Republic of the Philippines

House of Representatives
Quezon City, Metro Manila

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Nineteenth Congress
First Regular Session

HOUSE BILL NO. 2371

Introduced by Representative Rudy S. Caoagdan

EXPLANATORY NOTE

This bill seeks to convert the Cotabato Foundation College of Science
and Technology (CFCST) in the Municipality of Arakan, Province of Cotabato,
into a state university to be known as the Cotabato Foundation State University.

The CFCST, formerly the Children’s Education Foundation Village, was
established in June 1967 by virtue of Republic Act No. 3801, entitled “An Act
Creating the Children’s Education Foundation Village.” Its initial mission was
to provide care and education for malnourished and impoverished children,
particularly those from the minority tribes in Arakan Valley, Province of
Cotabato. It then evolved into a junior college and offered vocational and
technical training and two-year associate degree programs to serve the growing
educational needs of its graduates. In 1983, under Batas Pambansa Bilang 408,
the former Children’s Education Foundation Village was eventually converted
into a state college and was renamed as the Cotabato Foundation College of
Science and Technology. The CFCST is presently a Level III state college
where undergraduate, graduate, post-graduate, and other professional programs
in various fields such as Agriculture, Home Economics, Forestry, Agribusiness,
Education, Rural Development, and Agronomy are being offered. Aside from
the degree programs, the CFCST still operates its original elementary and
secondary education programs and the custodial care program orphanage center
as part of its core mandate.

Pursuant to its fundamental purpose of producing quality and globally
competitive graduates, the CFCST significantly contributes to the improvement
of the socio-economic condition of its students by providing access to relevant



vocational, technological, and professional training and __ industrial
apprenticeship following national and global educational standards. Its vision
to become a “Haven of Intellectuals in 2023” remains in sight as it actively
promotes research, advanced studies, and progressive leadership in each area of
specialization. Since its establishment, the CFCST has been consistently
providing high-level education and contributing to the socio-economic progress
of Region XII.

The conversion of the CFCST into a state university will further
guarantee that students from remote communities with limited resources and
low-income families in the region may have access to free and high-quality
education at all levels as guaranteed by the Constitution. This will also help
build a generation of informed and educated Filipinos armed with a set of skills
required for productive employment and economic development.

In view of the foregoing, approval of this bill is earnestly sought.

UDY S. CAOAGDAN
resentative
nd District, North Cotabato


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Republic of the Philippines

House of Representatives
Quezon City, Metro Manila

Nineteenth Congress
First Regular Session

HOUSE BILL NO. 2371

Introduced by Representative Rudy S. Caoagdan

AN ACT
CONVERTING THE COTABATO FOUNDATION COLLEGE OF
SCIENCE AND TECHNOLOGY IN THE MUNICIPALITY OF
ARAKAN, PROVINCE OF COTABATO, INTO A STATE UNIVERSITY
TO BE KNOWN AS THE COTABATO FOUNDATION STATE
UNIVERSITY AND APPROPRIATING FUNDS THEREFOR

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

SECTION 1. Cotabato Foundation State University. — The Cotabato
Foundation College of Science and Technology (CFCST) located in the
Municipality of Arakan, Province of Cotabato is hereby converted into a state
university, to be known as the Cotabato Foundation State University, hereinafter
referred to as the University.

The University may establish regular campuses, branches, and extension

sites and programs upon the effectivity of this Act.



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SEC. 2. General Mandate. -- The University shall primarily provide
advance instruction and professional training in education, agriculture and
forestry, environment studies, engineering and technology, communication and
information technology, pure and applied sciences, behavioral and social
sciences, law, culture and arts, tourism and business-related programs, nautical
and maritime programs, health-related programs, developmental management
and leadership programs, health sciences, and other relevant fields of study. It
shall also promote and undertake research, extension services, and production
activities in support of the socio-economic development of the Province of
Cotabato and provide progressive leadership in its areas of specialization.

SEC. 3. Curricular Offerings— The University shall offer elementary,
secondary, undergraduate, graduate and post-graduate programs, and short-term
courses in the fields of education, agriculture and forestry, environment studies,
engineering and technology, communication and information technology, pure
and applied sciences, behavioral and social sciences, law, culture and arts,
tourism and business-related programs, nautical and maritime programs, health-
related programs, developmental management and leadership programs, health
sciences, and other degree courses within its areas of specialization and
according to its capabilities, as the Board of Regents may deem necessary to
carry out its objectives, particularly in meeting the needs of the Province of

Cotabato and Region XII.


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The University shall operate a reasonably-sized laboratory school and
training center for child welfare development studies under its College of
Education.

SEC. 4. Administration. — The University shall have the general powers
of a corporation set forth in Republic Act No. 11232, otherwise known as the
“Revised Corporation Code of the Philippines.” The administration of the
University and the exercise of its corporate powers shall be vested exclusively
in the Board of Regents and the president of the University.

SEC. 5. Governing Board. — The governing body of the University is the
Board of Regents, hereinafter referred to as the Board, which is composed of
the following:

(a) Chairperson of the Commission on Higher Education (CHED), as
chairperson;

(b) President of the University, as vice chairperson:

(c) Chairperson of the Committee on Education, Arts and Culture of the
Senate;

(d) Chairperson of the Committee on Higher and Technical Education of
the House of Representatives;

(e) Chairperson of the Committee on Basic, Higher and Technical
Education under the Bangsamoro Transition Authority Parliament or, thereafter,
a regular Member of Parliament of the Bangsamoro Autonomous Region in

Muslim Mindanao;


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(f) Regional director of the National Economic and Development
Authority;

(g) Regional director of the Department of Science and Technology;

(h) Regional director of the Department of Agriculture;

(i) President of the federation of faculty associations of the University;

(j) President of the federation of student councils of the University;

(k) President of the federation of alumni associations of the University;
and

(1) Two (2) prominent citizens from the private sector who have
distinguished themselves in their profession or in the fields of specialization; as
members.

The Board shall appoint the two (2) prominent citizens from among a list
of at least five (5) qualified persons in the Province of Cotabato, as
recommended by the search committee constituted by the president of the
University, in consultation with the chairperson of the CHED and the other
members of the Board, based on the normal standards and qualifications for the
position set by the Board.

The president of the federation of faculty associations, the president of
the federation of student councils, and the president of the federation of alumni
associations of the University shall serve in the Board only for the duration of

their terms of office, as set forth in their respective constitutions and by-laws.


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

SEC. 6. Promulgation and Implementation of Policies. — The Board
shall promulgate and implement policies in accordance with the declared State
policies on education and other pertinent provisions of the Philippine
Constitution on education, agriculture, science and technology, as well as the
policies, standards and thrusts of the CHED under Republic Act No. 7722,
otherwise known as the “Higher Education Act of 1994.”

SEC. 7. Powers and Duties. — In addition to its general powers of
administration and the exercise of all the powers granted to the board of
directors of a corporation under existing laws, the Board shall have the
following specific powers and duties,:

(a) Promulgate rules and regulations not contrary to law as may be
necessary to carry out the purposes and functions of the University;

(b) Receive and appropriate all sums as may be provided for the support
of the University in the manner it may determine, in its discretion, in order to
carry out the purposes and functions of the University;

(c) Import duty-free economic, technical, and cultural books and
publications, machineries and equipment, upon certification by the CHED that
such imported books or publications, machineries and equipment are for

economic, technical, vocational, scientific, philosophical, historical or cultural


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purposes, in accordance with the provisions of Republic Act (RA) No. 10863,
otherwise known as the “Customs Modernization and Tariff Act”;

(d) Receive in trust legacies, gifts, and donations of real and personal
properties of all kinds, and administer and dispose of the same when necessary
for the benefit of the University, and subject to the limitations, directions and
instructions of the donor, if any;

Such donations shall be exempt from the donor's tax and the same shall
be considered as allowable deductions from the gross income in the
computation of the income tax of the donor, in accordance with the provisions
of the Tax Reform Act of 1997, as amended: Provided, That such donations
shall not be disposed of, transferred or sold;

(e) Fix the tuition fees and other necessary school charges including
matriculation, graduation and laboratory fees, as the Board may deem proper to
impose, after due consultations with the involved sectors: Provided, That such
fees and charges, including government subsidies and other income generated
by the University, shall be considered as special trust funds and shall be
deposited in any authorized government depository bank, and all interests that
shall accrue therefrom shall form part of the same funds for the use of the
University: Provided, further, That any provision of existing laws, rules and
regulations to the contrary notwithstanding, any income generated by the
University from tuition fees and other charges, as well as from the operation of

auxiliary services and land grants, shall be retained by the University, and may


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be disbursed by the Board for instruction, research, extension or other programs
or projects of the University: Provided, finally, That all fiduciary fees shall be
disbursed for the specific purposes for which these are collected.

If, for reasons beyond its control, the University shall not be able to
pursue any project for which the funds have been appropriated and allocated
under its approved program of expenditures, the Board may authorize the use of
said funds for any reasonable purpose which, in its discretion, may be necessary
and urgent for the attainment of the objectives and goals of the University;

(f) Adopt and implement a socialized scheme of tuition and school fees
for greater access to poor but deserving students in accordance with the
provisions of Republic Act No. 10931, or the “Universal Access to Quality
Tertiary Education Act”;

(g) Authorize the construction or repair of its buildings, machinery,
equipment, and other facilities, and the purchase and acquisition of real
property, including necessary supplies, materials and equipment;

(h) Appoint, upon recommendation of the president of the University,
vice presidents, deans, directors, heads of campuses, faculty members, and other
officials and employees of the University;

(i) Fix and adjust salaries of faculty members and administrative officials
and employees, subject to the provisions of the Revised Compensation and
Position Classification System and other pertinent budget and compensation

laws governing hours of service, and such other duties and conditions as it may


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deem proper; grant them, at its discretion, leaves of absence under such
regulations as it may promulgate, any provision of existing law to the contrary
notwithstanding; and remove them for cause in accordance with the
requirements of due process of law;

Gj) Approve the curricula, instructional programs, and rules of discipline
drawn by the administrative council and academic council herein provided;

(k) Set policies on admission and graduation of students;

(1) Award honorary degrees upon persons in recognition of their
outstanding contribution in the fields of education, public service, arts, science
and technology, agriculture or in any field of specialization within the academic
competence of the University, and authorize the awarding of certificates of
completion of non-degree and non-traditional courses;

(m) Establish and absorb non-chartered tertiary institutions within the
Province of Cotabato as branches and centers in coordination with the CHED,
and in consultation with the Department of Budget and Management (DBM),
and offer therein programs or courses, and promote and carry out equal access
to educational opportunities as mandated by the Constitution;

(n) Establish regular campuses, branches, and research and extension
centers of the University where such will promote the development of the
University;

(0) Establish professorial chairs in the University and provide fellowships

for qualified faculty members and scholarships to deserving students;


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(p) Delegate any of its powers and duties provided herein to the president
or other officials of the University as it may deem appropriate, to expedite the
administration of the affairs of the University;

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

(0) Collaborate with the governing boards of other state colleges and
universities within the Province of Cotabato or Region XII, under the
supervision of the CHED and in consultation with the DBM, and work towards
the restructuring of the University to become more efficient, relevant,
productive, and competitive;

(s) Enter into joint ventures with business and industry for the profitable
development and management of the economic assets of the University, the
proceeds from which shall be used for the development and strengthening of the
University;

(t) Develop consortia and other economic forms of linkages with local
government units, institutions and agencies, public and private, local and
foreign, in the furtherance of the purposes and objectives of the University;

(u) Develop academic arrangements for institutional capability building

with appropriate institutions and agencies, public and private, local and foreign,


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and appoint experts or specialists as consultants, part-time or visiting or
exchange professors, scholars or researchers, as the case may be;

(v) Set up the adoption of modern and innovative modes of transmitting
knowledge such as the use of information technology, the dual learning system,
open or distance education, and community laboratory for the promotion of
greater access to education;

(w) Establish policy guidelines and procedures for participative decision-
making and transparency within the University;

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

(y) Extend the term of the president of the University, whose performance
has been unanimously rated by the Board as outstanding beyond the age of
retirement, but not beyond the age of seventy (70), and upon unanimous
recommendation by the search committee.

SEC. 8. Meetings of the Board. — The Board shall regularly convene at
least once every quarter. The chairperson of the Board may, upon three (3) days
prior written notice to the members, call a maximum of two (2) special meetings
whenever necessary.

A quorum of the Board shall consist of majority of all its members
holding office at the time of the meeting: Provided, That the chairperson of the

Board or the president of the University is among those present in the meeting.


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In the absence of the chairperson of the CHED, a commissioner of the
CHED, duly-designated by the CHED chairperson, shall represent the latter in
the meeting, with all the rights and responsibilities of a regular member:
Provided, That during this meeting, the president of the University as vice
chairperson shall be the presiding officer: Provided, further, That this provision
notwithstanding, the chairperson of the CHED is hereby authorized to designate
a CHED commissioner as the regular chairperson of the Board, in which case
said CHED commissioner shall act as the presiding officer.

In case the chairpersons of the congressional committees on education
may not be able to attend the Board meeting, they may duly designate their
respective representatives to attend the meeting, who are entitled the same rights
and responsibilities as a regular member of the Board.

The members of the Board shall not receive any salary but are entitled to
reimbursements for actual and necessary expenses incurred, either in their
attendance to meetings of the Board or in connection with other official
business authorized by resolution of the Board, subject to existing laws and
regulations.

SEC. 9. University President. - The University shall be headed by a
president who shall render full-time service. The president shall be appointed by
the Board, subject to the guidelines, qualifications and standards set by the
Board, upon recommendation of a duly constituted search committee. The

president shall serve a term of four (4) years and shall be eligible for


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reappointment for another term: Provided, That in order to effect a smooth
transition to a state university, the incumbent president of the CFCST shall
serve as the first president of the University: Provided, further, That for said
reason and pending the appointment of a new president, the chairperson of the
CHED shall appoint an officer-in-charge of the University.

Within six (6) months before the expiration of the term of office of the
incumbent president of the University, the Board shall constitute the search
committee for the presidency.

In case of vacancy in the office of the president by reason of death,
compulsory retirement, resignation, removal for cause, or incapacity of the
president to perform the functions of the office, the Board shall designate an
officer-in-charge of the University within six (6) months from the date of
vacancy, pending the appointment of a new president. The successor or the
officer-in-charge shall serve only the unexpired portion of the term.

The powers and duties of the president of the University, in addition to
those specifically provided in this Act, shall be those usually pertaining to the
office of the president of similar universities, and those delegated by the Board.

The salary of the president of the University shall be in accordance with
the Revised Compensation and Position Classification System and shall be
comparable to that being received by presidents of similar educational

institutions.


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The president of the University shall be assisted by a vice president for
academic affairs and a vice president for administration, who shall be appointed
by the Board upon recommendation of the president.

SEC. 10. Administrative Council. — There shall be an administrative
council consisting of the president of the University as chairperson, and vice
presidents, deans, directors and other officials of equal rank as members, whose
duties are to review and recommend to the Board the policies governing the
administration, management, and development planning of the University.

SEC. 11. Academic Council. — There shall be an academic council to be
composed of the president of the University, who shall act as chairperson, and
all academic staff with the rank of at least assistant professor, as members.

The academic council shall have the power to review and recommend the
curricular offerings and rules of discipline of the University, subject to the
approval of the Board. It shall fix the requirements for the admission of
students, as well as for their graduation and conferment of degrees, subject to
the review and approval by the Board through the president of the University. It
shall have the disciplinary power over students of the University and shall
formulate academic policies and rules and regulations on discipline, subject to
the approval of the Board.

SEC. 12. University Secretary. — The Board shall appoint a secretary,
who shall serve as such for both the Board and the University and shall keep all

records and proceedings of the Board. The secretary of the University shall


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serve upon each member of the Board the appropriate notice of the Board
meetings.

SEC. 13. University Treasurer. — The Treasurer of the Philippines shall
be the ex officio treasurer of the University.

SEC. 14. Faculty. — No political belief, gender preference, cultural or
community affiliation or ethnic origin, and religious opinion or affiliation shall
be a matter of inquiry in the appointment of faculty members of the University:
Provided, That the appointment shall be subject to the guidelines, qualifications
and standards set by the Board: Provided, further, That no member of the
faculty shall teach for or against any particular church or religious sect.

SEC. 15. Scholarship Program and Admission. — The University shall
provide a scholarship program and other affirmative action programs to assist
poor but deserving students who qualify for admission to the University. No
student shall be denied admission to the University by reason of sex, religion,
cultural or community affiliation or ethnic origin.

SEC. 16. Custodial Care to Children of Adversity. — Pursuant to the
original mandate of CFCST, the University shall continue to provide custodial
care and vocational education to children of adversity aged seven (7) to fifteen
(15) years, such as orphans, homeless, neglected children, indigent children
from broken homes, and children from poverty-stricken families, in the

Municipality of Arakan, Province of Cotabato.


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SEC. 17. Academic Freedom and Institutional Autonomy. — The
University shall enjoy academic freedom and institutional autonomy pursuant to
Section 5 (2), Article XIV of the Constitution of the Republic of the Philippines.

SEC. 18. Authority to Loan or Transfer Apparatus, Equipment,
Supplies and Detail of Personnel. — The heads of the bureaus and offices of the
national government are hereby authorized to loan or transfer, upon the request
of the president of the University, such apparatus, equipment or supplies as may
be needed by the University, and to detail employees for duty therein when, in
the judgment of the head of the bureau or office, such apparatus, equipment,
supplies or services of such employees may be spared without serious detriment
to public service. The employees detailed shall perform such duties as required
of them by the president of the University, and the time employed shall be
counted as part of their regular services.

SEC. 19. Tax Exemptions. — The University is entitled to the following
tax exemptions:

(a) All revenues and assets of the University used exclusively and
solely for educational purposes or in furtherance thereof shall be exempt from.
all taxes and duties;

(b) All grants, bequest, endowments, donations and contributions
made to the University to be used actually, directly and exclusively by the
University shall be exempt from donor's tax and the same shall be allowed as

allowable deductions from the gross income of the donor for purposes of


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computing the taxable income of the donor in accordance with the provisions
of the Tax Reform Act of 1997, as amended;

(c) Importation of economic, technical, and cultural books or
publications, which are for economic, technical, vocational, scientific,
philosophical, historical or cultural purposes made by the University upon
certification by the CHED shall be exempt from customs duties in accordance
with the provisions of RA 10863;

(d) | The University shall be exempt from value-added tax as provided
for in Section 109 (1)(H) of the Tax reform Act of 1997, as amended; and

(e) All educational monetary awards shall be exempt from income tax
as prescribed in the Tax reform Act of 1997, as amended.

SEC. 20. Assets, Liabilities and Personnel. — All assets, real and
personal, personnel, and records of the CFCST, as well as liabilities or
obligations, are hereby transferred to the University.

The positions, rights, and security of tenure of faculty members and
personnel therein employed under existing laws prior to the conversion into a
University shall be respected.

All parcels of land belonging to the government occupied by the CFCST
are hereby declared to be property of the University and shall be titled under
that name: Provided, That should the University cease to exist or be abolished

or should such parcels of land aforementioned be no longer needed by the


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University, the same shall revert to the local government units where the parcels
of land are located.

SEC. 21. Development Plan, Management Audit and Academic
Structure. — Within the period of one hundred twenty (120) days after the
approval of this Act, the University shall accomplish the following:

(a) Submit a five-year development plan, including its corresponding
program budget to the CHED, for corresponding recommendation to the DBM;

(b) Undergo a management audit in cooperation with the CHED; and

(c) Set up its organizational, administrative as well as academic structure,
including the appointment of the key officials of the University.

SEC. 22. Compliance with CHED Requirements. — The provisions of
this Act notwithstanding, the conversion of the institution into a state university
shall become effective only upon the determination and declaration by the
CHED, based on the recommendation of a panel of experts that the institution
has complied with the requirements for the grant of university status. The
CHED, through its regional office, shall regularly provide technical assistance
to the institution and monitor compliance with the requirements of CHED.

The CHED shall constitute a panel of experts who shall prepare a
recommendation to the chairperson of the CHED, on whether the institution has
complied with the requirements for the grant of university status. The following

are the operational requirements for a state university:


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(a) Faculty members who possess relevant degrees in their areas of
specialization as required by the CHED, and who must have participated in
research and development activities in their respective disciplines, as evidenced
by refereed publications and other scholarly outputs;

(b) A comprehensive range of degree programs in all levels, from basic
post-secondary to doctoral programs;

(c) Viable research programs in specific areas of study that produce new
knowledge as evidenced by refereed publications, citations, inventions and
patents, among others;

(d) Comprehensive learning resources and support structures including
libraries, practicum laboratories, relevant educational resources and linkages
with the relevant disciplinal and professional sectors, to allow students to
explore basic, advance and even cutting-edge knowledge in a wide range of
disciplines or professions;

(e) Active and ongoing linkage and affiliation with other research
institutions in various parts of the world that ensure that the research activities
of the university are functioning at current global standards; and

(f) Outreach activities that allow the students, faculty and research staff to
apply the new knowledge they generate to address specific social development
problems broadly defined.

The institution shall retain its status prior to the effectivity of this Act

until it is able to comply with the requirements provided in this Act.


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SEC. 23. Suppletory Application. — The provisions of Republic Act No.
8292, otherwise known as the “Higher Education Modernization Act of 1997,”
shall be an integral part of this Act and shall serve as part of the governing
charter of the University.

SEC. 24. Parity Clause. — All other powers, functions and privileges,
responsibilities and limitations to state universities and their officials under
existing laws shall be deemed granted to or imposed upon the University and its
officials, whenever appropriate.

SEC. 25. Appropriations. - The amount necessary to carry out the
provisions of this Act shall be charged against the current year's appropriations
of the CFCST. 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.

SEC. 26. Implementing Rules and Regulations. — Within ninety (90)
days from the approval of this Act, the Board shall, in consultation with the
CHED, formulate the necessary rules and regulations for the effective
implementation of this Act.

SEC. 27. Separability Clause. — |f any part or provision of this Act is
declared invalid or unconstitutional, the remaining parts or provisions not

affected shall remain in full force and effect.


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SEC. 28. Repealing Clause. — All laws, presidential decrees, executive
orders, rules and regulations contrary to or inconsistent with the provisions of
this Act are hereby repealed or modified accordingly.

SEC. 29. Effectivity. - This Act shall take effect fifteen (15) days after its
publication in the Official Gazette or in a newspaper of general circulation.

Approved,