Be it enacted by the Senate and House of Representatives of the Philippines in Congress assembled:

SECTION 1. The Don Severino Agricultural College in the Municipality of Indang, Province of Cavite, is hereby converted into a State university to be known as the Cavite State University, hereinafter referred to as the University.

SEC. 2. The University shall primarily provide advance instruction and professional training in agriculture, science and technology, education and other related fields, undertake research and extension services, and provide progressive leadership in these areas.

SEC. 3. The University shall offer undergraduate, graduate and short-term technical courses within its areas of specialization and according to its capabilities, as the Board of Regents may deem necessary to carry out its objectives, particularly in order to meet the needs of the province and the region.

The existing high school shall be transferred to the jurisdiction and supervision of the Department of Education, Culture and Sports: Provided, That the high school shall be allowed to remain and operate within the campus of the University until the students shall have completed their high school education: Provided, further, That the University may operate a reasonably-sized laboratory school, if it has a college of education.

SEC. 4. The University shall have the general powers of a corporation set forth in the Corporation Law. The administration of the University and the exercise of its corporate powers shall be vested exclusively in the Board of Regents.

SEC. 5. The governing body of the State University shall be the Board of Regents, hereinafter referred to as the Board, which shall be composed of the following:

1. Chairman of the Commission on Higher Education (CHED), Chairman;
   
2. President of the University, Vice-Chairman;
   
3. Chairman of the Committee on Education, Arts and Culture of the Senate, member;
   
4. Chairman of the Committee on Education and Culture of the House of Representatives, member;
   
5. Regional Director of the National Economic and Development Authority (NEDA), where the main campus of the University is located, member;
   
6. President of the federation of faculty associations of the University, member;
   
7. President of the federation of student councils of the University, member;
   
8. President of the alumni association of the University, member; and
   
9. Two (2) prominent citizens who have distinguished themselves in their professions or fields of specialization of the University, chosen from among a list of at least five (5) persons qualified in the Province of Cavite, as recommended by the search committee constituted by the University President, in consultation with the Chairman of the CHED, based on the normal standards and qualifications for the position, members.

The term of office of the President of the faculty associations, the President of the federation of student councils and the President of the alumni association shall be coterminous with their respective terms of office.

The two (2) prominent citizens shall serve for a term of two (2) years.

In multi-campus universities, the faculty, alumni, and the student council shall be represented by the presidents of federations.

In case of vacancy in the office of the president, the officer-in-charge of the University designated by the Board shall serve for the unexpired term only.

The President of the University, whose term may be terminated, according to this Act, shall be entitled to full retirement benefits under existing laws.

SEC. 6. The Board shall promulgate and implement policies in accordance with the declared state policies on education and other pertinent provisions of the Constitution on education, agriculture, science and technology, as well as the policies, standards and thrusts of CHED under Republic Act No. 7722.

SEC. 7. The Board shall have the following specific powers and duties in addition to its general power of administration and the exercise of all the powers granted to the board of directors of a corporation under existing law:

1. To enact rules and regulations not contrary to law as may be necessary to carry out the purpose and functions of the University;
   
2. To receive and appropriate all sums as may be provided, for the support of the University in the manner it may determine, in its discretion, to carry out the powers and functions of the University;
   
3. To receive in trust legacies, gifts and donations of real and personal properties of all kinds and to administer and dispose the same when necessary for the benefit of the University, and subject to the limitations, directions and instructions of the donor, if any. Such donations shall be exempt from all taxes and shall be considered as deductible items from the income tax of the donor.
   
4. To fix the tuition fees and other necessary school charges, such as but not limited to, matriculation fees, graduation fees and laboratory fees, as the Board may deem proper to impose, after due consultations with the involved sectors.

Such fees and charges, including government subsidies and other income generated by the University, shall constitute special trust funds and shall be deposited in any authorized government depository bank, and all interests that shall accrue therefrom shall form part of the same funds for the use of the University.

Any provision of existing laws, rules and regulations to the contrary notwithstanding, any income generated by the University from tuition fees and other charges, as well as from the operation of auxiliary services and land grants, shall be retained by the University, and may be disbursed by the Board for instruction, research, extension, or other programs/projects of the University: Provided, That all fiduciary fees shall be disbursed for the specific purpose for which they are collected.

If, for reason beyond its control, the University shall not be able to pursue any projects for which funds have been appropriated and allocated under its approved program of expenditures, the Board may authorize the use of said funds for any reasonable purpose which, in its discretion, may be necessary and urgent for the attainment of the objectives and goals of the University;

SEC. 8. The Board of Regents shall regularly convene at least once every quarter. However, the Chairman of the Board of Regents may, upon three (3) day’ prior written notice, call a special meeting whenever necessary.

A quorum of the Board shall consist of majority of all members holding office at the time of the meeting: Provided, however, That the Chairman of the CHED, who is the Chairman of the Board or the President of the University is among those present in the meeting.

In the absence of the Chairman of the CHED, a Commissioner of the CHED, duly designated by him, shall represent him in the meeting with all the rights and responsibilities of a regular member: Provided, however, That in the said meeting, the President of the University as Vice Chairman shall be the presiding officer.

The members of the Board shall not receive any salary but shall be entitled to reimbursements for actual and necessary expenses incurred, either in their attendance to meetings of the Board or in connection with other official business authorized by resolution of the Board, subject to pertinent existing laws and regulations.

SEC. 9. The University shall be headed by a President who shall render full-time service. He shall be appointed by the Board upon the recommendation of a duly constituted search committee. He shall hold office for a term of four (4) years, extendible only for another four (4) years.

In case of vacancy in the office of the President by reason of death, compulsory retirement, resignation, removal for cause or incapacity of the President to perform the functions of his office, the Board shall have the authority to designate an officer-in-charge of the University pending the appointment of a new president.

The powers and duties of the President of the University, in addition to those specifically provided in this Act, shall be those usually pertaining to the office of the president of similar universities, and those delegated by the Board.

The salary of the President of the State University shall be in accordance with the Revised Compensation and Position Classification System and shall be comparable to that being received by the presidents of similar educational institutions of like standing.

SEC. 10. There shall be an administrative council consisting of the President of the University as Chairman, the vice-president(s), deans, directors and other officials of equal rank whose duty is to implement the policies governing the administration, management and development of the University, as approved by the Board.

SEC. 11. There shall be an academic council with the President of the University as Chairman and all the members of the instructional staff with the rank of not lower than assistant professor, as members. The academic council shall have the power to prescribe curricular offerings, subject to the approval of the Board. It shall fix the requirements for admission to the University, as well as for graduation and the conferring of degrees, subject to review and/or approval by the Board through the President of the University. It shall have disciplinary power over the students and shall formulate academic policies, rules and regulations on discipline. Such policies, rules and regulations shall be approved by the Board.

SEC. 12. The Board shall appoint a Secretary who shall serve as such for both the Board and the University and shall keep all records and proceedings of the Board. He shall communicate to each member of the Board notice of meetings.

SEC. 13. The Treasurer of the Philippines shall be the ex-officio treasurer of the University.

SEC. 14. No religious opinion or affiliation shall be a matter of inquiry in the appointment of faculty members of the University: Provided, however, that no member of the faculty shall teach for or against any particular church or religious sect.

SEC. 15. In order to ensure the smooth transition to a University, the incumbent President of the Don Severino Agricultural College, if qualified, shall serve as the first President of the University subject to the provision of Section 9 on the University President.

SEC. 16. All assets, fixed and movable, personnel and records of the Don Severino Agricultural College, as well as liabilities or obligations, are hereby transmitted to the University: Provided, however, That the positions, rights and security of tenure of personnel therein employed under existing laws prior to its conversion to a university are not impaired: Provided, further, That the incumbents of the positions shall remain under the same status until otherwise provided for by the Board. All parcels of land belonging to the government, occupied by the Don Severino Agricultural College are hereby declared to be the property of the University and shall be titled under its name: Provided, furthermore, That should the University cease to exist or be abolished or such parcels of land aforementioned be no longer needed by the University, the same shall revert to the Province of Cavite.

SEC. 17. The heads of bureaus and offices of the national government are hereby authorized to loan or transfer, upon request of the President of the University, such apparatus, equipment or supplies as may be needed by the University, and to detail employees for duty therein when, in the judgment of the bureau or office, such apparatus, equipment, supplies or services of such employees can be spared without serious detriment to the public service. Employees so detailed shall perform such duties as required of them by the President of the University, and the time so employed shall be counted as part of their regular services.

SEC. 18. The University shall provide a scholarship program and other affirmative action programs to assist poor but deserving students to qualify for admission to the University.

No student shall be denied admission to the University by reason of sex, religion, cultural or community affiliation or ethnic origin.

SEC. 19. The University shall enjoy academic freedom.

SEC. 20. On or before the fifteenth day of the second month after the opening of the regular classes each year, the Board shall file with both Houses of Congress a detailed report on the progress, condition and needs of the University.

SEC. 21. The University may accept the affiliation and/or integration within its operation of any existing national school within the province whose programs can contribute largely and effectively to the attainment of its objectives, in coordination with the CHED and in consultation with the DBM: Provided, That funds, properties and other assets, as well as obligations of the integrated school shall be transferred to the University.

SEC. 22. The amount necessary to carry out the provisions of this Act shall be charged against the current years appropriations of the Don Severino Agricultural College, except the sum needed to continue the operations of the existing high school. Thereafter, such sums as may be necessary for the continued operation and maintenance of the Don Severino State University shall be included in the annual General Appropriations Act.

SEC. 23. Within the period of one hundred twenty (120) days after the approval of this Act, the University shall accomplish the following:

1. Submit a five (5) year development plan, including its corresponding program budget, to the CHED, for appropriate recommendation to the DBM;
   
2. Undergo a management audit in cooperation with CHED;
   
3. Accordingly set up its organizational, administrative as well as academic structure, including the appointment/designation of university key officials; and
   
4. Set in motion the establishment of at least four (4) separate degree granting units, one of which is in the arts and sciences and another, at the graduate level.

SEC. 24. Members of the faculty of the University at the tertiary level shall be exempt from any civil service examination as a requisite for appointment, without prejudice to the right of the Board to impose other professional examination requirements intended to maintain high academic standards.

SEC. 25. The provisions of Republic Act No. 8293, otherwise known as the "Higher Education Modernization Act of 1997," shall form as an integral part of this Act and together shall serve as the governing charter of the University.

SEC. 26. All other powers, functions and privileges, responsibilities and limitations to state universities and/or its officials under existing laws shall be deemed granted to or imposed upon the University and/or its official whenever appropriate.

SEC. 27. All laws, presidential decrees, executive orders, rules and regulations contrary or inconsistent with the provisions of this Act are hereby repealed, amended or modified accordingly.

SEC. 28. This Act shall take effect upon its approval.

Approved, Lapsed into law on Jan 22, 1998, without the signature of the President, in accordance with Article VI, Section 27 (1) of the Constitution.