SEVENTEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
S econd R e g u la r S ession
>;rv ■ 
of III: r.v Tff.trp
*17 JUN-8 P5S5
SENATE
S. B. No. 1488
RECtiVcJ c
In tro d u ced  by SENATOR WIN GATCHALIAN
AN ACT
PRESCRIBING THE MANDATORY GUIDELINES ON THE 
ESTABLISHMENT AND OPERATION OF LOCAL UNIVERSITIES AND 
COLLEGES AND FOR OTHER PURPOSES
EXPLANATORY NOTE
Section 1, Article XIV of the 1987 Philippine Constitution m andates 
that the State shall protect and promote the right of all citizens to quality 
education at all levels and shall take appropriate steps to m ake education 
accessible to all. Further, Section 2, Article XIV of the aforesaid provides 
that the State shall establish, m aintain and support a complete, adequate 
and integrated system  of education relevant to the needs of the people and 
society and that the State shall encourage self-learning, independent and 
out-of-school study program s particularly those th at respond to com m unity 
needs.
Pursuant 
to 
this 
constitutional 
m andate, 
a 
num ber of local 
governm ent units have taken the initiative to m ake higher education 
accessible to their constituents by establishing Local Universities and 
Colleges (LUCs) created through ordinances of their respective Sanggunians 
as set forth under Republic Act No. 7160 or the Local Government Code of 
1991.


With the increasing num ber of LUCs, the Association of Lxjcal Colleges 
and Universities (ALCU) was established, followed by the formal organization 
of Association 
of 
Local 
Colleges 
and 
Universities 
Commission 
on 
Accreditation (ALCUCOA) in 2003. The role of ALCUCOA is vital in ensuring 
th at there is sufficient quality assurance among the m em ber schools in the 
country. At present, ALCUCOA has only accredited 15 LUCs out of 102 LUCs 
that it has recognized.
The creation of LUC within a particular Local Government Unit is a 
comm endable effort to provide greater access and equitable distribution of 
opportunities for Filipinos to acquire higher education. However, in order 
that optim um  standard is achieved in the form ulation and im plem entation 
of policies on higher education, there is a need to prescribe and 
institutionalize the guidelines on the establishm ent and operation of these 
LUCs.
This m easure seeks to prescribe the m andatory standards for the 
establishm ent and operation of LUCs to ensure th at quality education is 
given param ount consideration by LGUs when creating a higher education 
institution. This bill recognizes the need to enforce the supervisory and 
regulatory powers of CHED to m ake certain th at LUCs have the capacity to 
operate as a higher education institution and offer degree program s that will 
shape the future of their students. Furtherm ore, this bill likewise institutes 
the param eters to shield its operation and adm inistration from undue 
influence of partisan politics.
Thus, the passage of this bill is earnestly sought.


SEVENTEENTH CONGRESS OF THE 
]
REPUBLIC OF THE PHILIPPINES 
]
S econd R e g u la r S ession 
]
' 
i '' Off'rr cl llir si^rrrrtair
*17 JUN-8 P5 55
SENATE
S. B. No. 1488
RECtlVC J 3V.
C = 5 -
In tro d u ced  by SENATOR WIN GATCHALIAN
AN ACT
PRESCRIBING THE MANDATORY GUIDELINES ON THE 
ESTABLISHMENT AND OPERATION OF LOCAL UNIVERSITIES AND 
COLLEGES AND FOR OTHER PURPOSES
Be it enacted by the Senate and the House of Representatives of the 
Philippines in Congress assem bled:
1 
SEC. 1. S h o rt Title. -  This Act shall be known as the “Local
2 
Universities and Colleges Governance Act.”
3 
SEC. 2. D eclaratio n  o f Policy. -  It is the policy of the State to
4 
establish, m aintain and support a complete, adequate and integrated
5 
system  of education relevant to the needs of the people and society.
6 
Towards this end, the m andatory guidelines on the establishm ent of Local
7 
Universities and Colleges (LUCs) is prescribed to achieve a standard and
8 
integrated system  of higher education and provide a relevant direction in
9 
their governance.
10 
SEC. 3. D efinition o f Term s. -  As used in this Act, these term s shall
11 
mean:


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a. A sso ciatio n  o f L ocal C olleges a n d  U niversities (ALCU) -  The
2 
association of local colleges and universities in the Philippines th at
3 
was established in 2003 to improve the quality of instruction,
4 
research, and extension of its m em ber schools and to provide
5 
quality public tertiary education.
6 
b. C om m ission on H igher E d u ca tio n  (CHED) -  The governm ent
7 
agency created by Republic Act No. 7722, otherwise known as the
8 
“Higher Education Act of 1994”, which has jurisdiction over all
9 
public and private higher education institutions (HEls) in the
10 
Philippines.
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c. G overning B o ard  -  The highest policy-making body of a local
12 
university or college.
13 
d. L ocal U niversity o r College (LUC) -  The public higher education
14 
institution established by a local governm ent unit through an
15 
enabling ordinance.
16 
e. L ocal G overnm ent U nit (LGU) -  Any m unicipality, city or
17 
provincial governm ent th at created or established the LUC.
18 
f. O rd in an ce -  The enabling act of the Sangguniang Bayan,
19 
Panglunsod or Panlalawigan that creates a particular LUC.
20 
g. S an g g u n ian  -  
The 
local 
legislative 
body 
which 
includes
21 
Sangguniang 
Bayan 
for 
Municipality, 
and 
Sangguniang
22 
Panlalawigan for Province.
23 
SEC. 4. C overage -  This Act shall apply to the following:
24 
a) Existing LUCs; and
25 
b) New higher educational institutions to be established by any LGU.
26 
SEC. 5. E sta b lish m e n t o f LUCs -  All LUCs shall be established
27 
through an ordinance duly enacted for th at purpose by the Sanggunian
28 
concerned provided th at prior to the enactm ent of the same, the LGU


1 
establishing a higher education institution shall consult and coordinate
2 
with CHED, through the Regional office having jurisdiction of the place
3 
where the institution is intended to be established to ensure full compliance
4 
with the m andatory requirem ents as set forth in this Act.
5 
SEC. 6. M an d ato ry  R equirem ents fo r  th e  E sta b lish m e n t o f LUC -
6 
The CHED shall strictly require all LUCs to subm it the following
7 
requirem ents for review and approval:
8 
a. Feasibility study th at shall include but shall not be limited to the
9 
following discussions: 1) the necessity for a local higher education
10 
institution in the area, 2) hum an resource requirem ents of the
11 
industry to determ ine proposed program  offerings, 3) target
12 
offerings, 3) availability of qualified adm inistrators, faculty and
13 
non-teaching personnel and 4) financial capacity of the LGU to
14 
establish and sustain the operation of an LUC;
15 
b. Certification of availability of funds by the treasurer of the LGU
16 
concerned, as provided for under the pertinent provisions of the
17 
Local Government Code of 1991;
18 
c. A project development plan to show th at the LGU allocated a
19 
school site with appropriate size and location p u rsu an t to the
20 
applicable provisions of the Building Code of the Philippines,
21 
blueprint of architectural design for its buildings and other
22 
physical facilities and provisions for acquisition of instructional
23 
m aterials and equipm ent that comply with CHED M emorandum
24 
Orders (CMOs) pertinent to the program  offered;
25 
d. A five-year institutional development plan duly approved by the
26 
Sanggunian which shall include but shall not be limited to the
27 
following: 
a) 
annual 
budgetary allocation; 
b) 
organizational
28 
structure and composition of the governing board; and c) plantilla
29 
of positions as provided for in the Association of Local Colleges and
30 
Universities (ALCU) Unified Merit System duly approved by the
3


Civil Service Commission;
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e. A duly established LUC shall require the im prim atur of the CHED 
prior to the offering of a higher education program. The Chairm an 
of the governing board, or its President when so authorized by the 
governing board, shall file with CHED an application to offer a 
higher education program. The application shall be supported with 
docum ents indicating compliance with the policies and standards 
relative to such degree program.
9 
Sec. 7. S upervisory a n d  V isitorial Pow ers o f CHED. -  All LUCs are
10 
subject to the annual inspection and evaluation of CHED, unless there are
11 
compelling reasons which may require further review and evaluation.
Sec. 8. The G overning B o ard  o f LUCs.
a) Composition- The governing body of local universities and colleges 
shall be composed of the following:
i. 
Local Chief Executive as Chairm an;
ii. 
President of the LUC as Vice-Chairman;
iii. 
President of the duly recognized faculty association of 
the LUC as member;
iv. 
President of the duly recognized student council of 
the LUC as member;
V. 
President of the alum ni association as member;
vi. 
C hairm an 
of 
the 
Sangguniang 
Committee 
on 
Education as member;
vii. 
ALCU representative as member;
viii. 
Two (2) representatives from CHED with rank not 
lower than Director as members;
ix. 
T reasurer of the local governm ent unit establishing 
the LUC;
X. 
Budget 
Officer 
of 
the 
local 
governm ent 
unit 
establishing the LUC;


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xi. 
Two (2) representatives from the private sector, who 
are of known probity and should have distinguished 
them selves in their respective professions or fields of 
specialization, in the municipality, city, or province 
where the local university or college is located. They 
shall be appointed by the Local Chief Executive and 
shall each serve for a term  of two (2) years from the 
date of their respective appointm ents.
b) Term of Office - The presidents of the faculty association, the 
student council, and the alum ni association shall sit in the Board 
until the expiration of their term  of office in such capacities. The 
two (2) representatives from the private sector shall serve for a 
term  of two (2) years.
c) Meetings- The Governing Board shall regularly convene every 
m onth. The Chairm an of the Board may call for a special meeting 
whenever necessary. Provided, T hat m em bers are notified in 
writing at least three (3) days prior to said meeting.
d) Quorum- A majority of all the m em bers of the governing board 
holding office at the time of its regular or special meeting shall 
constitute a quorum .
22 
SEC. 9. Pow ers o f th e  G overning B oard. - The governing board of
23 
the LUCs shall have the following powers and duties:
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a) To prom ulgate policies in accordance with the declared state 
policies on higher education as well as the policies, standards and 
th ru sts of the CHED under R.A No. 7722 and other pertinent laws;
b) To prom ulgate rules and regulations consistent with existing laws, 
rules and regulations as may be necessary to carry out the 
purposes and functions of the LUC;


1 
c) To develop academ ic arrangem ents and linkages for institutional
2 
capability building with appropriate institutions and agencies, both
3 
public and private, local and foreign;
4 
d) To determ ine and approve curricular program s and course
5 
offerings in response to the needs and dem ands of the com m unity
6 
provided th at these should comply with policies and guidelines set
7 
by CHED;
8 
e) To prom ulgate policies on adm ission, retention and graduation of
9 
students and to award degrees, titles, diplom as and certificates;
10 
f) To ensure the efficient m anagem ent of non-academ ic services such
11 
as medical 
and 
dental, 
guidance and counseling, 
property
12 
m aintenance and sim ilar services;
13 
g) To institutionalize research and extension programs;
14 
h) To appoint the President of the local university or college upon the
15 
recom m endation of the search committee;
16 
i) To confirm appointm ents of other school officials, teaching and
17 
non-teaching personnel appointed by the President;
18 
j) To delegate any of its powers and duties provided for herein to the
19 
President a n d /o r other officials of the university or college as it
20 
may deem appropriate in order to expedite the adm inistration of
21 
the affairs of the LUC;
22 
k) To fix the tuition fees, m iscellaneous fees and other school charges
23 
as the board may deem proper to impose after due consultations
24 
with the involved sectors.
25 
SEC. 10. A d m in istra tio n  o f th e  LUC. -  The adm inistration of the
26 
local university or college shall be vested in the President who shall render
27 
full-time service. He shall be appointed by the governing board upon the
28 
recom m endation of a duly constituted search committee.


1 
The 
President 
shall 
hold 
a 
doctoral 
degree 
in 
education,
2 
adm inistration or other related fields, and should have at least five (5) years
3 
of relevant adm inistrative experience, w ithout prejudice to the provision of
4 
additional qualifications to be set by the governing board of the LUC.
5 
In case of vacancy in the Office of the President by reason of death,
6 
compulsory retirem ent, resignation, removal for cause or incapacity of the
7 
President to perform the functions of his office, the Board shall have the
8 
authority to designate an Officer-in-Charge of the LUC pending the
9 
appointm ent of a new president.
10 
The powers and duties of the President of the LUC, in addition to
11 
those specifically provided in this Act, shall be those usually pertaining to
12 
the Office of the President of other colleges, and those delegated by the
13 
Board.
14 
The salary of the President of the LUC shall be set by the Board,
15 
taking into consideration the applicable civil service rules and regulations
16 
and ensuring th at the sam e shall be com parable to th at being received by
17 
the presidents of sim ilar educational institutions.
18 
The vice-presidents, deans, directors, heads of departm ents, faculty,
19 
non-teaching personnel and such other officials and employees of the LUC
20 
shall be appointed by the president, subject to confirm ation of the Board.
21 
The appointm ents of these LUC officials and employees shall conform to
22 
existing civil service laws, rules and regulations.
23 
The aforem entioned officers and employees may be removed from
24 
office for causes established under the rules on civil service.
25 
SEC. 11. S e a rc h  Com m ittee. -  In case of vacancy in the Office of the
26 
President brought about by any of the causes m entioned in the preceding
27 
section, the governing board shall organize and convene a Search
28 
Committee for the selection of a president.
29
The Search Committee shall have five (5) m em bers to be appointed by


1 
the governing board from am ong its m em bers. It shall elect a C hairm an and
2 
Vice-Chairman and shall ensure that the new LUC president is selected
3 
within three (3) m onths from the time the position is vacated.
4 
SEC. 12. E levation to  U niversity S ta tu s  -  A new local higher
5 
education institution shall start as a local college and the grant of a
6 
university statu s is contingent upon the satisfaction of all requirem ents
7 
embodied under the rules and regulations of CHED.
8 
SEC. 13. P e n a ltie s f o r  Non-Com pliance. -  LUCs are m andated to
9 
comply with the requirem ents set forth under this Act.
10 
Any person who acts in violation of this section shall incur
11 
adm inistrative liabilities as may be determ ined in the im plem enting rules
12 
and regulations.
13 
SEC. 14. E x istin g  LUCs -In the interest of efficient control and
14 
regulation by CHED, LUCs which are already existing at the time of the
15 
effectivity of this Act shall be allowed to continue its operation for a non-
16 
extendible period of one (1) year to comply with the requirem ents set forth
17 
herein and its IRR.
18 
SEC. 15. Im plem enting R ules a n d  R egulations. -  The Commission
19 
on 
Higher 
Education, 
in 
coordination 
with 
relevant 
sectors, 
shall
20 
prom ulgate the implementing rules and regulations as may be necessary to
21 
carry out the provisions of this Act.
22 
SEC. 16. S e p a ra b ility  C lause. - Should any part of this Act be
23 
declared unconstitutional, the rest of the provisions of this Act shall
24 
continue to be in effect and subsisting.
25 
SEC. 17. R ep ealin g  C lause. - The provisions of other laws, decrees,
26 
executive orders, rules and regulations inconsistent with this Act are hereby
27 
repealed, am ended, or modified accordingly.
28
SEC. 18. E ffectivity. - This Act shall take effect fifteen (15) days after