O9SEP 2013
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Republic of the Philippine
HOUSE OF REPRESENTATIVES.
Quezon City

SIXTEENTH CONGRESS
First Regular Session

House Bill No._ 2783,

INTRODUCED BY REP. ROMAN T. ROMULO.

EXPLANATORY NOTE

The Local Government Code of the Philippines (Republic Act 7160) has made it
possible for local government units (LGUs) to help make education accessible to poor
students in their localities through the establishment and operation of local colleges and
universities (LUCs).

While this is a commendable action on the part of LGUs, over time, it has created some
problems concerning the quality of education taught in these LUCs because of the
absence of definite guidelines on their establishment and operation. Hence, there is a
need to rationalize the creation of LUCs to prevent the proliferation of substandard
schools which fail to deliver quality higher education and are often dubbed as mere
“diploma mills.”

This proposed law provides the minimum standards and guidelines for compliance by
LGUs proposing to establish and/or operate local HEls. It mandates the LGU
establishing a local college through an enabling ordinance to 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 the
LUCs

Compliance with these guidelines will definitely promote quality and excellence,
relevance and responsiveness, efficiency and effectiveness, and access and equity in
LUCs with due recognition of their unique institutional identities. Moreover, it outlines
the benefits of compliance with CHED requirements, such as the grant of special order
to graduate from CHED, thereby enabling graduates of LUCs to take the licensure
examinations given by the professional Regulation Commission, as well as the civil
service exams given by the Civil Service Commission; inclusion in the directory of
CHED-recognized Philippine universities and colleges; quality assurance support from
CHED, if qualified, pursuant to CHED rules; and acceptance of foreign students, subject
to compliance with the requirements of competent regulatory agencies.


In view of the foregoing reasons, immediate approval of this measure is earnestly

sought

Ee

ROMAN T. ROMULO
Representative
Lone District, Pasig City


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

Sixteenth Congress
First Regular Session

HOUSE BILL NO. 278 3

Introduced by REPRESENTATIVE ROMAN T. ROMULO

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 (HE!)/Local College or University (LUC)
- 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, a LUC is referred to as "Dalubhasaan’ for college and “Pamantasan”
for university.

(b). Ordinance - refers to the enabling act of the Sangguniang Panglunsod or
Panlalawigan that creates a particular LUC and serves as the charter of said LUC.

(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 LUC.

(f) College or Dalubhasaan ~ refers to an HE! offering academic programs
and usually pre-professional training leading to a bachelor's degree.

(g) 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) HEIs to be established and operated by LGUs offering non-degree
programs but would eventually offer degree programs;

(c) Local colleges proposing reclassification as college, professional
institutions or universities; and

(d) Existing LUCs 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
concemed: 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 HE! 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


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regional office, shall actively monitor and provide technical assistance to the local
HEI in compliance with the requirements of the Commission.

No new local HE! 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 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 banc shall grant the “University” status upon compliance with the
requirements.

SEC. 7. Monitoring and Visitorial Powers. Pursuant to the provisions of
Republic Act 7722, all LUCs are subject to the inspection and evaluation of the
CHED.

SEC. 8. Compliance with CHED Requirements. All existing LUCs must
comply with the requirements of the CHED within eight (8) years from the effectivity
of this Act. The CHED shall grant full university status upon application of the local
college and only upon full compliance with the requirements.

SEC. 9. Benefits of Compliance. All LUCS which shall comply with CHED
requirements shall enjoy the following benefits:

a) Special order to graduate from CHED, thereby enabling the graduates of
LUCs to take licensure examinations given by the Professional Regulation


Commission, and civil service examinations given by the Civil Service

Commission;

b) Inclusion in the Directory of CHED-recognized Philippine Universities and
Colleges;

c) Quality assurance support from CHED, if qualified, pursuant to the CHED
tules; and

d) Acceptance of foreign students subject to compliance with the

requirements of competent regulatory agencies.

SEC. 10. 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 (BOR). The
governing board of a LUC, 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 LUC, as vice-chairperson;

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

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

(f) President of the duly recognized faculty association of the LUC, as
member;

(g) President of the duly recognized student council of the LUC, as member;
(h) President of the alumni association, as member;

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

(j) 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 LUC is located, as members.

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. 11. 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
LUCs, shall take into account the different characteristics and the distinct features of
the LUCs, their organizational set-up, and their operation: Provided, That the CHED
shall, at all times, devise ways and practices that will ensure that LUCs 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 LUC;

(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 LUC;

(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 LUCs are created.


Such fees and charges, including government subsidies and other income
generated by the LUC, 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 LUC.

Any provision or existing laws, rules and regulations to the contrary
notwithstanding, any income generated by the LUC from tuition fees and other
charges, as well as from the operation of auxiliary services and land grants, shall be
retained by the LUC, and may be disbursed by the Board for instruction, research,
extension services, or other programs/projects of the LUC: 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
teasonable purpose which, in its discretion, may be necessary and urgent for the
attainment of objectives and goals of the LUC;

(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 LUC 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 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 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;

(i) To approve the curricula, and institutional programs of the institution:
Provided, That it conforms to 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 policies on admission and graduation of students: Provided, That it
conforms to the CHED guidelines;

(l) 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;

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

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

(0) 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 LUC is located and for
those who are non-residents;

(p) To delegate any of its power and duties for the hereinabove to the
president and/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;

(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, shall be used for the development and strengthening of
the LUC;

(s) 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;

(t) 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;

(u) 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;


(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 of
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 the president of the LUC 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 concerned.

Sec. 12. 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 LUC 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 LUC

The President must have an appropriate earned 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 LUC.

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 LUC, 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 LUC, 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 LUC 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 LUC, 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 LUC officials and
employees shall be in conformity to existing civil service laws, rules and regulations


SEC. 13. Search Committee for President of the LUC. 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 LUC. 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. 14. The Administrative Council. An Administrative Council may be
created, which shall consist of the President of the LUC 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 LUC.

Sec. 15. The Academic Council. An Academic Council may be created,
which shall be composed of the President of the LUC, 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 LUC, 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 LUC. It shall have the disciplinary power over students
of the LUC and shall formulate academic policies and rules and regulations on
discipline, subject to the approval of the Board

SEC. 16. 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. 17. Appropriation for LUCs. There shall be a provision for the regular
annual appropriation from the LGU to support and sustain the operation of the LUC

SEC. 18. 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. 19. 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 4196. However, in so


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far as faculty qualification, curriculum and instruction, and facilities are concerned,
the PLM shall be governed by this Act.

SEC. 20. 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. 21. 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. 22. Effectivity Clause. This Act shall take effect fifteen (15) days after
its publication in at least two (2) newspapers of general circulation

Approved,

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