REPUBLIC OF THE PHILIPPINES
HOUSE OF REPRESENTATIVES
QUEZON CITY, PHILIPPINES

FIFTEENTH CONGRESS
: 3914
House Bill No. 691 at

Introduced by Hon. Jose Benjamin A. Benaldo

EXPLANATORY NOTE

Section 17, Article II of the 1987 Philippine Constitution declares that “[t]he State
shall give priority to education, science and technology, arts, culture, and sports to foster
patriotism and nationalism, accelerate social progress, and promote total human liberation
and development.” It further provides in Section 1, Article XIV thereof that “[t]he State shall
protect and promote the right of all citizens to quality education at all levels, and shall take
appropriate steps to make such education accessible to all.”

The sad reality is that despite the will to pursue tertiary education, many Filipinos
cannot even set foot in College, or those who do are forced to dropout because of the high
cost of college education. This greatly reduces the youth’s hope for a better future and further
increases the State’s number of unemployed citizens.

To address this harsh reality, local governments should do their part in earmarking
funds for subsidizing costs of higher education in the regions. In Cagayan de Oro City, there
are 16 tertiary schools offering courses in various disciplines, but only Mindanao University
of Science and Technology (formerly Mindanao Polytechnic State College) is a state
university. Thus, there is a serious absence of quality and accessible tertiary education for the
youth of Cagayan de Oro City.

Tt is in view of the foregoing that this bill is submitted for the establishment of the of
Cagayan de Oro State College that will offer undergraduate and graduate studies in the fields
of science, education, agriculture, and industrial fields and other degrees as may be necessary
in order to meet the needs of Cagayan de Oro City. The Cagayan de Oro State College shall
offer a scholarship program and other affirmative action programs to assist poor but
deserving students who qualify for admission to the College. Approving this bill is an
important step towards empowering the Cagayan de Oro City youth through the provision of
quality and accessible higher education.

Therefore, it is earnestly requested that this bill be expeditiously approved.

We

(JO A. BENALDO
1" Bjettict, Cagayan de Oro City


REPUBLIC OF THE PHILIPPINES
HOUSE OF REPRESENTATIVES
QUEZON CITY, PHILIPPINES

FIFTEENTH CONGRESS
Second Regular Session

House Bill No. 691 es

Introduced by Hon. Jose Benjamin A. Benaldo

ESTABLISHING A STATE COLLEGE IN THE CITY OF CAGAYAN DE ORO
CITY TO BE KNOW AS THE CAGAYAN DE ORO STATE COLLEGE AND
APPROPRIATING FUNDS THEREFOR

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

SECTION |. Establishment, ~ There is hereby established a state college in the City
of Cagayan de Oro to be known as the Cagayan de Oro State College, hereinafter referred to
as the College.

SEC. 2. General Mandate. ~ The College shall primarily provide advanced
education, higher technological, professional instruction and training in the fields of
agriculture and environmental studies, education, forestry, and industrial technology, law,
medicine and other health-related programs, information technology, arts and sciences and
other related courses. It shall also undertake research and extension services and programs in
food production, nutrition, health and sports development, and provide progressive leadership

in its areas of specialization.

SEC. 3. Academic Freedom and Institutional Autonomy. ~ The College shall

enjoy academic freedom and institutional autonomy, pursuant to paragraph 2, section 5 of
Article XIV of the 1987 Constitution of the Republic of the Philippines.
SEC.4. Curricular Offerings. ~ The college shall offer undergraduate and

graduate studies in the fields of agriculture and environmental studies, education, forestry,


and industrial technology, law, medicine and other health-related programs, information
technology, arts and sciences and other related programs, as the Board of Trustees may deem
necessary, particularly to meet the needs of the City of Cagayan de Oro and neighboring
provinces.

The College may operate a reasonably-sized laboratory school, if it has a College of
Education.

SEC.5. Administration. ~ The College 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 College and the exercise of
its corporate powers shall be vested exclusively in the Board of Trustees and the President of
the College.

SEC. 6. The Governing Board, ~ The governing board of the College shall be
the Board of Trustees, hereinafter referred to as the Board, which shall be composed of the

following:

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

(b) The President of the College, Vice Chairperson;

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

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

(©) The Regional Director of the National Economic and Development Authority
(NEDA), member;

() The Regional Director of the Department of Agriculture (DA), member;


(g) _ The Regional Director of the Department of Science and Technology (DOST),
member;

(h) The President of the faculty association of the College, member;

i) The President of the student council of the College, member;

(The President of the alumni association of the College, member; and

(k) Two (2) prominent citizens from the private sector who have distinguished
themselves in their profession or fields of specialization of the College, members.

‘The Board shall appoint the two (2) prominent citizens from among a list of at least
five (5) qualified persons in the City of Cagayan de Oro, as recommended by the search
committee constituted by the College President, in consultation with the Chairperson of the
CHED and 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 faculty association, the President of the
student council and the President of the alumni association shall he coterminous 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
appointment.

SEC. 7. Promulgation and Implementation of Policies. — The Board shall
promulgate and implement policies in accordance with the declared State policies on
education and other pertinent provisions of the Philippine Constitution on education,
agriculture, science and technology, as well as the policies, standards and thrusts of the
CHED under Republic Act No. 7722, otherwise known as the "Higher Education Act of
1994".

SEC. 8. Powers and Duties of the Board of Trustees. — The 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
existing laws:

(@) To promulgate rules and regulations not contrary to law as may he necessary
to carry out the purposes and functions of the College;

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

(©) To import duty-free economic, technical and cultural books and/or
publications, upon certification by the CHED that such imported books and/or publications
are for economic, technical, vocational, scientific, philosophical, historical or cultural
Purposes, in accordance with the provisions of the Tariff and Customs Code of the
Philippines, as amended;

(d) To receive in trust legacies, gifts and donations of real properties of all kinds
and to administer and dispose of the same when necessary for the benefit of the College and,
subject to the limitations, directions and instructions of the donor, if any.

Such donations shall he 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) of,
1997, as amended: Provided, That such donations shall not be disposed of, transferred or
sold;

(©) To fix the tuition fees and other necessary school charges such as, but not
limited to, matriculation fees, graduation fees and laboratory fees, as the Board 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 College, shall constitute special trust funds and shall be deposited in any authorized


goverment depository bank, and all interests that shall accrue therefrom shall form part of
the same funds for the use of the College.

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

If, for reasons beyond its control, the College shall not he able to pursue any project
for which funds have been appropriated and allocated under its approved program of
expenditures, the Board may authorize the use of said funds for any reasonable purpose
which, in its discretion, may be necessary and urgent for the attainment of the objectives and
goals of the College;

(8 To adopt and implement a socialized scheme of tuition and other school fees
for greater access to poor but deserving students;

(g) To authorize the construction or repair of its buildings, machinery, equipment
and other facilities, and the purchase and acquisition of real and personal properties,
including necessary supplies, materials and equipment;

(h) To appoint, upon recommendation of the President of the College, Vice
Presidents, deans, directors, heads of departments, faculty members and other officials and
employees of the College:

() To 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; to grant them, at its discretion, leaves


of absence under such regulations as it may promulgate, any provision of existing law to the
contrary notwithstanding: and to remove them for cause in accordance with the requirements
of due process of law;

(@) To approve the curricula, instructional programs and rules of discipline drawn
by the Administrative and Academic Councils as herein provided;

(k) To set policies on admission and graduation of students;

() To award honorary degrees upon persons in recognition of their outstanding
contribution in the fields of agriculture, public service, arts, science and technology,
education or in any field of specialization within the academic competence of the College;
and to authorize the awarding of certificates of completion of nondegree and nontraditional
courses;

(m) To establish and absorb nonchartered tertiary institutions within the City of
Cagayan de Oro as branches and extension centers in coordination with the CHED, and in
consultation with the Department of Budget and Management (DBM), and to offer therein

programs or courses to promote and carry out equal and greater access to educational

opportunities as mandated by the Constituti

(n) To establish research and extension centers of the College where such will
promote the development of the latter;

(©) To establish professorial chairs in the College and to provide fellowships for
qualified faculty members and scholarships to deserving students;

(p) To delegate any of its powers and duties provided for hereinabove to the
President or Officer-in-Charge and/or other officials of the College as it may deem
appropriate, so as to expedite the administration of the affairs of the College;

(@ To authorize an external management audit of the College, to be financed by

the CHED, subject to the rules and regulations of the Commission on Audit (COA); and to


institute reforms, including academic and structural changes on the basis of the audit results
and recommendations;

(2) To collaborate with other governing boards of state universities and colleges
within the City of Cagayan de Oro or Region X, under the supervision of the CHED and in
consultation with the DBM, and work towards the restructuring of the College to become
more efficient, relevant, productive and competitive;

(8) To enter into joint ventures with business and industry for the profitable
development and management of the economic assets of the College, the proceeds from
which shall be used for the development and strengthening of the same;

(© To develop consortia and other forms of linkages with local government units
(LGUs), institutions and agencies, both public and private, local and foreign, in furtherance
of the purposes and objectives of the College;

(u) To develop academic arrangements for institutional capability building with
appropriate institutions and agencies, public and private, local and foreign, and to appoint
experts/specialists as consultants, part-time or visiting or exchange professors, scholars or
researchers, as the case may be;

(¥) To set up the adoption of modern and innovative modes of transmitting
knowledge such as the use of information technology, the dual learning system, open learning
or distance education and community laboratory for the promotion of greater access to higher
education and graduate studies, as the case may be;

(w) To establish policy gui

lines and procedures for participative decision-
making and transparency within the College:

(x) To privatize, where most advantageous to the College, the management of
nonacademic services such as health, food, building, grounds or property maintenance and

such other similar activities; and


(y) To extend the term of the President of the College beyond the age of
retirement but not beyond the age of seventy (70), whose performance has been unanimously
rated by the Board as outstanding, based on the guidelines, qualifications and/or standards set
by the Board, after unanimous recommendation by the search committee.

SEC.9. Meetings of the Board. ~ The Board 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 two (2) special meetings whenever necessary.

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

In the absence of the Chairperson of the CHED, a Commissioner of the CHED, duly
designated by him/her, shall represent him/her in the meeting with all the rights and
responsibilities of a regular member: Provided, however, That during this meeting, the

President of the College as Vice Chairperson shall be the Pre

ing 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 Presi

ing Officer.

In case the Chairpersons of the Congressional Committees on Education shall not be
able to attend the Board meeting, they may duly designate their respective representatives to
attend the said meeting, who shall have the same rights and responsibilities as a regular
member of the Board.

The members of the Board shall not receive any salary 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.


SEC. 10. The College President. — The College shall be headed by a President,
who shall render full-time service. He/She shall be appointed by the Board, subject to the
guidelines, qualifications and/or standards set by the Board, upon recommendation of a duly
constituted search committee. He/She shall have a term of four (4) years and shall be eligible
for reappointment for another term.

Pending the appointment of the first President of the College, the Chairperson of the
CHED shall appoint an Officer-in-Charge of the College. Within six (6) months before the
expiration of the term of office of the incumbent President of the College, the Board shall
constitute the Search Committee for the Presidency (SCP).

In case of vacancy in the Office of the President by reason of death, compulsory
retirement, resignation, removal for cause or incapacity of the President to perform the
functions of his/her office, the Board shall designate an Officer-in-Charge of the College
within six (6) months from the date of vacancy, 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/her successor or the Officer-in-Charge of the College shall serve
only the unexpired portion of the term.

‘The powers and duties of the President of the College, in addition to those specifically
provided in this Act, shall be those usually pertaining to the Office of the President of similar
colleges, and those delegated by the Board.

The salary of the President of the College 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.

The President of the College shall be assisted by a Vice President for Academic

Affairs, who shall be appointed by the Board upon the recommendation of the President.


SEC.11. The Administrative Council. — There shall be an Administrative
Council, consisting of the President of the College as Chairperson, Vice Presidents, deans,
directors, and other officials of equal rank as members, whose duty is to review and
recommend to the Board the policies governing the administration, management and
development planning of the College.

SEC. 12, The Academic Council. - There shall be an Academic Council to be
composed of the President of the College, who shall act as Chairperson, and all academic
staff with the rank of at least an assistant professor, as members.

‘The Academic Council shall have the power to review and recommend the curricular
offerings and rules of discipline of the College, subject to the approval of the Board. It shall
fix the requirements for the admission of students, as well as for their graduation and
conferment of degrees, subject to review and/or approval by the Board through the President
of the College. It shall have the disciplinary power over students of the College and shall
formulate academic policies and rules and regulations on discipline, subject to the approval of
the Board.

SEC.13. The Secretary of the College. — The Board shall appoint a secretary,
who shall serve as such for both the Board and the College and shall keep all records and
proceedings of the Board. He/She shall serve upon each member of the Board the
appropriate notice of the Board meetings.

SEC. 14. The Treasurer of the College. ~ The Treasurer of the Philippines shall
be the ex officio treasurer of the College.

SEC. 15. The Faculty. — No political beliefs, gender preference, cultural or
community affiliation or ethnic origin, and religious opinion or affiliation shall be a matter of
inquiry in the appointment of faculty members of the College: Provided, That said

appointment shall be subject to the guidelines, qualifications and/or standards set by the

10


Board: Provided, further, That no member of the faculty shall teach for or against my
particular church or religious sect.

SEC. 16. Scholarship Program/Admission. — The College shall provide a
scholarship program and other affirmative action programs to assist poor but deserving
students who qualify for admission to the College.

No student shall be denied admission to the College by reason of sex, religion,
cultural or community affiliation or ethnic origin.

SEC.17. Authority to Loan or Transfer Apparatus/Equipment/ Supplies and
Detail of Personnel, ~ The heads of the bureaus and offices of the national government are
hereby authorized to loan or transfer, upon the request of the President of the College, such
apparatus, equipment or supplies as may be needed by the College, and to detail employees
for duty therein when, in the judgment of the head of bureau or office, such apparatus,
equipment, supplies or services of such employees can be spared without serious detriment to
the public service.

The employees so detailed shall perform such duties as required of them by the
President of the College, and the time so employed shall be counted as part of their regular
services.

SEC. 18. Campus Site/Assets. - The College shall have an area of not less than
five (5) hectares, at least three (3) hectares of which are contiguous to the main campus, for

its exclusive use as campus site for its academic and instructional programs, research and

development acti

ities and experimental and laboratory facilities.

The Board shall forthwith recommend a suitable site within the City of Cagayan de
Oro for this purpose. The parcel of land to be occupied by the Cagayan de Oro State College
is hereby declared to be property of the College, and shall be titled under that name:

Provided, That should the College cease to exist or be abolished, or should said parcel of land


aforementioned be no longer needed by the College, the same shall revert to the LGU
concerned.

SEC. 19. Tax Exemption on Importation and Donations. — The importation of
economic, technical, vocational, scientific, philosophical, historical or cultural purposes made
by the College, upon verification by the CHED, shall be exempt from customs duties in
accordance with the provisions of the Tariff and Customs Code of the Philippines.

Donations in any form to the College shall be exempt from the donor’s tax and the
same shall be considered as allowable deduction 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 of 1997.

SEC. 20. Appropriations. ~ The amount necessary to carry out the provisions of
this Act shall be included in the annual General Appropriations Act of the year following its
enactment into law and thereafter.

SEC.21. Development Plan, Management Audit, Organizational/
Administrative/Academic Structure. ~ Within the period of one hundred twenty (120) days
after the approval of this Act, the College shall accomplish the following:

(@) Submit a five (5)-year development plan, including its corresponding program
budget to the CHED, for corresponding recommendation to the DBM;

(6) Undergo a management audit in cooperation with the CHED; and

(©) Accordingly set up its organizational, administrative as well as academic
structure, including the appointment of the key officials of the College.

SEC. 22. Filing of Report. - On or before the fifteenth (15") day of the second
2") month after the opening of the regular classes each year, the Board shall file with the

Office of the President of the Philippines, through the Chairperson of the CHED and with

12


both Houses of Congress, a detailed report on the progress, conditions and needs of the
College.

SEC. 23. Suppletory Application. — The provisions of Republic Act No. 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 College.

SEC.24. Parity Clause. — All other powers, functions and privileges,
responsibilities and limitations to state colleges and/or their officials under existing laws shall
be deemed granted to or imposed upon the College and/or its officials, whenever appropriate.

SEC.25. Implementing Rules and Regulations. ~ The Board, in consultation
with the CHED, shall formulate the guidelines to fully implement the provisions of this Act.

SEC. 26. 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.

SEC. 27. Repealing Clause. ~ All laws, presidential decrees, executive orders,
rules and regulations contrary to or inconsistent with the provisions of this Act are hereby
repealed or modified accordingly.

SEC. 28. _Effectivity Clause. ~ This Act shall take effect fifteen (15) days after
its publication in two (2) newspapers of general circulation.

Approved,

Ve