Republic of the Philippine :
HOUSE OF REPRESENTATIVES i 31 JUL 2014

Quezon City a 05 7A

SIXTEENTH CONGRESS
Second Regular Session

House Bill No. 4779

INTRODUCED BY REP. ROMAN T. ROMULO

EXPLANATORY NOTE

The Mindanao State University, which was founded on September 1, 1961 through Republic
‘Act 1387 and Republic Act 1893, has expanded through the years to become a University System
that now comprises several campuses located in major centers in Mindanao. A brainchild of late
Senator Democao Alonto, it has actually evolved into one of the leading universities in the
Philippines. Its lligan Institute of Technology Campus has even landed in the top 400 universities
based on the Quacquarelli Symonds World University Ranking

True to its mission, the MSU has been helping accelerate the program of the integration
‘among the peoples of Southern Philippines, particularly the Muslims and other cultural minorities, and
has been providing trained manpower skills and technical know-how for the economic development of
Mindanao.

Yet, despite these developments, the MSU System is still governed by an old, archaic and
weak charter.

Moreover, the MSU System's vision of becoming the premier supra-regional university
committed to the social, political and economic development of Mindanao while achieving
international recognition as a leading institution of higher learning will be hampered if it will continue
to rely ona charter that is already more than sixty (60) years old and tantamount to being obsolete

It is important to take cognizance of the MSU System's goals of setting the standards of
excellence in science, arts, technology, and other fields, accelerating the economic, cultural, socio
political, and agro-industrial development of the Muslim and other cultural groups, and preserving and
promote the cultural heritage of the region, which can only be attained if its charter is strengthened to
rake it more relevant and responsive to the needs of the times, especially in this age of globalization
and rapid technological developments

Hence, there is an urgent need to amend the existing charter of the MSU System
In view of the foregoing reasons, immediate approval of this measure is earnestly sought

ye

ROMAN T. ROMULO
Representative
Lone District, Pasig City


Republic of the Philippines
HOUSE OF REPRESENTATIVES

SIXTEENTH CONGRESS
Second Regular Session

HOUSE BILLNo. 4779

Introduced by: REP. ROMAN T. ROMULO

AN ACT
STRENGTHENING THE MINDANAO STATE UNIVERSITY SYSTEM AS A
NATIONAL PEACE UNIVERSITY

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

SECTION 1. Short Title.. This Act shall be known as “Mindanao State University
System Charter.”

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 the policy of the State to
strengthen the Mindanao State University as a System

The Mindanao State University System (MSUS) was established as a potent
instrument to implement more effectively the policy of the government in the education
and integration of the Filipino youth, especially the Muslims and other cultural
communities, into the national body politic towards achieving peace, development and
national unity.

In view of its original mandate as a comprehensive university, the Mindanao
State University System (MSUS) is hereby designated as a national peace university,
hereinafter referred to as the MSUS or the University. The MSUS shall initiate, maintain
and promote programs and policies on peace education, conflict resolution,
multiculturalism, pluralism and diversity.

SEC. 3. Objectives of the MSUS. As a public and secular comprehensive university
and a community of scholars dedicated to the search for truth and knowledge, the
MSUS shall perform its unique and distinctive leadership in higher education and
national education development and shall continue its affirmative mandate for the
Muslims and other cultural communities through its combined functions, as follows:


a) Set standards and initiate innovations in teaching, research and faculty
development 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;

b) 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 development, promoting
research in the various colleges and universities;

d) Lead as a public service university by providing various forms of community,
public and volunteer services, and scholarly and technical assistance to the
government, the private sector and civil society while maintaining its standards of
excellence;

e) Provide opportunities for training and learning in progressive leadership,
responsible citizenship, and the development of democratic values, institutions and
practices; and

f) Serve as a regional and global university in cooperation with international and
scientific unions, networks of universities and scholarly and professional associations in
the Asia-Pacific region and around the world.

SEC. 4. The Mindanao State University System. The MSUS is composed of the
following constituent campuses: 1) MSU Marawi; 2) MSU lligan; 3) MSU General
Santos; 4) MSU Tawi-Tawi: 5) MSU Sulu; 6) MSU Maguindanao; 7) MSU Misamis
Oriental ; and 8) MSU Zamboanga Sibugay, and those that may be recognized and/or
established by the Board of Regents (BOR) upon the recommendation of the MSUS
President.

SEC. 5. Seat of Administration and Seal of the MSUS. The seat of the system
administration of MSU shall be in MSU in Marawi City. There shall be one common seal
of the MSUS, which shall be the figure of a Meranao awang (boat) in full sail as the
head of the seal, and a Maguindanao lamp with three rays emanating from its flame
resting atop the Meranao awang (boat) with the number “1961” written on it. The
University color shall be “sotra” or magenta and gold.

SEC. 6. Academic Freedom. The MSUS has the right and responsibility to exercise
academic freedom.

SEC.7. Academic Excellence. The MSUS shall maintain and enhance its high
academic standards in the performance of its functions of instruction, research and
extension service.


SEC. 8. Social Responsibility. The MSUS is committed to serve the Filipino nation
and humanity. While it fulfills its obligation to pursue universal principles, it shall relate
its activities to the needs of the Filipino people in general, the Muslims and other cultural
communities and disadvantaged and marginalized people, in particular, and their
aspirations for social progress and transformation, peace and national unity,

SEC. 9. Democratic Access. No student shall be denied admission to the MSUS by
reason of age, gender, nationality, religious belief, or political opinion or affiliation. The
University shall take affirmative steps to enhance the access of disadvantaged students
toits programs and services.

SEC. 10. Institutional Autonomy. To provide greater flexibility, the University shall be
treated in the manner consistent with its institutional requirements as the national peace
university by service-wide agencies in the exercise of their respective jurisdictions.
Taking into account national goals and priorities, the University shall exclusively
determine its teaching, research and extension thrusts, plans, policies, programs and
standards and on the basis of such determination, the University shall recommend its
annual budget to the President of the Republic of the Philippines and Congress.

SEC.11. The Board of Regents. The government of the MSUS is vested in a Board of
Regents, hereinafter referred to as the Board, composed of the following

4) The Chairperson, Commission on Higher Education as Chairperson;
2) The President, Mindanao State University as Vice Chairperson;

3) The Chairperson, Senate Committee on Education, Arts and Culture;
4)
5
6)
7

The Chairperson, House Committee on Higher and Technical Education;

The Secretary, Department of Budget and Management;

The Director-General, National Economic and Development Authority;

The Chairperson, Education, Culture and Sports Committee of the ARMM
Legislative Assembly;

8)
9
10) The President, Federation of Mindanao State University Supreme Student

The National President, Mindanao State University Alumni Association;
The President, MSU System Faculty Federation;

Councils;

11) One (1) Staff Regent from the rank and file represented by the duly elected
president of system-wide non-academic personnel federation duly accredited by
the Civil Service Commission;


42)One (1) Regent representing the ethno-linguistic groups from Central Mindanao;

43)One (1) Regent representing the ethno-linguistic groups from Western Mindanao
and Zamboanga Peninsula;

44)One (1) Regent representing the Indigenous Peoples of Mindanao; and

45) One (1) Regent who is prominent national educator and who is not presently
employed in any of the MSU campuses.

The four (4) regents representing the ethno-linguistic groups, indigenous
peoples, and the prominent national educator shall be chosen from a list of at least
three (3) nominees by a BOR-designated search committee and elected by the BOR for
a term of two (2) years; Provided, that the Regents holding office as members of the
BOR at the time of the effectivity of this Act shall continue to serve until the expiration of
their appointment.

In case of vacancy among appointive positions in the BOR, such vacancy shall
be filled by the BOR following guidelines set by it and such appointee shall hold office
for the unexpired term.

Members of the BOR shall receive a monthly honorarium and necessary
‘expenses incurred in attendance of meetings of the BOR and other official business, as
authorized by the BOR under existing laws.

SEC.12. Powers of the Board. The administration of the University and the exercise of
its corporate powers are vested upon the Board, which shall exercise the following
specific powers and duties:

a) Define the thrusts of the University and adopt broad policy guidelines to ensure
their implementation;

b) Preserve the integrity of the Mindanao State University System;

¢) Approve the creation, merger or abolition of academic programs upon
recommendation of the System University Council through the University
President;

d) Approve the graduation of students and grant of honors, as recommended by
their respective University Councils, through the University President;

e) Confer honorary degrees upon persons in recognition of learning, statemanship
of eminence in literature, science , or art upon recommendation of a committee
created by the University President;

f) Approve rules on student discipline upon recommendation of the University
Council through the University President;

g) Create, organize, reorganize, merge or abolish constituent campuses, colleges,
institutes and other academic and administrative units of the University upon
recommendation of the University President;


h) Establish professorial chairs and award the same to appropriate recipients upon
recommendation of the University President;

i) Provide fellowships, scholarships and grants and to award the same to faculty,
staff and students giving evidence of merit;

}) Elect the University President for a term of six (6) years from a list of at least
three nominees by a search committee appointed by the BOR. In the event of a
vacancy, the BOR shall, within six months, elect a president;

k) Appoint faculty members, officials and employees to draw up a position
classification and compensation plan for them, and any law to the contrary
notwithstanding, to fix and adjust salaries and benefits of all employees; to
determine their hours of service, and such other terms and conditions as it may
deem proper, grant leave of absence, at its discretion, under such regulations as
it may promulgate, and to remove them for cause, as provided by law after due
investigation and proper hearing

|) Extend with their consent, the tenure of faculty members beyond the compulsory
retirement age, on recommendation of the concerned units and the endorsement
of the University President, whenever their services are needed; Provided,
however, that no extension of tenure shall be made for a faculty member beyond
the age of seventy (70);

m) Fix tuition and other school fees and charges, which along with government
subsidies and other incomes generated by the University, shall constitute special
trust funds, which shall be deposited in an authorized government depository
bank. These funds and alll interests accruing therefrom shall be retained for the
use of the University.

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

©) Authorize the construction or repair of University buildings, machinery, equipment
and other facilities, and the purchase and acquisition of real and personal
properties, including necessary supplies, materials and equipment for the
University;

p) If the University, for reasons beyond its control, will not be able to pursue any
project or program for which funds have been appropriated and/or allocated, the
same funds may be used by the University, subject to the approval of the BOR;
Provided, that funds collected from students for a specific purpose shall not be
reprogrammed to other expenditures;

q) Receive in trust legacies, gifts, and donations of real and personal properties of
all kinds and to administer and dispose of the same for the benefit of the
University, subject to the instructions, if any, of the donors;


1) Enter into business and industry for the profitable development and management
of the economic assets of the University, the proceeds from which shall be used
to develop and strengthen the University;

s) Authorize its faculty and staff to travel abroad in order to study, read papers,
attend conferences and disseminate research, all provisions of law to the
contrary notwithstanding;

t) Exercise the general powers set out in the Corporation Code;

U) Delegate any of its powers to the University President or any other official, as it
may deem necessary;

v) Prescribe rules and regulations for the governance of the University; and

w) Exercise such other powers, not contrary to law, as may be proper and
necessary to carry out the objectives of this Act

SEC. 13. Meetings and Quorum. The Board shall meet regularly once every quarter.
The University President, as Vice Chairperson, in consultation with the Chairperson,
shall schedule meetings of the Board. The Chairperson may call a special meeting
whenever necessary; Provided, that members are notified in writing at least ten (10)
working days prior to the meeting. Provided, further, that the notice shall contain a brief
description of the agenda items to be discussed, A simple majority of all members of
the BOR holding office at the time the meeting is called shall constitute a quorum. In
accordance with existing laws and jurisprudence, no designated proxy by a BOR
member may be allowed to participate in the BOR deliberation or cast a vote thereat

SEC.14. The University President. The University President shall be elected by the
BOR from a list of at least three nominees by a Board-constituted Search Committee
and shall serve for a single term of six years. The University President shall be the
Chief Executive Officer, the Chief Academic Officer, and the head of the University
Faculty. The University President shall exercise the powers specifically provided for in
this Act, those determined by the BOR, those which usually pertain to the office of the
president of a university, and those, which are related to its functions. The
compensation of the University President shall be equivalent to the salary of a
Department Secretary.

SEC.15. The Secretary of the University and of the Board. There shall be a
Secretary of the University, who shall also serve as Secretary to the BOR, appointed by
the Board upon recommendation of the University President. The Secretary shall be
the custodian of all official records of the University

SEC.16. The University Council and Constituent Campus Councils. There shall be
a System University Council consisting of the University President as its Chairperson,
the Chancellors, and representatives of the various Constituent Campus Councils;
Provided, that there shall be one representative for every twenty such members


The Constituent Campus Council, composed of the Chancellor as Chairperson,
the Vice-Chancellors, Deans, and all faculty members with the academic rank of
assistant professor or higher, shall meet, evaluate and recommend campus agenda to
the System University Council

SEC.17. The University Council. The University Council shall be the highest
academic body of the University and shall exercise the following powers:

a) Prescribe the academic programs, including their institution, revision, abolition or
merger, subject to the approval of the Board on recommendation by the
University President:

b) Fix the requirements for admission to any college or unit, graduation, and the
grant of honors

c) Recommend to the Board, through the University President, graduation of
students and grant of honors;

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

€) Adopt internal rules of procedure consistent with the provisions of this Act

SEC.18, The Chancellor of a Constituent Campus. The administration of each
Constituent Campus is vested in the Chancellor, insofar as authorized by the Board and
the University President, The Chancellor shall be elected by the Board, upon
nomination of the University President, from a list of at least three (3) nominees by a
search committee appointed by the University President in accordance with guidelines
as may be determined by the Board. The Chancellor shall perform duties and functions
mandated by this Act, under the supervision of the University President. The
Chancellor shall serve a term of three (3) years without prejudice to reappointment for
one (1) final term. The compensation of the Chancellor shall be equivalent to the salary
of an Undersecretary.

SEC.19, The Faculty. The teaching staff of each college shall constitute its faculty,
which shall be presided over by a Dean, who shall be appointed by the University
President on nomination by the Chancellor, subject to the confirmation of the Board.

SEC. 20. Requisites of Appointment and Practice of Profession. Faculty members,
as well as Research, Extension and Professional Staff (REPS) of the University, shall
be exempt from any civil service examinations or regulation as a requisite for
appointment. All provisions of existing law to the contrary notwithstanding, licensing
requirements by professional regulatory boards shall not be required in the appointment
of faculty members. No religious or political opinions and affiliations shall be made a
matter of examination or inquiry

All provisions of law to the contrary notwithstanding, the Board of Regents, upon
the recommendation of the University President, may grant permit for the practice of


profession to professors, instructors, teachers or academic staff, provided, that they are
not assigned to perform administrative functions and that the said practice will not
jeopardize their services to the University.

SEC. 21. Student Councils. There shall be established a College Student Council in
every college or degree-granting unit; a University Student Council for every constituent
campus; and a Federation of University Student Council for the University System.

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

Student publications are encouraged in every college, unit, or constituent
campus to be funded from student fees, subject to supervision by designated faculty
advisers. Freedom of expression and autonomy in all matters of editorial and fiscal
policy shall be guaranteed, especially in the selection of editors and staff, provided that
there shall be strict adherence to the canons of responsible journalism.

SEC. 22. Tax Exemptions. All provisions of existing laws to the contrary
notwithstanding, all revenues and assets of the MSUS used for educational purposes or
in support thereof shall be exempt from all taxes and duties:

a) Gifts and donations of real and personal properties of all kinds to the University
shall be exempt from the donor's tax and the same shall be considered as
allowable deductions from the gross income of the donors, 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 of 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;

b) Importation of economic, technical, vocational, scientific, philosophical, historical
and cultural books, supplies, materials and equipment, including computer
software and hardware, duly certified by the University President, shall be
exempt from customs duties; and

©) The University shall be exempt from the payment of value added tax for all
transactions subject to the said tax.

SEC. 23. Land Grants and Other Real Properties of the University. The State shall
provide subsidy for the University in the form of a lump sum amount, through general
appropriations and other financial benefits, and in kind, through land grants, donations


and use of other real properties. All incomes derived from the land grants and other
real properties shall be used by the University, as may be decided by the BOR:

a) Such parcels of land ceded by law, decrees or presidential issuances to the
University, are hereby declared reserved for the purposes intended. The
absolute ownership of the University over these landholdings, including those
covered by original and transfer certificates of title in the name of the University,
is hereby confirmed;

b) The BOR may confirm contracts, mechanisms, and financial instruments, such
as joint ventures, long-term leases, securitization and the like, entered into by the
University President: 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 University,

c) The BOR may allow the use of the income derived from real properties of the
University as security for financial transactions to generate additional revenues
when needed for education purposes;

d) The BOR may approve the implementation of joint venture agreements:
Provided, that in the event that real properties of the University are involved, only
incomes from the use of the said real properties shall be pledged in the joint
ventures; Provided, further, that no joint venture shall result in the alienation of
the real properties of the University; and

e) Any plan to generate revenues and other sources from land grants and other real
properties entrusted to the University shall be consistent with the academic
mission and orientation of the University; Provided, that such programs, projects
or mechanisms shall be approved by the BOR; Provided, further, that funds
generated from such programs, projects or mechanisms shall not be construed to
replace, in part or in whole, the annual government appropriations to the
University.

SEC. 24. Auditing of Accounts. The Commission on Audit shall audit all accounts and
disbursements of the University.

SEC. 25. Institutional Autonomy. To provide greater flexibility to the University, it
shall be treated in a manner consistent with its institutional requirements as a
comprehensive university by all service-wide agencies in the exercise of their respective
jurisdiction.

SEC. 26. Fiscal Autonomy of the Constituent Campuses. No portion of the funds
appropriated or allocated for a constituent campus shall be disbursed by the System
Administration.

SEC. 27. 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 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, the same shall be resolved in favor of the academic freedom
and fiscal autonomy of the University.

SEC. 28. Appropriations. The amount needed to carry out the implementation of this,
Act shall be charged against the current fiscal year’s lump sum appropriations and other
internal funds of the University. Thereafter, such lump sum representing the national
government's assistance for the continued implementation of this Act shall be included
in the Annual General Appropriations Act

The University may use unexpended balances in any appropriation for purposes that
the Board of Regents determines. In addition to the regular appropriations and
increases for the University under the annual GAA, a peace-building and development
fund shall be appropriated equitably among Constituent Campuses in the amount of
One Billion Pesos (P1,000,000,000.00) per year for a period of five years, which shall
likewise be included in the annual GAA

SEC. 29. Transitory Provision. MSU shall, in addition to its laboratory high schools,
continue to operate its feeder community high schools located in conflict-affected areas
pursuant to its original mandate.

SEC. 30. Separability Clause. Should any provision herein be declared
unconstitutional, the same shall not affect the validity of the other provisions of this Act.

SEC. 31. Repealing Clause. Republic Act No. 1387,RA No. 1893, RA No. 3860,
Memorandum Order No. 45, Executive Order No. 3 and all laws, decrees, orders, rules,
and regulations or other issuances or parts thereof inconsistent with the provisions of
this Act are hereby repealed or modified accordingly.

SEC. 32. Effectivity Clause. This Act shall take effect fifteen (15) days after its
publication in the Official Gazette or in a newspaper of general circulation.

Approved,