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

SECTION 1. Sections 1, 2, 3, 5, 6, 9, 11, 12, 14, 16, 17, and 18 of Presidential Decree No. 1078 are hereby amended to read as follows:

"SECTION 1. The present Philippine Air Force College of Aeronautics located within the school zone at the five (5) Philippine Air Force bases of Villamor, Basa, Mactan, Fernando, and Sangley, a nonmilitary institution, is hereby converted into a state college to be known as the Philippine State College of Aeronautics. The Philippine State College of Aeronautics shall hereafter be referred to as the College.

"SEC. 2. The College shall provide professional and advanced technical and technological instruction and training in the preparatory field of aeronautics and the liberal arts courses. It shall promote research and advanced studies, and progressive leadership in its fields of specialization.

"SEC. 3. In addition to said offerings, the College shall offer post graduate courses in the fields of specialization abovementioned, subject to existing laws and DECS rules and regulations.

"SEC. 5. The College shall have a Board of Trustees which shall be the governing body of the College. There shall be eleven (11) ex officio members of the Board and two (2) non ex officio members. The ex officio members are the Secretary of Education, Culture and Sports, who shall be the Chairman of the Board; the President of the College, who shall be the Vice-Chairman; the Commanding General of the Philippine Air Force; the Chairman of the Senate Committee on Education, Arts and Culture; the Chairman of the House of Representatives Committee on Education and Culture; a representative from the Department of Finance; a representative from the National Economic and Development Authority; the President of the Employees' Association; and the President of the Student Council of the College, who shall be members of the Board. Two (2) prominent citizens, who are residents of the abovementioned military bases, shall be chosen as members of the Board: Provided, That one shall serve a term of four (4) years and the other shall serve a term of two (2) years.

"SEC. 6. The College shall be headed by a President to be appointed by the President of the Philippines upon recommendation of the Board of Trustees. His salary shall be fixed by the Board of Trustees subject to existing laws, and which shall, whenever applicable, be comparable to that being received by Presidents of educational institutions of like standing. He shall hold office for a term of six (6) years without reappointment, unless he reaches the age of retirement or earlier removed for cause or incapacitated to discharge the duties of the office. In case of vacancy by reason of death, resignation or incapacity of the President to perform the function of the office, the Board shall have the authority to designate an officer-in-charge of the College pending the appointment of a new president.

"SEC. 9. A quorum of the Board of Trustees shall consist of a majority of all the members holding office at the time a meeting is called: Provided, however, That among those present are the Secretary of Education, Culture and Sports who is the Chairman of the Board, or the President of the College who acts as the presiding officer in the former's absence. The Board of Trustees shall convene regularly once every two (2) months. The Chairman of the Board of Trustees may call a special meeting whenever necessary. All processes against the Board of Trustees shall be served on the President or Secretary thereof.

"SEC. 11. The Board of Trustees shall have the following powers and duties in addition to its general powers of administration, and the exercise of all the powers of a corporation as provided under Section 36 of Batas Pambansa Blg. 68, otherwise known as the Corporation Code of the Philippines:

"(a) To receive and appropriate for the purpose specified by laws such sums as may be provided for the support of the College;

"(b) To confer degrees upon successful candidates for graduation of the College. It may also confer honorary degrees upon persons in recognition of learning, statesmanship or eminence in any of the fields of specialization of the College, or in recognition of public service: Provided, That such degrees shall not be conferred in consideration of or to reciprocate some personal favors: Provided, further, That such honorary degrees shall not be conferred without prior approval of the Secretary of Education and Culture;

"(c) To authorize the President of the College to award proficiency certificates or diploma to students who have completed non-degree courses;

"(d) To appoint on recommendation of the President of the College, a vice-president, deans, directors, secretaries of the College, registrar, heads of departments, professors, instructors, lecturers, and other officials and employees of the College; to fix their compensation, hours of service, and such other duties and conditions as it may deem proper; and to grant them in its discretion, leave of absence, under such regulations as it may promulgate; to remove them for cause after an investigation and hearing; to establish chairs in the College, and to provide for the maintenance or endorsement of such chairs as may be necessary;

"(e) To approve the curricula, institutional programs and rules of discipline drawn by the College Council as hereinafter provided;

"(f) 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. Such fees and charges, including government subsidies and other income generated by the College, constitute special trust funds and shall be deposited in any authorized government depository bank. Any and all interests that shall accrue therefrom shall form part of the same fund for the use of the College. Any provision of existing laws to the contrary notwithstanding, incomes generated by the College and all sums appropriated for the support of the College may, at the discretion of the Board, be disbursed for the professional growth and development, health, welfare and other similar benefits of their faculty members and personnel, for the acquisition, construction, maintenance and repair of urgently needed instructional and auxiliary facilities, equipment, buildings and other infrastructure, and for expenses necessary for the attainment of its purposes under this Act. If, for any reason, the College shall not be able to pursue any project for which funds have been appropriated for reasons beyond control 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 College;

"(g) To provide fellowship for qualified faculty members and scholarships to deserving students;

"(h) To prescribe for the College such rules and regulations, not contrary to law, as may be necessary to carry out the purpose and function of the College;

"(i) 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 College, or any department thereof, or aid to any student in accordance with the directions and instructions of the donor, and in default thereof, in such manner as the Board of Trustees may, in its discretion, determine. All such donations shall be exempt from all taxes and deductible items from the income tax of the donors;

"(j) To authorize the College to undertake construction and/or repair of its buildings, machinery and equipment and other facilities, subject to existing laws, orders and decrees, and the purchase and acquisition of real and personal properties, including necessary supplies, materials and equipment. Purchases and other transactions entered into by the College, through the Board, shall be exempt from all taxes and duties; and

"(k) To establish branches in the cities and provinces if and when it becomes essential and necessary where there is no existing school offering similar programs or courses to promote and carry out equal access to educational opportunities as mandated by the Constitution.

"SEC. 12. On or before the fifteenth day of the second month after the opening of regular classes each year, the Board of Trustees shall file with the Office of the President of the Philippines, through the Secretary of Education, Culture and Sports, and to both Houses of Congress, a detailed report, setting forth the progress, conditions and needs of the College.

"SEC. 12-A. There shall be an Administrative Council of the College consisting of the President of the College, 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 planning of the College as approved by the Board.

"SEC. 14. The body of instructors and professors of the College shall constitute the faculty of the College. The faculty of the College shall be appointed by the Board subject to the Civil Service Law. No religious opinion or affiliation shall be a matter of inquiry in the appointment of faculty members of the College: Provided, however, That no member of the faculty shall teach for or against any particular church or religious sect.

"SEC. 16-A. All accounts and expenses of the College shall be audited by the Commission on Audit or its duly authorized representative.

"SEC. 17-A. Pursuant to paragraph 2, Section 5 of Article XIV of the Constitution of the Republic of the Philippines, the College shall enjoy academic freedom.

"SEC. 18. The College shall offer low-cost education and training without sacrificing the quality of education. The income derived from fees of students shall be used to defray the cost of operations of the College, which cost of operations shall not exceed those of other state colleges of the same level. The cost of operations not met by the amount collected from the students' fees shall be granted is government subsidy."

SEC. 2. The Secretary of Education, Culture and Sports as Chairman of the Board of Trustees is hereby directed to take such steps as are necessary for the immediate implementation of this Act.

SEC. 3. The amount necessary to carry out the provisions of this Act shall be charged against the current appropriation of the Department of Education, Culture and Sports. Thereafter, such sums as may be needed for the continued operation of the College shall be included in the annual General Appropriations Act.

SEC. 4. This Act shall take effect upon its approval.

Approved,

(Sgd.) NEPTALI A. GONZALES	(Sgd.) RAMON V. MITRA
President of the Senate	Speaker of the House of Representatives

This Act which originated in the House of Representatives was finally passed by the House of Representatives and the Senate on February 7, 1992 and January 30, 1992, respectively.

(Sgd.) ANACLETO D. BADOY, JR.	(Sgd.) CAMILO L. SABIO
Secretary of the Senate	Secretary General House of Representatives

Approved: June 03, 1992