FOURTEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
First Regular Session 
S E N A T E  
Senate Bill No. 
INTRODUCED BY SEN. MANNY VILLAR 
EXPLANATORY NOTE 
The State is mandated by the Constitution to constantly improve the 
standards of high education in the Philippines to ensure that students get the 
best possible education from both public and private higher education 
institutions. 
To achieve this end, this Bill aims to strengthen the University of the 
Philippines, which is the national university. 
As a community of scholars dedicated to the search for truth and 
knowledge, the Bill proposes that the University of the Philippines shall perform 
its unique and distinctive leadership in higher educational development through 
its combined functions as follows: 
Set standards and initiate innovations in teaching, research and faculty 
development in the various academic disciplines; maintain excellence in 
such disciplines and professions; 
for scholars, scientists, writers, artists and professionals: 
Serve as a graduate university providing advanced studies and specialization 
Serve as a research university in the various fields of its expertise and 
specialization by conducting basic and applied research; 
Lead as a public service university by providing various forms of community, 
public and volunteer service, and scholarly and technical assistance to the 
government, private sector and civil society; 
Provide opportunities for training and learning in progressive leadership and 
citizenship 
Serve as a regional and global university in cooperation with international 
scientific unions and with universities and professional associations in the 
Asia-Pacific region and around the world. 
In view of the foregoing, the approval of this bill is earnestly requested. 


FOURTEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
First Regular Session 
INTRODUCED BY SEN. MANNY VILLAR 
AN ACT 
NATIONAL STATE UNIVERSITY 
. TO STRENGTHEN THE UNIVERSITY OF THE PHILIPPINES AS THE 
Be it enacted by the Senate and House of Representatives of the 
Philippines in Congress assembled: 
SECTION 1. Title. - This Act shall be known as "The University of the 
Philippines Charter of 2007". 
SEC. 2. Declaration of Policy. -The State shall promote, foster, nurture and 
protect the right of all citizens to accessible quality education. Towards this end, 
it is the policy of the State to strengthen the University of the Philippines as the 
national state university. 
SEC. 3. Purpose of the Universify. - As the national state university, a 
public and secular institution of higher learning and a community of scholars 
dedicated to the search for truth, knowledge and trainingldevelopment of future 
leaders, the University of the Philippines shall perform its unique and distinctive 
leadership in higher education and national education development. 
The 
University shall: 
(a) Lead in setting academic standards and initiating innovations in 
teaching, research and faculty development in philosophy, the arts and 
humanities, the social sciences, the professions and engineering, natural 
sciences, mathematics, and technology; and maintain centers of excellence in 
such disciplines and professions; 
(b) Serve as a graduate university by providing advanced studies and 
specialization for scholars, scientists, writers, artists and professionals, especially 
those who serve on the faculties of State and private colleges and universities; 
(c) Serve as a research university in the various fields of its expertise and 
specialization by conducting basic and applied research and development, 
2 


promoting research in the various colleges and universities, and contributing to 
the dissemination and application of knowledge; 
(d) Lead as a public service university by providing forms of community, 
public and volunteer service, and scholarly and technical assistance to the 
government, the private sector and civil society while maintaining its standards of 
excellence; 
(e) Protect and promote the professional and economic rights and welfare of 
(f) Provide opportunities for training and learning in progressive leadership, 
responsible citizenship, and the development of democratic values, institutions 
and practice, and the enhancement of nationalism and national identity; 
(9) Provide democratic governance in the university based on collegiality, 
representation, accountability, transparency and active participation of its 
constituents; and 
(h) Serve as a regional and global university in cooperation with 
international and scientific unions with networks of universities and scholarly and 
professional associations in the Asia-Pacific region and around the world. 
SEC. 4. Definition of Terms. - As used in this Act, the following terms shall 
its academic and nonacademic personnel; 
mean: 
(a) “University” refers to the University of the Philippines. 
(b) “University of the Philippines System (UPS)” refers to the University of 
the Philippines as composed by its existing constituent universities, as follows: 
University of the Philippines Diliman; University of the Philippines Manila; 
University of the Philippines Los Barios; University of the Philippines Visayas; 
University of the Philippines Mindanao; University of the Philippines Baguio; 
University of the Philippines Open University; and those that may be created in 
the future. 
(c) “University of the Philippines System Assembly (UPSA)” refers to an 
assembly of individuals representing the students, academic personnel (faculty 
and research, extension and professional staff), administrative personnel, and 
alumni of the seven (7) constituent universities (UP Diliman, UP Manila, UP Los 
BaAos, UP Visayas, UP Mindanao, UP Baguio, UP Open University) and other 
constituent universities that may be created in the future. Members of the 
assembly shall be elected pursuant to Section 17 hereof. 
(d) “University Assembly (UA)” refers to an assembly of individuals 
representing the students, academic personnel (faculty and research, extension 
and professional staff), administrative personnel, and alumni elected by the 
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constituents of a particular constituent university of the University of the 
Philippines. 
(e) “Research, Extension and Professional Staff (REPS)” refers to University 
personnel who perform academic nonteaching duties. These include University 
researchers, extension personnel, law reform group, law education group, 
science education, guidance service group, library service group, development 
management group, and museum research group. 
(f) “Academic freedom” refers to the right of every constituent of the 
University to express one’s ideas, to write, research and publish, and act in 
accordance with one’s viewpoint inside and outside the classroom in the pursuit 
of academic ideals and in service to the Filipino people. 
(9) “Professorial chair awards” refers to awards given to faculty members for 
meritorious performance in teaching, research, creative writing; one of the 
highest forms of recognition for achievement in the academe; holders of these 
awards deliver a lecture or publish a paper in a scholarly journal within the period 
of award and may be named after the donor or after a person that the donor may 
wish to honor. 
(h) “Established religious beliefs” refers to mandatory spiritual and 
theological practices, convictions and faith of the University population to make 
them God-fearing, productive, patriotic citizens conscious of their values and 
cultural heritage. 
SEC. 5. The University System. - The University of the Philippines is a 
university system and shall be composed of constituent universities established 
solely by its Board upon the recommendation of the president of the University. 
SEC. 6. Academic Freedom. - The University has the right and the 
responsibility to exercise academic freedom. 
SEC. 7. Academic Excellence. - The University has the responsibility to 
maintain and enhance its high academic standards in the performance of the 
functions of instruction, research and extension, and public service. 
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SEC. 8. Social Responsibi/ity. - The University is committed to serve the 
Filipino nation and humanity. While it carries out the obligation to pursue 
universal principles, it must relate its activities to the needs of the Filipino people 
and their aspirations for social progress and transformation. The University may 
provide venues for student volunteerism. 
SEC. 9. Democratic Access. - No student shall be denied admission 
to 
the University by reason of age, gender, nationality, religious belief, ethnicity, 
economic status, political opinion or political affiliation or for being differently- 
abled physically. The University shall take affirmative steps to enhance the 
access of disadvantaged students to its programs and services while maintaining 
its standards of excellence: Provided, That valedictorians of public high schools 
duly accredited by the Department of Education shall likewise be afforded 
affirmative action in their admission. 
SEC. 10. 
The Board of Regents. - The governance of the University is 
vested in the Board of Regents, hereinafter referred to as the Board, of the UPS 
which shall be composed of: 
(a) The chairperson of the Commission on Higher Education as 
chairperson; 
(b) The president of the University as vice chairperson: 
(c) The chairperson of the Senate Committee on Education, Arts and 
Culture; 
(d)The chairperson of the House Committee on Higher and Technical 
Education; 
(e) The president of the UP Alumni Association, to serve as alumni regent 
during hislher incumbency in that position; 
(9 One faculty regent representing all teaching personnel, chosen in 
accordance with the rules and qualifications set by the constituent university 
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councils, composed of full-time tenured faculty members of the University to 
serve for a term of two (2) years; 
(g) One REPS regent representing full-time permanent non-teaching REPS 
chosen in accordance with the rules and qualifications set by their duly 
recognized organizations; 
(h) One student regent to serve for a term of one (1) year chosen in 
accordance with the rules and qualifications set by the general assembly of 
recognized university student councils; 
(i) One staff regent representing full-time administrative personnel chosen 
in accordance with the rules and qualifications set by their duly recognized 
organizations, to serve for a term of two (2) years; and 
(j)Three other regents representing the private sector, at least one of whom 
should be an alumnus of the University, who have distinguished themselves in 
their professions or fields of specialization chosen from a list of five (5) persons 
for every vacancy as recommended by a search committee constituted by the 
president of the University based on standards and guidelines approved by the 
Board, appointed by the Board and shall each serve for a term of two (2) years: 
Provided, That the regents holding office as members of the Board at the time of 
the effectivity of this Act shall continue to serve until the expiration of their 
appointments as provided for in Executive Order No. 204-A issued by the 
President of the Philippines on July 15, 1987. 
In case of vacancy in the representation of the private sector in the Board, 
such vacancy shall be filled by appointment by the Board as provided in the 
preceding paragraph, 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 unexpired term, shall be chosen in the same manner as 
provided for the predecessor: Provided, That in the case of a sectoral regent, 
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membership in the Board ceases upon suspension, separation or recall from the 
University. 
Members of the Board shall serve without compensation other than the 
actual and necessary expenses incurred in attendance of meetings of the Board 
or other official business authorized by the Board. 
SEC. 11. 
Powers of the Board of Regents. - The administration of the 
University and the exercise of its corporate powers are vested in the Board. 
The Board shall exercise the following specific powers and duties: 
(a) To define in general terms the thrusts of the University and adopt broad 
policy guidelines to ensure their implementation; 
(b) To preserve the integrity of the UPS; 
(c) To approve the creation, institution, merger or abolition of academic 
units and programs and adopt the necessary measures to enable students to 
exercise their established religious beliefs consistent with the accepted norms 
and mores of society. Students shall be given options to fulfill their academic 
responsibilities such as, but not limited to, make-up classes/examinations on 
missed school days/examinations which coincided with the exercise of their 
established religious beliefs, all upon the recommendation of the university 
council of the constituent university concerned through the president of the 
University; 
(d) To approve the graduation of students and grant of honors, as 
recommended by their respective university councils through the president of the 
University; 
(e) To confer honorary degrees upon persons in recognition of learning, 
statesmanship, or eminence in literature, science or art, upon the 
recommendation of a committee created by the president of the University: 
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Provided, That such degrees shall not be conferred in consideration of any 
payment, gift or other valuable consideration; 
(9 To approve the rules on student discipline recommended by the 
university councils through the president of the University, with the Board 
retaining the power to review and pass final judgment on student disciplinary 
cases: 
(9) To create, organize, reorganize, merge or abolish constituent 
universities, colleges, institutes, and other academic and administrative units of 
the University; 
(h) To establish professorial chair awards in the colleges and to provide for 
the maintenance or endowment of such chairs; 
(i) To provide fellowships, scholarships and grants, and to award the same 
to faculty, staff and students giving special evidence of merit; 
(j) To elect the president of the University for a single term of six (6) years 
without reelection following a process of democratic consultation with the 
University community based on the guidelines, qualifications and/or standards 
set by the Board. In the event of a vacancy for whatever reason/s, the Board 
shall elect a new president who shall serve the unexpired term of the 
predecessor within six (6) months from the occurrence of the vacancy; 
(k) To appoint faculty members and other officials and employees to draw 
up a position classification and compensation plan for its faculty and staff; 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; to grant to them, at its discretion, leave of absence, under such 
regulations as it may promulgate, and other provisions of law to the contrary 
notwithstanding; and to remove them for cause as provided by law after due 
investigation and proper hearing; 
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(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, however, That no extension of tenure shall be made beyond the age of 
seventy (70); 
(m) To fix the tuition fees and other necessary school charges, after due 
consultations and consent of the various student councils of constituent 
universities as provided for in Section 22 of this Act. Such fees and charges, 
including government support and other incomes generated by the University, 
shall 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 law to the contrary notwithstanding, all incomes generated 
by the University or by its own subsidiaries 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 of 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, 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 of the University: Provided, That funds collected from students for 
a specific purpose shall not be reprogrammed to other expenditures; 
(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 other sums in the 
9 


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; 
(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 instructions of the donor, if 
any; 
(4) The provisions of law to the contrary notwithstanding, to authorize its 
faculty and staff to travel abroad in order to study, deliver paper, attend 
conferences and disseminate research: Provided, That the fellowship, 
scholarship or grant is authorized by the Board; 
(r) To exercise the general powers set out in the Corporation Code; 
(s) To delegate any of its powers to the president of the University or any 
other officials or officers as it may deem necessary; 
(t) To prescribe the rules for its own governance and the discipline of the 
faculty and other personnel, and to enact for the governance of the University 
such general policies, rules and regulations, not contrary to law, as are 
consistent with the purposes of the University; and(u) To exercise such other 
powers as may be necessary and proper to carry out the objectives of this Act. 
SEC. 12. 
Quorum of the Board of Regents. - A simple majority of the 
actual members of the Board holding office at the time the meeting is called shall 
constitute a quorum, 
SEC. 13. 
The University President. - The University president is the 
chief academic officer and head of the University faculty and the chief executive 
officer of the University elected by the Board. Upon the election of the president 
10 


by the Board, he/she shall immediately be issued appointment papers by the 
presiding chair of the Board which elected the president. The president shall 
preside over the meetings of the constituent university councils, if hekhe is in 
attendance. The president shall exercise the powers specifically provided for in 
this Act, those determined by the Board, those which usually pertain to the office 
of the president of the University, and those which are related or necessary to its 
functions. The compensation of the president shall be determined by the Board. 
SEC. 14. 
The Secretary of the University and of the Board of Regents. 
- There shall be a secretary of the University appointed by the Board who shall 
also be the secretary of the Board and who shall keep such records of the 
University as may be designated by the Board. 
SEC. 15. 
The Universify Council. - There shall be in each constituent 
university a university council consisting of the chancellor as chairperson and all 
of the faculty members in the University holding the rank of assistant professor 
and higher and a representative of nontenured teaching personnel. 
SEC. 16. 
Powers of the University Council, - The university council 
shall be the highest academic body of each constituent university and shall 
exercise the following powers: 
(a) Fix the requirement for admission to any college or unit, or any 
academic program or course offering and for graduation and conferment of 
adegree, and the grant of honors subject to the minimum system-wide 
requirements; 
(b) Prescribe the academic programs including their institution, revision, 
abolition and merger, subject to the approval of the Board; 
(c) Recommend to the Board the graduation of students and the grant of 
honors: 
11 


(d) Exercise disciplinary power over the students and fraternities, through 
the chancellors or their appropriate committees, subject to review by the 
president of the University according to the limits prescribed by 
system-wide 
rules on student discipline; 
(e) Undertake a periodic review of academic courses, programs, standards, 
thrusts and policies; 
(9 Adopt the necessary measures to enable students to exercise their 
established religious beliefs consistent with the accepted norms and mores of 
society. Students shall be given options to fulfill their academic responsibilities 
such as, but not limited to, make-up classes/examinations on missed school 
days/examinations, which coincided with the exercise of their established 
religious beliefs; and 
(9) Adopt internal rules or procedures consistent with the provisions of this 
Act. 
SEC. 17. 
The University Consultative Assemblies. - There shall be 
established for the whole UPS, consultative assemblies, as follows: 
(a)There shall be a college assembly for every college, other degree 
granting institute composed of representatives coming from the students, 
academic personnel (faculty and REPS), and administrative personnel. The 
dean of the college/director of the institute shall be the presiding officer of the 
college assembly. 
(b) There shall be a university assembly in each constituent university 
composed of elected members from college assemblies, representing the 
students, academic personnel (faculty and REPS), and administrative personnel. 
Vice chancellors, deans of colleges and directors of degree-granting institutes 
who have not been elected as delegates by their respective college assemblies 
shall be ex officio nonvoting members of the university assembly. 
The 
recognized unions for academic, administrative personnel, and university student 
." 


council shall have representation in the university assembly and the chancellor 
of each constituent university would be the presiding officer. 
(c) There shall be a University of the Philippines System Assembly (UPSA) 
for the whole UPS composed of at least twenty-eight (28) members to be elected 
from the university assemblies of seven (7) existing constituent universities with 
each constituent university entitled to four (4) members representing the 
students, academic personnel (faculty and REPS), administrative personnel and 
alumni. 
The members of the UPSA shall elect from among themselves the 
executive committee to be composed of a chairperson, a vice chairperson and 
an executive board composed of a representative from each constituent sector, 
the students, faculty and REPS, administrative personnel and alumni. 
The term of office of all representatives in the consultative assemblies shall 
be for one (1) year without prejudice to their reelection. 
SEC. 18. 
The Role and Functions of the Consultative Assemblies. - 
The consultative assemblies as consultative, consensus-building, democratic 
and collegial bodies shall have the following functions: 
(a) To serve as the principal forum where faculty, students, REPS, and 
administrative personnel shall address nonacademic issues affecting the 
University, its thrust and directions, and issues relating to longhnedium-term 
development plans for the University; 
(b) To promote direct interaction among the various unit constituencies of 
the University (faculty, REPS, administrative personnel and students) in the 
discussion of issues and grievances which heretofore have been mainly sectoral; 
(c) To serve as a multi-sectoral forum to recommend policies on 
administrative and nonacademic matters in consultation with the chancellors for 
approval by the Board; and 
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(d) To act as a consultative body in the search process for deans, directors 
and equivalent positions in the units of the University, as may be necessary. 
SEC. 19. 
The Chancellor of the Constituent University. - The 
administration of each constituent university is vested in the chancellor insofar as 
authorized by the Board and the president of the University. The chancellor of 
the constituent university shall be elected by the Board upon nomination of the 
president of the University, following a process of democratic consultation with 
constituents of the constituent university subject to the guidelines, qualifications 
andlor standards set by the Board. The chancellor shall report to the president 
of the University, and shall perform the duties and functions elsewhere as 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. The Board 
shall determine the term and compensation of the chancellor. 
SEC. 20. 
The Faculty. - The teaching staff of each college shall 
constitute its faculty, which shall be presided over by the dean, elected by the 
Board on nomination by the University president and upon the recommendation 
of the chancellor of the constituent university, following a process of democratic 
consultation with the constituents of the college subject to the guidelines, 
qualifications andlor standards set by the Board. 
SEC. 21. 
Appointment Requisites and Practice of Profession. - 
Faculty members, as well as REPS of the University, shall be exempt as such 
from any civil service examination or regulation as a requisite to appointment. 
The provisions of existing law to the contrary notwithstanding, licensing 
requirements for professional regulatory boards shall not affect appointments to 
faculty positions. In the appointment of faculty members, no religious test shall 
be applied nor shall religious or political opinions or affiliations of the faculty 
members of the University be made a matter of examination or inquiry. 
14 


SEC. 22. 
Student Affairs. - (a) There shall be established in the 
University the following student councils: for every college and degree granting 
institute, a college or institute student council; for every constituent university, a 
university student council; and for the University system, a general assembly of 
all student councils. 
The student council shall be composed of elected students of a definite 
academic unit of the University. Each member of the student council shall serve 
a term of one (1) year, without prejudice to reelection. 
The student council shall serve as the primary student body that shall 
advance the interest, welfare and aspirations of the students of the University. It 
shall have the power to adopt internal rules of procedure consistent with the 
provisions of this Act. 
The manner of selecting the student regent shall be based on the rules and 
qualifications set by the general assembly of the student councils of all 
constituent universities. 
(b) There shall be a student publication established in every constituent unit 
and college. Freedom of expression and autonomy in all matters of editorial and 
fiscal policy shall be guaranteed especially in the selection of its editors and 
staff. 
SEC. 23. 
Land Grants and Other Real Properties of the University. - 
(a) The State shall fully support the UPS through the General 
Appropriations Act and other financial benefits, and in kind, through land grants, 
donations and use of other real properties. To carry out the intent of these 
grants, income derived from the development of all land grants and real 
properties shall be used to further the University's mission and orientation as the 
national state university. 
15 


(b) Such parcels of land ceded by law, decree or presidential issuance to 
the UPS are hereby declared to be reserved for the purposes intended, as 
confirmed by the Board. The absolute ownership of the University over these 
landholdings including those covered by original and transfer certificates of title 
in the name of the University of the Philippines and their future derivatives is 
hereby affirmed. Where the issuance of proper certificates of title is yet pending 
for these landholdings, the appropriate government office shall expedite the 
issuance thereof within six (6) months from the date of effectivity of this Act: 
Provided, That all registration requirements necessary for the issuance of the 
said titles have been submitted and complied with. 
(c) Any plan to generate revenues and other resources from land grants 
and other real properties entrusted to the University shall be consistent with the 
University’s academic mission and orientation as the national state university as 
well as protect the University from undue influence and control of commercial 
interests: Provided, further, That such programs, projects or mechanisms shall 
be approved by the Board subject to a transparent and democratic process of 
consultation with the University’s constituents: Provided, fina//y, That funds 
generated from such programs, projects or mechanisms shall not be meant to 
replace, in part or in whole, the annual appropriations provided by the national 
government to the University. 
SEC. 24. 
Grant of Special Allowances. - In order to continue to attract 
and maintain competent and excellent teaching personnel, all faculty members 
of the University may be granted special allowances upon approval of the Board 
up to a maximum amount equivalent to two hundred percent (200%) of their 
basic monthly salary. 
The grant of special allowances may initially be implemented upon approval 
twenty-five 
Subsequent 
of the Board uniformly in such sums or amounts equivalent to 
percent (25%) of the basic salary of the positions concerned. 
16 


implementation shall be in such sums and amounts and up to the extent only 
that can be supported by internally generated funds of the University. 
SEC. 25. 
Effects 
of 
Subsequent 
Salary 
Increases. - Upon 
implementation of any subsequent increase in the salary rates provided for the 
positions concerned under Republic Act No. 6758, as amended, all special 
allowances granted under this Act for the faculty members shall be considered 
as an implementation of the said salary increases as may be provided by law. 
The special allowances equivalent to the increase of the basic salary, as may be 
provided by law, shall be converted as part of the basic salary: Provided, That 
any excess in the amount of special allowance not converted as part of the basic 
salary shall continue to be granted and paid as such. 
SEC. 26. 
Funding Source. - The amount necessary to initially 
implement the special allowances granted under this Act shall be sourced from 
and charged against the internally generated income of the University of the 
Philippines, and that subsequent implementation shall be at such percentages, 
sums and amounts which can be supported by internally generated funds of the 
UPS. 
The annual funding requirements of the special allowances granted under 
this Act shall continuously be charged exclusively against the internally 
generated funds of the University and shall, in no case, be paid chargeable 
against direct or realigned national government financial assistance or budget 
subsidy. 
SEC. 27. 
Appropriations. - The Board of the UPS shall immediately 
include in its programs, the implementation of this Act, the initial funding of which 
shall be charged against the current fiscal year’s appropriations and other 
internally generated income of the University. Thereafter, such sum as may be 
necessary as the national government assistance to the University shall be 
included in the annual General Appropriations Act. 
17 


The Board of the UPS shall assure that studies shall be made with the end 
in view of giving more funds to UP Visayas and UP Mindanao. 
SEC. 28. 
Tax Exemptions. - The provision of any general or special 
law to the contrary notwithstanding: 
(a)All revenues and assets of the University of the Philippines used 
actually, directly and exclusively for educational purposes shall be exempt from 
all taxes and duties; 
(b) Gifts and donations of real and personal properties of all kinds shall be 
exempt from the donor's tax and the same shall be considered as allowable 
deductions from the gross income of the donor, in accordance with the 
provisions of the National Internal Revenue Code of 1997, as amended; 
(c) importation of economic, technical, vocational, scientific, philosophical, 
historical and cultural books, supplies, equipment, machinery and other 
materials, including scientific and educational computer and software equipment, 
shall be exempt from customs duties and taxes; 
(d) Educational services rendered by the University shall be exempt from 
value-added tax; and 
(e) All honoraria for professorial chair awards shall be exempt from taxes. 
SEC. 29. 
Audithg 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 the rules and regulations prescribed by the 
latter. 
SEC. 30. 
institutional Autonomy as the National State Unjversity. - To 
provide greater flexibility to the University, it shall be treated in a manner 
consistent with its institutional requirements as the national state university by 
the service-wide agencies in the exercise of their respective jurisdiction. 
18 


The University, taking into account national goals and priorities, shall 
exclusively determine its teaching, research and extension thrusts, plans, 
policies, programs and standards and, on the basis of such determination, the 
University shall recommend its annual budget to the President of the Republic of 
the Philippines and Congress. 
SEC. 31. 
Rules of Construction. - No statutory or other issuance 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 Chatter shall be 
resolved in favor of the academic freedom and fiscal autonomy of the University 
of the Philippines. 
SEC. 32. 
lmplementing Rules and Regulations. - The Board of the 
UPS shall issue, within sixty (60) days after the effectivity of this Act, the rules 
and regulations for the effective implementation of this Act. 
SEC. 33. 
Repealing Clause. - Act No. 1870 is hereby repealed. 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. 
SEC. 34. 
Separability Clause. - Should any provision herein be 
declared unconstitutional, the same shall not affect the validity of the other 
provisions of this Act. 
SEC. 35. 
Effectivity. - This Act shall take effect fifteen (15) days after 
its publication in the Official Gazefte or in any newspaper of general circulation in 
the Philippines. 
Approved. 
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