Governing Boards of State Universities PD 1437

Governing board policy-making powers

Section 2 requires the governing boards to exercise policy-making functions consistent with: (a) general policies, plans, and programs on education formulated by the National Board of Education and the Secretary of Education and Culture, and (b) general policies, plans, and programs on national and regional development issued by NEDA.
The Secretary of Education and Culture as Chairman must ensure that the general educational policies, plans, and programs are adopted and observed in all state colleges and universities.

Specific board powers and duties

Section 3 grants governing boards specific powers and duties in addition to the general powers under Section Thirteen of Act Numbered Fourteen Hundred Fifty-Nine (as amended), otherwise known as the Corporation Law, subject to Section 2.
Governing boards must enact rules and regulations for the government of the university or college that are not contrary to law and are necessary to carry out institutional purposes and functions.
Governing boards may receive and appropriate sums provided for the support of the university or college for the ends specified by law.
Governing boards may import duty-free essential commodities and materials for advanced educational or technological programs as an exception to existing laws if such commodities or materials are not available locally.
Governing boards may receive in trust legacies, gifts, and donations of real and personal property of all kinds, and must administer these for the benefit of the university or college or to aid students in line with donor directions; if donor directions are absent, the boards administer in their discretion.
Donated property under this trust mechanism is exempt from all taxes and is considered deductible items from the income tax of the donors.
Governing boards must approve curricula and rules of discipline drawn by the Administrative and Academic Councils.
Governing boards must confer degrees on successful graduation candidates, award honorary degrees for learning, public service, statesmanship, or eminence in any field of specialization, and may authorize presidents to award certificates for completion of non-degree programs.
Governing boards must confirm appointments of vice presidents, deans, directors, registrars, heads of departments, professors, and other officials and employees made by the president; they must fix compensation, hours of service, and other duties and conditions in accordance with existing laws; they may remove those officials and employees for cause after investigation and hearing.
Governing boards must establish chairs, provide fellowships for qualified faculty members, and scholarships to deserving students.
Governing boards must fix tuition fees and other necessary school charges they deem proper; all such fees and charges, including other incomes generated by the university or college, constitute a special trust fund for the exclusive use of the university or college despite any provision of existing laws to the contrary.
Governing boards must authorize construction or repair of buildings, machineries, equipment, and other facilities, and purchase of necessary supplies, materials, and equipment—provided funds come from the authorized appropriation of the university or college.

Quorum, presiding officer, service

Section 4 provides that quorum consists of a majority of all the members holding office at the time of the meeting.
Among those present, the meeting must include the Secretary of Education and Culture as Chairman, or the President who acts as presiding officer in the Secretary’s absence.
Section 4 requires that all processes against the university or college be served on the President of the university or college or his duly authorized representative.

Board membership compensation and expenses

Section 5 states that members of the governing boards shall not receive compensation.
Members are entitled to reimbursement for actual and necessary expenses incurred in attending meetings or other official functions authorized by the board.

University president appointment, term, powers

Section 6 provides that the head of the university or college is the President of the university or college.
The President must be qualified and is appointed for a term of six (6) years by the President of the Philippines upon recommendation of the Secretary of Education and Culture after consulting with the board.
The President’s six-year term is renewable for another term upon recommendation of the Secretary of Education and Culture after consulting the Board.
If the office becomes vacant due to death, absence, or resignation, the Secretary of Education and Culture designates an officer in charge pending appointment of the President.
The President’s powers and duties include those usually pertaining to the office of a university president in addition to powers specifically provided in the Decree.

Retirement benefits for incumbent presidents

Section 7 entitles the incumbent president of a chartered state college or university—whose term may be terminated under the Decree—to full retirement benefits if he has served the government for at least twenty (20) years.
If the years served are less than 20 years, he is entitled to one month pay for every year of service.

Administrative Council structure and role

Section 8 establishes an Administrative Council consisting of the President of the university or college as Chairman and the vice-president, deans, directors, and other officials of equal rank as members.
The Administrative Council’s duty is to implement policies governing administration, management, and development planning of the university or college subject to approval by the governing board.

Academic Council curricula, discipline, degrees

Section 9 establishes an Academic Council with the President as Chairman and all professors in the instructional staff as members.
The Academic Council has power to prescribe the curricula and rules of discipline, subject to approval of the board of Trustees/Regents.
The Academic Council fixes requirements for admission and for graduation and the conferring of degrees, subject to review of the Board of Regents.
The Academic Council recommends students to be recipients of degrees through the President or his duly authorized representative.
The Academic Council exercises disciplinary power over students through the President or duly authorized representative within the limits prescribed by the rules of discipline approved by the Board of Trustees/Regents.

Faculty appointment protections and religious limits

Section 10 exempts members of the faculty from any civil service examination or regulation as a requisite for appointment.
Section 10 prohibits applying any religious test and makes religious opinion or affiliation not a matter of inquiry in faculty appointments.
Section 10 prohibits any faculty member from teaching for or against any particular church or religious sect.

Student admission non-discrimination

Section 11 prohibits denying admission to the university or college on the basis of sex, nationality, religion, or political affiliation.

Treasury, auditing, and accounts

Section 12 makes the Treasurer of the Philippines the ex-officio treasurer of the university or college.
Section 12 requires that all accounts and expenses be audited by the Commission on Audit or its duly authorized representative.

Annual progress report to the Presidency

Section 13 requires governing boards to file, on or before the fifteenth day of the second month after the opening of regular classes each year, a detailed report of progress, conditions, and needs of the university or college.
The report must be filed with the office of the President of the Philippines through the Secretary of Education and Culture.

Implementation directive and effectivity

Section 14 directs the Secretary of Education and Culture to take steps necessary for immediate implementation of the Decree.
Section 16 provides that the Decree takes effect immediately.

Repeal of inconsistent enabling acts

Section 15 repeals, amends, or modifies accordingly enabling acts of the listed state institutions of higher learning or parts thereof to the extent contrary to or inconsistent with the Decree.
The repealed/amended enabling acts cover: Bicol University; Bukidnon State College; Bulacan College of Arts and Trades; Cagayan Valley College of Arts and Trades; Cagayan Valley Institute of Technology, Catanduanes State College; Cebu State College; Central Luzon Polytechnic College; Central Luzon State University; Central Luzon Teachers College; Central Mindanao University; Children’s Educational Foundation Village; Don Mariano Marcos Memorial State College; Don Severino Agricultural College; Isabela State College of Agriculture; Leyte Institute of Technology; Leyte State College; University of Southern Mindanao; Mindanao Institute of Technology; Mountain State Agricultural College; Naval Institute of Technology; Northern Luzon State College of Agriculture; Nueva Vizcaya State Institute of Technology; Pablo Borbon Memorial Institute of Technology; Palawan National Agricultural College; Palawan Teachers College; Palompon Institute of Technology; Philippine College of Arts and Trades; Pampanga Agricultural College; Polytechnic University; of the Philippines; Philippine Normal College; Southern Ilocos Polytechnic State College; Tarlac College of Agriculture; Tarlac College of Technology; University of Eastern Philippines; University of Northern Philippines; Visayas State Colleges of agriculture; West Visayas State College; Western Luzon Agricultural College and Zamboanga State College.
Section 15 provides that Philippine Air Force College of Aeronautics, Philippine Merchant Marine Academy, Pamantasan ng Lungsod ng Maynila, and other similarly situated institutions of higher learning are deemed attached to the Department of Education and Culture for purposes of policy and program coordination.

Issuance details

The decree is Presidential Decree No. 1437, titled “Defining the Composition and Powers of the Governing Boards, the Appointment and Term of Office of the President of Chartered State Universities and Colleges, and for Other Purposes.”
The decree is dated June 10, 1978 and signed by Ferdinand E. Marcos.
The issuance is ordered by the President to be part of the laws of the land.