THIRTEENTH C~NGRESS 
OF THE REPUBLIC ) 
OF THE PHILIPPINES 
) 
First Regular Session 
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I. 
Senate Bill No. 
Introduced by Senator Francis N. Pangilinan 
EXPLANATORY NOTE 
The University of the Philippines Charter i s  96 years old. It was enacted 
in 1908. 
As we Live in a fast-changing world, with humankind advancing 
radically in terms of science and technology, many changes have taken place 
since 
1908. I 
Centuries-old 
monarchies 
crumbled, 
colonies 
gained 
independence, and dissimilar cultures came together through convenient 
continental unions. Likewise, globalization broke barriers in communications, 
trading and finance, and even personal relationships. Such sweeping changes 
are taking place, and while all else i s  changing, the University of the 
Philippines Charter has remained the same, in largely its original form, for 96 
long years. 
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Said to be the bastion of academic freedom and academic excellence, 
the University ~ of the Philippines nevertheless needs a revised charter to 
become more competitive in promoting, fostering, nurturing and protecting the 
right of all citizens to quality education. There is need for legislation to 
modernize, update and revise the organizational structure, rights and 
responsibilities 1 of the University of the Philippines as an educational 
institution. 
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An updajed charter therefore will allow the University of the Philippines 
to continue to perform i t s  basic functions of teaching, research and service to 
the nation. Alsb, it will allow the University to effectively perform its role as a 
standard-setter and innovator in higher education, as a major center for the 
sciences and the professions, as the foremost graduate university in the 
country, as the leading university on research and public service, and as a 
recognized regional and international university. 
In view of the foregoing considerations, immediate approval of the bill is 
earnestly urged. 


REPUBLIC 
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) 
) 
S E N A T E  
9 
S. B. No. 
Introduced by Senator Pangilinan 
AN ACT 
TO STRENGTHEN THE UNIVERSITY OF THE PHILIPPINES AS THE NATIONAL 
UNIVERSITY 
Be it enacted by'the Senate and the House of Representatives of the Philippines 
in Congress assembled: 
SECTION 1. Title. This Act shall be known as "The University of the 
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Philippines Charter of 2004." 
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SEC. 2. Declaration of Policy. The State shall promote, foster, nurture 
and protect the right of all citizens to quality education. Toward this end, it is 
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the policy of the State to strengthen the University of the Philippines as the 
National University. 
SEC. 3. Purpose of the University. As the National University, a public 
and secular institution of higher Learning and a community of scholars dedicated 
to the search fo truth and knowledge, the University of the Philippines shall 
perform i t s  unique and distinctive leadership in higher education and national 
education develo b ment through i t s  combined functions, as follows: 
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(1) Set standards and initiate innovations in teaching, research and 
faculty devetopment in philosophy, the arts and humanities, the social 
sciences, the professions and engineering, natural sciences, mathematics, 
and technology; and maintain centers of excellence in such disciplines 
and professions; 


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especially 
and 
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those who serve on the faculties of state and private colleges 
universities; 
by i t s  Board of 
University. 
Regents upon the recommendation of the President of the 
responsibility to exercise academic freedom. 


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SEC. 7. Social Responsibility. The University i s  committed to serve the 
Filipino nation and humanity. While it carries out the obligation to pursue 
universal principles, it must relate i t s  activities to the needs of the Filipino 
people and their aspirations for social progress and transformation. 
SEC. 8. Democratic Access. No student shall be denied admission to the 
University by rebson of age, gender, nationality, religious belief, or political 
opinion or affiliation. The University shall take affirmative steps to enhance the 
access of disadvantaged students to i t s  programs and services. 
SEC. 9. T kl e Board of Regents. The government of the University i s  vested 
in a board of regents known as the “Board of Regents of the University of the 
Philippines System,” composed of: 
The Chairperson of the Commission on Higher Education as 
Chairperson; 
The President of the University of the Philippines System as Vice- 
Chairperson; 
The Chairperson of the Senate Committee on Education, Arts and 
Culture; 
The Chairperson of the House Committee on Higher and Technical 
Education; 
The President of the U.P. Alumni Association, to serve as Alumni 
Regent during his or her incumbency in that position; 
One Faculty Regent chosen by the full-time tenured faculty 
members of the University from their ranks, to serve for a term of 
tMJo ( 2 )  years; 
One Student Regent, to serve for a term of one (t) year, chosen 
by, the students from their ranks; 
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One Staff Regent representing the full-time permanent research, 
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extension, and professional staff (REPS) and administrative 
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personnel and chosen by them from their ranks, to serve for a 
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term of two (2) years; and 
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Five (5) other Regents who have distinguished themselves in their 
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(h) 
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(i) 
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professions or field of specialization chosen from a list of five (5) 
persons for every vacancy as recommended by a search 
c mmittee constituted by the President of the University based 
o standards and guidelines approved by the Board of Regents. 
Ab least three (3) of these Regents should be alumni. ALL these 
Regents shall be appointed by the President of the Philippines and 
shall each serve for a term of two (2) years: Provided, That the 
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1987. 
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Regents holding office as members of the Board of Regents at the 
time of the effectivity of this Act shall continue to serve until the 
expiration of their appointments as provided in Executive Order 
No. 204-A issued by the President of the Philippines on July 15, 
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In case of vacancy in the Board of Regents of any appointive position, such 
vacancy shall be filled by appointment by the President of the Philippines, and 
such appointee shall hold office for the unexpired term. In case of vacancy in 
the position of lsectoral Regents, the successor, who shall serve for the 
unexpired term,, shall be chosen in the same manner as provided for the 
predecessor: Provided, That in the case of a sectoral Regent, membership in the 
Board ceases upon suspension or separation from the University. 
Members of the Board shall serve without compensation other than actual 
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and necessary expenses incurred in attendance of meetings of the Board or other 
official business authorized by the Board. 


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Regents. 
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SEC. I O .  Powers of the Board of Regents. The administration of the 
University and the exercise of its corporate powers are vested in the Board of 
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The Board shall exercise the following specific powers and duties: 
(d) 
To 
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(a) 
Toidefine the thrusts of the University and adopt broad policy 
Constituent University concerned through the President of the 
University; 
approve the graduation of students and grant of honors, as 
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of the University Councils through the President of the University; 
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To I create, organize, reorganize, merge or abolish constituent 
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universities, 
colleges, institutes, 
and other academic and 
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administrative units of the University; 
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(h) 
To establish professorial chair awards; 
(g) 
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(i) 
To provide fellowships, scholarships and grants, and to award the 
same to faculty, staff and students giving special evidence of 
merit; 
To elect the President of the University for a term of six (6) years 
following a process of democratic consultation with the University 
co$munity based on standards and guidelines set by the Board of 
Reients. In the event of a vacancy, the Board of Regents shall 
elect a president who shall serve a full term within six (6) months 
(j) 
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from the occurrence of the vacancy; 
To appoint faculty members and other officials and employees, to 
draw up a position classification and compensation plan for i t s  
(k) 
faculty and staff, and to fix and adjust salaries and benefits of the 
faculty members and other employees; to determine their hours or 
se ice, and such other terms and conditions as it may deem 
pro er; to grant to them, at i t s  discretion, leave of absence under 
such regulations as it may promulgate, any other provisions of law 
to Ihe contrary notwithstanding; and to remove them for cause as 
provided by law after due investigation and proper hearing; 
To extend, with their consent, the tenure of faculty members of 
the University beyond the compulsory retirement age, any other 
provision 
of 
law 
to 
the 
contrary 
notwithstanding, 
on 
recommendation of the units upon endorsement of the President 
of the University, whenever their services are specially needed; 
To fix the tuition fees and other necessary school charges, as the 
Board may deem proper to impose. Such fees and charges, 
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(1) 
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(m) 
including government subsidies and other income generated by the 
University, shall constitute special trust funds and shall be 


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carry 
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out the purposes and functions of the University; 
debosited in any authorized government depository bank. Any and 
all'interests that shall accrue there from shall form part of the 
same funds for the use of the University. 
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Any 
provision 
of 
existing 
law 
to 
the 
contrary 
notwithstanding, all incomes generated by the University or by i t s  
subsidiaries shall, upon their coUection, be retained by the 
University and disbursed at the discretion of the Board for the 
professional growth and development, health, welfare, and other 
beiefits of the faculty members and other personnel; for the 
acduisition, construction, maintenance and repair of urgently 
neided instructional and auxiliary facilities, equipment, buildings 
and other infrastructure; and for expenses necessary for the 
attainment of i t s  purposes under i t s  approved program of 
expenditures; 
To Leceive and appropriate all sums as may be provided by law for 
thd support of the University to the ends specified by law, and all 
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(n) 


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i t s  faculty and staff to travel abroad in order to study, deliver 
executive officer of the University. The President of the University shall exercise 


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University a 
of all the faculty 
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University Council consisting of the Chancellor as Chairperson, and 
members in the University holding the rank of assistant 
Adopt internal rules of procedure consistent with the provisions 
administration of each Constituent University i s  vested in the Chancellor insofar 


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as authorized by the Board of Regents and the President of the University. The 
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Chancellor of the Constituent University shall be elected by the Board of Regents 
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upon nomination of the President of the University, following a process of 
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democratic consultation with the constituents of the Constituent University 
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based on standaeds and guidelines set by the Board of Regents. The Chancellor 
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shall report to thL President of the University, and shall perform the duties and 
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functions elsewh re stated in this Act, and all the usual, necessary and related 
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functions of the office of the chancellor, subject to the policies and rules 
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prescribed by the Board of Regents. The Board of Regents shall determine the 
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term and compensation of the Chancellor. 
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SEC. 18. Appointment Requisites and Practice of Profession. Faculty 
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members, as well as research, extension and professional staff (REPS) of the 
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University shall be exempt as such from any civil service examination or 
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regulation as a requisite to appointment. The provisions of existing law to the 
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contrary notwithstanding, licensing requirements for professional regulatory 
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boards shall not affect appointments to faculty positions. In the appointment of 
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faculty members, no religious test shall be applied, nor shall the religious or 
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politics[ opinions or affiliations of the faculty members of the University be 
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made a matter 06 examination or inquiry. 
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SEC. 17. The Faculty. The teaching staff of each college shall constitute 
i t s  faculty. The College Faculty shall be presided over by a Dean. The Dean shall 
be elected by the Board of Regents on nomination by the President of the 
University and upon recommendation of the Chancellor of the Constituent 
University, following a process of democratic consultation with the constituents 
of the college based on standards and guidelines set by the Board of Regents. 
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SEC. 19. Lbnd Grants and Other Real Properties of the University. 
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declared to be reserved for the purposes intended. The absolute 
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(a) 
The State shall provide subsidy to the University of the 
Philippines System as the national 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 these grants, 
income derived from the development of all land grants and real 
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name of the University of the Philippines and their future 
derivatives is hereby confirmed. Where the issuance of proper 
certificates of title i s  yet pending for these landholdings, the 
appropriate government office shall expedite the issuance 
thereof within six (6) 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. 
The Board of Regents may plan, design, approve and/or cause 
the implementation of contracts, mechanisms, and financial 
instruments, such as joint ventures, long-term leases, fully- 
owned subsidiaries, securitization and outright sale, to give the 
University the flexibility to generate revenues and other 
resources from land grants and other properties: Provided, That 
(c) 


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such mechanisms and arrangemen s shall sustain and protect the 
environment in accordance with 'law, and be exclusive of the 
academic core zone of the campuses of the University of the 
Philippines. 
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SEC. 20. Tax Exemptions. The provisions of any general or special law to 
the contrary notwithstanding: 
(1) All revenues and assets of the University of the Philippines used 
actually, directly and exclusively for educational purposes shall be 
exempt from all taxes and duties; 
(2) Gifts nd donations of real and personal properties of all kinds shall 
be exempt from the donor's tax and the same shall be considered as 
a 
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allowable deductions from the gross income of the donor, in 
accordance with the provisions of the National Internal Revenue 
Code, as amended; 
(3) Importation 
of 
economic, 
technical, 
vocational, 
scientific, 
philosophical, historical and cultural books, supplies and materials, 
including scientific 
and educational computer and software 
equipment, shall be exempt from customs duties; 
(4) The University shall be exempt from payment of value-added tax; 
and 
(5) All honoraria from professional chair awards shall be exempt from 
taxes. 
SEC. 21. Auditing of Accounts. The Commission on Audit shall audit all 
accounts and disbursements of the University. 
SEC.22. Institutional Autonomy as the National University. To provide 
greater flexibility to the University, it shall be treated in a manner consistent 


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such lump sum 
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with its institutional requirements as the national university by the service-wide 
agencies in the exercise of their respective jurisdiction. 
SEC. 23. Rules of Construction. No statutory or other issuances shall 
diminish the powers, rights, privileges, and benefits accorded to the University 
under this Act or enjoyed at present by the University under other issuances not 
representing the national government’s assistance for the 
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otherwise modified or repealed under this Act, unless subsequent legislation 
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the Philippines. 
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Approved, 
SEC. 27. Effectivity. This Act shall take effect fifteen (15) days after i t s  
publication in the Official Gazette or in any newspaper of general circulation in