEC 3. Objectives. In implementing the foregoing policy, the State shall pursue
the following objectives:

(a) Promote research and development in Science, Technology,
Engineering and Mathematics (STEM) as a tool for national development;

(b) Facilitate the creation of a critical mass of Research & Development
(R&D) professionals in the country to aid its socio-economic transformation;

(©) Establish a Science Institute that will assume a leadership role in
tertiary level STEM education specializing in Applied Science Research and
Development;


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(d) Offer scholarships to deserving and gifted Filipino scholars with high
aptitude for STEM and R&D Careers/ courses;

(e) Create a pathway for students to earn degrees through STEM R&D;

( Provide for a campus patterned after international science
institutions with world-class facilities, environment for research, and sufficient
Jand and space for housing of students faculty and visiting international scientists;

(g) _ Establish international collaboration for the holistic development of
the students, staff and leaders; and

(h) Support scholars and teachers’ participation in local and
international competition, academic symposia, research projects and other
scholarly activities, subject to availability of funds and government accounting and
audit regulations.

SEC. 4. Definition of Terms. -

(a) Philippine Science Institute — is envisioned as a higher education
institute offering scholarships to deserving and qualified Filipino
students a pathway to earn undergraduate and postgraduate STEM
degrees thru Applied Research;

(b) Term - refers to the “term of office,” with a duration of six (6) years in
one term.

SEC. 5. Overall Coordinating Authority. The PSI shall be attached with the
Department of Science and Technology (DOST). The PSI Board of Trustees shall be the
Governing Board of all campuses of the Institute wherever situated.

SEC. 6. Board of Trustees. — The governance of the PSI is vested in the Board of
Trustees herein referred to as the “Board.” Its composition shall be exempted from the
requirements of R.A. 8292 also known as the Higher Education Modernization Act of
1997 given the University’s unique character and specialization.

The PSI Board shall be composed of the following members:

(a) Secretary of the DOST as ex-officio Chairman;
(b) The Chair of the Commission on Higher Education as ex-officio Vice Chair;
(c) The Chairperson of the Senate Committee on Science and Technology;

(d) The Chairperson of the House Committee on Science and Technology;

(e) The President of the University of the Philippines;

() The Director of the Science Education Institute (SEI);

(g) The President of the PSI Alumni Association;


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(h) The President of PSI;
(i) Four (4) private sector representatives who have distinguished themselves in

their professions or fields of specialization in research and development
representing the following industries: 1) Emerging Technologies; 2)
Agriculture; 3) Higher Education; and 4) Adult Education

The President of the Philippine Science High School National Alumni
Association (PSHS-NAA) shall serve as interim representative for the institute's alumni
association until a PSI alumni association has been organized, and a president has been

duly elected.

The private sector representatives shall be appointed by the Chairman subject to
the confirmation of the Board.

For the first set of appointments from the Private Sector, two (2) of the private
sector representatives shall serve for four (4) years, while the other two (2) for two (2)
years, thereafter, succeeding appointments shall have a fixed term of four (4) years.

The Board shalll exercise the following powers:

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Formulate policies and guidelines for the administration and operation of
the Institute;

Formulate policies on the appointment, promotion, retention, removal,
renewal, rewards and incentives for administrators, faculty and staff;
Approve the curricula of courses submitted by the President of the Institute;
Approve the criteria for the selection and admission of students;

Approve the grant of scholarship, stipend and such allowances for students;
Approve the graduation of successful candidates of the Institute and grant
of honors;

Approve the rules on student discipline recommended by School Councils
through the President of the Institute with the Board retaining the power to
review and pass final judgment on student disciplinary cases;

Confer honorary degrees upon persons in recognition of learning,
statesmanship, or eminence in STEM Research and Development upon
recommendation of the committee created by the President of the Institute,
provided, that such degrees shall not be conferred in consideration of any
payment, gift or other valuable consideration;

Approve appointments and contracts entered into by the President of the
Institute in connection with the employment of professors, instructors,
lecturers and other personnel of the Institute; to fix their compensation and


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other conditions of employment; and remove them for cause after due
process;

Formulate policies and rules of discipline for students, faculty and staff;
Approve the institution, merger or abolition of academic programs, upon
recommendation of the School Council through the President of the
Institute;

Approve the Institute’s budget and appropriations recommended by the
Institute’s President thru the Chancellor to the ends specified by law such
sums as may be provided by law for the support of the Institute;

Receive grants whether cash, land, buildings and improvements thereof;
donations, contributions, bequest, gifts, and to formulate policies for the
administration thereof;

Appropriate to the ends specified by law such sums as may be provided by
law for the support of the Institute;

Develop policies for the expansion of enrollment of the Institute;

Develop policies, criteria, and standards for the establishment of schools or
campuses under the Institute;

Formulate its own rules of procedure, and to prescribe for the
administration of the Institute such general rules and regulations, not
contrary to law, as are consistent with the purpose of the Institute as defined
in this Act;

Establish criteria for the selection and admission of scholars which shall
include among others, the national competitive examination;

Receive in trust local and foreign legacies, gifts, and donations of real and
personal property of all kinds and to administer the same in accordance
with the directions and instructions of the donor, and in default thereof, in
such manner as the Board of Trustees may in its discretion determine, for
the benefit of the Institute or for aid to any of its students;

Fix and adjust salaries and benefits of faculty members and other
employees, provided that salaries and other benefits of the faculty shall be
equivalent to those being received by their counterparts in the private
sector, as its minimum;

Extend, with their consent the tenure of faculty members of the Institute
beyond the compulsory retirement age, any other provision of law to the
country notwithstanding, on recommendation of the units upon
endorsement of the President of the Institute, whenever their services are
especially needed, provided however, that no extension of tenure shall be
made beyond the age of seventy (70); provided however the age limit shall
not apply to visiting and/ or eminent professors, lecturers or local faculty


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members or national scientists on account of their exemplary and
invaluable contributions to science;

Fix school fees (if any) and other necessary school charges, as the Board may
deem proper to impose. Such fees and charges, including government
support and other income generated by the Institute, shall constitute special
trust funds and shall be deposited in an authorized government depository
bank. Any and all interest that shall accrue therefrom shall form part of the
same funds for the use of the Institute. In the case of legacies, gifts and
donations received in trust, they shall be deposited in accordance with the
preferred manner of deposit and other conditions (if any) attached to the
donation.

Notwithstanding any provision of law to the contrary, all incomes generated
by the Institute or by its subsidiaries shall, upon their collection, be
retained by the Institute and disbursed at the discretion of the Board for the
professional growth and development, health, welfare, and other benefits of
the students, faculty members and other personnel; for the acquisition,
construction maintenance and repair of urgently needed instructional and
auxiliary facilities, equipment, buildings and other infrastructure; and for
expenses necessary for the attainment of its purposes under its approved
program of expenditures.

If the Institute, for reasons beyond its control, shall 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 Institute: Provided, That funds
collected from students or donors for a specific purpose shall not be
reprogrammed to other expenditures;

Receive and appropriate all sums as may be provided by law for the support
of the Institute to the ends specified by law, and all other sums in the
manner it may, in its discretion, determine to carry out the purposes and
functions of the Institute;

Authorize the construction, maintenance or repair of its buildings,
machinery, equipment and other facilities , and the purchase and
acquisition of real and personal properties, including necessary supplies,
materials and equipment;

(aa) Notwithstanding any provisions of law to the contrary, to authorize its

faculty and staff to travel abroad to pursue fellowship, scholarship or grant;

(bb) Exercise the general powers set out in the Corporation Code;


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(ce) Delegate any of its powers to the President of the Institute or other officials
or officers as it may deem necessary;

(dd) Prescribe rules for its own government and discipline of the faculty and
other personnel and to enact general policies, rules and regulations, not
contrary to law, as are consistent with its purposes;

(ee) Exercise such powers as may be proper and necessary to carry out the
objectives of this Act.

(ff) Provide fellowships, scholarships and grants, including athletic grants and
to award the same to faculty, staff and students having special evidence of
merit, especially those who are poor and deserving individuals;

(gg) Establish professorial chair awards;

(hh) Set policies and criteria to rationalize the establishment of science schools
or campuses under the Institute, for its evaluation and approval thereof;

(ii) Prepare strategic plans to enhance the capability of the Institute in
developing human resources with emphasis on STEM R&D;

Gj) Elect the President of the Institute for a single term of six (6) years following
a process of democratic consultation with the university community based
on standards and guidelines set by the Board. In the event of a vacancy, the
Board shall elect a president who shall serve a full term. A Chancellor
chosen by the Board may act as Officer-in-Charge of the Institute when the
search process is in progress. In no case shall the search and election of the
next President be longer than ninety (90) calendar days from the date when
the vacancy occurs.

SEC. 7. Quorum. A quorum of the Board of Trustees shall consist of a majority of
all the members holding office at the time the meeting of the Board is called. The Board
shall convene regularly. The chairperson may call a special meeting whenever necessary,
provided that members are notified in writing at least ten (10) days prior to the meeting,
provided further that the notice shall contain a brief description of the agenda items to be
discussed.

SEC. 8. The President of the University. The President of the Institute is the chief
academic officer, head of faculty and the chief executive officer of the Institute. He/ She
shall exercise the powers specifically provided for in this Act, those determined by the
Board, those which pertain to the office of the president of the institute, and those which
are related or necessary to its functions. The Board shall determine the compensation of
the President of the Institute.

The President of the Institute shall be appointed by the Board and shall serve for a
single term of six (6) years.


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SEC. 9. The Secretary of the Institute and the Board of Trustees. There shall be a
Secretary of the Institute appointed by the Board, who shall also be the Secretary of the
Board, and who shall keep such records of the Institute as may be designated by the
Board.

SEC. 10. The School Council. There shall be in each constituent campus, a School
Council consisting of the Chancellor as Chairperson, and all faculty members in the
constituent campuses holding the rank of assistant professor and higher as members.

‘SEC. 11. Powers of the School Council. The School Council shall be the highest
academic body of each constituent campus and shall exercise the following powers:

(a) Fix the requirements for admission to any college or unit, graduation, 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;

(c) Recommend to the Board the graduation of students and the grant of honors;

(d) Exercise disciplinary power over the students, through the Chancellors or their
appropriate committees, subject to review by the President of the Institute
according to the limits prescribed by system-wide rules on student discipline
approved by the Board;

(©) Undertake the periodic review of academic courses, programs, standards,
thrust and policies; and

(f) Adopt internal rules of procedure consistent with the provisions of this Act.

SEC. 12. The Chancellor of the Constituent Campus. The Administration of the
each constituent campus is vested in the Chancellor insofar as authorized by the Board
and the President of the Institute. The Chancellor of the constituent campus shall be
elected by the Board upon nomination of the President of the Institute, following a
process of consultation with the constituents/ community of the constituent campus
based on standards and guidelines set by the Board. The Chancellor shall report to the
President of the Institute, and shall perform the duties and functions elsewhere stated in
this Act, and all the usual, necessary and related functions of the Office of the Chancellor
subject to the policies and rules prescribed by the Board. The Board shall determine the
term and compensation of the Chancellor. If a Chancellor fails to complete his/her term,
the President of the Institute shall appoint an acting Chancellor while a search process is
in progress. In no case shall the search and election of the next Chancellor be longer than
sixty (60) calendar days from the date when the vacancy occurs.


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SEC. 13. The Faculty. The teaching staff of each college shall constitute its faculty.
The College Faculty shall be presided over by a Dean. The Dean shall be elected by the
Board upon nomination of the President of the Institute and recommendation of the
Chancellor of the constituent campus, following a process of consultation with the
constituents of the college based on standards and guidelines set by the Board.

If a Dean fails to complete his/her term, the Chancellor shall appoint an acting
Dean while a search process is in progress. In no case shall the search and election of the
next Dean be longer than sixty (60) calendar days from the date when the vacancy occurs.

SEC. 14. Appointment Requisites and Practice of Profession. Faculty members,
as well as research, extension and professional staff (REPS) of the Institute, shall be
exempt as such from any civil service examination or regulation as a requisite to
appointment. The provisions of existing law to the contrary notwithstanding, licensing
requirements for professional regulatory boards shall not affect appointments to faculty
positions. In the appointment of faculty members, no religious test shall be applied, nor
shall the religious or political opinions or affiliations of the faculty members of the
Institute be made subject of examination or inquiry.

SEC. 15. Student Affairs. There shall be established in the Institute the following
student councils, a college or institute student council; and for every constituent campus,
a student council; and for the Institute as a whole, a general assembly of all student

councils.

The student council shall be composed of elected students of a definite academic
unit of the Institute. Each member of the student council shall serve for a term of one (1)
year, without prejudice to reelection.

The student council shall serve as the primary student body that shall advance the
interests, welfare and aspirations of the students of the Institute. It shal] have the power
to adopt internal rules of procedure consistent with the provisions of this Act.

Subject to due and comprehensive consultation with the students, there shall be a
student publication established in every constituent unit and college to be funded by
student fees. Freedom of expression and autonomy in all matters of editorial and fiscal
policy shall be guaranteed especially in the selection of its editors and staff.

SEC. 16. Land Grants and Other Real Properties of the Institute.

(a) The State shall support the Institute as a special institution promoting research
and development in science and technology 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 shall be used to further the ends of the Institute, as.
may be decided by the board;

(b) Such parcels of land ceded by law, decree or presidential issuance to the
Institute are hereby declared to be reversed for the purposes intended. The
absolute ownership of the Institute over these landholdings, including those
covered by original and transfer certificates of title in the name of “The
Philippine Science Institute” and their future derivatives, is hereby confirmed.
Where the issuance of proper certificates of title is yet pending for these
landholdings, the appropriate government office shall expedite the issuance
thereof within six months from the date of effectivity of this Act: Provided, That
all registration requirements necessary for the issuance of the said titles have
been submitted and complied with;

(c) The Board may plan, design, approve and/or cause the implementation of land
leases: Provided, That such mechanisms and arrangements shall sustain and
protect the environment in accordance with law, and be exclusive of the
academic core zone of the campuses of the Institute: Provided, further, That
such mechanisms and arrangements shall not conflict with the academic
mission of the Institute;

(d) The Board may allow the use of the income coming from real properties of the
Institute as security for transactions to generate additional revenues when
needed for educational purposes;

(e) The Board may approve the implementation of joint ventures: Provided, That
in the event real properties of the Institute are involved, only the income
derived by the Institute from the use of the real properties shall be the subject
of its participation or obligation in the joint ventures: Provided, further, That
no joint venture shall result in the alienation of the real properties of the
Institute; and

(f) Any plan to generate revenues and other sources from land grants and other
real properties entrusted to the Institute shall be consistent with the academic
mission and orientation of the Institute as well as protect it from undue
influence and control of commercial interests: Provided, That such programs,
projects or mechanisms shall be approved by the Board subject to a transparent
and democratic process of consultation with the constituents of the Institute:
Provided, further, That funds generated from such programs, projects or
mechanisms shall not be meant to replace, in part or in whole, the annual
appropriations provided by the national government to the Institute.

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SEC. 17. Safeguards on Assets Disposition. The preservation of the value of the
assets of the Institute shall be of primordial consideration.

‘The sale of any existing real property of the Institute shall be prohibited: Provided,
That the Board may alienate real property donated after the effectivity of this Act if the
terms of the donation specifically allow it.

Notwithstanding the provision of this act or any other law to the contrary, the lease
of more than five (5) years of the assets the Institute and any transaction referred to in
Section 16 shall be subject to applicable laws, and rules and guidelines set by the Board.

‘SEC. 18. Management of Funds. The Board shall create an independent trust
committee to be composed of the President of the Institute, as Chairperson, two (2)
representatives from government financial regulators, and one qualified (1)
representative from the private sector specializing in investment. The members shall be
entitled to a reasonable per diem as the Board may specify. The independent trust
committee shall provide the Board with direction on appropriate investments with the
view to preserving the value of funds while allowing the Institute to earn a reasonable

return thereon.

SEC. 19. Tax Exemptions. The provisions of any general or special law to the
contrary notwithstanding:

(a) All revenues and assets of the Institute used for educational purposes or in
support thereof 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 donor's 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 of 1997, as amended: Provided, That the
allowable deductions shall be equivalent to 150 percent to the value of such
donation. Valuation of assistance other than money shall be based on the
acquisition cost of the property. Such valuation shall take into consideration
the depreciated value of property in case said property has been used;

(©) Importation of economic, technical, vocational, scientific, philosophical,
historical and cultural books, supplies and materials duly certified by the
Board, including scientific and educational computer and software equipment,
shall be exempt from customs duties;

(d) The Institute shall pay 0% value-added tax for all transactions subject to this
tax; and

(e) All academic awards shall be exempt from taxes.


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(f) Visiting foreign scientific lecturers or resident scientists faculty members shall
be exempt from tax to include their personal belongings

SEC. 20. Special Privileges in the Appointment of Foreign/ Visiting Professors
or Lecturers. The institute shall be given special privilege for the employment of foreign
nationals, thru expedited application of Alien Employment Certificate (AEP), Work
Permits (WP), Special Non-Immigrant Visa under E.O. 226 as amended by R.A. 8756 (for
spouses and dependents), and Pre-Arranged Employment Visa.

SEC. 21. Coverage of Magna Carta Benefits for S&T Workers. All personnel of
the institute are “S & T Personnel” as defined in section 5 of R.A. 8439 as amended by
R.A. 11312, and as such shall be entitled to full benefits and incentives under the Magna
Carta For Scientists and Engineers.

SEC. 22. Exemption from Age Restrictions For Faculty Members. Faculty
members shall be exempted from age restrictions per section 129 of the Omnibus Rules
on Appointment and Other Human Resources and related issuances.

SEC. 23. Exemption from Salary Standardization Law. The institute shall be
exempt from the rules and requirements of the budget and management and the office of
the compensation and position classification, and the salary standardization law.

SEC. 24. Reportorial Requirements and Auditing of Accounts. The Institute shall
submit an annual report to Congress containing the financial statements, statement of
assets and liabilities, actual projected income from tuition fees and other revenue sources,
contracts and investments entered into pursuant to Section 16 (c) hereof and programs of
expenditure. All accounts and disbursements of the Institute shall be audited by the
Commission on Audit.

SEC 24. Rules of Construction. No statutory or other issuances shall diminish the
powers, rights, privileges and benefits accorded to the Institute under this Act or enjoyed
at present by it under other issuances not otherwise modified or repealed under this Act,
unless subsequent legislation expressly provides for their repeal, amendment or
modification. Any case of doubt in the interpretation of any of the provisions of this
Charter shall be resolved in favor of the academic freedom and fiscal autonomy of the
Institute.

SEC 25. Appropriations. The amount needed to carry out the implementation of
this Act shall be charged against the lump sum appropriation of the current fiscal year
and other internal funds of the Institute. Thereafter, such lump sum representing the
responsibility of the national government for the continued growth, operation

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maintenance of the Institute shall be included in the annual General Appropriations Act
(GAA).

The Institute may use unexpended balances in any appropriation for purposes that
the Board determines.

SEC 26.Separability Clause. Should any provision herein be declared
unconstitutional, the same shall not affect the validity of the other provisions of this Act.

SEC 27. Repealing Clause. - All laws, orders, proclamation, rules and regulation
or parts thereof which are inconsistent with the provisions of this Act are hereby repealed
or modified accordingly.

SEC 28. Effectivity. This Act shall take effect fifteen (15) days after its publication
in the Official Gazette or in any newspaper of general circulation in the Philippines.
Approved,