Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City 
TWENTIETH CONGRESS 
First Regular Session 
HOUSE BILL NO. 1990 
Introduced by HON. MIGUEL LUIS R. VILLAFUERTE, HON. VINCENZO 
RENATO LUIGI R. VILLAFUERTE, HON. TSUYOSHI ANTHONY G. HORIBATA, AND 
HON. TERRY L. RIDON 
EXPLANATORY NOTE 
The Local Government Code empowers Local Government Units (LGUs) to establish 
and operate educational institutions. Sections 447, 458, and 468 of Republic Act No. 7160 
empower municipalities, cities, and provinces, respectively to –  
“provide for the establishment and operation of vocational and technical schools 
and similar post-secondary institutions; and, with the approval of the 
Department of Education, Culture and Sports (DECS) and subject to existing 
laws on tuition fees, fix reasonable tuition fees and other school charges in 
educational institutions, subject to the availability of funds and to existing laws, 
rules and regulations.” 
Pursuant to this mandate, colleges and universities fully run and subsidized by LGUs 
have proliferated across the country, offering both academic and non-academic programs. 
This has expanded access to affordable education to its citizens, including students residing 
outside Metro Manila. 
While it is the paramount duty of the State to protect and promote the right of all citizens 
to quality education, it does not begin and end with the establishment of these educational 
institutions. The State must also ensure that these schools consistently meet two important 
criteria: (1) they have to provide quality education fully compliant with the standards of the 
Commission on Education (CHED), and (2) these schools must be administratively sound as 
they run primarily on government resources. This bill is hereby proposed to ensure that the 
aforementioned standards are satisfied.  
Under the proposed bill, educational institutions, subject to the review, monitoring, and 
visitorial jurisdiction of CHED are identified and specified. It also explains the uniform process 
of establishing Local Universities/Colleges (LUCs). It sets clear distinctions between colleges 
and universities, specifies the requirements needed in order to transition from one to the other, 
and provides for the leadership structure of these LUCs, including the duties and powers of 
the Board. 
One of the key policies of the Constitution is local autonomy or the decentralization of 
power to the LGUs, enabling them to deliver essential social services such as education to 
their constituents. Through this proposed bill, the LGUs will be empowered to design the 
curriculum of their LUCs based on the unique economic and social needs of their communities 
and the demands of their local industries. This will pave the way for employment opportunities 
that are tailored fit with their local development goals.  
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Furthermore, establishing LUCs will bring high-quality education closer to students in 
far-flung areas, reducing their travel time and costs such as transport and lodging expenses. 
These LUCs will also act as a center for recreation, research, and other services that may be 
beneficial to the locals.  
This is a refiled bill from the 19th Congress, which was approved on third reading by 
the House of Representatives and transmitted to the Senate.  
Thus, in light of the foregoing, the immediate passage of this bill is earnestly sought. 
HON. MIGUEL LUIS R. VILLAFUERTE 
HON. VINCENZO RENATO LUIGI R. VILLAFUERTE 
HON. TSUYOSHI ANTHONY G. HORIBATA 
HON. TERRY L. RIDON 


Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City 
TWENTIETH CONGRESS 
First Regular Session 
HOUSE BILL NO. 1990 
Introduced by HON. MIGUEL LUIS R. VILLAFUERTE, HON. VINCENZO 
RENATO LUIGI R. VILLAFUERTE, HON. TSUYOSHI ANTHONY G. HORIBATA, AND 
HON. TERRY L. RIDON 
AN ACT PRESCRIBING THE GUIDELINES FOR 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 the “Local Universities and Colleges 
(LUCs) Governance Act.” 
SECTION 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. It is also the policy of the State to protect and promote the right of all 
citizens to quality education and to take appropriate steps to make education accessible to all. 
To this end, mandatory guidelines on the establishment of local colleges and the 
conversion of local colleges into universities must be prescribed to achieve a standard and 
integrated system of higher education, provide the appropriate direction in their governance, 
and ensure that they will deliver quality and relevant education to students.  
SECTION 3. Definition of Terms. – As used in this Act: 
(a) Degree program refers to the set of academic programs and courses in a field of study
leading to the conferment of an undergraduate or graduate degree;
(b) Higher education institution refers  to an institution of higher learning which primarily
offers degree-granting programs duly recognized by the Commission on Higher
Education (CHED) and leading to the conferment of a diploma;
(c) Level II 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 or network, effective for a period of three
(3) years;
(d) Local college or dalubhasaan  refers to a public higher education institution with
below Level II accreditation, financially supported, operated and maintained by the
local government unit, and offers undergraduate or baccalaureate and graduate
academic programs leading to the conferment of a degree;


 
 
(e) Local government unit (LGU) refers to municipalities, cities and provinces that 
created or established the local university or college; 
 
(f) Local higher education institution refers to a public higher education institution  
financially supported by  an  LGU through an ordinance, which offers undergraduate 
or baccalaureate and graduate academic programs leading to the conferment of a 
degree; 
 
(g) Local university or pamantasan refers to a public higher education institution  with 
above Level II accreditation that is financially supported, operated and maintained by  
an LGU  and offers undergraduate or baccalaureate and graduate academic programs 
leading to the conferment of a degree; 
 
(h) Non-degree program refers to a postsecondary short-term certificate or diploma 
academic and technical-vocational programs below the baccalaureate or bachelor’s 
degree; 
 
(i) Ordinance refers to the enabling act of a Sangguniang Panglunsod, or Sangguniang 
Bayan, or Sangguniang Panlalawigan creating a particular local university or college 
and which serves as their charters; and 
 
(j) Technical-vocational institution refers to a postsecondary education institution that 
offers short-term non-degree, diploma or certificate technical-vocational education and 
training programs or courses.    
 
SECTION 4. Coverage. – The provisions of this Act shall apply to: 
 
(a) Existing local universities and colleges (LUCs); 
 
(b) Higher education institutions (HEIs) to be established and operated by LGUs through 
a local  ordinance;  
 
(c) HEIs to be established and operated by LGUs that will offer non-degree programs, but 
which intends to offer undergraduate and graduate degree programs; 
 
(d) Existing technical-vocational institutions established and operated by an LGU offering 
non-degree programs, but which intend to propose a reclassification as a college, 
professional institution or university; and  
 
(e) Existing LUCs which have not met the minimum standards of the Commission on 
Higher Education (CHED), as prescribed in CHED Memorandum Order (CMO) No. 46, 
series of 2012, or the most recent CMOs on Policies, Standards, and Guidelines  
(PSGs) for HEIs.  
 
SECTION 5. Establishment and Operation of Local HEIs by LGUs. –  A local HEI, to be 
known as 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 
sanggunian concerned: Provided, That prior to the enactment of the said ordinance, the LGU 
establishing a local college shall consult with the CHED, through  the regional office that has 
jurisdiction over the area where the institution is intended to be established, to ensure full 
compliance with  the mandatory requirements set forth in this Act.  
 
 


 
SECTION 6. Mandatory Requirements for the Establishment of the LUC. – The CHED 
shall require all LUCs to submit the following requirements for review and  approval: 
 
(a) Feasibility study that shall include the following: 1) the necessity for a local HEI in the 
area; 2) human resource requirements of the industry to determine the proposed program 
offerings; 3) target offerings; 4) financial capacity of the LGU to establish and sustain the 
operation of the LUC; 
 
(b) Certification of availability of funds by the Treasurer of the concerned LGU, as provided 
under the pertinent of Republic Act No. 7160, otherwise known as the “Local Government 
Code of 1991”;  
 
(c) A project development plan  with a program of work showing that the LGU allocated a 
school site with appropriate size and location pursuant to the applicable provisions of 
Republic Act No. 6541, otherwise known as  the “National Building Code of the 
Philippines”,  a blueprint of the architectural design of its buildings and other physical 
facilities, and provisions for acquisition of instructional materials and equipment that 
comply with the CMOs pertinent to the program offered; and 
 
(d) A five-year institutional development plan duly approved by the sanggunian, which shall 
include the following:  1) annual budgetary allocation; 2) organizational structure and 
composition of the Governing Board, hereinafter referred to as the Board; and 3) 
personnel complement indicating the plantilla of positions to be hired on a merit system 
and the procedure for hiring non-plantilla items duly approved by the Civil Service 
Commission. 
 
 
In all cases, a duly established educational institution by the LGU shall require the 
imprimatur of the CHED prior to the offering of higher education degree programs. It shall file 
with the CHED an application to offer a higher education degree program. The application 
shall be supported with documents indicating compliance with the policies, guidelines, and 
standards relative to such degree program. 
 
SECTION 7. Supervisory, Monitoring, and Visitorial Power of the CHED. – All LUCs shall 
be subject to the monitoring, inspection, and evaluation of the CHED.  
 
Pursuant to the provisions of Republic Act No. 7722, otherwise known as the “Higher 
Education Act of 1994”, the CHED shall exercise supervisory power over LUCs. Through its 
regional offices, the CHED shall continue to monitor, inspect, evaluate, and provide technical 
assistance to the LUCs. 
 
The CHED shall, in the issuance of academic policies and standards affecting LUCs,  
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 the LUCs will remain committed to the delivery of quality education to its 
students.  
 
SECTION 8. Governing Board of LUCs. – 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 (BOR).  
 
The regular and special meetings of the BOT or BOR of the LUCs shall be specified in 
the ordinance creating the LUC. 
 
(a) Composition - The governing board of the LUC, shall be composed of the: 


 
 
(1) Local chief executive, as chairperson; 
 
(2) President of the LUC, as vice-chairperson; 
 
and the following as members: 
 
(3) President of the duly recognized faculty association of the LUC;  
 
(4) President of the duly recognized student council of the LUC; 
 
(5) President of the duly recognized alumni association; 
 
(6) Chairperson of the Committee on Education of the Sanggunian; 
 
(7) Treasurer of the LGU establishing the LUC; 
 
(8) Budget Officer of the LGU establishing the LUC; and 
 
(9) Two (2) representatives from the private sector who are of known probity and have 
distinguished themselves in their respective professions or fields of expertise or 
specialization in the municipality, city, or province where the LUC is located.  
 
The two (2)  private sector representatives shall be appointed by the local chief executive 
and shall each serve  a term of two (2) years from the date of their respective appointments.   
 
(b) Term of Office – 1) The President of an LUC shall serve a full term in such capacity; 
2) The presidents of the faculty association, student council, and the alumni 
association shall sit in the Board and shall serve their respective terms of office in the 
associations co-terminously, pursuant to their respective constitutions and by-laws. 
Such associations shall conduct the election of its officials shortly before the end of 
terms of the incumbents or within one (1) month prior to the expiration of their terms, 
otherwise their positions in the Board shall be deemed expired.  
 
(c) Vacancy - In case of a vacancy in the Board by reason of resignation, death, or the 
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. 
 
(d) Meetings – The Board shall regularly convene every month. The Chairperson of the 
Board may call a special meeting whenever necessary: Provided, That members are 
notified in writing at least three (3) calendar days prior to the said meeting. 
 
(e) Quorum – A majority of the members of the Board holding office at the time of its 
regular or special meeting shall constitute a quorum. 
 
(f) Compensation - The members shall serve without compensation other than  
reimbursement for necessary expenses incurred in their attendance to meetings of the 
Board or in connection with their official business, as may be authorized by resolutions 
of the Board. 
 
SECTION 9. Powers of the Board. – The Board  shall be the highest policymaking body of  
the LUCs and shall have the following powers and functions:   
 


 
(a) To promulgate policies in accordance with the declared policies on higher 
education, as well as the policies, standards, and guidelines of the CHED under 
Republic Act No. 7722, otherwise known as the “Higher Education Act of 1994”  
and other pertinent laws; 
 
(b) To promulgate rules and regulations consistent with existing laws, rules, and 
regulations as may be necessary to carry out the purposes and functions of the 
LUC;  
 
(c) To receive assistance from the LGU to augment the internal sources of funds, as 
may be provided, to carry out the purposes and functions of the LUC; 
 
(d) To fix the tuition fees and other school charges as the Board may deem proper to 
impose after due consultations with the relevant sectors: Provided, that these fees 
shall be based on the guidelines of the CHED and not prohibitive or unreasonable 
as to deviate from the purpose for which the LUCs are created;  
 
(e) To appoint, upon the recommendation of the  President, vice presidents, deans, 
executive directors, heads of departments, faculty, and other officials and 
employees; 
 
(f) To develop consortia and other academic linkages and, other forms of networks 
with the LGUs, industries, 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 LUCs, as well as 
develop academic arrangements for institution capacity and capability building with 
appropriate institutions and agencies, public and private; 
 
(g) To determine and approve curricular programs and course offerings in response to 
the needs and demands of the community and based on local and regional 
development initiatives: Provided, That these comply with the minimum  CHED 
requirements and its PSGs; 
 
(h) To promulgate policies on admission, retention, and graduation of students in 
conformity with the guidelines of  the CHED, and to award degrees, titles, diplomas, 
and certificates;  
 
(i) To ensure the efficient management of nonacademic services, such as medical 
and dental, guidance counseling, property maintenance; 
 
(j) To institutionalize research and extension programs and establish research and 
extension centers where such will promote the development of the LUCs;  
 
(k) To appoint the President of the LUC upon the recommendation of the search 
committee; 
 
(l) To confirm the appointments of other school officials, teaching, and nonteaching 
personnel appointed by the President of the LUC; 
 
(m) 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;  
 
(n) 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 nontraditional or innovative courses: Provided, That 
these conform to the applicable guidelines of the CHED and the Technical 
Education and Skills Development Authority; 
 
(o) To establish professorial chairs in the LUC and to provide fellowships  for qualified 
faculty and scholarships to deserving students; 
 
(p) To appoint experts and specialists as consultants, or visiting or exchange 
professors, scholars, researchers, as the case may be: Provided, That such 
appointment conforms to the CHED guidelines; 
 
(q) To set up the adoption of modern and innovative modes of transmitting knowledge 
such as the use of information technology, the dual training system, and  open 
distance learning, for the promotion of greater access to education; 
 
(r) To submit to the Local Chief Executive or to the Sangguniang Panlungsod, 
Sangguniang Bayan or Sangguniang Panlalawigan an annual detailed report, 
setting forth the status, progress, needs, goals of the LUC; and 
 
(s) To delegate any of its power and duties  to the President 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.  
 
SECTION 10. Administration of LUCs. – The administration of each LUC shall be vested in 
the President who shall render full-time service to implement policies promulgated by the 
Board. 
 
The Board shall, upon the recommendation of a duly constituted search committee,  
appoint the President for a term of four (4) years, subject to reappointment for another term 
only. 
 
The President of the LUC must preferably have a Doctorate Degree or a Master’s degree 
in education, administration, or other related fields, with at least three (3) years of relevant 
administrative experience, without prejudice to provision of additional qualifications to be set 
by the Board of the LUC. 
 
SECTION 11.  Vacancy in the Office of the President. – In case of a 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 shall, within a period 
of thirty (30) days, 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 similar to those usually pertaining to the Office of the President 
of other LUCs, and those delegated by the Board. 
 
SECTION 12.  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 Board shall organize and 
convene a Search Committee for the Presidency, which shall evaluate and present to the 
Board the qualifications of the candidates for President of the LUC. 
 
  
The Search Committee for the Presidency shall have five (5) members to be appointed 
by the Board. The members shall each represent the following: a) CHED; b) the Association 


 
of Local Colleges and Universities (ALCU); c) the concerned LGU, d) the academe; and e) the 
business or industry sector. It shall elect a Chairperson and Vice-Chairperson and shall ensure 
that the new LUC President is elected not later than three (3) months from the time that the 
position is vacant. 
 
SECTION 13.  The Secretary of the LUC and the Secretary of the Board. –  There shall be 
a Secretary of the LUC who shall be appointed by the Board as Secretary of the Board upon 
recommendation of the University President.  The Secretary of the Board shall be the 
custodian of all official records of the LUC. 
 
SECTION 14. Elevation of a Local College to the Status of a University. –  A local college, 
upon the recommendation of the Board to the Sangguniang Bayan, or Sangguniang 
Panlungsod, or Sangguniang Panlalawigan, may subsequently apply with the CHED  for 
university status: Provided, That it has complied with the requirements of the CHED and has 
undergone the appropriate process of accreditation by a reliable accreditation body that 
subsequently found the college to be prepared for reclassification as a university:  Provided 
further, That a local college, upon conversion into a local university, shall continue to be 
operated by the concerned LGU in coordination with the CHED.  
 
The proposal for classification to a university status shall be submitted to the CHED 
Central Office, through the CHED Regional Office, for review. Only the CHED en banc shall 
grant the “University” status upon compliance with the requirements.   
 
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 or 
dalubhasaan, or any other typology assigned by the CHED in accordance with developments. 
in the Philippine Higher Educational System. 
 
SECTION 15. Existing LUCs. –  In the interest of efficient control and supervision by the 
CHED, all LUCs existing at the time of the effectivity of this Act shall be allowed to continue 
their operation, subject to compliance with the requirements of this Act within a non-extendible 
period of three (3) years. Non-compliance with the requirements of this Act shall result in the 
phaseout of the programs being offered by the concerned LUCs. 
 
SECTION 16. Existing Local Postsecondary Educational Institutions. – Local 
postsecondary 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 existing local post-
secondary educational institutions which have been using the name “college” or “university” 
prior to the passage of this Act shall be allowed to retain such 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 developments in the Philippine higher educational system. 
 
SECTION 17. Penalties for Non-Compliance. – Any person found violating any of the 
provisions 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. 
 
SECTION 18. Implementing Rules and Regulations. – Within ninety (90) days from the 
effectivity of this Act, the CHED shall, in coordination with the Department of the Interior and 
Local Government, the ALCU, and other relevant stakeholders promulgate the rules and 
regulations  to carry out the provisions of this Act. 
  


 
SECTION 19. 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. 4, entitled “An Act Authorizing the City 
of Manila to Establish and Operate the University of the City of Manila and for Other Purposes”. 
However, in so far as faculty qualifications, curriculum and instruction, and facilities are 
concerned, the PLM shall be governed by this Act. 
 
SECTION 20. 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 in full 
force and effect.  
 
SECTION 21. 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 modified, amended or repealed accordingly.  
 
SECTION 22. Effectivity. –  This Act shall take effect fifteen (15) days after its publication in 
the Official Gazette or in a newspaper of general circulation. 
 
 
Approved,