SIXTEENTH CONGRESS )
REPUBLIC OF THE PHILIPPINES )
First Regular Session )

HOUSE OF REPRESENTATIVES.

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

House Bill No. 4184

EXPLANATORY NOTE

There is evidence that the differences in total productivity among countries -
differences that originate in different levels of technology - explain more than 60% of the
differences among these countries in per-worker income and growth rates. It has been found
that the more a country invests in research and development in S&T, the more the country’s
total productivity will increase. Undeniably, S&T fuels economic growth.

However, compared with developed countries, the Philippines is about 40-60 years
behind in science and technology. R&D in the country remained at relatively low levels due
to low number of scientists and engineers and very low expenditures from both the public
and private sectors. In 1992, the number of scientists and engineers per million population
was 155, way below the 380 recommended by the UN for Asian countries. This has resulted
to very low output of international scientific publication, and the Philippines’ percentage
share was only 0.03%, ranking only 51° throughout the world ~ lagging behind Singapore,
Thailand, Malaysia and indonesia, According to the Medium-Term Philippine Development
Plan (MTPDP) for 2004-2010, a weak knowledge base is a key challenge in S&T and in the
mobilization of knowledge for greater productivity and economic growth, as indicated by the
lack of critical mass of R&D human resources, underinvestment in R&D, and low number of
scientific publications and patents. The country lacks a critical mass of R&D workers as it
has only 6,803 scientists and engineers engaged in R&D in 2002, a significant decrease of
39.3 percent from the 1996 level. Since knowledge and technologies are mostly embodied in
human resources, this points to the urgency of the need to accelerate the development of
R&D human resource in the country. The country’s expenditures in R&D amounted to
PhP4.5B in 2002, only 0.11% of the GDP and far too less than the 0.22% in 1992 and the
standard 1% of GDP recommended by the UNESCO for developing countries.

In light of this current status of Philippine S&T, it has become very urgent that new
initiatives to advance S&T in the country should be pursued. Unlike other Asian countries
such as Malaysia, Saudi Arabia, Thailand, Taiwan and Singapore, the Philippines has yet to
come up with a national university that caters solely to S&T. There has to be a university that
will receive the many graduates of science high schools nationwide for them to continue with
higher studies in S&T. That university is the USTP. The USTP can provide opportunities for
equitable access to quality S&T education and development of local talents to become
world-class knowledge workers, and quality scientists and engineers that will man local
industries to become globally competitive. It can also provide opportunities for the quality
enhancement of R&D outputs to generate high-end technologies for local industries and
increase the number of local patents, and to encourage local industries to invest on joint
research with the local universities. Moreover, it can provide the opportunity for quality
upgrading of science and mathematics education in the country to encourage more students
to take up careers in science and engineering, and for contribution to the over-all
development efforts of government to bring economic prosperity and improve the quality of
life of the people


Since there are both national and local priorities for R&D, Metro Manila cannot cover
the priorities of the other regions, The lack of research facilities and amenities in the regions
has prevented many outstanding scientists and researchers to conduct research at a higher
level. While a well-balanced S&T development through R&D should be done on a national
scope, the location of the USTP is critical. At least 90% of government funds are
concentrated in SUCs located in Metro Manila, the rest is shared by Visayas and Mindanao.
Developing the research faclities in Mindanao, particularly in Region 10, can rationalize
access by regional institutions to address their own R&D priorities. Establishing the USTP in
Region 10 will address the urgent need to rationalize facilities and resources and
decentralize the higher education that is focused in Metro Manila. With almost 300 hectares
of land, the MUST in Alubijid, Misamis Oriental is a strategic location for USTP to provide
R&D facilities, accommodation and other amenities for scientists here and abroad. Also, itis
near the Laguindingan International Airport, making it accessible from all parts of the country
and the world.

In view of the foregoing considerations passage of this bill is eamestly sought,

RUFI }. RODRIGUEZ

ty S
cu ote JR.



SIXTEENTH CONGRESS )
REPUBLIC OF THE PHILIPPINES )
First Regular Session )

HOUSE OF REPRESENTATIVES

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

House BillNo.__ 4184

AN ACT
AMENDING REPUBLIC ACT NUMBER 9519 OTHERWISE KNOWN AS THE
ESTABLISHMENT OF THE MINDANAO UNIVERSITY OF SCIENCE AND TECHNOLOGY,
ELEVATING IT TO BECOME THE UNIVERSITY OF SCIENCE AND TECHNOLOGY OF
THE PHILIPPINES (USTP), ENHANCING THE COMPOSITION OF ITS GOVERNING
BOARD, EXPANDING THE PRIVATE SECTOR PARTICIPATION IN THE UNIVERSITY,
AND APPROPRIATING FUNDS THEREFOR”

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

ARTICLE |

TITLE AND POLICIES
Section 1. Title — This Act shall be known and cited as the "Modernization Act for the
University of Science and Technology of the Philippines”

Section 2. Policies. - tis the declared policy of the State to establish, maintain, and support
a complete, adequate and integrated system of higher education relevant to the needs of the
people and society, with primary focus on research and development for Science and
Technology.

ARTICLE Il
DEFINITION OF TERMS
Section 3. Definition of Terms Whenever used in this Act, the following words or phrases
shall mean or refer, thus:

a) “Non-chartered tertiary institutions” - refers to all public institutions of higher
learning in the Philippines primarily offering degree-granting programs, including
post-secondary degree-granting vocational and technical educational institutions
duly recognized by CHED but which are not covered by enabling laws.

“State Universities and Colleges” - refer to public HEIs in the Philippines created
and established by law which constitutes their charter and which have
independent and separate GBs;
“Governing Board (GB)" - refers to the highest policy-making body of the
University of Science and Technology of the Philippines who shall be referred to
as the Board of Regents.
“Duly recognized faculty association’ - is the association of the faculty members
or the instructional staff of the USTP or the federation thereof which has been
‘extended due recognition by its GB to be its legitimate and lawful faculty
association; as manifested by its constitution being ratified by 2/3 of its members;
“Duly recognized alumni association’ - is the association of the alumni preferably
from its tertiary level programs which has been extended due recognition by its
GB to be the legitimate and lawful organization of its alumni;
f) “Commission on Higher Education (CHED)’ - is the government agency created
by Republic Act No. 7722, otherwise known as the “Higher Education Act of

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1994”;

g) “Chairman of the Board” - refers to the CHED Chairman or to the CHED
Commissioner duly designated as Regular Chair and Presiding Officer of the
governing board, provided that if a CHED Commissioner has been designated
Regular Chair and Presiding Officer, ‘then “Chairman of the Board” refers to that,
CHED Commissioner;

h) “Student Regent - the duly elected student representative to the GB of the USTP,
provided, the student may be represented by a duly elected representative who
may sit as regular member of the Board in the interim period when the student
representative loses his status as a student such as but not limited to graduation,
transfer, expulsion and other similar causes.

i) “Special trust fund” - refers to the total amount collected by the university either
collection of fees and other charges from students or collection from income
generating activities of the university;

j) "Socialized scheme of tuition ‘and other instructional fees’ - refers to a scheme or
pattern where the rate of tuition and instructional fees are collected on the basis
of family income and/or socio-economic status of the student, such that the less-
‘economically privileged students shall pay lesser fees than students coming from
more economically advantaged families;

k) “Dual system” - refers to a teaching-leaming approach utilizing both the
experiences gained by students inside and outside of the classrooms, sometimes
called the in-school off-school approach;

1) "Open learning’ - is a philosophy of student-centered learning adopting a great
amount of flexibility in the learning process thus enabling them to lear at the
time, place and pace which satisfies their circumstances and requirements;

m) “Distance Learning’ - is a mode of education delivery at a distance with
organizational and administrative support,

n) “instruction” — shall refer to set of activities or practices which include but not
limited to the following: classroom teaching and leaming, supervision and
assessment of classroom teaching and learning, curriculum development, staff
professional development such as attendance to conferences, seminars,
workshops, educational tripsisits, and other related activities which enhance the
instructional function of the University;

©) “Community laboratory’ - is a community adopted by a chartered SUC as part of
its extension program where research and civic services are conducted by its
students and/or faculty;

p) “Main campus" - is the campus where the administrative services of the USTP is
located and/or where its President holds office permanently;

q) “Extension campus’ - is the campus that responds to special needs/demands

i.e. instruction, research or extension) with no Administrative Structure;

r) ‘ocal universities and/or colleges (LUCs) - are HEIs established by local
ordinances and solely funded from funds of local government units (LGUs) such
as provinces, cities, municipalities AND BARANGAYS; and,

s) “Auxiliary services” - all kinds of services done and/or rendered by USTP other
than academic, such as hospital, dental clinic ,cafeteria, janitorial, printing press,
bookstore, and the like.

t) Faculty — all the teaching staff of the University.

ARTICLE Ill

: COVERAGE
Section 4. Coverage. - This Act shall apply to and cover all colleges and units, academic or
non-academic of the Mindanao University of Science and Technology now renamed as the
University of Science and Technology of the Philippines including the satellite campuses in
Jasaan, Misamis Oriental, Alubijid Misamis Oriental, Panaon, Misamis Occidental and
Oroquieta City, Misamis Occidental. The main campus of the University shall be in Cagayan


de Oro City.

Section 5. General Mandate The University shall provide advanced education, higher
technological, professional and advanced instruction in mathematics, science, technology,
engineering, and advanced research and extension work in human resource development in
critical skills and competencies required for global competitiveness.

Section 6. Curricular Offerings.- The University shall offer undergraduate , graduate courses
and post-graduate courses in the fields of mathematics, science and technology, and
engineering.

The University, however, shall be allowed to maintain and operate high school
education with concentration in science and technology that will serve as feeders to science
and technology courses of the university. Provided, That the total number of high school
students in a given year shall not exceed 500,

Section 7. Administration - The University shall have the general powers of a corporation
set forth in Batas Pambansa Big. 68, as amended, otherwise known as "The Corporation
Code of the Philippines". The administration of the University and the exercise of its
corporate powers shall be vested exclusively in the Board of Regents and/or the President
of the University. The powers of the President shall be those that pertain to the
executive powers of a chief executive of similar organizations in so far as the
implementation of the policies set forth by the Goveming Board of Regents is
concemed

ARTICLE IV
GOVERNING BOARD (GB) OF THE UNIVERSITY OF SCIENCE AND TECHNOLOGY OF
THE PHILIPPINES; COMPOSITION; MANNER OF APPOINTMENT; TERM OF OFFICE;
MEETINGS AND QUORUM; COMPENSATION; AND
OTHER RELATED MATTERS
Section 8. Governing Board (GB). - The governing board of the University shalll be the Board
of Regents, 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 University, vice chairperson;
(© The Chairperson of the Committee on Education, Arts and Culture of the Senate,
member;
(d) The Chairperson of the Committee on Higher and Technical Education of the
House of Representatives, member;
() The Director of the National Economic and Development Authority (NEDA),
member;
() The Regional Director of the Department of Science and Technology
(DOST), member,
(@) The president of the federation of faculty associations of the University,
member;
(h) The president of the federation of student councils of the University, member,
(i) The president of the federation of the alumni associations of the
University, member, and
(J) FOUR PROMINENT CHIEF EXECUTIVE OFFICERS OF DULY
RECOGNIZED NATIONAL OR MULTINATIONAL CORPORATIONS WHO
HAVE DISTINGUISHED THEMSELVES IN THE FIELDS OF
SPECIALIZATION OF THE UNIVERSITY OR WHO HAVE ENTERED
PARTNERSHIP WITH THE UNIVERSITY THROUGH THE PUBLIC-PRIVATE
PARTNERSHIP, MEMBERS.


(K) TWO PROMINENT ACADEMICIANS IN THE PHILIPPINES WHO HAS
DISTINGUISHED HIMSELF IN THE FIELDS OF SPECIALIZATION OF THE
UNIVERSITY THROUGH HIS PUBLICATION AND TRACK RECORD IN
RESEARCH

THE PRESIDENT OF THE PHILIPPINES SHALL APPOINT THE FOUR (4)
PROMINENT CHIEF EXECUTIVE OFFICERS AND THE PROMINENT
ACADEMICIAN FROM AMONG A LIST PREPARED BY THE UNIVERSITY
PRESIDENT, IN CONSULTATION WITH THE CHAIRPERSON OF THE
GOVERNING BOARD AND OTHER MEMBERS OF THE BOARD, BASED ON THE
NORMAL STANDARDS AND QUALIFICATIONS FOR THE POSITION.

The terms of office of the President of the federation of faculty associations,
the President of the federation of student councils and the President of the
federations of alumni associations shall be coterminous with their respective terms of
office, as set forth in their respective constitutions and by laws.

THE FOUR (4) PROMINENT CHIEF EXECUTIVE OFFICERS SHALL
SERVE FOR A TERM OF FOUR (4) YEARS FROM THE DATE OF APPOINTMENT
WHILE THE PROMINENT ACADEMICIAN SHALL SERVE FOR A TERM OF TWO
(2) YEARS WITH POSSIBLE FUTURE RE-APPOINTMENTS.

Section 9. Rights and Responsibilities of GB members. - The GB members shall have all
the normal rights and responsibilities of a regular member of the Board of Directors/Board of
Trustees as set forth in Batas Pambansa Big, 68, as amended, otherwise known as “The
Corporation Code of the Philippines’.

The GB Chair, Vice-Chair and the members coming from the government have the
right to sit as Chair, Vice-Chair and as members thereof ipso facto upon their assumption
into office.

The right of the SSC/SG, Faculty, and Alumni Presidents/Chairs/Heads, and of the
Student Council President’ Chair/Representatives to become members of the GB shall
automatically rise from their election and qualification into their respective offices.

‘The private sector representatives must take their oaths of office as herein after
provided for before they could assume as GB members

Section 10. Representatives of GB Members Coming From the Government - If the
Chairmen of the Congressional Committees on Education and Culture/Higher & Technical
Education could not personally attend any regular meeting or special session of the GB of
USTP, they may designate in writing their representatives to the said meeting/session which
the latter should present to the GB Secretary before the start of the said meeting or session.
They shall be entitled to seat, voice and vote.

The other GB members coming from the government shall personally attend the GB
meetings/sessions.

Section 11. Selection, Appointment and Qualifications of the Two (2) GB Chief Executive

Officer Members Representing the Private National or Multinational Sector and the

Prominent Academician. -
44.1. SEARCH COMMITTEE - A SEARCH COMMITTEE (SC) SHALL BE
FORMED AND CONSTITUTED BY THE PRESIDENT OF USTP, IN
CONSULTATION WITH THE CHAIRMAN OF THE GOVERNING BOARD. THE
SEARCH COMMITTEE SHALL TAKE CHARGE OF RECRUITING, CONSULTING
WITH THE POTENTIAL CANDIDATES AND RECOMMENDING TO THE
PRESIDENT OF THE UNIVERSITY AND THE CHAIRPERSON OF THE GB AT
LEAST SIX (6) PROMINENT CHIEF EXECUTIVE OFFICERS OF CORPORATIONS
AND FOUR (4) PROMINENT ACADEMICIANS FOR POSSIBLE APPOINTMENT
BY THE PRESIDENT OF THE PHILIPPINES. THE SEARCH COMMITTEE MAY
CONDUCT A THOROUGH BACKGROUND CHECK OF THE CANDIDATES;


14.2 Composition of SC - The SC to be formed and constituted by the President of
USTP and to be approved by the GB chairman shall have five (5) members who shall
elect from among themselves their Chair

The private sector representatives shall come from the Philippines
PROVIDED however that should the Chief Executive Officer be of foreign nationality,
he shall be represented by a Filipino member of the Corporation.
14.3 Assumption. - The six (6) duly appointed private sector representatives shall
assume office after taking their oaths before the Chair of BOR or before his duly
designated representative.

Section 12. Terms of Office. - The terms of office of the President/Chair/Head of faculty and
alumni associations and the Student Regent in the GB of USTP shall be contemporaneous
with their terms of office in such capacities in accordance with their respective Constitution
and by-laws.

Provided, however, that in the event that the student loses his status as a student by
way of graduation from the university, dismissal, transfer or other such causes, then a duly
elected student representative shall sit as regular member of the GB.

Section 13. Meetings/Sessions. - The GB of USTP may hold either regular meetings or
special sessions.

13.1 Regular Meetings. - The GB must regularly convene once every quarter which
shall be held every first week of every quarter.

43.2 Frequency, Date and Venue of Regular Meetings. - The frequency over and
above the minimum stated in 13.1 hereof, and the date and venue of regular
meetings of the GB shall be determined by the GB itself provided that only four
(4) regular’ meetings and two (2) special meetings shall be granted the
authorized allowance,

43.3 Responsibility of the President. - The President of USTP shall be responsible for
making the necessary preparations to ensure the smooth holding of its GB's
regular meetings or special sessions,

43.4 Special Sessions. - Special sessions of the GB may be held only upon the call
of its Chair or Vice-Chair provided that the members of the Board have been
duly notified in writing of the said special session three (3) days before its
holding

GB members who believe that a special session should be conducted may petition in

writing to the Chair or Vice-Chair accordingly.

Section 14. Quorum. - A majority of all the members of the GB holding office at the time of
its regular meeting or special session shall constitute a quorum for the said regular meeting
or special session

No regular meetings or special sessions of the GB, however, shall be validly held or
could legally occur without the presence of either the Chairman of the Board or the President
of USTP who is the Vice-Chairman thereof.

Section 15. Presiding Officer. - The CHED Chairman or the CHED Commissioner as duly
designated Chair in his capacity as Chairman of the GB of USTP shall preside over the
regular meetings or special sessions thereof, except as hereinafter provided for.

In the absence of the CHED Chairman or the CHED Commissioner as Regular Chair
of BOR, the President of USTP, who is the Vice-Chairman of its GB shall preside.

Section 16. Representative of CHED Chairman - In case the CHED Chairman is unable to
attend any regular meeting or special session of the GB of USTP, he may designate in
writing one of the CHED Commissioners to represent him in the said regular meeting or
special session.


The CHED Commissioner so designated shall not preside over the regular meeting or
special session of the GB but shall have all the rights and responsibilities of a member
thereof.

Section 17. - Designation of Chair by CHED Chairman. - The CHED Chairman who is the
Chairman of the GB of all chartered SUCs may designate in writing a ‘CHED Commissioner
to act as the regular Chair of the GB of USTP and/or in any of its regular meetings or special
sessions in which case the CHED Commissioner so designated shall act as the presiding
officer.

Section 18. - No Regular Salary for the Chairman, Vice-Chairman and Members of GBs. -
The Chairman, Vice-Chairman and Members of the GB of the USTP shall not receive any
regular salary as such but they shall receive entitlements to actual allowances allowed by
law, and reimbursement of necessary expenses incurred during or in conjunction with their
attendance in the regular meetings or special sessions of the GB or in connection with their
performance of official business as members of the GB duly authorized by the GB through a
Resolution

ARTICLE V

POWERS AND DUTIES OF THE GOVERNING BOARD
Section 19. Powers and Duties of Governing Board (GB). - The GB of USTP shall have the
following powers and duties, in addition to its general powers of administration and the
exercise of all the powers granted to a Board of Directors of a corporation under Section 36
of Batas Pambansa Big. 68, otherwise known as the “Corporation Code of the Philippines,”
thus:

(a) To promulgate rules and regulations not contrary to laws may be necessary to
cary 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, in order to carry out
the purposes and functions of the University;

(c) 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, scientifical, 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 and personal properties of
all kinds and to administer and dispose of the same when necessary for the
benefit of the University and subject to the limitations, directions and instructions
of the donor, if any.

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

(e) To fix the tuition fees and other necessary school charges such as, but not limited
to, matriculation fees, graduations 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 University, shall 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
University.

‘Any provisions of existing laws, rules and regulations to the contrary
NOTWITHSTANDING, any income generated by the University from tuitions fees
and other charges, as well as from the operations of auxiliary services, land


grants and other income generating activities, shall be retained by the University.
The disbursement of such income shall be decided solely by the Governing
Board for the attainment of the goals and objectives 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 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 discretions, may be necessary
for the attainment of the objectives and goals of the University,

(f) 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 property, including
necessary supplies, materials and equipment,

(h) To appoint upon recommendation of the President of the University, Vice
Presidents, deans, directors, heads of campuses, faculty members, and other
officials and employees of the University;

(i) TO FIX AND ADJUST SALARIES OF FACULTY MEMBERS AND

ADMINISTRATIVE OFFICIALS AND EMPLOYEES, NOTWITHSTANDING 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 AY PROMULGATE, ANY PROVISIONS OF EXISTING

LAWS TO THE CONTRARY NOTWITHSTANDING AND TO REMOVE THEM

FOR CAUSE IN ACCORDANCE WITH THE REQUIREMENTS OF DUE

PROCESS OF LAW; TO DETERMINE AND APPROVE THE STAFFING

STANDARD OF THE UNIVERSITY WITHOUT THE NEED TO SECURE

APPROVAL FROM DBM WITH EMPHASIS OF DEVELOPING A CAREER

PATH FOR SCIENTISTS SIMILAR TO THE PROJECT/PROGRAM OF THE

DosT;

To approve the curricula, instructional programs and rules of discipline drawn by

the Administrative and Academic Councils as herein provided; TO DETERMINE

THE CURRICULAR OFFERINGS OF THE UNIVERSITY BASED ON THE

NEEDS FOR GLOBALIZATION AND  INTERNATIONALIZATION. THE

POLICIES AND STANDARDS ESTABLISHED BY THE COMMISSION ON

HIGHER EDUCATION MAY BE USED AS BASES FOR CURRICULUM

DESIGNS, PROVIDED, HOWEVER, THAT SUCH POLICIES AND

STANDARDS SHALL NOT BE A LIMITING NOR A DELIMITING FACTOR IN

THE DESIGN OF THE ACADEMIC PROGRAMS OF THE UNIVERSITY,

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

(I) To award honorary degrees upon persons in recognition of their outstanding
contribution in the fields 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 awarding of certificates of completion of non-
degree and nontraditional courses;

(m)To establish and absorb non-chartered tertiary institutions within the provinces of
Misamis Oriental and Misamis Occidental as branches and centers in
coordination with the CHED, and in consultations with Department of Budget and
management (DBM), and to offer therein programs or courses, to promote and
camy out equal access to educational opportunities as mandated by the
Constitution;


(n) To establish Research and Extension Centers of the University where such will
promote the development of the latter;

(0) To establish professorial chairs in the University 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 and/or other officials of the University as it may deem appropriate, So
as to expedite the administration of the affairs of the University;

(q) To authorize an external management audit of the University, to be financed by

the CHED, subjects to the rules and regulations of the Commission on Audit; and

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

To collaborate with other governing boards of the state colleges and universities

within the provinces of Misamis Oriental and Misamis Occidental or Region 10,

under the supervision of the CHED and in consultation with the DBM, and work

towards the restructuring of the University to become more efficient, relevant,
productive and competitive;

(s) To enter into joint ventures with business and industry for the profitable

development and management of the economic assets of the University, the

proceeds from which shall be used for the development and strengthening of the

University;

TO DEVELOP MECHANISM FOR THE EFFICIENT ADOPTION OF PUBLIC-

PRIVATE-PARTNERSHIP (PPP) IN THE AREAS OF RESEARCH,

INSTRUCTION, EXTENSION AND IN THE ACQUISITION OF FACILITIES AND

STRUCTURES OF THE UNIVERSITY:

* JOINT CURRICULUM VENTURES: SANDWICH PROGRAMS FOR
STUDENTS IN SPECIALIZED S&T, FACULTY DEVELOPMENT
CURRICULUM WITH THE INDUSTRIES, STAFF DEVELOPMENT OF
THE INDUSTRIES RUN BY THE UNIVERSITY AND OTHER SUCH
SIMILAR PROPOSALS;

» JOINT RESEARCH VENTURES: OUTSOURCING OF THE RESEARCH
COMPONENTS OF THE INDUSTRIES TO THE ACADEME’S
GRADUATE PROGRAMS; PRODUCT/SERVICE RESEARCH AND
SIMILAR RESEARCH ENDEAVORS;

* ECONOMIC ENTERPRISE VENTURES: PROPOSALS FOR UTILIZING
THE ECONOMIC ASSETS OF THE UNIVERSITY FOR OPTIMAL
RETURNS TO THE UNIVERSITY

(u) To develop consortia and other economic forms of linkages with local
government units, institutions and agencies, both public and private, local and
foreign, in the furtherance of the purpose and objectives of the University;

(v) To develop academic arrangements for institutional capability building with
appropriate institutions and agencies, public and private, local and foreign;

(w) To appoint experts/specialists as consultants, part-time or visiting or exchange
professors, scholars or researchers, as the case maybe, particularly focused in
strengthening the general mandate of the University;

(x) To set up the adoption of modern and innovative modes of transmitting
knowledge such as the use of information technology, the dual leaming system,
‘open leaming or distance education and community laboratory for the promotion
of greater access to education;

(y) To establish policy guidelines and procedures for participative decision-making
and transparency within the University;

(z) To privatize, where most advantageous to the University, the management of
nonacademic services such as health, food, building or grounds or property
maintenance and such other similar activities; and

(aa) To extend the term of the President of the University beyond the age of
retirement but not beyond the age of seventy (70), whose performance has been

(cs


unanimously rated by the Board as outstanding based on the guidelines,
qualifications and/or standards set by the Board, after unanimous
recommendations by the search committee.

ARTICLE VI

PROMULGATION AND IMPLEMENTATION OF POLICIES BY
GOVERNING BOARD (GB)
Section 20. Promulgation and Implementation of Policies by GB. - The GB of USTP may
promulgate and implement policies vis-a-vis higher education within USTP provided these
are consistent with the declared state policies on education and other pertinent provisions of
the Constitution of the Philippines on education, science and technology, arts, culture and
sports.

ARTICLE Vil
THE ADMINISTRATION OF USTP; THE PRESIDENT OF USTP HIS SELECTION AND
APPOINTMENT; MINIMUM QUALIFICATIONS; TERM OF OFFICE; RE-APPOINTMENT;
TENURE OF INCUMBENT; VACANCY IN THE OFFICE OF THE PRESIDENT; OTHER
OFFICERS
Section 21. Administration of USTP. - The administration of USTP is vested on its President
who must render fulltime service. The powers and duties of the President of the University,
in addition to those specifically provided under this law, shall be those usually pertaining to
the Office of the President of similar universities and those delegated by the Board.

Section 22. President of USTP; Selection; Appointment. - The President of USTP shall be
selected and appointed by its GB upon the recommendation of a Search Committee for the
Presidency (SCP) duly constituted by it

Section 23. SCP. - Within six (6) months before the expiration of the term of office of the
incumbent President of USTP, the GB of USTP must constitute a SCP.

The composition of the SCP shall be determined by the GB taking into consideration
representatives from’ the academic community, a private sector representative not in any
way connected or associated with the university, PASUC representative, and a CHED
representative,

Section 24. Powers of the SCP. - The SCP so constituted shall recruit and screen
applicants for the President and may devise its own procedures for the search. To this end,
the SCP shall cause the publication of an open invitation for the presidency in a paper of
national circulation.

Section 2. Nominees. - The SCP shall submit the names of at least 3 nominees to the GB
citing therein the strengths and weaknesses of the nominees for guidance and information of
the Board as well as the enumeration and description of the criteria and procedures
employed in their search

Section 26. Appointment Papers. - After the GB shall have selected and appointed the new
President, his appointment papers shall be signed by the CHED Chairman or the CHED
Commissioner duly designated as Regular Chair of the GB

Section 27. Minimum Qualifications. - The applicant for the Presidency of USTP must
possess the qualifications and/or standards set by its GB.

Section 28, Term of Office. - President of USTP appointed by its GB shall have a term of
four (4) years, the beginning and end of which must be clearly specified in the appointment
made by the GB.


Section 29. Re-appointment. - President of USTP appointed under this Act shall be eligible
for re-appointment for another term only

Section 30. Vacancy in the Office of the President. - In case of vacancy by reason of death,
transfer, resignation, removal for cause or incapacity of the incumbent President to perform
the functions of his office, the CHED Chairman or the CHED Commissioner as Chair of the
BOR, shall within fifteen (15) days from the occurrence of such vacancy, designate an
Officer-in-charge (OIC) in the Office of the President (OP), subject to confirmation by the
GB.

Section 32. Appointment of New President after Vacancy Occurs. - In case a new
President is appointed by the GB of USTP after a permanent vacancy occurs in the Office of
the President but during the term of office of the original appointee, the new President as his
successor shall hold office only for the unexpired portion of his term.

This service for the unexpired term shall not, however, count as one (1) full-term for
purposes of appointment/re-appointment

For purposes of smooth transition to a state university, the incumbent President of
the MINDANAO UNIVERSITY OF SCIENCE AND TECHNOLOGY shall serve a new first
term as the first President of the UNIVERSITY OF SCIENCE AND TECHNOLOGY OF THE
PHILIPPINES.

Section 33. Salary of the President. The salary of the President of the University shall be
determined by the Governing Board and shall be comparable to that being received by the
Presidents of similar educational institutions.

Section 34. Other Officers. The President recommends the appointment of Vice-Presidents
to the GB. The Vice-Presidents shall assist the President in the administration of the
University. Other officers of the University shall likewise be recommended by the President
to the GB for appointment.

Section 35. Heads of University Campuses. The University campuses shall be headed by
Campus Directors who shall be appointed by the GB after recommendation by the President
and a Search Committee established for this purpose. In order to effect a smooth transition
to university status, the incumbent Campus Heads shall continue serving as such for a
period of one (1) year from the approval of Act. The President shall then establish the SC to
recruit, screen and recommend the appointment of Campus Directors to the Governing
Board.

ARTICLE VIII
SECRETARY AND EX-OFFICIO TREASURER OF USTP;
AUDI

Section 34. Secretary - The GB of USTP shall respectively appoint their Board Secretary
who shall ikewise act as the University Secretary.

The Board Secretary 0 appointed shall, among others, keep alll the records and the
minutes of the proceedings of the GB and shall communicate’ to the Chairman, Vice-
Chairman and members of the GB notice of all regular meetings, special sessions and other
undertakings of the GB.

Section 35. Ex-officio Treasurer. - The Treasurer of the Philippines shall be the ex-officio
treasurer of USTP.

Section 36. Audit. - All accounts and expenses of USTP shall be audited by the
Commission on Audit (COA) or its duly authorized representative


ARTICLE IX
ADMINISTRATIVE COUNCIL (ADCO); ACADEMIC COUNCIL (AC)
Section 37. Administrative Council (ADCO). - There shall be created in USTP an
Administrative Council (ADCO) which shall be composed of its President as Chairman and
with its Vice-President(s), Deans, Directors, and other officials of equal rank as Members
The President of USTP as Chairman thereof shall constitute the ADCO.

Section 38. Duty of ADCO. - The ADCO of USTP so formed and constituted shall review
and recommend in accordance with its GB appropriate policies governing the administration,
management and development planning of USTP for the latter's action as it may deem fit.

Section 39. Academic Council (AC). - There shall be established and constituted in USTP
an Academic Council (AC) with its President as Chairman and all the members of its
instructional staff with the rank of not lower than Assistant Professor as members.

The President of USTP as Chairman thereof shall constitute the AC.

Section 40. Powers of the AC. - The AC so formed and constituted in USTP shall have the

following powers, in accordance with Sec. 4, Par. (0) & (v) of R.A. 8292 to wit:

a) Determine, review and recommend for the approval of its GB the course offerings of
USTP;

b) Devise/draft, review and recommend for the approval of its GB the rules of discipline of
and for the USTP; and

) Fix the requirements for the admission of students in the USTP as well as for their
graduation and the conferment of degrees and submit the same to its GB for review
and/or approval in accordance with Sec. 4, Par. (I) of RA. 8292

ARTICLE X
ACADEMIC FREEDOM AND INSTITUTIONAL AUTONOMY OF USTP
Section 41. Academic Freedom and institutional Autonomy. - USTP shall enjoy academic
freedom and institutional autonomy as provided for in B.P. 232, R.A. 8292 and Par. ‘2 sec. 5
of Art. XIV of the 1987 Constitution.

ARTICLE XI
APPOINTMENT OF FACULTY
Section 42. The Faculty. No political beliefs, gender preference, cultural or community
affiliation or ethnic origin and religious opinion or affiliation shall be @ matter of inquiry in the
appointment of faculty members in the University.

Section 43. Appointments. Appointments of faculty shall be subject to the guidelines and
qualifications and/or standards set by the GB. THE FACULTY OF THE UNIVERSITY
SHALL BE RECRUITED FROM AMONG THE MOST QUALIFIED SCIENTISTS,
ENGINEERS AND TECHNOLOGISTS DOMESTICALLY AND INTERNATIONALLY. THE
UNIVERSITY SHALL BE EXEMPT FROM THE PROVISIONS OF THE SALARY
STANDARDIZATION LAW BUT IT SHALL CONTINUE TO RECEIVE SUBSIDY FROM
THE NATIONAL GOVERNMENT, INCLUDING SALARY INCREASES GIVEN TO
GOVERNMENT EMPLOYEES IN ORDER TO ENSURE THE RECRUITMENT OF THE
BEST MINDS IN SCIENCE AND TECHNOLOGY ALL OVER THE WORLD TO DELIVER
‘THE MANDATED FUNCTIONS OF THE UNIVERSITY.

Section 44. No member of the faculty shall teach for or against any particular church or
religious sect


ARTICLE Xil
NO DISCRIMINATION IN ADMISSION OF STUDENTS
IN USTP; SCHOLARSHIP PROGRAMS
Section 45. No Discrimination in Admission of Students in USTP -No student shall be
discriminated against and denied admission in USTP by reason of sex, nationality, religion,
political affiliation, or physical disability

Section 46. Scholarship Program. The University shall provide a scholarship program and
other affirmative action programs to assist poor but deserving students who qualify for
admission to the University or its extension campuses.

ARTICLE Xill
DEVELOPMENT AND PROMOTION OF CULTURAL HERITAGE
Section 47. Enhancement of Theater Arts Program. To promote and preserve culture and
arts, especially local practices and rites and indigenous practices of Mindanao , and to
develop talents of students and University personnel alike, the existing University theater
arts program shall be enhanced and strengthened

ARTICLE XIV
TAX EXEMPTIONS
Section 48. Tax Exemptions. - The provisions of any general or special law to the contrary
notwithstanding:

(a) All revenues and assets of the University of Science and Technology of the
Philippines (USTP) used exclusively and solely for educational purposes or furtherance
thereof shall be exempt from alll taxes and duties;

(b) Gifts and donations of real and personal properties of all kinds shall be exempt
from donor's tax and the same shall be considered as allowable deductions from 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
one hundred fifty percent (150%) of the value of such donation. Valuation of assistance
other money shall be based on the acquisition cost of the property. Such valuation shall take
into consideration the depreciation value of the property in case said property has used;

(c) Importation of economic, technical, vocational, scientific, philosophical, historical
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 zero percent (0%) value-added tax for all
transactions subject to this tax; and

(e)All educational monetary awards shall be exempt from taxes

ARTICLE XV
APPROPRIATIONS

Section 49. Annual Appropriations. The amount necessary to carry out the provisions of this
Act shall be charged against the current year's appropriations of the University of Science
and Technology of the Philippines, except the sums needed to continue the operations of
the existing high school. Thereafter, such sums as may be necessary for the continued
operation and maintenance of the University of Science and Technology of the Philippines
shall be included in the annual General appropriations Act.

Section 50. University Modernization Fund, In Addition to the regular appropriations and
increase for the University under the annual General Appropriations Act (GAA), a University
modemization program fund, hereinafter referred to as the fund, shall be appropriated in the
amount of Four Hundred Fifty million pesos (450,000,000.00) per year for a period of five (5)
years, to commence in the year after the approval of this Act, which shall be taken from the
HEDF of the CHED and funding from DOST. The fund shall be used for the construction of
University structures and facilities in the 300 Ha new campus in Alubijid, Misamis Oriental.


ARTICLE XVI
FILING OF REPORT BY THE PRESIDENT OF USTP AND THE PREPARATION
OF THE DEVELOPMENT PLAN OF THE UNIVERSITY
Section 51. Filing of Report by the President of USTP. - On or before the fifteenth (15th) day
of the second month after the opening of regular classes each year, the President of USTP
shall file with the Office of the President of the Philippines, through the Office of the CHED
Chairman or the CHED Commissioner serving as Chair of the BOR, arid with the Senate
and House of Representatives of the Congress of the Philippines, through their respective
heads, a detailed report on the progress, conditions and needs of USTP.

Section 52. Development Plan Management Audit, Organizational/Administrative/ Academic
Structure. - Within the period of one hundred twenty (120) days after the approval of this Act,
the University shall accomplish the following:

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

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

(c) Accordingly set up its organizational, administrative as well as academic
structure, including the appointment of the key officials of the University,

ARTICLE XVIII

SUPPLETORY PROVISION
Section 53. Suppletory Parity Clause. — For purposes of this Act, other applicable laws
shall have suppletory application.

ARTICLE XIX

SEPARABILITY CLAUSE
Section 54, Separability Clause. - If for any reason, any part or provision of this law is
declared invalid or unconstitutional, the remaining parts or provisions not affected thereby
shall remain in full force and effect.

ARTICLE XX

REPEALING CLAUSE
Section 55. Repealing Clause. - All laws, presidential decrees, executive orders,
ules and regulations contrary to or inconsistent with the provisions of this Act are
hereby repealed or modified accordingly.

ARTICLE XXI
EFFECTIVITY CLAUSE
Section 56. Effectivity Clause. - This act shall take effect fifteen (15) days after its
publication in two (2) newspapers of general circulation in the Philippines.

Approved,