senate
NINETEENTH CONGRESS OF THE) 
REPUBLIC OF THE PHILIPPINES ) 
First Regular Session 
)
SENATE
s. No. 1999
iDfficp o( tljc ife-.i.rtarj?
23 MAR 14 PI :42
RlTEIVhD 3Y;
Introduced by Senator MANUEL "UTO" M. LAPID
AN ACT
PRESCRIBING THE MANDATORY GUIDELINES ON THE ESTABLISHMENT 
AND OPERATION OF LOCAL UNIVERSITIES AND COLLEGES AND FOR
OTHER PURPOSES
EXPLANATORY NOTE
The Local Government Code provided the Local Government Units (LGUs) the 
power to establish and operate vocational and technical schools and similar post­
secondary institutions. Said provision has helped with the creation of Local Universities 
and Colleges (LUCs) all over the country that significantly helped the State to provide 
affordable and accessible education to Filipinos.
However, the mere creation of the same is not an end in itself. Rather, it is only 
a means to ensure a complete, adequate, and integrated system of education relevant 
to the needs of the people and society.
The diverse conditions in different LGUs, including economic, social, and 
political, and the varying capabilities of the local governments present unique 
challenges to LUCs across the board.
This measure is an attempt at making the LUC experience comparable across 
the country. This bill prescribes mandatory guidelines on the establishment of LUCs to 
create a standard and Integrated system of higher education and provide appropriate


direction in their governance to meet the ever-changing challenges In higher 
education.
It is proposed that the LUCs shall be subject to the monitoring, inspection, and 
evaluation of the Commission on Education (CHED), and through the latter's regional 
offices, it shall continue to inspect and provide technical assistance to the LUCs.
In view of the foregoing, immediate approval of this bill Is earnestly sought.
mATuel "LITO" m. lapid
Senator


NINETEENTH CONGRESS OF THE) 
REPUBLIC OF THE PHILIPPINES ) 
First Regular Session 
)
SENATE 
s. No. 1999
of tljc
23 nAR 14 PI ^2
Rl'CElVED BV,
Introduced by Senator Manuel "Lito" M. Lapid
1 
AN ACT
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PRESCRIBING THE MANDATORY GUIDELINES ON THE ESTABLISHMENT
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AND OPERATION OF LOCAL UNIVERSITIES AND COLLEGES AND FOR
4 
OTHER PURPOSES
Be it enacted by the Senate and the House of Representatives of the Philippines 
in Congress assembied:
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SECTION 1. Short Tide, - This Act shall be known as "Local Universities and
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Colleges (LUCs) Governance Act."
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SECTION 2. Deciaration of Poiicy. - It is the policy of the State to establish,
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maintain, and support a complete, adequate, and integrated system of education
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relevant to the needs of the people and society. It is also the policy of the State to
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protect and promote the right of all citizens to quality education and to take
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appropriate steps to make education accessible to all.
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Towards this end, mandatory guidelines on the establishment of local colleges
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and the conversion of local colleges into universities must be prescribed to achieve a
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standard and integrated system of higher education, provide the appropriate direction
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in their governance, and ensure that they will deliver quality and relevant education
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to students.
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SECTION 3. Definition of Terms. - As used in this Act:


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a. Commission on Higher Education (CHED) refers to the government agency 
created by Republic Act No. 7722, otherwise known as the "Higher 
Education Act of 1994 which has jurisdiction over ail public and private 
higher education (HEIs) in the Philippines;
b. Degree program refers to the set of academic programs and courses in a 
field of study leading to the conferment of an undergraduate or graduate 
degree;
c. Governing Board refers to the highest policy-making body of a local 
university or college;
d. Higher education institution refers to an institution of higher learning which 
primarily offers degree-granting programs duly recognized by the 
Commission on Higher Education (CHED) and leading to the conferment of 
a diploma;
e. Level II accreditation refers to a status granted to an educational program 
after being granted the initial accreditation following a formal survey by the 
accrediting agency and duly certified by the accreditation federation or 
network, effective for a period of three (3) years;
f. Local college or daiubhasaan refers to a public higher education institution 
with below Level II accreditation, financially supported, operated and 
maintained by the local government unit, and offers undergraduate or 
baccalaureate and graduate academic programs leading to the conferment 
of a degree;
g. Local government unit (LGU)) refers to municipalities, cities and provinces 
that created or established the local university or college;
h. Local higher education institution refers to a public higher education 
institution financially supported by an LGU through an ordinance, which 
offers undergraduate or baccalaureate and graduate academic programs 
leading to the conferment of a degree;


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I. Local university or pamantasan refers to a public higher education institution
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with above Level II accreditation that is financially supported, operated and
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maintained by an LGU and offers undergraduate or baccalaureate and
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graduate academic programs leading to the conferment of a degree;
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j. Non-degree program refers to a postsecondary short-term certificate or
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diploma academic and technical-vocational programs below the
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baccalaureate or bachelor's degree;
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k. Technical-vocational institution refers to a postsecondary education
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institution that offers short-term nondegree, diploma or certificate technical-
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vocational education and training programs or courses;
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SECTION 4. Coverage. - The provisions of this Act shall apply to:
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a. Existing local universities and colleges (LUCs);
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b. Higher education institutions (HEIs) to be established and operated by LGUs
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through a local ordinance;
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c. HEIs to be established and operated by LGUs that will offer non-degree
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programs, but which intends to offer undergraduate and graduate degree
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programs;
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d. Existing technical-vocational institutions established and operated by an
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LGU offering non-degree programs, but which intend to propose a
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reclassification as a college, professional institution or university; and
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e. Existing LUCs which have not met the minimum standards of the
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Commission on Higher Education (CHED), as prescribed in CHED
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Memorandum Order (CMO) No. 46, series of 2012, or the most recent CMOs
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on Policies, Standards, and Guidelines (PSGs) for HEIs.
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SECTION 5. Establishment and Operation of Local HEIs by LGUs. - A local
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HEI, to be known as a local college or daiubhasaan, or any typology assigned by the
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CHED in accordance with changes in the Philippine higher educational system, shall
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be established and operated by an LGU through an ordinance duly enacted for that
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purpose by the sanggunian concerned: Provided, That prior to the enactment of the
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said ordinance, the LGU establishing a local college shall consult with the CHED,
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through the regional office that has jurisdiction over the area where the Institution Is
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intended to be established, to ensure full compliance with the mandatory requirements
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set forth In this Act.
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SECTION 6. Mandatory Requirements for the Estabiishment of the LUC. - The
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CHED shall require all LUCs to submit the following requirements for review and
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approval:
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a. Feasibility study that shall include the following:
1) the necessity for a local HEI In the area;
2) human resource requirements of the Industry to determine the 
proposed program offerings;
3) target offerings;
4) financial capacity of the LGU to establish and sustain the operation of 
the LUC;
b. Certification of availability of funds by the Treasurer of the concerned LGU, 
as provided under the pertinent of Republic Act No. 7160, otherwise known as 
the "Local Government Code of 1991";
c. A project development plan with a program of work showing that the LGU 
allocated a school site with appropriate size and location pursuant to the 
applicable provisions of Republic Act No. 6541, otherwise known as the 
"National Building Code of the Philippines", a blueprint of the architectural 
design of its buildings and other physical facilities, and provisions for acquisition 
of instructional materials and equipment that comply with the CHED 
Memorandum Orders pertinent to the program offered; and


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d. A five-year institutional development plan duly approved by the sanggunian,
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which shall include the following: 1) annual budgetary allocation; 2)
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organizational structure and composition of the Governing Board, hereinafter
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referred to as the Board; and 3) personnel complement indicating the plantilla
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of positions to be hired on a merit system and the procedure for hiring non-
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plantilla Items duly approved by the Civil Service Commission.
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In ail cases, a duly established educational institution by the LGU shall require
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the imprimatur of the CHED prior to the offering of higher education degree programs.
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It shall file with the CHED an application to offer a higher education degree program.
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The application shall be supported with documents Indicating compliance with the
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policies, guidelines, and standards relative to such degree program.
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SEC. 7. Supervisory, Monitoring, and Visitoriai Power of the CHED. - All LUCs
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shall be subject to the monitoring. Inspection, and evaluation of the CHED.
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Pursuant to the provisions of Republic Act No. 7722, otherwise known as the
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"Higher Education Act of 1994", the CHED shall exercise supervisory power over LUCs.
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Through its regional offices, the CHED shall continue to monitor, inspect, evaluate,
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and provide technical assistance to the LUCs.
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The CHED shall, in the issuance of academic policies and standards affecting
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LUCs, ensure quality assurance by taking Into account the different characteristics,
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peculiar needs, the distinct features of the LUCs, their organizational set-up, and their
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operation, among other considerations: Provided, That the CHED shall, at all times,
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devise ways and practices that will ensure that the LUCs will remain committed to the
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delivery of quality education to Its students.
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SEC. 8. Governing Board of LUCs. - The governing board of a College,
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Pamantasan or Daiubhasaan shall be its Board of Trustees (BOT), while the governing
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Board of a University or Pamantasan shall be its Board of Regents (BOR).
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The regular and special meetings of the BOT or BOR of the LUCs shall be
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specified in the ordinance creating the LUC.


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Composition - The governing board of the LUC, shall be composed of the:
1) Local chief executive, as chairperson;
2) President of the LUC, as vice-chairperson;
and the following as members:
3) President of the duly recognized faculty association of the LUC;
4) President of the duly recognized student council of the LUC;
5) President of the duly recognized alumni association;
6) Chairperson of the Committee on Education of the Sanggunian)
7) A representative from CHED with a rank not lower than Director;
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8) Treasurer of the LGU establishing the LUC;
9) Budget Officer of the LGU establishing the LUC; and
10) . Two (2) representatives from the private sector who are of known 
probity and have distinguished themselves in their respective professions 
or fields of expertise or specialization In the municipality, city, or province 
where the LUC is located. They shall be appointed by the local chief 
executive and shall each serve for a term of two (2) ears from the date of 
their respective appointments.
a) Term of Office - 1) The President of an LUC shall serve a full term in 
such capacity; 2) The presidents of the faculty association, student 
council, and the alumni association shall sit in the Board and shall serve 
their respective terms of office In the associations co-terminously, 
pursuant to their respective constitutions and by-laws. Such associations 
shall conduct the election of its officials shortly before the end of terms 
of the incumbents or within one (1) month prior to the expiration of their 
terms, otherwise their positions in the Board shall be deemed expired


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b) Vacancy - In case of a vacancy in the Board by reason of resignation, 
death, or the incapacity of one or more of its appointed members, such 
vacancy shall be filled by appointment by the local chief executive and 
the appointee shall hold office for the unexpired portion of the term.
c) Meetings - The Board shall regularly convene every month. The 
Chairperson of the Board may call a special meeting whenever 
necessary: Provided, That members are notified in writing at least three 
(3) calendar days prior to the said meeting.
d) Quorum - A majority of the members of the Board holding office at 
the time of its regular or special meeting shall constitute a quorum.
e) Compensation - The members shall serve without compensation other 
than reimbursement for necessary expenses incurred in their attendance 
to meetings of the Board or in connection with their official business, as 
may be authorized by resolutions of the Board.
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SEC. 9. Powers of the Board. - The Board shall be the highest policymaking
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body of LUCs and shall have the following powers and functions:
a. To promulgate policies In accordance with the declared policies on higher 
education, as well as the policies, standards, and guidelines of the CHED 
under Republic Act No. 7722, otherwise known as the "Higher Education Act 
of 1994" and other pertinent laws;
b. To promulgate rules and regulations consistent with existing laws, rules, 
and regulations as may be necessary to carry out the purposes and 
functions of the LUC;
c. To receive assistance from the LGU to augment the internal sources of 
funds, as may be provided, to carry out the purposes and functions of the 
LUC;


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d. To fix the tuition fees and other school charges as the Board may deem 
proper to impose after due consultations with the relevant sectors: 
Provided, that these fees shall be based on the guidelines of the CHED and 
not prohibitive or unreasonable as to deviate from the purpose for which 
the LUCs are created;
e. To appoint, upon the recommendation of the President, vice presidents, 
deans, executive directors, heads of departments, faculty, and other officials 
and employees;
f. To develop consortia and other academic linkages and, other forms of 
networks with the LGUs, Industries, institutions and agencies, both public 
and private, local and foreign: Provided, That these comply with the 
applicable guidelines of the CHED in furtherance of the purposes and 
objectives of the LUCs, as well as develop academic arrangements for 
institution capacity and capability building with appropriate institutions and 
agencies, public and private;
g. To determine and approve curricular programs and course offerings in 
response to the needs and demands of the community and based on local 
and regional development initiatives: Provided, That these comply with the 
minimum CHED requirements and its PSGs;
h. To promulgate policies on admission, retention, and graduation of students 
in conformity with the guidelines of the CHED, and to award degrees, titles, 
diplomas, and certificates;
I. To ensure the efficient management of nonacademic services, such as 
medical and dental, guidance counseling, property maintenance;
j. To institutionalize research and extension programs and establish research 
and extension centers where such will promote the development of the 
LUCs;


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k. To appoint the President of the LUC upon the recommendation of the search 
committee;
l. To confirm the appointments of other school officials, teaching, and 
nonteaching personnel appointed by the President of the LUC;
m. To approve rules of discipline for the administrative and academic staff and 
students of the college or university to ensure orderly and effective 
governance thereof;
n. To determine the tuition fees, miscellaneous fees and other school charges 
as the board may deem proper to impose after proper consultation with the 
relevant stakeholders;
0. 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 issuance of certificates of 
completion of non-baccalaureate programs and nontraditional or innovative 
courses: Provided, That these conform to the applicable guidelines of the 
CHED and the Technical Education and Skills Development Authority;
p. To establish professorial chairs in the LUC and to provide fellowships for 
qualified;
q. To appoint experts and specialists as consultants, or visiting or exchange 
professors, scholars, researchers, as the case may be: Provided, That such 
appointment conforms to the CHED guidelines;
r. To set up the adoption of modern and Innovative modes of transmitting 
knowledge such as the use of information technology, the dual training 
system, and open distance learning, for the promotion of greater access to 
education;


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s. To submit to the Local Chief Executive or to the Sangguniang Panlungsod,
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Sangguniang Bayan or Sangguniang Paniaiawigan an annual detailed report
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setting forth the status, progress, needs, and goals of the LUC; and
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t. To delegate any of its powers and duties provided for herein to the President
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and/or other officials of the university or college as it may deem appropriate
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to expedite the administration of the affairs of the LUC
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SEC. 10. Administration of LUCs. - The administration of each LUC shall be
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vested in the President who shall render full-time service to implement policies
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promulgated by the Board.
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The Board shall, upon the recommendation of a duly constituted search committee,
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appoint the President for a term of four (4) years, subject to reappointment for another
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term only.
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The President of the LUC must preferably have a Doctorate Degree or a Master's
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degree In education, administration, or other related fields, with at least three (3)
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years of relevant administrative experience, without prejudice to provision of
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additional qualifications to be set by the Board of the LUC. The term of office of the
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President shall be four (4) years, subject to reappointment for another term only.
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SEC. 11. Vacancy in the Office of the President - In case of vacancy in the
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Office of the President by reason of death, compulsory retirement, expiration of term,
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resignation, removal for cause or incapacity of the President to perform the functions
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of his office, the Board shall have the authority to designate an Officer-in-Charge of
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the LUC pending the appointment of a new president.
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The powers and duties of the president of the LUC, in addition to those
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specifically provided in this Act, shall be those usually pertaining to the Office of the
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President of other colleges, and those delegated by the board.
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SEC. 12. Search Committee. - In case of vacancy in the Office of the President
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brought about by any of the causes mentioned in the preceding Section, the Board
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shall organize and convene a Search Committee for the Presidency, which shall
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evaluate and present to the Board the qualifications of the candidates for President of
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the LUC.
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The Search Committee for the Presidency shall have five (5) members to be
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appointed by the Board. The members shall each represent the following: a) CHED;
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b) the Association of Local Colleges and Universities (ALCU); c) the concerned LGU,
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d) the academe; and e) the business or industry sector. It shall elect a Chairperson
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and Vice-Chairperson and shall ensure that the new LUC President is elected not later
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than three (3) months from the time that the position is vacant.
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SEC. 13. The Secretary of the LUC and the Secretary of the Board. -There
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shall be a Secretary of the LUC who shall be appointed by the Board as Secretary of
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the Board upon recommendation of the University President. The Secretary of the
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Board shall be the custodian of all official records of the LUC.
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SEC. 14. Elevation of a Local College to the Status of a University. - A local
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college, upon the recommendation of the Board to the Sangguniang Bayan, or
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Sangguniang Panlungsod, or Sangguniang Paniaiawigan, may subsequently apply with
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the CHED for university status:
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Provided, That it has complied with the requirements of the CHED and has
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undergone the appropriate process of accreditation by a reliable accreditation body
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that subsequently found the college to be prepared for reclassification as a university:
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Provided further, That a local college, upon conversion into a local university,
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shall continue to be operated by the concerned LGU in coordination with the CHED.
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The proposal for classification to a university status shall be submitted to the
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CHED Central Office, through the CHED Regional Office, for review. Only the CHED en
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bancshaW grant the "University" status upon compliance with the requirements.
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No new local HEI shall be established immediately as a local university or
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pamantasan. A local HEI established by an LGU shall be known as a local college or
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daiubhasaan or any other typology assigned by the CHED in accordance with
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developments in the Philippine Higher Educational System.


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SEC. 15. Existing LUCs. - In the interest of efficient control and supervision by
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the CHED, ail LUCs existing at the time of the effectivity of this Act shall be allowed to
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continue their operation, subject to compliance with the requirements of this Act within
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a non-extendible period of three (3) years. Non-compliance with the requirements of
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this Act shall result in the phaseout of the programs being offered by the concerned
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LUCs.
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SEC. 16. Existing Local Postsecondary Educational Institutions. - Local post
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secondary educational institutions offering only pre-professional training or non-
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baccalaureate programs shall not use "College" or "University" in its name unless they
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have complied with the requisites provided for the establishment of a college or the
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grant of university status under the CHED rules and regulations:
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Provided, That existing local post-secondary educational institutions which have
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been using the name "college" or "university" prior to the passage of this Act shall be
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allowed to retain such name:
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Provided, further, That said educational institutions shall be given a grace
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period by the CHED to comply with the requirements for the status of "college" or
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"university" or any other typology assigned by the CHED in accordance with
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developments In the Philippine higher educational system.
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SEC. 17. Penalties for Non-Compiiance. - Any person found violating any of
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the provisions of this Act shall be subject to an administrative fine of up to Five
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hundred thousand pesos (P500,000.00), depending on the severity of the violation,
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as may be determined in the Implementing Rules and Regulations of this Act.
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SEC. 18. Implementing Ruies andReguiations. - Within ninety (90) days from
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the effectivity of this Act, the CHED shall, in coordination with the Department of the
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Interior and Local Government, the ALCU, and other relevant stakeholders promulgate
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the rules and regulations to carry out the provisions of this Act.
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SEC. 19. Exclusion Clause. - This Act shall apply to all LUCs duly created by
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their ordinances enacted for that purpose, except for the Pamantasan ng Lungsod ng
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Maynila (PLM), which was created by virtue of Republic Act No. 4, entitled "An Act
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Authorizing the City of Manila to Establish and Operate the University of the City of
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Manila and for Other Purposes"
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However, In so far as faculty qualifications, curriculum and instruction, and
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facilities are concerned, the PLM shall be governed by this Act.
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SEC. 20. Separability Clause. - If any provision of this Act shall be held
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unconstitutional or invalid, the remaining provisions which are not affected thereby
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shall continue to be in full force and effect.
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SEC. 21. Repealing Clause. - All laws, executive orders, decrees, instructions,
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rules and regulations and other issuances, or parts thereof, contrary to or inconsistent
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with this Act are modified, amended or repealed accordingly.
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SEC. 22. Effectivity. - This Act shall take effect fifteen (15) days after its
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publication In the Official Gazette or in a newspaper of general circulation.
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Approved,
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