ao4 ijci ;1& p q  
THIRTEENTH CONGRESS OF THE REPUBLIC ) 
OF-THE PHILIPPINES 
1 
Fii-st Regular Session 
1 
L: -. 
FIECELVEB BY : __l____..,l,~ 
“AN ACT 
TO STRENGTHEN THE UNIVERSITY OF THE PHILIPPINES 
THE NATIONAL UNIVERSITY” 
S E N A T E  
AS 
COMMITTEE REPORT NO. - 
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:) 
Submitted jointly by the Committees on 
and Means; and Finance on 
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Re: Senate Bill No. 
Recommending its approval in 
1106, 1334, 1399, and 1739( 
Bill Nos. 221, 566, 1066, 
Sponsors: Senators Flavier and Pangilinan 
Mr. President: 
The Committees on Education, Arts and Culture; Ways and Means; and 
Finance, to which were referred Senate Bill No. 221, introduced by Senator 
Osmefia 111, entitled: 
“AN ACT 
TO ENHANCE THE ACADEMIC FREEDOM AND INSTITUTIONAL 
AUTONOMY OF THE UNIVERSITY OF THIE PHILIPPINES, AND 
FOR QTHEP - PURPOSES” 
” 
Senate Bill No. 566, introduced by Senator Villa]: Jr., entitled: 
“AN ACT 
TO STRENGTHEN THE UNIVERSITY OF THE PHILLIPPINES AS 
THE NATIONAL UNIVERSITY” 


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“AN ACT 
TO STRENGTHEN THE UNIVERSITY OF THE PHILIPPINES 
THE NATIONAL UNIVERSITY” 
Senate Bill No. 1106, 
introduced by Senator Drilon, entitled: 
AS 
“AN ACT 
TO ENHANCE THE ACADEMIC FREEDOM AND INSTITUTIONAL 
AUTONOMY OF THE UNIVERSITY OF THE PHILIPPINES” 
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Senate Bill No. 1334, introduced by Senator Recto, entitled: 
“AN ACT 
TO STRENGTWN THE UNIVERSITY OF THE PHILIPPINES AS 
THE NATIONAL UNIVERSITY” 
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with the recommendation that the attached bill, Senate Bill No. 
entitled: 
“AN ACT 
TO STRENGTHEN THE UNIVERSITY OF THE PHILIPPINES AS 
THE NATIONAL UNIVERSITY” 
he approved in substitution of Senate Bill Nos. 221, 566, 1066, 1106, 
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1334, 1399, and 1739, with Senators Osmefia 111, Villar Jr., An 
ax d 6 0 ~  
Drilon, Recto, Pangilinan, and Ejercito Estrada (J.),,s authors thereof 
W 
Respectfully submitted: 
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Committee on Ways 
ate President 


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SEN. MANU 
Chairperson, dommittee 
and Member, Committee on 
SEN. 
Vice-Chairperson, Committee on Ways and Means, 
and Member, Committee on Finance 
MEMBERS: 
0 
Committees on 
and Culture, on Ways and Means, 
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?
SEN. RODOLFO G. BIAZON 
I 
Committees on Education, Arts 
a7zd Culture, on Ways and Means, 
and on FirLance 
rid on Finance 
, 
6” REVILLA JR. 
and on Finance 
m d &  . 
-. - 
. GAYETANO 
Committees on Education, Arts 
and Culture, on Ways and Means, 
h h l L 4 A h G L  
and on Finance 


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SEN. EDGARDO J. ANGARA 
Committees on Education, Arts 
and Culture, on Ways and Means, 
and on Finance 
SEN. MANUEL "LITO" XI. LARD 
Committees on Education, Arts 
and Culture, and on Finance 
<.$L;'$ 
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SEN. YERGIO R. OSMENA 111 
Committees on Education, Arts and 
Culture, on Ways and Means, 
and on Finance 
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Committees on Education, Arts 
and Culture, on Ways and Means, 
and on Finance fl& b
-
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SEN. LUISA <<LO& EJERCITO ESTRADA 
Committees on Education, A 
and Culture, and on 
Committees on Education, Arts 
and Culture, on Ways and Means, 
and on Finance 
SEN. M. A. MADRIGAL 
Committees on Education, Arts 
and Culture, and on Finance 
0 ESTRADA 


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EX-OFFICIO MEMBERS: 
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R. 
SEN. FRA 
PANGILINAN 
THE HONORABLE 
SENATOR FRANKLIN M .  DRILON 
Senate President 
Senate of the Philippines 
Pasay City 
- 
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‘ 
THIRTEENTH CONGRESS OF THE REPUBLIC ) 
OF THE PHILIPPINES 
1 
First Regular Session 
1 
S E N A T E  
(In Substitution of S. 
B. Nos. 221, 566, 1066, 1106,’ 
:.. 
1739)a*\d IGZT 
Introduced by Senators Osmeiia 111, Villar Jr., Angara, Drilon, Recto, 
Pangilinan, and Ejercito Estrada (J.), 
AN ACT 
TO STRENGTHEN THE UNIVERSITY OF THE PHILIPPINES AS THE 
NATIONAL 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 of the 
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Philippines Chart& of 2004.” 
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4. 
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SEC. 3. Purpose of the University. As the National Unive sity, a 
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public and secular institution of higher learning, and a commu ity, 01. 
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scholars dedicated to the search for truth and knowledge, the University of 
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the Philippines shall carry out its unique and distinctive leadership in 
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higher education and national education development through its 
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combined functions, as follows: 
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 University of the 
Philippines as the National University. 
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(1) Lead in setting academic standards and initiating innovations in 
teaching, research and faculty development in philosophy, the arts 


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and humanities, the 
social sciences, the professions 
and 
engineering, natural sciences, mathematics, and technology; and 
maintain centers of excellence in such disciplines and professi, ns; 
(2) Serve as a graduate university by providing advanced s udies 
and specialization for scholars, scientists, writers, artist, and 
professi.onals, especially those who serve on the faculties of state 
and private colleges and universities; 
(3) Serve as a research university in its various fields of expertise 
and specialization by conducting basic and applied research and 
development, and promoting research in the various colleges and 
universities; 
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(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) Provide opportunities, for training and learning in progressive 
leadership, responsible citizenship, and the development of 
democratic values, institutions and practice; and 
(6) Serve as a regional and global university in cooperation with 
international and scientific unions with networks of universities and 
scholarly and professional associations in the Asia-Pacific region 
and around the world. 
SEC. 4. The University System. The University of the Philip ines, 
hereinafter referred to as the Wniversity,” is a university system anq shall 
be composed of constituent universities established solely by its Board of 
Regents upon the recommendation of the President of the University, 
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SEC. 5. Academic Freedom. The University shall have the right to 
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enjoy and the responsibility to exercise academic freedom. 
SEC. 
6. Academic 
Excellence. 
The 
University 
has 
the 
responsibility to maintain and enhance its high academic standards in the 
performance of its functions of instruction, research, and extension and 
public service. 
SEC. 7. Social Responsibility. The University is committed t 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 
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volunteerism. 
SEC. 8. Democratic Access. No student shall be denied admission 
to the University by reason solely of age, gender, nationality, religious 
belief, ethnicity, physical disability, or political opinion or affiliation. The 
University shall take affirmative steps to enhance the access of 
disadvantaged students to its programs and services. 
SEC. 9. Institutional Autonomy as the National University. To 
pr0vid.e greater flexibility to the’university, it shall be treated in a manner 
consistent with its jiistitutional requirements as the National University by 
the service-wide agencies iii the exercise of their respective jurisdiction. 
SEC. 10. The Board of Regents. 
(1) Composition - The government of the University is vested in a 
board of regents known as the “Board of Regents of the University of the 
Philippines System,” hereinafter referred to as the “Board,” cornposed of: 
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(a) The Chairperson of the Commission on Higher Educati 
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Chairperson; 


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(b) The President of the University of the Philippines System as 
Vice-Chairperson; 
The Chairperson of the Senate Committee on Education, Arts 
(c) 
- and Culture; 
(d) The Chairperson of the House Committee on Higher and 
Technical Education; 
(e) The President of the U.P. Alumni Association, to serve as 
Alumni Regent during his or her incumbency in that position; 
(4 One Faculty Regent chosen by the full-time tenured 
culty 
term 
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members of the University from their ranks, to serve for 
of two (2) years; 
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(8) One Student Regent, to serve for a term of one (I) year, chosen 
by the students from their ranks in accordance with rules and 
qualifications-approved in a referendum by the students; 
(11) 
One Staff Regent representing the full-time permanent 
research, extension, and professional 
staff 
(REPS) and 
administrative personnel and chosen by them from their ranks, 
to serve for a term of two (2) years; and 
Three (3) other Regents who have distinguished themselves in 
their professions or field of specialization chosen from a list of 
five (5) 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 of Regents. 
At least two (2) of these Regents should be alumni. All these 
Regents shall be appointed by the Board of Regents and shall 
each serve for a term of two (2) years: Provided, That the 
Regents holding office as members of the Board of Regents at 
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the time of the effectivity of this Act shall continue to serve until 
the expiration of their appointments as provided in Executive 
Order NO. 204-A issued by the President of the Philippines on 
July 15, 1987. 
(2) Vacancy - In case of vacancy in the Board of Regents, except for 
the President of the University, such vacancy shall be filled in the same 
manner-as provided for the predecessor, and such appointee shall hold 
office for the unexpired term. In the case of a sectoral Regent, membership 
in the Board ceases upon suspension, separation, or recall. 
(3) Compensation - Members of the Board shall serve without 
compelisation other than actual and necessary expenses incurTed in 
attendance of meetings of the Board or other official business auth rized 
by the Board. 
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(4) Meetings; Quorum - The Board of Regents shall convene 
regularly. The Chairman of the Board may call a special meeting whenever 
necessary: Provided, That members are notified in writing at least three (3) 
days prior to said meeting. 
A majority of all members of the Board holding office at the time the 
meeting is called shall constitute a quorum for Board meetings. 
In no case shall any and all members of the Board appoint 
representatives to act on their behalf. 
SEC. 11. Powers and Duties of the Board of Regents. The 
administration of the University and the exercise of its corporate powers 
are vested in the Board of Regents. 
The Board shall exercise the following specific powers and duties: 
(a) 
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To define the thrusts of the University and adopt broad policy 
guidelines to ensure their implementation; 


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(b) 
(c) 
To preserve the integrity of the University; 
To approve the institution, merger or abolition of academic 
programs upon recommendation of the University Council of 
the Constituent University concerned through the President of 
the University; 
(d) To approve the graduation of students and grant of honors, as 
recommended by their respective University Councils through 
the President of the University; 
To confer honorary degrees upon persons in recognition of 
learning, statesmanship, or eminence in literature, science, or 
art, upon recommendation of a committee created by the 
President of the University: Provided, That such degrees shall 
not be conferred in consideration of any payment, gift or other 
discipline upon .'recommendation of the University C uncils' 
valuable consideration; 
To approve the institutional programs and rules on s udent 
through the President of the University; 
To create, organize, reorganize, merge or abolish constituent 
universities, colleges, institutes, and other academic and 
administrative units of the University; 
To establish professorial chair awards; 
To provide fellowships, scholarships and grants, and to award 
the same to faculty, staff and students having special evidence 
of merit; 
To elect the President of the University for a term of six (6) 
years following a process of consultation with the University 
community based on standards and guidelines set by the Board 
(e) 
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(g 
(g) 
(h) 
(i) 
(j) 


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of Regents. In the event of a vacancy, the Board of Regents 
shall elect a president who shall serve a full term within six (6) 
months from the occurrence of the vacancy; 
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; to determine their 
hours of service, and such other terms and conditions of 
employment as it may deem proper; to grant leave of absence 
under such regulations as it may promulgate, any other 
(IC) 
provisions of law to the contrary notwithstanding; and to 
remove._ them for cause as provided by law after due 
investigation and proper hearing; 
(I) To extend, with their consent, the tenure of faculty members of 
the University beyond the compulsory retirement age, on 
recommendation of the units upon endorsement of the 
President of the University, whenever their service 
are 
especially needed; 
j., 
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(m) To fix the tuition fees and other necessary school charges, as 
the Board may deem proper to impose, after due consultation 
with the students concerned. Such fees and charges, including 
government support and other income generated by the 
University, shall constitute special trust funds and shall be 
deposited in an 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. 


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Notwithstanding any provision of law to the contra , all 
incomes generated by the University or by its subsidiaries shall, 
upon their collection, be retained by the University I;' 
and 
disbursed at the discretion of the Board 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 its approved program of 
expenditures; 
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; 
To authorize the construction, maintenance or repair of its 
buildings, machinery, equipment and other facilities, and the 
purchase and acquisition of real and personal properties, 
including necessary supplies, materials and equipment; 
To receive in trust legacies, gifts and donatio.ns of re 1 and 
personal property of all kinds and to administer and dispose 
the same when necessary for the benefit of the University and 
subject to the instructions of the donor, if any; 
(n) 
(0) 
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(p) 
(q) Notwithstanding any provision of law to the contrary, to 
authorize its faculty and staff to travel abroad in order to study, 
deliver papers, attend conferences and disseminate research: 


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Provided, That the fellowship, scholarship or grant is authorized 
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by the Board of Regents; 
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TO exercise the general powers set out in the Corporation Code; 
To delegate any of its powers to the President of the Uni ersity 
or any other officials or officers as it may deem n.ecessary; 
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To prescribe rules for its own government and the discipline of 
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the faculty and other personnel and to enact for the 
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government of the University such general policies, rules and 
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regulations, not contrary to law, as are consistent with the 
(r) 
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SEC. 12. The President of the University. The President of the 
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University is the chief academic officer, head of the University Faculty and 
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the chief executive officer of the University. The President of the University 
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shall exercise the powers specifically provided for in this Act, those 
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determined by the Board of Regents, those which usually pertain to the 
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office of the president of a university, and those which are related or 
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necessary to its functions. The Board of Regents shall determine the 
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purposes of the University; and 
To exercise such powers as may be proper and necessary to 
carry out the objectives of this Act. 
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compensation of the President of the University. 
The President of the University shall be appointed by the Board of 
Regents. S/He shall serve for a term of six (6) years without preju ice to 
one reappointment after a determination of outstanding performanc 
committee created by the Board of Regents: Provided, That, the President 
of the University sought to be reappointed shall not vote or participate in 
the creation of such committee. 
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SEC. 13. The Secretary of the University and of the Board of 
Regents. There shall be a Secretary of the University appointed by the 
Board of Regents, 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. 
SEC. 14. The University Council. There shall be in each 
constituent university a University Council consisting of the Chance or as 
Chairperson, and of all the faculty members in the University holdi 1 
g the 
rank of assistant professor and higher as members. 
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SEC. 15. Powers of the University Council. The University 
Council shall be the highest academic body of each constituent university 
and shall exercise the following powers: 
Fix the requirements for admission to any college or unit, 
graduation, and the grant of honors subject to the minimum 
system-wide requirements; 
Prescribe the academic programs including their institution, 
revision, abolition and merger, subject to the approval of the 
Board of Regents; 
Recommend to the Board of Regents the graduation of students 
and the grant of honors; 
Exercise disciplinary power over the students, through the 
Chancellors or their appropriate committees, subject to 1-eview 
hy the President of the University according to the limits 
prescribed by system-wide rules on student discipline; 
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Undertake the periodic review of academic courses, prog 
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standards, thrusts and policies; and 


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(f) 
Adopt internal rules of procedure consistent with the provisions 
of this Act. 
SEC. 16. The Chancellor of the Constituent University. The 
administration of-.each 
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constituent university is vested in the Chancellor 
insofar as authorized by the Board of Regents and the President of the 
University. The Chancellor of the constituent university shall be elected by 
the Board of Regents upon nomination of the President of the University, 
following a process of consultation with the constituents of the 
Board of Regents. The Chancellor shall report to the President ~f the 
Constituent University based on standards and guidelines set 
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 of 
Regents. The Board of 
Regents shall determine the term and 
compensation of the Chancellor. 
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SEC. 17. The Faculty. The teaching staff of each college shall 
constitute its faculty. The College Faculty shall be presided over by a 
Dean. The Dean shall be elected by the Board of Regents on nomination 
by the President of the University and upon recommendation of the 
Chancellor of 
the constituent university, following a process of 
consultation with the constituents of the college based on standards and 
guidelines set by the Board of Regents. 
SEC. 18. Appointment Requisites and Practice of Profession. 
Faculty members, as well as research, extension and professional staff 
(REPS) of the University shall be exempt as such from any civil service 
examination or regulation as a requisite to appointment. The provisions of 
existing law to the contrary notwithstanding, licensing requirements for 
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professional regulatory boards shall not affect appointments to faculty 
positions. In the appointment of faculty members, no religious test shall 
be applied, nor shall the religious or political opinions or affiliations of the 
faculty members of the University be made subject of examination or 
inquiry. 
Sec. 19. Student Affairs. (1) There shall be established in the 
Universiiy the folI6wing student councils: for every college and degree- 
granting institute, a college or institute student council; and for every 
constituent university, a university student council. Each student council 
shall advance the interests, welfare, and aspirations of its constituents. It 
shall have the power to adopt internal rules of procedure consistent with 
the provisions of this Act. 
Each student council shall be composed of students of an aca emic 
unit of the University duly elected by the students of such unit. Each 
member of the student council shall serve for a term of one (1) year, 
without prejudice to re-election. 
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(2) Every constituent university, college, institute, and department 
of the University shall have the right to organize a student publication 
funded by student fees and enjoy freedom of expression and autonomy in 
the formulation of editorial policies. 
SEC. 20. Land Grants and Other Real Properties of the 
University. 
(a) The State shall provide subsidy to the University of the 
Philippines System as the National University in the form of 
lump sum amount, through general appropriations and other 
financiaj--benefits, and in kind, through land grants and 
donations and use of other real properties. To carry out the 


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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 of 
Regents. 
(b) Such parcels of land ceded by law, decree or presidential 
issuance to the University of the Philippines, are hereby 
declared to be reserved for the purposes intended. The absolute 
ownership of the University over these landholdings, including 
those covered by original and transfer certificates of title in the 
- name of the University of the Philippines and their future 
derivatives, is hereby confirmed. Where the 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 , f this 
Act provided that all registration requirements necessary or the 
issuance of the said titles have been submitted and co plied. 
with. 
The Board of Regents may plan, design, approve and/or cause 
the implementation of contracts, mechanisms, and financial 
instruments, such as joint ventures, long-term leases, fully- 
owned subsidiaries, securitization and, in exceptional cases, 
sale, to give the University the flexibility to generate revenues 
and other resources from land grants arid other properties: 
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 of the Philippines: Provided, finally, that such 
I T 
(c) 


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mechanisms and arrangements shall not conflict with the 
academic mission of the University. 
SEC. 21. Tax Exemptions. The provisions of any general or special 
law to the contrary notwithstanding: 
.(1) 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; 
(2) 
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(3) Importation of economic, technical, vocational, scientific, 
philosophical, historical and cultural books, supplies and 
materials, including scientific and educational computer and 
software equipment, shall be exempt from customs duties; 
The University shall be exempt from payment of value- dded 
tax; and 
All honoraria for professional chair awards and other Uni ersity 
awards to faculty and staff shall be exempt from taxes. 
(4) 
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I, 
(5) 
SEC. 22. Auditing of Accounts. A11 accounts and disbursements of 
the University shall be audited by the Commission on Audit. 
SEC. 23. 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 
' f  the 
provisions of this Charter shall be resolved in favor of the aca emic 
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freedom and fiscal autonomy of the University of the Philippines. 
. 
' 1. 
SEC. 24. Appropriations. The amount needed to carry out the 
implementation of this Act shall be charged against the current fiscal 
year's lump sum appropriation and other internal funds of the University. 
Thereafter, such lump sum representing the national government's 
responsibility for the continued growth, operation and maintenance of the 
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SEC. 25. Separability Clause. Should any provision herein be 
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declared unconstitutional, the same shall not affect the validity of the 
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other provisions of this Act. 
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SEC. 26. Repealing Clause. Act No. 1870, as amended, and all 
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laws, decrees, orders, rules, and regulations or other issuances or parts 
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thereof inconsistent with the provisions of this Act are hereby repealed or 
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modified accordingly. 
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circulation in the Philippines. 
University 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. 
SEC. 27. Effectivity. This Act shall take effect fifteen (15) days after 
its publication in the Official Gazette or in any newspaper of g neral 
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Approved,