SIXTEENTH CONGRESS )
REPUBLIC OF THE PHILIPPINES )
FIRST REGULAR SESSION )

HOUSE OF REPRESENTATIVES

Introduced by Representative Rufus B. Rodriguez and
Representative Maximo B, Rodriguez, Jr.

House Bill No, 4332
EXPLANATORY NOTE

In order to transform the Mindanao State University into a world-class university, it is
necessary to amend their charter and introduce improvements to the same.

The existing charter of the MSU is currently 6 decades old and is already obsolete,
unresponsive and Weak in relation to the University’s urgent needs and requirements in view
Of the prevailing domestic and global challenges it faces.

This bill seeks to address the weaknesses of the charter of the MSU and proposes
amendments that would strengthen the University and make it adaptable to today’s highly
globalized world,

In view of the foregoing consideration, immediate approval of this bill is highly

recommended.
nur
YE
BYRODRIGUEZ, JR.

MAXI


SIXTEENTH CONGRESS )
REPUBLIC OF THE PHILIPPINES )
FIRST REGULAR SESSION )

HOUSE OF REPRESENTATIVES

Introduced by Representative Rufus B. Rodriguez and
Representative Maximo B. Rodriguez, Jr.

4332

House Bill No.

AN AC
TO STRENGTHEN THE MINDANAO STATE UNIVERSITY SYSTEM

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

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

SEC 2. DECLARATION OF POLICY. The State shall promote, foster, nurture and protect
the right of all citizens to quality education. Toward this end, it is the policy of the State to
strengthen the Mindanao State University as a System.

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

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

SEC 3, PURPOSES OF THE UNIVERSITY. As a public and secular comprehensive
university and a community of scholars dedicated to the search for truth and knowledge, the
MSUS shall perform its unique and distinctive leadership in higher education and national
education development and shall continue its affirmative mandate for the Muslims and other
cultural communities through its combined functions, as follows:
a) Set standards and initiate innovations in teaching, research and faculty
development in philosophy, the arts and humanities, the social sciences, the
professions and engineering, natural sciences, mathematics, and technology, and
maintain centers of excellence in such disciplines and professions;
b) Serve as a graduate university providing advanced studies and specialization for
scholars, scientists, writers, artists and professionals, especially those who serve on
the faculties of state and private colleges and universities,
¢) Serve as a research university in the various fields of its expertise and
specialization by conducting basic and applied research and development, promoting
research in the various colleges and universities;
d) Lead as a public service university by providing various forms of community, public
and volunteer services, and scholarly and technical assistance to the government,
the private sector and civil society while maintaining its standards of excellence;
e) Provide opportunities for training and learning in progressive leadership,
responsible citizenship, and the development of democratic values, institutions and
practices; and


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

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

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

SEC 6. ACADEMIC FREEDOM. The University has the right and responsibility to exercise
academic freedom.

SEC 7. ACADEMIC EXCELLENCE. The University shall maintain and enhance its high
academic standards in the performance of its functions of instruction, research and
extension service.

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

SEC 9. DEMOCRATIC ACCESS. No student shall be denied admission to the University by
Teason of age, gender, nationality, religious belief, or political opinion or affiliation. The
University shall take affirmative steps to enhance the access of disadvantaged students to
its programs _and services.

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

SEC 11. THE BOARD OF REGENTS (BOR). The government of the MSUS is vested in a
Board of Regents known as the “Board of Regents of the Mindanao State University System”
composed of

1, The Chairperson, Commission on Higher Education as Chairperson;

2. The President, Mindanao State University as Vice Chairperson;

3. The Chairperson, Senate Committee on Education, Arts and Culture;

4. The Chairperson, House Committee on Higher and Technical Education;

5. The Secretary, Department of Budget and Management;

6. The Director-General, National Economic and Development Authority;

7. The Chairperson, Education, Culture and Sports Committee of the ARMM

Legislative Assembly;


8. The National President, Mindanao State University Alumni Association;

9. The President, MSU System Faculty Federation:

10. The President, Federation of Mindanao State University Supreme Student
Councils;

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

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

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

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

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

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

In ease of vacancy among appointive positions in the BOR, such vacancy shall be

filed by the BOR following guidelines set by it and such appointee shall hold office for the
unexpired term.

Members of the BOR shall receive a monthly hononarium and necessary expenses

he pon attendance of meetings of the BOR and other official Business, as authorized by
the BOR under existing laws.

SEC 12. POWERS OF THE BOARD OF REGENTS. The administration of the University
and the exercise of its corporate powers are vested upon the BOR

a)

b)
c)

qd)

e)

f)
9)

h)
i)
)

k)

The BOR shall exercise the following specific powers and duties
Define the thrusts of the University and adopt broad policy guidelines to ensure their
implementation;

Preserve the integrity of the Mindanao State University System;

Approve the creation, merger or abolition of academic programs upon
recommendation of the System University Council through the University President
Approve the graduation of students and grant of honors, as recommended by their
respective University Councils, through the University President:

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

‘Approve rules on student discipline upon recommendation of the University Council
through the University President:

Preale, organize, reorganize, merge or abolish constituent campuses, colleges,
institutes and other academic and administrative units of the University uport
recommendation of the University President;

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

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

Elect the University President for a term of six (6) years from a list of at least three
he Boe any earch committee appointed by the BOR. In the event of a vacancy,
the BOR shall, within six months, elect a president:

cin oot faculty members, officials and employees to draw up a position
classification and compensation plan for them, and any law to the contrary
notwithstanding, to fix and adjust salaries and benefits of all employees: ty


determine their hours of ‘service, and such other terms and conditions as it may deem
Proper, grant leave of absence, at its discretion, under such regulations as it may
Promulgate, and to remove them for cause, as provided by law after due investigation
and proper hearing.

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

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

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

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

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

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

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

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

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

4) Delegate any ofits powers to the University President or any other official, as it may
deem necessary;

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

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

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

Shall serve for a single term of six years. The University President shall be the Chief
Executive Officer, the Chief Academic Officer, and the head of the University Faculty. The


University President shall exercise the powers specifically provided for in this Act, those
determined by the BOR, those which usually pertain to the office of the president of a
university, and those, which are related to its functions. The compensation of the University
President shall be equivalent to the salary of a Department Secretary.

SEC 15. THE SECRETARY OF THE UNIVERSITY AND OF THE BOARD OF REGENTS.
There shall be a Secretary of the University, who shall also serve as Secretary to the BOR,
appointed by the BOR upon recommendation of the University President. The Secretary
shall be the custodian of all official records of the University.

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

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

SEC 17. POWERS OF THE SYSTEM UNIVERSITY COUNCIL. The System University
Council shall be the highest academic body of the University and shall exercise the following
powers:

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

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

©. Recommend to the BOR, through the University President, graduation of students
and grant of honors;

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

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

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

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

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


A\l provisions of law to the contrary notwithstanding, the Board of Regents, upon the
recommendation of the University President, may grant permit for the practice of profession
to professors, instructors, teachers or academic staff, provided, that they are not assigned to
perform administrative functions and that the said practice will not jeopardize their services
to the University,

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

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

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

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

@) Gifts and donations of real and personal properties of all kinds to the University shall
be exempt from the donor's tax and the same shall be considered as allowable
deductions from the gross income of the donors, in accordance with the provisions of
the National Internal Revenue Code of 1997, as amended; Provided, that the
allowable deductions shall be equivalent to 160 percent of the value of such
donation, Valuation of assistance other than money shall be based on the
acquisition cost of the property. Such valuation shall take into consideration the
depreciated value of property, in case said property has been used;

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

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

SEC 23. LAND GRANTS AND OTHER REAL PROPERTIES OF THE UNIVERSITY. The
State shall provide subsidy for the University in the form of a lump sum amount, through
general appropriations and other financial benefits, and in kind, through land grants,
donations and use of other real properties. All incomes derived from the land grants and
other real properties shall be used by the University, as may be decided by the BOR

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

b) The BOR may confirm contracts, mechanisms, and financial instruments, such as
Joint ventures, long-term leases, securitization and the like, entered into by the
University President; Provided, that such mechanisms and arrangements shall
sustain and protect the environment in accordance with law, and be exclusive of the
academic core zone of the campuses of the University;

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


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

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

e

SEC 24. AUDITING OF ACCOUNTS. The Commission on Audit shall audit all accounts and
disbursements of the University.

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

SEC 26. FISCAL AUTONOMY OF THE CONSTITUENT CAMPUSES. No portion of the
funds appropriated or allocated for a constituent campus shall be disbursed by the System
Administration.

SEC 27. RULES OF CONSTRUCTION. No statutory or other issuances shall diminish the
powers, rights, privileges, and benefits accorded to the University under this Act or enjoyed
at present by the University under other issuances not otherwise modified or repealed under
this Act, unless subsequent legislation expressly provides for their repeal, amendment or
modification. Any case of doubt in the interpretation of any of the provisions of this Charter,
the same shall be resolved in favor of the academic freedom and fiscal autonomy of the
University.

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

The University may use unexpended balances in any appropriation for purposes that
the Board of Regents determines. In addition to the regular appropriations and increases for
the University under the annual GAA, a peace-building and development fund shall be
appropriated equitably among Constituent Campuses in the amount of Php One Billion
Pesos (Php 1,000,000,000.00) per year for a period of five years, which shall likewise be
included in the annual GAA

SEC 29. SEPARABILITY CLAUSE. Should any provision herein be declared
unconstitutional, the same shall not affect the validity of the other provisions of this Act.

SEC. 30, REPEALING CLAUSE. Memorandum Order No. 45 and all laws, decrees, orders,
rules, and regulations or other issuances or parts thereof inconsistent with the provisions of
this Act are hereby repealed or modified accordingly.

SEC 31. TRANSITORY PROVISION. MSU shall, in addition to its laboratory high schools,
continue to operate its feeder community high schools located in conflictaffected areas
pursuant to its original mandate.



SEC 82. EFFECTIVITY. This Act shall take effect fifteen (15) days after its publication in the
Official Gazette or in any newspaper of general circulation in the Philippines.

Approved,