Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

TWENTIETH CONGRESS
First Regular Session

HOUSE BILL NO. 727

Introduced by Representative Antolin A. Oreta III

AN ACT
PRESCRIBING THE GUIDELINES FOR THE ESTABLISHMENT Al
OPERATION OF LOCAL UNIVERSITIES AND COLLEGES

EXPLANATORY NOTE

Section 2, Article XIV of the 1987 Constitution mandates the State to establish, maintain, and
support a complete, adequate, and integrated system of education relevant to the needs of the
people and society. Pursuant to this mandate, the Local Government Units (LGUs) have taken
an active role in promoting access to higher education through the establishment of Local
Universities and Colleges (LUCs). However, despite the increasing number of LUCs
nationwide, no unified legal framework governs their creation, operation, and conversion into
university status. This has led to varying standards in quality, governance, and program
offerings among LUCs.

This bill seeks to institutionalize mandatory guidelines for the creation and operation of LUCs
to ensure that they provide accessible, quality, and relevant education. It also aims to strengthen
the supervisory and regulatory role of the Commission on Higher Education (CHED), while
recognizing the continuing responsibility of LGUs to support and sustain higher education at
the local level.

This bill was approved by the House of Representatives in the 19" Congress and was duly
transmitted to the Senate. This is refiled in the 20 Congress under the same considerations for
which it was previously approved.

In view of the foregoing, the passage of this bill is earnestly sought.

hu pb,

REP. ANTOLIN A. ORETA IIT
Lone District of Malabon City


25

Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

TWENTIETH CONGRESS:
First Regular Session

HOUSE BILL NO._727

Introduced by Representative Antolin A. Oreta IIE

AN ACT
PRESCRIBING THE GUIDELINES FOR THE ESTABLISHMENT AND
OPERATION OF LOCAL UNIVERSITIES AND COLLEGES

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

SECTION 1. Short Title. This Act shall be known as “Local Universities and Colleges
(LUCs) Governance Act.”

SEC. 2. Declaration of Policy. It is the policy of the State to establish, maintain, and
support a complete, adequate, and integrated system of education relevant to the needs of the
people and society. It is also the policy of the State to protect and promote the right of all
citizens to quality education and to take appropriate steps to make education accessible to all.

To this end, mandatory guidelines on the establishment of local colleges and the
conversion of local colleges into universities must be prescribed to achieve a standard and
integrated system of higher education, provide the appropriate direction in their governance,
and ensure that they will deliver quality and relevant education to students.

SEC. 3. Definition of Terms. As used in this Act:

(a) Degree program refers to the set of academic programs and courses in a field of study
leading to the conferment of an undergraduate or graduate degree;

(b) Higher education institution refers to an institution of higher learning which primarily
offers degree-granting programs duly recognized by the Commission on Higher Education
(CHED) and leading to the conferment of a diploma;

(c) Level II accreditation refers to a status granted to an educational program after being
granted the initial accreditation following a formal survey by the accrediting agency and duly
certified by the accreditation federation or network, effective for a period of three (3) years;


(A) Local college or dalubhasaan refers to a public higher education institution with below
Level II accreditation, financially supported, operated and maintained by the local
government unit, and offers undergraduate or baccalaureate and graduate academic programs
leading to the conferment of a degree;

(e) Local government unit (LGU)) refers to municipalities, cities and provinces that created
or established the local university or college;

(f) Local higher education institution refers to a public higher education institution
financially supported by an LGU through an ordinance, which offers undergraduate or
baccalaureate and graduate academic programs leading to the conferment of a degree;

(g) Local university or pamantasan refers to a public higher education institution with above
Level II accreditation that is financially supported, operated and maintained by an LGU
and offers undergraduate or baccalaureate and graduate academic programs leading to the
conferment of a degree;

(h) Non-degree program refers to a postsecondary short-term certificate or diploma academic
and technical-vocational programs below the baccalaureate or bachelor’s degree;

(i) Ordinance refers to the enabling act of a Sangguniang Panglunsod, or Sangguniang
Bayan, or Sangguniang Panlalawigan creating a particular local university or college and
which serves as their charters; and

(j) Technical-vocational institution refers to a postsecondary education institution that offers
short-term nondegree, diploma or certificate technical-vocational education and training
programs or courses.

SEC. 5. Coverage. The provisions of this Act shall apply to:
(a) Existing local universities and colleges (LUCs);

(b) Higher education institutions (HEIs) to be established and operated by LGUs
through a local ordinance;

(c) HEIs to be established and operated by LGUs that will offer non-degree programs,
but which intends to offer undergraduate and graduate degree programs;

(d) Existing technical-vocational institutions established and operated by an LGU
offering non-degree programs, but which intend to propose a reclassification as a college,
professional institution or university; and

(e) Existing LUCs which have not met the minimum standards of the Commission on
Higher Education (CHED), as prescribed in CHED Memorandum Order (CMO) No. 46, series
of 2012, or the most recent CMOs on Policies, Standards, and Guidelines (PSGs) for HEIs.


SEC. 6. Establishment and Operation of Local HEIs by LGUs. A local HEI, to be
known as a local college or dalubhasaan, or any typology assigned by the CHED in accordance
with changes in the Philippine higher educational system, shall be established and operated by
an LGU through an ordinance duly enacted for that purpose by the sanggunian concemed:
Provided, That prior to the enactment of the said ordinance, the LGU establishing a local
college shall consult with the CHED, through the regional office that has jurisdiction over the
area where the institution is intended to be established, to ensure full compliance with the
mandatory requirements set forth in this Act.

SEC. 7. Mandatory Requirements for the Establishment of the LUC. The CHED shall
require all LUCs to submit the following requirements for review and approval:

(a) Feasibility study that shall include the following: 1) the necessity for a local HEI in the
area; 2) human resource requirements of the industry to determine the proposed program
offerings; 3) target offerings; 4) financial capacity of the LGU to establish and sustain the
operation of the LUC;

(b) Certification of availability of funds by the Treasurer of the concerned LGU, as provided
under the pertinent of Republic Act No. 7160, otherwise known as the “Local
Government Code of 1991”;

(c) A project development plan with a program of work showing that the LGU allocated a
school site with appropriate size and location pursuant to the applicable provisions of
Republic Act No. 6541, otherwise known as the “National Building Code of the
Philippines”, a blueprint of the architectural design of its buildings and other physical
facilities, and provisions for acquisition of instructional materials and equipment that
comply with the CMOs pertinent to the program offered; and

(d) A five-year institutional development plan duly approved by the sanggunian, which shall
include the following: 1) annual budgetary allocation; 2) organizational structure and
composition of the Governing Board, hereinafter referred to as the Board; and 3)
personnel complement indicating the p/antilla of positions to be hired on a merit system
and the procedure for hiring non-plantilla items duly approved by the Civil Service
Commission

In all cases, a duly established educational institution by the LGU shall require the
imprimatur of the CHED prior to the offering of higher education degree programs. It shall file
with the CHED an application to offer a higher education degree program. The application
shall be supported with documents indicating compliance with the policies, guidelines, and
standards relative to such degree program.

SEC. 8. Supervisory, Monitoring, and Visitorial Power of the CHED. All LUCs shall
be subject to the monitoring, inspection, and evaluation of the CHED.

Pursuant to the provisions of Republic Act No. 7722, otherwise known as the “Higher
Education Act of 1994”, the CHED shall exercise supervisory power over LUCs. Through its


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regional offices, the CHED shall continue to monitor, inspect, evaluate, and provide technical
assistance to the LUCs.

The CHED shall, in the issuance of academic policies and standards affecting LUCs,
ensure quality assurance by taking into account the different characteristics, peculiar needs,
the distinct features of the LUCs, their organizational set-up, and their operation, among other
considerations: Provided, That the CHED shall, at all times, devise ways and practices that
will ensure that the LUCs will remain committed to the delivery of quality education to its
students.

SEC. 9. Governing Board of LUCs. The governing board of a College or Dalubhasaan
shall be its Board of Trustees (BOT), while the governing Board of a University or Pamantasan
shall be its Board of Regents (BOR).

The regular and special meetings of the BOT or BOR of the LUCs shall be specified in
the ordinance creating the LUC.

(a) Composition - The governing board of the LUC, shall be composed of the:
1) Local chief executive, as chairperson;
2) President of the LUC, as vice-chairperson;
and the following as members:
3) President of the duly recognized faculty association of the LUC;
4) President of the duly recognized student council of the LUC;

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President of the duly recognized alumni association:
6) Chairperson of the Committee on Education of the Sanggunian;
7) Treasurer of the LGU establishing the LUC;

8

Budget Officer of the LGU establishing the LUC; and

9

‘Two (2) representatives from the private sector who are of known probity and have
distinguished themselves in their respective professions or fields of expertise or
specialization in the municipality, city, or province where the LUC is located.

The two (2) private sector representatives shall be appointed by the local chief executive
and shall each serve a term of two (2) years from the date of their respective appointments.

(b) Term of Office ~ 1) The President of an LUC shall serve a full term in such capacity;
2) The presidents of the faculty association, student council, and the alumni association


shall sit in the Board and shall serve their respective terms of office in the associations
co-terminously, pursuant to their respective constitutions and by-laws. Such
associations shall conduct the election of its officials shortly before the end of terms of
the incumbents or within one (1) month prior to the expiration of their terms, otherwise
their positions in the Board shall be deemed expired.

(c) Vacancy - In case of a vacancy in the Board by reason of resignation, death, or the
incapacity of one or more of its appointed members, such vacancy shall be filled by
appointment by the local chief executive and the appointee shall hold office for the
unexpired portion of the term.

(d) Meetings — The Board shall regularly convene every month. The Chairperson of the
Board may call a special meeting whenever necessary: Provided, That members are
notified in writing at least three (3) calendar days prior to the said meeting.

(e) Quorum — A majority of the members of the Board holding office at the time of its
regular or special meeting shall constitute a quorum

(0) Compensation - The members shall serve without compensation other than
reimbursement for necessary expenses incurred in their attendance to meetings of the
Board or in connection with their official business, as may be authorized by resolutions
of the Board.

SEC. 10. Powers of the Board. The Board shall be the highest policymaking body of
the LUCs and shall have the following powers and functions:

(a) To promulgate policies in accordance with the declared policies on higher
education, as well as the policies, standards, and guidelines of the CHED under
Republic Act No. 7722, otherwise known as the “Higher Education Act of 1994”
and other pertinent laws;

(b) To promulgate rules and regulations consistent with existing laws, rules, and
regulations as may be necessary to carry out the purposes and functions of the LUC;

(c) To receive assistance from the LGU to augment the internal sources of funds, as
may be provided, to carry out the purposes and functions of the LUC;

(a) To fix the tuition fees and other school charges as the Board may deem proper to
impose after due consultations with the relevant sectors: Provided, that these fees
shall be based on the guidelines of the CHED and not prohibitive or unreasonable
as to deviate from the purpose for which the LUCs are created;

(e) To appoint, upon the recommendation of the President, vice presidents, deans,
executive directors, heads of departments, faculty, and other officials and
employees;


() To develop consortia and other academic linkages and, other forms of networks
with the LGUs, industries, institutions and agencies, both public and private, local
and foreign: Provided, That these comply with the applicable guidelines of the
CHED in furtherance of the purposes and objectives of the LUCs, as well as
develop academic arrangements for institution capacity and capability building
with appropriate institutions and agencies, public and private;

(g) To determine and approve curricular programs and course offerings in response to
the needs and demands of the community and based on local and regional
development initiatives: Provided, That these comply with the minimum CHED
requirements and its PSGs;

(h) To promulgate policies on admission, retention, and graduation of students in
conformity with the guidelines of the CHED, and to award degrees, titles, diplomas,
and certificates;

(i) To ensure the efficient management of nonacademic services, such as medical and
dental, guidance counseling, property maintenance;

(D) To institutionalize research and extension programs and establish research and
extension centers where such will promote the development of the LUCs;

(k) To appoint the President of the LUC upon the recommendation of the search
committee;

(1) To confirm the appointments of other school officials, teaching, and nonteaching
personnel appointed by the President of the LUC;

(m)To approve rules of discipline for the administrative and academic staff and
students of the college or university to ensure orderly and effective governance
thereof,

(n) To award honorary degrees upon persons in recognition of outstanding contribution
in the field of education, public service, arts, science and technology or any field of
specialization within the academic competence of the university or college and to
authorize the issuance of certificates of completion of non-baccalaureate programs
and nontraditional or innovative courses: Provided, That these conform to the
applicable guidelines of the CHED and the Technical Education and Skills
Development Authority;

(0) To establish professorial chairs in the LUC and to provide fellowships for qualified
faculty and scholarships to deserving students;

(p) To appoint experts and specialists as consultants, or visiting or exchange professors,
scholars, researchers, as the case may be: Provided, That such appointment
conforms to the CHED guidelines;


(q) To set up the adoption of modern and innovative modes of transmitting knowledge
such as the use of information technology, the dual training system, and open
distance learning, for the promotion of greater access to education;

(¥) To submit to the Local Chief Executive or to the Sangguniang Panlungsod,
Sangguniang Bayan or Sangguniang Panlalawigan an annual detailed report,
setting forth the status, progress, needs, goals of the LUC; and

(3) To delegate any of its power and duties to the President or the other officials of the
LUC as it may deem appropriate so as to expedite the administration of the affairs
of the university or college.

SEC. 11. Administration of LUCs. The administration of each LUC shalll be vested in
the President who shall render full-time service to implement policies promulgated by the
Board.

The Board shall, upon the recommendation of a duly constituted search committee,
appoint the President for a term of four (4) years, subject to reappointment for another term
only.

The President of the LUC must preferably have a Doctorate Degree or a Master’s degree
in education, administration, or other related fields, with at least three (3) years of relevant
administrative experience, without prejudice to provision of additional qualifications to be set
by the Board of the LUC.

Sec. 12. Vacancy in the Office of the President. In case of a 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 the office, the Board shall, within a
period of thirty (30) days, designate an officer-in-charge of the LUC pending the appointment
of a new President.

The powers and duties of the President of the LUC, in addition to those specifically
provided in this Act, shall be similar to those usually pertaining to the Office of the President
of other LUCs, and those delegated by the Board.

Sec. 13. Search Committee. In case of vacancy in the Office of the President brought
about by any of the causes mentioned in the preceding Section, the Board shall organize and
convene a Search Committee for the Presidency, which shall evaluate and present to the Board
the qualifications of the candidates for President of the LUC.

The Search Committee for the Presidency shall have five (5) members to be appointed
by the Board. The members shall each represent the following: a) CHED; b) the Association
of Local Colleges and Universities (ALCU); c) the concerned | GU, d) the academe; and e) the
business or industry sector. It shall elect a Chairperson and Vice-Chairperson and shall ensure


that the new LUC President is elected not later than three (3) months from the time that the
position is vacant.

Sec. 14. The Secretary of the LUC and the Secretary of the Board. There shall be a
Secretary of the LUC who shall be appointed by the Board as Secretary of the Board upon
recommendation of the University President. The Secretary of the Board shall be the custodian
of all official records of the LUC.

SEC. 15. Elevation of a Local College to the Status of a University. A \ocal college,
upon the recommendation of the Board to the Sangguniang Bayan, or Sangguniang
Panlungsod, or Sangguniang Panlalawigan, may subsequently apply with the CHED for
university status: Provided, That it has complied with the requirements of the CHED and has
undergone the appropriate process of accreditation by a reliable accreditation body that
subsequently found the college to be prepared for reclassification as a university: Provided
further, That a local college, upon conversion into a local university, shall continue to be
operated by the concerned LGU in coordination with the CHED.

The proposal for classification to a university status shall be submitted to the CHED
Central Office, through the CHED Regional Office, for review. Only the CHED en banc shall
grant the “University” status upon compliance with the requirements.

No new local HEI shall be established immediately as a local university or
pamantasan. A local HEI established by an LGU shall be known as a local college or
dalubhasaan ot any other typology assigned by the CHED in accordance with developments.
in the Philippine Higher Educational System.

SEC. 16. Existing LUCs. In the interest of efficient control and supervision by the
CHED, all LUCs existing at the time of the effectivity of this Act shall be allowed to continue
their operation, subject to compliance with the requirements of this Act within a non-
extendible period of three (3) years. Non-compliance with the requirements of this Act shall
result in the phaseout of the programs being offered by the concerned LUC.

SEC. 17. Existing Local Postsecondary Educational Institutions. Local
postsecondary educational institutions offering only pre-professional training or non-
baccalaureate programs shall not use “College” or “University” in its name unless they have
complied with the requisites provided for the establishment of a college or the grant of
university status under the CHED rules and regulations: Provided, That existing local post-
secondary educational institutions which have been using the name “college” or “university”
prior to the passage of this Act shall be allowed to retain such name: Provided further, That
said educational institutions shall be given a grace period by the CHED to comply with the
requirements for the status of “college” or “university” or any other typology assigned by the
CHED in accordance with developments in the Philippine higher educational system.

SEC. 18. Penalties for Non-Compliance. Any person found violating any of the
provisions of this Act shall be subject to an administrative fine of up to Five hundred thousand


pesos (P500,000.00), depending on the severity of the violation, as may be determined in the
Implementing Rules and Regulations of this Act.

SEC. 19. Implementing Rules and Regulations. Within ninety (90) days from the
effectivity of this Act, the CHED shall, in coordination with the Department of the Interior and
Local Government, the ALCU, and other relevant stakeholders promulgate the rules and
regulations to carry out the provisions of this Act.

SEC. 20. Exclusion Clause. This Act shall apply to all LUCs duly created by their
ordinances enacted for that purpose, except for the Pamantasan ng Lungsod ng Maynila (PLM),
which was created by virtue of Republic Act No. 4, entitled “An Act Authorizing the City of
Manila to Establish and Operate the University of the City of Manila and for Other Purposes”.
However, in so far as faculty qualifications, curriculum and instruction, and facilities are
concerned, the PLM shall be governed by this Act.

SEC. 21. Separability Clause. If any provision of this Act shall be held
unconstitutional or invalid, the remaining provisions which are not affected thereby shall
continue to be in full force and effect.

SEC. 22. Repealing Clause. All laws, executive orders, decrees, instructions, rules and
regulations and other issuances, or parts thereof, contrary to or inconsistent with this Act are
modified, amended or repealed accordingly.

SEC. 23. Effectivity. This Act shall take effect fifteen (15) days after its publication
in the Official Gazette or in a newspaper of general circulation.

Approved,