Presidential Decree No. 1437




M a n i l a



WHEREAS, the Constitution of the Philippines directs the state to establish and maintain a complete, adequate and integrated system of education relevant to the goals of national development and prescribes that all educational institutions shall aim to develop scientific, technological and vocational efficiency;

WHEREAS, under Presidential Decree No. 6-A otherwise known as the Educational Development Decree of 1972, promulgated on September 29, 1972, it has bee declared a policy of the government to reorient the educational system toward an accelerated national economic growth and meaningful social development;

WHEREAS, there is a need to define the composition and powers of the governing boards of chartered state universities and colleges in order to achieve a more coordinated and integrated system of higher education, to render them more effective in the formulation and implementation of policies on higher education, and to provide for more relevant direction in their governance;

WHEREAS, the enabling laws of certain chartered state colleges and universities indicate a fixed term of office of the presidents thereof while the others are silent on the matter, and there is accordingly a felt need to provide a standards on the tenure of college or university presidents in accordance with the generally accepted management practices.

NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the Philippines, by virtue of the powers vested in me by the Constitution, do hereby order and decree to be part of the laws of the land;

Section 1. Any provision of law to the contrary notwithstanding, the composition of the governing boards of chartered state universities and colleges is hereby modified and reconstituted as follows:

* Secretary of Education and Culture, Chairman

* President of the University or College, Vice-Chairman

* Representative of the National Economic and Development Authority (NEDA), Member

* Two (2) prominent citizens who have distinguished themselves in the professions or fields of specialization of the institutions concerned, one representing the alumni of the institution concerned, the other chosen from prominent citizens in the city or province where the school is located, to be appointed by the President of the Philippines upon recommendation of the Secretary of Education and Culture, Member

The first group of appointive regents or trustees shall serve for two (2) years and four (4) years, respectively. Thereafter, the appointees shall hold office for a term of four (4) years. In case of permanent vacancy, the appointee shall hold office for the unexpired term only.

In the absence of the Secretary of Education and Culture, the Secretary shall authorize a representative, preferably the undersecretary concerned and at the least a director, to sit in the meetings of the board: Provided, however, that during these meetings the president shall preside as Vice Chairman of the Board.

Sec. 2. The governing boards shall exercise policy-making functions in accordance with the general policies, plans, and programs on education as may be formulated by the National Board of Education and the Secretary of Education and Culture and the general policies, plans, and programs of national and regional development as may be issued by the National Economic and Development Authority (NEDA). The Secretary of Education and Culture as Chairman of the governing boards shall see to it that the general educational policies, plans and programs as formulated and promulgated are adopted and observed in all state colleges and universities.

Sec. 3. Subject to the provisions of Sec. 2 hereof, the governing boards shall have the following specific powers and duties in addition to the general powers as provided in Section Thirteen of Act Numbered Fourteen Hundred Fifty-Nine, as amended, otherwise known as the Corporation Law:

(a) To enact for the government of the university or college, such rules and regulations not contrary to law, as may be necessary to carry out the purpose and functions of the university or college.

(b) To receive and appropriate to the ends specified by law such sums as may be provided for the support of the university or college.

(c) To import duty-free essential commodities and materials for advanced educational or technological programs as an exception to existing laws, provided such commodities or materials are not available locally; and to receive in trust legacies, gifts, and donations of real and personal property of all kinds, to administer the same for the benefit of the university or college or for aid to any student in accordance with the directions and instructions of the donor, and in default thereof, in such manner as the governing boards may in their discretion determine. Such donations shall be exempt from all taxes and shall be considered as deductible items from the income tax of the donors.

(d) To approve the curricula and rules of discipline drawn by the administrative and Academic Councils as hereinafter provided.

(e) To confer degrees upon successful candidates for graduation, to award honorary degrees upon persons in recognition of learning, public service, statemanship or eminence in any field of specialization of the university or college, and to authorize the presidents of the university or college to award certificate for completion of non-degree programs;

(f) To confirm appointments of vice presidents, deans, directors, registrars, heads of departments, professors and other officials and employees of the university or college made by the president, to fix their compensation, hours of service, and such other duties and conditions as the governing boards may promulgate, in accordance with the provisions of existing laws; to remove them for cause after investigation and hearing.

(g) To establish chairs in the university or college and to provide fellowships for qualified faculty members and scholarships to deserving students.

(h) To fix tuition fees and such other necessary school charges as the governing boards may deem proper to impose. Such fees and charges, including other incomes generated by the university or college shall constitute a special trust fund for the exclusive use of the university or college, any provision of existing laws to the contrary notwithstanding.

(i) To authorize the construction or repair of its buildings, machineries, equipment and other facilities and the purchase of necessary supplies, materials, and equipment, any provision of law to the contrary notwithstanding; provided, however, that the funds for the purpose shall come from the authorized appropriation of the university or college.

Sec. 4. A quorum of the governing boards shall consist of a majority of all the members holding office at the time of the meeting; Provided, however, that among those present are the Secretary of Education and Culture, who is chairman of the Board, or the President, who acts as presiding officer in the former's absence. All processes against the university or college shall be served on the President of the university or college or his duly authorized representative.

Sec. 5. The members of the governing boards shall not receive compensation but shall be reimbursed for actual and necessary expenses incurred in their attendance of meetings or other official functions authorized by the board.

Sec. 6. The head of the university or college shall be known as the President of the university or college. He shall be qualified for the position and 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 which may be renewed for another term upon recommendation of the Secretary of Education and Culture after consulting the Board. In case of vacancy by reason of death, absence or resignation, the Secretary of Education and Culture shall have the authority to designate an officer in charge of the college or university pending the appointment of the President.

The powers and duties of the President of the university or college, in addition to those specifically provided for in this Decree shall be those usually pertaining to the office of the president of a university or college.

Sec. 7. The incumbent president of a chartered state college or university whose term may be terminated according to this Decree, shall be entitled to full retirement benefits: provided that he has served the government of at least twenty (20) years; and provided, further that in case the number of years served is less than 20 years, he shall be entitled to one month pay for every year of service.

Sec. 8. There shall be an Administrative Council of the university or college 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 whose duty shall be to implement policies governing the administration, management, and development planning of the university or college subject as approved by the governing board.

Sec. 9. There shall be an Academic Council of the university or college with the President of the university or college as chairman and all the professors members of the instructional staff of the university or college as members.

The Academic Council shall have the power to prescribe the curricula and rules of discipline of the college or university subject to the approval of the board of Trustees/Regents. It shall fix the requirements for admission to the college as well as for graduation and the conferring of degrees, subject to review of the Board of Regents. The Council shall likewise have the power to recommend students to be recipients of degrees. Through the President of the university or college or his duly authorized representative, the Council shall have disciplinary power over the students of the college or the university within the limits prescribed by the rules of discipline as approved by the Board of Trustees/Regents.

Section 10. Members of the faculty of the university or college shall be exempt from any civil service examination or regulation as a requisite for appointment. No religious test shall be applied nor shall religious opinion or affiliation be a matter of inquiry in the appointment of faculty members of the university or college: Provided, however, that no member of the faculty shall teach for or against any particular church or religious sect.

Section 11. No student shall be denied admission to the university or college by reasons of sex, nationality, religion or political affiliation.

Section 12. The Treasurer of the Philippines shall be the ex-officio treasurer of the university or college. All accounts and expenses of the university or college shall be audited by the Commission on Audit or its duly authorized representative.

Section 13. On or before the fifteenth day of the second month after the opening of regular classes each year, the governing board shall file with the office of the President of the Philippines through the Secretary of Education and Culture, a detailed report setting forth the progress, conditions, and needs of the university or college.

Section 14. The Secretary of Education and Culture is hereby directed to take such steps as are necessary for the immediate implementation of this Decree.

Section 15. The enabling acts of the following state institutions of higher learning or any parts thereof which are contrary to or inconsistent with the provisions of this Decree are hereby repealed, amended, or modified accordingly: 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; Polompon 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; Provided, however, that the Philippine Air Force College of Aeronautics, Philippine Merchant Marine Academy, Pamantasan ng Lungsod ng Maynila, and other similarly situated institutions of higher learning shall be deemed attached to the Department of Education and Culture for purposes of policy and program coordination.

Section 16. This Decree shall take effect immediately.

Done in the City of Manila, this 10th day of June, in the year of Our Lord, nineteen hundred and seventy-eight.

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