Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City, Metro Manila

SEVENTEENTH CONGRESS
Third Regular Session

HOUSE BILL NO. Ja

Introduced by Rep. Winston “Winnie” Castelo

EXPLANATORY NOTE

No less than the Constitution guarantees the right of every citizen an access to quality
education at all levels. Towards this end, the State shall promote and develop its educational
institutions by providing sufficient governmental support. The Polytechnic University of the Philippines
(PUP) serves as one of the country’s premier state universities by providing every citizen an
affordable yet quality higher education.

‘Through the years, the University had produced competent and fully-equipped graduates who
now serve as the country’s industry leaders especially in the field of science and technology,
engineering and architecture, education, information technology, law, business, public administration,
and social sciences. Results of surveys conducted by Jobstreet.com show that employers in the
Philippines consider graduates of PUP as their top choice for employment.

The country, with its thrust towards an unparalleled development in the new century, needs
more quality industry leaders who will serve under the principle of excellence, patriotism, and love for
knowledge and truth. In order to contribute more to this thrust, and for nation building and national
development, it is now high time to strengthen the Polytechnic University of the Philippines and
elevate this into a National Polytechnic University which will cater into educating and developing the
country's future industry leaders.

In so doing, PUP shall maintain and propagate the ideals for which its core values are based
—social justice, peace, freedom, academic excellence, ethical and moral standards, cultural identity
and respect for diversity, civil society engagement, and passion for learning. Furthermore it shall live
Up to its mandate of providing technical and professional instruction and training applied arts and
sciences, and to take steps to enrich the academic freedom in other fields of study and offer other
Courses that are essential to produce individuals with highly technological and specialized skills. It is
likewise bound to promote applied research, advance studies, and progressive leadership in the
aforementioned fields.

To this end, the State will empower PUP as an institution committed in prodfcing industry
leaders and professionals towards nation-building and national development.

For these reasons, the passage of this bill is most respectfully sought.



Republic of the Philippines
HOUSE OF REPRESENTATIVES
‘Quezon City, Metro Manila

‘SEVENTEENTH CONGRESS
Third Regular Session

- 8246
HOUSE BILL NO.

Introduced by Rep. Winston “Winnie” Castelo

“AN ACT AMENDING PRESIDENTIAL DECREE NUMBER 1341, OTHERWISE KNOWN AS THE
CHARTER OF THE POLYTECHNIC UNIVERSITY OF THE PHILIPPINES”

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

‘Section 1. Section 1 of PD 1341 is hereby amended to read as follows:

“Section 1. Declaration of Policy. — The Polytechnic University of the Philippines is
hereby strengthened into the Country's National Polytechnic University. in order to
execute its mandate, it is hereby declared that as the country's first national
polytechnic university. Along with its elevated status as the country's first national
polytechnic university, the University will aid and support other polytechnic state
Universities and colleges raise the bar by having the former serve as the latter's guide
in developing professional and technical programs.

“The University shall enjoy institutional autonomy and fiscal autonomy. It shall be
treated in a manner consistent with its institutional requirements by the service-wide
agencies in the exercise of their respective jurisdiction. Taking into account national
goals and priorities, it shall exclusively determine its teaching research and extension
thrusts, plans, policies, programs and standards. On the basis of such determination,
the national polytechnic university shall recommend its annual budget to the
President of the Republic of the Philippines and Congress.”

Section 2. Section 2 of PD 1341 is hereby amended to read as follows:

“Section 2. Primary Purpose. — The University shall primarily provide higher
‘occupational, technical and professional instruction and training in the fields of
engineering and architecture, applied sciences, accountancy, law, education,
business and management, and shall be strengthened as the country's National
Polytechnic University. It shall also promote applied research, advance studies, and
progressive leadership in the stated fields. As a national polytechnic university, PUP
is committed in implementing programs designed to ameliorate the pressing social
need by rendering services to individuals and communities and empowering citizenry
for sustainable development.”

Section 3. Section 3 of PD 1341 is hereby amended to read as follows:


“Section 3. Secondary Purpose. The University shall offer undergraduate and
graduate programs in the field of accountancy, engineering and architecture, applied
sciences, law, education, business and management. In addition, the University shall
offer other programs in the polytechnic areas in light of its purpose as a national
polytechnic university.”

‘Section 4. Section 4 of PD 1341 is hereby amended to read as follows:

“Section 4. The University Administration. — The administration of the university
shall be vested in the President of the university who shall render full-time service. He
shall be appointed by the Board of Regents, upon the recommendation of a duly
constituted search committee. He shall have a term of six (6) years without an
eligibility for reappointment for another term: Provided, That this provision shall not
adversely affect the terms of the incumbents; Provided further that in cases no
appointment was made, the incumbent President shall continue to hold the office in a
hold-over capacity, such period shall in no case be more than 90 days.

“The president shall be assisted by a vice president for academic affairs who shall be
appointed by the Board upon the former's recommendation without prejudice to the
appointment of more than one vice president when so warranted.

“In case of vacancy by reason of death, resignation, removal for cause or incapacity
of the president to perform the functions of his office, the Board of Regent shall have
the authority to designate an officer-in-charge pending the appointment of a new
president.

“In case of vacancy in the office of the president as mentioned in the immediately
preceding paragraph, his successors shall hold office for the unexpired term.”

Section 5. Section 5 of PD 1341 is hereby amended to read as follows:

“Section 5. Powers and Duties of the President. — Specifically, the President of
the University shalll have the following powers and duties in addition to those normally
appertaining to the Office of the President of the University:

*(@) He shall be the Chief Executive Officer of the University. As such, progressive
and dynamic, ethical, and intellectual and administrative leadership in the University
is expected of him and vested in him;

*(b) He shall be the head of the University Faculties and of any branch thereof,

“(c) He shall have general supervision over all academic as well as business and
financial operations of the University;

“(d) He shall promulgate and enforce general policies affecting any unit of the
University and take such actions which in his judgment are necessary for the
protection of property and general interest of the University, students and personnel
and for the operation of the University as a whole and shall inform the Board on all
matters relating to the operation and welfare of the University;

*(e) He shall appoint qualified persons to fil all vacancies and new positions subject
to the approval of the Board and make such other arrangements to meet
emergencies occurring between meetings of the Board so that the work of the
University shall not suffer.

“(f) He shall institute disciplinary action against any member of the University
Personnel, faculty or non-faculty as well as any student of the University whose
actions adversely affect the general interest of the University;


“(g) He shall decide appeals in controversies between ranking officals of the
University, his decisions being final and conclusive;

“(h) He shall grant or deny sabbatical leaves and leaves of absence without pay and/
or extension of such leaves as well as extension of fellowships or any form of
scholarship for a period not exceeding one academic year if the budget permits and
for reasons he may deem satisfactory;

*() He shall make ad-interim appointments;

“(j) He shall grant or withhold permission to reveal confidential matters affecting the
University or any unit thereof, as well as any action taken by the Board of Regents;
“(k) He shall grant permission for the use of buildings and premises of the University
for academic, professional and scientific conventions, for student and related
activities and to fix the fee thereof,

*(I) He is authorized to join the execution of all contracts, deeds, and instruments for
the proper conduct of the business of the University and to assign the same in behalf
of the University;

*(m) He shall prepare an annual report on the work of the past year and needs of the
current year including a budget with estimates of income and expenditures; and

*(n) He shall have such other powers as may be specifically authorized by the Board
of Regents. He may delegate in writing any of his specific functions to any office.”

Section 6. Section 6 of PD 1341 is hereby amended to read as follows:

“Section 6. The Board of Regents. — The governing body of the University shall be the
Board of Regents of the Polytechnic University of the Philippines (hereinafter referred to
as the “Board")

(1) The Board shall be composed of

(a) The Chairperson of the Commission on Higher Education as Chairperson;

(b) The President of the University as Co-Chairperson;

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

(4) The Chairperson of the House Committee on Higher and Technical
Education;

(e) The Director-General of the National Economic Development Authority;

(f) The President of the Alumni Association who will serve for a period of two (2)
years, provided that he is not in the employ of the University in any capacity
whatsoever;

(g) One Faculty Regent representing all teaching personnel, elected by the said
personnel in accordance with the rules and qualifications set out by the same
constituency, who shall serve for a period of two (2) years;

(h) One Student Regent, elected by the students in accordance with the rules
and qualifications set out by said constituency, who shall serve for a period of
‘one (1) year;

(i) One Staff Regent representing all non-teaching personnel, elected in
‘accordance with the rules and regulations set out by said constituency, who
shall serve for a period of two (2) years; and

(@ Two other Regents who are prominent citizens representing the private
sector who shall serve for a period of two (2) year and who shall be
appointed by the Board as recommended by the search committee organized
for the purpose.

(2) Compensation. — The members shall serve without compensation, but they shall
be reimbursed for necessary expense incurred in their attendance of meetings of


the Board or in connection with their official business authorities by resolution of
the Board,

(3) Vacancy. — In case of vacancy in the Board, except for the President of the
University, such vacancy shall be filed in the same manner as provided for the
predecessor, and such appointee shall hold the office only for the unexpired
portion of the term. In case of Regents representing a particular sector, their
membership shall cease upon suspension, separation, or recall. No person,
however, who has succeeded and served for more than 3 years of the unexpired
portion shall be eligible for appointment as president.

‘Section 7. Section 7 of PD 1341 is hereby amended to read as follows:

“Section 7. Powers and Duties of the Governing Board. - The governing board
shall have the following specific powers and duties in addition to its general powers of
administration and the exercise of all the powers granted to the board of directors of a
corporation under Section 36 of Batas Pambansa Blg. 68 otherwise known as the
Corporation Code of the Philippines;

(2) to enact rules and regulations not contrary to law as may be necessary to
carry to carry out the purposes and functions of the university;

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

(c) to receive in trust legacies, gifts and donations of real and personal
properties of all kinds, to administer and dispose the same when necessary
for the benefit of the university, subject to limitations, directions and
instructions of the donors, if any. Such donations shall be exempt from all
taxes and shall be considered as deductible items from the income tax of the
donor;

(4) to fix the tuition fees and other necessary school charges, such as but not
limited matriculation fees, graduation fees and laboratory fees, as their
respective boards may deem proper to impose after due consultations with
the involved sectors.

‘Such fees and charges, including government subsidies and other
income generated by the university, shall constitute special trust funds and
shall be deposited in any authorized government depository bank, and all
interests shall accrue therefrom shall part of the same fund for the use of the
university.

Any provision of existing laws, rules and regulations to the contrary
notwithstanding, any income generated by the university from tuition fees and
other charges, as well as from the operation of auxiliary services and land
grants, shall be retained by the university, and may be disbursed by the
Board of Regents for instruction, research, extension, or other programs!
projects of the university: Provided, That all fiduciary fees shall be disbursed
for the specific purposes for which they are collected.

If, for reason of control, the university, shall not be able to pursue any
project for which funds have been appropriated and, allocated under its
approved program of expenditures, the Board of Regents may authorize the
Use of said funds for any reasonable purpose which, in its discretion, may be
necessary and urgent for the attainment of the objectives and goals of the
universities, Provided further, That a portion of any amount of fees increased,


however, shall inure to the benefit of the College or Institute for the purpose
of faculty, physical facilities and equipment development;

(e) to authorize the construction or repair of its buildings, machineries,
‘equipment and other facilities and the purchase and acquisition of real and
Personal properties including necessary supplies, materials and equipment.
Purchases and other transactions entered into by the university through the
Board of Regents shall be exempt from all taxes and duties;

(f to appoint, upon the recommendation of the president and vice presidents
of the University;

(g) to fix and adjust salaries of faculty members and administrative officials
and employees subject to the provisions of the revised compensation and
classification system and other pertinent budget and compensation laws
governing hours of service, and such other duties and conditions as it may
deem proper; to grant them, at its discretion, leaves of absence under such
regulations as it may promulgate, any provisions of existing law to the
contrary notwithstanding; and to remove them for cause in accordance with
the requirements of due process of law;

(h) to approve the curricula, institutional programs and rules of discipline
drawn by the administrative and academic councils as herein provided;

(i) to set polices on admission and graduation of students;

() to award honorary degrees upon persons in recognition of outstanding
contribution in the field of education, public service, arts, science and
technology or in any field of specialization within the academic competence
of the university and to authorize the award of certificates of completion of
non-degree and non-traditional courses;

(k) to absorb non-chartered tertiary institutions within their respective
provinces in coordination with the CHED and in consultation with the
Department of Budget and Management, and to offer therein needed
Programs or courses, to promote and carry out equal access to educational
‘opportunities mandated by the Constitution ;

(|) to establish research and extension centers of the SUC where such will
promote the development of the latter;

(m) to establish chairs in the university and to provide fellowships for qualified
faculty members and scholarships to deserving students;

(n) to delegate any of its powers and duties provided for hereinabove to the
president and/or other officials of the university as it may deem appropriate
‘80 as to expedite the administration of the affairs of the university;

(0) to authorize an external management audit of the institution and to
institute reforms, including academic and structural changes, on the basis of
the audit results and recommendations;

(P) to collaborate with other governing boards of SUCs within the province or
the region, in coordination with the CHED and the Department of Budget and
Management, the restructuring of said colleges and universities to become
more efficent, relevant, productive, and competitive;

(q) to enter into joint ventures with business and industry for the profitable
development and management of the economic assets of the college or
institution, the proceeds from which to be used for the development and
strengthening of the university;

(f) to develop consortia and other forms of linkages with local government
Units, institutions and agencies, both public and private, local and foreign, in
furtherance of the purposes and objectives of the institution;

(8) to develop academic arrangements for institution capability building with
appropriate institutions and agencies, public or private, local or foreign, and


to appoint experts/specialists as consultants, or visiting or exchange
professors, scholars, researchers, as the case may be;

(1) to set up the adoption of modem and innovative modes of transmitting
knowledge such as the use of information technology, the dual system, open
leaming, community laboratory, etc., for the promotion of greater access to
higher education;

(u) to establish policy guidelines and procedures for participative decision-
‘making and transparency within the institution;

(v) To create, organize, reorganize, merge or abolish colleges, institutes, and
other academic and administrative units of the University; and

(w) to privatize, where most advantageous to the institution, management
and non-academic services such as health, food, building or grounds or
property maintenance and similar such other objectives.

Section 8. Section 8 of PD 1341 is hereby amended insofar as a section title was inserted, and to
read as follows:

“Section 8. Quorum and service of processes. — A quorum of the Board
of Regents shall consist of a majority of all members. All processes against the Board
cof Regents shall be served on the President or Secretary thereof.”

Section 9. Section 9 of PD 1341 is hereby amended insofar as a section title was inserted, and to
read as follows:

“Section 9. Meetings. — Regular meetings of the Board of Regents shall be
held every third Tuesday of the month. Special meetings of the Board may be called
upon by the Chairman or on request of the four (4) members of the Board. in both
cases, notice of such meetings shall be issued at least three (3) days prior to the
meeting,”

Section 10. Section 10 of PD 1341 is hereby amended and to read as follows:

“Section 10. University Officials. — The officers of the administration of the
University shall be University President, the Executive Vice-President, the Vice-
President for Administration, the Vice-President for Academic Affairs, the Vice-
President for Student Affairs, the Vice-President for Research and Extension, the
Vice-President for Finance, the Vice-President for Branches and Campuses, the
Vice-President for Legal Affairs, the Secretary of the University and such other
academic and administrative officials whose positions and functions are deemed
Necessary to assist in the effective and efficient administration of the University as
may be determined by the Board of Regents.”
Section 11. A new Section 11 is hereby inserted and to read as follows:
“Section 11. 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 chosen by the President selected from a shortlist of three nominees
submitted by a special selection committee established for the purpose. If a Dean
fails to complete his/her term, the President shall appoint an acting Dean while a
‘search process is in progress. In no case shall the search and election of the next
Dean be longer than sixty (60) calendar days from the date when the vacancy
occurs.”
Section 12. A new Section12-A is hereby inserted, amending PD 1341 to read as follows:

“Section 12-A. Land Grants and Other Real Properties of the University. -


(a) The State shall support the Polytechnic University of the Philippines as the
national polytechnic university in the form of lump sum amount, through general
appropriations and other financial benefits, 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 end of the
national polytechnic university, as may be decided by the board;

(b) Such parcels of land ceded by law, decree or presidential issuance to the
Polytechnic University of the Philippines are hereby declared to be reserved for the purposes
intended. The absolute ownership of the national polytechnic university over these
landholdings, including those covered by original and transfer certificates of tile in the name
of the Polytechnic 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
months from the date of effectivity of this Act: Provided, that all registration requirements
necessary for the issuance of the said titles have been submitted and complied with;

(©) The Board may plan, design, approve and/or cause the implementation of land
leases: 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 Polytechnic University of the Philippines: Provided, further, that such
mechanisms and arrangements shall not conflict with the academic mission of the national
polytechnic univer

(d) The Board may allow the use of the income coming from real properties of the
national polytechnic university as security for transactions to generate additional revenues
when needed for educational purposes;

(e) The Board may approve the implementation of joint ventures: Provided, That in
the event real properties of the national polytechnic university are involved, only the income
derived by the University from the use of the real properties shall be the subject of its
Participation or obligation in the joint ventures: Provided, further, that no joint venture shall
result in the alienation of the real properties of the national polytechnic university; and

(f Any plan to generate revenues and other sources from land grants and other real
Properties entrusted to the national polytechnic university shall be consistent with the
academic mission and orientation of the national polytechnic university as well as protect it
from undue influence and control of commercial interests: Provided, that such programs,
Projects or mechanisms shall be approved by the Board subject to a transparent and
democratic process of consultation with the constituents of the national polytechnic
university: Provided, further, that funds generated from such programs, projects or
mechanisms shall not be meant to replace, in part or in whole, the annual appropriations
provided by the national government to the national polytechnic university.”

Section 13. Anew Section 12-B is hereby inserted, amending PD 1341 to read as follows:

“Section 12-B. Safeguards on Assets Disposition. - The
preservation of the value of the assets of the national polytechnic university
shall be of primordial consideration

The sale of any existing real property of the national polytechnic
university shall be prohibited: Provided, That the Board may alienate real
property donated after the effectivity of this Act if the terms of the donation
specifically allow it.

Notwithstanding the provision of this Act or any other law to the
contrary, the lease of more than five (5) years of the assets of the national


polytechnic university and any transaction referred to in Section 22 shall be
subject to the following conditions and procedures:

(2) The transactions shall be discussed with the members of the
Board, in any of its formally convened regular or special meeting, at least one
(1) month before a decision is to be made;

(b) The transactions shall be based on a multi-year comprehensive
development plan, crafted and developed by qualified urban planning
professionals having at least five (5) years experience, with prior
consultations with and concurrence of third-party experts and duly approved
by a majority vote of all the members of the Board;

(©) The transactions shall be subject to competitive and public
bidding as provided under Republic Act No. 9184, otherwise known as the
"Government Procurement Reform Act"; and

(d) If the contract or transaction involves an amount more than Fifty
Million Pesos (P50,000,000.00), it shall be approved by three-fourths (3/4) of,
all the members of the Board: Provided, That the splitting of contracts, which
is by breaking up a contract into smaller quantities or amounts or dividing
contract implementation into artificial or arbitrary phases or subcontracts for
the purpose of circumventing this provision, shall not be allowed.”

‘Section 14. A new Section 12-D is hereby inserted amending PD 1341 to read as follows:

“Section 12-C. Tax Exemptions. - The provisions of any general or special
law to the contrary notwithstanding:

(@) All revenues and assets of the Polytechnic University of the Philippines used
for educational purposes or in support thereof shall be exempt from all taxes
and duties;

(b) Gifts and donations of real and personal properties of all kinds shall be
exempt from the 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 of 1997, as
amended: Provided, that the allowable deductions shall be equivalent to 150
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;

(¢) Importation of economic, technical, vocational, scientific, philosophical,

historical, legal and cultural books, supplies and materials duly certified by

the Board, including scientific and educational computer and software
equipment, shall be exempt from customs duties;

(d) The University shall only pay 0% value-added tax for all transactions

subject to this tax; and

(e) All academic awards shall be exempt from taxes.”

Section 15. Sections 11, 12 and 13 of PD 1341 are hereby repealed.
‘Section 16. A new Section 13 is hereby inserted amending PD 1341 to read as follows:

“Section 13. Rules of Construction. - No statutory or other issuances shall
diminish the powers, rights, privileges and benefits accorded to the national
polytechnic university under this Act or enjoyed at present, by it 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 Polytechnic University of
the Philippines.”
Section 17. Section 14 of PD 1341 is hereby amended to read as follows:
“Section 14. Appropriations. - In addition to the amount already
‘appropriated for the Polytechnic University of the Philippines for the current fiscal
year, there is hereby appropriated an initial sum of THREE BILLION pesos
(P3,000,000,000.00) from any amount available in the Treasury of the Philippines for
the purpose of carrying out the implementation of this Act. Further, an additional sum
of FIFTY MILLION pesos (P50,000,000.00) shall be appropriated separate and above
the said initial funding for each fiscal year for the first three years of the
implementation of this Act.”
Section 18. Separability Clause. - Should any provision herein be declared unconstitutional, the
‘same shall not affect the validity of the other provisions of this Act
Section 19. Amendatory and Repealing Clause. — Republic Act No, 8292, as amended, and all
laws, decrees, orders, rules, and regulations or other issuances or parts inconsistent with the
provisions of this Act are hereby amended and repealed or modified accordingly.
Section 20. 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.