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

SECTION 1. There shall be selected annually from the graduating classes of all public and private high schools throughout the Philippines poor but deserving students to be known as "State Scholars" who shall be granted state scholarships in science, arts, and letters and whose expenses, like tuition, matriculation, and other school fees, prescribe textbooks and equipment, board and lodging, clothing, travelling expenses, and miscellaneous allowances, shall be defrayed from funds appropriated by law or contributed from other sources for scholarship purposes.

SEC. 2. Candidates for state scholarship shall possess the following qualifications:

1. They must belong to the first ten of their respective graduating classes, and attain and maintain such tests, standards, or criteria as will insure that they are specially gifted in the particular fields chosen by them;
2. They and their parents, or if the latter are already dead, other persons required by law to give support have no resources to finance them for higher education;
3. They must be of good health, excellent moral character, and unquestionable integrity;
4. They must be natural-born citizen of the Philippine and must not be more than 21 years of age at the time of their selection.

SEC. 3.

1. There is hereby created a State Scholarship Council which shall have as its principal .function and shall possess the authority to consolidate, integrate, systematize, administer, and implement all programs of government scholarships, whether national, provincial, or municipal, as well as private scholarships which may be entrusted to it.
   
2. In connection with the administration and implementation of the state scholarships established in section 1 hereof, the Council shall exercise and perform the following specific powers and duties:
   
   
   1. To prescribe such tests, standards, or criteria which candidates for state scholarships shall attain and maintain as will insure that they are specially gifted in the particular fields chosen by them;
   2. To determine the number of state scholars and the various courses of study open for state scholarships, taking into account the needs of Philippine society for men of knowledge and competence in the different fields of activities;
   3. To select the colleges and universities which shall be qualified to enroll state scholars, considering their standards, faculties, libraries, equipment, and facilities;
   4. To screen and approve candidates for state scholarships in accordance with sections 1 and 2 hereof,
   5. To approve or fix the different expenses which shall be allowed the individual state scholars as provided in section 1 hereof and authorize the payment thereof out of the sum or sums appropriated by law or contributed from other sources for the purpose.
   
   
3. In connection with the administration and imputation of the other government scholarships, as well as the private scholarships entrusted to it, the Council shall exercise and perform the specific powers and duties provided in paragraph (b) above insofar as they are applicable and all the powers and duties provided in the laws orders, resolutions ordinances, and other instruments establishing the said scholarships.
4. In addition to the powers and duties mentioned in paragraphs (b) and (c) above, the Council shall exercise and perform the following powers and duties:

1. To seek assistance from foundations, foreign governments and agencies, international entities and bodies, and oilier sources for the support of any or all programs of scholarships placed in its charge;
2. To assist in the placement and employment of all the graduates who have been trained under the scholarship programs administered by it;
3. Subject to the civil service law, rules and regulations, to employ officers and employees that it may deem necessary, fix their compensation and other benefits, and prescribe their powers and duties:
4. In general, to do such acts, adopt such measures, enter into such arrangements, or issue such rules and regulations as may be proper for the consolidation, integration, systematization, administration, and implementation of all programs of scholarships mentioned in paragraph (a) above and for the effective carrying out of the Provisions of this Act, including the allocation and payment of funds appropriated by law or contributed from other sources for scholarship purposes.

SEC. 4.

1. The Council shall be composed of the Sectary of Education, the President of the University of the Philippines, the Chairman of the Committee on Education of the Senate, the Chairman of the Committee on Education of the House of Representatives, the Chairman of the National Science Development Board, the Director of Public Schools, the Director of Private School and two other members who shall represent non-governmental educational professional groups to be appointed by the President of the Philippines with the consent of the Commission on appointments. The Secretary of Education shall be the Chairman of the Council.
   
2. The Council shall hold regular meetings once a month and such special meetings as may be needed upon call of its Chairman or at the request of any three members. A .majority of all the members of the Council shall constitute a quorum to do business.
   
3. The members of the Council who are public officials shall not receive any additional compensation, but the members who are private citizens shall receive twenty-five pesos for each meeting actually attended by them: Provided, That no compensation shall be paid for more than two meetings a month.
   

SEC. 5. The Council shall have an Executive Secretary who shall be under its supervision and control and shall be immediately responsible to it for carrying out the provisions of this Act and the policies, decisions, resolutions, rules and regulations of the Council. He shall be appointed by the President of the Philippines upon recommendation of the Council with the consent of the Commission on Appointments. He shall receive a yearly compensation of not exceeding ten thousands pesos and such other benefits which the Council may fix.

SEC. 6. All existing program of scholarships now under the jurisdiction and control of the different government entities, offices, and agencies, including their appropriation, personnel, equipment, and other effects are referred to, and all the powers and duties of said entities, offices, and agencies having to do with such scholarship are vested in and imposed on, the State Scholarship Council.

SEC. 7. There is hereby appropriated annually beginning with the fiscal year nineteen hundred and four and out of any funds in the National Treasury not otherwise appropriated the sum of two million pesos for carrying out the provisions of this Act. Such additional sum or sums as may be necessary shall be included in the annual General Appropriation Acts.

SEC. 8. All laws, orders, resolutions, ordinances, rules and regulations inconsistent with this Act are hereby repealed.

SEC. 9. This Act shall take effect upon its approval.

Approved, June 19, 1964.