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SIXTEENTH CONGRESS OF THE REPUBLIC 
OF THE PHILIPPINES 
) 
) 
) 
Second Regular Session 
SENATE 
S. B. No.2468 
Introduced by SENATOR SONNY ANGARA 
AN ACT 
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ESTABLISHING 
THE 
UNIVERSITY 
OF 
SCIENCE 
AND 
TECHNOLOGY 
OF 
THE 
PHILIPPINES (USTP), ENHANCING THE COMPOSITION OF ITS GOVERNING BOARD, 
AND EXPANDING INDUSTRY PARTICIPATION IN THE UNIVERSITY THROUGH 
THE 
AMALGAMATION OF THE MINDANAO UNIVERSITY OF SCIENCE AND TECHNOLOGY 
(MUST) AND THE MISAMIS ORIENTAL STATE COLLEGE OF AGRICULTURE AND 
TECHNOLOGY (MOSCAT), AND APPROPRIATING FUNDS THEREFOR 
EXPLANATORY NOTE 
Science and technology (S& T) are key drivers to development. Over the years, they 
have significantly altered the way people live, playing vital roles in the growth and development 
of communities worldwide. 
In view of its immense contribution, it is imperative that developing countries such as the 
Philippines promote advancement in S&T, particularly in research and development (R&D). A 
good start would be for the government to invest in good S& T education for our youth and 
encourage them to take up engineering, science and technology courses, by establishing an 
educational institution that is truly competent and well-equipped to provide world-class S& T 
education. Unlike other Asian countries such as Malaysia, Thailand, Taiwan and Singapore, the 
Philippines has yet to establish a national university that is solely focused on S& T. 
This bill thus seeks to establish the University of Science and Technology of the 
Philippines (USTP) that will cater to the many graduates of science high schools nationwide, as 
well as other science-inclined students, for them to continue higher studies in S&T It is 
envisioned to provide opportunities for equitable access to quality S&T education and develop 
local talents to become world-class scientists and engineers who will not only help local 
industries become globally competitive, but also increase the country's capacity for innovation. 
The USTP shall be established through an amalgamation strategy that combines the strengths 
of leading state universities and cOlleges in Mindanao. 
The bill likewise proposes to provide incentives to industries willing to locate in the 
University S& T park, as well as to those industries conducting joint research projects with the. 
University, thus encouraging private sector investment and partiCipation in R&D activities. It 
must be noted that in other progressive countries, the bulk of R&D investment comes from the 
private sector. 
The lack of research facilities in the regions outside the National Capital Region has 
prevented many outstanding scientists and researchers to conduct research at a higher level. 
While a well-balanced S&T development through R&D should be done on a national scope, the 
location of the USTP is critical. To date, at least 90% of government funds are concentrated in 
SUCs located in Metro Manila; the rest is shared by Visayas and Mindanao. Developing the 
research facilities in Mindanao will broaden access and promote regional R&D activities. With 
almost 300 hectares of land, the Mindanao University of Sciences and Technology (MUST) in 
Alubijid, Misamis Oriental is a strategiC location for USTP to provide R&D facilities, 
accommodation and other amenities for scientists here and abroad: Moreover, it is near the 
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Laguindingan International Airport, making it accessible from all parts of the country and the 
world. 
In view of the foregoing considerations, passage of this bill is earnestly sought. 
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16TH CONGRESS OF THE REPUBLIC 
OF THE PHILIPPINES: 
· Second Regular Session 
SENATE 
Senate Bill No, 2 -168 
Introduced by SENATOR SONNY ANGARA 
AN ACT 
'14 
I~OV 25 f' 5 :56 
ESTABLISHING THE UNIVERSITY OF SCIENCE AND TECHNOLOGY OF THE 
PHILIPPINES (USTP), ENHANCING THE COMPOSITION OF ITS GOVERNING 
BOARD, AND EXPANDING INDUSTRY PARTICIPATION IN THE UNIVERSITY 
THROUGH THE AMALGAMATION OF THE MINDANAO UNIVERSITY OF SCIENCE 
AND TECHNOLOGY (MUST) AND THE MISAMIS ORIENTAL STATE COLLEGE OF 
.AGRICULTURE AND TECHNOLOGY (MOSCAT), AND APPROPRIATING FUNDS 
THEREFOR 
Be it enacted by the, Senate and the /-louse of Representatives of the Philippines in 
, 
· Congress Assembled: 
ARTICLE I 
TITLE AND POLICIES 
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Section 1. Title. This Act shall be known as the "University of Science and Technology 
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of the Philippines Act". 
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Sec. 2 Policies, It is the declared policy of the State to establish, maintain, and support 
a complete, adequate and integrated system of higher education relevant to the needs 
of the people and society, with primary focus on research and development for Science 
and Technology, 
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ARTICLE II 
DEFINITION OF TERMS 
· Sec. 3. Definition o~ Terms. The following terms, as used in this Act, shall be defined 
as follows: 
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a) Auxiliary Jervices - all kinds of services done or rendered by USTP other 
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than academic, such as hospital, dental clinic, cafeteria, janitorial, printing 
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press, bOOKstore, and the like; 
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b) Board of Regents - refers to the highest policy-making body of the University 
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of Science and Technology of the Philippines; 
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c) Community laboratory - is a community adopted by a chartered state 
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university or college (SUe) as part its extension program, where research and 
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civic services are conducted by its students and/or faculty; 
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d) Duly recognized faculty association - is the association of the faculty 
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members or the instructional staff of the USTP or the federation of faculty 
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associations of the Mindanao University of Science and Technology (MUST) 
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and Misamis Oriental State College of Agriculture and Technology (MOSCAT) 
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and other state universities and colleges (SUCs) who may later opt to 
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amalgamate with USTP, which has been extended due recognition by its 
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Governing Board (GB) to be its legitimate and lawful faculty association, as 
manifested by its constitution being ratified by 2/3 of its members; 
e) Duly recognized alumni association - is the association of the alumni of the 
MUST and 'the MOSCAT and other SUCs who may later opt to amalgamate 
with USTP, preferably from their tertiary level programs, which has been 
extended due recognition by its GB to be the legitimate and lawful 
organizatioh of its alumni; 
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f) Extension: campus - is the campus that responds to special needs or 
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demands (Le. instruction, research or extension) with no administrative 
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structure; 
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g) Instruction - shall refer to a set of activities or practices, which include, but 
not limited to, the following: classroom teaching and learning, supervision and 
assessment of classroom teaching and learning, curriculum development, 
staff professional development such as attendance to conferences, seminars, 
workshops, educational trips, and other related activities that enhance the' 
instructional function of the USTP; 
h) Main campus - is the campus where the administrative services of the USTP 
is located and/or where its President holds office permanently; 
i) 
Non-chartered tertiary institutions - refers to all public institutions of higher 
learning in the Philippines primarily offering degree programs, including post-
secondary! degree vocational and technical educational institutions duly 
recognized iby CHED not covered by enabling laws; 
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j) Socialized scheme of tuition and other instructional fees - refers to a 
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scheme or pattern where the rate of tuition and instructional fees are collected 
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on the basis of family income and/or socio-economic status of' the student, 
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such that the less-economically privileged students shall pay lesser fees than 
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students coming from more economically advantaged families; and 
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k) Special trust fund - refers to the total amount collected by the university, 
which may refer to either collection of fees and other charges from stUdents, 
or collection from income generating activities of the university. 
ARTICLE III 
COVERAGE 
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Sec. 4. Coverage. This Act shall apply to and cover all colleges and units, academic or 
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. non-academic, of MyST and MOSCAT now collectively known as USTP, including the 
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campuses in Cagayan de Oro, Jasaan, Misamis Oriental, Alubijid Misamis Oriental, 
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Panaon, Misamis Odcidental and Oroquieta City, Misamis Occidental of MUST and 
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MOSCAT campus in! Claveria, Misamis Oriental. The main campus of the University 
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. shall be established if) Alubijid, Misamis Oriental. 
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Sec. 5. General Mandate. The University shall provide advanced education, higher 
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technological, 
professional and 
advanced 
instruction 
in 
mathematics, 
science, 
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technology, engineering, agriculture, and advanced research and extension work in 
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human resource development in critical S& T skills and competencies required for global 
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competitiveness. 
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Sec. 6. Curricular Offerings. The University shall offer undergraduate, graduate and 
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post-graduate courses in the fields of mathematics, science and technology,. 
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engineering, and agriculture. 
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The University, however, shall be allowed to maintain and operate high school 
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education with concentration in science and technology that will serve as feeders to 
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science and technology courses of the university; Provided, that the total number of 
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high school students in a given year shall not exceed 500. 
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Sec. 7. Administration. The University shall have the general powers of a corporation set 
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forth in Batas Pambansa Big. 68, as amended, othelWise known as ''The Corporation Code of 
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the Philippines". The administration of the University and the exercise of its corporate powers 
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shall be vested exclusively in the Board of Regents and/or the President of the University. 
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. The powers of the Pr$sident shall be those that pertain to the executive powers of a chief 
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executive' of similar organizations insofar as the implementation of the policies set forth by 
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the Governing Board of Regents IS concerned. 
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ARTICLE IV 
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GOVERNING BOARD OF THE UNIVERSITY OF SCIENCE AND TECHNOLOGY OF THE 
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PHILIPPINES; COMPOSITION; MANNER OF APPOINTMENT; TERM OF OFFICE; 
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MEETINGS AND QUORUM; COMPENSATION; AND OTHER RELATED MATTERS 
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Sec. 8. Governing Board. The goveming board of the University shall be the Board of Regents, 
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hereinafter referred to as the Board, which shall be composed of the following: 
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a) The Chairperson of the Commission on Higher Education (CI-lED), chairperson; 
b) The President of the University, vice chairperson; 
c) The Chancellors of Cagayan de Oro and Claveria Campuses, member; 
d) The Chairperson of the Committee on Education, Arts and Culture of the Senate, 
member; 
e) The Chairperson of the Committee on Higher and Technical Education of the House 
of Representatives, member; 
f) 
The Director-General of the National Economic and Development Authority 
(NEDA), member, 
g) The Secretary of the Department of Science and Technology (DOST), member, 
h) The President of the federation of faculty associations of the University, 
member; 
i) 
The President of the federation of student councils of the University, member; 
j) 
The president10f the federation of the alumni aSSOCiations of the University, 
member; and 
1<) Four prominent Chief Executive Officers of duly recognized national or 
multinational corporations who have distinguished themselves in the fields of 
specialization of the University or who have entered partnerships with the 
University through public-private partnership, members. 
I) 
Two prominent academicians in the Philippines who have distingUished 
themselves in the fields of specialization of the University through their 
publications and track record in research. 
The President of the Philippines shall appoint the four (4) Chief 
Executive Officers and two (2) academicians from among a list prepared by the 
University President, in consultation with the Chairperson and members of the 
Board, based on normal standards and qualifications for the position. 
The terms of office of the President of the federation of faculty associations, the 
President of the federation of student councils, and the President of the federations of 
alumni associations, shall be co-terminous with their respective terms of office, as set 
forth in their respective constitutions and by laws. 
. 
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The fourj (4) prominent Chief Executive Officers shall serve for a term of four (4) 
years from the date of appointment while the prominent academicians shall serve for a 
term of two (2) years, with possible future re-appointments. 
Sec. 9. Rights and R~sponsibilities of Board members. The Board members shall have all 
the normal rights and responsibilities of a regular member of the Board of Directors/Board of 
Trustees set forth in Batas Pambansa Big. 68, as amended, othelWise known as "The 
Corporation Code of the Philippines". 
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The right of the SSC/SG, Faculty, and Alumni President or Head, and of the Sludent 
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Council President or Representative, to become members of the Board shall automatically rise 
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from their election and qualification into their respective offices. 
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The private sector representatives must take their oaths of office, as herein provided, 
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before they could assume as Board members. 
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Sec. 10. Representatives of Board Members Coming From the Government. If the 
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Chairpersons of the Committee on Education, Arts and Culture of the Senate and lhe 
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Committee on Higher and Technical Education of the House of Representatives, as well as the 
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Secretaries of NEOA and OOST, could not personally attend a regular meeting or special 
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session of the GB, they may designate in writing their representatives to the meeting or special 
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session. Provided, that the representatives of NEDA and DOST must be the respective· 
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Regional Directors of the agencies. All representatives shall be entitled to vote. 
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The other Board members coming from the government shall personally attend the 
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Board meetings/sessio~s. 
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Sec. 11. Selection, Appointment and Qualifications of the Board Members from the 
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. Private Sector and the Academe. 
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11.1 Search Committee - A search committee (SC) shall be formed and constiluted by 
the President of USTP, in consultation with the Chairman of the Governing Board. The 
search committee shall take charge of recruiting, consulting with the potential 
candidates, and recommending to the President of the University and the Chairperson of 
the Board at least six (6) prominent Chief Executive Officers of Corporations and four (4) 
prominent academicians, for possible appointment by the President of the Philippines. 
The search committee may conduct a thorough background check of the candidates. 
11.2 
Composition of SC - The SC to be formed and constituted by lhe President of 
USTP, and to be approved by the Board chairman, shall have five (5) members who 
shall elect from among themselves a Chair. 
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The private sector representatives shall come from the Philippines. Provided, thaI 
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should the Chief Executive Officer be of foreign nationality, he shall be represented by a 
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Filipino member of the Corporation. 
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11.3 
Assumption. - The duly appointed private sector representatives shall assume 
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office after taking their oaths before the Chair of the BOR or before the latter's duly 
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designated representative. 
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Sec. 12. Terms of Office. The terms of office of the President or Head of faCulty and alumni 
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associations and the Student Regent in the Board of USTP shall be contemporaneous with their 
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terms of office in such capacities, in accordance with their respective Constitution and by-laws: 
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Provided, that in the event that the student loses his status as a student by way of graduation 
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from the university, dismissal, transfer or other such causes, then a duly elected student 
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representative shall sit as regular member of the Board. 
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Sec. 13. Meetings/Sessions. The Board of USTP may hold either regular meetings or special 
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sessions. 
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13.1 Regular Meetings. - The Board must convene once every quarter which shall be 
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held every first week of every quarter. 
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13.2 Frequency, Date and Venue of Regular Meetings. - The frequency over and above 
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the minimum stated in Sec. 13.1 hereof and the date and venue of regular meetings' 
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of the Board shall be determined by the GB, provided that only four (4) regular 
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meetings ahd two (2) special meetings shall be granted the authOrized allowance. 
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13.3 Responsibility of the President. - The President of USTP shall be responsible for 
making th~ necessary preparations to ensure the smooth holding of its Board's 
regular meytings or special sessions. 
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13.4 Special Sessions. - Special sessions of the Board may be held only upon the call of 
its Chair or Vice-Chair provided that the members of the Board have been duly 
notified in writing of the said special session three (3) days before its holding. 
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Board members who believe that a special session should be conducted may 
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petition In writing to the Chair or Vice-Chair accordingly. 
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Sec. 14. Quorum. A majority of all the members of the Board holding office at the time of its 
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regular meeting or special session shall constitute a quorum for lhe said regular meeting or 
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special session. 
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No regular meetings or special sessions of the Board. however, shall be validly held or 
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could legally occur without the presence of either the Chairman of the Board or the President of 
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USTP who is the Vice-Chairman thereof. 
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Sec. 15. Presiding Officer. The CHED Chairman or the CHED Commissioner as duly 
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designated Chair in his capacity as Chairman of the Board of USTP shall preside over lhe 
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regular meetings or speCial sessions thereof, except as hereinafter provided for. 
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In the absence of the CHED Chairman or the CHED Commissioner as Regular Chair of 
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the Board, the President of USTP, who is the Vice-Chairman of ils Board, shall preside. 
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Sec. 16. Representative of CHED Chairman. In case thEi CHED Chairman is unable to attend 
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any regular meeting orlspecial session of the Board of USTP, he may designate in writing one 
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of the CHED Commissioners to represent him in the said regular meeting or special session. 
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The CHED Commissioner so designated shall not preSide over the regular meeting or 
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special session of the GB but shall have all the rights and responsibilities of a member thereof. 
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Sec. 17. Designation of Chair by CHED Chairman. The CHED Chairman who is the 
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Chairman of the Board of all chartered SUCs may deSignate in writlng a CHED CommiSSioner 
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to act as the regular Chair of the Board of USTP and/or in any of its regular meetings or special 
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sessions in which case the CHED Commissioner so designated shall act as the presiding 
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officer. 
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Sec. 18. No Regular Salary for the Chairman, Vice-Chairman and Members of Board. The 
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Chairman, Vice-Chairman and Members of the Board of the USTP shall not receive any regular 
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salary. However, they shall receive entitlements to actual allowances allowed by law, and 
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reimbursement of necessary expenses incurretJ during or in conjunction wilh their attendance in 
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the regular meetings or special sessions of the Board or in connection with their performance of 
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official business as members, duly authorized by the Board through a Resolution. 
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ARTICLE V 
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POWERS AND DUTIESOFTHE BOARD 
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Section 19. Powers and Duties of the Board. The Board of USTP shall have the following 
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. powers and duties, in a'ddition to its general powers of administration and the exercise of all lhe 
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powers granted to Board of Directors of a corporation under Section 36 of Batas Pambansa Big. 
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68, otherwise known as the "Corporation Code of the Philippines," thus: 
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(a) To promulgate rules and regulations not contrary to laws, as may be necessary to 
carry out the purposes and functions of the University; 
(b) To receive and appropriate all sums, as may be provided, to carry out the purposes 
and functions of the University; 
(c) To import duty-free economic, technical and cultural books and/or publications, upon 
certification by the CHED that such imported books and/or publications are for 
economic, technical, vocational, scientific, philosophical, historical or cultural 
purposes, in accordance with the provisions of the Tariff and Customs Code of the 
Philippines, as amended; 
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(d) To receive in trust legacies, gifts and donations of real and personal properties of all 
kinds and to administer and dispose of the same when necessary for the benefit of 
the University and subject to the limitations, directions and instructions of the donor, 
if any. 
Such donations shall be exempt from the donor's tax and tile same shall be 
considered as allowable deductions from the gross 'Income In the computation of the 
income tax of the donor, in accordance with the provisions of the National Internal 
Revenue Code (NIRC) of 1997, as amended: Provided, that such donations shall not 
be disposed'of, transferred or sold; 
(e) To fix the tuition fees and other necessary school charges such as, but not limited to, 
matriculation fees, graduations fees and laboratory fees, as the Board may deem 
proper to impose, after due consultations with the involved sectors. 
Such fees and charges, including government subsidies and other income 
generated by the University, shall constitute a special trust fund 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. 
Income generated by the University from tuition fees and other charges, as 
well as from the operations of auxiliary services, land grants and other income 
generating activities, shall be retained by the University. The disbursement of such 
income shall be decided solely by the Governing Board for the attainment of the 
goals and objectives of the University. Provided, that all fiduciary fees shall be 
di'sbursed for the specific purposes for which these are collected. 
If, for reasons beyond its control, the University shall not be able to pursue 
. any project ,for which the funds have been appropriated and allocated under its 
approved program of expenditures, the Board may authorize the use of said funds' 
for any reasonable purpose which it may deem necessary for the attainment of the 
objectives and goals of the University; 
(f) To adopt and implement a socialized scheme of tuition and other school fees ror 
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, Chancellors, 
Vice-Chancellors, Vice Presidents: deans, directors, heads of campuses, faculty 
members, and other officials and employees of the University; 
(i) To fix and .adjust salaries of faculty members and administrative officials and 
employees,guided by the provisions of the 
revised compensation and position 
classification system; to remove them for cause in accordance with the requirements 
of due process of law; to determine and approve the staffing standard of the 
university and allowances of faculty with emphasis on developing a career path for 
scientists; 
(j) To approve Ihe curricula, instructional programs and rules of discipline drawn by lhe 
Administrative and Academic Councils as herein provided, and to determine the 
curricular offerings of the university based on the needs for globalization and 
internationalization. The policies and standards established by the commission on 
higher education may be used as guides and bases for curriculum designs, provided, 
however, that such policies and standards shall not be a limiting factor in the design 
of the acadernic programs of the University; 
(k) To set policies on admission and graduation of students; 
(I) To award honorary degrees upon persons in recognition of their outstanding 
contribution in the fields of education, public service, arts, science, and technology or 
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in any field of specialization within the academic competence of the University; and 
to authorize the awarding of certificates of completion of non-degree and 
nontraditional courses; 
(m)To establish and absorb non-chartered tertiary institutions within the Philippines as 
branches and centers in coordination with the CHED, and in consultations 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 establisl~ professorial chairs in, the University and to provide fellowships for 
qualified faculty members and scholarships to deserving students; 
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(p) To delegatei any of its powers and duties provided herein to the President and/or 
other officials of the University as it may deem appropriate, so as to expedite the 
administration of the affairs of the University; 
(q) To authorize an external management audit of the University, to be financed by the 
CHED, subject to the rules and regulations of the Commission on Audit; and to 
institute reforms, including academic and structural changes, on the basis of the 
audit results and recommendations; 
(r) To collaborate with the governing boards of other SUCs in the country, 
In 
consultation with the DBM, and work towards restructuring including, but not limited 
to, the amalgamation of such SUCs to USTP to become more efficient, relevant, 
productive and competitive; 
(s) To enter into joint ventures with private entities for the profitable development and 
management of the economic assets of the University, the proceeds of which shall 
be used for the development and strengthening of the University; 
(t) To develop: a mechanism for the efficient adoption of public-private-partnership 
(PPP) in the areas of research, instruction, extension and in the acquisition of 
facilities and structures of the University: 
• 
Joint' Curriculum Ventures: sandwich programs for stUdents in specialized 
S& T, faculty development curriculum with the industries, staff development of 
the industries run by the University, and other such Similar proposals; 
• 
Joint Research Ventures: outsourcing of the research components of the 
industries to the academe's graduate programs; product/service research and 
similar research endeavors; 
• 
Economic Enterprise Ventures: proposals for utilizing the economic assets of 
the university for optimal returns to the University; 
(u) To develop consortia and other economic forms of linkages with local government 
units, institutions and agencies, both public and private, local and foreign, in the 
furtherance of the purpose and objectives of the University; 
(v) To develop academic arrangements for institutional capability building with 
appropriate i,nstitutions and agencies, public and private, local and foreign; 
(w) To appoint ,experts/specialists as consultants: part-time or exchange professors, 
scholars ori researchers, as the case maybe, particularly those focused in 
strengthenin'g the general mandate of the University; 
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(x) To set up the adoption of modern and innovative modes of transmitting knowledge 
such as the use of information technology, the dual learning system, open learning or 
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distance education and community laboratory for the promotion of greater access to 
education; 
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(y) To establish policy guidelines and procedures for participative decision-making and 
transparency within the University; 
(z) To privatize, where most advantageous to the University, the management of 
nonacademic services such as health, food, building or grounds or property 
maintenance and such other similar activities; and 
(aa) 
To extend the term of the President of the University beyond the age of 
retirement but not beyond the age of seventy (70), whose performance has been 
unanimously rated by the Board as outstanding based on the guidelines, 
qualifications and standards set by the Board, after unanimous recommendations by 
the search committee. 
,17 
ARrlCLE VI 
18 
PROMULGATION AND IMPLEMENrATION OF POLICIES BY 
.19 
. 
rHE BOARD 
20 
21 
Sec. 20. Promulgation and Implementation of Policies by the Board. The Board of USTP 
22 
may promulgate and ir)1plement policies within USTP, provided these are consistent with the 
23 
. declared state policies on education and other pertinent provisions of the Philippine Constitution 
24 
on education, science and technology, arts, culture and sports. 
25 
26 
27 
28 
29 
30 
ARIICLE VII 
ADMINISTRATION; ,SELECTION AND APPOINTMENT OF THE PRESIDENT; MINIMUM 
, 
QUALIFICATIONS; TERM OF OFFICE; RE-APPOINTMENT; TENURE OF INCUMBENT; 
VACANCY IN THE OFFICE OF THE PRESIDENT; OTHER OFFICERS 
31 
Sec. 21. Administration of USTP. The administration of USTP is vested on its President who 
32 
must render full-time service. The powers and duties of the President of the University, in 
33 
addition to those specifically provided under this law, shall be those usually pertaining to the 
34 
Office of the President of similar universities and those delegated by the Board. 
35 
36 
The Administration of the USTP Clave ria campus and the USTP Cagayan de Oro campus is 
37 
vested in the. Chancello'r of the campus, insofar as authorized by the Board of the University. 
38 
39 
Sec. 22. Selection and Appointment of the President. 
The President of USTP shall be 
,40 
selected and appointed by its Board upon the recommendation of a duly constituted Search 
41 
. Committee for the Presidency (SCP). 
42 
. 
i 
43 
Sec. 23. SCPo Within ~ix (6) months before the expiration of the term of office of the incumbent 
44 
. President of USTP, thE( Board of USTP must constitute an SCP. The composition of the SCP . 
45 
shall be determined by!the Board, taking into consideration representatives from the academe, 
46 
the private sector who are not in any way connected or associated with the university, PASUC 
47 
representative, and a CHED representative. 
48 
49 
50 
51 
52 
53 
54 
55 
56 
57 
58 
59 
'60 
61 
,62 
63 
Sec. 24. Powers of the SCP. The SCP so constituted shall recruit and screen applicants for the 
President and may devise its own procedures for the search. To this end, the SCP shall cause 
the publication of an open invitation for the presidency in a paper of national circulation. 
Sec. 25, Nominees. The SCP shall submit the names of at least 3 nominees to the GB citing 
therein the strengths and weaknesses of the nominees for guidance and information of the 
Board as well as the enumeration and description of the criteria and procedures employed in 
their search. 
Sec. 26. Appointment Papers. After the Board shall have selected and appointed the new 
President, his appointment papers shall be signed by the CHED Chairman or the CHED 
Commissioner duly designated as Regular Cllair of the Board. 
, 
. Sec. 27. Minimum Qu~lifjcations. The applicant for the Presidency of USTP must possess the 
qualifications and/or standards set by its Board. 
10 
. ; 


1 
2 
Sec. 28. Term of Office. The President of USTP appointed by its Board shall have a term of 
3 
four (4) years, the beginning and end of which must be clearly specified in the appointment 
4 
made by the Board. 
. 
5 
6 
Sec. 29. Re-appointment. The President of USTP appointed under this Act shall be eligible for 
7 
. re-appointment for another term only. 
8 
9 
Sec. 30. Vacancy in the Office of the President. 
In case of vacancy by reason of death, 
10 
transfer, resignation, re'moval for cause or incapacity of the incumbent President to perform the 
11 
functions of his office, the CHED Chairman or the CHED Commissioner as Chair of the Board, 
12 
shall within fifteen (15) days from the occurrence of such vacancy, designate an Officer-in-
13 
charge (OIC) in the Office of the President (OP), subject to confirmation by the Board. 
14 
15 
Sec. 31. Salary of the President. The salary of the President of the University shall be 
16 
determined by the Board and shall be comparable to that being received by the Presidents of 
17 
similar educational institutions. 
18 
19 
Sec. 32. Other Officers. The President recommends the apPointment of Vice-Presidents to the 
20 
Board. The Vice-Presidents shall assist the President in the administration of the University. 
21 
Other officers of the University shall likewise be recommended by the President to the Board for 
22 
apPointment: 
'23 
24 
ARTICLE VIII 
'25 
ESTABLISHMENT OF SCIENCE AND TECHNOLOGY PARK AT THE UNIVERSITY 
26 
PREMISES 
27 
28 
Sec. 33. Science and Technology Park. To strengthen the industry linkages with the 
29 
academe, the Alubijid ~nd Claveria campuses shall be designated as S& T Parks to provide 
30 
locations for the long term development of the academic and research facilities of the University 
31 
in strong partnership with the industries. 
32 
33 
Sec. 34. Industry Incentives. A private entity willing to locate in the University S& T park and to 
34 
participate in the academic and research activities of the University may import duty-free items 
35 
in connection with the joint academic and research activities, as certified by the University's 
36 
Governing Board. Provided, that expenditures incurred by the private entity, in connection with 
37 
such collaborative projects, shall be considered as allowable deductions from gross income in 
38 
the computation of its income tax, in accordance with the provisions of the National Internal 
39 
Revenue Code (NIRC) of 1997, as amended. Provided further, that funds allocated by the 
40 
private entity for the joint academic and research activities with the University shall be at least 
41 
5% of their net income in the preceding year. 
42 
. 43 
Sec. 35. Long Term Lease Agreement. The participating Industries shall enter into a Long-
,44 
Term Lease Agreement with the University's Governing Board in connection with their use of 
45 
the University's land and property through mutually agreed lease rates. 
46 
47 
Sec. 36. Research and Development Collaboration. The University shall be engaged as a 
48 
research partner of 'tHe industries from project conceptualization, conduct and technology 
. 0'.1 
49 
prototyping. The University shall receive royalty from the industries in the event that the 
50 
technology is commercialized in accordance with the Intellectual Property Rights (IPR) 
51 
provisions. The University may allocate funds to support JOint collaborative research with the 
52 
industries as well as to support basic academic research. 
53 
54 
Sec. 37. Academic Development Collaboration. The industries shall participate In the 
55 
formulation of the University curricular programs as experts and practitioners in keeping with the 
56 
DACUM (Developing A Curriculum) process for competency-based curriculum. Whenever 
57 
applicable, the University shall institutionalize the dual training program in curricular offerings 
58 
where students are expected to undergo a minimum of one (1) year industry training as part of 
59 
requirement for graduation. In addition, the University may send faculty to the industries as part 
60 
of its annual immersion program. Services of faculty members sent to industries for academic 
61 
and research purposes shall be considered as part of government service notwithstanding 
62 
existing Civil Service Laws on Detail and Secondment. 
63 
11 
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1 
2 
3 
ARTICLE IX 
UNIVERSITY CAMPUSES, APPOINTMENT OF HEADS, AND TENURE 
4 
Sec, 38. The University Campuses. The seat of administration of the University shall be 
5 
established at Alubijld, Misamis Oriental. The Major Campuses of the University shall be located 
6 
in Cagayan de Oro City and Claveria, Misamis Oriental notwithstanding the addition of other 
,7 
major campuses in the event that other state colleges and universities will be amalgamated to 
8 
USTP. The existing campuses of MUST in Jasaan, Misamis Oriental, Panaon and Oroquieta in 
9 
. Misamis Occidental shall be designated as satellite campuses of the University. 
Sec. 39. Heads of University Campuses. The Major University campuses in Cagayan de Oro 
12 
. and Clave ria shall be h'eaded by Chancellors while the Satellite Campuses in Jasaan, Misamis 
13 
Oriental, Panaon and Qroquieta in Misamis Occidental shall be headed by Campus Directors 
who shall be appointed by the GB after recommendation by the President and a Search 
Committee established for this purpose. 
11 
14 
15 
16 
17 
Sec. 40. Tenure and Terms of Office. The appointed Chancellors of the Major Campuses of 
18 
the University shall serve for a period of four (4) years with the possibility of re-appointment. The 
19 
appointed Campus Directors shall serve for a period of two (2) years with possible future re-
20 
appointments to be recommended by the University President. 
21 
22 
ARTICLE X 
23 
SECRETARY AND EX-OFFICIO TREASURER OF USTP; 
24 
AUDIT 
25 
26 
Sec. 41. Secretary. The Board of USTP shall appoint a Board Secretary who shall likewise act 
27 
as the University Secretary. 
28 
29 
30 
31 
32 
33 
34 
35 
36 
37 
38 
39 
40 
41 
42 
The Board Secretary so appointed shall, among others, keep (111 the records and the 
minutes of the proceedings of the Board and shall communicate to the Chairman, Vice-
Chairman and members of the Board notice of all regular meetings, special sessions and other 
undertakings of the Board. 
I 
I 
Sec. 42. Ex-Officio Treasurer. 
The Treasurer of the Philippines shall be the ex-officio 
treasurer of USTP. 
Sec. 43. Audit. All accounts and expenses of USTP shall be audited by the Commission on 
Audit (COA) or its duly authorized representative. 
ARTICLE XI 
ADMINISTRATIVE COUNCIL (ADCO) AND ACADEMIC COUNCIL (AC) 
43 
Sec. 44. Administrative Council (ADCO). There shall be created in USTP an Administrative 
44 
Council (ADCO) which shall be composed of its President as Chairman and with its 
45 
Chancellors, Vice-President(s), Deans, Directors, and other officials of equal rank as Members. 
46 
47 
48 
49 
"50 
51 
'52 
53 
54 
55 
56 
The President of USTP as Chairman thereof shall constitute the ADCO. 
Sec. 45. DLity of ADCO. The ADCO of USTP so formed and constituted shall review and 
recommend, in accordance with its GB, appropriate policies governing the administration, 
management and devei'opment planning of USTP for the latter's action as it may deem fit. 
! 
Sec. 46. Academic Council (AC). 
There shall be establiShed and constituted in USTP an 
Academic Council (AC) with its President as Chairman and all faculty members with a rank of 
not lower than Assistant Professor as members. 
57 
Sec. 47. Powers of the AC. 
The AC so formed and constituted In USTP shall have the 
58 
following powers, in actordance with Sec. 4, Par. (0) & (v) of R.A. 8292 to wit: 
59 
.60 
a) Determine, review and recommend for the approval of its GB the course offerings of 
61 
USTP; 
62 
63 
b) Devise/draft, review and recommend for the approval of its GB the rules of discipline of 
12 


1 
and for the USTP; and 
2 
3 
c) Fix the requirements for the admission of students in the USTP as well as for their 
4 
graduation and the conferment of deg'rees and submit the same to its GB for review 
5 
and/or approval in accordance with Sec. 4, Par. (I) of R.A. 8292. 
6 
7 
Sec. 48. Industry-Academe Council (lAC) - There shall be established an advisory council 
8 
constituted as the Industry-Academe Council composed of the members of the instructional 
9 
staff with ranI< not lower than Professor and two (2) representatives from each of the 
10 
industries represented in the S&T Park to be chaired by the President of the University. The 
11 
lAC shall have the following powers: 
. 
12 
,13 
14 
15 
16 
17 
18 
19 
20 
21 
22 
23 
a) Review curricular offerings of the University and recommend enhancement thereof to 
the Academic Council (AC); 
b) Determine and :monitor research projects jointly undertaken by the University and the 
Industry for Board information and action; 
c) Serve as a i;I~aring house for project proposals involving the academe and the 
industries and r~commend appropriate action to the Governing Board. 
, 
ARTICLE XII 
ACADEMIC FREEDOM AND INSTITUTIONAL AUTONOMY OF USTP 
24 
Sec. 49. Academic Freedom and Institutional Alltonomy. USTP shall enjoy academic 
25 
freedom and institutional autonomy as provided for in BY 232, R.A. 8292 and Par. 2 Sec. 5 of 
26 
Art. XIV of the 1987 Constitution. 
27 
28 
ARTICLE XIII 
29 
APPOINTMENT OF FACULTY 
30 
31 
Sec. 50. The Faculty. No political beliefs, gender preference, cultural or community affiliation or 
32 
ethnic origin and religious opinion or affiliation shall be a matter of inquiry in the appointment of 
33 
faculty members in the University. 
34 
, -36 
'37 
38 
39 
40 
41 
42 
43 
Sec. 51. Appointments. Appointments of faculty shall be subject to the guidelines and 
qualifications and/or st~ndards set by tile Board. The faculty of the university shall be recruited" 
· from among the most qualified scientists, engineers and technologists domestically and 
internationally. The University shall be guided by the provisions of the salary standardization law 
and the scientific career system and shall continue to receive subsidy from the national 
government, including ~alary increases given to government employees in order to ensure the 
· recruitment of the bes't minds in science and technology allover the world, to deliver the 
mandated functions of the University. 
44 
Sec. 52. Prohibition. No member of the faculty shall teach for or against any particular Church 
45 
or religious sect. 
46 
47 
ARTICLE XIV 
48 
NO DISCRIMINATION IN ADMISSION OF STUDENTS 
49 
IN USTP; SCHOLARSHIP PROGRAMS 
50 
51 
52 
53 
54 
55 
'56 
57 
.58 
59 
60 
61 
62 
63 
Sec. 53. No Discrimination in Admission of Students in USTP. No student shall be 
discriminated against and denied admission in USTP by reason of sex, nationality, religion, 
political affiliation, or physical disability. 
Sec. 54. Scholarship Program. The University shall provide a scholarship program and other 
affirmative action programs to assist poor but deserving students who qualify for admission to . 
the University or its extynsion campuses. 
, 
, 
ARTICLE XV 
DEVELOPMENT AND PROMOTION OF CULTURAL HERITAGE 
· Sec. 55. Enhancemen!t of Theater Arts Program. To promote and preserve culture and arts, 
especially local practites and rites and indigenous practices of Mindanao, and to develop 
13 
_ -t 
• 


1 
2 
3 
4 
S 
6 
talents of students and, University personnel alike, the existing University theater arls program 
shall be enhanced and ~trengthened. 
! 
ARTICLE XVI 
TAX EXEMPTIONS 
7 
Sec. 56. Tax Exemptions. The provIsions of any general or special law to the contrary 
8 
notwilhstanding' 
9 
10 
(a) All revenues and assets of the 
University of Science and Technology of the 
11 
Philippines (USTP) used exclusively and solely for educational purposes or furtherance thereof 
12 
shall be exempt from all taxes and duties; 
13 
14 
(b) Gifts and donations of real and personal properties of all kinds shall be exempt from 
15 
donor's tax and the same shall be considered as allowable deductions from gross income of lhe 
16 
donor, in accordance with the provisions of the National Internal Revenue Code of 1997, as 
17 
amended: Provided, that the allowable deductions shall be equivalent to one hundred fifty 
18 
percent (150%) of the value of such donation. Valuation of non-monetary assistance shall be 
'19 
based on the acquisition cost of the property. Such valuation shall take into consideration the 
20 
depreciation value of the property in case said property has been used: 
-21 . 
22 
(c) Importation qf economic, technical, vocational, scientific, philosophical, historical and 
23 
cultural books, suppli~s and matarials duly certified by the Board, including scientific and 
24 
educational computer a'nd software equipment, shall be exempt from customs duties; 
2S 
26 
(d) The University shall only pay zero percent (0'%) value-added tax for all transactions 
27 
subject to this tax; and : 
28 
29 
30 
31 
32 
33 
34 
3S 
36 
37 
38 
39 
,40 
41 
, 
(e) All educational monetary awards shall be exempt from taxes. 
ARTICLE XVII 
APPROPRIATIONS 
Sec. 57. Annual Appropriations. The amount necessary to carry out the provisions of this Act 
shall be charged against the current year's appropriations of the Mindanao University of Science 
and Technology and the Misamis Oriental State College of Agriculture and Technology, except 
the sums needed to continue the operations of the existing high school. Thereafter, such sums 
as may be necessary for the continued operation and maintenance of USTP shall be included in 
the annual General appropriations Act (GAA). 
. 42 
Sec. 58. University Modernization Fund. In Addition to the regular appropriations and 
43 
increase for the University under the GAA, a University modernization program fund, hereinafter 
44 
referred to as the fund, shall be appropriated in the initial amount of Two (2) Billion Pesos 
45 
(PhP2,000,00O',O'OO.00)1 and Three (3) Hundred Million Pesos (PhP300,000,OOO.OO) per year for 
46 
. a period of five (5) ye~rs thereafter, to commence in the year after the' approval of this Act, 
47 
which shall be taken from the HEDF of the CHED and funding from DOST, respectively. The 
48 
fund shall be used for the construction of University Science and Technology Parks and olher 
49 
structures and facilities, as well as other organizational needs in the 300 has. Alubijid Campus 
50 
and the S& T Park located in Clave ria Campus. 
51 
52 
ARTICLE XVIII 
53 
TRANSITORY PROVISIONS 
.54 
55 
Sec. 59. Assets and Liabilities. All assets and liabilities of MUST and MOSCAT shall be 
56 
fransferred to USTP. 
57 
58 
Sec. 60. Transitory Provision. For purposes of smooth tranSition, the incumbent President of 
S9 
MUST shall serve a new first term as the President USTP and concurrent chancellor of the 
60 
USTP Cagayan de Oro campus while the incumbent President of the MOSCA T shall serve a 
61 
new first term as the first chancellor of the USTP Claveria campus. 
, 62 
.63 
Sec. 61. Academic Programs. All non-S&T academic programs shall be gradually phased out 
14 
.'; " 
" 
. ," 
~." 
" 
, 
'. 


1 
for a period of four (4) years to be replaced by S&T programs, as approved by the Board of 
2 
Regents of USTP. 
3 
4 
5 
6 
7 
8 
9 
10 
11 
12 
13 
14 
ARTICLE XIX 
FILING OF REPORT BY THE PRESIDENT OF USTP AND THE PREPARATION OF 
THE DEVELOPMENT PLAN OF THE UNIVERSITY 
Sec. 62. Filing of Repbrt by the President of USTP. On or before the flfteentll (15th) day of . 
. the second month after the opening of regular classes each year, the President of USTP 
through tile Office of the CHED Chairman or the CHED Commissioner serving as Chair of the 
BOR, shall file with the Office of the President of the Philippines and with the Senate and House 
of Representatives, through their respective heads, a detailed report on the progress, conditions 
and needs of USTP. 
15 
Sec. 63. Development Plan Management Audit, Organizational! Administrative/Academic 
16 
Structure. Within the period of one hundred twenty (120) days after the approval of this Act, 
17 
the University shall accomplish the following: 
18 
a. Submit a five (5) - year development plan, including its corresponding program 
19 
budget to the CHED for corresponding recommendation to the DBM; 
20 
b. 
Undergo a management audit in cooperation with the CHED; and 
21 
c. Accordingly 'set up its organizational, administrative, as well as academic structure, 
22 
including the appointment of the key officials of the University. 
23 
,24 
ARTICLE XX 
25 
SUPPLETORY PROVISION 
,26 
27 
Sec. 64. Suppletory Parity Clause. - For purposes oHhis Act, other applicable laws shall 
28 
have suppletory applidation. 
29 
·30 
ARTICLE XXI 
31 
SEPARABILITY CLAUSE 
32 
33 
Sec. 65. Separability Clause. - If for any reason, any part or provision of this law is declared 
34 
invalid or unconstitutional, the remaining parts or provisions not affected thereby shall remain In 
35 
full force and effect. 
36 
37 
ARTICLE XXII 
38 
REPEALING CLAUSE 
39 
40 
Sec. 66.Repealing Clause.- All laws, presidential decrees, executive orders, rules 
41 
and regulations contrary to or inconsistent with the provisions of this Act are hereby 
42 
repealed or modified accordingly 
43 
44 
45 
'46 
ARTICLE XXIII 
EFFECTIVITY CLAUSE 
47 
Sec. 67. Effectivity Clause. - This act shall take effect fifteen (15) days after its publication in 
'48 
. two (2) newspapers of general circulation in the Philippines. 
49 
50 
51 
52 
Approved. 
15 
, 
,~ 
',I