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 further prescribes that all educational institutions shall aim to develop scientific, technological and vocational efficiency;

WHEREAS, under Presidential Decree No. 6-A also known as the Educational Decree of 1972, it has been declared a policy of the government to re-orient the educational system toward an accelerated national economic growth and meaningful social development;

WHEREAS, the establishment of a state university in the Province of Benguet will provide better educational services to the people of these economically and socially depressed provinces by bringing closer to them university education and training in the arts, sciences, humanities, technology and other socio-cultural areas, as well as conduct scientific researches and technological studies;

WHEREAS, the present purely agricultural curricular offerings of the College will be expanded to provide for a complete, adequate and integrated system of education relevant to the goals of the national government; in particular, to develop scientific, technological, vocational and other professional courses;

WHEREAS, the establishment of the "university will be a direct response to the urgent need for a faster pace of economic development and social-political progress of the depressed area inhabited predominantly by our cultural minorities of the North. The development of the natural and manpower resources of the area will greatly be enhanced by making available to the people in the area relevant, and more easily accessible university education at a cheaper cost; and

WHEREAS, dispersal of higher institutions of learning to the provinces to decongest Metro Manila and other cities thickly populated with students is in line with the policy of the New Order;

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:

SECTION 1. The present Mountain State Agricultural College located in the municipality of La Trinidad, Province of Benguet, is hereby converted into a state university to be known as the Benguet State University (BSU), hereinafter referred to as the University.

SEC. 2. The University shall provide graduate and undergraduate courses in the arts, sciences, humanities and professional fields in agriculture, natural sciences, technology, and other technical and professional courses as the Board of Regents may determine and deem proper. It shall also promote research, extension, agribusiness and advanced studies and progressive leadership in its field of specialization.

SEC. 3. There shall be organized in the University of Horticultural Research and Training Institute (HORTI) and other relevant research centers to develop technologies on sub-tropical agriculture and natural resources which will backstop and enhance the growth and development of the Cordillera area and other highland areas.

SEC. 4. The governing board of the University shall be the Board of Regents to be composed of the Minister of Education, Culture and Sports as Chairman, the President of the University as Vice-Chairman, the Regional Director of the National Economics and Development Authority (NEDA), and two (2) prominent citizens of the Region, one of whom must be an alumnus of the University who have distinguished themselves in their respective professional or field of specialization to be appointed by the President of the Philippines on recommendation of the Minister of Education, Culture and Sports, in consultation with the other members of the Board. The Minister of Education, Culture and Sports may designate his representative to sit for him in meetings of the Board of Regents: Provided, that; one of the two' first appointive Regents shall serve for one (1) year, and the other for two (2) years. Thereafter, the appointees shall hold office for a term of two (2) years. In case of permanent vacancy, the appointee shall hold office for the unexpired term only.

SEC. 5. A quorum of the Board of Regents shall consist of a majority of all the members holding office at the time of the meeting. All processes against the University shall be served to the Chairman of the Board or to the President of the University.

SEC. 6. The management of the University and the exercise of its corporate powers are hereby vested in the Board of Regents, and in the President of the University in so far as authorized by the Board of Regents.

SEC. 7. The Chairman and Members of the Board of Regents shall serve without compensation, but they may be entitled to a moderate honorarium or allowance per month, and reimbursement of actual and necessary expenses incurred in attendance to meetings or other official business duly authorized by the Board of Regents.

SEC. 8. The head of the University shall be known as the President of the Benguet State University who shall be appointed by the President of the Philippines upon recommendation of the Minister of Education, Culture and Sports after consultation with the Board of Regents. He shall have the powers and perform duties pertaining to the office of university president, in addition to those specifically provided for in the decree.

SEC. 9. The Board of Regents shall have the following powers and duties in addition to its general powers of administration and supervision and the exercise of all the powers of a corporation as provided in Section Thirty-Six of Batas Pambansa Bilang 68, otherwise known as the Corporation Code of the Philippines:

1. To receive and appropriate to the ends specified by law such sums of money as may be provided for the support and maintenance of the University;
2. To prescribe rules for its own government and to enact for the government of the University such rules and regulations not contrary to law, as may be necessary to carry out the purpose and functions of the University;
3. To import commodities for educational purposes, duty-free as an exception to existing laws as well as 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, specific department thereof, or for aid to any student in accordance with the discretion and instruction of the donor, or in default thereof, in much manner as the Board of Regents may in its discretion determine. All such donations shall be considered deductible items for the income tax returns of the donors;
4. To approve the curricular and rules of discipline drawn by the University Council as hereinafter provided;
5. To confer degrees upon successful candidates for graduation and to such other candidate as may be qualified; to award honorary degrees upon persons in recognition of learning, public service, statemanship or prominence in any field of specialization of the University; to authorize the University President to award certificates for completion of non-degree program;
6. To appoint on recommendation of the President of the University—vice-presidents, deans, directors, heads of departments, professors, instructors and other officials and employees of the University; to fix their compensation hours of service, and such after due investigation and hearing;
7. To establish chairs in the University and to provide fellowships for qualified faculty members and other scholarships to deserving students;
8. To fix the tuition fees, matriculation, graduation, laboratory, and other special fees and charges as if may proper to impose. Such fees and charges including other income generated by the University shall be taken up in the books of accounts of the University in accordance with existing rules and regulations;
9. To constitute a revolving fund out of income derived from production and other income generating projects;
10. To authorize the University President to enter into contracts and/or negotiate for the construction, repair and acquisition of buildings, machineries, equipment and other physical facilities, or to acquire loans for improving them.
11. To authorize the University President to enter into formal agreements or consortia with academic, research and of institutions both here and abroad, subject to certain guidelines to be framed by the University Council and final approval by the Board of Regents; and
12. To name after prominent Filipinos or heroes hall buildings, grounds or branch of the University;

SEC. 10. Any member of the faculty or of the non-teaching staff of the University shall be under penalty of dismissal by the Board of Regents if he attempts directly or indirectly to influence students of the University towards any ideology, political or otherwise, which preaches the overthrow of the government of any of its instrumentalities through violence or subversion.

SEC. 11. No student shall be denied admission to the University by reason of age, sex, nationality, religion, or political affiliation.

SEC. 12. There shall be an Administrative Council consisting of the University President as Chairman, and the Vice-Presidents, Deans, Directors and other officials as may be designated by the University President as members, whose duty shall be to prepare and promulgate general policies of the University governing personnel, financial management and development planning, subject to approval by the Board of Regents.

SEC. 13. There shall be a University Council composed of the University President as Chairman, Vice-Presidents, Deans, heads of departments, professors, associate professors and assistance professors. The University Council shall have the power to recommend students and other deserving individuals to be recipient of degrees or awards. It shall have disciplinary power over the students within the limits prescribed by the rules and regulations on discipline approved by the Board of Regents.

SEC. 14. There shall be a College Council in each College or unit of the University with the Dean as Chairman and all the faculty of the College or unit as members.

SEC. 15. There shall be a Secretary of the University who shall be appointed by the Board of Regents. He shall also be the Secretary of the Board of Regents. He shall keep records of the University and such other documents as may be directed by the Board of Regents.

SEC. 16. Heads of bureaus, agencies and offices of the national, provincial, city, municipal governments are hereby authorized to loan or transfer upon requests of the University such apparatus and supplies as may be needed by the University and to detail employee or employees for duty therein when in the judgment of the head of the Bureau or office, such employee can be spared without serious detriment to the public service. Employees so detailed shall perform such duty as required under such detail and the time so employed shall be counted as part of their regular official service.

SEC. 17. The provincial government of the Province of Benguet, Mountain Province, Ifugao and Kalinga-Apayao hereby directed to cooperate with the University in setting up and sponsoring a Special Cultural Office of the University which shall gather, collate, and synchronize the teaching, preservation, and integration of the socio-cultural heritage of the various ethnic tribes of the mountain region into the national social millieu. For this purpose, the four provinces may each sponsor at least one professional chair in the University.

SEC. 18. The University is hereby authorized to integrate into its systems other educational institutions within the Province of Benguet and/or other Mountain Provinces that may be qualified vis-a-vis the standards set by the University as approved by the Board of Regents.

SEC. 19. The Treasurer of the Philippines shall be the ex-officio Treasurer of the University, and all accounts and expenses hereof shall be audited by the Commission on Audit in accordance with existing rules and regulations, except as provided by this Decree.

SEC. 20. All the present officials, administrative staff, members of the faculty and employees of the Mountain State Agricultural College shall be absorbed by the University with their respective position, designation, and ranks. All the assets, records and appropriations of the Mountain State Agricultural College shall be transferred to the Mountain State University.

SEC. 21. All parcels of land that are reserved for the Mountain State Agricultural College and for other educational institutions that may be integrated into the University, or their predecessors interests under various Executive Orders or Proclamation are hereby declared the property of the Benguet State University. All such parcels, registered or unregistered, shall be titled in the name of the University and, in the documentation process, the University shall be exempt from paying taxes; such real estate property of the University shall also be exempt from taxes that are ordinarily or usually levied on private properties.

SEC. 22. The Minister of Education, Culture and Sports is hereby directed to take such steps as are necessary for the immediate implementation of this law. For this purpose, he is hereby authorized to create a technical committee to advise the Board of Regents of the University toward the proper establishment, development, and expansion of the programs of the University.

SEC. 23. In addition to the present appropriations of the Mountain State Agricultural College, the sum of Five Million Pesos (P5,000,000.00) is hereby appropriated out of the Funds of the National Treasury not otherwise appropriated to carry out the purposes of this decree. Thereafter, funds needed for the maintenance and continued support and operation of the University shall be included in the annual General Appropriations Act.

SEC. 24. The Board of Regents shall submit to the President of the Philippines a detailed report setting forth the programs, conditions, needs, and plans of the University within sixty (60) days after the close of each school calendar year.

SEC. 25. The President of the Philippines and the two next ranking officials of the Republic of the Philippines shall constitute the Board of Visitors of the University, whose function shall be to make visits to the University at such time and date as they may determine or deem proper, to examine the property, courses of study, discipline, accounts, and general conditions of the University.

SEC. 26. Republic Act No. 5923, otherwise known as the Charter of the Mountain Agricultural College, Presidential Decree No. 1437, defining the composition and powers of the governing Board, the appointment and term of office of the presidents of chartered state colleges and universities, and for other purposes, and such other laws, acts, decrees, or executive orders contrary to or inconsistent with this decree are hereby repealed or amended accordingly.

SEC. 27. This Decree shall take effect immediately.

Done in the City of Manila, this 12th day of January, in the year of Our Lord, nineteen hundred and eighty-six.