Republic of the Philippines 
I 
First Regular Session 
I 
FOURTEENTH CONGRESS 
} 
S E N A T E  
Introduced by Senator FRANCIS G. ESCUDERO 
EXPLANATORY NOTE 
The Constitution mandates that the State constantly improves the standards 
of higher education to ensure that students get the best education possible from both 
the public and private higher education institutions. 
Article XIV, Section 1 of the Constitutions declares: 
"The State shall protect and promote the right of all 
citizens to quality edncation at all levels and shall take 
appropriate steps to make education accessible to all." 
Likewise, Article 11, Section 17 of the Constitution declares: 
"The State shall give priority to education, science and 
technology, arts, culture and sports to foster patriotism and 
nationalism, accelerate social progress and promote total human 
liberation and development." 
Towards this end, this Bill aims to strengthen the University of the 
Philippines which is its national university. 
As the national university, a public and secular institution of higher learning 
and a community of scholars dedicated to the search for the truth and knowledge, 
the Bill proposes that the University of the Philippines shall perform its unique and 
distinctive leadership in higher education and national education development 
through its combined functions, as follows: 
(1) 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; maintain centers of excellence in such disciplines and 
professions; 
(2) Serve as a graduate university providing advanced studies and 
specialization for scholars, scientists, writers, artists, philosophers and 
professionals, especially those who serve on the faculties of state and 
private colleges and universities; 
(3) .Serve as a research university in the various fields of its expertise and 
specialization by conducting basic and applied research, and research 
and development, promoting research in the various colleges and 


.universities, and contributing to the dissemination and application of 
knowledge; 
(4) Lead as a public service university by providing various forms of 
comnunity, public and volunteer service, and scholarly and technical 
assistance to the government, the private sector, and civil society; 
(5) Provide opportunities for training and learning in progressive leadership 
and leadership for service, responsible citizenship, and the development 
of democratic values, institutions and practice; and 
(6) Serve as a regional and global university in cooperation with 
international scientific unions and with networks of universities and 
scholarly and professional associations in the Asia-Pacific region and 
around the world. 
In view of the foregoing, urgent passage of this Bill is earnestly sought. 
FRANCIS G. ESCUDERO 
2 


Republic of the Philippines 
I 
First Regular Session 
I 
FOURTEENTH CONGRESS 
) 
S E N A T E  
6 
Introduced by Senator FRANCIS G. ESCUDERO 
AN ACT 
TO FURTHER STRENGTHEN THE UNIVERSITY OF THE PHILIPPINES 
AS THE PREMIER STATE UNIVERSITY 
Be it enacted by the Senate and the House of Representatives of the Philippines in Congress 
assembled: 
SECTION 1. Title -This Act shall be known as the "University offhe Philippines 
Charter of 2007." 
SECTION 2. Declaration ofPolicy - The State shall promote, foster, nurture 
and protect the right of all citizens to quality education. Toward this end, it is the 
policy of the State to strengthen the University of the Philippines as the Premier State 
University. 
SECTION. 3 Puvpose of the University - As the Premier State University, a 
public and secular institution of higher learning and a community of scholars 
dedicated to the search for truth and knowledge, the University of the Philippines 
shall perform its unique and distinctive leadership in higher education and national 
education development. The University shall: 
Lead in setting academic standards and initiating 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; 
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; 


(3) Serve as a research university in the various fields of its expertise and 
specialization by conducting basic and applied research, and research 
and development, promoting research in the various colleges and 
universities, and contributing to the dissemination and application 
knowledge; 
(4) Lead as a public service university by providing various forms of 
community, public and volunteer service, and scholarly and technical 
assistance to the government, the private sector, and civil society while 
maintaining its standards of excellence; 
(5) Protect and promote the professional and economic rights and welfare of 
its academic and nonacademic personnel; 
(6) Provide opportunities for training and learning in progressive leadership, 
-responsible citizenship, and the development of democratic values, 
institutions and practice, and the enhancement of nationalism and 
national identity; 
(7) Provide democratic governance in the university based on collegiality, 
representation, accountability, transparency and active participation of its 
constituents; and 
(8) Serve as a regional and global university in cooperation with 
international scientific unions and with networks of universities and 
scholarly and professional associations in the Asia-Pacific region and 
around the world. 
SECTION 4. Definition of Terms. - As used in this Act, the following terms 
shall mean: 
(1) '"University" refers to the University of the Philippines. 
(2) "University of the Philippines System (UPS)" refers to the University of 
the Philippines as composed by its existing constituent universities, as 
follows: University of the Philippines Diliman; University of the 
Philippines Manila; University of the Philippines Los Banos; University of 
the Philippines Visayas; University of the Philippines Mindanao; 
University of the Philippines Baguio; University of the Philippines Open 
University; and those that may be created in the future. 
(3) "University of the Philippines System Assembly (UPSA)" refers to an 
assembly of individuals representing the students, academic personnel 
(faculty and research, extension and professional staff), administrative 
personnel, and alumni of the seven constituent university (UP Diliman, 
UP Manila, UP Los Banos, UP Visayas, UP Mindanao, UP Baguio, UP 
2 


Open University) and other constituent university that may be created in 
the future. Members of the Assembly shall be elected pursuant to Section 
17 hereof. 
(4) ”University Assembly (UA)” refers to an assembly of individuals 
representing the students, academic personnel (faculty and research, 
extension and professional staff), administrative personnel, and alumni 
elected by the constituent particular constituent university of the 
University of the Philippines. 
(5) ”Research, Extension and Professional Staff (REPS)” refers to university 
personnel who perform academic non-teaching duties. These include 
university researchers, extension personnel, law reform group, law 
education group, science education, guidance service group, library 
.service group, development management group and museum research 
group. 
(6) “Academic freedom” refers to the right of every constituent of the 
University to express one’s ideas, to write, research and publish and act in 
accordance with one’s viewpoint inside and outside the classroom in the 
pursuit of academic ideals and in service to the Filipino people; 
(7) ”Professional chair awards” refers to awards given to faculty members 
for meritorious performance in teaching, research, creative writing; one of 
the highest forms of recognition for achievement in the academe; holders 
of these awards deliver a lecture or publish a paper in a scholarly journal 
within the period of award and may be named after the donor or after a 
person that the donor may wish to honor. 
(8) ”Established religious beliefs” refers to mandatory spiritual and 
.;heological practices, convictions and faith of the University population to 
make them God-fearing, patriotic citizens conscious of their values and 
cultural heritage. 
(9) ”The Board of Regents” or the ”Board” refers to the governing body of 
the University being referred to in Sections 10 to 12 of this Act. 
SECTION 5. The Uxiuersity System - The University of the Philippines is a 
university system and shall be composed of constituent universities established 
solely by its Board upon the recommendation of the president of the University. 
SECTION 6. Academic Fveedom - The University has the right and the 
responsibility to exercise academic freedom. 
3 


SECTION 7. Academic Excellence - The University has the responsibility to 
maintain and enhance its high academic standards in the performance of the 
functions of instruction, research, and extension and public service. 
SECTION 8. Social Responsibility - The University is committed to serve the 
Filipino nation and humanity. While it carries out the obligation to pursue universal 
principles, it must relate its activities to the needs of the Filipino people and their 
aspirations for social progress and transformation. The University may provide 
venues for student volunteerism. 
SECTION 9. Democratic Access - No student shall be denied admission to the 
University by reason of age, gender, nationality, religious belief, or political 
affiliation or for being differently-abled physical. 
The University shall take 
affirmative steps to enhance the access of disadvantaged students to its programs 
and services while maintaining its standards of exceIIence. 
SECTION 10. The Board ofRegents - The government of the University is 
vested in a Board of Regents, hereinafter referred to as the Board of the UPS, which 
shall be composed of: 
(1) The chairperson of the Commission of Higher Education as chairperson; 
(2) The president of the University of the Philippines as vice chairperson; 
(3) The chairperson of the Senate Committee on Education, Arts and Culture; 
(4) The chairperson of the House Committee on Higher and Technical 
Education; 
(5) .The president of the U.P. Alumni Association, to serve as Alumni Regent 
during his or her incumbency in that position; 
(6) One academic regent representing full-time permanent teaching (faulty) 
and ion-teaching REFS chosen in accordance with the rules and 
qualifications set by the constituent university councils composed of fuU- 
time tenured faculty members of the University and the REP'S duly 
recognized organization, to serve for a term of two years; 
(7) One student regent to serve for a term of one year chosen in accordance 
with the rules and qualifications set by the general assembly of 
recognized university student councils; 
(8) One staff regent representing the full-time administrative personnel 
chosen in accordance with the rules and qualifications set by their duly 
recognized organizations, to serve for a term of two years; and 
4 


(9) Three other regents representing the private sector, at least one of whom 
should be an alumnus of the University, who have distinguished 
themselves in their professions or fields of specialization chosen from a 
list of five persons for every vacancy as recommended by a search 
committee constituted by the president of the University based on 
standards and guidelines approved by the Board, and appointed by the 
Board and shall each serve for a term of two years: Provided, That the 
regents holding office as members of the Board at the time of the 
effectivity of this Act shall continue to serve until the expiration of their 
appointments as provided for in Executive Order No. 204-A ossied by the 
President of the Philippines on July 15,1987. 
In case of vacancy in the representation of the private sector in the Board, 
such vacancy shall be filled by appointment by the Board, such vacancy shall be 
filled by appointment by the Board as provided in the preceding paragraph, and 
such appointee shall hold office for the unexpired term. In case of vacancy in the 
position of sectoral regents, the successor, who shall serve for the unexpired term, 
shall be chosen in the same manner as provided for the predecessor: Provided, That in 
the case of a sectoral regent, membership in the Board ceases upon suspension, 
separation or recall from the University. 
Members of the Board shall serve without compensation other than actual 
and necessary expenses incurred in attendance of meetings of the Board or other 
official business authorized by the Board. 
SECTION 11. Powers of the Board of Regents - The administration of the 
University.and the exercise of its corporate powers are vested in the Board. 
The Board shall exercise the following specific powers and duties: 
(1) To ddine in general terms the thrusts of the University and adopt broad 
policy guidelines to ensure their implementation; 
(2) To preserve the integrity of the UPS; 
(3) To approve the creation, institution, merger or abolition of academic units 
and programs, and adopt the necessary measures to enable students to 
exercise their established religious beliefs consistent with the accepted 
norms and morals of society. Student shall be given options to fulfill 
their academic responsibilities such as, but not limited to, make-up 
classes/examinations on missed school days/examinations which 
coincided with the exercise of their established religious beliefs, all upon 
5 


the recommendation of the university council of the constituent 
university concerned through the president of the University; 
(4) To approve the graduation of students and grant of honors, as 
recommended by their respective university councils through the 
president of the University; 
(5) To confer honorary degrees upon persons in recognition of learning, 
statesmanship, or eminence in literature, science, or art, upon 
recommendation of a conmuttee created by the president of the 
University: Provided, That such degrees shall not be conferred in 
consideration of any payment, gifts or other valuable consideration; 
(6) To approve the rules on student discipline recommended by the 
university councils through the president of the University, with the 
.Board retaining the power to review and pass final judgment on student 
disciplinary cases; 
(7) To create, organize, reorganize, merge or abolish constituent universities, 
colleges, institutes, and other academic and administrative units of the 
University; 
(8) To establish professional chair awards in the colleges and to provide for 
the maintenance or endowment of such chairs; 
(9) To provide fellowship and scholarships and to award the same to faculty, 
staff and students giving special evidence of merit; 
(1O)To eIect the President of the University for a term of six (6) years without 
re-election following a process of democratic consultation with the 
University community based on the guidelines, qualifications and/or 
standards set by the Board. In the event of a vacancy for whatever 
reason/s, the Board shall elect a new president who shall serve the 
unexpired term of predecessor within six months from the occurrence of 
the vacancy; 
(11)To appoint faculty members and other officials and employees, to draw 
up a position classification and compensation plan for its faculty and staff 
and to fix and adjust salaries and benefits of the faculty members and 
other employees subject to the provisions of the Revised Compensation 
and Position Classification System and other pertinent budget and 
compensation laws, to determine their hours of service, and such other 
terms and conditions as it may deem proper; to grant to them, at its 
discretion, leave of absence, under such regulations as it may promulgate, 
and other provisions of law to the contrary notwithstanding; and to 
6 


remove them for cause as provided by law after due investigation and 
proper hearing; 
(12) To eniend, with their consent, the tenure of faculty members of the 
University beyond the compulsory retirement age, any other provision of 
law to the contrary notwithstanding, on recommendation of the units, 
upon endorsement of the president of the University, whenever their 
services are specially needed 
Provided, however, that no extension of 
tenure shall be made beyond the age of seventy (70). 
(13)To fix the tuition fees and other necessary school charges, after due 
consultations and consent of the various student councils of constituent 
university as provided for in Section 22 of this Act. Such fees and 
charges, including government support and other incomes generated by 
the University, shall constitute special trust funds and shall be deposited 
in any authorized government depository bank. Any and all interests 
that shall accrue therefrom shall form part of the same funds for the use 
of the University. Any provisions of the existing law to the contrary 
notwithstanding, all incomes generated by the University or by its own 
subsidiaries may, at the discretion of the Board, be disbursed for the 
professional growth and development, health, welfare and other benefits 
of the faculty members and other personnel for the acquisition, 
construction, maintenance and repair of urgently needed instructional 
and auxiliary facilities, equipment buildings and other infrastructure: and 
for expenses necessary for the attainment of its purposes under this Act. 
If the University, for reasons beyond its control, shall not be able to 
pursue any project for which funds have been appropriated and allocated 
under its approved program of expenditures, the Board may authorize 
the use of said funds for any reasonable purpose which it deems 
necessary and urgent for the attainment of the objectives and goals of the 
Univasity: Provided, 
That funds collected from students for specific 
purpose shall not be reprogrammed to other expenditures; 
(14)To receive and appropriate all sums as may be provided by law for the 
support of the University to the ends specified by law, and all other sums 
in the manner it may, in its discretion, determine to carry out the 
purposes and functions of the University; 
(15) To authorize the construction or repair of its buildings, machinery, 
equipment and other facilities, and the purchase and acquisition of real 
and personal properties, including the necessary supplies, materials and 
equipment; 


(16)To receive in trust legacies, gifts and donations of real and personal 
property of all kinds and to administer and dispose of the same when 
necessary for the benefit of the University and subject to the instructions 
of the donor, if any; 
(17)The provision of law to the contrary notwithstanding, to authorize its 
faculty and staff to travel abroad in order to study, deliver paper, attend 
conferences and disseminate research: Provided, That the fellowship, 
scholarship or grant is authorized by the Board; 
(18)To exercise the general powers set out in the Corporation Code; 
(19)To delegate any of its powers to the president of the University or any 
other official or officers as it may deem necessary; 
(20)To prescribe rules for its own government and the discipline of the 
faculty and other personnel and to enact for the governance of the 
University such general policies, rules and regulations, not contrary to 
law, as are consistent with the purposes of the University; and 
(21)To exercise such other powers as may be necessary and proper to carry 
out the objectives of this Act. 
SECTION 12. Quorum of the Board of Regents - A simple majority of the actual 
members of the Board of Regents shall constitute a quorum. 
SECTION 13. The University President - The University President is the chief 
academic officer and head of the University Faculty and the chief executive officer of 
the University elected by the Board. Upon the election of the president by the Board, 
he/she shall immediately be issued appoinbnent papers by the presiding chair of the 
Board which elected the president. The president shall preside over the meetings of 
the constituent university councils, if he/she is in attendance. The President shall 
exercise the powers specifically provided for in this Act, those which usually pertain 
to the office of the president of the University, and those which are related or 
necessary to its functions. The compensation of the president shall be determined by 
the Board. 
SECTION 14. TIE Secretary of the University and of the Board of Regents - There 
shall be a secretary of the University appointed by the Board, who shall also be the 
secretary of the Board, and who shall keep such records of the University as may be 
designated by the Board. 
8 


SECTION 15. The University Council - There shall be in each constituent 
University a council consisting of the chancellor as chairperson, and of all the faculty 
members in the vniversity holding the rank of assistant professor and higher and a 
representative of non-tenured teaching personnel. 
SECTION 16. Powers of tlze University Council - The university council shall be 
the highest academic body of each constituent university and shall exercise the 
following powers: 
(1) Fix the requirements for admission to any college or unit or any academic 
program or course offering and for graduation and conferment of a 
degree, and the grant of honor subject to the minimum system-wide 
requirements; 
(2) I'rescxibe the academic program including their institution, revision, 
abolition and merger, subject to the approval of the Board; 
(3) Recommend to the Board the graduation of students and the grant of 
honors; 
(4) Exercise disciplinary power over the students, through the chancellors or 
their appropriate committees, subject to review by the president 
according to the limits prescribed by the system-wide rules on student 
discipline; 
(5) Undertake the periodic review of academic courses, programs, standards, 
thruste and policies; and 
(6) 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 limited to, make-up classes/examinations 
on missed school days/examinations, which coincided with the exercise 
of their established religious beliefs; and 
SECTION 17. 
The University Consultative Assemblies - There shall be 
established for the whole UPS, consultative assemblies as follows: 
(1) There shall be a college assembly for every college, other degree-granting 
institute composed of representatives coming from the students, academic 
personnel (faculty and REFS) and administrative personnel. The dean of 
the college/director of the institute shall be the presiding officer of the 
college assembly. 
9 


(2) 'Ihere shall be a university assembly in each constituent university 
composed of elected members from college assemblies, representing the 
studeGts, academic personnel (faculty and REPS), and administrative 
personnel. Vice chancellors, deans of colleges and directors of degree- 
granting institutes who have not been elected as delegates by their 
respective college assemblies shall be ex ofFcio nonvoting members of the 
university assembly. The recognized unions for academic, administrative 
personnel and university student council shall have representation in the 
university assembly and the chanceIIor of each constituent university 
would be the presiding officer. 
(3) There shall be a University of the Philippines System Assembly (UPSA) 
for the whole UPS composed of at least twenty-eight (28) members to be 
elected from the university assemblies of seven existing constituent 
university with each constituent university entitled to four members 
representing the students, academic personnel (faculty and REPS), 
administrative personnel and alumni. 
The members of the UPSA shall elect from among themselves the 
executive committee to be composed of a chairperson and a vice 
chairperson and an executive board composed of a representative from 
each constituent sector, the students, faculty and REPS, administrative 
personnel alumni. 
The term of office of all representatives in the consultative assemblies 
shall be for one year without prejudice to their re-election. 
SECTION 18. The Role and Functions of the Consultufive Assemblies - The 
consultative assemblies as consultative, consensus-building, democratic and collegial 
bodies shall have the following functions: 
(1) To serve as the principal forum where faculty, students, REPS and 
administrative personnel shall address nonacademic issues affecting the 
University, its thrust and directions, and issues relating to long/medium 
term development plans for the University; 
(2) To promote direct interaction among the various unit constituencies of the 
University (faculty, REPS, administrative personnel and students) in the 
discussion of issues and grievances which heretofore have been mainly 
sectoral; 
(3) To serve as a multi-sectoral forum to recommend policies on 
administrative and nonacademic matters in consultation with the 
chancellors for approval by the Board; and 


(4) -To act as a consultative body in the search process for deans, directors 
and equivalent positions in the units of the University, as may be 
necessary. 
SECTION 19. The Chancellor of the Constituent University - The administration 
of each constituent university is vested in the chancellor insofar as authorized by the 
Board and the president of the University. The chancellor of the constituent 
university shall be elected by the Board upon nomination of the president of the 
University, following a process of democratic consultation with constituents of the 
constituent university, subject to the guidelines qualifications and/or standards set 
by the Board. The chancellor shall report to the president of the University, and shall 
perform the duties and functions elsewhere stated in this Act, and all the usual, 
necessary and related functions of the office of the chancellor, subject to the policies 
and rules -prescribed by the Board. The Board shall determine the term and 
compensation of the chancellor. 
SECTION 20. The Faculty - The teaching staff of each college shall constitute 
its faculty, which shall be presided over by the dean, elected by the Board on 
nomination by the university president and upon the recommendation of the 
chancellor of the constituent university, following a process of democratic 
consultation with the constituents of the college subject to the guidelines, 
qualifications and/or standards set by the Board. 
SECTION 21. 
Appointment Requisites - Faculty members as well as the 
academic REPS of the University shall be exempt from any civil service examination 
or regulation as a requisite to appointment. The provisions of existing law to the 
contrary notwithstanding, licensing requirements for professional regulatory boards 
shall not affect appointments to faculty positions. In the appointment of faculty 
members, no religious test shall be applied, nor shall religious or political opinions or 
affiliations of the 'faculty members of the University be made a matter of examination 
or inquiry. 
SECTION 22. Student Affairs. - There shall be established in the University 
the following students councils: for every college and degree-granting institute, a 
college or institute student council; for every constituent University, a university 
student council; and for the university system, a general assembly for all student 
councils. 
11 


Thc student council shall be composed of elected students of a definite 
academic unit of the University. Each member of the student council shall serve a 
term of one year, 'without prejudice to re-election. 
The student council shall 
serve as the primary student body that shall advance the interest, welfare and 
aspirations of the students of the University. It shall have the power to adopt 
internal rules of procedure consistent with the provision of this Act. 
The manner of selecting the student regent shall be based on the rules and 
qualifications set by the general assembly of the student councils of all constituent 
universities. 
(2) There shall be a student publication established in every constituent unit 
and college. Freedom of expression and autonomy in all matters of editorial and 
fiscal policy shall be guaranteed especially in the selection of editors and staff. 
SECTION 23. Land Grants and other Real Properties ofthe University - 
The State shall provide financial support to the UPS as the Premier State 
University through the General Appropriations Act and in kind through 
land grants and donations and use of other real properties. To carry out 
the intent of these grants, income derived from the development of all 
land grants and real properties shall be used to further the ends of the 
University, as may be decided by the Board. 
Such parcels of land ceded by law, decree or presidential issuance to the 
UPS, are hereby declared to be reserved for the purposes intended, as 
confirmed by the Board. 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 of the Philippines and 
their future derivatives is hereby affirmed. Where issuance of proper 
certificates of title is yet pending for these landholdings, the appropriate 
government office shall expedite the issuance thereof within six (6) 
months from the date of effectivity of this Act: Provided, Thal all 
registration requirements necessary for the issuance of the said titles have 
been submitted and complied with. 
The Board shall plan, design, approve and/or cause the implementation 
of long-term leases to give the University the most advantageous position 
in generating revenues and other resources from land grants and other 
real property entrusted by the Filipino people to their Premier State 
university: Provided, That such long-term leases shall be consistent with 
the Unviersity's land use and infrastructure plan, as well as sustain and 
protect the environment: Provided, juther, That the long-term leases shall 
12 


presewe that academic core zone of each constituent campus which shall 
be delineated in consultation with all sectors of the constituent university 
concerned: Provided, $naZZy, That funds generated from the long-term 
leases shall not be meant to replace, in part or in whole, the annual 
appropriation provided by the national government to the University. 
SECTION 24. Grant of Specid Allowances. - In order to continue to attract and 
maintain competent and excellent teaching personnel, all faculty members of the 
University may be granted special allowances upon approval of its Board up to a 
maximum amount equivalent to one hundred percent (100%) of the basic monthly 
salary specified for their respective salary grades under Republic Act No. 6758, as 
amended, fitherwise known as the Salary Standardization Law. 
The grant of special allowances may be initially be implemented upon 
approval of its Board uniformly in such sums or amounts equivalent to twenty-five 
percent (25%) of the basic salary of the position concerned. 
Subsequent 
implementation shall be in such sum and amounts and up to the extent only that 
can be supported, by internally generated funds of the University. 
SECTION 25. Effects of Subsequent Salary Increase. - Upon implementation of 
any subsequent increase in the salary rates provided for the positions concerned 
under Republic Act No. 6758, as amended, all special allowances granted under this 
Act for the faculty members shall be considered as an implementation of the said 
salary increases as may be provided by law. 
The special allowances equivalent to the increase of the basic salary as may be 
provided by law, shall be converted as part of basic salary: Provided, That any excess 
in the amount of special allowances not converted as part of the basic salary shall 
continue to be granted and paid as such. 
SECTION 26. Funding Source. The amount necessary to initially implement 
the special allowances granted under this Act, shall be sourced from, and charged 
against the internally generated income of the University of the Philippines, and that 
subsequent, implementation shall be at such percentage, sums and amounts which 
can be supported by internally generated funds of the UPS. 
The annual funding requirement of the special allowances granted under this 
Act shall continuously be charged exclusively against the internally generated funds 
of the University and shall, in no case, be paid chargeable against direct or realigned 
national government financial assistance or budget subsidy. 
13 


SECTION 27. Appropriations - The Board of the UPS shall immediately 
include in its programs, the implementation of this Act, the initial funding of which 
shall be charged against the current year's appropriations and other internally 
generated income of the University. Thereafter, such sums as may be necessary as 
the national government assistance to the University shall be included in the annual 
General Appropriations Act. 
SECTION 28. Tax Exemptions - The provisions of any general or special law 
to the contrary notwithstanding: 
All revenues and assets of the University of the Philippines used actually, 
directly and exclusively for educational purposes shall be exempt from 
all taxes and duties; 
Gifts and donations of real and personal properties of all kinds shall be 
exempt from the donor's tax and the same shall be considered as 
allowable deductions from the gross income of the donor, in accordance 
with the provisions of the National Internal Revenue Code, as amended; 
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 the payment of customs duties; and 
The university shall be exempt from the payment of value added tax on 
its transactions which are primarily and directly undertaken for 
educational purposes; and 
All honoraria for professional chair awards shall be exempt from taxes. 
SECTION 29. Auditing of Accounts - All accounts and expenses of the 
University shall be audited by the Commission on Audit, and all disbursements shall 
be made in accordance with rules and regulations prescribed by the latter. 
SECTION 30. Institutional Autonomy as the Premier State University - To 
provide greater flexibility to the University, it shall be treated in a manner consistent 
with its institutiohal requirements as the premier state university by the service-wide 
agencies in the exercise of their respective jurisdiction. 
The University, taking into account national goals and priorities, shall 
exclusively determine its teaching, research and extension thrusts, plans, policies, 
priorities, programs and standards and, on the basis of such determination, the 
University shall recommend its annual budget to the President and Congress. 
14 


SECTION 31. Rule 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 shall be resolved in favor 
of the academic freedom and fiscal autonomy of the University of the Philippines. 
SECTION 32. Implementing Rules and Regulations. - The Board of the UFS 
shall issue, within sixty (60) days after the effectivity of this Act, the rules and 
regulations for the effective implementation of this Act. 
SECTION 33. Separability Clause - Should any provision herein be declared 
unconstitutional, the same shall not affect the validity of the other provisions of this 
Act. 
SECTION 34. Repealing Clause - Act NO. 1870 is hereby repealed. All laws, 
decrees, orders, rules, and regulation or other issuances or parts thereof inconsistent 
with the provisions of this Act are hereby repealed or modified accordingly. 
SECTION 35. Effectivity - This Act shall take effect fifteen (15) days after its 
publication in the OfJicial Guzette or in any newspaper of general circulation in the 
Philippines. 
Approved, 
15