Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Constitution Hills, Quezon City 
NINETEENTH (19TH) CONGRESS 
Second Regular Session 
HOUSE BILL No._____ 
__________________________________________________________________
____________ 
Introduced by: REPRESENTATIVE EDWIN L. OLIVAREZ 
“AN ACT AMENDING PRESIDENTIAL DECREE NUMBERED 1341, 
OTHERWISE KNOWN AS THE CHARTER OF THE POLYTECHNIC 
UNIVERSITY OF THE PHILIPPINES” 
EXPLANATORY NOTE 
One of the Constitution guarantees is the right of every citizen to an access to 
quality education at all levels.  The State in furtherance of this guarantee is 
dutybound to promote and develop the educational system of the country and its 
educational institutions.  
Through the years, the State has lived up to its commitment to give quality yet 
affordable education.  The Polytechnic University of the Philippines (PUP) is the 
best specimen of this Constitutional pledge.  Through the years, PUP had produced 
competent graduates, at par with the graduates of private universities, and now serve 
as the country's industry front-runners in the fields of business, education, 
engineering and architecture, science and technology, information technology, law, 
public administration, and social sciences.  Results of surveys conducted by 
Jobstreet.com show that employers in the Philippines prefer graduates of PUP as 
their top choice for employment. 
Considering its contribution in nation-building and in order to proliferate 
educational proficiency, there is a need to strengthen the Polytechnic University of 
the Philippines and elevate this into a National Polytechnic University and empower 
the same as an institution committed in producing industry leaders and professionals 
towards nation-building and national development. 
August 9, 2023
5:51 pm
8829


The passage of this bill is most respectfully sought. 
EDWIN L. OLIVAREZ 


Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Constitution Hills, Quezon City 
NINETEENTH (19TH) CONGRESS 
Second Regular Session 
HOUSE BILL No._____ 
__________________________________________________________________
____________ 
Introduced by: REPRESENTATIVE EDWIN L. OLIVAREZ 
“AN ACT AMENDING PRESIDENTIAL DECREE NUMBERED 1341, 
OTHERWISE KNOWN AS THE CHARTER OF THE POLYTECHNIC 
UNIVERSITY OF THE PHILIPPINES” 
Be it enacted by the Senate and House of Representatives of the Philippines in 
Congress assembled: 
SECTION 1. Section 1 of PD 1341 is hereby amended to read as follows: 
“Section 1. Declaration of Policy. The Polytechnic University 
of the Philippines is hereby strengthened into the Country's National 
Polytechnic University. In order to execute its mandate, it is hereby 
declared as the country's First National Polytechnic University. Along 
with its elevated status as the country's first national polytechnic 
university, the University will aid support to other polytechnic state 
universities and colleges to raise the bar by having the former serve as 
the latter's guide in the development and delivery of professional and 
technical programs. 
The University shall enjoy institutional autonomy and fiscal 
autonomy. It shall be treated in a manner consistent with its institutional 
requirements by the service-wide agencies in the exercise of their 
respective jurisdiction. Taking into account national goals and 
priorities, it shall exclusively determine its teaching, research and 
extensions thrust, plans, policies, programs and standards, consistent 
with the policies standards and guidelines promulgated by the 
Commission on Higher Education. On the basis of such determination, 
8829


the National Polytechnic University shall recommend its annual budget 
to the President of the Republic of the Philippines and Congress. 
Appropriations for the University shall not be reduced by the legislature 
below the amount appropriated for the previous year and after approval 
shall be automatically and regularly released.” 
 
SEC. 2. Section 2 of PD 1341 is hereby amended to read as follows: 
 
“Section 2. Primary Purpose. The University shall offer 
primarily higher occupational, technical and professional instruction 
and training in the fields of engineering and architecture, applied 
sciences, accountancy, law, education, business and management, and 
shall be strengthened as the country's National Polytechnic University. 
It shall also promote applied research, advance studies, and progressive 
leadership in the stated fields. As a national polytechnic university, 
PUP is committed in implementing programs designed to address the 
pressing social and economic needs by rendering services to individuals 
and communities and empowering citizenry for sustainable 
development.” 
 
SEC 3. Section 3 of PD 1341 is hereby amended to read as follows: 
 
“Section 3. Secondary Purpose. The University shall offer 
undergraduate and graduate programs in the field of accountancy, 
engineering and architecture, applied sciences, law, education, business 
and management. In addition, the University shall offer other programs 
in the polytechnic areas in light of its purpose as a national polytechnic 
university.” 
 
SEC 4. Section 4 of PD 1341 hereby amended to read as follows: 
 
“Section 
4. 
The 
University 
Administration. 
The 
Administration of the University shall be vested in the President of the 
University who shall render full-time service. He shall be appointed by 
the Board of Regents, upon the recommendation of a duly constituted 
search committee. He shall have a term of six (6) years without an 
eligibility for reappointment for another term: Provided that this 
provision shall not adversely affect the terms of the incumbents, that 


the incumbent President shall become the first president of the 
university upon effectivity of this act; Provided further, that in case 
where no appointment was made thereafter, the incumbent President 
shall continue to hold the office in a hold-over capacity, such period 
shall in no case be more than 90 days. 
 
The President shall be assisted by an Executive Vice President, 
Vice Rresidents for Academic Affairs, Administration, Research, 
Planning and Development, Finance, Student Affairs, and External 
Affairs, who shall be appointed by the Board upon the President's 
recommendation without prejudice to the appointment of additional 
vice presidents when so warranted.  In case of vacancy by reason of 
death, resignation, removal for cause or incapacity of the President to 
perform the functions of his office, the Board of Regent shall have the 
authority to designate an officer-in-charge pending the appointment of 
a new president. In case of vacancy in the office of the President as 
mentioned in the immediately preceding paragraph, his successors shall 
hold office for the unexpired term.” 
 
Section 5. Section 5 of PD 1341 is hereby amended to read as follows: 
 
“SEC 5. Powers and Duties of the President. Specifically, the 
President of the University shall have the following powers and duties 
in addition to those normally appertaining to the Office of the President 
of the University: 
 
a) 
He shall be the Chief Executive Officer of the University 
as such, progressive and dynamic, ethical, and intellectual 
administrative leadership in the University is expected of him and 
vested in him; 
b) 
He shall be the head of the University Faculties and of any 
branch thereof; 
c) 
He shall have general supervision over all academic as 
well as business and financial operations of the University; 
d) 
He shall promulgate and enforce general policies affecting 
any unit of the University and take such actions which in his judgment 
are necessary for the protection of property and general interest of the 
University, students and personnel, and for the operation of the 


University as a whole, and shall inform the Board on all matters relating 
to the operation and welfare of the University; 
e) 
He shall appoint qualified persons to fill all vacancies and 
new positions subject to the approval of the Board and make such other 
arrangements to meet emergencies occurring between meetings of the 
Board so that the work of the University shall not suffer; 
f) 
He shall institute disciplinary action against any member 
of the University personnel, faculty or non-faculty, as well as any 
student of the University whose actions adversely affect the general 
interest of the University; 
g) 
He shall decide appeals in controversies between ranking 
officials of the University, his decisions being final and conclusive; 
h) 
He shall grant or deny sabbatical leaves and leaves of 
absence without pay and/or extension of such leaves as well as 
extension of fellowships or any form of scholarship for a period not 
exceeding one academic year if the budget permits and for reasons he 
may deem satisfactory; 
i) 
He shall make ad-interim appointments; 
j) 
He shall grant or withhold permission to reveal 
confidential matters affecting the University or any unit thereof, as well 
as any action taken by the Board of Regents; 
k) 
He shall grant permission for the use of buildings and 
premises of the University for academic, professional and scientific 
conventions, for students and related activities and to fix the fee thereof; 
l) 
He is authorized to join the execution of all contracts, 
deeds, and instruments for the proper conduct of the business of the 
University and to assign the same in behalf of the University; 
m) 
He shall prepare an annual report on the work of the past 
year and needs of the current year including a budget with estimates of 
income and expenditures; and 
n) 
He shall have such other powers as may be specifically 
authorized by the Board of Regents. He may delegate in writing any of 
his specific functions to any office.” 
 
SEC 6. Section 6 of PD 1341 is hereby amended to read as follows: 
 
“Section 6. The Board of Regents. The governing body of the 
University shall be the Board of Regents of the Polytechnic University 
of the Philippines (hereinafter referred to as the Board). 
 


1. 
Composition. The Board shall be composed of: 
 
a) The Chairperson of the Commission of Higher Education as 
Chairperson; 
b) The President of the University as Co-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 Director-General of the National Economic Development 
Authority; 
f) The Secretary of the Department of Science and Technology; 
g) The President of the Alumni Association who will serve for a 
period of two (2) years; 
h) One Faculty Regent representing all teaching personnel, elected 
by the said personnel in accordance with the rules and 
qualifications set out by the same constituency who shall serve 
for a period of two (2) years. 
i) One Student Regent, elected by the students in accordance with 
the rules and qualifications set out by said constituency, who 
shall serve for a period of one (1) year. 
j) One Staff Regent representing all non-teaching personnel, 
elected in accordance with the rules and regulations set out by 
said constituency, who shall serve for a period of two (2) years; 
and 
k) Three other Regents who have distinguished themselves in their 
professions or fields of specialization. All these Regents shall be 
appointed by the Board as recommended by the search 
committee organized for the purpose and shall each serve for a 
term of two (2) years. 
 
The faculty and the student council shall be represented by 
their respective federations. The private sector representatives 
shall be appointed by the Board of Regents upon 
recommendation of a duly constituted search committee. 
 
2. 
Compensation. The members shall serve without 
compensation, but they shall be reimbursed for necessary expense 
incurred in their attendance of meetings of the Board or in connection 
with their official business authorities by resolution of the Board. 


 
3. 
Vacancy. In case of vacancy in the Board, except for the 
President of the University, such vacancy shall be filled in the same 
manner as provided for the predecessor and such appointee shall hold 
the office only for the unexpired portion of the term. In case of Regents 
representing a particular sector, their membership shall cease upon 
suspension separation or recall. No person, however, who has 
succeeded and served for more than 3 years of the unexpired portion 
shall be eligible for appointment as president.” 
 
SEC 7. Section 7 of PD 1341 s hereby amended to read as follows: 
 
“Section 7. Powers and Duties of the Governing Board. The 
governing 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 
Section 36 of Batas Pambansa Blg. 68, otherwise known as the 
“Corporation Code of the Philippines”: 
 
a) 
to enact rules and regulations not contrary to law as may 
be necessary to carry out the purpose 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, to carry out the purpose and functions of the university; 
c) 
to receive in trust legacies, gifts and donations of real and 
personal properties of all kinds, to administer and dispose the same 
when necessary for the benefit of the university, subject to limitations, 
directions and instructions of the donors, if any, such donations shall be 
exempt from all taxes and shall be considered as deductible items from 
the income tax of the donor; 
d) 
to fix the tuition fees and other necessary school charges 
such as but not limited to matriculation fees, graduation fees and 
laboratory fees, as the board may deem proper to impose after due 
consultations with the involved sectors. Such fees and charges, 
including government subsidies and other income generated by the 
university shall constitute special trust funds and shall be deposited in 
any authorized government depository bank and all interest that shall 
accrue therefrom shall form part of the same fund for the use of the 
university. 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 of Regents for instruction, research, extension, 
or other programs/projects of the university; Provided that all fiduciary 
fees shall be disbursed for the specific purposes for which they are 
collected . If for reason of control, the university shall not be able to 
pursue any project for which funds have been appropriated and 
allocated under its approved program of expenditures, the Board of 
Regents 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. Provided further, that a 
portion of any amount of fees increased, however, shall inure to the 
benefit of the College or Institute for the purpose of faculty, physical 
facilities and equipment development. 
e) 
to authorize the construction or repair of its buildings, 
machineries, equipment and other facilities and the purchase and 
acquisition of real and personal properties including necessary supplies, 
materials and equipment. Purchases and other transactions entered into 
by the university through the Board of Regents shall be exempt from 
all taxes and duties. 
f) 
to appoint upon the recommendation of the president, vice 
presidents, deans, directors, heads of departments, faculty members and 
other officials and employees of the University; 
g) 
to fix and adjust salaries of faculty members and 
administrative officials and employees subject to the provisions of the 
revised compensation and 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 regulation 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; 
h) 
to approve the curricula, institutional programs, and rules 
of discipline drawn by the administrative and academic councils as 
herein provided; 
i) 
to set policies on admission and graduation of students; 
j) 
to award honorary degrees upon persons in recognition of 
outstanding contribution in the field of education, public service, arts, 
science and technology or in any field of specialization within the 
academic competence of the university and to authorize the award of 


certificates of completion of non- degree and non-traditional courses; 
k) 
to absorb non-chartered tertiary institutions within their 
respective provinces in coordination with the CHED and in consultation 
with the Department of Budget and Management and to offer therein 
needed programs or courses to promote and carry out equal access to 
educational opportunity mandated by the Constitution; 
l) 
to establish research and extension centers of the SUC 
where such will promote the development of the latter; 
m) 
to establish professorial chairs in the university and to 
provide fellowships to qualified faculty members and scholarship to 
deserving students; 
n) 
to delegate any of its powers and duties provided for 
hereabove 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; 
o) 
to authorize an external management audit of the 
institution and to institute reforms, including academic and structural 
changes, on the basis of the audit results and recommendations: 
p) 
to collaborate with other governing boards of SUCs within 
the province or the region, in coordination with the CHED and the 
Department of Budget and Management, the restructuring of said 
colleges and universities to become more efficient, relevant, 
productive, and competitive; 
q) 
to enter into joint ventures with business and industry for 
the profitable development and management of the economic assets of 
the college or institution, the proceeds from which to be used for the 
development and strengthening of the university; 
r) 
To develop consortia and other forms of linkages with 
local government units, institutions and agencies, both public and 
private, local and foreign, in furtherance of the purposes and objectives 
of the institution. 
s) 
to develop academic arrangements for institution 
capability building with appropriate institutions and agencies, public or 
private, local or foreign, and to appoint experts/specialists as 
consultants, or visiting or exchange professors, scholars, researchers, as 
the case may be; 
t) 
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, community laboratory etc., for the 
promotion of greater access to higher education; 


u) 
to establish policy guidelines and procedures for 
participative decision-making and transparency within the institution; 
v) 
To create, organize, reorganize, merge or abolish colleges, 
institutes, and other academic and administrative units of the 
University; and 
w) 
To privatize, where most advantageous to the institution, 
management of non- academic services such as health, food, building 
or grounds or property maintenance and similar such other objectives.” 
 
SEC 8. Section 8 of PD 1341 is hereby amended insofar as a section title was 
inserted, and to read as follows: 
 
“Section 8. Quorum and Services of Processes. - A quorum of 
the Board of Regents shall consist of a majority of all members. All 
processes against the Board of Regents shall be served on the President 
or Secretary thereof.” 
 
SEC. 9. Section 9 of PD 1341 is hereby amended insofar as a section title was 
inserted, and to read as follows: 
 
“Section 9. Meetings. - Regular meetings of the Board of 
Regents shall be held at least once every quarter. The Chairman of the 
Board of Regents may call a special meeting whenever necessary. In 
both cases, notice of such meetings shall be issued at least three (3) days 
prior to the meeting.” 
 
SEC 10. Section 10 of PD 1341 is hereby amended and to read as follows; 
 
“Section 10. University Officials. The administration of the 
university shall be vested in the president. The president shall be 
assisted by the Executive Vice President, the Vice- President for 
Administration, the Vice-President for Academic Affairs, the Vice-
President for Student Affairs, the Vice-President for Research and 
Extension, the Vice-President for Planning and Development, the Vice-
President for Finance, the Vice-President for External Affairs, the 
Secretary of the University and such other academic and administrative 
officials, whose positions and functions are deemed necessary to assist 
in the effective and efficient administration of the University as may be 
determined by the Board of Regents. 
 


Sec. 11. A new Section 11 is hereby inserted and to read as follows: 
 
“Section 11. The Faculty. The teaching staff of each college 
shall constitute its faculty. The College Faculty shall be presided over 
by a Dean. The Dean shall be appointed by the Board of Regents, upon 
recommendation of the President, selected from a shortlist of three 
nominees submitted by a special selection committee established for 
the purpose. If a dean fails to complete his/her term, the President shall 
appoint an Acting Dean while a search process is in progress. In no case 
shall the search and election of the next Dean be longer than sixty (60) 
calendar days from the date when the vacancy occurs.” 
 
SEC 12. A new Section 12-A is hereby inserted amending PD 1341 to read as 
follows: 
 
"Section 12-A. Land Grants and Other Real Properties of the 
University.  
 
(a) 
The State shall support the Polytechnic University of the 
Philippines as the national polytechnic university in the form of lump 
sum amount, through general appropriations and other financial 
benefits, and in kind, through land grants and 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 ends of the national polytechnic university, as may be 
decided by the board; 
(b) 
Such parcels of land ceded by law, decree or presidential 
issuance to the Polytechnic University of the Philippines are hereby 
declared to be reserved for the purposes intended. The absolute 
ownership of the national polytechnic university over these 
landholdings, including those covered by original and transfer 
certificates of title in the name of the Polytechnic University of the 
Philippines and their future derivatives, is hereby confirmed. 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 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) 
The Board may plan, design, approve and/or cause the 
implementation of land leases: Provided, That such mechanisms and 


arrangements shall sustain and protect the environment in accordance 
with law, and be exclusive of the academic core zone of the campuses 
of the Polytechnic University of the Philippines: Provided, further, That 
such mechanisms and arrangements shall not conflict with the 
academic mission of the national polytechnic university; 
(d) 
The Board may allow the use of the income coming from 
real properties of the national polytechnic university as security for 
transactions to generate additional revenues when needed for 
educational purposes; 
(e) 
The Board may approve the implementation of joint 
ventures: Provided, That in the event real properties of the national 
polytechnic university are involved, only the income derived by the 
University from the use of the real properties shall be the subject of its 
participation or obligation in the joint ventures: Provided, further, That 
no joint venture shall result in the alienation of the real properties of the 
national polytechnic university; and 
(f) 
Any plan to generate revenues and other sources from land 
grants and other real properties entrusted to the national polytechnic 
university shall be consistent with the academic mission and 
orientation of the national polytechnic university as well as protect it 
from undue influence and control of commercial interests: Provided, 
That such programs, projects or mechanisms shall be approved by the 
Board subject to a transparent and democratic process of consultation 
with the constituents of the national polytechnic university: Provided, 
further, 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 national 
university.” 
 
SEC 13. A new Section 12-B is hereby inserted amending PD 1341 to read as follow 
 
“Section 12-B Safeguards on Assets Disposition. The 
preservation of the value of the assets of the national polytechnic 
university shall be of primordial consideration the sale of any existing 
real property of the national polytechnic university shall be prohibited: 
Provided, that the Board may alienate real property donated after the 
effectivity of this Act if the terms of the donation specifically allow it. 
Notwithstanding the provision of this Act or any other law to the 
contrary, the lease of more than five (5) years of the assets of the 
national polytechnic university and any transactions referred to in 


Section 22 shall be subject to the following conditions and procedures: 
 
a) 
The transactions shall be discussed with the members of 
the Board in any of its formally convened regular or special meeting, at 
least one (1) month before a decision is to be made; 
b) 
The transactions shall be based on a multi-year 
comprehensive development plan, crafted and developed by qualified 
urban planning professionals having at least five (5) years’ experience, 
with prior consultations with and concurrence of third-party experts and 
duty approved by a majority vote of all the members of the Board; 
c) 
The transactions shall be subject to competitive and public 
bidding as provided under Republic Act No 9184, otherwise known as 
the "Government Procurement Reform Act"; and 
d) 
If the contract or transaction involves an amount more than 
fifty million pesos (P50,000,000.00). It shall be approved by three 
fourths (3/4) of all the members of the Board: Provided, That the 
splitting of contracts, which is by breaking up a contract into smaller 
quantities or amounts or dividing contract implementation into artificial 
or arbitrary phases or subcontracts for the purposes of circumventing 
this provision, shall not be allowed.” 
 
SEC 14. A new Section 12-C is hereby inserted amending PD 1341 to read as 
follows:  
 
"Section 12-C Tax Exemptions. The provisions of any general 
or special law to the Contrary notwithstanding: 
 
a) 
All revenues and assets of the Polytechnic University of 
the Philippines used for educational purposes or in support thereof 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; Provided that the allowable deductions shall 
be equivalent to one hundred fifty percent (150%) of the value of such 
donation. Valuation of assistance other than money shall be based on 
the acquisition cost of the property, such valuation shall take into 
consideration the depreciated value of property in case said property 
has been used. 


c) 
Importation of economic, technical, vocational, scientific, 
philosophical, historical, legal and cultural books, supplies and 
materials duty certified by the Board, including scientific and 
educational computer and software equipment shall be exempt from 
customs duties. 
d) 
The University shall only pay 0% value-added tax for all 
transactions subject to this tax; and 
e) 
All academic awards shall be exempt from taxes.” 
 
SEC 15 Sections 11, 12 and 13 PD 1341 are hereby repealed SEC [17] 16, 
Section 11 of PD 1341 is hereby amended to read as follows: 
 
"Section 14. Appropriations. In addition, to the amount already 
appropriated for the Polytechnic University of the Philippines for the 
current fiscal year, there is hereby appropriated an initial sum of Eight 
Billion pesos (P8,000,000,000.00) from any amount available in the 
Treasury of the Philippines for the purposes of carrying out the 
implementation of this Act. Further, an additional sum of One Hundred 
Million pesos (P100,000,000.00) shall be appropriated separate and 
above the said initial funding for each fiscal year for the first three years 
of the implementation of this Act. 
 
SEC [18] 17 Separability Clause. Should any provision herein 
be declared unconstitutional the same shall not affect the validity of the 
other provisions of the Act. 
 
SEC 18 Repealing Clause [Republic Act No 8292, as amended, 
and [a] All laws, decrees, orders, rules, and regulations or other 
issuances or parts inconsistent with the provisions of this Act are hereby 
repealed or modified accordingly 
 
SEC. 19 Suppletory Application of Republic Act No 8292. 
The provisions of Republic Act No. 8292 in so far as they are applicable 
shall be suppletory to this Act. 
 
SEC 20. Effectivity. This Act shall take effect fifteen (15) days 
after its publication in the Official Gazette or in any newspaper of 
general circulation in the Philippines.” 


 
 
Approved.