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Republic of the Philippines j ths

HOUSE OF REPRESENTATIVES
Quezon City, Metro Manila

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SEVENTEENTH CONGRESS ia a
First Regular Session REGISTRATION UNIT

House Bill NoB 26) 5

Introduced by DIWA Party-list Representative Emmeline Y. Aglipay ~ Villar

EXPLANATORY NOTE

Education is a human right, guaranteed by intemational conventions and our basic law. It is
“a fundamental human right and essential for the exercise of all other human rights. It
promotes individual freedom and empowerment and yields important development benefits."!
Article XIV, Section 1 of the 1987 Philippine Constitution says 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.

Of course this is easier said than done. Education, particularly higher education, remains a
costly proposition for most Filipino students. In response certain local government units have
taken it upon themselves to establish, through ordinances of their respective sanggunians,
local colleges and universities (LCUs) within their territorial jurisdiction under the
provisions of the Local Government Code of 1991 or Republic Act No. 7160. This initiative
is laudable, but a legal framework is necessary to provide definite and centralized guidelines
on the establishment of these LCUs. To this end, this bill — filed as a counterpart of Senate
Bill No. 325 with the support of its author, Senator Cynthia Villar -- rationalizes the creation
of LCUs facilitate and improve the creations of these institutions of higher learning.

Lands #. Valew
EMMELINE Y. AGLIPAY - VILLAR
Representative, DIWA Party-list

2 http://mww.unesco.org/new/en/education/themes/leading-the-international-agenda/right-to-education/

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

SEVENTEENTH CONGRESS,
First Regular Session

3265

House Bill No.

Introduced by DIWA Party-list Representative Emmeline Y. Aglipay ~

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 of Representatives of the Republic of the Philippines in Congress
assembled:

SECTION 1. Short Title. — This Act shall be known as “The Local Colleges and Universities
Governance Act of 2016.”

SEC. 2. Declaration of Policy. — It is the policy of the State to protect and promote the right
ofall 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. 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, an 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;

(©) “Degree Program” refers to a collection of all courses in a discipline or a field of
study leading to an undergraduate or graduate degree, and may also be referred to as
academic program;

(d)_— “Non-degree Program” refers to a post-secondary program below the bachelor degree;

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(ec) “Local Government Unit” or “ILGU” refers to municipalities, cities and provinces that
created or established the local college or university;

(8) “College or Dalubhasaan” is an institution of higher learning offering academic
programs and usually pre-professional training leading to a bachelor’s degree;

(g) “University or Pamantasan” is an institution made up of an undergraduate division
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;

SEC. 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:

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

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

SEC. 5, Establishment of Higher Education Institutions by LGUs. ~ All LCUs 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.

SEC. 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

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complied with the requisites provided for the establishment of a College or the grant of
university status under the CHED rules and regulations.

SEC. 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.

SEC. 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;

(©) President of the duly recognized faculty association of the LCU as member;
(@) President of the duly recognized student council of the LCU as member;
(©) President of the alumni association as member:

(8) 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
hinv/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 term of two years from the date of their respective
appointments.

The terms of 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.

SEC. 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

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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 Blg. 68, otherwise known as
the Corporation Code of the Philippines:

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

(6) — Toreceive 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:

(©) 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;

(4) _ 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 ore 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 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 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) _ Toadopt and implement a socialized scheme of tuition and school fees for greater
access to poor but deserving students;

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(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 ot applicable BIR (Burcau 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, leaves of absence
under such regulations as it may promulgate, any provisions of existing law to the contrary
not with standing: and to remove them for cause in accordance with the requirements of due
process of law:

@ To approve the curricula, and institutional programs of the institution: Provided, that
it conforms with the CHED guidelines

(i) 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 polices on admission and graduation of students;

(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;

({n) To establish research and extension centers of the LCU where such will promote the
development of the latter;

(0) To establish chairs in the university or college and to provide fellowships for qualified
faculty members and scholarships to deserving students;

(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 college;

(q)  Toauthorize 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;

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(©) Toenter 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;

(8) 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;

() 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, ete., for the promotion of greater access to higher education:

(¥) 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

(x) To extend the term of a 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.

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

‘The President of the LCU shall have a term of four (4) years 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 of 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
hisher office, the Board shall have the authority to designate an Officer-in-Charge of the
College pending the appointment of a new President.

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The powers and duties of the President of a 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 conformity to existing civil
service laws, rules and regulations.

SEC. 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.

SEC. 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 bane may grant the University
status upon compliance with the requirements.

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

SEC, 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.

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SEC. 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.

SEC. 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,

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