NINETEENTH CONGRESS OF THE ) 
REPUBLIC OF THE PHILIPPINES ) 
First Regular Session 
)
SENATE
s. No. 2269
Senate
>7’
23 MAY 31 P5 43
RECEIVED B
Introduced by SENATOR CYNTHIA A. VILLAR
AN ACT
PROVIDING GUIDELINES FOR THE ESTABLISHMENT AND OPERATION OF 
LOCAL COLLEGES AND UNIVERSITIES, AND FOR OTHER PURPOSES
EXPLANATORY NOTE
Section 1, Article XIV of the 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.
In line with the said constitutional mandate of providing access to education. 
Republic Act No. 7160 or the Local Government Code has enabled municipalities, 
cities and provinces to establish and operate vocational and technical schools and 
similar post-secondary institutions.
Consequently, 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 Local Government Code of 1991. 
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 
definite 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 establishment of local colleges and universities on the part of the LCDs is 
not an easy task. The LGUs must make sure that the higher educational institutions 
they have opened will be able to deliver quality education or offer courses according 
to the standards set by the Commission on Higher Education (CHED). In addition, 
The LGU must make sure that it has the available resources to fund the efficient 
operation of the school, which necessarily include, among others, the building and 
maintenance of the educational facilities, and the salaries of competent teaching 
personnel and administrative staff.
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.
Hence, I recommend the approval of this bill.
AA
CYNTHIA A. VILLAR


NINETEENTH CONGRESS OF THE ) 
REPUBLIC OF THE PHILIPPINES ) 
First Regular Session 
)
SENATE
S. No. 22R9
Ornate
fBWtr of the
23 HAY 31 P5 44
Introduced by SENATOR CYNTHIA A. VILLAR
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:
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Section 1. Short Title. - This Act shall be known as "The Local Colleges and
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Universities Governance Act of 2023".
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Sec. 2. Declaration of Policy. - It is the policy of the State to protect and
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promote the right of all citizens to quality education at all levels and to take
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appropriate steps to make education accessible to all. In doing so, the State shall
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establish, maintain and support a complete, adequate and integrated system of
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education relevant to the needs of the people and society and that it shall take into
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account regional and sectoral needs and conditions and shall encourage local
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planning in the development of educational policies and programs.
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Sec. 3. Definition of Terms. - As used in this Act, the terms enumerated
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below shall have the following meaning:
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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


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government unit. In Filipino language, an LCU is referred to as 
'Valubhasaan"for college and nPamantasan"\o\ university.
b) 
"Ordinance" refers to the enabling act of the Sangguniang Bayan, 
Panlungsod 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. ■
d) 
"Non-degree Program" refers to a post-secondary program below the 
bachelor's degree.
e) 
"Local Government Unit" or "LGU" refers to municipalities, cities and 
provinces that created or established the local college or university.
f) 
"College or Dalubhasaarf is an institution of higher learning offering 
academic programs and usually pre-professional training leading to a 
bachelor's degree.
g) 
"University or Pamantasari' 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.
Sec. 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;


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b) 
Higher education institutions established and operated 
by local
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government units offering non-degree programs but would eventually
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offer degree programs;
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c) 
Local colleges proposing elevation to university status; and
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d) 
Existing local colleges or universities which have not met the standards
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prescribed in this Act.
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Sec. 5. Establishment of Higher Education Institutions by LG Us. - All LCUs
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shall be established and/or operated through an ordinance duly enacted for that
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purpose by the Sanggunian concerned. Provided, that before the enactment of said
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ordinance, the LGU establishing a higher education institution shall consult and
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coordinate with the Commission on Higher Education (CHED) to ensure observance
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of the necessary requirements for the establishment and subsequent effective
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operation of a college.
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Sec. 6. Use of "College" or "University" - A local higher education
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institution established by a local government unit shall be known as a College. A
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local college may subsequently apply for elevation to a university provided it has
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complied with the standards and guidelines for the grant of university status
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pursuant to the pertinent CHED rules and regulations and that it has followed the
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appropriate process of accreditation conducted by a reliable accreditation body that
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has found the college prepared to be elevated into a university.
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Local educational institutions offering only non-degree programs shall not use
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College or University in its name, unless they would eventually offer degree
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programs and have complied with the requisites provided for the establishment of a
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college or the grant of university status under the CHED rules and regulations.
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Sec. 7. Funding of LCUs. - There shall be a provision for the regular annual
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appropriation from the relevant local government units to support and sustain the
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operation of the LCUs within their respective territorial jurisdictions.


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Sec. 8. Governing Board of a Local College or University. - The governing
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board of a college or dalubhasaan shall be its Board of Trustees (BOT) while the
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governing board of a university or pamantasan shall be its Board of Regents. The
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governing boards of a local college or university shall be composed of the following:
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a) 
Local Chief Executive as Chairman;
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b) 
President of the LCU as Vice-Chairman;
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c) 
President of the duly recognized faculty association of the LCU as
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member;
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d) 
President of the duly recognized student council of the LCU as
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member;
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e) 
President of the alumni association as member;
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f) 
Chairman of the Sangguniang Committee on education as member;
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g) 
Regional Director of CHED as member;
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h) 
Two (2) representatives from the private, each of them should have
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distinguished him/herself in his/her profession or field of specialization,
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as member.
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The two (2) representatives from the private sector shall be appointed by the
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Local Chief Executive and shall each serve for a term of two years from the date of
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their respective appointments.
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The terms of office of the President of the faculty association, the President of
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the student council, and the President of the alumni association shall be coterminous
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with their respective terms of office in their respective associations pursuant to the
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provisions of their respective duly-approved constitutions and by-laws.
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Sec. 9. Powers of the Governing Board. - The governing boards shall
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promulgate policies in accordance with the declared state policies on higher


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education, in line with the principle of local autonomy enshrined by Republic Act No.
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7160 or the "Local Government Code of 1991."
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The CHED, in the issuance of academic policies and standards affecting LCUs,
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shall take into account the different characteristics and distinct features of the LCUs,
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its organizational set-up, as well as the operations of the LCUs; Provided, that CHED
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shall, at all times, devise ways and practices that will ensure that LCUs will remain
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committed to the delivery of quality education to its students.
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The governing board shall have the following specific powers and duties, in
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addition to its general powers of administration and the exercise of all the powers
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granted to the board of directors of a corporation under Section 36 of Batas
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Pambansa Big. 68, otherwise known as the Corporation Code of the Philippines:
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a) 
To enact rules and regulations not contrary to law as may be necessary
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to carry out the purposes and functions of the university or college;
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b) 
To receive and appropriate all sums as may be provided for the support
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of the university or college to carry out the purposes and functions of
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the university or college;
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c) 
To receive in trust legacies, gifts and donations of real and personal
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properties of all kinds, to administer and dispose the same when
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necessary for the benefit of the university 
or college, subject to
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limitations, directions and instructions of the donors, if any. Such
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donations shall be exempt from all taxes and shall be considered as
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deductible items from the income tax of the donor;
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d) 
To fix the tuition fees and other necessary school charges, such as but
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not limited matriculation fees, tuition fees, graduation fees and
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laboratory fees, as the board may deem proper to impose after due
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consultations with the involved sectors; Provided, that these fees will
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not be prohibitive or unreasonable as to deviate from the purpose for
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which the LCUs are created.


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Such fees and charges, including government subsidies and other income
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generated by the university or college, shall constitute special trust funds and shall
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be deposited in any authorized government depository bank, and all interests shall
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accrue therefrom shall part of the same fund for the use of the university or college.
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Any provision of existing laws, rules and regulations to the contrary
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notwithstanding, any income generated by the university or college from tuition fees
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and other charges, as well as from the operation of auxiliary services and land
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grants, shall be retained by the university or college, and may be disbursed by the
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Board of Regents/Trustees for instruction, research, extension, or other allied
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programs/projects of the university or college: Provided, That all fiduciary fees shall
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be disbursed for the specific purposes for which they are collected.
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If, for reason of control, the university or college, shall Tiot be able to pursue
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any project for which funds have been appropriated and allocated under its
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approved program of expenditures, the Board of Regents/Trustees may authorize
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the use of said funds for any reasonable purpose which, in its discretion, may be
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necessary and urgent for the attainment of the objectives and goals of the
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universities or college;
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e) 
To adopt and implement a socialized scheme of tuition and school fees
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for greater access to poor but deserving students;
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f) 
To authorize the construction or repair of its buildings, machineries,
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equipment, and other facilities, as well as the purchase and acquisition
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of real and personal properties, including necessary supplies, materials
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and equipment. Purchases and other transactions entered into by the
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" ■ university or college through the Board of Regents/Trustees shall be
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exempt from all taxes and duties, subject to the applicable Bureau of
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Internal Revenue (BIR) rules and regulations;
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g) 
To appoint, upon the recommendation of the president of the
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university or college, the vice presidents, deans, directors, heads of
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departments, faculty members and other officials and employees;


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h) 
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 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 them 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 with the CHED guidelines, rules and 
regulations;
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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 polices on admission and graduation of students; Provided, that 
these conforms with the applicable guidelines of the CHED;
l) 
To award honorary degrees upon persons in recognition of outstanding 
contribution in the field of education, public service, arts, science and 
technology 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 such will 
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;
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To delegate any of its powers and duties provided for hereinabove 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;
q) 
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 of which will be used for the 
development and strengthening of the college or university;
r) 
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;
t) 
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;


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v) 
To privatize, where most advantageous to the institution, management
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and non-academic services such as heaith, food, buiiding or grounds or
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property maintenance and simiiar such other objectives; and
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w) 
To extend the term of the president of the coilege or university beyond
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the age of retirement but not later than the age of seventy (70), whose
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performance has been unanimously rated as outstanding and upon
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unanimous recommendation by the search committee for the president
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of the institution concerned.
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Sec. 10. Administration of the LCU. - The administration of the local college
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or university shall be vested in the President, who shall render full-time service to
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implement policies promulgated by the Governing Board. The LCU shall be appointed
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by the Governing Board upon the recommendation of a search committee duly
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constituted by the Board.
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The President of the LCU shall have a term of four (4) years and shall be
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eligible for reappointment for another term, unless otherwise provided for in the
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ordinance creating the LCU.
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The president shall hold an appropriately earned doctoral degree and should
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have at least five (5) years of relevant administrative experience, without prejudice
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to the provisions of additional qualifications to be set by the governing board of the
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LCU.
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In case of vacancy in the Office of the President by reason of death,
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compulsory retirement, resignation, removal for cause or incapacity of the President
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to perform the functions of his/her office, the Board shall have the authority to
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designate an Officer-in^Charge of the College pending the appointment of a new
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President.
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The powers and duties of the President of a LCU, 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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The salary of the President of the LCD 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 the 
recommendation of the President. The appointments of these LCU officials and 
employees shall be conformity to existing civil service laws, rules and regulations.
Sec. 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 Local Colleges 
and Universities (ALCU), the faculty and the business sector. They shall elect a 
Chairman and Vice-Chairman from among themselves.
Sec. 12. 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 CHED Regional Office for review. Only the Commission en banc 
may grant the University status upon compliance with the requirements.
Sec. 13. Impiementing Ruies and Reguiations. - The CHED, in coordination 
with the Department of Interior Local Government (DILG) and the Association of 
Local Colleges and Universities (ALCU), shall promulgate the implementing rules and 
regulations as may be necessary to carry out the provisions of this Act.
Sec. 14. Separabiiity Ciause. - If any portion or provision of this Act is 
declared unconstitutional or invalid, the remainder of this Act or any provisions 
hereof not affected thereby shall continue to be in force and effect.
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Sec. 15. Repealing Clause. - Any law, presidential decree or issuance,
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executive order, letter of instruction, rule or regulation inconsistent or contrary to
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the provisions of this Act is hereby repealed or modified accordingly.
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Sec. 16. Effectivity. - This Act shaii take effect after fifteen (15) days
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foliowing its complete publication in the Official Gazette or a newspaper of general
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circulation.
Approved,
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