Naval State University Conversion Act

Conversion and integration—what changes

The Naval Institute of Technology in the Municipality of Naval, Province of Biliran is converted into a state university to be known as the Naval State University (NSU).
The University integrates with the Biliran National Agricultural College in the Municipality of Biliran, both located in the Province of Biliran.
The main campus of the University shall be in the Municipality of Naval, Province of Biliran.

University mandate and educational coverage

The University primarily provides advanced education, higher technological, professional instruction and training in arts and sciences, education, agriculture, fishery, forestry, maritime education, information and communications technology, engineering, tourism, and other related fields of study.
The University undertakes research and extension services and provides progressive leadership in its areas of specialization.
The University offers undergraduate and graduate courses within its areas of specialization and according to its capabilities, and as the Board of Regents may deem necessary to carry out objectives.
No degree program may be offered without approval of the Commission on Higher Education before Board approval.
If the University has a College of Education, it may operate a reasonably-sized laboratory school.
The existing high school is transferred to the jurisdiction and supervision of the Department of Education (DepED) and may remain operating within the University campus until currently enrolled students complete high school education.

Governing structure and corporate administration

The University has the general powers of a corporation under Batas Pambansa Blg. 68, as amended, otherwise known as the Corporation Code of the Philippines.
Administration and corporate powers of the University are vested exclusively in the Board of Regents and the President of the University as authorized by the Board.
The governing board of the University is the Board of Regents.

Board of Regents composition and rules

The Board of Regents is composed of:
- The Chairperson of CHED as Chairperson;
- The President of the University as Vice Chairperson;
- The Chairperson of the Committee on Education, Arts and Culture of the Senate;
- The Chairperson of the Committee on Higher and Technical Education of the House of Representatives;
- The Regional Director of NEDA;
- The Regional Director of DOST;
- The President of the federation of faculty associations of the University;
- The President of the federation of student council of the University;
- The President of the federation of alumni association of the University; and
- Two (2) prominent citizens from the private sector.
The Board appoints the two (2) prominent private sector members from among at least five (5) qualified persons in the Province of Biliran whose nominations were submitted after publication for at least two (2) consecutive weeks, based on search committee recommendations by the University President, in consultation with the Chairperson of CHED and the other Board members.
No private sector representative may be appointed if related by consanguinity or affinity up to the third civil degree to any incumbent local or national official.
The term of office of the Presidents of the federation of faculty associations, student council, and alumni association is coterminous with their respective terms under their constitutions and bylaws.
The two (2) prominent citizens serve for a term of two (2) years from the date of appointment.
Board policies are promulgated and implemented in accordance with education-related constitutional state policies and CHED policies, standards and thrusts under Republic Act No. 7722.

Powers, duties, and governance mechanics

The Board promulgates rules and regulations necessary to carry out University purposes and functions.
The Board receives and appropriates sums provided for University support in the manner it determines in its discretion to carry out University purposes and functions.
The Board may import duty-free economic, technical and cultural books and/or publications upon CHED certification that such imports are for economic, technical, vocational, scientific, philosophical, historical or cultural purposes, consistent with the Tariff and Customs Code of the Philippines, as amended.
The Board may receive in trust legacies, gifts, and donations of real and personal properties for University benefits, and administer and dispose of them when necessary for the benefits of the University, subject to donor limitations, directions, and instructions.
Donations to the University are exempt from the donor’s tax and are considered allowable deductions from gross income for computing the donor’s income tax under Republic Act No. 8424 (the National Internal Revenue Code of 1997, as amended).
Donations may not be disposed of, transferred, or sold.
The Board fixes tuition fees and other necessary school charges (including matriculation fees, graduation fees, and laboratory fees) after consultations with involved sectors.
Tuition and other charges, including government subsidies and other University income, constitute special trust funds deposited in any authorized government depository bank, and all interest earned forms part of the special trust funds.
Income generated by the University from tuition fees and other charges and from the operation of auxiliary services and land grants is retained by the University and may be disbursed for instruction, research, extension, or other University programs/projects.
Fiduciary fees must be disbursed for the specific purposes for which collected.
If the University cannot pursue an appropriated and allocated project for reasons beyond its control, the Board may authorize use of the funds for any reasonable and necessary and urgent purpose in the Board’s discretion to attain objectives and goals.
The Board adopts and implements a socialized scheme of tuition and school fees for greater access to poor but deserving students.
The Board may authorize construction or repair of buildings, machinery, equipment, and other facilities; and may purchase or acquire real property, including necessary supplies, materials and equipment.
The Board appoints, upon recommendation of the President, vice presidents, deans, directors, heads of campuses, faculty members, and other officials and employees.
The Board fixes and adjusts salaries of faculty members and administrative officials and employees subject to the Revised Compensations and Position Classification System and other pertinent budget and compensation laws, and grants discretionary leaves of absence under regulations it promulgates; it removes for cause in accordance with due process.
The Board approves curricula, instructional programs, and rules of discipline drawn by the Administrative and Academic Councils.
The Board sets policies on admission and graduation of students.
The Board awards honorary degrees recognizing outstanding contribution in education, public service, arts, science and technology, agriculture, or any field of specialization within the University’s academic competence.
The Board authorizes the awarding of certificates of completion of nondegree and nontraditional courses.
The Board establishes and absorbs nonchartered tertiary institutions within the Province of Biliran as branches and centers in coordination with CHED, and in consultation with the Department of Budget and Management (DBM).
The Board offers programs or courses in such branches and centers to promote and carry out equal access to educational opportunities mandated by the Constitution.
The Board establishes research and extension centers to promote development of the University.
The Board establishes chairs and provides fellowships for qualified faculty members and scholarships to deserving students.
The Board delegates any of its powers and duties to the President and/or University officials to expedite administration.
The Board authorizes an external management audit of the University, financed by CHED, under rules and regulations of the Commission on Audit (COA), and institutes reforms including academic and structural changes based on audit results and recommendations.
The Board collaborates with other governing boards of state colleges and universities within the Province of Biliran or Region VIII, under supervision of CHED and in consultation with DBM, and works toward restructuring the University to become more efficient, relevant, productive and competitive.
The Board may enter into joint ventures with business and industry for profitable development and management of University economic assets, with proceeds used for University development and strengthening.
The Board develops consortia and other economic linkage forms with local government units, institutions and agencies (public and private, local and foreign) in furtherance of University purposes and objectives.
The Board develops academic arrangements for institutional capability building with appropriate local and foreign public and private institutions and agencies and appoints experts/specialists as consultants and part-time, visiting, or exchange professors, scholars, or researchers as the case may be.
The Board sets policies for participative decision-making and transparency within the University.
The Board privatizes, where most advantageous, management of nonacademic services such as health, food, building or grounds or property maintenance, and similar activities.
The Board may extend the term of the President beyond the retirement age but not beyond seventy (70) years, if performance is unanimously rated as outstanding based on Board guidelines, qualifications, and/or standards after unanimous recommendation by the search committee.

Board meetings and member compensation

The Board convenes regularly at least once every quarter.
The Chairperson may call up to two (2) special meetings when necessary upon three (3) days’ prior written notice.
Quorum consists of a majority of all members holding office at the time of the meeting.
The Chairperson of the Board or the President of the University must be present for quorum.
If the Chairperson of CHED is absent, a designated CHED Commissioner represents the Chairperson with all rights and responsibilities of a regular member.
During the meeting, the President of the University as Vice Chairperson serves as the Presiding Officer.
The Chairperson of CHED may designate a CHED Commissioner as the regular Chair of the Board, who then acts as the Presiding Officer.
If the Chairpersons of the Congressional Committees on Education cannot attend, they may designate representatives to attend with the same rights and responsibilities as regular members.
Board members receive no salary but are entitled to reimbursement for actual and necessary expenses incurred in attending meetings or in other authorized official business, subject to existing laws and regulations.

President, councils, and key university officers

The University is headed by a President who renders full-time service.
The Board appoints the President subject to its guidelines, qualifications and/or standards, upon recommendation of a duly constituted search committee.
To ensure smooth transition, the incumbent President of the Naval Institute of Technology serves as the first University President.
No person may be appointed as University President if related by consanguinity or affinity up to the third civil degree to any incumbent local or national official.
The Board constitutes a Search Committee for the Presidency (SCP) within six (6) months before expiration of the incumbent President’s term.
If the Office of the President becomes vacant due to death, compulsory retirement, resignation, removal for cause, or incapacity, the Board designates an Officer-in-Charge pending appointment of a new President.
In such vacancy, the successor or Officer-in-Charge serves only the unexpired portion of the term.
The President’s powers and duties include those usually pertaining to the office of the president of similar universities and those delegated by the Board.
The President’s salary is in accordance with the Revised Compensation and Position Classification System and comparable to that received by Presidents of similar educational institutions.
The President is assisted by Vice Presidents appointed by the Board upon recommendation of the President.

Campus directors, councils, and record officers

Campus Directors head University campuses and render full-time service.
Campus Directors are appointed by the Board upon recommendation of the search committee and the University President subject to Board guidelines, qualifications and/or standards.
Incumbent college administrators of extension campuses serve as Campus Directors of their respective campuses.
The Administrative Council consists of the President as Chairperson, Vice Presidents, deans, directors, and other officials of equal rank.
The Administrative Council reviews and recommends to the Board policies governing University administration, management, and development planning.
The Academic Council consists of the President (Chairperson) and all academic staff with rank not lower than assistant profesor.
The Academic Council reviews and recommends curricular offerings and rules of discipline for Board approval.
The Academic Council fixes requirements for admission, graduation, and conferment of degrees, subject to review and/or approval by the Board through the President of the University.
The Academic Council exercises disciplinary power over students and formulates academic policies and rules on discipline subject to Board approval.
The Board appoints a Secretary who serves both the Board and the University, keeps all Board records and proceedings, and provides notice of Board meetings to members.
The Treasurer of the Philippines is the ex officio Treasurer of the University.

Faculty, students, autonomy, and freedoms

Appointment of faculty members may not inquire into political beliefs, gender preference, cultural or community affiliation, ethnic origin, or religious opinion or affiliation.
Faculty appointments are subject to Board guidelines, qualifications, and/or standards.
No faculty member may teach for or against any particular church or religious sect.
The University provides a scholarship program and other affirmative action programs to assist poor but deserving students who qualify for admission.
No student is denied admission by reason of sex, religion, cultural or community affiliation, or ethnic origin.
The University enjoys academic freedom and institutional autonomy under paragraph 2, Section 5 of Article XIV of the Constitution of the Republic of the Philippines.

Personnel loan or transfer of equipment

Heads of bureaus and offices of the national government are authorized to loan or transfer apparatus, equipment, or supplies needed by the University upon request of the President.
Heads of bureaus and offices may detail employees for duty to the University when the head judges the apparatus, equipment, supplies, or services of such employees can be spared without serious detriment to the public service.
The detailed employee performs duties required by the President of the University, and the time served counts as part of regular service.

Assets, liabilities, land, and personnel security

All assets, real and personal, personnel and records, liabilities, and obligations of the Naval Institute of Technology and the Biliran National Agricultural College are transferred to the University.
Positions, rights, and security of tenure of faculty members and personnel employed under existing laws before conversion are respected.
Parcels of land belonging to the government and occupied by the Naval Institute of Technology and the Biliran National Agricultural College are declared property of the University and must be titled under the University’s name.
If the University ceases to exist or is abolished, or if the parcels are no longer needed by the University, the land reverts to the concerned LGUs.

Budget, planning, audits, monitoring, reporting

Initial implementation of the Act is funded by charging it against the current year’s appropriations of the Naval Institute of Technology and the Biliran National Agricultural College, except sums needed to continue operations of the existing high school/s.
Thereafter, sums for continued operation and maintenance of the Naval State University are included in the annual General Appropriations Act.
Within one hundred twenty (120) days after approval, the University must:
- Submit a five (5)-year development plan including its corresponding program budget to CHED for recommendation to DBM;
- Undergo a management audit in cooperation with CHED; and
- Set up its organizational, administrative, and academic structure, including appointment of key University officials.
CHED conducts regular monitoring and evaluation of continuing compliance with requirements for University status.
If CHED finds non-compliance, it submits an appropriate recommendation for revocation of University status to the Senate Committee on Education, Arts and Culture and the House Committee on Higher and Technical Education.
The Board files a detailed annual report with the Office of the President of the Philippines through the Chairperson of CHED and with both Houses of Congress on or before the fifteenth (15th) day of the second (2nd) month after opening of regular classes.

Charter integration, parity, implementing rules, and legal effects

Republic Act No. 8292, the Higher Education Modernization Act of 1997, forms an integral part of the Act and serves as part of the University’s governing charter.
All other powers, functions, privileges, responsibilities, and limitations to state universities and/or their officials under existing laws are deemed granted to or imposed upon the University and/or its officials when appropriate.
The Board, in consultation with CHED, formulates guidelines to implement all provisions of the Act fully.
If any part of the Act is declared invalid or unconstitutional, the remaining parts remain in full force and effect.
All laws, presidential decrees, executive orders, rules, and regulations contrary to or inconsistent with the Act are repealed or modified accordingly.