Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City, Metro Manila

EIGHTEENTH CONGRESS
First Regular Session

House Bill No, 224

Introduced by DIWA Party-list Representative Hon. Michael Edgar Y. Aglipay

EXPLANATORY NOTE,

Education is a human right, guaranteed by international conventions and our basic law
It is "a fundamental human right and essential for the exercise of all other human rights. It
promotes individual freedom and empowerment and yields important development benefits."
Article XIV, Section | of the 1987 Philippine Constitution says that: “The State shall protect
and promote the right of all citizens to quality education at all levels, and shall take appropriate
steps to make such education accessible to all.”

Education, particularly higher education, remains a costly proposition for most Filipino
students. In response certain local government units have taken it upon themselves to establish,
through ordinances of their respective sanggunians, local colleges and universities (LCUs)
within their territorial jurisdiction under the provisions of the Local Government Code of 1991
or Republic Act No. 7160. This initiative is laudable, but a legal framework is necessary to
provide definite and centralized guidelines on the establishment of these LCUs. To this end,
this bill, a re-filing of House Bill 3565 of DIWA Party-list filed during the 17 Congress,
rationalizes the creation of LCUs facilitate and improve the creations of these institutions of
higher learning.

+ http//wnw.unesco.org/new/en/education/themes/leading-the-international-agenda/right-to-education/

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Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City, Metro Manila

EIGHTEENTH CONGRESS
First Regular Session
524

House Bill No. _~*

Introduced by DIWA Party-list Representative Hon. Michael Edgar Y. Aglipay

AN ACT

PROVIDING GUIDELINES FOR THE ESTABLISHMENT AND OPERATION OF
LOCAL COLLEGES AND UNIVERSITIES, AND FOR OTHER PURPOSES

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

SECTION 1. Short Title. ~ This Act shall be known as “The Local Colleges and
Universities Governance Act.”

SEC. 2. Declaration of Policy. ~ It is the policy of the State to protect and promote the
right of all citizens to quality education at all levels and to take appropriate steps to make
education accessible to all. In doing so, the State shall establish, maintain and support a
complete, adequate and integrated system of education relevant to the needs of the people and
society and that it shall take into account regional and sectoral needs and conditions and shall
encourage local planning in the development of educational policies and programs.

SEC. 3. Definition of Terms. — As used in this Act, the terms enumerated below shall
have the following meaning:

(a) “Local College or University” or “LCU” refers to a public higher education
institution established by a local government unit through an enabling ordinance, and
financially supported by the concerned local government unit. In Filipino, an LCU is
referred to as “Dalubhasaan” for college and “Pamantasan” for university;

(b) “Ordinance” refers to the enabling act of the Sangguniang Bayan,

Panglunsod or Panlalawigan that creates a particular local college or university and
serves as the charter of the said local college or university;

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(c) “Degree Program” refers to a collection of all courses in a discipline or a
field of study leading to an undergraduate or graduate degree, and may also be referred
to as academic program:

(d) “Non-degree Program” refers to a post-secondary program below the
bachelor degree;

(©) “Local Government Unit” or “LGU” refers to municipalities, cities and
provinces that created or established the local college or university;

(® “College or Dalubhasaan” is an institution of higher learning offering
academic programs and usually pre-professional training leading to a bachelor’s
degree;

(@) “University or Pamantasan” is an institution made up of an undergraduate
division that offers bachelor’s degree and a graduate division that comprises a graduate
school and professional schools, each of which may confer Master’s degrees and
doctorates. It is an entire socio-physical infrastructure comprised of Schools, Colleges,
and Institutes offering degree programs in various disciplines and levels;

SEC. 4. Coverage. — The provisions of this Act shall apply to:

(a) New higher education institutions to be established by local government
units by virtue of a local ordinance:

(b) Higher education institutions established and operated by local government
units offering non-degree programs but would eventually offer degree programs,

(©) Local colleges proposing elevation to university status; and

(d) Existing local colleges or universities which have not met the standards
prescribed in this Act

SEC. 5. Establishment of Higher Education Institutions by LGUs. - All LCUs shall be
established and/or operated through an Ordinance duly enacted for that purpose by the
Sanggunian concerned. Provided, that before the enactment of said Ordinance, an LGU
establishing a higher education institution shall consult and coordinate with the Commission
on Higher Education (CHED) to ensure observance of the necessary requirements for the
establishment and subsequent effective operation of a college.

SEC. 6. Use of “College” or “University”. — A local higher education institution
established by a local government unit shall be known as a College. A local college may
subsequently apply for elevation to a university provided it has complied with the standards
and guidelines for the grant of university status pursuant to the pertinent CHED rules and
regulations and that it has followed the appropriate process of accreditation conducted by a
reliable accreditation body which found the college prepared to be elevated into a university

Local educational institutions offering only non-degree programs shall not use College
or University in its name unless they would eventually offer degree programs and have
‘complied with the requisites provided for the establishment of a College or the grant of
university status under the CHED rules and regulations.

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SEC. 7. Funding of LCUs. ~ There shall be a provision for the regular annual
appropriation from the local government unit to support and sustain the operation of the LCU.

SEC. 8. Governing Board of a Local College or University. ~ 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. The governing boards of a local college
or university shall be composed of the following:

(a) Local Chief Executive as Chairman;

(b) President of the LCU as Vice-Chairman;

(©) President of the duly recognized faculty association of the LCU as member;
(d) President of the duly recognized student council of the LCU as member;
(©) President of the alumni association as member;

(®) Chairman of the Sangguniang Committee on education as member;

(g) Regional Director of CHED as member;

(h) Two (2) representatives from the private, each of them should have distinguished
him/herself in his/her profession or field of specialization, as member.

‘The two (2) representatives from the private sector shall be appointed by the Local
Chief Executive and shall each serve for a term of two years from the date of their respective
appointments.

The terms of office of the President of the faculty association, the President of the
student council, and the President of the alumni association shall be coterminous with their
respective terms of office in their respective associations pursuant to the provisions of ‘their
respective duly-approved constitutions and by-laws.

SEC. 9. Powers of the Governing Board. ~ The governing boards shall promulgate
policies in accordance with the declared state policies on higher education, in line with the
principle of local autonomy enshrined by Republic Act No. 7160 or the “Local Government
Code of 1991.”

‘The CHED, in the issuance of academic policies and standards affecting LCUs, shall
take into account the different characteristics and distinct features of the LCUs, its
organizational set-up, as well as the operations of the LCUs; Provided, that CHED shall, at all
times, devise ways and practices that will ensure that LCUs will remain committed to the
delivery of quality education to its students.

The governing board shall have the following specific powers and duties, in addition to
its general powers of administration and the exercise of all the powers granted to the board of
directors of a corporation under Section 36 of Batas Pambansa Blg. 68, otherwise known as
the Corporation Code of the Philippines:

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(a) To enact rules and regulations not contrary to law as may be necessary to
carry to carry out the purposes and functions of the university or college:

(b) To receive and appropriate all sums as may be provided, for the support of
the university or college in the manner it may determine, in its discretion, to carry out
the purposes and functions of the university or college;

(©) To receive in trust legacies, gifts and donations of real and personal
properties of all kinds, to administer and dispose the same when necessary for the
benefit of the university or college, subject to limitations, directions and instructions of
the donors, if any. Such donations shall be exempt from all taxes and shall be
considered as deductible items from the income tax of the donor,

(d) To fix the tuition fees and other necessary school charges, such as but not
limited matriculation fees, graduation fees and laboratory fees, as the board may deem
proper to impose after due consultations with the involved sectors; Provided, that these
fees will not be prohibitive ore unreasonable as to deviate from the purpose for which
the LCUs are created.

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

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

If, for reason of control, the university or college, shall not be able to pursue
any project for which funds have been appropriated and, allocated under its approved
program of expenditures, the Board of Regents/Trustees 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 universities or college;

(©) To adopt and implement a socialized scheme of tuition and school fees for
greater access to poor but deserving students;

(© To authorize the construction or repair of its buildings, machineries,
equipment, and other facilities, as well as the purchase and acquisition of real and
personal properties, including necessary supplies, materials and equipment. Purchases
and other transactions entered into by the university or college through the Board of
Regents/Trustees shall be exempt from all taxes and duties, subject ot applicable BIR
(Bureau of Internal Revenue) rules and regulations;

(g) To appoint, upon the recommendation of the president of the university or

college, vice presidents, deans, directors, heads of departments, faculty members and
other officials and employees;

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(h) To fix and adjust salaries of faculty members and administrative officials
and employees, subject to the provisions of the revised compensation and classification
system and other pertinent budget and compensation laws governing hours of service,
and such other duties and conditions as it may deem proper; to grant them, at its
discretion, leaves of absence under such regulations as it may promulgate, any
provisions of existing law to the contrary not with standing: and to remove them for
cause in accordance with the requirements of due process of law;

(i) To approve the curricula, and institutional programs of the institution:
Provided, that it conforms with the CHED guidelines

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

(k) To set polices on admission and graduation of students;

(m) To award honorary degrees upon persons in recognition of outstanding
contribution in the field of education, public service, arts, science and technology or in
any field of specialization within the academic competence of the university or college
and to authorize the award of certificates of completion of non-degree and non-
traditional courses; Provided, that these conforms with the applicable guidelines of the
CHED;

(n) To establish research and extension centers of the LCU where such will
promote the development of the latter;

(0) To establish chairs in the university or college and to provide fellowships
for qualified faculty members and scholarships to deserving students;

(p) To delegate any of its powers and duties provided for hereinabove to the
president and/or other officials of the university or college as it may deem appropriate
0 as to expedite the administration of the affairs of the university or college;

(q) To authorize an external management audit of the institution, to be
coordinated with CHED and to institute reforms, including academic and structural
changes, on the basis of the audit results and recommendations;

(F) To enter into joint ventures with business and industry for the profitable
development and management of the economic assets of the college or university, the
proceeds from which to be used for the development and strengthening of the college
or university:

(8) To develop consortia and other forms of linkages with local government
units, institutions and agencies, both public and private, local and foreign, in
furtherance of the purposes and objectives of the institution;

(8) To develop academic arrangements for institution capability building with
appropriate institutions and agencies, public or private, local or foreign, and to appoint
experts/specialists as consultants, or visiting or exchange professors, scholars,
researchers, as the case may be;

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(u) To set up the adoption of modem and innovative modes of transmitting
knowledge such as the use of information technology, the dual system, open learning.
community laboratory, etc., for the promotion of greater access to higher education:

(v) To establish policy guidelines and procedures for participative decision-
making and transparency within the institution;

(w) _ To privatize, where most advantageous to the institution, management
and non-academic services such as health, food, building or grounds or property
maintenance and similar such other objectives: and

(x) To extend the term of a president of the college or university beyond the age
of retirement but not later than the age of seventy (70), whose performance has been
unanimously rated as outstanding and upon unanimous recommendation by the search
committee for the president of the institution concemed.

SEC. 10. Administration of the LCU.- The administration of the local college or
university shall be vested in the President who shall render full-time service to implement
policies promulgated by the Goveming Board. He/She shall be appointed by the Governing
Board upon the recommendation of a search committee duly constituted by the Board.

‘The President of the LCU shall have a term of four (4) years and shall be eligible for
reappointment for another term, unless otherwise provided for in the ordinance creating the
LCU.

‘The president shall hold an appropriate eared doctoral degree and should have at least
five (5) years of relevant administrative experience, without prejudice to the provisions of
additional qualifications to be set by the governing board of the LCU.

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/her office, the Board shall have the authority to designate an Officer-in-Charge
of the College pending the appointment of a new President.

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

The salary of the President of the LCU shall be set by the Board, taking into
consideration the applicable civil service rules and regulations and ensuring that the same shall
be comparable to that being received by the presidents of similar educational institutions.

The vice-presidents, deans, directors, heads of departments, faculty, non-teaching
personnel and such other officials and employees for the effective operation of the LCU shall
be appointed by the Board, taking into consideration the recommendation of the President. The
appointments of these LCU officials and employees shall be conformity to existing civil service
laws, rules and regulations

SEC. 11, Search Committee for President of an LCU. — Six (6) months before the
expiration of the term of office of the incumbent President, the Governing Board shall appoint
a Search Committee for President. The Search Committee for President of the LCU shall have
five (5) members to be appointed by the Governing Board. The composition of the search

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commutee should include a representative from the local government unit concerned, the
academe. the Association of Local Colleges and Universities (ALCU), the faculty and the
business sector. They shall elect a Chairman and Vice-Chairman from among themselves.

SEC. 12, Grant of University Status. - The proposal for elevation to University status
shall be submitted to the Office of Programs and Standards, CHED Central Office, through the
CHED Regional Office for review. Only the Commission en banc may grant the University
status upon compliance with the requirements.

SEC. 13, Implementing Rules and Regulations. - The Commission on Higher
Education (CHED), in coordination with the Department of interior Local Government (DILG)
and the Association of Local Colleges and Universities (ALCU), shall promulgate the
implementing rules and regulations as may be necessary to carry out the provisions of this Act.

SEC. 14. 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 full force and effect.

SEC. 15, Repealing Clause. — All laws, decrees, executive orders, rules and regulations,
and other issuances, or parts thereof, contrary to or inconsistent with this Act are hereby
modified, amended or repealed accordingly

SEC. 16. Effectivity. ~This Act shall take effect fifteen (15) days after its publication
in the Official Gazette or in at least two (2) newspapers of general circulation.

Approved,

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