Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City, Metro Manila

SIXTEENTH CONGRESS
Second Regular Session

HOUSE BILL NO. 4962

Introduced by Honorable MARK A. VILLAR

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

EXPLANATORY NOTE

The 1987 Constitution states 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 such education accessible to all.” (Section 1, Article XIV)

Giving due importance to this constitutional mandate, a number of our Local
Government Units have taken the initiative to make higher education accessible to
their constituents by establishing, through ordinances, local colleges and universities
(LCUs) within their territorial jurisdiction under the provisions of the Local
Government Code of 1991 or Republic Act No. 7160. 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 constituent it serve

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 leaming

It is therefore recommended that the foregoing bill be approved. —


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City, Metro Manila

SIXTEENTH CONGRESS
Second Regular Session

HOUSE BILL NO. _ 49 62

Introduced by Honorable MARK A. VILLAR

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

SECTION 1. Short Title, - This Act shall be known as “The Local
Colleges and Universities Governance Act of 2014."

SECTION 2. Declaration of Policy, — It is 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,

SECTION 3. Definition of Terms. - As used in this Act, the terms
enumerated below shall have the following meaning

(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 government unit. In
Filipino, a LCU is referred to as “Dalubhasaan” for College and “Pamantasan” for
University.


(b) “Ordinance” refers to the enabling act of the Sangguniang Bayan,
Panglunsod 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 degree, and may also be referred to as
academic program,

(4) “Non-degree Program’ refers to a post-secondary program below the
bachelor 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 Dalubhasaan’ is an institution of higher learning offering
academic programs and usually pre-professional training leading to a bachelor's
degree.

(a) “University or Pamantasan’ is an institution made up of an
undergraduate 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.

SECTION 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;

(b) Higher education institutions established and operated by local
government units offering non-degree programs but would eventually offer degree
programs;

(c) Local colleges proposing elevation to university status; and

(4) Existing local colleges or universities which have not met the standards
prescribed in this Act.

SECTION 5. Establishment of Higher Education Institutions by LGUs.
— All LCU shall be established and/or operated through an Ordinance duly
enacted for that purpose by the Sanggunian concerned, Provided, that before
the enactment of said Ordinance, an LGU establishing a higher education
institution shall consult and coordinate with the Commission on Higher
Education (CHEd) to ensure observance of the necessary requirements for
the establishment and subsequent effective operation of a college.

SECTION 6. Use of “College” or “University.” - A local higher
education institution established by a local government unit shall be known as a


College. A local college may subsequently apply for elevation to a university
provided it has complied with the standards and guidelines for the grant of university
status pursuant to the 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

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 a College or
the grant of university status under the CHEd rules and regulations.

SECTION 7. Funding of LCUs. — There shall be a provision for the
regular annual appropriation from the local government unit to support and sustain
the operation of the LCU

SECTION 8. 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 of a university or Pamantasan shall be its Board of
Regents. The governing boards of a local college or university shall be composed of
the following

(a) Local Chief Executive as Chairman;
(b) President of the LCU as Vice-Chairman;

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

(d) President of the duly recognized student council of the LCU as member;
(e) President of the alumni association as member;

(f) Chairman of the Sangguniang Committee on education as member;

(g) Regional Director of CHEd as member;

(h) Two representatives from the private, each of them should have
distinguished him/herself in his/her profession or field of specialization, as
member.

The two (2) representatives from the private sector shall be appointed by the
Local Chief Executive and shall each serve for a team of two years from the date of
their respective appointments.

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


SECTION 9. Powers of the Governing Board. ~ The governing boards
shall promulgate policies in accordance with the declared state policies on higher
education, in line with the principle of local autonomy enshrined by republic Act No
7160 or the "Local Government Code of 1991.”

The CHEd, in the issuance of academic policies and standards affecting
LCUs, shall take into account the different characteristics and distinct features of the
LCUs, its organizational set-up, as well as the operations of the LCUs; Provided, that
CHED shall, at all times, devise ways and practices that will ensure that LCUs will
remain committed to the delivery of quality education to its students.

The governing 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:

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

(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, in its discretion,
to carry out the purposes and functions of the university or college;

(0) To receive 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,
directions 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, 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 necessary school charges, such as but not
limited 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 are
unreasonable as to deviate from the purpose for which the LCUs are
created

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

Any provision of existing laws, rules and regulations to the contrary
notwithstanding, any income generated by the university or college from tuition fees
and other charges, as well as from the operation of auxiliary services and land
grants, shall be retained by the university or college: Provided, That all fiduciary fees
shall be disbursed for the specific purposes for which they are allocated.


If, for reason beyond its control, the university or college, shall not be able
to pursue any project for which funds have been appropriated and, allocated under
its approved program of expenditures, the Board of Regents/Trustees may authorize
the use of said funds for any reasonable purpose which, in its discretion, may be
necessary and urgent for the attainment of the objectives and goals of the
universities or college;

(e) To adopt 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 buildings, machineries,
equipment, and other facilities, as well as the purchase and acquisition of
real and personal properties, including necessary supplies, materials and
equipment. Purchases and other transactions entered into by the
university or college through the Board of Regents/Trustees shall be
exempt from all taxes and duties, subject to applicable BIR (Bureau of
Internal Revenue) rules and regulations;

(g) To appoint, upon the recommendation of the president of the university or
college, 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 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, leave of absence under such
regulations as it may promulgate, any provisions of existing law to the
contrary not withstanding; and to remove them for cause in accordance
with the requirements of due process of law;

(i) To improve the curricula, and institutional programs of the institution
Provided, that it conforms with the CHEd guidelines;

(j) 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 policies on admission and graduation of students;

(I) 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 for the LCUs 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;

(0) To delegate any of its powers and duties provided for herein above 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 from which to be used for the development and
strengthening of the college or university;

(1) 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 modem 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;

(v) To privatize, where most advantageous to the institution, management and
non-academic services such as health, food, building or grounds or
properly maintenance and similar such other objectives; and

(w) To extend the term of the president of the college or university beyond the
age of retirement but not later than the age of seventy (70), whose
performance has been unanimously rated as outstanding and upon
unanimous recommendation by the Search Committee for the president of
the institution concemed.

SECTION 10. Administration of the LCU. — The administration of the
local college or university shall be vested in the President who shall render full-time
service to implement policies promulgated by the Governing Board. He/She shall be
appointed by the Goveming Board upon the recommendation of the Search
Committee duly constituted by the Board


The President of the LCU shall have a term of four (4) yeas and shall be
eligible for reappointment for another term, unless otherwise provided for in the
ordinance creating the LCU

The President shall hold an appropriate earned Doctoral Degree and should
have at least five (5) years relevant administrative experience, without prejudice to
the provisions of additional qualifications to be set by the Governing Board of the
Lcu

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 College pending the appointment of a new
President

The powers and duties of the President of an LCU, in addition to those
specifically 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 LCU 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 in conformity to the existing Civil Service Laws, Rules and
Regulations.

SECTION 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.

SECTION 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.

SECTION 13. Implementing Rules and Regulations. - The Commission
on Higher Education (CHEd), in coordination with the Department of Interior and
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.

SECTION 14. 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

SECTION 15. Repealing Clause. — All Laws, Decrees, Executive
Orders, Rules and Regulations, and other Issuances, or parts thereof, contrary to or
inconsistent with this Act are hereby modified, amended or repealed accordingly

SECTION 16. Effectivity. - This Act shall take effect fifteen (15) days
after its publication in the Official Gazette or in at least two (2) newspapers of
general circulation

Approved,