EIGHTEENTH CONGRESS )
REPUBLIC OF THE PHILIPPINES )
First Regular Session )

EXPLANATORY NOTE

Local Government Units are allowed by the law to establish local colleges and
universities (LUCs). This is very beneficial to the students because education is now more

accessible to them.

However, there are some instances where the quality of education and graduates
that these LUCs produce has become questionable. This is because there are no definite
guidelines when it comes to the establishment and operation of these LUCs.

There is therefore a need to rationalize the creation of LUCs to prevent the
proliferation of substandard schools which fail to deliver quality higher education and are
‘often dubbed as mere “diploma mills.”

In view of the foregoing reasons, immediate approval of this measure is eamestly

sought
We lagge:
RUPUSB. RO! EZ


EIGHTEENTH CONGRESS )
REPUBLIC OF THE PHILIPPINES )

First Regular Session )
HOUSE OF REPRESENTATIVES
~ introduced by Representative Rufus B. Rodriguez wa
~ 3739
House Bill No.
AN ACT

PROVIDING GUIDELINES ON THE ESTABLISHMENT AND OPERATION OF LOCAL
UNIVERSITIES AND COLLEGES

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 Universities and Colleges
(LUCs) Governance Act.”

SEC. 2. Declaration of Policy. It is the policy of the State to protect and promote the right
Sf 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

Snd 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 leaming, public or
private, shall enjoy academic freedom and institutional autonomy,

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

(@) College or Dalubhasaan — refers to a higher education institution (HEI) 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 Il Accreditation - refers to a status granted to an educational program after
being granted the initial accreditation following a formal survey by the accrediting agency
and duly certified by the accreditation federation/network, effective for a period of three
years:

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

(e) Local Higher Education Institution (HE)/Local University or College (LUC) - refers
to a public HE! established by a local government unit through an establishing ordinance,
and financially supported by the concemed local government unit. In Filipino, a LUC is
feferred 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;

{a) 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 technical-
vocational education and training; and


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

SEC. 5. Coverage. The provisions of this Act shall apply to:

ia) New HEls to be established and operated by LGUs by virtue of local ordinance:

{b) Hels to be established and operated by LGUs offering non-degree programs Dut
would eventually offer degree and post-graduate degree programs;

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

(@) Existing LUCs which have not met the minimum standards of the Commission 9”
Higher Education (CHED) as prescribed in CHED Memorandum Order (CMO) No. 48, sores
OF e012, 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
ee 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 Sangqunsr
coneemed: Provided, That before the enactment of the said ordinance, an LGU establishing
4 local college shall consult with the CHED for compliance and deployment of resources,
Wwhich shall include physical resources and finances, among others, to ensure compliance
with 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 HE! has not complied with the applicable
Snteria despite the four-year period provided herein, the status granted under this Act shal
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 HEI established by an LGU shall be known as a local college of
Galubhasaan or any other typology assigned by the CHED in accordance with changes in
the Philippine Higher Educational System

'A local college may subsequently be classified as a university: Provided, That it has
complied with the standards and guidelines for the grant of university status pursuant 1
pertinent CHED rules and regulations and that it has followed the appropriate process of
ecereditation 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 info 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 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 pattemed after the Barangay-Type Fiscal System.


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

SEC 8. Authority to Grant “University” Status. A local college, upon the recommendation
Srits Board of Trustees to the Sangguniang Bayan, Panlungsod or Panlalawigan for
approval, may subsequently be classified as 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 classified as a university: Provided further, That a local
college, upon conversion into a local university, shall continue to be operated by the
coneeried LGU. The proposal for classification to “University” status shall be submitted to
the CHED Central Office, through the CHED Regional Office, for review. Only the
Gemmission 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
7722, 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,
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. In relation to Section 6, all 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 goveming board of a

College or Dalubhasaan shall be its Board of Trustees while the governing board of a

University or Pamantasan shall be its Board of Regents
‘The reguiar and special meetings of the Board of Trustees/Regents of the LUCS

hereinafter referred to as the Board, shall be specified in the local charter and 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) private sector representatives who have distinguished themselves in their

profession or field of expertise/specialization.

One of the two private sector representatives shall come from the business or industry
sector. Both shall be appointed by the Board upon the recommendation of the Local Chief
Executive and their terms of office shall be co-terminus with the term of the Local Chief
Executive unless otherwise recommended to serve for another term.

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


officials shortly prior to the end of terms of the incumbents or within one month upon the
expiration of their terms, otherwise their positions in the Board shall be deemed expired.

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
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, There shall be a Secretary of the LUC, who shall serve as the Secretary of the
Board, to be appointed by the Board 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 Board shall be the highest policymaking body of the
LUCs. 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 not
against the law, public morals and public policy granted by the focal ordinance creating the
LUC, the Board shall have the following specific powers and duties,

(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;

(©) 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. 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 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 not 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;

(a) 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,


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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 intemal 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
complies with 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: Provided,
That these comply with the applicable guidelines of the CHED in furtherance of the
purposes and objectives of the institutions as well as develop academic arrangements
for institution capacity and capability building with appropriate institutions and agencies,
public and private;

To appoint experts/specialists as consultants, or visiting or exchange professors,
scholars, researchers, as the case may be: Provided, That it conforms to the CHED
guidelines,

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

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;

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

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

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
Pantalawigan

SEC. 14. 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. 15. 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 LUC 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. 16. 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/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/
Regents.

The President must preferably have at least a Doctorate Degree or a 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 the office, the Board, within a period of thirty (30) days, but not more than forty-
five (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 LUC, 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-president, 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/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, rules 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 be appointed


by the Board upon the recommendation of a search committee duly constituted by the
Board.

SEC. 17. 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 duty is to review and recommend to the Board policies governing
the administration, management and development planning of the LUC.

SEC. 18. 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 LUC. 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. 19. Appropriations for LUCs. There shall be included in the local Charter an annual
appropriation 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
unappropriated amount at the end of each year shall remain with the coffers and be
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
Leu

SEC. 20. 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.

SEC. 21. 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. 22. 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. 23. 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. 24. Effectivity. This Act shall take effect fifteen (15) days after its publication in the
Official Gazette or in a newspaper of general circulation.

Approved,