SIXTEENTH CONGRESS )
REPUBLIC OF THE PHILIPPINES )
First Regular Session )

HOUSE OF REPRESENTATIVES

Introduced by Representative Rufus B. Rodriguez‘and _
Representative Maximo B. Rodriguez, Jr.

House Bill Nox 458

EXPLANATORY NOTE

Section 1, Article XIV of the 1987 Philippine Constitution provides that:

Section 1. 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.

‘As such, numerous Local Government Units (LGUs) have established colleges and
universities in their territorial jurisdiction thru their local ordinances And while we agree that
the establishment of these universities and colleges is vital to provide access to education to
their constituents, it must be kept in mind that what is important is not merely access to
education but access to quality education.

Without a list of definitive guidelines, many of these universities and colleges end up
being sub-par, This bill recognizes the need to rationalize the creation of local universities
and colleges to upgrade and improve the delivery of quality and accessible higher education
to the people.

In view of the foregoing, immediate approval of this bill is earnestly requested

\

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RUFUS B. RODAIGUEZ

Ne.
MAXIMO B, RODRIGUEZ, JR.


SIXTEENTH CONGRESS )
REPUBLIC OF THE PHILIPPINES )
First Regular Session )

HOUSE OF REPRESENTATIVES.

Introduced by Representative Rufus B. Rodriguez and
Representative Maximo B. Rodriguez, Jr.

House Bill N# 458

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 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 herein shall have
the following meaning:

a. Local Higher Education Institution (HEl)/Local College or University (LCU) -
refers to a public HEI established by a local government unit through an
establishing ordinance, and financially supported by the concerned local
government unit. In Filipino, an LCU js referred to as “Dalubhasaan" for
college and "Pamantasan” for university.

b. Ordinance - refers to the enabling act of the Sangguniang Pambarangay,
Panglunsod or Panlalawigan that creates a particular LCU and serves as the
charter of said LCU.

c. Degree Program - refers to a collection of all courses in 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 academic and vocational
program below the bachelor’s degree.

e. Local Government Unit or LGU - refers to municipalities, cities and provinces
that created or established the LCU.


f. College or Dalubhasaan — refers to an HEI offering academic programs and
usually pre-professional training leading to a bachelor’s degree.

9. (9) University or Pamantasan — refers to an institution made up of an
undergraduate division that offers bachelor’s degree and graduate division
that comprises a graduate school and professional schools each of which
may confer master’s and doctorate degrees. 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 HEls to be established and operated by LGUs by virtue of local
governance;

b. _ HEls to be established and operated by LGUs offering non-degree programs but
would eventually offer degree programs;

c. Local colleges proposing (elevation to university status) reclassification as
college, professional institutions or universities; and
d. Existing LCUs which have not met the standards of the Commission on Higher

Education (CHED) prescribed in this Act.

SEC. 5, Establishment and Operation of local HEIs by LGUs. A local HEI, to be known
as a local college or dalubhasaan, shall be established and operated by an LGU through an
ordinance duly enacted for that purpose by the Sanggunian concerned: Provided, that
before the enactment of the said ordinance, an LGU establishing a local college shall
consult and coordinate with the CHED to ensure observance of pertinent policies and
standards promulgated by CHED and compliance with the necessary requirements for the
establishment and subsequent effective operation of the local college.

The local HE! established by LGUs shall be given a period of four years to comply
with the applicable criteria established by the CHED for the grant of college or university
status. Should CHED determine that the local HEI has not complied with the applicable
criteria despite the four-year period provided herein, the status granted under this Act shall
be automatically revoked. The CHED, through its regional office, shall actively monitor and
provide technical assistance to the local HE! in compliance with the requirements of the
Commission.

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.

A local college may subsequently apply for elevation to a university: Provided, That it
has complied with the standards and guidelines for the grant of university status pursuant to
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: 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.

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: Provided, That educational
institutions which have been using the name “college” or “university” prior to the passage of

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this Act shall be allowed to retain the 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” to make them worthy of their name.

SEC. 6. Authority to Grant “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 bane shall grant the
“University” status upon compliance with the requirements.

SEC. 7. 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 or
Pamantasan shall be its Board of Regents. The governing board of an LCU, hereinafter
referred to as the Board, shall be composed of the following’

‘a. Local Chief Executive or his duly designated representative, as chairperson;

b. _ CHED Chairperson or his duly designated representative, as co-chairperson;

c. President of the LCU, as vice-chairperson;

d. Chairperson of the House Committee on Higher and Technical Education, as
member;

Chairperson of the Senate Committee on Education, Culture and the Arts, as
member;

President of the duly recognized faculty association of the LCU, as member;

President of the duly recognized student council of the LCU, as member,

President of the alumni association, as member;

Chairperson of the Sangguniang Committee on Education, as member;

CHED Regional Director, as member;

Division Superintendent of the Department of Education (DepED), as member;

Two (2) representatives from the private sector who have distinguished
themselves in their profession or field of specialization and are bonafide residents of
the community where the LCU is located, as members.

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One of the two (2) representatives from the private sector shall come from the
business or industry sector. They 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
student council, and the president of the alumni association shall be coterminous with the
respective terms of office pursuant to their respective constitutions and by-laws.

SEC. 8, Powers of the Board. The Board shall promulgate policies on education, science
and technology, arts, culture and sports, as well as policies, standards and thrusts in
accordance with the declared state policies on higher education, such as Republic Act No.
7722 or the “Higher Education Act of 1994” and other pertinent laws, as well as the principle
of local autonomy enshrined in 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 the distinct features of the LCUs, their
organizational set-up, and their operation: Provided, That the 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 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 Big. 68, otherwise known as
the Corporation Code of the Philippines:

a, To enact rules and regulations not contrary to law as may be necessary to
carry out the purposes and functions of the LCU;

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, and its discretion, to
carry out the purposes and functions of the LCU;

c. To receive in kind and 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 university or college, subject to limitations,
discretions 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 school charges, such as but not limited to
matriculations 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 or 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 LCU, shall constitute a special trust funds and shall
be deposited in any authorized government depository bank, and all interests
that shall accrue therefrom shall form part of the same fund for the use of the
LCU.

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

If, for reason of control, the university or college shall be able to
pursue any project for which funds have been appropriated 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 objectives and goals of the LCU;

e. To adapt and implement a socialized scheme of tuition and school fees for
greater access to poor but deserving students;

f. To authorize the construction or repair of its building, machineries,
equipment, and other facilities, as well as the purchase and acquisition of real
personal properties, including necessary supplies, materials, and equipment
Purchase and other transactions entered into by the LCU through the Board
shall be exempt from all taxes and duties, subject to applicable BIR (Bureau
of Internal Revenue) rules and regulations;

g. To appoint, upon the recommendation of the (president of the university or
college) search committee created by the Board, vice presidents, deans,
directors, heads of departments, faculty members and other officials and
employees;

h. To fix and adjust salaries of faculty members and administrative officials and
employees, subject to the provisions of the revised compensation laws
governing hours of service, and such other duties and conditions as it may

5


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 notwithstanding; and to remove for cause in accordance with the
requirements of due process of law;

To approve the curricula, and institutional programs of the institution:
Provided, That it conforms to the CHED guidelines;

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

To set policies on admission and graduation of students: Provided, That it
conforms to the CHED guidelines;

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 certificates of completion of non-
degree and non-traditional courses; Provided that these conform with the
applicable guidelines of the CHED;

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

To establish chairs in the LCU and to provide fellowships for qualified faculty
members and scholarships to deserving students;

To adopt a tuition scheme that shall prescribe a different rate of fees for
students who are residents of the area or LGU where the LCU is located and
for those who are non-residents;

To delegate any of its power and duties for the hereinabove to the president
and/or the other officials of the LCU as it may deem appropriate so as to
expedite the administration of the affairs of the university or college;

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;
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, shall be used for the development and
strengthening of the LCU;

To develop consortia and other forms of linkages with the LGUs, institutions
and agencies, both public and private, local and foreign, in furtherance of the
purposes and objectives of the institutions;

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;

To set up the adoption of modern 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
education within the institution;

To establish policy guidelines and procedures for participative decision
making and transparency within the institution;

To privatize, where most advantageous to the institution, management of
non-academic services such as health, food, building or grounds or property
maintenance and similar such other objectives; and

To extend the term of the president of the LCU beyond the age of retirement,
but not later than the age of seventy (70), whose performance has been

6


unanimously rated as outstanding, and upon unanimous recommendation by
the search committee for the president of the institution concerned.

Sec. 9. Administration of the LCU, The administration of the LCU shall be vested in the
President who shall render full-time service to implement policies promulgated by the Board.
He/She shall be appointed by the Board upon the recommendation of a search committee
duly constituted by the Board.

The President of the LCU shall have a term of five (5) years and shall be eligible for
reappointment for another term, unless otherwise provided for in the ordinance creating the
LOU.

The President must have an appropriate earned (doctoral) Master's degree,
management expertise, and at least five (5) years of relevant administrative experience,
without prejudice to the provisions of additional qualifications to be set by the governing of
the 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 LCU, within a period of six months to one year, pending the appointment of a
new President.

The powers and duties of the President of the LCU, in addition to those specially
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 be comparable to that being received by the presidents of
similar educational institutions

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

SEC. 10. Search Committee for President of the LCU. Six (6) months before the
expiration of the term of office of the incumbent President, the Board shall appoint a Search
Committee for President of the LCU. The Search Committee shall conduct the search in
accordance with the procedure and criteria established by the CHED.

The Search Committee shall have five (5) members to be appointed by the Board.
The composition of the Search Committee shall include a representative from the LGU
concerned, the academe, the Association of Local Colleges and Universities (ALCU), the
faculty, and the business sector, They shall elect a Chairperson and Vice-Chairperson from
among themselves.

Sec. 11. The Administrative Council. An Administrative Council may be created, which
shall consist of the President of the LCU as Chairperson, vice presidents, deans, directors
and other officials of equal rank as members, whose duty is to review and recommend to the
Board policies governing the administration, management and development planning of the
LCU,

Sec, 12, The Academic Council. An Academic Council may be created, which shall be
composed of the President of the LCU, who shall act as Chairperson, and all academic staff
with the rank of at least an assistant professor, as members,


The Academic Council shall have the power to review and recommend the curricular
offerings and rules of discipline of the LCU, subject to the approval of the Board. It shall fix
the requirements for the admission of students, as well as for their graduation and
conferment of degrees, subject to review and approval by the Board through the President
of the LCU. It shalll have the disciplinary power over students of the LCU and shall formulate
academic policies and rules and regulations on discipline, subject to the approval of the
Board.

SEC. 13. Academic Freedom. Pursuant to paragraph 2, Section 5 of Article XIV of the
constitution of the Republic of the Philippines, all institutions of higher learning, public or
private, shall enjoy academic freedom and institutional autonomy.

SEC. 14. Use of DepED Facilities. For the first ten (10) years from the establishment of a
local college, DepED facilities such as elementary and high school classrooms, shall be
made available to LCUs for their use.

SEC. 18. Appropriation for LCUs. There shall be a provision for the regular annual
appropriation from the LGU to support and sustain the operation of the LCU.

SEC, 16. Implementing Rules and Regulations. The CHED, in coordination with the
Department of the Interior Local Government (DILG) and the ALCU, shall promulgate the
implementing rules and regulations as may be necessary to carry out the provisions of this
Act within sixty (60) days from the effectivity of this Act.

SEC. 17. Separability Clause. |f 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. 18. 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
hereby modified, amended or repealed accordingly.

SEC, 19. Effectivity Clause. This Act shall take effect fifteen (15) days after its publication
in at least two (2) newspapers of general circulation

Approved,