LE REPRESEN

 REGEIVED

Republic of the Philippines
HOUSE OF REPRESENTATIVES
Queson City

EIGHTEENTH CONGRESS
First Regular Session

46
HOUSE BILL NO.

Introduced by HON. LUIS RAYMUND “LRAY” F. VILLAFUERTE, JR.

EXPLANATORY NOTE

The Local Government Code has duly empowered local government units (LGUs) to
establish and operate specific education institutions. Sections 447, 458 and 468 of
Republic Act 7160 empower municipalities, cities and provinces, respectively to —

“provide for the establishment and operation of vocational and technical
schools and similar post-secondary institutions; and, with the approval of
the Department of Education, Culture and Sports (DECS) and subject to
existing laws on tuition fees, fix reasonable tuition fees and other school
charges in educational institutions, subject to the availability of funds and
to existing laws, rules and regulations.”

By virtue of the aforementioned provision, colleges and universities fully ran and
subsidized by LGUs have mushroomed across the country, offering both academic
and non-academic programs. This has allowed the State to extend affordable
education to its citizens, including those residing outside Metro Manila.

While it is the paramount duty of the State to protect and promote the right of all
citizens to quality education’, it does not begin and end with the establishment of
these educational institutions. The State must ensure that these schools consistently
meet two (2) important criteria. First, they have to provide quality education fully
compliant with the standards of the Commission on Education (CHED). Second,
these schools must be administratively sound as they run primarily on government

resources. This bill is hereby proposed to ensure that the aforementioned standards
are satisfied.

Under the proposed bill, educational institutions subject to the review, monitoring and
Visitorial jurisdiction of CHED are identified and specified. It also explains the uniform
process of establishing Local Higher Education Institutions (HEI) or Local
Universities/Colleges (LUC). Other provisions of the bill duly differentiate colleges

* Amticle XIV, Sec. 1., 1987 Constitution


from universities, and set the required capacities and terms needed in order to
transition from one to the other. Finally, the bill provides for the leadership structure
of these HEI/LUCs, and the duties and powers of the Board.

One of the key policies of the Constitution is local autonomy or the decentralization
of power to the LGUs, enabling them to extend social services, like education, to
their constituents. Consequently, it requires of the LGUs utmost accountability and
reasonable diligence in its exercise of its mandate to prevent wastage of government
funds and frustration of the public.

In light of the foregoing premises, we eamestly seek the passage of this bill.

LUIS RAY \Y” F. VILLAFUERTE, JR.


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Queson City

EIGHTEENTH CONGRESS
First Regular Session

House BILL No.2446

Introduced by HON. LUIS RAYMUND “LRAY” F. VILLAFUERTE, JR.

AN ACT
PROVIDING GUIDELINES FOR THE ESTABLISHMENT AND OPERATION OF
LOCAL COLLEGES AND UNIVERSITIES, AND FOR OTHER PURPOSES

Be it enacted by the Senate and House of Representatives of the Philippines in
Congress assembled:

SECTION 1. Short Title. This Act shall be known as the “Local Colleges and
Universities Governance Act.”

SECTION 2. Declaration of Policy. It is the policy of the State to protect and
promoted 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 the 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 herein
‘shall have the following meaning:

a) Local Higher Education institutions (HEl)/ Local College of University
(LUC) — refers to a public HEI established by a local government unit
through an establishing ordinance, and financially supported by the
concemed local government units. In Filipino, an LUC is referred to as
‘Dalubhasaan" for college and “Pamantasan’ for university.

b) Ordinance — refers to the enabling Act of the Sangguniang Panglunsod or
Panlalawigan that creates a particular LUC and serves as the character of
the said LUC.


c) Degree Program — refers to the collection of all courses in a field of study
leading to an undergraduate or graduate degree, and may also be referred
to as academic program.

d) Non-Degree Program — refers to a post-secondary academic and
vocational program below the bachelor’s degree.

e) Local Government Unit or LGU — refers to municipalities, cities and
Provinces that created or established the LUC.

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

9) University or Pamantasan — refers to an institution made up of an
undergraduate division that offers bachelor's degree and graduate division
that comprises a graduate school and professional schools each of which
may confer master’s and doctorate degrees. It is an entire socio-physical
infrastructure comprised of schools, colleges and institutes offering degree
programs in various disciplines and levels.

SECTION 4. Coverage. The provisions of this Act shall apply to:

a) New HEls to be established and operated by LGUs by virtue of local
governance;

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

ic)

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

d)

Existing LUCs which have not met the standards of the Commission on
Higher Education (CHED) prescribed in this Act.

SECTION 5. Establishment and Operation of Local HEIs by LGUs. A local HEI,
to be known as a local college or dalubhasaan, shall be established and operated by
an LGU through an ordinance duly enacted for that purpose by the Sanggunian
concemed: Provided, that before the enactment of the said ordinance, the LGU
establishing a local college shall consult and coordinate with the CHED to ensure
observance of pertinent policies and standards promulgated by the CHED and
compliance with the necessary requirements for the establishment and subsequent
effective operation of the local college

The local HEI established by the LGUs shall be given a period of four (4)
years to comply with the applicable criteria established by the CHED for the grant of


college or university status. Should CHED determine that the local HE! has not
complied with the applicable criteria despite the four-year period provided herein, the
status granted under this Act shall be automatically revoked. The CHED, through its
regional office, shall actively monitor and provide technical assistance to the local
HEI in compliance with the requirements of the Commission.

No new local HEI shall be established immediately as a local university or
pamantasan. A local HE! established by an LGU shall be known as a local college or
dalubhasaan.

A local college may subsequently apply for elevation to a university: Provided,
That it has complied with the standards and guidelines for the grant of university
status pursuant to pertinent CHED rules and regulations and that it has followed the
appropriate process of accreditation conducted by a reliable accreditation body
which found the college prepared to be elevated into a university: Provided further,
That a local college, upon conversion into a local university, shall continue to be
operated by the concemed LGU in coordination with the CHED.

Local educational institutions offering only non-degree programs shall not use
“College” or “University in its name unless they would eventually offer degree
Programs and have complied with the requisites provided for the establishment of an
college or the grant of university status under the CHED rules and regulations:
Provided, That educational institutions which have been using the name “college” or
“university” prior to the passage of this Act shall be allowed to retain the name:
Provided further, That said educational institutions shall be given a grace period by

the CHED to comply with the requirements for the status of “college” or “university”
to make them worthy of their name.

SECTION 6. Authority to Grant “University” Status. The proposal for elevation to
“University status shall be submitted to the Office of Programs and Standards, CHED
Central Office, through the CHED Regional Office, for review. Only the Commission
en banc shall grant the “University’ status upon compliance with the requirements.

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

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

SECTION. 9. Benefits and Compliance. — All LUCs which shall comply with CHED
requirements shall enjoy the following benefits:


a) Special order to graduate from CHED, thereby enabling the graduates of
LUCs to take licensure examinations given by the Professional Regulation
Commission, and civil service examinations given by the Civil Service
Commission;

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

©) Quality assurance support from CHED, if qualified, pursuant to the CHED
rules; and

d) Acceptance of foreign students subject to compliance with the
requirements of competent regulatory agencies.

SECTION 10. Governing Board of a Local College or University. — The governing
board of a college or dalubhasaan shall be its Board of Trustees (BOT) while the
governing board or a university or Pamantasan shall be its Board of Regents (BOR).
The governing board of an LUC, hereinafter referred to as the Board, shall be
composed of the following:

a) Local Chief Executive or his duly designated representative, as
chairperson;

b) CHED Chairperson or his duly designated representative, as co-
chairperson;

°)

President of the LUC, as vice-chairperson;

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

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

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

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

i) Division Superintendent of the Department of Education (DepEd), as
member; and


j) Two (2) representatives from the private sector who have distinguished
themselves in their profession or field of specialization and are bona fide
residents of the community where the LUC is located, as members.

One of the two (2) representatives from the private sector shall come from the
business industry sector. They shall be appointed by the local chief executive and
shall serve for a term of two (2) years from the date of their respective appointments.

The terms of office of the president of the faculty association, the president of
‘student council, and the president of the alumni association shall be co-terminous
with the respective terms of office pursuant to their respective constitutions and by-
laws.

SECTION 11. Powers of the Board. - The Board shall promulgate policies on
education, science and technology, arts, culture and sports, as well as policies,
‘standards and thrusts in accordance with the declared state policies on higher
education, such as Republic Act No. 7722 or the “Higher Education Act of 1994” and
other pertinent laws, as well as the principle of local autonomy enshrined in Republic
Act No. 7160 or the “Local Government Code of 1991.”

The CHED, in the issuance of academic policies and standards affecting
LUCs, shall take into account the different characteristics and the distinct features of
the LUCs, their organizational set-up, and their operation: Provided, That the CHED
shall, at all times, devise ways and practices that will ensure that LUCs will remain
committed to the delivery of quality education to its students.

The Board shall have the following specific powers and duties, in addition to
its general powers of administration and the exercise of all powers granted to the
board of directors of a corporation under Section 36 of the Batas Pambansa Big. 68,
otherwise known as the Corporation Code of the Philippines:

a) To enact rules and regulations not contrary to law as may be necessary to
carry out the purposes and functions of the LUC;

b) To receive and appropriate all sums, as may be provided, for the support
of the university or college in the manner it may determine, and its
discretion to carry out the purposes and functions of the LUC;

©) To receive in kind and in trust legacies, gifts, and donations of real and
personal properties of all kinds, to administer and dispose the same when
necessary for the benefit of university or college, subject to limitations,
discretions, and instructions of the donors, if any. Such donations shall be
exempt from all taxes and shall be considered as deductible items from
the income tax of the donor;


d) To fix the tuition fees and other school charges, such as but not limited to
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 or unreasonable as to
deviate from the purpose for which the LUCs are created.

Such fees and charges, including government subsidies and other income
generated by the LUC, shall constitute a special trust fund and shall be
deposited in any authorized government depository bank, and all interests
that shall accrue therefrom shall form part of the same fund for the use of
the LUC

Any provision or existing laws, rules and regulations to the contrary
notwithstanding, any income generated by the LUC from tuition fees and
other charges, as well as from the operation of auxiliary services and land
grants, shall be retained by the LUC, and may be disbursed by the Board
for instruction, research, extension services, or other programs/projects of
the LUC: Provided, that all fiduciary fees shall be disbursed for the specific
purpose for which they are collected.

If, for reason of control, the university or college shall be able to pursue
any project for which funds have been appropriated and allocated under its
approved program of expenditures, the Board may authorize the use of
said funds for any reasonable purpose which, in its discretion, may be
necessary and urgent for the attainment of objectives and goals of the
Luc;

e)

To adapt and implement a socialized scheme of tuition and school fees for
greater access to poor but deserving students;

f) To authorize the construction or repair of its building, machineries,
equipment, and other facilities, as well as the purchase and acquisition of
real and personal properties, including necessary supplies, materials, and
equipment. Purchase and other transactions entered into by the LUC
through the Board shall be exempt from all taxes and duties, subject to
applicable BIR (Bureau of Internal Revenue) rules and regulations;

9

To appoint, upon the recommendation of the search committee created by
the Board, vice presidents, deans, directors, heads of departments, faculty
members and other officials and employees.

h) To fix and adjust salaries of faculty members and administrative officials
and employees, subject to the provisions of the revised compensation


laws governing hours of service, and such other duties and conditions as it
may deem proper; to grant them, at its discretion, leaves of absence under
such regulations as it may promulgate, any provisions of existing law to
the contrary notwithstanding; and to remove for cause in accordance with
the requirements of due process of law;

i) To approve the curricula and institutional programs of the institution:
Provided, That it conforms to the CHED guidelines;

j) To approve rules of discipline for the administrative and academic staff of
the college or university to ensue orderly and effective governance thereof;

k) To set policies on admission and graduation of students: Provided, That it
conforms to the CHED guidelines;

1) 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 certificate of completion of
non-degree and non-traditional courses; Provided that these conform with
the applicable guidelines of the CHED;

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

n)

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

©) To adopt a tuition scheme that shall prescribe a different rate of fees for
students who are residents of the area or LGU where the LUC is located
and for those who are non-residents;

p) To delegate any of its power and duties for the hereinabove to the
president and/or other officials of the LUC as it may deem appropriate so
as to expedite the administration of the affairs of the university or college;

q

To authorize an external management audit of the institution, to be
coordinated with CHED, and to institute reforms, including academic and
structural changes, on the basis of the audit results and recommendations;

D

To enter into joint ventures with business and industry for the profitable
development and management of the economic assets of the college or
university, the proceeds from which, shall be used for the development
and strengthening of the LUC;


8) To develop consortia and other forms of linkages with the LGUs,
institutions, and agencies, both public and private, local and foreign, in
furtherance of the purposes and objectives of the institutions;

t) To develop academic arrangements for institution capability building with
appropriate institutions and agencies, public or private, local or foreign,
and to appoint experts/specialists as consultants, or visiting or exchange
professors, scholars, researchers, as the case may be;

u) To set up the adoption of modem and innovative modes of transmitting
knowledge such as the use of information technology, the dual system,
open leaming, community laboratory, etc., for the promotion of greater
access to education within the institution;

v)

To establish policy guidelines and procedures for participative decision
making and transparency within the institution;

W) To privatize, where most advantageous to the institution, management of
the non-academic services such as health, food, building or grounds or
property maintenance and similar objectives; and

x)

To extend the term of the president of the LUC beyond the age of
retirement, but not later than the age of seventy (70)m whose performance
has been unanimously rated as outstanding, and upon unanimous
recommendation by the search committee for the president of the
institution concemed.

SECTION 12. Administration of the LCU. — The administration of the LCU shall be
vested in the President who shall render full-time service to implement policies
promulgated by the Board. He/She shall be appointed by the Board upon the
recommendation of a search committee duly constituted by the Board.

The President of the LUC shall have a term of five (6) years and shall be
eligible for reappointment for another term, unless otherwise provided for in the
ordinance creating the LUC.

The President must have an appropriate earned Master's degree,
management expertise, and at least five (5) years of relevant administrative
experience, without prejudice to the provisions of additional qualifications to be set
by the governing board of the LUC.

In case of vacancy in the Office of the President by reason of death,
compulsory retirement, resignation, removal for cause or incapacity of the President


to perform the functions of his/her office, the Board shall have the authority to
designate an officer-in-charge of the LUC, within a period of six months to one year,
pending the appointment of a new President.

The powers and duties of the President of the LUC, in addition to those
especially provided in this Act, shall be those usually pertaining to the Office of the
President of other colleges, and those delegated by the Board. The salary of the
President of the LUC shall be set by the Board, taking into consideration the
applicable civil service rules and regulations and ensuring that the same be
comparable to that being received by the presidents of similar educational
institutions.

SECTION 13. Search Committee for President of the LUC. — Six (6) months
before the expiration of the term of office of the incumbent President, the Board shall
appoint a Search Committee for President of the LUC. The Search Committee shall
conduct the search in accordance with the procedure and criteria established by the
CHED.

The Search Committee shall have five (5) members to be appointed by the
Board. The composition of the Search Committee shall include a representative from
the LGU concerned, the academe, the Association of Local Colleges and
Universities (ALCU), the faculty, and the business sector. They shall elect a
Chairperson and Vice-Chairperson and Vice-Chairperson from among themselves.

SECTION 14. The Administrative Council. — An Administrative Council may be
created, which shall consist of the President of the LUC as Chairperson vice-
presidents, deans, directors and other officials of equal rank as members, whose
duty is to review and recommend to the Board policies governing the administration,
management and development planning of the LUC.

SECTION 15. The Academic Council. — An Academic Council may be created,
which shall be composed of the President of the LUC, who shall act as Chairperson,
and all academic staff with the rank of at least an assistant professor, as members.

The Academic Council shall have the power to review and recommend the
curricular offerings and rules of discipline of the LUC, subject to the approval of the
Board. It shall fix the requirements for the admission of students, as well as for their
graduation and conferment of degrees, subject to review and approval by the Board
through the President of the LUC. It shall have the disciplinary power over students
of the LUC and shall formulate academic policies, rules and regulations on the
discipline, subject to the approval of the Board,


SECTION 16. Academic Freedom. — Pursuant to paragraph 2, Section 5 of Article
XIV of the Constitution of the Republic of the Philippines, all institutions of higher
leaming, public or private, shall enjoy academic freedom and institutional autonomy.

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

SECTION 18. Implementing Rules and Regulations. - The CHED, in coordination
with the Department of Interior and Local Government (DILG) and the ALCU, shall
promulgate the implementing rules and regulations as may be necessary to carry out
the provisions of this Act within sixty (60) days from the effectivity of this Act

SECTION 19. Exclusion Clause. - The Act shall apply to all LUCs duly created by
their ordnances enacted for that purpose, except for the Pamantasan ng Lungsod ng
Maynila (PLM), which was created by virtue of Republic Act 4196. However, in so far
as faculty qualification, curriculum and instruction, and facilities are concemed, the
PLM shall be govemed by this Act.

SECTION 20. Exclusion Clause. - \f any provision of this Act is declared

unconstitutional or invalid, the remaining provisions which are not affected thereby
shall continue to be in full force and effect.

SECTION 21. Repealing Clause. — All laws, presidential decrees or issuances,
executive orders, rules and regulations or parts thereof contrary to or inconsistent
with the provisions of this Act are hereby repealed, modified or amended
accordingly,

SECTION 22. Effectivity Clause. — This Act shall take effect fifteen days (15) days

after its publication in the Official Gazette or in at least two (2) newspapers of
general circulation.

Approved,