EIGHTEENTH CONGRESS OF THE ) 
SENATE OF THE PHILIPPINES 
)
First Regular Session 
)
SENATE
S. No.
142
:m fefnatf
(©ffitr of tljr se> fi'ffsrjK
*19 JUL-2 AH :10
RECEfVED i '.
"  - f
Introduced by Senator Cynthia A. V illa r
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.
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 
of their 
respective 
sanggunians, local colleges and universities (LCDs) 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 constituents 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 learning.
It is therefore recommended that the foregoing bill be approved.
CYNTHIA A. VILLAR


EIGHTEENTH CONGRESS OF THE ) 
SENATE OF THE PHILIPPINES 
)
First Regular Session 
)
SENATE
of tiK '>f rrriar?
*19 JUL -2 All :10
S. No.
142
RECEiViuE
Introduced by S enator C ynthia A. V illa r
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 o f Representatives o f the Philippines in 
Congress assembled:
1 
Section 1. Short Title. -  This Act shall be known as "The Local Colleges and
2 
Universities Governance Act of 2019."
3 
Sec. 2. Declaration o f Policy. -  It is the policy of the State to protect and
4 
promote the right of all citizens to quality education at all levels and to take
5 
appropriate steps to make education accessible to all. In doing so, the State shall
6 
establish, maintain and support a complete, adequate and integrated system of
7 
education relevant to the needs of the people and society and that it shall take into
8 
account regional and sectoral needs and conditions and shall encourage local
9 
planning in the development of educational policies and programs.
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Sec. 3. Definition o f Terms. -  
As used in this Act, the terms enumerated
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below shall have the following meaning:
12 
(a) 
"Local College or University" or 
"LCU" refers to a public higher
13 
education institution established by a local government unit through an enabling


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ordinance, and financially supported by the concerned local government unit. 
In
2 
Filipino language, an LCU is referred to as 
"Datubhasaan" for college and
3 
"Pamantasan"for university.
4 
(b) 
"Ordinance" refers to the enabling act of the Sangguniang Bayan,
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Panlungsod or Panlalawigan that creates a particular local college or university and
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serves as the charter of the said local college or university.
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(c) 
"Degree Program" refers to a collection of all courses in a discipline or
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a field of study leading to an undergraduate or graduate degree, and may also be
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referred to as academic program.
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(d) 
"Non-degree Program" refers to a post-secondary program below the
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bachelor's degree.
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(e) 
"Local Government U n ir or "LGU" refers to municipalities, cities and
13 
provinces that created or established the local college or university.
14 
(f) 
"College or Dalubhasaarf is an institution of higher learning offering
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academic programs and usually pre-professional training leading to a bachelor's
16 
degree.
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(g) 
"University or 
Pamantasarf is an 
institution 
made 
up 
of an
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undergraduate division that offers bachelor's degree and a graduate division that
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comprises a graduate school and professional schools, each of which may confer
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master's degrees and doctorates. It is an entire socio-physical infrastructure
21 
comprised of Schools, Colleges, and Institutes offering degree programs in various
22 
disciplines and levels.
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Sec. 4. Coverage. -  The provisions of this Act shall apply to:
24 
(a) 
New 
higher education 
institutions 
to 
be 
established 
by 
local
25 
government units by virtue of a local ordinance;


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(b) 
Higher education institutions established and operated 
by local
2 
government units offering non-degree programs but would eventually offer degree
3 
programs;
4 
(c) 
Local colleges proposing elevation to university status; and
5 
(d) 
Existing local colleges or universities which have not met the standards
6 
prescribed in this Act.
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Sec. 5. Establishment o f Higher Education Institutions by LGUs. -  All LCDs
8 
shall be established and/or operated through an ordinance duly enacted for that
9 
purpose by the Sanggunian concerned. Provided, that before the enactment of said
10 
ordinance, the LGU establishing a higher education institution shall consult and
11 
coordinate with the Commission on Higher Education (CHED) to ensure observance
12 
of the necessary requirements for the establishment and subsequent effective
13 
operation of a college.
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Sec. 6. 
Use o f "College" or "University". 
-  
A local higher education
15 
institution established by a local government unit shall be known as a College. 
A
16 
local college may subsequently apply for elevation to a university provided it has
17 
complied with the standards and guidelines for the grant of university status
18 
pursuant to the pertinent CHED rules and regulations and that it has followed the
19 
appropriate process of accreditation conducted by a reliable accreditation body that
20 
has found the college prepared to be elevated into a university.
21 
Local educational institutions offering only non-degree programs shall not use
22 
College or University in its name, unless they would eventually offer degree
23 
programs and have complied with the requisites provided for the establishment of a
24 
college or the grant of university status under the CHED rules and regulations.
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Sec. 7. Funding o f LCUs. -  There shall be a provision for the regular annual
26 
appropriation from the relevant local government units to support and sustain the
27 
operation of the LCUs within their respective territorial jurisdictions.
3


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Sec. 8. Governing Board o f a Local College or University. -  The governing
2 
board of a college or dalubhasaan shall be its Board of Trustees (BOT) while the
3 
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;
(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 (2) representatives from the private, each of them should have 
distinguished him/herself in his/her profession or field of specialization, 
as member.
17 
The two (2) representatives from the private sector shall be appointed by the
18 
Local Chief Executive and shall each serve for a term of two years from the date of
19 
their respective appointments.
20 
The terms of office of the President of the faculty association, the President of
21 
the student council, and the President of the alumni association shall be coterminous
22 
with their respective terms of office in their respective associations pursuant to the
23 
provisions of their respective duly-approved constitutions and by-laws.
24 
Sec. 9. Powers o f the Governing Board. -  The governing boards shall
25 
promulgate policies in accordance with the declared state policies on higher
26 
education, in line with the principle of local autonomy enshrined by Republic Act No.
27 
7160 or the "Local Government Code of 1991. "


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The CHED, in the issuance of academic policies and standards affecting LCUs,
2 
shall take into account the different characteristics and distinct features of the LCDs,
3 
its organizational set-up, as well as the operations of the LCUs; Provided, that CHED
4 
shall, at all times, devise ways and practices that will ensure that LCUs will remain
5 
committed to the delivery of quality education to its students.
6 
The governing board shall have the following specific powers and duties, In
7 
addition to its general powers of administration and the exercise of all the powers
8 
granted to the board of directors of a corporation under Section 36 of Batas
9 
Pambansa Big. 68, otherwise known as the Corporaitn Code of the Philippines:
10 
(a) 
To enact rules and regulations not contrary to law as may be necessary
11 
to carry out the purposes and functions of the university or college;
12 
(b) 
To receive and appropriate all sums as may be provided for the
13 
support of the university or college to carry out the purposes and functions of
14 
the university or college;
15 
(c) 
To receive in trust legacies, gifts and donations of real and personal
16 
properties of all kinds, to administer and dispose the same when necessary
17 
for the benefit of the university or college, subject to limitations, directions
18 
and instructions of the donors, if any. Such donations shall be exempt from
19 
all taxes and shall be considered as deductible items from the income tax of
20 
the donor;
21 
(d) 
To fix the tuition fees and other necessary school charges, such as but
22 
not limited matriculation fees, tuition fees, graduation fees and laboratory
23 
fees, as the board may deem proper to impose after due consultations with
24 
the involved sectors; Provided, that these fees will not be prohibitive
25 
oreunreasonable as to deviate from the purpose for which the LCUs are
26 
created.
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Such fees and charges, including government subsidies and other 
income generated by the university or college, shall constitute special trust


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funds and shall be deposited in any authorized government depository bank, 
and all interests shall accrue therefrom shall 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, and 
may be disbursed by the Board of Regents/Trustees for instruction, research, 
extension, or other allied programs/projects of the university or college: 
Provided, That all fiduciary fees shall be disbursed for the specific purposes 
for which they are collected.
If, for reason of 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 the applicable Bureau of Internal Revenue (BIR) 
rules and regulations;
(g) 
To appoint, upon the recommendation of the president of the 
university or college, the vice presidents, deans, directors, heads of 
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;
9
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(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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(j) 
To approve rules of discipline for the administrative and academic staff 
of the college or university to ensure orderly and effective governance 
thereof;
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(k) 
To set polices on admission and graduation of students; Provided, that 
these conforms with the applicable guidelines of the CHED;
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(m) 
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;
22
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(n) 
To establish research and extension centers of the LCD where such will 
promote the development of the latter;
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(o) 
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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(p) 
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 coilege;
(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;
(r) 
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;
(s) 
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;
(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 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;
(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 
and non-academic services such as health, food, building or grounds or 
property maintenance and similar such other objectives; and
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(x) 
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 concerned.
6 
Sec. 10. Administration o f the LCU. -  
The administration of the local college
7 
or university shall be vested in the President, who shall render full-time service to
8 
implement policies promulgated by the Governing Board. The LCU shall be appointed
9 
by the Governing Board upon the recommendation of a search committee duly
10 
constituted by the Board.
11 
The President of the LCU shall have a term of four (4) years and shall be
12 
eligible for reappointment for another term, unless otherwise provided for in the
13 
ordinance creating the LCU.
14 
The president shall hold an appropriately earned doctoral degree and should
15 
have at least five (5) years of relevant administrative experience, without prejudice
16 
to the provisions of additional qualifications to be set by the governing board of the
17 
LCU.
18 
In case of vacancy in the Office of the President by reason of death,
19 
compulsory retirement, resignation, removal for cause or incapacity of the President
20 
to perform the functions of his/her office, the Board shail have the authority to
21 
designate an Officer-in-Charge of the College pending the appointment of a new
22 
President.
23 
The powers and duties of the President of a LCU, 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.


1 
The salary of the President of the LCD shall be set by the Board, taking into
2 
consideration the applicable civil service rules and regulations and ensuring that the
3 
same shall be comparable to that being received by the presidents of similar
4 
educational institutions.
5 
The vice-presidents, deans, directors, heads of departments, faculty, non-
6 
teaching personnel and such other officials and employees for the effective
7 
operation of the LCD shall be appointed by the Board, taking into consideration the
8 
recommendation of the President. 
The appointments of these LCD officials and
9 
employees shall be conformity to existing civil service laws, rules and regulations.
10 
Sec. 11. Search Committee for President o f an LCU. -  Six (6) months before
11 
the expiration of the term of office of the incumbent President, the Governing Board
12 
shall appoint a Search Committee for President. The Search Committee for President
13 
of the LCU shall have five (5) members to be appointed by the Governing Board.
14 
The composition of the search committee should include a representative from the
15 
local government unit concerned, the academe, the Association of Local Colleges
16 
and Universities (ALCU), the faculty and the business sector. They shall elect a
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Chairman and Vice-Chairman from among themselves.
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Sec. 12. Grant o f University Status. -  The proposal for elevation to University
19 
status shall be submitted to the Office of Programs and Standards, CHED Central
20 
Office, through the CHED Regional Office for review. 
Only the Commission en banc
21 
may grant the University status upon compliance with the requirements.
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Sec. 13. 
Implementing Rules and Regulations. -  The CHED, in coordination
23 
with the Department of Interior Local Government (DILG) and the Association of
24 
Local Colleges and Universities (ALCU), shall promulgate the implementing rules and
25 
regulations as may be necessary to carry out the provisions of this Act.
10


1 
Sec. 14. Separability Cause. -  If any portion or provision of this Act is
2 
declared unconstitutional or invalid, the remainder of this Act or any provisions
3 
hereof not affected thereby shall continue to be in force and effect.
4 
Sec. 15. Repealing Cause. -  Any law, presidential decree or issuance,
5 
executive order, letter of instruction, rule or regulation inconsistent or contrary to
6 
the provisions of this Act is hereby repealed or modified accordingly.
7 
Sec. 16. Effectivity. -  
This Act shall take effect after fifteen (15) days
8 
following its complete publication in the Official Gazette or a newspaper of general
9 
circulation.
10
Approved,
11