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TodayisThursday,November13,2014

RepublicofthePhilippines
CongressofthePhilippines
MetroManila
FourteenthCongress
FirstRegularSession

BegunandheldinMetroManila,onMonday,thetwentythirddayofJuly,twothousandseven.
RepublicActNo.9500April29,2008
ANACTTOSTRENGTHENTHEUNIVERSITYOFTHEPHILIPPINESASTHENATIONALUNIVERSITY
BeitenactedbytheSenateandHouseofRepresentativesofthePhilippinesinCongressassembled::
SECTION1.ShortTitle.ThisActshallbeknownasthe"UniversityofthePhilippinesCharterof2008."
SEC.2.DeclarationofPolicy.TheUniversityofthePhilippinesisherebydeclaredasthenationaluniversity.
TheStateshallpromote,foster,nurtureandprotecttherightofallcitizenstoaccessiblequalityeducation.Toward
thisend,itisthepolicyoftheStatetostrengthentheUniversityofthePhilippinesasthenationaluniversity.
SEC.3.PurposeoftheUniversity.Asthenationaluniversity,apublicandsecularinstitutionofhigherlearning,
andacommunityofscholarsdedicatedtothesearchfortruthandknowledgeaswellasthedevelopmentoffuture
leaders,theUniversityofthePhilippinesshallperformitsuniqueanddistinctiveleadershipinhighereducationand
development.TheUniversityshall:
(a) Lead in setting academic standards and initiating innovations in teaching, research and faculty
developmentinphilosophy,theartsandhumanities,thesocialsciences,professionsandengineering,natural
sciences, mathematics, and technology and maintain centers of excellence in such disciplines and
professions
(b)Serveasagraduateuniversitybyprovidingadvancedstudiesandspecializationforscholars,scientists,
writers, artist and professionals, specially those who serve on the faculty of state and private colleges and
universities
(c) Serve as a research university in various fields of expertise and specialization by conducting basic and
applied research and development, and promoting research in various colleges and universities, and
contributingtothedisseminationandapplicationofknowledge
(d)Leadasapublicserviceuniversitybyprovidingvariousformsofcommunity,public,andvolunteerservice,
as well as scholarly and technical assistance to the government, the private sector, and civil society while
maintainingitsstandardsofexcellence
(e)Protectandpromotetheprofessionalandeconomicrightsandwelfareofitsacademicandnonacademic
personnel
(f)Provideopportunitiesfortrainingandlearninginleadership,responsiblecitizenship,andthedevelopment
of democratic values, institutions and practice through academic and nonacademic programs, including
sportsandtheenhancementofnationalismandnationalidentity
(g)ServeasaregionalandglobaluniversityincooperationwithinternationalandscientiGcunions,networks
ofuniversities,scholarlyandprofessionalassociationsintheAsiaPacificregionandaroundtheworldand
(h) Provide democratic governance in the University based on collegiality, representation, accountability,
transparencyandactiveparticipationofitsconstituents,andpromotetheholdingofforaforstudents,faculty,
research,extensionandprofessionalstaff(REPS),staff,andalumnitodiscussnonacademicissuesaffecting
theUniversity.
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SEC.4.TheUniversitySystem.TheUniversityofthePhilippinesisauniversitysystemandshallbecomposedof
constituentuniversitiesestablishedsolelybyitsBoardofRegentsupontherecommendationofthePresidentofthe
University.TheUniversityofthePhilippinesSystemiscomposedofitsexistingconstituentuniversities,asfollows:
UniversityofthePhilippinesDilimanUniversityofthePhilippinesManilaUniversityofthePhilippinesLosBaos
UniversityofthePhilippinesVisayasUniversityofthePhilippinesMindanaoUniversityofthePhilippinesBaguio
UniversityofthePhilippinesOpenUniversityandthosethatmaybecreatedinthefuture.Itisreferredtointhislaw
asthe"NationalUniverity."
SEC. 5. Academic Freedom. The national university has the right and responsibility to exercise academic
freedom.
SEC. 6. AcademicExcellence. The national university has the responsibility to maintain and enhance its high
academicstandardsintheperformanceofitsfunctionsofinstruction,researchandextension,andpublicservice.
SEC. 7. Commitment to National Development. The national university shall harness the expertise of the
membersofitscommunityandotherindividualstoregularlystudythestateofthenationinrelationtoitsquestfor
nationaldevelopmentintheprimaryareasofpoliticsandeconomics,amongothers,identifykeyconcerns,formulate
responsive policies regarding these concerns, and give advice and recommendations to Congress and the
PresidentofthePhilippines.
The Congress of the Republic of the Philippines, the Supreme Court and other lower courts, other government
agencies and instrumentalities as well as any constitutional body may request the national university to conduct
researchorprovideadviceonanymatterinvolvingpublicpolicy.Thebudgetforsuchresearchorrequestforadvice
shallcomefromtheappropriationofthesepublicagencies.
SEC. 8. SocialResponsibility. The national university is committed to serve the Filipino nation and humanity.
Whileitcarriesouttheobligationtopursueuniversalprinciples,itmustrelateitsactivitiestotheneedsoftheFilipino
peopleandtheiraspirationsforsocialprogressandtransformation.Thenationaluniversitymayprovidevenuesfor
studentvolunteerism.
SEC.9.DemocraticAccess.Thenationaluniversityshalltakeaffirmativestepswhichmaytaketheformofan
alternativeandequitableadmissionsprocesstoenhancetheaccessofdisadvantagedstudents,suchasindigenous
peoples, poor and deserving students, including but not limited to valedictorians and salutatorians of public high
schools,andstudentsfromdepressedareas,toitsprogramsandservices.
Nostudentshallbedeniedadmissiontothenationaluniversitybyreasonsolelyofage,gender,nationality,religious
belief,economicstatus,ethnicity,physicaldisability,orpoliticalopinionoraffiliation.
ThenationaluniversityrecognizestheseparationofChurchandState.Itshallguaranteereligiousfreedomandshall
notdiscriminateonthebasisofreligion.
SEC. 10. Sports. The national university shall undertake and support comprehensive sports programs that
promote physical education, uphold excellence and encourage competitive participation in sports activities, instill
schoolidentityandsolidarity,cultivatepride,selfdisciplineandteamworkwhichserveasafoundationforfostering
activeparticipationinthenationaluniversity,aswellasinnationbuilding.
SEC.11.InstitutionalAutonomyastheNationalUniversity.Toprovidegreaterflexibility,itshallbetreatedina
mannerconsistentwithitsinstitutionalrequirementsasthenationaluniversitybytheservicewideagenciesinthe
exercise of their respective jurisdiction. Taking into account national goals and priorities, it shall exclusively
determineitsteachingresearchandextensionthrusts,plans,policies,programsandstandard,andonthebasisof
suchdetermination,thenationaluniversityshallrecommenditsannualbudgettothePresidentoftheRepublicof
thePhilippinesandCongress.
SEC.12.TheBoardofRegents.
(1) Composition The Governance of the national university is vested in a board of regents known as the
":Board of Regents of the University of the Philippines System," hereinafter referred to as the ":Board,":
composedof:
(a)TheChairpersonoftheCommissiononHigherEducationasChairperson
(b)ThePresidentoftheUniversityofthePhilippinesSystemasCoChairperson
(c)TheChairpersonoftheSenateCommitteeonEducation,ArtsandCulture
(d)TheChairpersonoftheHouseCommitteeonHigherandTechnicalEducation
(e) The President of the U.P. Alumni Association, to serve as Alumni Regent during his or her
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incumbencyinthatposition
(f)OneFacultyRegentrepresentingallteachingpersonnel,choseninaccordancewiththerulesand
qualificationsetbytheconstituentuniversitycouncilstoserveforatermoftwo(2)years
(g)OneStudentRegent,toserveforatermofone(1)year,chosenbythestudentsfromtheirranksin
accordancewithrulesandqualificationsapprovedinareferendumbythestudents
(h)OneStaffRegentrepresentingthefulltimepermanentresearch,extension,andprofessionalstaff
(REPS) and administrative personnel, and chosen by them from their ranks in accordance with the
rulesandqualificationssetbytheirdulyrecognizedorganizations,toserveforatermoftwo(2)years
and
(i) Three other Regents who have distinguished themselves in their professions or fields of
specialization,tobeappointedbythePresidentofthePhilippines,consideringtherecommendationof
theBoard.Atleasttwo(2)oftheseRegentsshouldbealumni.AlltheseRegentsshalleachservefora
termoftwo(2)years:Provided,ThattheRegentsholdingofficeasmembersoftheBoardatthetimeof
theeffectivityofthisActshallcontinuetoserveuntiltheexpirationoftheirappointmentsasprovidedin
ExecutiveOrderNo.204A,issuedbythePresidentofthePhilippinesonJuly15,1987.
(2)VacancyIncaseofvacancyintheBoard,exceptforthePresidentoftheUniversity,suchvacancyshall
be filled in the same manner as provided for the predecessor, and such appointee shall hold office for the
unexpired portion of the term. In case of a sectoral Regent, membership in the Board ceases upon
suspension,separation,orrecall.
(3) Compensation Members of the Board shall serve without compensation other than reimbursement for
actual and necessary expenses incurred in attendance to meetings of the Board or other official business
authorizedbytheBoard.
(4)MeetingsQuorumTheBoardshallconveneregularly.TheChairpersonsoftheBoardmaycallaspecial
meetingwhenevernecessary:Provided,Thatmembersarenotifiedinwritingatleastten(10)workingdays
priortothemeeting:Provided,further,Thatthenoticeshallcontainabriefdescriptionoftheagendaitemsto
bediscussed.
AmajorityofallmembersoftheBoardholdingofficeatthetimethemeetingiscalledshallconstituteaquorumfor
Boardmeetings.
InnocaseshallanyandallmembersoftheBoardappointrepresentativestoactontheirbehalf:Provided,Thatthe
exofficio members of the Board coming from Congress may participate and vote through teleconferencing or
equivalentverifiablemeansofcommunication.
SEC. 13. Powers and Duties of the Board of Regents. The administration of the national university and the
exerciseofitscorporatepowersarevestedintheBoardofRegents.
TheBoardshallexercisethefollowingspecificpowersandduties:
(a) To define in general terms the thrusts of the national university and adopt broad policy guidelines to
ensuretheirimplementation
(b)Topreservetheintegrityofthenationaluniversity
(c) To approve the institution, merger or abolition of academic programs, upon recommendation of the
UniversityCounciloftheconstituentuniversityconcerned,throughthePresidentoftheUniversity
(d) To approve the graduation of students and grant of honors, as recommended by their respective
UniversityCouncilsthroughthePresidentoftheUniversity
(e) To confer honorary degrees upon persons in recognition of learning, statesmanship, or eminence in
literature, science, or art, upon recommendation of a committee created by the President of the University:
Provided, That such degrees shall not be conferred in consideration of any payment, gift or other valuable
consideration
(f)ToapprovetherulesonstudentdisciplinerecommendedbytheUniversityCouncilsthroughthePresident
oftheUniversity,withtheBoardretainingthepowertoreviewandpassfinaljudgmentonstudentdisciplinary
cases
(g)Tocreate,organize,reorganize,mergeorabolishconstituentuniversities,colleges,institutes,andother
academicandadministrativeunitsofthenationaluniversity
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(h)Toestablishprofessorialchairawards
(i)Toprovidefellowships,scholarshipsandgrants,includingathleticgrantsandtoawardthesametofaculty,
staffandstudentshavingspecialevidenceofmerit,especiallythosewhoarepooranddeservingindividuals
(j)ToelectthePresidentoftheUniversityforasingletermofsix(6)yearsfollowingaprocessofdemocratic
consultationwiththeuniversitycommunitybasedonstandardsandguidelinessetbytheBoard.Intheevent
ofavacancy,theBoardshallelectapresidentwhoshallserveafullterm.AChancellorchosenbytheBoard
may act as OfficerinCharge of the national university when the search process is in progress. In no case
shall the search and election of the next President be longer than ninety (90) calendar days from the date
whenthevacancyoccurs
(k) To appoint faculty members and other officials and employees, to draw up a position classification and
compensation plan for its faculty and staff, and, any law to the contrary notwithstanding, to fix and adjust
salariesandbenefitsofthefacultymembersandotheremployees:Provided,Thatsalariesandotherbenefits
of the faculty shall be equivalent to those being received by their counterparts in the private sector to
determinethehoursofserviceoffacultyandstaff,andsuchothertermsandconditionsofemploymentasit
may deem proper to grant leave of absence under such regulations as it may promulgate, any other
provisionsoflawtothecontrarynotwithstandingandtoremovethemforcauseasprovidedbylawafterdue
investigationandproperhearing
(l) To extend, with their consent, the tenure of faculty members of the national university beyond the
compulsoryretirementage,anyotherprovisionoflawtothecontrarynotwithstanding,onrecommendationof
theunitsuponendorsementofthePresidentofthenationaluniversity,whenevertheirservicesareespecially
needed:Provided,however,Thatnoextensionoftenureshallbemadebeyondtheageofseventy(70)
(m) To fix the tuition fees and other necessary school charges, as the Board may deem proper to impose,
after due and comprehensive consultation with the students concerned. Such fees and charges, including
governmentsupportandotherincomegeneratedbythenationaluniversity,shallconstitutespecialtrustfunds
and shall be deposited in an authorized government depository bank. Any and all interest that shall accrue
therefromshallformpartofthesamefundsfortheuseofthenationaluniversity.
Notwithstandinganyprovisionoflawtothecontrary,allincomesgeneratedbythenationaluniversityorbyits
subsidiariesshall,upontheircollection,beretainedbythenationaluniversityanddisbursedatthediscretion
oftheBoardfortheprofessionalgrowthanddevelopment,health,welfare,andotherbenefitsofthestudents,
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
necessaryfortheattainmentofitspurposesunderitsapprovedprogramofexpenditures.
If the national 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
authorizetheuseofsaidfundforanyreasonablepurposeforwhichitdeemsnecessaryandurgentforthe
attainment of the objectives of the national university: Provided, That funds collected from students for a
specificpurposeshallnotbereprogrammedtootherexpenditures
(n)Toreceiveandappropriateallsumsasmaybeprovidedbylawforthesupportofthenationaluniversityto
theendsspecifiedbylaw,andallothersumsinthemanneritmay,initsdiscretion,determinetocarryoutthe
purposesandfunctionsofthenationaluniversity
(o) To authorize the construction, maintenance or repair of its buddings, machinery, equipment and other
facilities, and the purchase and acquisition of real and personal properties, including necessary supplies,
materialsandequipment
(p)Toreceiveintrustlegacies,giftsanddonationsofrealandpersonalpropertyofallkindsandtoadminister
anddisposethesamewhennecessaryforthebenefitofthenationaluniversityandsubjecttotheinstructions
ofthedonor,ifany
(q)Notwithstandinganyprovisionoflawtothecontrary,toauthorizeitsfacultyandstafftotravelabroadto
study, deliver papers, attend conferences and disseminate research: Provided, That the fellowship,
scholarshiporgrantisauthorizedbytheBoard:Provided,finally,Thatresearchandotheractivitiesfundedby
the national university shall likewise undertake research in fields or topics that have promising commercial
applications,andthatthefacultyandstaffinvolvedinsaidresearchbeallowedtoparticipateinitsfinancialor
economicbenefits
(r)ToexercisethegeneralpowerssetoutintheCorporationCode
(s)TodelegateanyofitspowerstothePresidentoftheUniversityorotherofficialsorofficersasitmaydeem
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necessary
(t)Toprescriberulesforitsowngovernmentandthedisciplineofthefacultyandotherpersonnelandtoenact
forthegovernmentofthenationaluniversitysuchgeneralpolicies,rulesandregulations,notcontrarytolaw,
asareconsistentwithitspurposesand
(u)ToexercisesuchpowersasmaybeproperandnecessarytocarryouttheobjectivesofthisAct.
SEC.14.ThePresidentoftheUniversity.ThePresidentoftheUniversityisthechiefacademicofficer,headof
theuniversityfacultyandthechiefexecutiveofficeroftheUniversity.ThePresidentoftheUniversityshallexercise
thepowersspecificallyprovidedforinthisAct,thosedeterminedbytheBoard,thosewhichpertaintotheofficeof
thepresidentofauniversity,andthosewhicharerelatedornecessarytoitsfunctions.TheBoardshalldetermine
thecompensationofthePresidentoftheUniversity.
ThePresidentoftheUniversityshallbeappointedbytheBoardandshallserveforasingletermofsix(6)years.
SEC. 15. The Secretary of the University and of the Board of Regents. There shall be a Secretary of the
UniversityappointedbytheBoard,whoshallalsobetheSecretaryoftheBoard,andwhoshallkeepsuchrecords,
oftheUniversityasmaybedesignatedbytheBoard.
SEC.16.TheUniversityCouncil.ThereshallbeineachconstituentuniversityaUniversityCouncilconsistingof
the Chancellor as Chairperson, and all faculty members in the constituent university holding the rank of assistant
professorandhigherasmembers.
SEC.17.PowersoftheUniversityCouncil.TheUniversityCouncilshallbethehighestacademicbodyofeach
constituentuniversityandshallexercisethefollowingpowers:
(a)Fixtherequirementsforadmissiontoanycollegeorunit,graduation,andthegrantofhonorssubjectto
theminimumsystemwiderequirements
(b)Prescribetheacademicprogramsincludingtheirinstitution,revision,abolitionandmerger,subjecttothe
approvaloftheBoard
(c)RecommendtotheBoardthegraduationofstudentsandthegrantofhonors
(d) Exercise disciplinary power over the students, through the Chancellors or their appropriate committees,
subjecttoreviewbythePresidentoftheUniversityaccordingtothelimitsprescribedbysystemwideruleson
studentdiscipline
(e)Undertaketheperiodicreviewofacademiccourses,programs,standards,thrustsandpoliciesand
(f)AdoptinternalrulesofprocedureconsistentwiththeprovisionsofthisAct.
SEC. 18. The Chancellor of the Constituent University. The Administration of each constituent university is
vestedintheChancellorinsofarasauthorizedbytheBoardandthePresidentoftheUniversity.TheChancellorof
theconstituentuniversityshallbeelectedbytheBoarduponnominationofthePresidentoftheUniversity,following
aprocessofconsultationwiththeconstituentsoftheconstituentuniversitybasedonstandardsandguidelinesset
by the Board. The Chancellor shall report to the President of the University, and shall perform the duties and
functions elsewhere stated in this Act, and all the usual, necessary and related functions of the Office of the
Chancellor, subject to the policies and rules prescribed by the Board. The Board shall determine the term and
compensationoftheChancellor.IfaChancellorfailstocompletehis/herterm,thePresidentshallappointanacting
Chancellorwhileasearchprocessisinprogress.InnocaseshallthesearchandelectionofthenextChancellorbe
longerthansixty(60)calendardaysfromthedatewhenthevacancyoccurs.
SEC.19.TheFaculty.Theteachingstaffofeachcollegeshallconstituteitsfaculty.TheCollegeFacultyshallbe
presidedoverbyaDean.TheDeanshallbeelectedbytheBoarduponnominationofthePresidentoftheUniversity
and recommendation of the Chancellor of the constituent university, following a process of consultation with the
constituentsofthecollegebasedonstandardsandguidelinessetbytheBoard.
IfaDeanfailstocompletehis/herterm,theChancellorshallappointanactingDeanwhileasearchprocessisin
progress.InnocaseshallthesearchandelectionofthenextDeanbelongerthansixty(60)calendardaysfromthe
datewhenthevacancyoccurs.
SEC. 20. Appointment Requisites and Practice of Profession. Faculty members, as well as research,
extension and professional staff (REPS) of the national 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.Intheappointmentoffacultymembers,noreligioustestshallbeapplied,norshallthereligiousorpolitical
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opinionsoraffiliationsofthefacultymembersofthenationaluniversitybemadesubjectofexaminationorinquiry.
SEC.21.StudentAffairs.(a)Thereshallbeestablishedinthenationaluniversitythefollowingstudentcouncils:
for every college and degreegranting institute, a college or institute student council and for every constituent
university,auniversitystudentcouncilandfortheUniversitySystem,ageneralassemblyofallstudentcouncils.
The student council shall be composed of elected students of a definite academic unit of the national university.
Eachmemberofthestudentcouncilshallserveforatermofone(1)year,withoutprejudicetoreelection.
The student council shall serve as the primary student body that shall advance the interests, welfare, and
aspirations of the students of the national university. It shall have the power to adopt internal rules of procedure
consistentwiththeprovisionsofthisAct.
(b) Subject to due and comprehensive consultation with the students, there shall be a student publication
established in every constituent unit and college to be funded by student fees. Freedom of expression and
autonomyinallmattersofeditorialandfiscalpolicyshallbeguaranteedespeciallyintheselectionofitseditorsand
staff.
SEC.22.LandGrantsandOtherRealPropertiesoftheUniversity.
(a) The State shall support the University of the Philippines System as the national 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
developmentofalllandgrantsandrealpropertiesshallbeusedtofurthertheendofthenationaluniversity,asmay
bedecidedbytheboard
(b) Such parcels of land ceded by law, decree or presidential issuance to the University of the Philippines are
herebydeclaredtobereservedforthepurposesintended.Theabsoluteownershipofthenationaluniversityover
theselandholdings,includingthosecoveredbyoriginalandtransfercertificatesoftitleinthenameoftheUniversity
ofthePhilippinesandtheirfuturederivatives,isherebyconfirmed.Wheretheissuanceofpropercertificatesoftitle
isyetpendingfortheselandholdings,theappropriategovernmentofficeshallexpeditetheissuancethereofwithin
six months from the date of effectivity of this Act: Provided, That all registration requirements necessary for the
issuanceofthesaidtitleshavebeensubmittedandcompliedwith
(c) The Board may plan, design, approve and/or cause the implementation of land leases: Provided, That such
mechanismsandarrangementsshallsustainandprotecttheenvironmentinaccordancewithlaw,andbeexclusive
of the academic core zone of the campuses of the University of the Philippines: Provided, further, That such
mechanismsandarrangementsshallnotconflictwiththeacademicmissionofthenationaluniversity
(d)TheBoardmayallowtheuseoftheincomecomingfromrealpropertiesofthenationaluniversityassecurityfor
transactionstogenerateadditionalrevenueswhenneededforeducationalpurposes
(e)TheBoardmayapprovetheimplementationofjointventures:Provided,Thatintheeventrealpropertiesofthe
nationaluniversityareinvolved,onlytheincomederivedbytheUniversityfromtheuseoftherealpropertiesshall
be the subject of its participation or obligation in the joint ventures: Provided, further, That no joint venture shall
resultinthealienationoftherealpropertiesofthenationaluniversityand
(f) Any plan to generate revenues and other sources from land grants and other real properties entrusted to the
nationaluniversityshallbeconsistentwiththeacademicmissionandorientationofthenationaluniversityaswellas
protect it from undue influence and control of commercial interests: Provided, That such programs, projects or
mechanismsshallbeapprovedbytheBoardsubjecttoatransparentanddemocraticprocessofconsultatimwith
theconstituentsofthenationaluniversity:Provided,further,Thatfundsgeneratedfromsuchprograms,projectsor
mechanismsshallnotbemeanttoreplace,inpartorinwhole,theannualappropriationsprovidedbythenational
governmenttothenationaluniversity.
SEC. 23. Safeguards on Assets Disposition. The preservation of the value of the assets of the national
universityshallbeofprimordialconsideration.
Thesaleofanyexistingrealpropertyofthenationaluniversityshallbeprohibited:Provided, That the Board may
alienaterealpropertydonatedaftertheeffectivityofthisActifthetermsofthedonationspecificallyallowit.
NotwithstandingtheprovisionofthisActoranyotherlawtothecontrary,theleaseofmorethanfive(5)yearsofthe
assets of the national university and any transaction referred to in Section 22 shall be subject to the following
conditionsandprocedures:
(a) The transactions shall be discussed with the members of the Board, in any of its formally convened
regularorspecialmeeting,atleastone(1)monthbeforeadecisionistobemade
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(b)Thetransactionsshallbebasedonamultiyearcomprehensivedevelopmentplan,craftedanddeveloped
by qualified urban planning professionals having at least five (5) years experience, with prior consultations
withandconcurrenceofthirdpartyexpertsanddulyapprovedbyamajorityvoteofallthemembersofthe
Board
(c) The transactions shall be subject to competitive and public bidding as provided under Republic Act No.
9184,otherwiseknownasthe"GovernmentProcurementReformAct"
(d) In the case of two (2) failed biddings and negotiated transactions, if undertaken, the Board, when
consideringtheapprovalofanysuchtransaction,shallsecureafairnessopinionreportfromanindependent
thirdpartybody.Thisbodyshallhavefive(5)members,three(3)ofwhichshallbenominatedbytheBankers
AssociationofthePhilippines(BAP),InvestmentHousesAssociationofthePhilippines(IHAP),TrustOfficers
AssociationofthePhilippines,ortheFinancialExecutiveInstituteofthePhilippines(FINEX).Themembers
shallbeentitledtoareasonableperdiemastheBoardmayspecify.
Thefairnessopinionreportshallcontainastatementexpressingtheopinionofthebodyastothefairnessto
thenationaluniversityofthetermsoftheproposedtransaction,particularlyitsfinancialterms.Thereportshall
include,but notlimited to,areviewand analysisofthe proposedtransaction, financial statements, industry
information, economic conditions assumptions using management projections and the assumptions used
thereinandacomparisonofsimilartransactions:Provided,ThatiftheBoarddifferswiththefairnessopinion
report they shall justify their decision in writing and make this available to the community of the national
university.
This provision shall not apply to leases granted to faculty and staff as part of their benefit and those for
academicpurposesand
(e)IfthecontractortransactioninvolvesanamountmorethanFiftyMillionPesos(P50,000,000.00),itshall
beapprovedbythreefourths(3/4)ofallthemembersoftheBoard:Provided,Thatthesplittingofcontracts,
whichisbybreakingupacontractintoomallerquantitiesoramountsordividiizgcontractimplementationinto
artificial or arbitrary phases or subcontracts for the purpose of circumventing this provision, shall not be
allowed.
SEC. 24. Managenzent of Funds. (a) There shall be an independent trust committee to be composed of the
PresidentoftheUniversity,asChairperson,one(1)representativeeachnominatedbytheBankersAssociationof
thePhilippines(BAP),theInvestmentHousesAssociationofthePhilippines(IHAP),theTrustOfficersAssociation
ofthePhilippines(TOAP)andtheFinancialExecutiveInstituteofthePhilippines(FINEX).Themembersshallbe
entitledtoareasonableperdiemastheBoardmayspecify.(b)Theindependenttrustcommitteeshallrecommend
to the Board five (5) universal banks selected on a prudent basis which trust departments shall manage the
corporate and other funds through trust agreements of the national university on a non directed basis: Provided,
Thatanysuchagreementshallbeforaperiodofnotmorethantwo(2)years.(c)Theindependenttrustcommittee
shall provide the Board with direction on appropriate investment objectives and permissible investments with the
viewtopreservingthevalueofthefundswhileallowingtheUniversitytoearnareasonablereturnthereon.
SEC.25.TaxExemptions.Theprovisionsofanygeneralorspeciallawtothecontrarynotwithstanding:
(a)AllrevenuesandassetsoftheUniversityofthePhilippinesusedforeducationalpurposesorinsupport
thereofshallbeexemptfromalltaxesandduties
(b)Giftsanddonationsofrealandpersonalpropertiesofallkindsshallbeexemptfromthedonor'staxand
thesameshallbeconsideredasallowabledeductionsfromthegrossincomeofthedonor,inaccordancewith
the provisions of the National Internal Revenue Code of 1997, as amended: Provided, That the allowable
deductions shall be equivalent to 150 percent 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
considerationthedepreciatedvalueofpropertyincasesaidpropertyhasbeenused
(c) Importation of economic, technical, vocational, scientific, philosophical, historical and cultural books,
suppliesandmaterialsdulycertifiedbytheBoard,includingscientificandeducationalcomputerandsoftware
equipment,shallbeexemptfromcustomsduties
(d)TheUniversityshallonlypay0%valueaddedtaxforalltransactionssubjecttothistaxand
(e)Allacademicawardsshallbeexemptfromtaxes.
SEC.26.ReportorialRequirementsandAuditingofAccounts.Thenationaluniversityshallsubmitanannual
reporttoCongresscontainingthefinancialstatements,statementofassetsandliabilities,actualprojectedincome
fromtuitionfeesandotherrevenuesources,contractsandinvestmententeredintopursuanttoSection22(c)hereof
and programs of expenditure. All accounts and disbursements of the national university shall be audited by the
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R.A. 9500

CommissiononAudit.
SEC.27.RulesofConstruction.Nostatutoryorotherissuancesshalldiminishthepowers,rights,privilegesand
benefits accorded to the national university under this Act or enjoyed at present, by it under other issuances not
otherwise modified or repealed under this Act, unless subsequent legislation expressly provides for their repeal,
amendmentormodification.AnycaseofdoubtintheinterpretationofanyoftheprovisionsofthisChartershallbe
resolvedinfavoroftheacademicfreedomandfiscalautonomyoftheUniversityofthePhilippines.
SEC.28.Appropriations.TheamountneededtocarryouttheimplementationofthisActshallbechargedagainst
thelumpsumappropriationofthecurrentfiscalyearandotherinternalfundsofthenationaluniversity.Thereafter,
suchlumpsumrepresentingtheresponsibilityofthenationalgovernmentforthecontinuedgrowth,operatianand
maintenanceofthenationaluniversityshallbeincludedintheannualGeneralAppropriationsAct(GAA).
ThenationaluniversitymayuseunexpendedbalancesinanyappropriationforpurposesthattheBoarddetermines.
InadditiontotheregularappropriationsandincreasesfortheuniversityundertheannualGAA,acentennialfund
shallbeappropriatedintheamountofOneHundredMillionPesos(P100,000,000.00)peryearforaperiodoffive
years,whichshalllikewisebeincludedintheannualGAA.
SEC.29.SeparabilityClause.Shouldanyprovisionhereinbedeclaredunconstitutional,thesameshallnotaffect
thevalidityoftheotherprovisionsofthisAct.
SEC.30.RepealingClause..ActNo.1870,asamended,andalllaws,decrees,orders,rules,andregulationsor
otherissuancesorpartsinconsistentwiththeprovisionsofthisActareherebyrepealedormodifiedaccordingly.
SEC.31.Effectivity.ThisActshalltakeeffectfifteen(15)daysafteritspublicationintheOfficialGazetteorinany
newspaperofgeneralcirculationinthePhilippines.
Approved,
(Sgd.)PROSPEROC.NOGRALES
SpeakeroftheHouseof
Representatives

(Sgd.)MANNYVILLAR
PresidentoftheSenate

ThisActwhichisconsolidationofSenateBillNo.1964andHouseBillNo.2845wasfinallypassedbytheSenate
andtheHouseofRepresentativesonMarch5,2008andMarch4,2008respectively.
(Sgd.)MARILYNB.BARUAYAP
SecretaryGeneral
HouseofRepresenatives

(Sgd.)EMMALIRIOREYES
SecretaryofSenate

Approved:April29,2008
(Sgd.)GLORIAMACAPAGALARROYO
PresidentofthePhilippines
TheLawphilProjectArellanoLawFoundation

http://www.lawphil.net/statutes/repacts/ra2008/ra_9500_2008.html

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