Conversion of Mindanao Polytechnic State College into Mindanao University of Science and Technology

Conversion into Mindanao University of Science and Technology

The Mindanao Polytechnic State College in Cagayan de Oro City, Province of Misamis Oriental is converted into a state university known as the Mindanao University of Science and Technology (MUST) (Section 1).
The University integrates its specified satellite campuses in Jasaan, Misamis Oriental; Alubijid, Misamis Oriental; Panaon, Misamis Occidental; and Oroquita City (Section 1).
The University’s main campus is in Cagayan de Oro City (Section 1).
The University carries out its mandated functions through its corporate governance and administration under this Act (Sections 2, 4, and 5).

Mandate, curricular scope, and high school transfer

The University primarily provides advanced education, higher technological and professional instruction, and advanced instruction in mathematics, science, technology, engineering, and advanced research and extension work in human resource development for global competitiveness (Section 2).
The University offers undergraduate and graduate courses in mathematics, science and technology, and engineering (Section 3).
The existing high school is transferred to the jurisdiction and supervision of the Department of Education (DepEd) (Section 3).
The existing high school may remain and operate within the University campus until the currently enrolled students complete high school (Section 3).

Corporate governance: Board and President

The University has the general powers of a corporation under Batas Pambansa Blg. 68, as amended, and its corporate powers are vested exclusively in the Board of Regents and the President of the University (Section 4).
The governing board is the Board of Regents (Section 5).
The Board’s composition includes:
- the Chairperson of the Commission on Higher Education (CHED) as Chairperson;
- the President of the University as Vice Chairperson;
- the Chairperson of the Committee on Education, Arts and Culture of the Senate as member;
- the Chairperson of the Committee on Higher and Technical Education of the House of Representatives as member;
- the Regional Director of NEDA as member;
- the Regional Director of DOST as member;
- the President of the federation of faculty associations of the University as member;
- the President of the federation of student councils of the University as member;
- the President of the federation of alumni associations of the University as member; and
- two (2) prominent citizens from the private sector as members (Section 5).
The Board appoints the two (2) prominent citizens from a list of at least five (5) qualified persons in Misamis Oriental and Cagayan de Oro, as recommended by a search committee constituted by the University President, in consultation with the CHED Chairperson and other Board members; appointment is based on normal standards and qualifications (Section 5).
The private-sector members serve a term of two (2) years from date of appointment (Section 5).
The terms of officers representing faculty, students, and alumni are co-terminous with their respective terms under their constitutions and bylaws (Section 5).

Board powers, policies, and institutional operations

The Board promulgates and implements policies aligned with declared State policies on education and pertinent constitutional provisions, and it applies CHED policies, standards, and thrusts under Republic Act No. 7722 (Section 6).
The Board promulgates rules and regulations necessary to carry out University purposes and functions, as long as they are not contrary to law (Section 7).
The Board receives and appropriates all sums provided for the University’s support in the manner it determines (Section 7).
The Board may import duty-free economic, technical, and cultural books/publications upon CHED certification that the import is for economic, technical, vocational, scientific, philosophical, historical, or cultural purposes, consistent with the Tariff and Customs Code of the Philippines, as amended (Section 7).
The Board may receive in trust legacies, gifts, and donations of real and personal properties and administer/dispose of them when necessary for University benefit, subject to the donor’s directions or limitations, and subject to tax and income-tax rules stated in the Act (Section 7).
Donations to the University are exempt from donor’s tax and treated as allowable deductions from gross income of the donor under the National Internal Revenue Code of 1997, as amended (Section 7).
Donated properties received for trust may not be disposed of, transferred, or sold (Section 7).
The Board fixes tuition fees and other necessary school charges (including matriculation fees, graduation fees, and laboratory fees) after due consultations with involved sectors (Section 7).
Fees and charges, including government subsidies and other income generated by the University, constitute special trust funds deposited in an authorized government depository bank, and the interests form part of the same funds for University use (Section 7).
Income generated by the University from tuition fees and other charges, and from operation of auxiliary services and land grants, is retained by the University and may be disbursed by the Board for instruction, research, extension, or other University programs/projects (Section 7).
Fiduciary fees must be disbursed only for the specific purposes for which collected (Section 7).
If the University cannot pursue an appropriated project for reasons beyond its control, the Board may authorize use of the funds for any reasonable, necessary, and urgent purpose to attain objectives and goals (Section 7).
The Board adopts a socialized scheme of tuition and other school fees for greater access by poor but deserving students (Section 7).
The Board authorizes construction or repair of University buildings, machinery, equipment, and other facilities, and the purchase/acquisition of real property and necessary supplies, materials, and equipment (Section 7).
The Board appoints, upon recommendation of the President, vice presidents, deans, directors, heads of campuses, faculty members, and other University officials and employees (Section 7).
The Board fixes and adjusts salaries of faculty and administrative officials and employees subject to the Revised Compensation and Position Classification System and other pertinent compensation laws governing hours of service and other duties/conditions (Section 7).
The Board may grant leaves of absence under regulations it promulgates; existing laws do not restrict this authority (Section 7).
The Board may remove appointees for cause in accordance with due process (Section 7).
The Board approves curricula, instructional programs, and rules of discipline prepared by the Administrative and Academic Councils (Section 7).
The Board sets policies on admission and graduation of students (Section 7).
The Board awards honorary degrees to persons for outstanding contributions in specified fields and may authorize certificates of completion of nondegree and nontraditional courses (Section 7).
The Board establishes and absorbs nonchartered tertiary institutions within Misamis Oriental and Misamis Occidental as branches and centers in coordination with CHED and in consultation with the Department of Budget and Management (DBM), and offers programs/courses to promote equal access to educational opportunities (Section 7).
The Board establishes research and extension centers where beneficial to University development (Section 7).
The Board establishes professorial chairs, and it provides fellowships for qualified faculty and scholarships for deserving students (Section 7).
The Board may delegate any powers and duties under the Act to the President and/or other officials to expedite administration (Section 7).
The Board authorizes an external management audit financed by CHED, subject to Commission on Audit rules and regulations, and it institutes reforms based on audit results and recommendations (Section 7).
The Board may collaborate with governing boards of state colleges and universities within Misamis Oriental, Misamis Occidental, or Region 10, under CHED supervision and in consultation with DBM, toward restructuring for greater efficiency, relevance, productivity, and competitiveness (Section 7).
The Board may enter into joint-ventures with business and industry for profitable development and management of economic assets of the University, with proceeds used for University development and strengthening (Section 7).
The Board develops consortia and other economic forms of linkages with local government units, institutions, and agencies, public and private, local and foreign, to advance University purposes (Section 7).
The Board develops academic arrangements for institutional capability building with appropriate institutions and agencies, and it may appoint experts/specialists as consultants or part-time/visiting/exchange professors, scholars, or researchers (Section 7).
The Board sets policies for participative decision-making and transparency within the University (Section 7).
The Board may adopt modern and innovative modes of transmitting knowledge, including information technology, dual learning system, open learning, distance education, and community laboratory, to promote greater access (Section 7).
The Board may privatize, when most advantageous, management of nonacademic services such as health, food, building/grounds or property maintenance, and similar activities (Section 7).
The Board may extend the term of the President beyond retirement age, but not beyond 70, when performance is unanimously rated as outstanding based on Board guidelines/standards and after unanimous recommendation by the search committee (Section 7).

Board meetings and membership compensation

The Board convenes at least once every quarter (Section 8).
The Board Chairperson may call up to two (2) special meetings whenever necessary, upon three (3) days’ prior written notice (Section 8).
Quorum consists of a majority of all members holding office at the time, provided the Chairperson or the President is present (Section 8).
When the CHED Chairperson is absent, a duly designated CHED Commissioner represents the CHED Chairperson with all rights and responsibilities of a regular member (Section 8).
When the CHED Chairperson is absent, the President (as Vice Chairperson) presides (Section 8).
The CHED Chairperson may designate a CHED Commissioner to serve as the regular Chair of the Board, in which case the Commissioner presides (Section 8).
Board members do not receive salary but are entitled to reimbursements for actual and necessary expenses for attendance or other authorized official business, subject to existing laws and regulations (Section 8).

University President and campus leadership

The University is headed by a President who renders full-time service (Section 9).
The President is appointed by the Board upon recommendation of a duly constituted search committee, subject to Board guidelines/qualifications/standards (Section 9).
The President’s term is four (4) years, with eligibility for reappointment for another term (Section 9).
To ensure smooth transition, the incumbent President of the Mindanao Polytechnic State College serves a new first term as the first President of the University (Section 9).
Within six (6) months before the incumbent President’s term expires, the Board constitutes a Search Committee for the Presidency (SCP) (Section 9).
If the Office becomes vacant due to death, compulsory retirement, resignation, removal for cause, or incapacity, the Board designates an Officer-in-Charge within six (6) months from the vacancy date pending appointment of a new President (Section 9).
In such vacancy cases, the successor or Officer-in-Charge serves only the unexpired portion of the term (Section 9).
The President performs powers and duties usually pertaining to the Office of President of similar universities, plus those delegated by the Board (Section 9).
The President’s salary follows the Revised Compensation and Position Classification System and is comparable to salaries of presidents of similar educational institutions (Section 9).
The President is assisted by Vice Presidents appointed by the Board upon recommendation of the President (Section 9).
Each University campus is headed by a Campus Director who renders full-time service and is appointed by the Board upon recommendation of the search committee and the University President, subject to Board guidelines/qualifications/standards (Section 10).

Councils, university officers, and faculty rules

The University has an Administrative Council chaired by the President, consisting of Vice Presidents, deans, directors, and other officials of equal rank; it reviews and recommends policies governing administration, management, and development to the Board (Section 11).
The University has an Academic Council composed of the President (Chairperson) and all academic staff with rank of at least an assistant professor (Section 12).
The Academic Council reviews and recommends curricular offerings and rules of discipline, subject to Board approval (Section 12).
The Academic Council fixes requirements for admission and graduation and rules on conferment of degrees, subject to review and/or approval by the Board through the President of the University (Section 12).
The Academic Council exercises disciplinary power over students and formulates academic policies and disciplinary rules subject to Board approval (Section 12).
The Board appoints a University Secretary who serves for both the Board and the University, keeps Board records and proceedings, and provides each Board member notice of Board meetings (Section 13).
The Treasurer of the Philippines serves as the ex officio treasurer of the University (Section 14).
The University prohibits inquiry into political beliefs, gender preference, cultural or community affiliation or ethnic origin, and religious opinion or affiliation for faculty appointments (Section 15).
Faculty appointments remain subject to Board guidelines/qualifications/standards (Section 15).
No faculty member may teach for or against any particular church or religious sect (Section 15).

Scholarship, admission, autonomy, and staffing assistance

The University provides a scholarship program and other affirmative action programs to assist poor but deserving students who qualify for admission (Section 16).
No student is denied admission due to sex, religion, cultural or community affiliation, or ethnic origin (Section 16).
The University enjoys academic freedom and institutional autonomy under paragraph 2, Section 5 of Article XIV of the Constitution (Section 17).
Heads of national government bureaus and offices are authorized to loan or transfer to the University, upon the President’s request, apparatus, equipment, or supplies needed by the University, and to detail employees when they can be spared without serious detriment to public service (Section 18).
Detailed employees perform duties required by the President, and the time of such duty counts as part of their regular services (Section 18).

Cultural heritage program

The University must promote and preserve culture and the arts, especially local practices and rights and indigenous practices of Mindanao.
The University must develop students’ and University personnel’s talents.
The existing University theater arts program is enhanced and strengthened (Section 19; renumbered as SEC1. 9 in the text).

Tax status and tax exemptions

Revenues and assets of the University used exclusively and solely for educational purposes or in furtherance thereof are exempt from all taxes and duties (Section 20).
Gifts and donations of real and personal properties are exempt from donor’s tax and qualify as allowable deductions from gross income of the donor under the National Internal Revenue Code of 1997, as amended (Section 20).
Allowable deductions for such donations are equivalent to 150% of the value of the donation (Section 20).
Valuation of assistance other than money is based on acquisition cost, considering depreciation if the property has been used (Section 20).
Importation of specified books/supplies/materials certified by the Board—economic, technical, vocational, scientific, philosophical, historical, and cultural books; and scientific and educational computer and software equipment—is exempt from customs duties (Section 20).
The University pays 0% value-added tax for transactions subject to VAT (Section 20).
All educational monetary awards are exempt from taxes (Section 20).

Assets, land, and personnel transfer

All assets (real and personal), personnel, and records of the Mindanao Polytechnic State College, including its liabilities or obligations, are transferred to the University (Section 21).
The Act respects the positions, rights, and security of tenure of faculty members and personnel employed under existing laws prior to conversion (Section 21).
All parcels of land belonging to the government occupied by the Mindanao Polytechnic State College are declared property of the University and must be titled under the University’s name (Section 21).
If the University ceases to exist or is abolished, or if the parcels are no longer needed by the University, the parcels revert to the State (Section 21).

Funding, development plan, and audits

Funding for initial implementation is charged against the current year appropriations of the Mindanao Polytechnic State College, except sums needed to continue operations of the existing high school (Section 22).
After that, necessary sums for continued operation and maintenance are included in the annual General Appropriations Act (GAA) (Section 22).
A University modernization program fund is appropriated in the amount of PHP 50,000,000.00 per year for five (5) years, commencing in the year after approval of the Act and included in the annual GAA (Section 22).
The modernization fund is used for construction and improvement of University structures and facilities, including the University theater mentioned in Section 19 (Section 22).
Within 120 days after approval of the Act, 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 officials (Section 23).

Implementation rules and corporate charter supplementation

The provisions of Republic Act No. 8292 (the Higher Education Modernization Act of 1997) are an integral part of the Act and serve as part of the University’s governing charter (Section 25).
The Board formulates guidelines to fully implement the Act in consultation with CHED (Section 26).

Separability and repeal; effectivity

If any part or provision is declared invalid or unconstitutional, the remaining parts not affected remain in full force and effect (Section 27).
All laws, presidential decrees, executive orders, rules, and regulations inconsistent with the Act are repealed or modified accordingly (Section 28).
The Act takes effect 15 days after publication in two (2) newspapers of general circulation (Section 29).