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Republic of the Philippines

HOUSE OF REPRESENTATIVES
Quezon City, Metro Manila

EIGHTEENTH CONGRESS,
First Regular Session

HOUSE BILL NO. 2604

Introduced by HONORABLE RESURRECCION MARRERO-ACOP, MD

EXPLANATORY NOTE

Article XIV, Section 1 of the 1987 Philippine Constitution provides
for the right of all citizens to quality education at all levels and that
appropriate steps should be taken by the government to make such
education accessible to all.

Giving due importance to this constitutional mandate, a number
of our local government units have taken the initiative to make higher
education accessible to their constituents by establishing, 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. While the reasons behind the establishment of these LCUs on
the part of the local government units are commendable, it has been
observed that the absence of reliable guidelines on the establishment of
these LCUs (e.g. composition of the governing boards of these LCUs,
the qualifications of the administering authority) has taken a toll on the
delivery of quality education to the constituents it serve.

The attached bill recognizes the need to rationalize the creation of
LCUs to bring about an upgrade in the delivery of quality and
accessible higher education of these institutions of higher learning.

It is therefore recommended that the foregoing bill be approved.

eee”. MARRERO-ACOP, MD

Representative
24 District, Antipolo City


Republic of the Philippines

HOUSE OF REPRESENTATIVES
Quezon City, Metro Manila

EIGHTEENTH CONGRESS
First Regular Session

2604
HOUSE BILL NO.

Introduced by HONORABLE RESURRECCION MARRERO-ACOP, MD

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 the House of Representatives
ofthePhilippines in Congressassembled:

SECTION 1. Short Title. — This Act shall be known as the “Local Colleges and
Universities Governance Act of 2019."

SECTION 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.

SECTION 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;

(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;

(4) "Non-degree Program" refers to a post-secondary program below thebachelor
degree;
(e) "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;

(g) "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;

SECTION 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


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

SECTION 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.

SECTION 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
withthe standards and guidelines for the grant of university status pursuant to
thepertinent CHED rules and regulations and that it has followed the
appropriateprocess 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.

SECTION 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.

SECTION 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 Chairman;

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

(c) 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;

(c) 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
theLocal 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
the student council, and the President of the alumni association shall be
coterminouswith their respective terms of office in their respective associations
pursuant to the provisions of their respective duly-approved constitutions and by-
laws.

SECTION 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
affectingLCUs, shall take into account the different characteristics and distinct
features of theLCUs, 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
powersgranted 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 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;

(c) 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; and

(4) 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 there from 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 allocatedunder its approved
program of expenditures, the Board of Regents/Trustees may authorize the use of
said funds for any reasonable purpose which, in itsdiscretion, may be necessary and
urgent for the attainment of the objectives and goals of the university or college;

(ce) 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 fa

ies, as well as the purchase and acquisition of realand
personal properties, including necessary supplies, materials and
equipment.Purchases and other transactions entered into by the universityor college
through the Board of Regents/trustees shall be exempt from alltaxes and duties,
subject of 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;

(bh) 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 maydeem proper; to grant them,
at its discretion, leaves of absence under such regulations as it may promulgate, any
provisions of existing law to thecontrary notwithstanding; and to remove them for
cause in accordance withthe requirements of due process of law;

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

() To approve rules of discipline for the administrative and academic staff of the


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

a) To award honorary degrees upon persons in recognition of outstanding
contribution in the field of education, public service, arts, science andtechnology 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;

(m) To establish research and extension centers of the LCU where suchwill
promote the development of the latter;

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

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

college;

(p) 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 oruniversity, the
proceeds from which to be used for the development and strengthening of the college

or university;

() 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;


(s) 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 higher

education;

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

(*) 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

(w) To extend the term of the 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 concerned.

SECTION 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 Governing 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 non-extendible term, unless otherwise
provided for in the ordinance creating the LCU.

The president shall hold an appropriate earned doctorate degree and
shouldhave 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
thosespecifically 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
therecommendation of the President. The appointments of these LCU officials and
employees shall be in conformity to existing civil service laws, rules and regulations.

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

SECTION12.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 appropriate CHED Regional Office, for review. Only the
Commission en banc may grant the university status upon compliance with the
requirements.

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

SECTION 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.

SECTION 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, ammended or repealed accordingly.

SECTION 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,