FOURTEENTH CONGRESS OF THE 
) 
REPUBLIC OF THE PHILIPPINES ) 
First Regular Session 
) 
SENATE 
Introduced by Senator JUAN MIGUEL F. ZUBlRl 
EXPLANATORY NOTE 
The Naval Institute of Technology is the only State College in the province of 
Biliran. Its main campus is strategically located in the Municipality of Naval, while a 
second campus is based in the Municipality of Biliran. More than 6,000 students are 
enrolled in both campuses, many of whom are from poor and underserved localities in 
the province, including nearby municipalities of Leyte and other provinces in the Eastern 
Visayas Region. 
Given the high cost of attending universities and colleges in urban centers, 
including tuition and miscellaneous fees, plus room and board expenses, it is necessary 
to make quality education more accessible in the countryside. This means providing 
facilities to enhance learning, and offering additional courses that will equip graduates 
with the skills and competence that are in demand globally. 
By upgrading the status of the NIT, it can offer a wider range of courses within its 
flagship programs, including maritime education, agriculture, forestry, engineering, 
information and communications technology, tourism and other allied fields. And with 
additional resources and improved facilities, it can accommodate more students from 
different municipalities in Biliran, Leyte and Samar Islands, who will not have to travel 
outside of the region to receive the best education. 
Converting the NIT into a State University is a positive step towards realizing the 
national government's program of providing affordable but quality education in the 
provinces that will benefit the youth, as well as others who may want to finish their 
education without moving to urban centers. And with an improved education center that 
will produce a competent work force, employment opportunities, in case new investors 
should come into the province or region, will increase. 
Another argument for the conversion is the need to decongest urban centers by 
lessening migration. With quality education -through the NSU - more accessible, there 
will be no need for students to leave the province or region just to earn a diploma. 
Establishing a state university is a vital ingredient towards bringing development and 
progress to the countryside. 


Converting the Naval Institute of Technology to a State University will also mean 
improving, revitalizing and ensuring the sustainability of the institution through greater 
fiscal and institutional autonomy, flexibility in curricular offerings and implementation of 
meaningful and well-pronounced research and extension programs. It will likewise 
strengthen income-generating projects (IGPs) and enable the NIT to acquire modern 
facilities and undertake physical development within the campus. 
Finally, approving this proposed measure will give meaning to the constitutional 
mandate of making education accessible to all as stipulated in Section 1, Article XIV of 
the Constitution. 
Hence, approval of this bill is earnestly requested. 


FOURTEENTH CONGRESS OF THE 
) 
REPUBLIC OF THE PHILIPPINES ) 
First Regular Session 
1 
1 
2 
3 
4 
5 
6 
7 
8 
9 
10 
I I  
12 
13 
14 
15 
16 
17 
18 
19 
20 
21 
S. No. 
46 
Introduced by Senator JUAN MIGUEL F. ZUBlRl 
AN ACT 
CONVERTING THE NAVAL INSTITUTE OF TECHNOLOGY IN THE MUNICIPALITY 
OF NAVAL, PROVINCE OF BlLlRAN INTO A STATE UNIVERSITY TO BE KNOWN 
AS THE NAVAL STATE UNIVERSITY, INTEGRATING THEREWITH THE BlLlRAN 
NATIONAL AGRICULTURAL COLLEGE IN THE MUNICIPALITY OF BILIRAN, AND 
APPROPRIATING FUNDS THEREFOR 
Be it enacted by the Senate and the House of Representatives of the Philippines in 
Congress assembled: 
SECTION 1. Conversion/lnfegrafion. - The Naval Institute of Technology in the 
Municipality of Naval, Province of Biliran, is hereby converted into a state university to 
be known as the Naval State University (NSU), hereinafter referred to as the University, 
integrating therewith the the Biliran National Agricultural College in the Municipality of 
Biliran. The University's main campus of shall be located in Naval, Biliran. 
SEC. 2. General Mandate. - The University shall primarily provide advanced 
education, higher technical and professional instruction and training in the fields of 
agriculture, fishery, forestry, maritime education, information and 
communications 
technology, engineering, tourism and other fields of study. It shall also undertake 
research and extension services, and provide progressive leadership in its areas of 
specialization. 
SEC. 3. Curricular Offerings. - The University shall offer undergraduate and 
graduate courses in the fields of agriculture, fishery, forestry, maritime education, 
information and communications technology, engineering, tourism and other related 
courses within its areas of specialization and according to its capabilities, as the Board 
of Regents may deem necessary to carry out its objectives, particularly to meet the 
needs of the Province of Biliran and Region VIII. 
Jurisdiction and supervision of the existing high school shall be transferred to the 
Department of Education: Provided, That the high school shall be allowed to remain and 
operate within the University's campus until its student population is able to complete 
their secondary education: Provided, further, That the University may thereafter operate 


1 
2 
3 
4 
5 
6 
7 
8 
9 
10 
I 1  
12 
13 
14 
15 
16 
17 
18 
19 
20 
21 
22 
23 
24 
25 
26 
27 
28 
29 
30 
31 
32 
33 
34 
35 
36 
37 
a reasonably-sized laboratory high school once it has established a College of 
Education. 
SEC. 4. Administration. - The University shall have the general powers of a 
corporation set forth in Batas Pambansa Blg. 68, as amended, otherwise known as the 
"Corporation Code of the Philippines." The administration of the University and the 
exercise of its corporate powers shall be vested exclusively in the Board of Regents and 
the President of the University in so far as authorized by the Board. 
SEC. 5. The Governing Board. - The governing body of the University shall 
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; 
(c) 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; 
(e) The regional director of the National Economic and Development Authority 
(NEDA), member; 
(f) 
The 
regional director of the 
Department of Science and Technology 
(DOST), member; 
(9) 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 alumni associations of the University, 
member; and 
(j) 
Two (2) prominent citizens from the private sector who have distinguished 
themselves in their profession or fields of specialization, as members. 
The Board of Regents shall appoint the two (2) prominent citizens from among a 
list of at least five (5) persons qualified in the Province of Biliran, whose nominations 
were submitted to the Board after publication for at least two (2) consecutive weeks, as 
recommended by the search committee constituted by the University 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 set by the Board. 
The term of office of the president of the federation of faculty associations, the 
president of the federation of student councils and the president of the federation of 
2 


I 
2 
3 
4 
5 
6 
7 
8 
9 
10 
I 1  
12 
I3 
14 
15 
16 
17 
18 
19 
20 
21 
22 
23 
24 
25 
26 
27 
28 
29 
30 
31 
32 
33 
34 
35 
alumni associations shall be 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. 
No private sector representative shall be appointed to the Board if he/she is 
related by consanguinity ot affinity up to the third civil degree to any incumbent local or 
national official. 
SEC. 6. 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. 7. Powers and Duties of the Board of Regents. - 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: 
(a) To promulgate rules and regulations not contrary to law to carry out the 
purposes and functions of the University; 
(b) To receive and appropriate all sums as may be provided for the support of 
the University in the manner it may determine in its discretion, 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 andlor 
publications are for economic, technical, vocational, scientific, philosophical, historical or 
cultural purposes, in accordance with the provisions of the Tariff and Customs Code, as 
amended; 
(d) To receive in trust legacies, gifts and donations of real and personal 
properties of all kinds and to administer and, when necessary, to dispose the same 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), as amended: Provided, That such donations shall not be 
36 
disposed of, transferred or sold: 
3 


1 
2 
3 
4 
5 
6 
7 
8 
9 
10 
11 
12 
13 
14 
15 
16 
17 
18 
19 
20 
21 
22 
23 
24 
25 
26 
21 
28 
29 
30 
31 
32 
33 
34 
35 
36 
31 
38 
(e) 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. 
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. 
Such fees and 
Any provision of existing laws, rules and regulations to the contrary 
notwithstanding, any income generated by the University from tuition fees and other 
charges, as well as from the operation of auxiliary services and land grants, shall be 
retained by the University, and may be disbursed by the Board for instruction, research, 
extension or other programslprojects of the University: Provided, That all fiduciary fees 
shall be disbursed for the specific purposes for which they 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 discretion, may be necessary and urgent for the 
attainment of the objectives and goals of the University; 
(f) 
To adopt and implement a socialized scheme of tuition and 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 and 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, subject tu 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; 
(j) 
To approve the curricula, instructional programs and rules of discipline 
drawn by the Administrative and Academic Councils herein provided; 
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 education, public service, arts, science and technology, 
(k) 
(I) 
4 


I 
2 
3 
4 
5 
6 
7 
8 
9 
10 
I I  
12 
13 
14 
15 
16 
17 
18 
I9 
20 
21 
22 
23 
24 
25 
26 
21 
28 
29 
30 
31 
32 
33 
34 
35 
36 
agriculture or in any field of specialization within the academic competency of the 
University; and to authorize the awarding of certificates of completion of non-degree and 
non-traditional courses; 
(m) To establish and absorb non-chartered tertiary institutions within the 
Province of Biliran as branches and 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 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 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; 
(4) To authorize an external management audit of the University, to be financed 
by the CHED, subject to Commission on Audit (COA) rules and regulations; and to 
institute reforms, including academic and structural changes, on the basis of the audit 
results and recommendations; 
(r) 
To collaborate with other governing boards of the state colleges and 
universities within the Province of Biliran or Region VIII, 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; 
(t) 
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; 
(u) To develop academic arrangements for institution capability building with 
appropriate institutions and agencies, public and private, local and foreign, and to 
appoint expertskpeciaiists as consultants, part time or visiting or exchange professors, 
scholars or researchers, as the case may be; 
(v) To set up the adoption of modern and innovative modes of transmitting 
knowledge such as the use of information technology, the dual system, open learning or 
distance education and community laboratory for the promotion of greater access to 
37 
education; 
5 


1 
2 
3 
4 
5 
6 
7 
8 
9 
I O  
I 1  
12 
13 
14 
15 
16 
17 
18 
19 
20 
21 
22 
23 
24 
25 
26 
27 
28 
29 
30 
31 
32 
33 
34 
35 
36 
(w) To establish policy guidelines and procedures for participative decision- 
(x) To privatize, where most advantageous to the University, management of 
nonacademic services such as health, food, building or grounds or property 
maintenance and such other similar activities; and 
(y) To extend the term of the president of the University beyond the age of 
retirement but not beyond than the age of seventy (70), whose performance has been 
unanimously rated by the governing board as outstanding based on the guidelines, 
qualifications and/or standards set by the Board, after unanimous recommendation by 
the search committee. 
SEC. 8. 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. 
making and transparency within the University; 
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 Board or the 
president of the University 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 University as vice chairperson shall be the presiding officer: Provided, 
further, That this proviso notwithstanding, the chairperson of the CHED is hereby 
authorized to designate a CHED commissioner as the regular chair of the Board of 
Regents, in which case said CIiED commissioner shall act as the presiding 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. 9. The University President - The University shall be headed by a 
president, who shall render full time service. HelShe 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: Provided, That no person shall 
be appointed as University president if helshe is related by consanguinity or affinity up 
37 
to the third civil degree to any incumbent local or national official, 
6 


I 
2 
3 
4 
5 
6 
7 
8 
9 
10 
11 
12 
13 
14 
15 
I6 
17 
18 
19 
20 
21 
22 
23 
24 
25 
26 
27 
28 
29 
30 
31 
32 
33 
34 
35 
36 
37 
38 
The president shall have a term of four (4) years and shall be eligible for re- 
appointment for another term; Provided, That this shall not adversely affect the term of 
incumbents: Provided, furfber, That in order to effect a smooth transition to a state 
university, the incumbent president of the Naval Institute of Technobgy shall have one 
(1) year from the date of conversion to oversee the transition process, after which 
heishe shall be considered as nominee for University president to be appointed by the 
Board thereafter. 
Within six (6) months before the expiration of the term of office of the incumbent 
president of the Naval State University, the Board shall constitute a 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 hidher office, the Board shall have the authority to designate an officer-in- 
charge of the University pending the appointment of a new president. 
In case of vacancy in the office of the president as mentioned in the immediately 
preceding paragraph, hidher successor or the officer-in-charge shall hold office for the 
unexpired term only. 
The powers and duties of the president of the University, in addition to those 
specifically provided in this Act, shall be those usually pertaining to the office of the 
president of similar universities, and those delegated by the Board. 
The salary of the president of the University 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 University shall be assisted by a vice president for Academic 
Affairs, a vice president for Administration and Development, a vice president for 
research, extension, external affairs and production services, andlor other vice 
presidents when so warranted, 
who shall be appointed by the Board upon the 
recommendation of the president. 
SEC. I O .  The Administrative Council. - There shall be an Administrative 
Council consisting of the president of the University as chairperson, vice presidents, 
deans, directors and other officials of equal rank as members, whose duty is to review 
and recommend to the Board of Regents the policies governing the administration, 
management and development planning of the University. 
SEC. 11. The Academic Council. - There shall be an Academic Council with 
the president of the University as chairperson and all members of the academic staff 
with the rank of not lower than assistant professor as members. 
The Academic Council shall have the power to review and recommend the 
curricular offerings and rules of discipline of the University, subject to the approval of the 


1 
2 
3 
4 
5 
6 
I 
8 
9 
10 
1 1  
12 
13 
14 
15 
16 
17 
18 
19 
20 
21 
22 
23 
24 
25 
26 
27 
28 
29 
30 
31 
32 
33 
34 
35 
36 
37 
Board of Regents. It shall fix the requirements for the admission of students, as well as 
for graduation and conferment of degrees, subject to review and/or approval by the 
Board of Regents through the president of the University. It shall have the disciplinary 
power over students of the University and shall formulate academic policies and rules 
and regulations on discipline, subject to the approval of the Board of Regents. 
SEC. 12. The Secretary of the University. - The Board shall appoint a 
secretary, who shall serve as such for both the Board and the University 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's meetings. 
SEC. 13. The Treasurer of the University. - The Treasurer of the Philippines 
shall be the ex officio treasurer of the University. 
SEC. 14. Faculty. - No political affiliation or beliefs, gender preference, cultural 
or community affiliation or ethnic origin, religious opinion or affiliation shall be a matter 
of inquiry in the appointment of faculty members of the University: Provided, That said 
appointment shall be subject to the guidelines, qualifications and/or standards set by the 
Board: Provided, further, That no member of the faculty shall teach for or against any 
particular church or religious sect. 
SEC. 15. Scholarship frogram/Admission. - 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. 
No student shall be denied admission to the University by reason of sex, religion, 
cultural or community affiliation or ethnic origin. 
SEC. 16. Academic Freedom and htitutional Autonomy. - The University 
shall enjoy academic freedom and institutional autonomy, pursuant to paragraph 2, 
Section 5 of Article XIV of the Constitution of the Republic of the Philippines. 
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 University, such apparatus, equipment or supplies as may be needed by the 
University, 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 University, 
and the time so employed shall be counted as part of their regular services. 
SEC, 18. Assets, Liabilities and Personnel. - All assets, real and personal, 
personnel and records of the Naval Institute of Technology and the Biliran National 
Agricultural College, as well as liabilities or obligations are hereby transferred to the 
8 


1 
2 
3 
4 
5 
6 
7 
8 
9 
10 
I I  
12 
13 
14 
15 
16 
17 
18 
19 
20 
21 
22 
23 
24 
25 
26 
27 
28 
29 
30 
31 
32 
33 
34 
35 
36 
37 
38 
University. 
employed under existing laws shall be respected. 
The positions, rights and security of tenure of the personnel therein 
All parcels of land belonging to the government and occupied by the Naval 
Institute of Technology and the Biliran National Agricultural College are hereby declared 
to be property of the Naval State University, and shall be titled under that name: 
Provided, That should the University cease to exist or be abolished or should such 
parcels of land aforementioned be no longer needed by the University, the same shall 
revert to the LGU concerned. 
SEC. 19. Appropriations. - The amount necessary for the initial implementation 
of this Act shall be charged against the current year's appropriations of the Naval 
Institute of Technology, and the Biliran National Agricultural College except the sums 
needed to continue the operations of the existing high schoolls. Thereafter, such sums 
as may be necessary for the continued operation and maintenance of the Biliran State 
University shall be included in the annual General Appropriations Act. 
SEC. 20. 
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 @)-year development plan, including its corresponding 
program budget to the CHED, for corresponding recommendation to DBM; 
(b) 
Undergo a management audit in cooperation with the CHED; and 
(c) 
Accordingly set up its organizational, administrative as well as academic 
SEC. 21. Filing of Report. - On or before the fifteenth (15'h) day of the 
second 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 both Houses of Congress a detailed report on the progress, conditions and 
needs of the University. 
structure, including the appointment of the University key officials. 
SEC. 22. 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 
University. 
SEC. 23. 
Parity Clause. - All other powers, functions and privileges, 
responsibilities and limitations to State Universities andlor their officials under existing 
laws shall be deemed granted to or imposed upon the University andlor its officials 
whenever appropriate. 
SEC. 24. Implementing Rules and Regulations. - The Board of Regents, in 
consultation with the CHED, shall formulate the guidelines to fully implement the 
provisions of this Act. 
9 


Sec. 25. 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 
shall remain in full force and effect. 
SEC. 26. 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. 27. Effectivity. - This Act shall take effect fifteen (15) days after its 
publication in two (2) newspapers of general circulation. 
Approved, 
10