HOUSE FR =PRESENTATIVES
RECEIVED

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SEVENTEENTH CONGRESS
REPUBLIC OF THE PHILIPPINES )
First Regular Session

re a Mani rs THON
Introduced by Representative Maximo B| RodrigézsJP. fe
a BILLS AND INDEX S*

ACE

House Bill No. £978
EXPLANATORY NOTE
Section 1, Article XIV of the 1987 Philippine Constitution provides that

Section 1. The State shall protect and promote the right of
all citizens to quality education at all levels, and shall take
appropriate steps to make such education accessible to all

As such, numerous Local Government Units (LGUs) have established colleges and
universities in their territorial jurisdiction thru their local ordinances And while we agree that
the establishment of these universities and colleges is vital to provide access to education to

their constituents, it must be kept in mind that what is Important is not merely access to
education but access to quality education

Without a list of definitive guidelines, many of these universities and colleges end up
being sub-par. This bill recognizes the need to rationalize the creation of local universities

and colleges to upgrade and improve the delivery of quality and accessible higher education
to the people.

In view of the foregoing, immediate approval of this billis eamestly requested.

MAXIMO B. a JR.


SEVENTEENTH CONGRESS
REPUBLIC OF THE PHILIPPINES )
First Regular Session

HOUSE OF REPRESENTATIVES

Introduced by Representative Maximo B. Rodriguez, Jr.
2978
House Bill No.

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

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 “Local Colleges and
Universities Governance Act.”

SEC. 2. Declaration of Poticy. Itis the policy of the State to protect and promote the
right of all citizens to quality education at all levels and to take appropriate steps to make
education accessible to all. In doing so, the State shall establish, maintain and support a
complete, adequate and integrated system of education relevant to the needs of the people
and society and that it shall take into account regional and sectoral needs and conditions
and shall encourage local planning in the development of educational policies and
programs,

SEC. 3. Academic Freedom. Pursuant to paragraph 2, Section 5 of Article XIV of
the Constitution of the Republic of the Philippines, all institutions of higher learning, public or
private, shall enjoy academic freedom and institutional autonomy.

SEC. 4. Definition of Terms. As used in this Act:

(a) College or Dalubhasaan — refers to an HE! offering academic programs, namely,
non-baccalaureate, baccalaureate and graduate degrees below Level Il accreditation;

(b) Degree Program - refers to a 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;

(c) Level i Accreditation - refers to the criteria defined by the Accreditation Body
subscribed to by the institution.

(d) Local Government Unit or LGU - refers to municipalities, cities and provinces
that created or established the LUC;

(e) Local Higher Education Institution (HE))Aocal University or College (LUC) -
refers to a public HEI established by a local government unit through an establishing


ordinance, and financially supported by the concerned local government unit. In Filipino, a
LUC is referred to as “Dalubhasaan’ for college and “Pamantasan’ for university;

(f) Non-Degree Program - refers to a post-secondary academic and vocational
program below the bachelor's degree;

(g) Ordinance - refers to the enabling act of the Sangguniang Panglunsod, Bayan or
Panlalawigan that creates a particular LUC and serves as the charter of said LUC;

(h) Technical-Vocational Institutes - refer to learning institutions offering technica
vocational education and training; and

(i) University or Pamantasan — refers to an HE! offering academic programs,
namely, non-baccalaureate, baccalaureate and graduate degrees above level I!
accreditation.

SEC. 5. Coverage. The provisions of this Act shall apply to:
(a) New HEIs to be established and operated by LGUs by virtue of local ordinance;

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

(c) Existing technical and vocational school operated by an LGU proposing
reclassification as college, professional institutions or universities; and

(d) Existing LUCs which have not met the minimum standards of the Commission on
Higher Education (CHED) as prescribed in CHED Memorandum Order (CMO) No. 46, series
of 2012, or the most recent CMOs or memoranda affecting policies and standards of the
HEIs; and

SEC. 6. Establishment and Operation of Local HEIs by LGUs. A local HEI, to be
known as a local college or dalubhasaan, or any typology assigned by the CHED in
accordance with changes in the Philippine Higher Educational System 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, an LGU
establishing a local college shall consult with the CHED for compliance and deployment of
resources, which shall include physical resources and finances, among others, to ensure
observance of the minimum pertinent policies and standards promulgated by CHED.

The local HEI established by LGUs shall be given a period of four 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 HEI 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 HE! shall be established immediately as a local university or pamantasan.

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A local HEI established by an LGU shall be known as a local college or dalubhasaan or any
other typology assigned by the CHED in accordance with changes in the Philippine Higher
Educational System,

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 pre-professional training or _non-
baccalaureate programs shall not use “College” or “University” in its name unless they
would eventually offer baccalaureate degree programs and have complied with the
requisites provided for the establishment of a college or the grant of university status under
the CHED rules and regulations: 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” or any other typology assigned by the CHED in accordance with changes in the
Philippine Higher Educational System.

SEC. 7, LUC as a Chartered Department of the LGU. The LUC created under its
local charter shall be treated as an independent and institutional department of the LGU not
with the same structure or governance as the other regular departments of the LGU. The
management of fiscal resources shall be patterned after the Barangay-Type Fiscal System

The LGU through the Board of Trustees/Board of Regents shall develop policies on
human resource for its LUC.

SEC 8, Authority to Grant “University” Status. A local college, upon the
recommendation of the Board of Regents/ Board of Trustees to the Sangguniang Bayan,
Panlungsod or Panlalawigan for approval, may subsequently apply for elevation to a
university or any other typology assigned by the CHED in accordance with changes in the
Philippine Higher Educational System : Provided, that it has complied with the standards
and guidelines for the grant of university status pursuant to pertinent minimum 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 concerned LGU. The proposal for elevation to
“University” status shall be submitted to the 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.

SEC. 9. Monitoring and Visitorial Powers. Pursuant to the provisions of Republic
‘Act 722, the CHED shall exercise compliance and monitoring powers over LUCs.

The CHED, in the issuance of academic policies and standards affecting LUCs, shall
ensure quality assurance by taking into account the different characteristics, peculiar needs,
4


the distinct features of the LUCs, their organizational set-up, and their operation, among
other considerations: 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, all LUCs are subject to the inspection and evaluation of the CHED.

SEC. 10. Compliance with CHED Requirements. |n relation to Section 6, all
existing LUCs must comply with the minimum requirements of the CHED within a
reasonable period of time from the effectivity of this Act.

SEC. 11, 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 goveming Board
of a University or Pamantasan shall be its Board of Regents (BOR).

‘The regular and special meetings of the Board of Trustees/ Board of Regents of the
University shall be specified in the local charter.

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) President of the LUC or his duly designated representative, as vice-chairperson;

) Chairperson of the Committee on Education of the Sanggunian, or his duly designated
representative, as member,

d) President of the Association of Local Colleges and Universities (ALCU) or his duly
designated representative, as member;

e) President of the duly recognized faculty association of the LUC, as member;
f) President of the duly recognized student council of the LUC, as member;
g) President of the duly recognized Alumni Association, as member:

h) Two (2) representatives who have distinguished themselves in their profession or field of
expertise/specialization,

One of the two representatives, one shall come from the business or industry
sector. Both shall be appointed by the Board of Trustees/Board of Regents upon the
recommendation of the Local Chief Executive and his/her term is co-terminus with the term
of the Local Chief Executive unless otherwise, recommended to serve for another term.

The terms of office of the ALCU President, the President of the faculty association, the
President of student council, and the President of the alumni association shall be
coterminous with the respective terms of office pursuant to their respective constitutions and
by-laws.

In case of vacancy in the Board by reason of resignation, death or other incapacity of
one or more of its appointed members, such vacancy shall be filled by appointment by the
5


Local Chief Executive and the appointee shall hold office for the unexpired portion of the
term,

The members shall serve without compensation other than allowances for
attendance at the meetings of the Board or on other official business authorized by
resolution of the Board,

Sec. 12. The Secretary of the Local University or College (LUC) and the Secretary
of the Board of Trustees/Board of Regents, There shall be a Secretary of the Local
University or College, who shall serve as the Secretary of the Board of Trustees/Board of
Regents, appointed by the Board of Trustees/Board of Regents upon recommendation of
the University President. He shall be the custodian of all official records of the University.

SEC. 13. Powers of the Board. The Governing Board shall be the highest
policymaking body of the LUCs.

The Board shall have the following specific powers and duties, in addition to its general
powers of administration and the exercise of all the powers granted to the board of directors
of a corporation under Section 36 of Batas Pambansa Big. 68, otherwise known as the
Corporation Code of the Philippines and, all other powers granted by the local ordinance
creating the LUC provided it is not against the law, public morals and public policy.

(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 from the LGU assistance to augment the internal sources of funds, 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;

(c) 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
the university or college, subject to limitations, discretions and instructions of the donors, if
any;

(d) To fix the tuition fees and other school charges, such as but not limited to
matriculations 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 based on the guidelines of the CHED.

It may also adopt a socialized tuition scheme that shall prescribe a different rate of
fees for students who are not residents of the area or LGU where the LUC is located

Such fees and charges, including government subsidies and other income generated
by the LUC, shall constitute a regular 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.

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
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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;

(a)

(b)

(h)

0)

vv)

(k)

To supervise the construction or repair of its building, machineries, equipment, and
other facilities, as well as the purchase and acquisition of real 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 Customs duties, subject to applicable BIR (Bureau of Internal Revenue) rules and
regulations;

To appoint, upon the recommendation of the President, vice presidents, deans,
executive directors, heads of departments, faculty members and other officials and
employees;

To follow the salary standardization of the Department of Budget and Management for
the salaries of faculty members and administrative officials and employees, subject to
the provisions of the revised compensation laws governing hours of service and. other
conditions as it may deem proper and existing Civil Service laws.

To approve the curricula, and institutional programs of the institution: Provided, that it
conforms to the minimum CHED requirements and guidelines;

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,

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

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
non-traditional/innovative courses: Provided that these conform with the applicable
guidelines of the CHED and TESDA;

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

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

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

To develop consortia, academe-industry linkage and, other forms of networks with the
LGUs, institutions and agencies, both public and private, local and foreign, in
furtherance of the purposes and objectives of the institutions;

z


(I) To develop academic arrangements for institution capacity and 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;

(m) To set up the adoption of modern and innovative modes of transmitting knowledge such
as but not limited to the use of information technology, the dual system, open learning,
community laboratory, etc., for the promotion of greater access to education;

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

(0) To file with the Local Chief Executive or to the Sangguniang Panlungsod, Bayan or
Panglalawigan an annual detailed report, setting forth the progress, condition, and
needs of the College or University.

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

(q) To extend the term of the president of the LUC beyond the age of retirement, but not
later than the age of seventy (70), whose performance has been unanimously rated as
outstanding and upon consent and approval of the Sangguniang Panlungsod, Bayan or
Panlalawigan.

SEC. 14. Tax Exemptions, All grants, bequest, endowments, donations and
contributions made to the local university or college to be used actually, directly and
exclusively by the said local university or college shall be exempt from donor's tax and the
same shall be considered as allowable deduction from the gross income of the donor for
purposes of computing the taxable income of the donor in accordance with the provisions of
the National Internal Revenue code of 1997, as amended;

SEC. 15. Quorum. A quorum of the Board shall consist of a majority of all the
members holding office at the time the meeting of the Board is called. All processes against
the Board of Regents shall be served on the president or the secretary thereof,

SEC. 16. The Executive Committee. The enabling ordinance may include a
provision on the creation of an Executive Committee, as it may deem proper and necessary,
for the purpose of carrying out and exercising the regular functions and powers of the Board
and may be composed of the following

(a) President of the LUG as the Presiding Officer;

(b) Chairperson of the Committee on Education of the Sanggunian, or duly
designated representative, as member;

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


(d) President of the duly recognized student council of the LUC, as member;
(e) President of the duly recognized Alumni Association, as member;

All acts and resolutions approved by the Executive Committee shall be ratified by the
Board. Important matters affecting the administrative and/or academic affairs of the LUC
shall be reported to the Board through the Chairperson.

The regular and special meetings of the Executive Committee shall be specified in
the local charter. The Executive Committee shall receive allowances as may be authorized
by the Board.

SEC. 17. Administration of the LUC. The administration of the LUC shall be vested
in the President who shall render full-time service to implement policies promulgated by the
Board of Trustees/Board of Regents.

He/She shall be appointed by the Chief Local Executive to be concurred and
affirmed by the Sangguniang Panlungsod, Bayan or Panlalawigan.

The President of the LUC shall have a term of four (4) years, unless extended or re-
appointed for another term or unless sooner revoked by the Local Chief Executive to be
concurred and affirmed by the Sanggunian and transmitted to the Board of Trustees/Board
of Regents.

The President must preferably have at least a Doctorate Degree or Master's degree
with at least six (6) years of relevant administrative experience, without prejudice to the
provisions of additional qualifications to be set by the governing board of the LUCs or the
local charter.

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, within a period of 30 days but not more than 45 days
upon vacancy, shall have the authority to designate an officer-in-charge of the LUC, for a
period of six months to one year, pending the appointment of a new President.

The powers and duties of the President of the LUG, in addition to those specially
provided in this Act, shall be those usually pertaining to the Office of the President of other
colleges and universities, and those delegated by the Board and defined in the charter or
local ordinance creating the LUC.

For the effective operation of the LUC, the vice-presidents, deans, directors, heads
of departments, faculty, non-teaching personnel and such other officials and employees
shall be appointed or designated by the Board of Trustees/Board of Regents, taking into
consideration the recommendation of the President. The appointments or designations of
these LUC officials and employees shall be in conformity with the existing civil service laws,
ules and regulations. The administration of the LUC shall be vested in the President who
shall render full-time service to implement policies promulgated by the Board. He/She shall

9


be appointed by the Board upon the recommendation of a search committee duly
constituted by the Board

SEC. 18. The Administrative Council. An Administrative Council shall be created,
which shall consist of the President of the LUC as Chairperson, vice presidents,
administrative heads or division heads, deans, executive directors or directors and other
officials of equal rank as members, whose duties is to review and recommend to the Board
policies governing the administration, management and development planning of the LUC.

SEC. 19. The Academic Council. An Academic Council shall 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 LUG. It shall have the disciplinary power over students of the LUC and shall formulate
academic policies and rules and regulations on discipline, subject to the approval of the
Board,

SEC. 20. Appropriations for LUCs. There shall be included in the local Charter an
annual appropriation or so much amount thereof to support and sustain the full operation
and maintenance of the LUC.

The LGU shall authorize the Board to. disburse the allotted amount in accordance
with the line-item expenditure of the LUC as determined by the Board, subject to limitations
imposed by law: Provided: however, that any or all funds allotted and accruing to the LUC
shall be put and kept under its name and account, and provided further, that any surplus for
un-appropriated amount at the end of each year shall remain with the coffers and
considered as savings of the LUC. There shall be a provision for the regular annual
appropriation from the LGU to support and sustain the operation of the LUCs. Likewise,
there shall be a budget allocation for the accreditation of programs to be provided by the
LGU

A. one time appropriation of One Million Pesos (P1,000,000.00}f or the local
university or college per territorial jurisdiction of a local government will be allocated by the
National Government to be placed in a trust fund for the LUC to eam interest income. In
addition, the Local Government Unit shall set aside one percent of its Real Property Tax to
allocate to the Tertiary Education Fund (TEF).

The LUC shall submit and have an approved budget annually. The budget will be
drawn from the TEF, Any shortfall from the TEF shall be provided from the General Funds
of the Local Government Unit

SEC. 21. Implementing Rules and Regulations..The CHED, in coordination with
the Department of the Interior 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.

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SEC. 22, Exclusion Clause. This Act shall apply to all LUCs duly created by their
ordinances enacted for that purpose, except for the Pamantasan ng Lungsod ng Maynila
(PLM), which was created by virtue of Republic Act No, 4196. However, in so far as faculty
qualification, curriculum and instruction, and facilities are concerned, the PLM shall be
governed by this Act.

SEC. 23. Separability Clause. If any provision of this Act shall be held
unconstitutional or invalid, the remaining provisions which are not affected thereby shall
continue to be full force and effect

SEC, 24, Repealing Clause. All laws, executive orders, decrees, instructions, rules
and regulations and other issuances, or parts thereof, contrary to or inconsistent with this
Act are hereby modified, amended or repealed accordingly.

SEC. 25. Effectivity. This Act shall take effect fifteen (16) days after its publication
in the Official Gazette or in a newspaper of general circulation

Approved,

aL