Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City 
NINETEENTH CONGRESS 
First Regular Session 
HOUSE BILL NO. ____ 
Introduced by HON. LUIS RAYMUND “LRAY” F. VILLAFUERTE, JR.,  
HON. MIGUEL LUIS R. VILLAFUERTE, HON. TSUYOSHI ANTHONY “HORI” G. 
HORIBATA AND HON. NICOLAS “NICK” C. ENCISO VIII 
EXPLANATORY NOTE 
The Local Government Code has duly empowered local government units (LGUs) to establish 
and operate specific education institutions. Sections 447, 458 and 468 of Republic Act 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.” 
By virtue of the aforementioned provision, colleges and universities fully run and subsidized 
by LGUs have mushroomed across the country, offering both academic and non-academic 
programs. This has allowed the State to extend affordable education to its citizens, including 
those residing outside Metro Manila. 
While it is the paramount duty of the State to protect and promote the right of all citizens to 
quality education1, it does not begin and end with the establishment of these educational 
institutions. The State must ensure that these schools consistently meet two (2) important 
criteria. First, they have to provide quality education fully compliant with the standards of the 
Commission on Education (CHED). Second, 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 Higher Education Institutions (HEI) or Local Universities/Colleges (LUC). 
Other provisions of the bill duly differentiate colleges from universities, and set the required 
capacities and terms needed in order to transition from one to the other. Finally, the bill 
provides for the leadership structure of these HEI/LUCs, and 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 extend social services, like education, to their constituents. 
1 Article XIV, Sec. 1., 1987 Constitution 
September 13, 2022
8:00 am
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Consequently, it requires the LGUs utmost accountability and reasonable diligence in the 
exercise of its mandate to prevent the wastage of government funds and frustration of the 
public. 
In light of the foregoing premises, we earnestly seek the passage of this bill. 
LUIS RAYMUND “LRAY” F. VILLAFUERTE, JR. 
 MIGUEL LUIS R. VILLAFUERTE 
TSUYOSHI ANTHONY “HORI” G. HORIBATA 
NICOLAS “NICK” ENCISO VIII 


Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City 
NINETEENTH CONGRESS 
First Regular Session 
HOUSE BILL NO. ____ 
Introduced by HON. LUIS RAYMUND “LRAY” F. VILLAFUERTE, JR.,  
HON. MIGUEL LUIS R. VILLAFUERTE, HON. TSUYOSHI ANTHONY “HORI” G. 
HORIBATA AND HON. NICOLAS “NICK” ENCISO VIII 
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 Philippines in 
Congress assembled: 
SECTION 1. Short Title. This Act shall be known as the “Local Colleges and 
Universities Governance Act.” 
SECTION 2. Declaration of Policy. It is the policy of the State to protect and 
promoted the right of 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 and society and that it shall take into 
account regional and sectoral needs and the conditions and shall encourage local 
planning in the development of educational policies and programs. 
SECTION 3. Definition of Terms.  As used in this Act, the terms enumerated herein 
shall have the following meaning: 
a) Local Higher Education Institutions (HEI)/ Local College of University (LUC)
– refers to a public HEI established by a local government unit through an
establishing ordinance, and financially supported by the concerned local 
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government units. In Filipino, an LUC is referred to as ‘Dalubhasaan” for 
college and “Pamantasan” for university. 
 
b) Ordinance – refers to the enabling Act of the Sangguniang Panglunsod or 
Panlalawigan that creates a particular LUC and serves as the character of 
the said LUC. 
 
c) Degree Program – refers to the 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. 
 
d) Non-Degree Program – refers to a post-secondary academic and vocational 
program below the bachelor’s degree. 
 
e) Local Government Unit or LGU – refers to municipalities, cities and 
provinces that created or established the LUC. 
 
f) College or Dalubhasaan – refers to an HEI offering academic programs and 
usually pre-professional training leading to a bachelor’s degree. 
 
g) University or Pamantasan – refers to an institution made up of an 
undergraduate division that offers bachelor’s degree and graduate division 
that comprises a graduate school and professional schools each of which 
may confer master’s and doctorate degrees. It is an entire socio-physical 
infrastructure comprised of schools, colleges and institutes offering degree 
programs in various disciplines and levels. 
 
SECTION 4. Coverage. The provisions of this Act shall apply to: 
a) New HEIs to be established and operated by LGUs by virtue of local 
governance; 
 
b) HEIs to be established and operated by LGUs offering non-degree 
programs but would eventually offer degree programs; 
 


c) Local colleges proposing reclassification as college, professional 
institutions or universities; and 
 
d) Existing LUCs which have not met the standards of the Commission on 
Higher Education (CHED) prescribed in this Act. 
 
SECTION 5. Establishment and Operation of Local HEIs by LGUs. A local HEI, to 
be known as a local college or dalubhasaan, shall be established and operated by an 
LGU through an ordinance duly enacted for that purpose by the Sanggunian 
concerned: Provided, that before the enactment of the said ordinance, the LGU 
establishing a local college shall consult and coordinate with the CHED to ensure 
observance of pertinent policies and standards promulgated by the CHED and 
compliance with the necessary requirements for the establishment and subsequent 
effective operation of the local college. 
 
 
The local HEI established by the LGUs shall be given a period of four (4) 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 HEI has not complied with 
the applicable criteria despite the four-year period provided herein, the status granted 
under this Act shall 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 or 
dalubhasaan. 
 
 
A local college may subsequently apply for elevation to a university: Provided, 
That it has complied with the standards and guidelines for the grant of university status 
pursuant to 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: 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. 


 
 
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 complied with the requisites provided for the establishment of an 
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” to 
make them worthy of their name. 
 
SECTION 6. Authority to Grant “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 banc shall grant the “University’ status upon compliance with the requirements.    
 
SECTION 7. Monitoring and Visitorial Powers. – Pursuant to the provisions of 
Republic Act 7722, all LUCs are subject to the inspection and evaluation of CHED. 
 
SECTION 8. Compliance with CHED Requirements. – All existing LUCs must 
comply with the requirements of the CHED within eight (8) years from the effectivity of 
this Act. The CHED shall grant full university status upon application of the local 
college ad only upon full compliance with the requirements. 
 
SECTION. 9. Benefits and Compliance. – All LUCs which shall comply with CHED 
requirements shall enjoy the following benefits: 
 
a) Special order to graduate from CHED, thereby enabling the graduates of 
LUCs to take licensure examinations given by the Professional Regulation 
Commission, and civil service examinations given by the Civil Service 
Commission; 
 
b) Inclusion in the Directory of CHED-recognized Philippine Universities and 
College; 


 
c) Quality assurance support from CHED, if qualified, pursuant to the CHED 
rules; and 
 
d) Acceptance of foreign students subject to compliance with the requirements 
of competent regulatory agencies. 
 
SECTION 10. 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 or a university or Pamantasan shall be its Board of Regents (BOR). 
The governing board of an LUC, hereinafter referred to as the Board, shall be 
composed of the following: 
 
a) Local Chief Executive or his duly designated representative, as chairperson; 
 
b) CHED Chairperson  or his duly designated representative, as co-
chairperson; 
 
c) President of the LUC, as vice-chairperson; 
 
d) Chairperson of the House Committee on Higher and Technical Education 
as member; 
 
e) Chairperson of the Senate Committee on Education, Culture and the Arts, 
as member; 
 
f) President of the duly recognized faculty association of the LUC, as member; 
 
g) President of the duly recognized student council of the LUC, as member; 
 
h) President of the alumni association, as member; 
 
i) Division Superintendent of the Department of Education (DepEd), as 
member; and 


 
j) Two (2) representatives from the private sector who have distinguished 
themselves in their profession or field of specialization and are bona fide 
residents of the community where the LUC is located, as members.  
 
One of the two (2) representatives from the private sector shall come from the 
business industry sector. They shall be appointed by the local chief executive and 
shall serve for a term of two (2) years from the date of their respective appointments. 
 
The terms of office of the president of the faculty association, the president of 
student council, and the president of the alumni association shall be co-terminous with 
the respective terms of office pursuant to their respective constitutions and by-laws. 
 
SECTION 11. Powers of the Board. – The Board shall promulgate policies on 
education, science and technology, arts, culture and sports, as well as policies, 
standards and thrusts in accordance with the declared state policies on higher 
education, such as Republic Act No. 7722 or the “Higher Education Act of 1994” and 
other pertinent laws, as well as the principle of local autonomy enshrined in Republic 
Act No. 7160 or the “Local Government Code of 1991.” 
 
 
The CHED, in the issuance of academic policies and standards affecting LUCs, 
shall take into account the different characteristics and the distinct features of the 
LUCs, their organizational set-up, and their operation: 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. 
 
 
The Board shall have the following specific powers and duties, in addition to its 
general powers of administration and the exercise of all powers granted to the board 
of directors of a corporation under Section 36 of the Batas Pambansa Blg. 68, 
otherwise known as the Corporation Code of the Philippines: 
 
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 and appropriate all sums, 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; 
 
c) 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 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. 
 
Such fees and charges, including government subsidies and other income 
generated by the LUC, shall constitute a special trust 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. 
 
Any provision or existing laws, rules and regulations to the contrary 
notwithstanding, any income generated by the LUC from tuition fees and 
other charges, as well as from the operation of auxiliary services and land 
grants, shall be retained by the LUC, and may be disbursed by the Board 
for instruction, research, extension services, or other programs/projects of 
the LUC: Provided, that all fiduciary fees shall be disbursed for the specific 
purpose for which they are collected. 
 
If, for reason of control, the university or college shall 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; 
 
e) To adapt and implement a socialized scheme of tuition and school fees for 
greater access to poor but deserving students; 
 
f) To authorize the construction or repair of its building, machineries, 
equipment, and other facilities, as well as the purchase and acquisition of 
real and personal properties, 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 duties, subject to 
applicable BIR (Bureau of Internal Revenue) rules and regulations; 
 
g) To appoint, upon the recommendation of the search committee created by 
the Board, 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 laws 
governing hours of service, and such other duties and conditions as it may 
deem proper; to grant them, at its discretion, leaves of absence under such 
regulations as it may promulgate, any provisions of existing law to the 
contrary notwithstanding; and to remove for cause in accordance with the 
requirements of due process of law; 
 
i) To approve the curricula and institutional programs of the institution: 
Provided, That it conforms to the CHED guidelines; 
 
j) To approve rules of discipline for the administrative and academic staff of 
the college or university to ensue orderly and effective governance thereof; 
 
k) To set policies on admission and graduation of students: Provided, That it 
conforms to the CHED guidelines; 
 


l) 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 certificate of completion of non-
degree and non-traditional courses; Provided that these conform with the 
applicable guidelines of the CHED; 
 
m) To establish research and extension centers of the LUC where such will 
promote the development of the latter; 
 
n) To establish chairs in the LUC and to fellowships for qualified faculty 
members and scholarships to deserving students; 
 
o) To adopt a tuition scheme that shall prescribe a different rate of fees for 
students who are residents of the area or LGU where the LUC is located 
and for those who are non-residents; 
 
p) To delegate any of its power and duties for the hereinabove to the president 
and/or other officials of the LUC as it may deem appropriate so as to 
expedite the administration of the affairs of the university or college; 
 
q) To authorize an external management audit of the institution, to be 
coordinated with CHED, and to institute reforms, including academic and 
structural changes, on the basis of the audit results and recommendations; 
 
r) To enter into joint ventures with business and industry for the profitable 
development and management of the economic assets of the college or 
university, the proceeds from which, shall be used for the development and 
strengthening of the LUC; 
 
s) To develop consortia and other forms of linkages with the LGUs, institutions, 
and agencies, both public and private, local and foreign, in furtherance of 
the purposes and objectives of the institutions; 
 


t) To develop academic arrangements for institution capability building with 
appropriate institutions and agencies, public or private, local or foreign, and 
to appoint experts/specialists as consultants, or visiting or exchange 
professors, scholars, researchers, as the case may be; 
 
u) To set up the adoption of modern and innovative modes of transmitting 
knowledge such as the use of information technology, the dual system, 
open learning, community laboratory, etc., for the promotion of greater 
access to education within the institution; 
 
v) To establish policy guidelines and procedures for participative decision 
making and transparency within the institution; 
 
w) To privatize, where most advantageous to the institution, management of 
the non-academic services such as health, food, building or grounds or 
property maintenance and similar objectives; and 
 
x) To extend the term of the president of the LUC beyond the age of retirement, 
but not later than the age of seventy (70)m whose performance has been 
unanimously rated as outstanding, and upon unanimous recommendation 
by the search committee for the president of the institution concerned. 
 
SECTION 12. Administration of the LCU. – The administration of the LCU 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. 
 
 
The President of the LUC shall have a term of five (5) years and shall be eligible 
for reappointment for another term, unless otherwise provided for in the ordinance 
creating the LUC. 
 
 
The President must have an appropriate earned Master’s degree, management 
expertise, and 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 LUC. 
 
 
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 his/her office, the Board shall have the authority to designate an officer-
in-charge of the LUC, within 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 
especially 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 civil service rules and regulations and ensuring that the same be 
comparable to that being received by the presidents of similar educational institutions. 
 
SECTION 13. Search Committee for President of the LUC. – Six (6) months before 
the expiration of the term of office of the incumbent President, the Board shall appoint 
a Search Committee for President of the LUC. The Search Committee shall conduct 
the search in accordance with the procedure and criteria established by the CHED. 
 
 
The Search Committee shall have five (5) members to be appointed by the 
Board. The composition of the Search Committee shall include a representative from 
the LGU concerned, the academe, the Association of Local Colleges and Universities 
(ALCU), the faculty, and the business sector. They shall elect a Chairperson and Vice-
Chairperson and Vice-Chairperson from among themselves. 
 
SECTION 14. The Administrative Council. – An Administrative Council may be 
created, which shall consist of the President of the LUC as Chairperson vice-
presidents, deans, 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. 
 


SECTION 15. The Academic Council. – An Academic Council may 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, rules and regulations on the discipline, 
subject to the approval of the Board. 
 
SECTION 16. Academic Freedom. – Pursuant to paragraph 2, Section 5 of Article 
XIV of the Constitution of the Republic of the Philippines, all institutions of higher 
learning, public or private, shall enjoy academic freedom and institutional autonomy. 
 
SECTION 17. Appropriation for LUCs. – There shall be a provision for the regular 
annual appropriation from the LGU to support and sustain the operation of the LUC. 
 
SECTION 18. Implementing Rules and Regulations. – The CHED, in coordination 
with the Department of Interior and 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. 
 
SECTION 19. Exclusion Clause. – The Act shall apply to all LUCs duly created by 
their ordnances enacted for that purpose, except for the Pamantasan ng Lungsod ng 
Maynila (PLM), which was created by virtue of Republic Act 4196. However, in so far 
as faculty qualification, curriculum and instruction, and facilities are concerned, the 
PLM shall be governed by this Act. 
 
SECTION 20. Exclusion Clause. – If any provision of this Act is declared 
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, presidential decrees or issuances, 
executive orders, rules and regulations or parts thereof  contrary to or inconsistent with 
the provisions of this Act are hereby repealed, modified or amended accordingly. 
 
SECTION 22. Effectivity Clause. – This Act shall take effect fifteen days (15) days 
after its publication in the Official Gazette or in at least two (2) newspapers of general 
circulation. 
 
Approved,