EIGHTEENTH CONGRESS OF THE 
]
REPUBLIC OF THE PHILIPPINES 
]
First Regular Session 
]
SENATE 
S. No.
370
‘u O .liir :il li'.'
•19 
JUL11 
PI 30
RECtlV
Introduced by SENATOR SHERWIN T. GATCHALIAN
AN ACT
PRESCRIBING THE MANDATORY GUIDELINES ON THE ESTABLISHMENT 
AND OPERATION OF LOCAL UNIVERSITIES AND COLLEGES AND FOR
OTHER PURPOSES
EXPLANATORY NOTE
Section 1, Article XIV of the 1987 Philippine Constitution mandates that the 
State shall protect and promote the right of all citizens to quality education at all 
levels and shall take appropriate steps to make education accessible to all. Further, 
Section 2, Article XIV of the aforesaid provides that 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 the State shall encourage 
self-learning, independent and out-of-school study programs particularly those that 
respond to community needs.
Pursuant to this constitutional mandate, a number of local government units 
have taken the initiative to make higher education accessible to their constituents by 
establishing Local Universities and Colleges (LUCs) created through ordinances of 
their respective Sanggunians as set forth under Republic Act No. 7160 or the Locai 
Government Code o f 1991.


With the passage of R.A. 10931, or the Universal Access to Quality Tertiary 
Education Act, students enrolled in CHED-accredited LUCs are now exempt from 
paying tuition and other school fees. However, only 78 out of 107 LUCs were 
included in the list of eligible institutions for free higher education in 2018. For 
Academic Year 2019-2020, the CHED has approved the inclusion of additional 27 
higher educational institutions in the list of accredited LUCs.
The creation of LUC within a particular local government unit is a 
commendable effort to provide greater access and equitable distribution of 
opportunities for Filipinos to acquire higher education. However, in order that 
optimum standard is achieved in the formulation and implementation of policies on 
higher education, there is a need to prescribe and institutionalize the guidelines on 
the establishment and operation of these LUCs.
This 
measure seeks to 
prescribe the 
mandatory standards for the 
establishment and operation of LUCs to ensure that quality education is given 
paramount consideration by LGUs when creating a higher education institution. This 
bill recognizes the need to enforce the supervisory and regulatory powers of CHED 
to make certain that LUCs have the capacity to operate as a higher education 
institution and offer degree programs that will shape the future of their students. 
Furthermore, this bill likewise institutes the parameters to shield its operation and 
administration from undue influence of partisan politics.
Thus, the passage of this bill is earnestly sought.


EIGHTEENTH CONGRESS OF THE 
]
REPUBLIC OF THE PHILIPPINES 
]
First Regular Session 
]
SENATE
n
S. No. 
o  t ^
• 
■’ 
1 0  T i rf  c (  .1' '  • :
'19 JULll PI 31
RCCLP' 
<1
Introduced by SENATOR SHERWIN T. GATCHALIAN
AN ACT
PRESCRIBING THE MANDATORY GUIDELINES ON THE ESTABLISHMENT 
AND OPERATION OF LOCAL UNIVERSITIES AND COLLEGES AND FOR
OTHER PURPOSES
Be it enacted by the Senate and the House o f Representatives o f the 
Philippines in Congress assembled:
1 
SEC. 1. Short Title. -  This Act shall be known as the "Local Universities and
2 
Colleges Governance A ct"
3 
SEC. 2. Declaration o f Policy. -  It is the policy of the State to establish,
4 
maintain and support a complete, adequate and integrated system of education
5 
relevant to the needs of the people and society. Towards this end, the mandatory
6 
guidelines on the establishment of Local Universities and Colleges (LUCs) is
7 
prescribed to achieve a standard and integrated system of higher education and
8 
provide a relevant direction in their governance.
9 
SEC. 3. Definition o f Terms. -  As used in this Act, these terms shall mean:
10 
a. Commission on Higher Education (CHED) -  The government agency
11 
created by Republic Act No. 7722, otherwise known as the "Higher
12 
Education Act of 1994", which has jurisdiction over all public and private
13 
higher education institutions (HEIs) in the Philippines.


1 
b. Civil Service Commission (CSC)-The Constitutional Commission of
2 
the Philippines with responsibility over the civil service. It is tasked with
3 
overseeing the integrity of government actions and processes involving
4 
human resource actions.
5 
c. Governing B oard- The highest policy-making body of a local university
6 
or college.
7 
d. Local University or College (LUC) -  The public higher education
8 
institution established by a local government unit through an enabling
9 
ordinance.
10 
e. Local Government U nit (LGU) -  Any municipality, city or provincial
11 
government that created or established the LUC.
12 
f. 
Ordinance -  The enabling act of the Sangguniang Bayan, Panglunsod or
13 
Panlalawigan that creates a particular LUC.
14 
g. Sanggunian -  The local legislative body which includes Sangguniang
15 
Bayan for Municipality, and Sangguniang Panlalawigan for Province.
16 
SEC. 4. Coverage -T h is  Act shall apply to the following:
17 
a) Educational institutions to be established and operated by LGUs for the
18 
purpose of offering higher degree programs.
19 
b) Educational institutions established and operated by LGUs offering non-
20 
degree programs.
21 
c) Existing Local Universities and Colleges.
22 
SEC. 5. Establishment o f LUCs- All LUCs shall be established through an
23 
ordinance duly enacted for that purpose by the Sanggunian concerned provided that
24 
prior to the enactment of the same, the LGU establishing a higher education
25 
institution shall consult and coordinate with CHED, through the Regional office
26 
having jurisdiction of the place where the institution is intended to be established to
27 
ensure full compliance with the mandatory requirements as set forth in this Act.


1 
SEC. 6. Mandatory Requirements fo r the Establishment o f LUC- The
2 
CHED shall strictly require all LUCs to submit the following requirements for review
3 
and approval:
4 
a) Feasiblity study that shall include but shall not be limited to the following
5 
discussions: 1) the necessity for a local higher education institution in the
6 
area; 2) human resource requirements of the industry to determine
7 
proposed program offerings; 3) target offerings; 4) financial capacity of
8 
the LGU to establish and sustain the operation of the LUC.
9 
b) Certification of availability of funds by the treasurer of the LGU concerned,
10 
as provided under the pertinent provisions of the Local Government Code
11 
of 1991.
12 
c) A project development plan to show that the LGU allocated a school site
13 
with appropriate size and location pursuant to the applicable provisions of
14 
the Building Code of the Philippines, blueprint of architectual design for its
15 
buildings and other physical facilities and provisions for acquisition of
16 
instructional 
materials 
and 
equipment 
that 
comply 
with 
CHED
17 
Memorandum Orders (CMOS) pertinent to the program offered.
18 
d) A five-year institutional 
development plan 
duly approved 
by the
19 
Sanggunian which shall include but shall not be limited to the following:
20 
a) 
annual 
budgetary 
allocation; 
b) 
organizational 
structure 
and
21 
composition of the governing board; and c) plantilla of positions duly
22 
approved by the Civil Service Commission.
23 
e) A duly established Educational Institution by the LGU shall require the
24 
imprimatur of the CHED prior to the offering of 
higher education
25 
programs. 
The Chairman of the governing board, or its President when
26 
so authorized by the governing board, shall file with CHED an application
27 
to offer a higher education program. The application shall be supported
28 
with documents indicating compliance with the policies and standards
29 
relative to such degree program.


1 
SEC. 7. Supervisory and Visltoria! Powers o f CHED- All LUCs are subject
2 
to inspection and evaluation of CHED.
3 
SEC. 8. The Governing Board o f LUCs -a) Composition- The governing
4 
body of local universities and colleges shall be composed of the following:
5 
1. Local Chief Executive as Chairperson;
6 
2. President of the LUC as Vice-Chairperson;
7 
3. President of the duly recognized faculty association of the LUC as member;
8 
4. President of the duly recognized student council of the LUC as member;
9 
5. President of the alumni association as member;
10 
6. Chairman of the Sangguniang Committee on Education as member;
11 
7. A representative from CHED with rank not lower than Director as member;
12 
8. Treasurer of the LGU establishing the LUC;
13 
9. Budget Officer of the LGU establishing the LUC; and
14 
10. Two (2) representatives from the private sector, who are of known
15 
probity and should have distinguished themselves in their respective professions or
16 
fields of specialization in the municipality, city, or province where the local university
17 
or college is located. They shall be appointed by the Local Chief Executive and shall
18 
each serve for a term of two (2) years from the date of their respective
19 
appointments.
20 
b) Term o f Office -  i) The LUC President and the presidents of the faculty
21 
association, the student council, and the alumni association shall sit in the Board
22 
until the expiration of their term of office in such capacities; 
ii) The two (2)
23 
representatives from the private sector shall serve for a term of two (2) years.
24 
c) Meetings - 
The Governing Board shall regularly convene every month.
25 
The Chairman of the Board may call for a special meeting whenever necessary,
26 
provided that members are notified in writing at least three (3) days prior to the
27 
said meeting.
28
d ) Q uorum  -  A majority of all the members of the governing board holding


1 
office at the time of its regular or special meeting shall constitute a quorum.
2 
SEC. 9. P ow ers o f th e  G overning Board. - The governing board of the
3 
LUCs shall have the following powers and duties:
4
5
6
7
8 
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
a) To promulgate policies in accordance with the declared state policies on 
higher education as well as the policies, standards and thrusts of the 
CHED under R.A No. 7722 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 develop academic arrangements and linkages for institutional capability 
building with appropriate institutions and agencies, both public and 
private, local and foreign;
d) To determine and approve curricular programs and course offerings in 
response to the needs and demands of the community provided that 
these should comply with policies and guidelines set by CHED;
e) To promulgate policies on admission, retention and graduation of students 
and to award degrees, titles, diplomas and certificates;
f) To ensure the efficient management of non-academic services such as 
medical and dental, guidance and counseling, property maintenance and 
similar services;
g) To institutionalize research and extension programs;
h) To appoint the President of the local university or college upon the 
recommendation of the search committee;
i) To confirm appointments of other school officials, teaching and non­
teaching personnel appointed by the President;
j) To delegate any of its powers and duties provided for herein to the


1 
President and/or other officials of the university or college as it may deem
2 
appropriate in order to expedite the administration of the affairs of the
3 
LUC;
4 
k) To fix the tuition fees, miscellaneous fees and other school charges as the
5 
board may deem proper to impose after due consultations with the
6 
involved sectors.
7 
SEC. 10. Adm inistration o f the LUC - The administration of the local
8 
university or college shall be vested in the President who shall render full-time
9 
service. The governing board upon the recommendation of a duly constituted search
10 
committee shall appoint him.
11 
The President of the local college or local university shall respectively hold an
12 
earned masteral or doctoral degree in education, administration or other related
13 
fields, and should have at least three (3) years of relevant administrative
14 
experience, without prejudice to the provision of additional qualifications to be set
15 
by the governing board of the LUC. The term of office of the President shall be three
16 
(3) years and may be re-appointed by the Board until the mandatory age of
17 
retirement.
18 
In case of vacancy in the Office of the President by reason of death,
19 
compulsory retirement, expiration of term, resignation, removal for cause or
20 
incapacity of the President to perform the functions of his office, the Board shall
21 
have the authority to designate an Officer-in-Charge of the LUC pending the
22 
appointment of a new president.
23 
The powers and duties of the President of the LUC, in addition to those
24 
specifically provided in this Act, shall be those usually pertaining to the Office of the
25 
President of other colleges, and those delegated by the Board.
26 
The salary of the President of the LUC shall be set by the Board, taking into
27 
consideration the applicable rules and regulations of the Civil Service Commission
28 
(CSC) and the Department of Budget and Management (DBM) and ensuring that the
29 
same shall be comparable to that being received by the presidents of similar
6


1 
educational institutions.
2 
The vice-presidents, deans, directors, heads of departments, faculty, non-
3 
teaching personnel and such other officials and employees of the LUC shall be
4 
appointed by the president, subject to confirmation of the Board. The appointments
5 
of these LUC officials and employees shall conform to existing civil service laws,
6 
rules and regulations.
7 
The aforementioned officers and employees may be removed from office for
8 
causes established under the rules of the CSC.
9 
SEC. 11. Search Committee. - In case of vacancy in the Office of the
10 
President brought about by any of the causes mentioned in the preceding section,
11 
the governing board shall organize and convene a Search Committee for the
12 
selection of a president.
13 
The Search Committee shall have three (3) members to be appointed by the
14 
governing board shall not come from the Governing Board. 
It shall elect a
15 
Chairperson and shall ensure that the new LUC president is selected within three (3)
16 
months from the time the position is vacated.
17 
Sec. 12. Elevation to University Status. - A new local higher education
18 
institution shall start as a local college and the grant of a university status is
19 
contingent upon the satisfaction of all requirements embodied under the rules and
20 
regulations of CHED.
21 
SEC. 13. Penalties fo r Non-Compliance. - LUCs are mandated to comply
22 
with the requirements set forth under this Act. Any person who acts in violation of
23 
this section shall incur administrative liabilities as may be determined in the
24 
implementing rules and regulations.
25 
SEC. 14. Existing LUCs. - In the interest of efficient control and regulations
26 
by CHED, LUCs which are already existing at the time of the effectivity of this Act
27 
shall be allowed to continue its operation for a non-extendible period of three (3)
28 
years to comply with the requirements set forth herein and its IRR. Non-compliance


1 
of the LUC within the specified period shall be ground for phase-out or closure of
2 
the program.
3 
SEC. 15. Im plem enting Rules and Regulations. - The Commission on
4 
Higher Education, in coordination with relevant agencies and sectors, shall
5 
promulgate the implementing rules and regulations as may be necessary to carry
6 
out the provisions of this Act.
7 
SEC. 16. Separability Clause. - Should any part of this Act be declared
8 
unconstitutional, the rest of the provisions of this Act shall continue to be in effect
9 
and subsisting.
10 
SEC. 17. Repealing Clause. - The provisions of other laws, decrees,
11 
executive orders, rules and regulations inconsistent with this Act are hereby
12 
repealed, amended, or modified accordingly.
13 
SEC. 18. Effectivity. - This Act shall take effect fifteen (15) days after its
14 
publication in the Official Gazette and/or in at least two (2) national newspapers in
15 
general circulation.
Approved,