THIRTEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
First Regular Session 
SENATE 
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INTRODUCED BY HON. MANUEL B. VILLAR JR. 
EXPLANATORY NOTE 
The State is mandated by the Constitution to constantly improve the standards of high 
education in the Philippines to ensure that students get the best possible education from both 
public and private higher education institutions. 
To achieve this end, this Bill aims to strengthen the University of the Philippines, 
which is the national university. 
As a community of scholars dedicated to the search for truth and knowledge, the Bill 
proposes that the University of the Philippines shall perform its unique and distinctive 
leadership in higher educational development through its combined functions as follows: 
0 Set standards and initiate innovations in teaching, research and faculty development in the 
various academic disciplines; maintain excellence in such disciplines and professions; 
0 Serve as a graduate university providing advanced studies and specialization for scholars, 
scientists , writers , artists and professionals ; 
0 Serve as a research university in the various fields of its expertise and specialization by 
conducting basic and applied research; 
0 Lead as a public service university by providing various forms of community, public and 
volunteer service, and scholarly and technical assistance to the government, private 
sector and civil society; 
0 
Provide opportunities for training and learning in progressive leadership and citizenship 
0 
Serve as a regional and global university in cooperation with international scientific 
unions and with universities and professional associations in the Asia-Pacific region and 
around the world. 
In view of the foregoing, urgent passage of this Bill is hereby sought. 


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THIRTEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
First Regular Session 
SENATE 
INTRODUCED BY HON. MANUEL B. VILLAR JR. 
AN ACT 
TO STRENGTHEN THE UNIVERSITY OF THE PHILIPPINES AS THE 
NATIONAL UNIVERSITY 
Be it enacted by the Senate and House of Representatives of the Philippines in 
Congress assem bled: 
SECTION 1. Title. - This Act shall be known as the “University of the Philippines 
Charter of 2004.” 
SECTION 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 the policy of the 
State to strengthen the University of the Philippines which is its national university. 
SECTION 3. Purpose ofthe University. - As the national university, a public and 
secular institution of higher learning and a community of scholars dedicated to the search for 
truth and knowledge, the University of the Philippines shall perform its unique and 
distinctive leadership in higher education and national educational development though its 
combined functions, as follows: 
Set standards and initiate innovations in teaching, research and faculty 
development in philosophy, the arts and humanities, the social sciences, the 
professions, and enginee~ng, natural sciences, mathematics, and technology; 
maintain centers of excellence in such disciplines and professions. 
Serve as a graduate university providing advanced studies and specialization for 
scholars, scientists, writers, artists and professionals, especially those who serve 
on the faculties of state and private colleges and universities; 
Serve as a research university in the various fields of its expertise and 
specialization by conducting basic and applied research, and research and 
development, promoting research in the various colleges and universities, and 
contributing to the dissemination and application of knowledge; 


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(4) Lead as a public service university by providing various forms of community, 
public and voluntary service, and scholarly and technical assistance to the 
government, the private sector, and civil society; 
(5) Provide opportunities for training and learning in progressive leadership and 
leadership for service, responsible citizenship, and the development of democratic 
values, institutions and practice; and 
(6) Serve as a regional and global university in cooperation with international 
scientific unions and with networks of universities and scholarly and professional 
associations in the Asia-Pacific region around the world. 
SECTION 4. The University System. - The University of the Philippines is a 
university system and shall be composed of constituent universities and regional units. 
SECTION 5. 
Academic Freedom. - The University has the right and the 
responsibility to exercise academic freedom. 
SECTION 6. Academic Excellence. - The University has the responsibility to 
maintain and enhance its high academic standards in the performance of the functions of 
instruction, research, and extension and public service. 
SECTION 7. Social Responsibility. - The University is committed to serve the 
Filipino nation and humanity. 
While it carries out the obligation to pursue universal 
principles, it must relate its activities to the needs of the Filipino people and their aspirations 
for social progress and transformation. 
SECTION 8. Democratic Access. - No student shall be denied admission to the 
University by reason of age, gender, nationality, religious belief, or political affiliation. The 
University shall take affirmative steps to enhance the access of disadvantaged students to its 
programs and services. 
SECTION 9. The Board ofRegents. - The government of the University is vested 
in a board of regents known as the “Board of Regents of the University of the Philippines,” 
composed of: 
(1) The Chair of the Commission on Higher Education as Chairperson; 
(2) The President of the University of the Philippines as Vice-Chairperson; 
(3) The Chair of the Senate Committee on Education; 
(4) The Chair of the House Committee on Higher Education; 
( 5 )  The President of the U.P. Alumni Association, to serve as Alumni Regent during 
hidher incumbency in that position; 
(6) One Faculty Regent chosen by the full-time and tenured faculty members of the 
University from their ranks to serve for a term of two (2) years; 
(7) One Student Regent, to serve for a term of one (1) year; chosen by the students 
from their ranks; 
(8) One Staff Regent representing the full-time permanent research, extension, and 
professional staff and administrative personnel chosen by them from their ranks, 
to serve for a term of two (2) years; and 
(9) Five (5) other Regents, at least three (3) of whom should be alumni, appointed by 
the President of the Philippines who shall each serve for a term of two (2) years; 
Provided, That Regents holding office as members of the Board of Regents at the 
time of this Act is promulgated shall continue to serve until the expiration of their 
appointments as provided for in the Executive Order No. 204-A issued by the 
President of the Philippines on July 15,1987. 


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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 item. In case of vacancy in the position of sectoral Regents, the 
successor, who shall serve for the unexpired term, shall be chosen in the same manner as 
provided above for the predecessor; Provided, That in the case of a sectoral Regent, 
membership in the Board ceases upon suspension from the University. 
Members of the Board shall serve without compensation other than actual and 
necessary expenses incurred in attendance of meetings of the Board or other official business 
authorized by the Board. 
SECTION 10. Powers of the Board of Regents. - The administration of the 
University and the exercise of its corporate powers are vested in the Board of Regents and the 
President insofar as authorized by the Board. The administration of each constituent 
University is vested in the Chancellor insofar as authorized by the Board and the University 
President 
The Board shall exercise the following specific powers and duties: 
To adopt and define in general terms the thrusts of the University and board 
policy guidelines to ensure their implementation; 
To preserve the integrity of the University of the Philippines System; 
To approve the institution, merger or abolition of academic programs; 
To approve the graduation of students, as recommended by their respective 
University Councils; 
To confer honorary degrees upon persons in recognition of learning, 
statesmanship, or eminence in literature, science, or act, upon recommendation of 
a committee of the Board of Regents: Provided, That such degrees shall not be 
conferred to consideration of any payment, gifts or other valuable consideration; 
To approve the rules on student discipline recommended by the university 
councils; 
To create, organize, reorganize, merge or abolish constituent universities, 
colleges, institutes, and other academic and administrative units of the 
University; 
To establish chairs in the colleges and to provide for the maintenance or 
endowment of such chairs; 
To provide fellowships and scholarships and to award the same to faculty, staff 
and students giving special evidence of merit; 
(10) To elect the University President for a term of six (6) years following process of 
democratic consultation with the University community; 
(1 1) To appoint faculty members and other officials and employees, to draw up a 
position classification and compensation plan for its faculty and staff subject to 
the provisions of the Revised Compensation and Position Classification System 
and other pertinent budget and compensation laws, and to fix and adjust salaries 
and benefits of the faculty members and other employees; to determine their 


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hours of service, and such other terms and conditions as it may deem proper; to 
grant to them, in its discretion, leave of absence under such regulations as it may 
promulgate, any other provisions of law to the contrary notwithstanding , and to 
remove them for cause as provided by law after due investigation and proper 
hearing. 
(12) 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: 
Provided, however, That no extension of tenure shall be made beyond the age of 
seventy (70); Provided, further, That in case of extension of tenure of the 
University President beyond the compulsory retirement age, such extension shall 
be subject to the approval of the President of the Philippines; 
(13) To fix the tuition fees and other necessary school charges, as the Board may 
deem proper to impose. Such fees and charges, including government subsidies 
and other income generated by the University, constitute special trusts funds and 
shall be deposited in any authorized government depository bank. Any and all 
interests that shall accrue therefrom shall form part of the same funds for the use 
of the University. Any provision of existing law to the contrary notwithstanding, 
all incomes generated by the University of by its own subsidiaries may, at the 
discretion of the Board, be disbursed for the professional growth and 
development, health, welfare and other benefits of the 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 this Act. If the University, 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 funds for any reasonable purpose which it deems necessary and urgent for 
the attainment of the objectives and goals of the University; 
(14) To receive and appropriate all sums as may be provided by law for the support of 
the University 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 
University; 
(1 5) To authorize the construction or repair of buildings, machinery, equipment and 
other facilities, and the purchase and acquisition of real and personal properties, 
including the necessary supplies, materials and equipment; 
(16) To receive in trust legacies, gifts and donations of real and personal property of 
all kinds and to administer and dispose the same when necessary for the benefit 
of the University and subject to the instruction of the donor, if any; 
(17) To exercise the general powers set out in the Corporation Code; 
(1 8) To delegate any of its powers to the President or any other officials or officers as 
it may deem necessary; and 
(19) To prescribe rules for its own government and the discipline of the faculty and 
other personnel and to enact for the govedent of the University such general 
policies, rules and regulations, not contrary to law, as are consistent with the 
purpose of the University. 


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SECTION 11. Quorum of the Board of Regents. - A simple majority of all 
members of the Board of Regents holding office at the time the meeting is called shall 
constitute a quorum. 
SECTION 12. The University President. - The University President is the chief 
academic Officer of the university. The President shall preside over the meetings of the 
constituent University Councils, if he or she is in attendance. The President shall exercise the 
powers specifically provided for in this Act, those determined by the Board of Regents, those 
which are usually pertaining to the office of the president of the university, and those which 
are related or necessary to its functions. The compensation of the President shall be 
determined by the Board of Regents. 
SECTION 13. The Secretary of the University and the Board of Regents. - There 
shall be a secretary of the University appointed by the Board of Regents, who shall also be 
the secretary of the Board, and who shall keep such records of the University as may be 
designated by the Board. 
SECTION 14. 
The University Council. - There shall be in each constituent 
University Council consisting of the Chancellor as Chairperson and of all the faculty 
members in the University holding the rank of assistant professor or higher. 
SECTION 15. Powers of the University Council. - The University Council shall be 
the highest academic body of each constituent University and shall exercise the following 
powers: 
(1) Fix the requirements for admission to any college or unit and for graduation and 
receiving a degree, subject to the minimum system-wide requirements; 
(2) Prescribe the academic programs including their institution, abolition and 
merger, subject to the approval of the Board; 
(3) Recommend to the Board the graduation of the students; 
(4) Exercise the disciplinary power over the students, through the Chancellors or 
their appropriate committees, subject to review by the President according to the 
limits prescribed by the system-wide rules on student discipline; 
(5) Undertake the periodic review of academic courses, programs, standards, thrusts 
and policies; and 
(6) Adopt internal rules of procedure consistent with the provisions of this Act. 
SECTION 16. The Chancellor of the Constituent University. - The Chancellor of 
the Constituent University shall be elected by the Board of Regents upon nomination of the 
University President, following a process of democratic consultation with the constituents of 
that constituent University, The Chancellor is the head of the faculty of that constituent 
University. The Chancellor shall report to the President of the University, 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 of Regents. The term and compensation of the Chancellor shall be determined by the 
Board of Regents. 
SECTION 17. The Faculty. - The teaching staff of each college shall constitute its 
faculty, which shall be presided over by the Dean elected by the Board of Regents on 


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nomination by the University President and upon the recommendation of the Chancellor of 
the constituent University, following a process of democratic consultation with the 
constituents of the college. In the appointment of faculty members, no religious test shall be 
applied, nor shall the religious or political opinions or affiliation of the faculty members of 
the University be made a matter of examination or inquiry. 
SECTION 18. Appointment Requisites. - Faculty members, and research, extension 
and professional staff of the University shall be exempt as such from any civil service 
examination or regulation as a requisite to appointment. 
SECTION 19. Land Grants and Other Real Properties of the Universi@ - 
The State provides subsidy to the University of the Philippines as the national 
university in the form of cash 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 University, as may be decided upon by the Board of Regents. 
Such parcels of land ceded by law, decree or presidential issuance to the 
University of the Philippines System, are hereby declared to be reserved for the 
purposes intended, as confirmed by the Board of Regents. 
The absolute 
ownership of the University over these landholdings is hereby affirmed. Where 
issuance of proper certificates of title is 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. 
The Board of Regents shall plan, design, approve and/or cause the 
implementation of financial mechanisms, such as joint ventures, long-term leases, 
fully-owned subsidies, securitization and outright sale, to give the University the 
most advantageous position in generating revenues and other resources from the 
land grants and other real property entrusted by the Filipino people to their 
national university; Provided, That such mechanisms and arrangements shall 
sustain and protect the environment, and be exclusive of the academic core zone 
of the U.P.’s campuses, and be for such periods of time as may be determined in 
accordance with law. 
SECTION 20. Appropriations. - The Board of Regents of the University of the 
Philippines System (UPS) shall immediately include in the UPS programs the 
implementation of this Act, the initial funding of which, shall be charged against the current 
year’s appropriations and other internally generated income of the University of the 
Philippine System. Thereafter, such sums as may be necessary for the continued operation 
and maintenance of the University shall be included in the Annual General Appropriations 
Act. 
SECTION 21. Tax Exemptions. - The provisions of any general or special law to 
the contrary notwithstanding: 
(1) All profits and income generated by the University derived exclusively from its 
fundamental function as an educational institution, shall be exempt from the tax 
being imposed on every corporation; 
(2) 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 


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(3) 
from the gross income of the donor, in accordance with the provisions of the 
national internal revenue code, as amended; and 
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 the 
payment of customs duties upon endorsement from the Commission on Higher 
Education and the Department of Finance. 
SECTION 22. Auditing of Accounts. - All accounts and expenses of the University 
shall be audited by the Commission on Audit, and all disbursements shall be made in 
accordance with rules and regulations prescribed by the latter. 
SECTION 23. Institutional Autonomy as the National University. - To provide the 
greater flexibility to the University, it shall be treated in a manner consistent with its 
institutional requirements as the national university by the service-wide agencies in the 
exercise of their respective jurisdiction. 
The University, taking into account national goals and priorities, shall exclusiveiy 
determine its teaching, research and extension thrusts, plans, policies, priorities, programs 
and standards and, on the basis of such determination, the University shall recommend its 
annual budget to the President and Congress. 
SECTION 24. Rule 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 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 
University of the Philippines. 
SECTION 25. Separability Clause - Should any provision herein be declared 
unconstitutional, the same shall not affect the validity of the other provisions of this Act. 
SECTION 26. Repealing Clause. - Act No. 1870 is hereby repealed. All laws, 
decrees, orders, rules and regulations, or portions thereof, inconsistent with the provisions of 
this Act are hereby repealed or modified accordingly. 
SECTION 27. Effectivity. - This act shaiI take effect fifteen (15) days after its 
publication in the OfJiciaZ Gazette or any newspapers of general circulation in the 
Philippines. 
Approved,