THIRTEENTH CONGRESS OF THE REPUBLI 
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13 'J 'L: I 
First Regular Session 
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OF THE PHILIPPINES 
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s. No. 
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Introduced by Senator Osmeiia 111 
EXPLANATORY NOTE 
The University of the Philippines was established in 1908 by an act of the 
First Philippine Legislature. Act No. 1870, otherwise known as the University 
Charter, specified the function of the University which is to provide advanced 
instruction in literature, philosophy, the sciences, and arts and to give 
professional and technical training. 
In 1973, the University was reorganized into a university system which is 
now composed of six constituent universities and one autonomous college, to wit 
UP Diliman, UP Los BaAos, UP Manila, UP Visayas, UP Mindanao, UP Open 
University and UP Baguio. The reorganization of the UP into a system allowed 
itself to be true to its principles of democratization and equity while upholding and 
continuing its tradition of quality and excellence in all fields of academic 
endeavor. Over several decades the University of the Philippines has indeed 
become a bastion of academic freedom and academic excellence. 
To further the gains it has made in democratic participation and to 
underscore the principles which enable it to function effectively as the national 
university, this bill aims to strengthen the role of an institutionally autonomous 
University of the Philippines in providing distinctive leadership in higher education 
and national educational development. 
It seeks to do so by: 1) creating a 
University System Council to serve as the inter-university academic body to set 
system-wide academic rules and standards and to reconcile differences among 
the autonomous university councils; 2) distributing functions of university 
governance to the Board of Regents, the University Presidents and other 
administrators, and the University Councils, 3) allowing the faculty, students, 
alumni and non-teaching representation in the board; and 4) establishing the 
relationship between the University and other bodies of the State, including 
Congress, constitutional commissions and other government agencies. 
Pursuant therefore to the Constitutional mandate for the State to 
constantly improve the standards of higher education in the Philippines, the 
passage of this bill is earnestly sought. 
P 
SEkGIO OSMENA 
Senator 
A 
111 


THIRTEENTH CONGRESS 
OF THE PHILIPPINE 
First Regular Session 
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Introduced by Senator OsmeAa 111 
AN ACT 
TO 
ENHANCE 
THE 
ACADEMIC 
FREEDOM 
AND 
INSTITUTIONAL ' 
AUTONOMY OF THE UNIVERSITY OF THE PHILIPPINES, AND FOR OTHER 
PURPOSES 
Be if enacted by the Senate and House of Representatives of the Republic of the 
Philippines in Congress assembled: 
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Philippines Charter of 2004." 
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Section I. Title. - This Act shall be known as the "University of the 
Section 2. Declaration of Po/icy. - The State shall promote, foster, 
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nurture and protect the right of all citizens to quality education. Toward this end, 
it is the policy of the State to strengthen the University of the Philippines which is 
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its national university. 
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Section 3. Purpose of the University. - The University of the Philippines 
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is a public and secular institution of higher learning established to provide 
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advanced education in philosophy, humanities and the arts, management, the 
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natural and social sciences, and engineering and technology, to give professional 
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and technical training, encourage and undertake research and contribute to the 
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dissemination and application of knowledge. 
As a community of scholars 
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dedicated for the search for truth and knowledge and as the national university of 
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the Philippines, the University is at the head of the system of higher education in 
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the country and is expected to set the standard for undergraduate and graduate 
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education, research and extension and public service of ,all college5 and. 
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universities in the Philippines. As such, it has the obligation to encourage and 
support all other educational institutions of the country. 
Section 4. The University System. - The University of the Philippines is 
a university system and shall be composed of UP Diliman, UP Los Baflos, UP 
Manila, UP Visayas, UP Mindanao, UP Open University, and such other 
autonomous universities and other units as may be established by law or by 
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resolution of the Board of Regents. 
Section 5. Academic Freedom. - The University has the right and the 
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responsibility to exercise academic freedom. 
Section 6. Academic Excellence. - The University has the responsibility 
to maintain and enhance its high academic standards in the performance of the 
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functions of instruction, research, and extension and public service. 
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Section 7. Social Responsibilify. - The University is committed to serve 
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the Filipino nation and humanity. While it carries out the obligation to pursue 
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universal principles, it shall relate its activities to the needs of the Filipino people 
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and their aspirations for social progress and transformation. 
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Section 8. Democratic Access. - No student shall be denied admission 
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to the University by reason of age, gender, nationality, religious belief, or political 
affiliation. The University shall take affirmative steps to enhance the access of 
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the disadvantaged to its programs and services. 
Section 9. The Board of Regents. - The government of the University 
shall be vested in the Board of Regents of the University of the Philippines, which 
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shall be composed of the following: 
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a. The Chair of the Commission on Higher Education as Chairperson; 
b. The President of the University of the Philippines as Vice-Chairperson; 
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c. The Chair of the Senate Committee on Education 
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d. The Chair of the House Committee on Higher Education; 
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e. The President of the U.P. Alumni Association, to serve as Alumni Regent 
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during his or her incumbency in that position; 
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f. One Faculty Regent chosen by the full-time faculty members of the 
University from their ranks, to serve for a term of two (2) years; 
g. One Student Regent chosen by the students from their ranks, to serve for 
a term of one (1) year; 
h. One Staff Regent representing the full-time research, extension and 
professional staff and administrative personnel and chosen by them from 
their ranks, to serve for a term of two (2) years; and 
Five other Regents appointed by the President of the Philippines who shall 
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each serve for a term of three (3) years: Provided, that Regents holding 
office as members of the Board of Regents at the time of promulgation of 
this Act shall continue to serve until the expiration of their appointments as 
provided for in the Executive Order No. 204-A, series of 1987. 
In case of vacancy in the Board of Regents of any appointed position, 
such position shall be filled by appointment by the President of the Philippines, 
and such appointee shall hold office for the unexpired term. In case of vacancy 
in the position of sectoral regents, the successor, who shall serve for the 
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unexpired term, shall be chosen in the same manner as provided above for the 
predecessor: Provided, that in the case of the sectoral Regent, membership in 
the Board ceases upon separation from the service of the University. 
Members of the Board shall serve without compensation other than actual 
and necessary expenses incurred in attendance of meetings of the Board or 
other official business authorized by the Board. 
Section I O .  Powers of the Board of Regenfs. - The administration of 
the University and the exercise of its corporate powers shall be vested in the 
Board of Regents and the President of the University insofar as authorized by the 
Board, and in the University Councils to the extent specified in this Act. The 
administration of each Autonomous University is vested in the Chancellor insofar 
as authorized by the Board and the University President. 
The Board shall exercise the following specific powers and duties: 
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a. 
b. 
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To adopt and define in general terms the thrusts of the University and 
broad policy guidelines to ensure their implementation; 
To preserve the integrity of the University of the Philippines system; 
To approve the institution, merger or abolition of academic programs upon 
the recommendation of the University Council of the autonomous 
university concerned or upon the recommendation of the System 
University council in case of programs offered by two or more autonomous 
universities; 
To approve the graduation of students, as recommended by their 
respective University Councils; 
To confer honorary degrees upon persons in recognition of learning, 
statesmanship, or eminence in literature, science, or arts, upon 
recommendation of a committee of the System University Council, or a 
committee of a Board of Regents: Provided, that such degrees shall not 
be conferred in consideration of any payment, gifts or other valuable 
consideration; 
To approve the rules on student discipline recommended by the University 
Councils; 
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To 
create, organize, reorganize, merge or abolish autonomous 
universities, colleges, institutes, and other academic and administrative 
units of the University; 
To establish chairs in the colleges and to provide for the maintenance or 
endowment of such chairs; 
To provide fellowships and scholarships and to award the same to faculty, 
staff and students giving special evidence of merit; 
To elect the University President following a process of democratic 
consultation with the University community; 
To appoint faculty members and other officials and employees, to draw up 
a position classification and compensation plan for its faculty and staff, 
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and to fix and adjust salaries and benefits of the faculty members and 
other employees; to determine their hours of service, and such other 
terms and conditions as it may deem proper; grant to them, in its 
discretion, leave of absence under such regulations as it may promulgate, 
any other provisions of law to the contrary notwithstanding; and to remove 
them for cause a provided by law after due investigation and proper 
hearing; 
I. To extend, with their consent, the tenure of faculty members of the 
University beyond the compulsory retirement age, any other provision of 
law to the contrary notwithstanding, on recommendation of the units upon 
endorsement of the President of the University, whenever their services 
are specially needed: Provided, further, that in case of extension of tenure 
of the University President beyond the compulsory retirement age, such 
extension shall be subject to the approval of the President of the 
Philippines; 
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m. To fix the tuition fees and other necessary school charges, as the Board 
may deem proper to impose. 
Such fees and charges, including 
government subsidies and other income generated by the University, 
constitute special trust funds and shall be deposited in any authorized 
government depository bank. 
Any and all interests that shall accrue 
therefrom shall form part of the same funds for the use 'of the University. 
Any provision of existing law to the contrary notwithstanding, all incomes 
generated by the University may, at the discretion of the Board, be 
disbursed for the professional growth and development, health, welfare, 
and other benefits of the faculty members and other personnel; for the 
acquisition, construction, maintenance, and repair or urgently needed 
instructional and auxiliary facilities, equipment, buildings and other 
infrastructure; and for expenses necessary for the attainment of its 
purposes under this Act. If the University, for reasons beyond its control, 
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shall not be 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 it deems necessary and urgent for the attainment of the objectives 
and goals of the University. 
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n. To receive and appropriate all sums as may be provided by law for the 
support of the University to the ends specified by law, and all other sums 
in the manner it may, in its discretion, determine to carry out the purposes 
and functions of the University; 
0. 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 the necessary supplies, materials and 
equipment: Provided, that purchases and other transaction entered into by 
the University shall be exempt from taxes and duties; 
p. To receive in trust legacies, gifts and donations of real and personal 
property of all kinds and to administer and dispose the same when 
necessary for the benefit of the University and subject to the limitations, 
discretion and instructions of the donor, if any; 
q. To exercise the general powers set out in the Corporation Code: 
r. To delegate any of its powers to the President or any other officials or 
officers as it may deem necessary; and 
s. To prescribe rules for its own government and the discipline of the faculty 
and other personnel, and to enact for the government of the University 
such general ordinances and regulations, not contrary to law, 'as. are 
consistent with the purposes of the University. 
Section 11. Quorum of the Board of Regenfs. - A simple majority of all 
members of the Board of Regents holding office at the time the meeting is called 
shall constitute a quorum. 
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Section 12. The System University Council. - There shall be a System 
University Council composed of the following: 
a. The University President as Chairperson; 
b. The Chancellors of the Autonomous Universities and the Faculty Regent 
as members; 
c. The Vice-president for Academic Affairs as Member-Secretary; 
d. Three (3) members fram each Autonomous University Council, each 
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serve for a term of two (2) years, chosen as follows; 
1) one elected from among the Assistant Professors; 
2) one elected from among and by the Associate Professors; and 
3) one elected from among and by the Professors and University 
Professors : 
Provided, that autonomous universities or their equivalents with less than 
three hundred (300) faculty members with the rank of Assistant Professor 
or higher shall be represented by only one (1) faculty member; and 
e. Three (3) members elected at large from among and by the regular faculty 
members with the rank of Assistant Professor or higher, to serve for a 
term of two (2) years. 
Section 13. Powers of the System university Council. - The System 
University Council shall be the system-wide academic body of the University and 
shall exercise the following powers: 
a. 
b. 
C. 
Prescribe the minimum system-wide requirements for admission to, and 
graduation and receiving a degree from, the University; 
Recommend to the Board of Regents system-wide rules on student 
discipline; 
Recommend for approval of the Board of Regents the institution, merger 
or aboJiiim of academic programs offered in more than one Autonomous 
University and endorsed to it by the University Councils concerned; 
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d. When necessary, undertake the review of academic courses, programs, 
standards, thrusts and policies, in consultation with the respective 
autonomous University Councils; 
e. Through a committee it has created for that purpose, recommend to the 
Board the conferment of honorary degrees; 
f. Prescribe minimum standards of ethics and conduct for faculty members; 
g. Adopt internal rules of procedure consistent with the provisions of this Act; 
and 
h. Perform other academic functions requiring system-wide coordination. 
Section 14. The University President. - The University President shall. 
be the head of the University Faculty and the Chief Executive Officer of the 
University. 
The President shall preside over the meetings of the System 
University Council and the autonomous University Council, if he or she is in 
attendance. The President shall exercise the powers specifically provided for in 
this Act, those determined by the Board of Regents, those which are usually 
pertaining to the office of the president of a university, and those which are 
related or necessary to its functions. 
The term and compensation of the 
President shall be determined by the Board of Regents. 
Section 15. 
The Secretary of the University and of the Board of 
Regents. - There shall be a Secretary of the University appointed by the Board 
of Regents, who shall also be the Secretary of the Board, who shall keep such 
records of the University as may be designated by the Board. 
Section 16. 
The University Council. - There such be in each 
Autonomous University a University Council consisting of the Chancellor as 
Chairperson, and of all the faculty members in the University holding the rank of 
Assistant Professor or higher. 
Section 17, Powers of the University Council. - The University Council 
shall be the highest academic body of each Autonomous University and shall 
exercise the following powers: 
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a. 
b. 
C. 
d. 
e. 
f. 
Fix the requirements for admission to any college or unit and for 
graduation and receiving a degree, subject to the minimum system-wide 
requirements; 
Prescribe the academic programs including their institution, abolition and 
merger, subject to the approval of the Board; 
Recommend to the Board the graduation of students; 
Exercise disciplinary power over students, through the Chancellors or their 
appropriate committees, subject to review by the President according to 
the limits prescribed by the system-wide rules on student discipline. 
Undertake the periodic review of academic courses, programs, standards, 
thrusts and policies; and 
Adopt internal rules of procedure consistent with the provisions of this Act. 
Section 18. 
The Chancellor of fhe Autonomous University. - The 
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Chancellor of the Autonomous University shall be appointed by the Board of 
Regents upon nomination of the University President, following a process of 
democratic consultation with the constituents of the that Autonomous University. 
The Chancellor shall report to the President of the University, and shall perform 
the duties and functions elsewhere stated in this Act, and all the usual, necessary 
and related functions of the office of the chancellor, subject to the policies and 
rules prescribed by the Board of Regents. The term and compensation of the 
Chancellor shall be determined by the Board of Regents. 
Section 19. 
The Faculfy. - The teaching staff of each college shall 
constitute its faculty, which shall be presided over by a dean appointed by the 
Board of Regents on nomination by the Autonomous University and upon the 
recommendation of the Chancellor of the Autonomous University, following a 
process of democratic consultation with the constituents of the college. In the 
appointment of faculty members, no religious test shall be applied, nor shall the 
religious or political opinions or affiliations of the faculty members of the 
University be made a matter of examination or inquiry. 
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Section 20. Appointment Requisite . - Faculty members, and research 
and extension and professional staff of the University shall be exempt from any 
civil examination or regulation as a requisite appointment. 
Section 21. Land Grants and Other Real Properties of the University. 
- The State shall provide subsidy, in the form of cash, through general 
appropriations and other financial benefits, and in kind, through land grants and 
donations and use of other real properties, to the University of the Philippines 
System as the national university. Income derived from the development of all 
land grants and real properties shall be used to further the ends of the University, 
as may be decided upon by the Board of Regents. Such income shall be exempt 
from taxation. 
Such parcels of land ceded by law, decree or presidential issuance to the 
University of the Philippines are hereby declared to be reserved for the purposes 
intended, as confirmed by the Board of Regents. The absolute ownership by the 
University over these land holdings are hereby affirmed. Where issuances of 
proper certificates of title are yet pending for these land holdings, the apprdpriate’ 
government office shall expedite the issuance thereof within six (6) months from 
the date of the effectivity of this Act. 
The Board of Regents shall plan, design, approve and/or cause the 
implementation of financial mechanisms, such as joint ventures, long-term leases 
and outright sale, to give the University the most advantageous position in 
generating revenues and other resources from the land grants and other real 
property entrusted by the Filipino people to their national university: Provided, 
that such mechanisms and arrangements shall sustain and protect the 
environment, be exclusive of the academic core zone of the University’s 
campuses, and be for such periods of time as may be determined in accordance 
with law. 
Section 22. Appropriations. - The amount needed to carry out the 
implementation of this Act shall be charged against the current year’s 
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appropriation and other internal funds of the University. Thereafter, such amount 
representing 
the 
national 
government’s 
assistance for 
the 
continued 
implementation of this Act shall be included in the Annual General Appropriations 
Act. 
Section 23. Tax Exemptions. - The provisions of any general or special 
law to the contrary notwithstanding: 
a. All property, resources, receipts, expenditures, profits and income of the 
University used actually, directly and exclusively for educational purposes 
shall be exempt from all national and local taxes, fees, charges and 
assessments nor in force or hereinafter established. The same exemption 
shall likewise apply to all contracts, deeds, documents and transactions 
related to the conduct of the business of the University: Provided, 
however, that said exemptions shall apply only to such taxes, fees, 
charges and assessments for which the University itself would be 
otherwise liable, and shall not apply to those taxes, fees, charges or 
assessments payable by persons or entities doing business with the 
University. 
b. Revenues derived from intellectual property, research, teaching and 
extension facilities, and ancillary academic activities shall be exempt from 
taxation. 
c. The University shall be extended duty and tax free entry of all imported 
articles used actually and directly for educational purposes, subject to the 
rules and regulations promulgated by the Department of Finance: 
Provided, that articles entered tax and duty free may not be sold, 
transferred or otherwise disposed of in any manner whatsoever to any 
person without the prior approval of the Department of Finance and 
Commission on Audit. Any transferee of said article shall be deemed the 
importer thereof, and the same shall be assessed at tis entered value 
without depreciation. 
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d. Donation to the University shall be exempt from all taxes and shall be 
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considered deductible items from the income tax of the donor. 
Section 24. Auditing of Accounts. - All accounts and expenses of the 
University shall be audited by the Commission on Audit, and all disbursements 
shall be made in accordance with rules and regulations prescribed by the latter. 
Section 25. Institutional Autonomy as the National University. - TO 
provide greater flexibiJity to the University, it shall be treated in a manner 
consistent with its institutional requirements as the national university by the 
service-wide agencies in exercise of their respective jurisdiction. 
The University, taking into account national goals and priorities, shall 
exclusively determine its teaching, research and extension thrusts, plans, 
policies, priorities, programs and standards and, on the basis of such 
determination, the University shall recommend its annual budget to the President 
and Congress. 
Section 26. Rule of Construction. - No statutory or other issuances 
shall diminish the powers, rights, privileges, and benefits accorded to the 
University under this Act or enjoyed at present -by the University under other 
issuances not otherwise modified or repealed under this Act, unless subsequent 
legislation expressly provides for their repeal, amendment, or modification. Any 
case of doubt in the interpretation of any of the provisions of this Charter shall be 
resolved in favor of the fisca! autonomy and academic freedom of the University 
of the Philippines. 
Section 27. Separability Clause. - I f any of the provisions of this Act is 
declared unconstitutional, the rest of the provisions not affected thereby shall 
remain in full force and effect. 
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Section 28. Repealing Clause. - All laws, decrees, orders, rules and 
regulations or other issuances or parts thereof inconsistent with the provisions of 
this Act are hereby repealed or modified accordingly. 
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Section 29. Effectivity. - This Act shall take effect fifteen (15) days after 
its publication in at least two (2) newspapers of general circulation. 
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