.' 
SIXTEENTH CONGRESS OF THE 
) 
REPUBLIC OF THE PHILIPPINES 
) 
Second Regular Session 
) 
'14 
JtJN 26 P5 :51 
SENATE 
S.No. 2291 
Introduced by Senator Ralph G. Recto 
AN ACT 
CREATING A REGIONAL STATE UNIVERSITY SYSTEM IN DAVAO REGION TO 
BE KNOWN AS THE DAVAO REGIONAL STATE UNIVERSITY SYSTEM BY 
INTEGRATING THE UNIVERSITY OF SOUTHEASTERN PHILIPPINES, THE 
DAVAO DEL NORTE STATE COLLEGE, THE DAVAO ORIENTAL STATE 
COLLEGE OF SCIENCE AND TECHNOLOGY, THE SOUTHERN PHILIPPINES 
AGRIBUSINESS AND MARINE AND AQUATIC SCHOOL OF TECHNOLOGY, AND 
THE COMPOSTELA VALLEY STATE COLLEGE AND APPROPRIATING FUNDS 
THEREFOR 
Explanatory Note 
This bill seeks to restructure Davao Region's higher education system by integrating 
some of its state universities and colleges (SUCs) into a single regional state university system to 
minimize duplication in the delivery of programs, and improve the quality and efficiency of the 
academic and administrative capacities of its public Higher Education Institutions (HEIs). 
A study using data fi'om 1995-2010 reveals that, on the average, only 14% of total 
National Government (NG) education spending is allocated to higher education as a result of 
priority funding for basic education. Moreover, NG spending on SUCs declined from 0.5% of 
GDP in 1998 to an average of 0.3% in 2005-2010. This reduced allocation results to a decreasing 
total SUC spending per student. l Merging a number of HEIs into a Regional University System 
will help address their financial woes and will allow them to maximize the country's resources to 
deliver a more focused and targeted approach to higher learning. 
The Davao Region has been chosen by the Commission on Higher Education as pilot 
region for a Regional State University System because of its favorable conditions and 
adVantages. The creation of the Davao Region State University System (DRSUS) is part of the 
Gommission's long-term higher education plan strategy of rationalizing higher education by 
reducing the number ofSUCs in the country by at least 10 percent. 
The DRSUS integrates the University of Southeastern Philippines, the Davao del Norte 
State College, the Davao Oriental State College of Science and Technology, the Southern 
Philippines Agribusiness and Marine and Aquatic School of Technology, and the Compostela 
Valley State College, Davao Region's four local colleges: the Kapalong College of Agriculture, 
Sciences and Technology, the Governor Generoso College of Arts, Sciences and Technology, the 
Monkayo College of Arts, Sciences and Technology, and the Kolehiyo ng Pantukan shall also be 
integrated in the system through the respective state colleges operating in their respective 
proVinces. 
I MaImsan, Rosario G. 2012. PIDS Development Research News Vol. XXX No.2, RationaliZing the Public Higher 
EdUcation Service. [online] http://dirp3.pids.gov.ph/ris/drnlpidsdrnI2-2.pdf. Accessed on June 25, 2014 


" 
It is hoped that the integration of these Davao SUCs and LUCs would provide a unified 
corporate structure that guarantees hannonized and common academic standards, and promote 
synergy among tbe system as it allows more developed units to assist the developing ones 
through inter-institutional collaboration in research and extension, faculty and staff training, as 
well as, resource and facilities sharing. 
In view of the foregoing, immediate approval ofthis bill is earnestly sought. 
o 
/ejcv 


t' 
SIXTEENTH CONGRESS OF THE 
) 
REPUBLIC OF THE PHILIPPINES 
) 
Second Regular Session 
) 
'14 
JUN 26 P5:51 
SENATE 
S.No. 2292 
Introduced by Senator Ralph G. Recto 
AN ACT 
CREATING A REGIONAL STATE UNIVERSITY SYSTEM IN DAVAO REGION TO 
BE KNOWN AS THE DAVAO REGIONAL STATE UNIVERSITY SYSTEM BY 
INTEGRATING THE UNIVERSITY OF SOUTHEASTERN PHILIPPINES, THE 
DAVAO DEL NORTE STATE COLLEGE, THE DAVAO ORIENTAL STATE 
COLLEGE OF SCIENCE AND TECHNOLOGY, THE SOUTHERN PHILIPPINES 
AGRIBUSINESS AND MARINE AND AQUATIC SCHOOL OF TECHNOLOGY, AND 
THE COMPOSTELA VALLEY STATE COLLEGE AND APPROPRIATING FUNDS 
THEREFOR 
Be it enacted by the Senate and the House of Representatives of the Philippines in 
Congress assembled: 
I 
SECTION 1. Short Title, - This Act shall be known as the "Davao Regional State 
2 
University System Charter", 
3 
SEC. 2 .. Declaration of Policy. - The State shall promote, foster, nurture and protect the 
4 
right to accessible, equitable and quality education. Toward this end, the State shall integrate 
5 
higher educational institutions to build greater synergy among them, to enhance their academic 
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performance and mission, to democratize access to affordable quality educatiou, and to create a 
7 
greater critical mass for stronger efficiency and effectiveness in operations. Integration shall 
8 
promote fiscal efficiency and a broad spectrum of academic, research, extension, and production 
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services that are harmonized and complementary, responsive to the development needs of the 
10 
region and the nation. Through a refocused institutional culture and improved governance, the 
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integrated Davao Regional State University System shall aim to become the State's main higher 
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education provider in the region. 
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SEC. 3. Creation of the Davao Regional State University System. There is hereby created 
14 
a Regional State University System in Davao Region to be known as the Davao Regional State 
15 
University System hereinafter referred to as Regional University System by integrating the 
16 
University of Southeastern Philippines established pursuant to Batas Pambansa BIg. 12, the 
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Davao del Norte State College created pursuant to Republic Act No. 7879, the Davao Oriental 
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State College of Science and Technology established pursuant to Republic Act No. 6807, the 
19 
Southern Philippines Agribusiness and Marine and Aquatic School of Technology established 
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pursuant to Batas Pambansa Big. 148, and the Compostela Valley State College established 
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pursuant to Republic Act No. 10598, herein referred to as the Autonomous Campuses (ACs). 
Page 1 of 13 


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Every Autonomous Campus of the Regional University System shall be autonomous in fiscal 
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management, program formulation and implementation. 
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On account of its extensive geographical coverage and strategic role in the establishment 
4 
of the Regional University System, the University of Southeastern Philippines shall serve as the 
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seat of administration of the Regional University System. It shall be composed of two 
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autonomous campuses, namely: (I) the Obrero-Mintal Campus and (2) the Tagum-Mabini 
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Campus. The Bislig Campus located in the Caraga Region shall, at the expressed option of the 
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constituencies of the academic unit, either be incorporated into a future amalgamated university 
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system in Caraga Region that may be created or be annexed as an external campus of the most 
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contiguous State college or university in that region. 
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In furtherance of their contribution to educational excellence in public higher education, 
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Davao Region's four local colleges, namely: the Kapalong College of Agriculture, Sciences and 
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Technology, the Governor Generoso College of Arts, Sciences and Technology, the Monkayo 
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College of Arts, Sciences and Technology, and the Kolehiyo ng Pantukan, shall be integrated 
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into the Regional University System as autonomous campuses of the respective state colleges 
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operating in their respective provinces. Being products of local legislation, they shall continue to 
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be supported by the respective local government units that created them while participating in the 
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system-wide processes of the Regional University System. 
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The respective state and local colleges and state university may retain their original 
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names for historical reasons and for purposes of keeping their present identities under the 
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umbrella of the Davao Regional State University System. 
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SEC. 4. General Mandate. - The Regional University System shall provide a unified 
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corporate structure to guarantee common academic standards and institutional identity. It shall 
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foster complete unity and deep collaboration among autonomous campuses towards the 
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following strategic goals: 
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a) 
To create greater critical mass and economies of scale that will enable the 
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University System to achieve greater efficiency and effectiveness; 
b) 
To build greater synergy among the ACs to improve the Regional University 
System's academic portfolio, boost academic performance to higher levels, and 
enhance teaching quality in more diverse academic disciplines; 
c) 
To utilize governance structures more effectively by having a single governing 
board that can better focus on responding to development needs and combining 
disconnected academic and non-academic functions that can create additional 
capacity for other appropriate pursuits; and 
d) 
To ensure equitable allocation of all financial, human, logistical resources among 
ACs and programs. 
37 
SEC. 5. Administration. - The Regional University System shall have the general powers 
38 
of a corporation set fOith in Batas Pambansa Big. 68, as amended, otherwise known as· "The 
Page 2 of 13 


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Corporation Code of the Philippines.·' The administration of the University System and the 
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exercise of its corporate powers shall be vested exc! usively in the Board of Regents. 
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SEC. 6. Governing Board. - The Governing Board of the Regional University System 
4 
shall be the Board of Regents, hereinafter referred to as the Board, which shall be composed of 
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the following: 
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a) 
The Chairperson of the Commission on Higher Education (CHED) or 
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representative, as Chairperson; 
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b) 
The President of the Regional University System, as Vice-Chairperson; 
c) 
The Chaitperson of the Committee on Education, Arts and Culture of the Senate; 
d) 
The Chairperson of the Committee on Higher and Technical Education of the 
House of Representatives; 
e) 
The Chairperson ofthe Regional Development Council (RDC) XI; 
f) 
The Regional Director of the National Economic and Development Authority 
(NED A); 
g) 
The Regional Director of the Department of Science and Technology (DOST); 
h) 
The Regional Director of the Department of Agriculture (DA); 
i) 
The Chancellors of the Autonomous Campuses; 
j) 
The President of the Federation of faculty associations of the Regional University 
System; 
k) 
The President of the Federation of student ·governments of the Regional University 
System; 
1) 
The President of the Federation of alumni associations of the Regional University 
System; and 
m) 
Two (2) prominent citizens from the plivate sector who have distinguished 
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themselves in their profession or fields of specialization and are active in the 
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dominant industties in the Region that are directly relevant to the University's need 
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and external affairs, as member. 
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The Board of Regents shall appoint the two (2) prominent citizens fro~ 
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among the list of at least five (5) qualified persons who are residents of the Davao 
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Region, as recommended by a search committee constituted by the Regional 
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University System President, in consultation with the other members of the Board, 
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based on the normal standards and qualifications for the position. 
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The tenn of office of the president of the federation of faculty associations, the president 
34 
of the federation of student councils, and the president of the federation of alumni associations 
35 
shall be co-terminus with their respective tenns of office, as set fOlih in their respective 
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constitutions and by-laws. The two (2) prominent citizens shall serve for a term of two (2) years 
37 
from the date of their appointment. 
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SEC. 7. Promulgation and Implementation of Policies. - The Board shall promulgate and 
39 
implement policies in accordance with the declared State policies on education, including those 
Page 3 of13 


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stated in Section 2 hereof, and other pertinent provisions of the Philippine Constitution on 
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education, agriculture, science and technology. 
3 
SEC. 8. Powers and Duties of the Board of Regents. - The Board shall have the following 
4 
specific powers and duties, in addition to its general powers of administration and the exercise of 
5 
all the powers granted to the board of directors of a corporation under existing laws: 
6 
a) 
Promulgate rules and regulations not contrary to law as may be necessary to carry 
7 
out the purposes and functions of the Regional University System; 
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b) 
Receive and appropriate all sums as may be provided for the support of the 
Regional University System in the manner it may determine in its discretion, in 
order to carry out the purposes and functions of the Regional University System; 
c) 
Import duty-free economic, technical and cultural books or publications, upon 
certification by the CHED that such books are for economic, technical, vocational, 
scientific, philosophical, historical or cultural purposes, in accordance with the 
provisions of the Tariff and Customs Code, as amended; 
d) 
Receive in hust legacies, gifts and donations of real and personal properties of all 
kinds and to administer and dispose of the same when necessary for the benefit of 
the Regional University System, 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 National Internal 
Revenue Code (NIRC), as amended: 
Provided. That such donations shall not be disposed of, transferred, or sold; 
e) 
Fix the tuition fees and other necessary school charges, such as, but not limited to, 
matriculation fees, graduation fees and laboratory fees, as the Board may deem 
proper to impose, after due consultations with the involved sectors. Such fees and 
charges shall, including government subsidies and other income generated by the 
Regional University System, constitute 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 Regional University 
System. 
Any provision of existing laws, rules and regulations to the contrary 
notwithstanding, all income generated by the Regional University System from 
tuition fees and other charges, as well as from the operation of auxiliary services 
and land grants, shall be retained by the autonomous campuses of the Regional 
University System and may be disbursed by the Board for instruction, research, 
extension or other programs or projects of the university; Provided. That all 
fiduciary fees shall be disbursed for the specific purposes for which these are 
collected. 
Page 4 of13 


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If, for reasons beyond its control, the Regional University System 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 saic\ funds for any reasonable purpose which, in its discretion, may be 
necessary and urgent for the attainment of the objectives and goals of the Regional 
University System; 
f) 
Adopt and implement a socialized scheme of tuition and other school fees for 
greater access to poor but deserving students; 
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) 
Designate, upon recommendation of the President of the Regional University 
System, the vice presidents, chancellors, deans,directors, heads of departments, 
faculty members, and other officials and employees ofthe 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 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 oflaw; 
j) 
Approve the curricula, instructional programs and rules of discipline drawn by the 
Administrative and the Academic Councils herein provided; 
k) 
Set policies on the minimum system-wide requirements for admission, graduation 
of students, and grant of honors; 
1) 
Award honorary degrees upon persons m 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 
Regional University System: Provided, That such degrees shall not be conferred in 
consideration of any payment, gift, or other valuable consideration; 
m) 
Establish and absorb non-chartered tertiary institutions and establish campuses, 
branches, centers, and LUCs within the Davao Region in coordination with the 
CHED and in consultation with the Department of Budget and Management (DBM) 
and offer therein programs or courses to promote and carry out equal access to 
educational opportunities as mandated by the Constitution: Provided, That any 
future public higher education institution that shall be established within the Region 
may be integrated as a component unit of the Davao Regional State University 
System, as may be determined by the Board; 
Page 5 of13 


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n) 
Establish research and extension centers of the Regional University System where 
such shall promote the development of the latter; 
0) 
Establish professorial chairs in the Regional University System and provide 
fellowships for qualified faculty members and scholarships to deserving students; 
p) 
Delegate any of its powers and duties to the president or other officials of the 
Regional University System, as it may deem appropriate, so as to expedite the 
administration of the affairs of the Regional University System; 
q) 
Authorize, an external management audit of the Regional University System, subject 
to the rules and regulation of the Commission on Audit (COA) and institute 
reforms, including academic and structural changes, on the basis of the audit results 
and recommendations; 
r) 
s) 
t) 
Collaborate with other governing boards of State colleges and universities as well 
as with private colleges and universities in working towards the development of the 
Regional University System to become more efficient, relevant, productive and 
competitive; 
Enter into joint ventures, which may be initiated by the ACs, with business and 
industry for the profitable development and management of the economic assets of 
the Regional University System, including land grants, the proceeds of which shall 
be used for the development and strengthening of the Regional University System; 
Develop consortia and other economic forms of linkages with local government 
units (LGUs), as well as public and private institutions and agencies, local and 
foreign, in the furtherance of the purposes and objectives of the Regional University 
System; 
u) 
Develop academic arrangements for institution-capability building with appropriate 
institutions and agencies, public and plivate, local and foreign, 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 modem and innovative modes of transmitting knowledge 
such as the use of information technology, the dual system, open learning 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 Regional University System; 
x) 
Privatize, where most advantageous to the Regional University System, the 
management of non-academic services such as health, food, building or grounds or 
property maintenance and such other similar activities; 
y) 
Extend the term beyond the age of retirement but not beyond the age of seventy 
(70) of the Regional University System President whose pelformance has been 
unanimously rated by the Board as outstanding, based on 'the guidelines, 
, Page 6 of13 


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qualifications, and standards set by the Board, after unanimous recommendation by 
the Performance Evaluation Committee (PEC); and 
z) 
Reconstitute or create additional autonomous campuses of the Regional University 
4 
System as may be relevant at a future time. 
5 
SEC. 9. Meetings of the Board. - The Board of Regents of the Regional University 
6 
System shall regularly convene at least once every quarter. However, the Chairperson of the 
7 
Board may, upon three (3) days prior written notice, call a maximum offouf (4) special meetings 
8 
within a year, whenever necessary. 
9 
All regular meetings of the Board shall be held in either the main campus or in any of the 
10 
autonomous campuses as may be recommended by the Regional University System President in 
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consultation with the chancellor, except for certain meritorious and expedient reasons where 
12 
special meetings may be held in venues outside the Region. 
13 
A quorum of the Board of Regents shall consist of a majority of all its members holding 
14 
office at the time of the meeting: Provided, That the Chairperson of the Board or the Regional 
15 
University System President is among those present in the meeting. 
16 
In the absence of the Chairperson of the CHED, a duly designated Commissioner of the 
17 
CHED shall represent the Chairperson in the meeting with all the rights and responsibilities of a 
18 
regular member: Provided, however, That during this meeting, the Regional University System 
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President as Vice-Chairperson shall be the presiding officer: Provided, further, That this proviso 
20 
notwithstanding, the Chairperson of the CHED is hereby authorized to designate a CHEn, 
21 
Commissioner as the regular Chair of the Board, in which case said CHED Commissioner shall 
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act as the presiding officer. 
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In case the Chairpersons of the Congressional Committees on Education shall not be able 
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to attend the Board meeting, they may duly designate to attend the said meeting their respective 
25 
representatives who shall have the same rights and responsibilities as a regular member of the 
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Board. 
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The members of the Board shall not receive any salary but shall be entitled to 
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reimbursements, for actual and necessary expenses incurred, either in their attendance to 
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meetings of the Board or in connection with other official business authorized by resolution of 
30 
the Board, subject to existing laws and regulations. 
3 I 
SEC. 10. Regional University System President. - The Regional University System shall 
32 
be headed by a full-time president who shall be appointed by the Board subject to the guidelines, 
33 
qualifications and standards set by the Board and upon recommendation of a duly constituted 
34 
search committee. The Regional University System President shall have a term of four (4) years 
35 
and shall be eligible for reappointment for another tenn. 
36 
In case of vacancy in the office of the Regional University System President by reason of 
37 
death, compulsory retirement, resignation, removal for cause, or incapacity to perfoml the 
38 
functions of the office, the Board shall have the authority to designate an officer-in-charge ofth~ 
39 
Regional University System within six (6) months fi'om date of vacancy, pending the 
Page 7 of13 


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appointment of a new Regional University System President. The Regional University System 
2 
President appointed by the Board after the occurrence of any of the aforementioned events shall 
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serve the unexpired portion of the term, subject to re-appointment for another tenn if warranted. 
4 
The powers and duties of the President of the Regional University System, in addition to 
5 
those specifically provided in this Act, shall be those usually pertaining to the office of th\ 
6 
President of similar universities. 
7 
The salary of the Regional Univi:rsity System President shall be in accordance with the 
8 
Revised Compensation and Position Classification System and shall be comparable to that being 
9 
received by the Presidents of similar educational institutions. 
10 
SEC. II. Vice-President. - The Regional University System President shall be assisted by 
1 I 
a vice president for academic affairs, a vice president for administration and finance, and a vice 
12 
president for research and extension and development, and such other vice presidents as may be 
13 
determined by the Board. They shall be designated by the Board, upon the recommendation of 
14 
the Regional University System President. They shall serve as staff and may assume line 
15 
functions upon the direction of the University System President. 
16 
SEC. 12. Chancellor of the Autonomous Campuses. - The administration of each 
17 
Autonomous Campus (AC) is vested in the Chancellor, subject to the limitations as may be 
18 
imposed by the Board. The Chancellors shall be designated by the Board, upon the 
19 
recommendation of the duly constituted search committee, subject to the guidelines, 
20 
qualifications, or standards set by the Board. 
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The Chancellors shall repOlt to the Regional University System President and shall 
22 
perfonn the duties and functions that are essential or necessary tor the proper and convenient 
23 
administration and transaction of the business and affairs of their respective ACs, subject to the 
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policies and mles prescribed by the Board. The Board shall determine the term and 
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compensation of the Chancellor. 
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SEC. 13. Secretary of the University and of the Board. - There shall be a Secretary of the 
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Regional University System appointed by the Board, who shall also be the Secretary of the 
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Board in all its meetings, and who shall keep such records of the University as may be 
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designated by the Board. 
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SEC. 14. Executive Administrative Council. - There shall be a system-wide administrative 
31 
council headed by the Regional University System President, with membership consisting of the 
. 
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vice-president for administration and finance, chancellors, and heads of the council of deans and 
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other officials as may be deemed necessary by the Board. The Executive Administrative Council 
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shall set the direction and administrative policies on a system-wide basis and shall perform 
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oversight functions on administrative matters. 
36 
SEC. 15. Administrative Council. - There shall be an administrative council in each AC in 
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the Regional University System with a chancellor as Chairperson, the deans and directors of 
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equal rank within the AC as members. The Administrative Council shall formulate and 
Page 8 of 13 


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recommend plans, pwgrams, and policies for administration, finance, and production for 
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approval by the Board. 
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The president of the pertinent student association of each AC may be allowed to attend 
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the meetings of the Administrative Council as an observer. 
5 
SEC. 16. Academic Senate. - There shall be a system-wide Academic Senate with the 
6 
Regional University System President as chairperson, the vice-presidents, chancellors, deans, 
7 
and all faculty members with an academic rank of full Professors as members: Provided, That 
8 
when a certain AC is not duly and amply represented, the Academic Council of said AC shall 
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elect their representatives, the number of which shall not be more than ten percent (10%) of its 
10 
faculty strength: Provided, further, That the said AC's representatives shall be members of the 
11 
Academic Council. 
12 
SEC. 17. Powers of the Academic Senate. - The Academic Senate is the supreme 
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academic advisory body in the Regional University System and shall be responsible for the 
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following functions: 
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a) 
Set a system-wide academic policies and minimum academic standards; 
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b) 
PerfOlID oversight functions Qn all academic matters pertaining to the Regiona~ 
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University System and its programming; 
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c) 
Formulate, evaluate, and recommend to the Regional University System President 
policies and procedures which pertain to the development, maintenance, and 
improvement of the Regional University System program in academic matters; 
d) 
Adopt internal rules or procedures consistent with the provisions of this Act; and 
e) 
Perform other corollary functions inherent to its functions. 
SEC. 18. Academic Council. - There shall be an Academic Council in each AC consisting 
of the AC chancellor as chairperson and of all the faculty members in the AC holding the rank of 
assistant professor and higher as members. 
SEC. 19. Powers of the Academic Council. - The Academic Council shall be the highest 
academic body of each AC and shall exercise the following powers within the jurisdictional 
confi·nes of such AC: 
a) 
Fix the requirement for admission to any college or unit or any academic program 
or course offering and for graduation and conferment of a degree, and the grant of 
honors subject to the minimum system-wide requirements; 
b) 
Prescribe the academic programs including their institution, revision, abolition, and 
merger, subject to the approval of the Board; 
c) 
Recommend to the Board the graduation of students and the grant of honors; 
d) 
Undertake a periodic review of academic courses, programs, stanc\ards, thrusts and 
e) 
policies; 
Adopt the necessary measures to enable students to exercise their established 
religious beliefs consistent with the accepted norms and morals of society. Students 
shall be given options to fulfill their academic responsibilities, such as, but not 
Page 9 oft3 


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limited to, make-up classes or examinations on missed school days or examinations 
which coincided with the exercise oftheir established religious beliefs; 
f) 
Adopt internal rules or procedures consistent with the provisions of this Act; and 
g) 
Perfonn other corollary functions inherent to its functions. 
5 
SEC. 20. Research, Extension and Enterprise Development (REED) Regional University 
6 
System Council. - There shall be a REED Regional University System Council which shall 
7 
perform oversight functions and provide direction on REED matters system wide. The REED 
8 
Regional University System Council shall be headed by the Regional University System 
9 
President, with the Chairpersons ofthe AC REED Councils as members. 
10 
SEC. 21. Research, Extension and Enterprise Development Council (REED Council) in 
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ACs. - There shall be in each AC a REED Council which shall fonnulate and craft research, 
12 
extension, and enterprise development policies, programs, and plans for AC-based 
13 
implementation upon approval by the Board. The REED Council .shall be chaired by the AC's 
14 
Chancellor, the deans and the directors, and the AC's active researchers and extension personnel 
15 
with the academic rank of associate professor or higher as its members. 
16 
SEC. 22. Faculty. - No political beliefs, gender preference, physical disability, cultural or 
17 
community affiliation or ethnic origin, and religious opinion or affiliation shall be a matter of 
18 
inquiry in the appointment of faculty members of the Regional University System: Provided, 
19 
That the appointment shall be subject to the guidelines, qualifications, and standards set by the 
20 
Board: Provided, further, That no member of the faculty shall teach for or against any particular 
21 
church or religious sect. 
22 
SEC. 23. Scholarship Program or Admission. - The Regional University System shall 
23 
provide a scholarship program and other affinnative action programs to assist poor but deserving 
24 
students who qualify for admission to the Regional University System. 
25 
No student shall be denied admission to the Regional University System by reason of 
26 
age, gender, physical condition, religion, political beliefs, cultural or community affiliation Of 
27 
ethnic origin. 
28 
SEC. 24. Academic Freedom and Institutional Autonomy. - The Regional UniversitY 
29 
System shall enjoy academic freedom and institutional autonomy, pursuant to paragraph 2, 
30 
Section 5 of Article XIV of the 1987 Constitution. 
31 
SEC. 25. Assets, Liabilities and Personnel. - All assets, real and personal, personnel and 
32 
records of all the ACs, as well as liabilities or obligations, are hereby transferred to the Regional 
33 
University System: Provided, That the utilization of the assets shall be retained by the respective 
34 
ACs. The positions, rights and security of tenure of the faculty members and personnel employed 
35 
in each of the ACs under existing laws prior to this Act shall be respected. 
36 
All assets donl'lted to the respective ACs under its fonner juridical personality shall be 
37 
deemed donated to and hence a property of the new Regional University System as a duly 
38 
constituted body or juridical entity. 
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SEC. 26. Appropriations. - The amount necessary to carry out the initial implementation 
2 
of this Act shall be charged against the current year's appropriations of the University of 
3 
Southeastern Philippines, the Davao del Norte State College, the Davao Oriental State College of 
4 
Science and Technology, the Southern Philippines Agribusiness and Marine and Aquatic School 
5 
of Technology, and the Compostela Valley State College and the funding provided by the local 
6 
government units where these State university and colleges are located. 
7 
In addition, the amount of One Hundred Million Pesos (P 100,000,000.00) is hereby 
8 
appropriated for the establishment of the Davao Regional State University System. Thereafter, 
9 
such sums as may be necessary for the continued operation and maintenance of the Regional 
10 
University System shall be included in the annual General Appropriations Act. 
11 
SEC. 27. Land Grants and Other Real Properties of the Regional University System. -The 
12 
State shall provide support to the Regional University System in the form of lump sum amount, 
13 
through general appropriations and other financial benefits, and in kind, through land grants and 
14 
donations and use of other real properties. To carry out the intent of these grants, income derived 
15 
from the development of all land grants and real properties acquired by the Regional University 
16 
System shall be used to further the ends of the Regional University System, as may be decided 
17 
by the Board. 
18 
The Board shall plan, design, approve, or cause the implementation of financial 
19 
mechanisms, such as joint ventures and long-term leases, to give the Regional University System 
20 
the most advantageous position in generating revenues and other resources from the land grants 
21 
or other real property entrusted by the Filipino people: Provided, That such long-term leases 
22 
shall not conflict with the Regional University System's academic mission, as well as, sustain 
23 
and protect the environment: Provided, further, That the plans shall preserve the academic core 
24 
zone of each autonomous campus concerned: Provided, finally. That funds generated from the 
25 
long term leases shall not be meant to replace, in whole or in part, the annual appropriation 
26 
provided by the national government to the Regional University System. 
27 
SEC. 28. Tax Exemptions. - The provision of any general or special law to the contrary 
28 
notwithstanding: 
29 
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a) 
All revenues and assets of the Regional University System used actually, directly, 
and exclusively for educational purposes shall be exempt from all taxes and duties; 
b) 
Gifts and donations of real and personal properties of all kinds shall be exempt from 
the donors' tax and the same shall be considered as allowable deductions from the 
gross income of the donor, in accordance with the provisions of the National 
Intemal Revenue Code, as amended; 
c) 
Importation of economic, technical, vocational, scientific, philosophical, historical 
and cultural books, supplies, equipment, machinery and other materials, including 
scientific and educational computer and software equipment, shall be exempt from 
customs duties; and 
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d) 
The Regional University System shall be exempt from payment of value-added tax 
2 
on its transactions which are primarily and directly undertaken for educational 
3 
purposes. 
4 
SEC. 29. Development Plan. Management Audit. - Within one hundred twenty (120) days 
5 
after the approval of this Act, the Regional University System shall accomplish the following: 
6 
a) 
Submit a medium term institutional development plan for the RUS, including its 
7 
cOITesponding program budget to CHED, for corresponding recommendation to the 
8 
Department of Budget and Management; 
9 
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b) 
Undergo a management audit in cooperation with CHED; and 
c) 
Accordingly set up its organizational, administrative, as well as, academic structure, 
including the appointment of the Regional University System key officials. 
SEC. 30. Transitory Provisions. -
a) 
Budget - Each AC shall retain its budget from the national government through the 
General Appropriations Act. The internally-generated income of each AC shall also 
be used by the AC it~elf. Each AC shall constitute and formulate its own resource 
generation mechanism and the operational policies and implementation scheme 
shall be approved by the respective AC's Administrative Council. 
b) 
Transitory President - In order to effect a smooth transition to a Regional 
University System, the Governing Board may appoint a qualified transitory 
President who shall serve as the first President of the Regional University System 
for two (2) years from the effectivity of this Act, the selection process for whom, 
shall be detennined by the Governing Board. 
c) 
Transitory Chancellors - The incumbent Presidents of the State university and 
colleges qeing integrated shall serve as transitory chancellors of the respective ACs 
for two (2) years from the effectivity of this Act or until the expiration of the 
current term of office of the incumbent, whichever is longer. 
d) 
Transitory Faculty Regent - The incumbent faculty trustees or regents, as the case 
may be, shall choose fi-om among themselves who shall be the transitory Faculty 
Regent fQr the Regional University System. The term of the transitory Faculty 
Regent shall be until such time that a Faculty Regent shall have been duly elected 
by the new faculty federation of the Regional University System. 
e) 
f) 
Transitory Student Regent - The incumbent student trustees or regents, as the case 
may be, of the integrated state university and colleges shall choose from among 
themselves who shall be the Transitory Student Regent for the Regional University 
System. The term of the transitory Student Regent shall be until such time that a 
Student Regent shall have been duly elected by the new student federation of the 
Regional University System. 
Transitory Alumni Regent - The incumbent alumni trustees or regents, as the case 
may be, of the integrated state university and colleges shall choose from among 
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themselves who shall be the transitory Alumni Regent for the Regional University 
System. The term of the transitory Alumni Regent shall be until such time that an 
Alumni Regent shall have been duly elected by the new alumni federation of the 
Regional University System. 
g) 
Budget for the transitory system-wide administration - The first year of 
implementation of the system-wide administration of the Regional University 
System shall be provided for by the CHED, specifically on complementation and 
consortium activities or programs, until the budgetary requirement shall have been 
incorporated into the general budget ofthe Regional University System. 
h) 
Rationalization of the system-wide administration - After the management audit 
11 
and to effect the appropriate administrative structure for operational efficiency, the 
12 
Davao Regional State University System shall gradually rationalize redundant 
13 
administrative offices, subject to civil service rules and appropriate incentive 
14 
packages. 
15 
SEC. 31. Suppletory Application. - The provisions of Republic Act No. 8292, otherwise 
16 
known as the "Higher Education Modernization ACt ofI997," shall be an integral part of this Act 
17 
and shall serve as part of the governing charter of the Regional University System. 
18 
SEC. 32. Parity Clause- All other powers, functions and privileges, responsibilities and 
19 
limitations granted to, or imposed upon state universities and their officials under existing laws 
" 20 
shall be deemed granted to or imposed upon the Regional University System and its officials 
21 
whenever appropriate. 
22 
SEC. 33. Implementing Rules and Regulations. - Within a period of ninety (90) days from 
23 
the effectivity of this Act, the Board of the Regional University System shall, in collaboration 
24' with the Commission on Higher Education, promulgate rules and regulations as may be 
25 
necessary for the effective implementation of this Act. 
26 
SEC. 34. Separability Clause. - If, for any reason, any part or provision of this Act is 
27 
declared invalid or unconstitutional, the remaining parts or provisions not affected thereby shall 
28 
remain in full force and effect. 
29 
SEC. 35. Repealing Clause. - All laws, decrees, orders, rules and regulation inconsistent 
30 
with the provisions of this Act are hereby repealed or modified accordingly. 
31 
SEC. 36. Effectivity. - This Act shall take effect fifteen (15) days after its publication in 
, 32 
the Official Gazette or in any newspaper of general circulation. 
Approved, 
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