EIGHTEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES
Second Regular Session
SENATE
S. B. NO. 2009
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21 JAN 21 P3 54
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Introduced by SENATOR JOEL VILLANUEVA
AN ACT PRESCRIBING THE MANDATORY GUIDELINES ON THE 
ESTABLISHMENT AND OPERATION OF LOCAL UNIVERSITIES 
AND COLLEGES AND FOR OTHER PURPOSES
EXPLANATORY NOTE
The Local Government Code empowered local government units (LGUs) to 
establish and operate specific education institutions. Specifically, Sections 447, 458 
and 468 of the Local Government Code enable municipalities, cities, and provinces, 
respectively, to “establish and provide for the operation of vocational and technical 
schools and similar post-secondary institutions."
Pursuant to these provisions, various LGUs have established local universities 
and colleges (LUCs) within their respective territorial jurisdictions to provide greater 
access to education to their constituents. Currently, there are 121 LUCs1 nationwide 
that caters to more than 200,000 higher education students.
While this initiative of LGUs is laudable, the lack of institutionalized guidelines 
on the establishment of these LUCs has taken a toll on the delivery of quality 
education. As of 2017, only 18 out of 107 (or 16.8%) LUCs are recognized by the 
Commission on Higher Education (CHED). The passage of Republic Act No. 10931 
or the Universal Access to Quality Tertiary Education Act (UAQTEA), only students in 
CHED-accredited LUCs are exempt from paying tuition and other school fees. As of 
October 2020, the number of CHED-recognized LUCs increased from 18 (out of 107) 
in 2017 to 101 (out of 121) (or 83.5%).
1 https://ched.gov.ph/wp-content/uploads/A1.1-Distribution-of-Higher-Education-lnstitutions-by-lnstitution-Type- 
AY-2019-2020.pdf


This bill seeks to provide a uniform guideline on the creation of LUCs. It also 
clarifies that LUCs are subject to the supervision and inspection of CHED. It also 
provides for the composition of the governing board of LUCs, to be composed of the 
local chief executive as chairman of the Board, and a representative from the CHED, 
among others, to ensure that appropriate policies of CHED are communicated and 
properly represented to the Board.
In sum, this measure seeks to rationalize the establishment and operation of 
LUCS to address quality and excellence in the areas of school administration, facilities, 
and research and community service, among others.
Thus, the passage of this bill is earnestly sought.
SENATOR'^OEL VILLANUEVA


EIGHTEENTH CONGRESS OF THE ) 
REPUBLIC OF THE PHILIPPINES )
Second Regular Session 
)
SENATE
S. B. NO. 2009
clllji
21 JAN 21 P3-54
RE.:
Introduced by Senator JOEL VILLANUEVA
AN ACT PRESCRIBING THE MANDATORY GUIDELINES ON 
THE ESTABLISHMENT AND OPERATION OF LOCAL 
UNIVERSITIES AND COLLEGES AND FOR OTHER PURPOSES
Be it enacted by the Senate and House of Representatives of the Phiiippines in 
Congress assembled:
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SECTION 1. Short Title. - This Act shall be known as the "Local Universities 
and Colleges (LUCs) Governance Act"
SEC. 2. Declaration of Policy. - It is the policy of the State to establish, 
maintain and support a complete, adequate and integrated system of education 
relevant to the needs of the people and society. Towards this end, a mandatory 
guideline on the establishment of Local Universities and Colleges (LUCs) shall 
be prescribed to achieve a standard and integrated system of higher education 
and provide a relevant direction in their governance.
SEC. 3. Definition of Terms. - As used in this Act, these terms shall mean: 
a) "Commission on Higher Education (CHED)" refers to the government 
agency created by Republic Act No. 7722, otherwise known as the 
"Higher Education Act of 1994", which has jurisdiction over all public and 
private higher education institutions (HEIs) in the Philippines:


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b) “Civil Service Commission (CSC)” refers to the Constitutional 
Commission of the Philippines with responsibility over the civil service. It 
is tasked with overseeing the integrity of government actions and 
processes involving human resource actions;
c) “Governing Board’ refers to the highest policy-making body of a local 
university or college;
d) “Local University or College (LUC)” refers to the public higher education 
institution established by a local government unit through an enabling 
ordinance;
e) “Local Government Unit (LGU)” refers to any municipality, city or 
provincial government that created or established the LUC;
f) “Ordinance” refers to the enabling act of the Sangguniang Bayan, 
Panglunsod or Panlalawigan that creates a particular LUC; and
g) “Sanggunian” refers to the local legislative body which includes 
Sangguniang Bayan for Municipality, and Sangguniang Panlalawigan for 
Province.
SEC. 4. Coverage. - This Act shall apply to the following:
a) Educational institutions to be established and operated by LGUs for the 
purpose of offering higher degree programs;
b) Educational institutions established and operated by LGUs offering non­
degree programs; and
c) Existing Local Universities and Colleges.
SEC. 5. Establishment of LUCs. - All LUCs shall be established through an 
ordinance duly enacted for that purpose by the Sanggunian concerned: 
Provided, That prior to the enactment of the same, the LGU establishing a 
higher education institution shall consult and coordinate with CHED, through 
the Regional Office having jurisdiction of the place where the institution is 
intended to be established, to ensure full compliance with the mandatory 
requirements as set forth in this Act.


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SEC. 6. Mandatotv Requirements for the Establishment of LUC. - The
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CHED shall require all LUCs to submit the foilowing requirements for review
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and approval:
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a) Feasibility study that shaii include, but not be limited to, the foliowing
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discussions: 1) the necessity for a locai higher education institution in
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the area; 2) human resource requirements of the industry to determine
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proposed program offerings; 3) target offerings; 4) financial capacity of
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the LGU to establish and sustain the operation of the LUC;
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b) Certification of availability of funds by the treasurer of the LGU
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concerned, as provided under the pertinent provisions of the Local
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Government Code of 1991;
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c) A Project Development Plan with program of work, showing that the LGU
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allocated a school site with appropriate size and location pursuant to the
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applicable provisions of the Building Code of the Philippines, blueprint of
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architectural design for its buildings and other physical facilities and
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provisions for acquisition of instructional materials and equipment that
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comply with CHED Memorandum Orders (CMOs) pertinent to the
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program offered;
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d) A five-year institutional development plan duly approved by the
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Sanggunian which shall include, but not be limited to, the following: a)
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annual budgetary allocation; b) organizational structure and composition
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of the Governing Board; and c) personnel complement indicating the
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plantilla of positions to be hired on a merit system and the procedure for
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hiring non-plantilia items duly approved by the Civil Service Commission;
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In all cases, a duly established educational institution by the LGU shall
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require the imprimatur of the CHED prior to the offering of higher education
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programs. The Chairman of the Governing Board, or its President when so
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authorized by the Governing Board, shaii fiie with the CHED an application
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to offer a higher education program. The application shaii be supported with
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documents indicating compliance with the policies and standards reiative to
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such degree program.
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SEC. 7. Supervisory and Visitorial Powers of CHED. - All LUCs shall be
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subject to the inspection and evaluation of CHED.
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SEC. 8. The Governing Board of LUCs. -
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a) Composition - The governing body of local universities and colleges
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shall be composed of the following:
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1. Local Chief Executive as Chairperson;
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2. President of the LUC as Vice-Chairperson;
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3. President of the duly recognized faculty association of the LUC as
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member;
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4. President of the duly recognized student council of the LUC as
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member;
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5. President of the alumni association as member;
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6, Chairman of the Sangguniang Committee on Education as member;
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7. A representative from CHED with rank not lower than Director as
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member;
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8. Treasurer of the LGU establishing the LUC;
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9. Budget Officer of the LGU establishing the LUC; and
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10. Two (2) representatives from the private sector, who are of known
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probity and should have distinguished themselves in their respective
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professions or fields of specialization in the municipality, city, or
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province where the local university or college is located. They shall
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be appointed by the Local Chief Executive and shall each serve for
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a term of two (2) years from the date of their respective appointments.
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b) Term of Office - i) The LUC President and the presidents of the faculty
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association, the student council, and the alumni association shall sit in
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the Board until the expiration of their term of office in such capacities; ii)
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the two (2) representatives from the private sector shall serve for a term
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of two (2) years.
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c) Meetings - The Governing Board shall regularly convene every month.
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The Chairman of the Board may call for a special meeting whenever
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necessary, provided that members are notified in writing at least three
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(3) days prior to the said meeting.


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d) Quorum - A majority of all the members of the Governing Board holding
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office at the time of its regular or special meeting shall constitute a
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quorum.
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SEC. 9. Powers of the Governing Board. - The Governing Board of the LUCs
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shall have the following powers and duties:
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a) To promulgate policies in accordance with the declared state policies on
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higher education as well as the policies, standa’ds and thrusts of the
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CHED under Republic Act No. 7722, otherwise known as the “Higher
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Education Act of 1994” and other pertinent laws;
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b) To promulgate rules and regulations consistent with existing laws, rules
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and regulations as may be necessary to carry out the purposes and
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functions of the LUC;
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c) To develop academic arrangements and linkages for institutional
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capability building with appropriate institutions and agencies, both public
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and private, local and foreign;
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d) To determine and approve curricular programs and course offerings in
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response to the needs and demands of the community and based on
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local and regional development initiatives: Provided, That these should
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comply with policies and guidelines set by CHED;
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e) To promulgate policies on admission, retention and graduation of
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students and to award degrees, titles, diplomas and certificates;
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f) To ensure the efficient management of non-academic services such as
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medical and dental, guidance and counseling, property maintenance
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and similar services;
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g) To institutionalize research and extension programs;
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h) To appoint the President of the local university or college upon the
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recommendation of the search committee;
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i) To confirm appointments of other school officia s, teaching and non-
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teaching personnel appointed by the President;
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j) To delegate any of its powers and duties provided for herein to the
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President and/or other officials of the university or college as it may
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deem appropriate in order to expedite the administration of the affairs of
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the LUC; and


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k) To fix the tuition fees, miscellaneous fees and other school charges as
the board may deem proper to impose after proper consultation with the
relevant stakeholders.
SEC. 10. Administration of the LUC. - The administration of the local 
university or college shall be vested in the President who shall render full-time 
service. The Governing Board upon the recommendation of a duly constituted 
search committee shall appoint him.
The President of the local college or local university shall hold a masters 
or doctoral degree in education, administration or other related fields, and 
should have at least three (3) years of relevant administrative experience, 
without prejudice to the provision of additional qualifications to be set by the 
Governing Board of the LUC. The term of office of the President shall be four 
(4) years, subject to reappointment for another term only.
In case of vacancy in the Office of the President by reason of death, 
compulsory retirement, expiration of term, resignation, removal for cause or 
incapacity of the President to perform the functions of his office, the Board shall 
have the authority to designate an Officer-in-Charge of the LUC pending the 
appointment of a new president.
The powers and duties of the President of the LUC, 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 LUC shall be set by the Board, taking 
into consideration the applicable rules and regulations of the Civil Service 
Commission (CSC) and the Department of Budget and Management (DBM) 
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 of the LUC


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shall be appointed by the president, subject to confirmation of the Board. The 
appointments of these LUC officials and employees shall conform to existing 
civil service laws, rules and regulations.
The aforementioned officers and employees may be removed from office 
for causes established under the rules of the CSC.
SEC. 11. Search Committee. - In case of vacancy in the Office of the 
President brought about by any of the causes mentioned in the preceding 
section, the Governing Board shall organize and convene a Search Committee 
for the selection of a President.
The Search Committee shall have five (5) members to be appointed by 
the Governing Board with a member each representing the CHED, the LGU 
concerned, the academe, the business or industry sector, and the Association 
of Local Colleges and Universities (ALCU). It shall elect a Chairperson and 
Vice-Chairperson and shall ensure that the new LUC President is selected not 
later than three (3) months from the time the position is vacated.
SEC. 12. Elevation to University Status. - A new local higher education 
institution shall start as a local college. In all cases, the grant of a university 
status shall be contingent upon the satisfaction of all requirements under 
applicable rules and regulations of the CHED.
SEC. 13. Licensure, Civil Service Examination, and Other Benefits of 
Compliance. - LUCs that have complied with the requirements set forth under 
this Act shall be accorded the following benefits;
1. Issuance of a Special Order for Graduation from CHED to enable its 
graduates to take licensure examinations administered by the 
Professional Regulation Commission;
2. Inclusion in the Directory of CHED-recognized Philippine Universities 
and Colleges;
3. Quality assurance support from CHED; and


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4. Acceptance of foreign students, subject to compliance with the 
requirements of appropriate regulatory agencies.
SEC. 14. Penalties for Non-Compliance. - Any person who acts in violation 
of any provision of this Act shall be subject to an administrative fine of up to 
Five Hundred Thousand Pesos (P500,000.00) depending on the severity of the 
violation, as may be determined in the implementing rules and regulations of 
this Act.
SEC. 15. Existing LUCs. - In the interest of efficient control and regulations by 
the CHED, LUCs which are already existing at the time of the effectivity of this 
Act shall be allowed to continue their operation, subject to compliance with the 
requirements under this Act within a non-extendible period of three (3) years. 
Non-compliance with the requirements under this Act within this period shall 
result in the phase-out or closure of the programs being offered by the LUC 
concerned.
SEC. 16. Implementing Rules and Regulations. - Within ninety (90) days 
from the effectivity of this Act, the CHED, in coordination with relevant agencies, 
the Association of Local Colleges and Universities (ALCU), and other 
stakeholders, shall promulgate the implementing rules and regulations 
necessary to carry out the provisions of this Act.
SEC. 17. Separability Clause. - If any portion or provision of this Act is 
subsequently declared invalid or unconstitutional, other provisions hereof which 
are not affected thereby shall remain in full force and effect.
SEC. 18. Repealing Clause. - All other laws, acts, presidential decrees, 
executive orders, presidential proclamations, issuances, rules and regulations, 
or parts thereof which are contrary to or inconsistent with any of the provisions 
of this Act are hereby repealed, amended, or modified accordingly.


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SEC. 19. Effectivity. - This Act shall take effect fifteen (15) days after its 
publication in the Official Gazette or in a newspaper of general circulation.
Approved,