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

Sixteenth Congress
First Regular Session

HOUSE BILL. no,__3464

Introduced by Representative Alfredo D. Vargas III

EXPLANATORY NOTE

It is the policy of the State to promote, and protect the right to accessible,
equitable and quality education‘, Further, it is a commitment of the State to
“establish, maintain, and support a complete adequate, and integrated system of
education relevant to the needs of the people and society?.”

Quezon City is the most populated city in the country with a population of
2,761,7203. Of this figure, eighteen percent (18%) of the city’s population is
based in the Novaliches District.

In the year 1998, the United Nations Educational, Scientific and Cultural
Organization stressed the “unprecedented demand for and a great diversification
in higher education, as well as an increased awareness of its vital importance for
sociocultural and economic development’.” As the population continues to grow,
a greater demand for accessible basic and tertiary education is being confronted
by the government. To address this, more schools and higher education
institutions should be established.

This bill seeks to create the Novaliches State University, a state university
that will cater to the educational needs of the people from Novaliches and its
neighboring communities. As commerce, trade, and other industries continue to
grow in the District, an able and competent labor and work force should also be a
priority of the government. This can be attained through public investment in the
higher education sector. Hence, the speedy approval of this bill is sought, Z

ALFREDO'D. VAHGAS III

Section 1, Article XIV of the 1987 Philippine Constitution

* Item 2, Section 2, Article XIV of the 1987 Philippine Constitution
* 2010 Census of the National Statistics Office

“Ibid.

1 ). 09 October 1998, UNESCO's World Declaration on Higher Education for the Twenty-First
Century. [Online]. UNESCO, Available:
bttp://www.unesco.org/education/educprog/wche/declaration_eng.htm. (Accessed: 27 November
2013)


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

Sixteenth Congress
First Regular Session

3464

HOUSE BILL NO.

Introduced by Representative Alfredo D. Vargas III

AN ACT
CREATING A STATE UNIVERSITY IN THE FIFTH LEGISLATIVE DISTRICT OF
QUEZON CITY TO BE KNOWN AS THE NOVALICHES STATE UNIVERSITY AND
APPROPRIATING FUNDS THEREFOR

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

Section 1. Short Title. - This Act shall be known as the “Novaliches State
University Charter.”

Section 2. Declaration of Policy. - The State shall promote, foster, nurture
and protect the right to accessible, equitable and quality education. Through a
refocused institutional culture and improved governance, the Novaliches State
University shall aim to become one of the State’s main higher education provider
in the region.

Section 3. Creation of the Novaliches State University. - There is hereby
created a Novaliches State University hereinafter referred to as the State
University.

Section 4, General Mandate. - The State University shall provide a unified
corporate structure to guarantee common academic standards and institutional
identity. It shall foster complete unity and deep collaboration among its
constituency towards the following strategic goals:

a. To uphold absolute academic freedom;

b. To create greater critical mass and economies of scale that will enable
the State University to achieve greater efficiency and effectiveness;

c. To build greater synergy among the constituency to establish and
improve the State University academic portfolio, boost academic
performance to higher levels and enhance teaching quality in more
diverse academic disciplines; and


d. To utilize governance structures more effectively by having a single
governing board that can better focus on responding to development
needs and combining disconnected academic and non-academic
functions that can create additional capacity for other appropriate
pursuits,

Section 5. Administration. - The State University shall have the general
powers of a corporation set forth in Batas Pambansa Blg. 68, as amended,
otherwise known as “The Corporation Code of the Philippines.’ The
administration of the State University and the exercise of its corporate powers
shall be vested exclusively in the Board of Regents.

Section 6. Governing Board. - The Governing Board of State University
shall be the Board of the Regents, hereinafter referred to as the Board, which
shall be composed of the following:

a, The Chairperson of the Commission on Higher Education (CHED) or

his/her representative, as Chairperson;

b. The President of the State University, as vice Chairperson;

c. The Chairperson of the Committee on Education, Arts and Culture of

the Senate;

d, The Chairperson of the Committee on Higher and Technical Education

of the House of Representatives;

e. The Regional Director of the National Economic and Development

Authority (NEDA);
f. The Regional Director of the Department of Science and Technology
(Dost);

g. The President of the faculty union/association;

h. The President of the university student council;

i. The President of the alumni association; and

j. Two (2) prominent alumni from the private sector who have

distinguished themselves in their profession or fields of specialization
and are active in dominant industries in the region that are directly
relevant to the university's need and external affairs, as members,

‘The Board of Regents shall appoint the two (2) prominent alumni from a
list of at least five (5) qualified persons who are residents of Quezon City, as
recommended by the search committee constituted by the State University
President, in consultation with the other members of the Board, based on the
normal standards and qualifications for the position.

The term of office of the president of the federation of alumni associations
shall be co-terminus with their respective terms of office, as set forth in their
respective constitutions and by-laws.


The two (2) prominent citizens shall serve for a term of two (2) years
from the date of their appointment.

Section 7. Promulgation and Implementation of Policies. The Board
shall promulgate and implement policies in accordance with the declared State
policies on education, including those stated in Section 2 hereof, and other
pertinent provisions of the Philippine Constitution on education, science and
technology, and other fields deemed important for economic growth in the City.

Section 8. Powers and Duties of the Board of Regents. - The Board shall
have the following specific powers and duties, in addition to its general powers
granted to the board of directors of a corporation under existing laws:

a) Promulgate rules and regulations not contrary to law as may be
necessary to carry out the purposes and functions of the Regional
University System;

Receive and appropriate all sums as may be provided for the support
of the Regional University System in the manner it may determine in
its discretion, in order to carry out the purposes and functions of the
Regional University System;

Import duty-free economic, technical and cultural books or
publications, upon certification by the CHED that such books are for
economic, technical, vocational, scientific, philosophical, historical or
cultural purposes, in accordance with the provisions of the Tariff and
Customs Code, as amended;

Receive in trust legacies, gifts and donations of real and personal
properties of all kinds and to administer and dispose of the same
when necessary for the benefit of the Regional University System, and
Subject to the limitations, directions and instructions of the donor, if
any.

b

9

)

Such donations shall be exempt from the donor's tax and the same shall
be considered as allowable deductions from the gross income in the computation
of the income tax of the donor, in accordance with the provisions of the National
Internal Revenue Code (NIRC), as amended:

Provided, That such donations shall not be disposed of, transferred or sold;

€) Fix the tuition fees and other necessary school charges, such as but not
limited to, matriculation fees, graduation fees and charges shall, including
government and subsidies and other income generated by the State University,
constitute special trust funds and shall be deposited in any authorized
government depository bank, and all interests that shall accrue therefrom shall
form part of the same funds for the use of the State University. In cases where


tuition and other fees adjustment shall be implemented, a documented
consultation compendium on the proposed increase should be submitted to the
Board in order to support the Board's action.

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

If, for reasons beyond its control, the State University shall not be able to
pursue any project for which the funds have been appropriated and allocated
under its approved program of expenditures, the Board may authorize the use of
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 State University:

£) Adopt and implement a socialized scheme of tuition and other school
fees for greater access to poor but deserving students;

g) Authorize the construction or repair of its buildings, machinery,
equipment and other facilities, and the purchase and acquisition of real property,
including necessary supplies, materials and equipment;

h) Designate, upon recommendation of the President of the State
University, the vice presidents, deans, directors, heads of departments, head of
campus, faculty members, and other officials and employees of the university;

i) Fix and adjust salaries of faculty members and administrative officials
and employees, subject to the provisions of the Revised Compensation and
Position Classification System and other pertinent budget and compensation
laws governing hours of service, and such other duties and conditions as it may
deem proper; grant them, as its discretion, leaves of absence under such
regulations as it may promulgate, any provision of existing law to the contrary
notwithstanding; and remove them for cause in accordance with the
requirements of due process of law;

j) Approve curricula, instructional programs and rules of discipline drawn
by the Administrative and the Academic Councils herein provided;

k) Set policies on the minimum system-wide requirements for admission,
graduation of students and grant of honors;

1) Award honorary degrees upon persons in recognition of their
outstanding contribution in the fields of education, public service, arts, science


and technology, agriculture or in any field of specialization within the academic
competence of the State University: Provided, That such degrees shall not be
conferred in consideration of any payment, gift or other valuable consideration;

m) Establish research and extension centers of the State University where
such will promote the development of the latter;

n) Establish professorial chairs in the State University and provide
fellowships for the qualified faculty members and scholarships to deserving
students;

0) Delegate any of its powers and duties to the president or other officials
of the State University, as it may deem appropriate, so as to expedite the
administration of the affairs of the State University;

p) Authorize an external management audit of the State University,
subject to the rules and regulation of the Commission on Audit (COA) and
institute reforms, including academic and structural changes, on the basis of the
audit results and recommendations;

q) Collaborative with other governing boards of the State Colleges and
universities as well as private colleges and universities in working towards the
development of the State University to become more efficient, relevant,
productive and competitive;

r) Enter into joint ventures, which may be initiated by the constituency,
with business and industry for the profitable development and management of
the economic assets of the State University; Provided, these ventures shall not
affect the academic character of the State University;

s) Develop consortia and other economic forms of linkages with the local
government unit (LGU), as well as public or private institutions and agencies,
local and foreign, in the furtherance of the purposes and objectives of the State
University;

t) Develop academic arrangements for institution-capability building with
appropriate institutions and agencies, public and private, local and foreign, and
appoint experts or specialists as consultants, part-time or visiting or exchange
professors, scholars or researches, as the case may ne;

u) Set up the adoption of modern and innovative models of transmitting
knowledge such as the use of information technology, the dual system, open
learning or distance education and community laboratory for the promotion of
greater access to education;

v) Establish policy guidelines and procedures for participative decision-
making and transparency within the State University;


w) Privatize, where the most advantageous to the State University, the
management of non-academic services such as health, food, building or grounds
or property maintenance and such other similar activities;

x) Extend the term beyond the age of retirement but not beyond the age
of seventy (70) of the State University President whose performance has been
unanimously rated by the Board as outstanding, after unanimous
recommendation by the Performance Evaluation Committee (PEC); and

Section 9. Meetings of the Board. - The Board of the Regents of the State
University shall regularly convene at least once every quarter. However, the
Chairperson of the Board may, upon three (3) days prior written notice, call a
maximum of four (4) special meetings within a year, whenever necessary.

All regular meetings of the Board shall be held in either the main campus
or in any of the constituent units as may be determined by the Regional
University System President in consultation with the chancellor, except for the
certain meritorious and expedient reasons where special meetings may be held
in venues outside the Region.

‘A quorum of the Board of Regents shall consist of a majority of all its
members holding office at the time of the meeting: Provided, That the
Chairperson of the Board or the State University President is among those
present in the meeting.

In the absence of the Chairperson of the CHED, a duly designated
Commissioner of the CHED shall represent the Chairperson in the meeting
however, that during this meeting, the State University President as Vice-
Chairperson shall be the presiding officer: Provided, further, That this proviso
notwithstanding, the Chairperson of the CHED is hereby authorized to designate
a CHED Commissioner as the regular Chair of the Board, in which case said CHED
Commissioner shall act as the presiding officer.

In case the Chairpersons of the Congressional Committees on Education
shall not be able to attend the said meeting, their respective representatives shall
have the same rights and responsibilities as a regular member of the Board,
except in cases of the appointment of the State University officials, including the
State university President, wherein the Chairpersons shall send an official
communication to the Board transmitting their approval of the
appointment/designation.

The members of the Board shall not receive any salary or honoraria but
shall be entitled to reimbursements for actual and necessary expenses incurred,
either in their attendance to meetings of the Board or in connection with other


official business authorized by resolution of the Board, subject to existing laws
and regulations.

Section 10. State University President. - The State University shall be
headed by the full-time president who shall be appointed by the Board subject to
the guidelines, qualifications and standards set by the Board and upon
recommendation of a duly constituted search committee; Provided, the candidate
shall be a doctorate degree holder. The State University President shall have a
term of four (4) years and shall be eligible for reappointment for another term.

In case of vacancy in the office of the State University President by reason
of death, compulsory retirement, resignation, removal for cause or incapacity to
perform the functions of the office, the Board shall have the authority to
designate an officer-in-charge of the State University within six (6) months from
the date of vacancy, pending the appointment of new State University President;
Provided, the officer-in-charge shall only serve a period of not more than one (1)
year. The State University President appointed by the Board after the occurrence
of any aforementioned events shall serve the unexpired portion of the term,
subject to re-appointment for another term if warranted.

The powers and duties of the President of the State University, in addition
to those specifically provided in this Act, shall be those usually pertaining to the
Office of the President of similar universities.

The salary of the State University President shall be in accordance with
the Revised Compensation and Position Classification System and shall be
comparable to that being received by the Presidents of similar educational
institutions.

Section 11. Vice-President. - The State University President shall be
assisted by a vice president for academic affairs, a vice president for
administration and finance and a vice president for research and extension and
development, and such other vice presidents as may be determined by the Board,
but not exceeding five (5) vice presidents serving at a time. They shall be
designated by the Board, upon the recommendation of the State University
President. They shall serve as staff and may assume line functions upon the
direction of the State University.

Section 12. Secretary of the University of the Board. - There shall be a
Secretary of the University and of the Board of Regents to appointed by the
Board, who shall keep such records of the University and the Board, as may be
designated by the Board.

Section 13. Executive Administrative Council- There shall be a
university-wide administrative council headed by the State University President,



with membership consisting of the vice-president for administration and finance,
deans and other officials as may be deemed necessary by the Board. The
Executive Administrative Council shall set the direction and administrative
policies on a university-wide basis and shall perform oversight functions on
administrative matters.

Section 14, Administrative Council. - There shall be an administrative
council in the State University with the President as Chairman, the deans and
directors of equal rank within the university as members. The Administrative
Council shall formulate and recommend plans, programs and policies for
administration, finance and production for approval of the Board.

The President of the student council of the University may be allowed to
attend the meetings of the Administrative Council as an observer.

Section 15. Academic Council.- There shall be an Academic Council with
the State University President as chairperson, the vice-presidents, chancellors,
deans and all faculty members with an academic rank of at least Assistant
Professor as members.

Section 16. Powers of the Academic Council- The Academic Council is
the supreme academic advisory body in the State University and shall be
responsible for the following functions:

a. Set academic policies and minimum academic standards;

b. Perform oversight functions on all academic matters pertaining to the
State University and its programming;

c. Formulate, evaluate, and recommend to the State University President
policies and procedures which pertain to the development,
maintenance, and improvement of the State University program in
academic matters;

d. Fix the requirement for admission to any college or unit or any
academic program or course offering and for graduation and
conferment of a degree, and the grant of honors subject to the
minimum system-wide requirements;

e. Prescribe the academic programs including their institutions, revision,
abolition, and merger, subject to the approval of the Board;

f. Recommend to the Board the graduation of students and the grant of
honors ;

g. Undertake a periodic review of academic courses, programs
standards, thrust and policies;

h. 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


or examinations on missed school days or examinations which
coincided with the exercise of their established religious beliefs;

i, Adopt internal rule or procedures consistent with the provisions of
this Act; and

j. Perform other corollary functions consistent to the goals and
objectives of the State University.

Section 17. Research, Extension and Enterprise Development (REED)
State University Council.- There shall be a REED State University Council which
shall perform oversight functions and provide direction on REED matters in the
university. The REED State University Council shall be headed by the Vice
president for Research Extension and Development, with the Chairpersons of
each academic department as members.

Section 18. Faculty. - No political beliefs, gender preference, physical
disability, cultural or community affiliation or ethnic origin, and religious opinion
or affiliation shall be a matter of inquiry in the appointment of the faculty
members of the State University: Provided, That the appointment shall be subject
to the guidelines, qualifications and standards set by the Board consistent with
existing policies and laws: Provided, further, That no member of the faculty shall
teach for or against any particular church or religious sect.

Section 19. Scholarship Program or Admission. - The State University
shall provide a scholarship program and other affirmative action programs to
assist poor but deserving students who qualify for admission to the State
University.

No student shall be denied admission to the State University by reason of
age, gender, religion, political beliefs, cultural or community affiliation or ethnic
origin.

Section 20. Academic Freedom and Institutional Autonomy. ~ The State
University shall enjoy academic freedom and institutional autonomy, pursuant to
paragraph 2, Section 5 of Article XIV of the 1987 Constitution.

Section 21. Assets, Liabilities and Personnel. - All assets, real and
personal, personnel and records of the State University, as well as liabilities or
obligations, are hereby transferred to the State University. The positions, rights
and security of tenure of the faculty members and personnel employed in the
university under existing laws prior to this Act shall be respected.

All assets donated to the State University under its former juridical
personality shall be deemed donated to and hence a property of the new State
University as a duly constituted body or judicial entity.


Section 22. Appropriations. - The amount necessary to carry out the
initial implementation of this Act shall be included in the annual General
Appropriations Act following its approval.

In addition, the amount of One Hundred Million Pesos (P100, 000,000.00)
is hereby appropriated in addition to the proposed appropriations for the
establishment of the State University.

Section, 23, Land Grants and Other Real Properties of the State
University. - The State shall provide support to the State 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 acquired by the State
University shall be used to further the ends of the State University, as may be
decided by the Board.

The Board shall plan, design, approve or cause the implementation of
financial mechanisms, such as joint ventures and long-term leases, to give the
Regional University System the most advantageous position in generating
revenues and other resources from the land grants and other real property
entrusted by the Filipino people: Provided, That such long-term leases shall not
conflict with the State University’s academic mission, as well as, sustain and
protect the environment: Provided, further, That the plans shall preserve the
academic core zone of the university: Provided, finally, That funds from the long-
term leases shall not be meant to replace, in whole or in part, the annual
appropriation provided by the national government to the State University.

Section 24. Tax Exemptions, - The provision of any general or special law
to the contrary notwithstanding:

a, All revenues and assets of the State University used actually, directly
and exclusively for educational purposes shall be exempt from all
taxes and duties;

b. Gifts and donations of real and personal properties of all kinds shall be
exempt from the donors’ tax and the same shall be considered as
allowable deductions from the gross income of the donor, in
accordance with the provisions of the National Internal Revenue Code,
as amended;

c. Importation of economic, technical, vocational, _ scientific,
philosophical, historical and cultural books, supplies, equipment,
machinery and other materials, including scientific and educational


computer and software equipment, shall be exempt from customs
duties; and

d, The State University shall be exempt from payment of value-added tax
on its transactions which are primarily and directly undertaken for
educational purposes.

Section 25. Development Plan and Institutionalization. ~ Within one
hundred twenty (120) days after the approval of this Act, the Commission on
Higher Education shall accomplish the following:

a) Submit a medium term development plan, including its corresponding
recommendation to the Department of Budget and Management;

b) Accordingly set up its organizational, administrative, as well as,
academic structure, including the appointment of the State University
key officials; and

©) Determine the courses and programs to be offered in the State
University.

Section 26. Suppletory Application, - The provisions of the Republic Act.
8292, otherwise known as the "Higher Education Modernization Act of 1997,”
shall be an integral part of this Act and shall serve as part of the governing
charter of the State University.

Section 27. Parity Clause. - All other powers, functions and privileges,
responsibilities and limitations granted to, or imposed upon state university and
their officials under existing laws shall be deemed granted to or imposed upon
the State University and its officials whenever appropriate.

Section 28. Implementing Rules and Regulations. - Within a period of
ninety (90) days from the effectivity of this Act, the Commission on Higher
Education shall promulgate rules and regulations as may be necessary for the
effective implementation of this Act.

Section 29, Separability Clause. - If, for any reason, any part or provision
of this Act is declared invalid or unconstitutional, the remaining parts or
provisions not affected thereby shall remain in full force and effect.

Section 30. Repealing Clause. - All laws. Decrees, orders, rules and
regulation inconsistent with the provisions of this Act are hereby repealed or
modified accordingly.


effect fifteen (15) days after

Section 31. Effectivity. - This Act shall take
per of general circulation.

{ts publication in the Oficial Gazette or in any newspa}

Approved,