Local Universities and Colleges Act

Schate / Difitp of the Erectarp TWENTIETH CONGRESS OF THE REPUBLIC OF THE PHILIPPINES 25 SEP 23 P4:48 First Regular Session SENATE RECEIVED BY: S.B. No. - 1402 INTRODUCED BY SENATOR RISA HONTIVEROS AN ACT PRESCRIBING MANDATORY GUIDELINES ON THE ESTABLISHMENT AND OPERATION OF LOCAL UNIVERSITIES AND COLLEGES EXPLANATORY NOTE

Section 1, Article XIV of the 1987 Constitution mandates the State to "protect

at all levels and to take and promote the right of all citizens to quality education appropriate steps to make such education accessible to all." In pursuit of this mandate, Local Government Units (LGUs) have played a vital role in expanding access to higher education through the establishment of Local Universities and Colleges (LUCs). Based on recent data from the Commission on Higher Education (CHED), over 100 LUCs have been established nationwide, offering degree and non-degree programs primarily to students in underserved and geographically disadvantaged communities. While LUCs serve as critical vehicles for localized, affordable, and often tuition- free tertiary education-particularly under Republic Act No. 10931 or the Universal Access to Quality Tertiary Education Act- not all of them are currently recognized by CHED, which is a prerequisite for accessing full government subsidies and ensuring minimum academic quality." In 2023, CHED reported that only a portion of existing LUCs met the institutional recognition (IR) requirements to be considered as public higher education institutions (HEIs) under national policy. Many others operate under local ordinances but without full alignment to CHED's policies, standards, and guidelines (PSGs), creating gaps in quality assurance, governance, and eligibility for public education benefits. This proposed measure, the "Local Universities and Colleges Governance Act," seeks to institutionalize a clear, transparent, and enforceable legal framework to guide

the establishment, operation, and continuous development of LUCs across the country. Specifically, the bill aims to: 1. Standardize the process for establishing LUCs, including the requirement for a feasibility study, institutional development plan, and prior CHED recognition; 2. Harmonize the governance structure of LUCs by prescribing a uniform composition and powers of their Board of Regents or Trustees; 3. Ensure alignment with national higher education policies, while allowing flexibility for LGUs to respond to local needs; 4. Safeguard public investments in LUCs by requiring financial sustainability and accountability mechanisms; 5. Guarantee the eligibility of compliant LUCs to government funding under RA No. 10931 and other CHED-administered programs; 6. Mandate a three-year transition period for existing LUCs to comply with the new standards, after which non-compliant institutions may face the phase-out of programs. In addition, the bill empowers CHED to perform regular monitoring and evaluation, while requiring it to consider the unique characteristics and resource constraints of LUCs in crafting academic policies. This acknowledges the diversity of LUCs while reinforcing the importance of consistent quality across all public higher education institutions. By providing a robust governance and quality assurance framework, this measure seeks to unlock the full potential of LUCs as engines of local development, skills formation, and inclusive growth. It also supports the broader objectives of Philippine higher education- equity, excellence, and responsiveness to 21st-century challenges. In view of the foregoing, the immediate passage of this bill is earnestly sought. RISA HONTIVEROS Senator

Senate Office of the anerretary TWENTIETH CONGRESS OF THE REPUBLIC OF THE PHILIPPINES First Regular Session SEP 23 P4:48 SENATE RECEIVED BY S.B. No. 1402 INTRODUCED BY SENATOR RISA HONTIVEROS AN ACT PRESCRIBING MANDATORY GUIDELINES ON THE ESTABLISHMENT AND OPERATION OF LOCAL UNIVERSITIES AND COLLEGES Be it enacted by the Senate and House of Representatives of the Philippines in Congress assembled:

SECTION 1. Short Title. - This Act shall be known as the "Local Universities

2 and Colleges Governance Act."

Sec. 2. Declaration of Policy and Objectives. - It is the policy of the State to

4 protect and promote the right of all citizens to quality education and to take 5 appropriate steps to make education accessible to all. In pursuit of this, the State shall 6 encourage the establishment of Local Universities and Colleges (LUCs) by Local 7 Government Units (LGUs), and ensure their development as viable and high-quality institutions of higher learning. This Act shall also recognize and respect the fiscal and administrative autonomy of LGUs in managing their respective LUCs, subject to quality assurance mechanisms, regulatory supervision, and policy guidance by the Commission on Higher Education (CHED).

Sec. 3. Definition of Terms. - As used in this Act:

a. Institutional Recognition (IR) refers to a process by which the Commission on Higher Education (CHED) grants recognition to an educational institution as a higher education institution (HEI) that meets the minimum standards for quality education. b. Local Government Units (LGUs) refer to the municipalities, cities, or provinces that establish an LUC

c. LUC as defined in Republic Act (R.A.) No. 10931, otherwise known as the "Universal Access to Quality Tertiary Education Act", refers to a public HEI established by an LGU through an enabling ordinance, financially supported by the LGU concerned, and compliant with CHED policies, standards, and guidelines. d. Ordinance refers to the enabling act of the Sangguniang Bayan, Panlungsod, or Panlalawigan that established a particular LUC. e. Sanggunian refers to the local legislative body which includes Sangguniang Bayan for municipalities, Sangguniang Panlungsod for cities, and Sangguniang Panlalawigan for provinces.

Sec. 4. Coverage. - The provisions of this Act shall apply to the following:

a. HEIs to be established and operated by LGUs for the purpose of offering higher academic programs; b. Educational institutions established and operated by LGUs offering non- degree programs, but would later offer higher academic programs; and c. Existing LUCS.

Sec. 5. Establishment of Local Universities and Colleges. - All LUCs covered

under Section 4(a) of this Act shall be established through an ordinance duly enacted for that purpose by the Sanggunian concerned. Within one (1) year from the enactment of such ordinance, the LGU shall apply for Institutional Recognition (IR) from CHED through its appropriate Regional Office. The CHED may grant a conditional IR for a period not exceeding two (2) years, during which the LUC must fully comply with the mandatory requirements set forth under Section 6 of this Act.

Sec. 6. Mandatory Requirements for the Institutional Recognition of Local

Universities and Colleges. - In order for LUCs to be institutionally recognized as HEIs, the CHED shall strictly require all such LUCs to submit the following requirements for review and approval: a. A feasibility study that shall include but not limited to the following discussions: 1. The need for a local HEI in the area; 2. Human resource requirements of the industry to determine proposed

program offerings; 3. Target program offerings; and 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 LGU concerned, as provided under the pertinent provisions of R.A. No. 7160, otherwise known as the "Local Government Code of 1991". c. A project development plan to show that the LGU has allocated a school site with appropriate size and location pursuant to the applicable provisions of Presidential Decree No. 1096, s. 1977, otherwise known as the "National Building Code of the Philippines", blueprint of architectural design for its buildings and other physical facilities, and provisions for acquisition of instructional materials and equipment that comply with CHED Memorandum Orders pertinent to the program offered. d. A five-year institutional development plan duly approved by the Sanggunian which shall include, but not be limited to, the following: (1) annual budgetary allocation; (2) organizational structure and composition of the Board of Regents (Board); and (3) a proposed plantilla of positions subject to approval by the Civil Service Commission (CSC). In the interim, a provisional staffing plan may be adopted by the LGU. Provided that, the feasibility study must reflect consultations with relevant stakeholders, including local industry representatives, educational experts, community organizations, and prospective students, to ensure alignment of program offerings with local needs and development priorities."

Sec. 7. Prior Approval of the Commission on Higher Education for the Offering

of Academic Programs. - A duly established HEI and other educational institutions covered under Section 4 of this Act shall secure approval from the CHED prior to the offering of higher academic programs. The Chairperson of the Board, or its President when so authorized by the Board, shall file with the CHED an application to offer a higher academic program. The application shall be supported with documents indicating compliance with the policies, standards, and guidelines relative to such academic program.

Sec. 8. Benefits and Incentives. - All LUCs established in accordance with the

provisions of Sections 5 and 6 of this Act shall be eligible to avail of the benefits provided under R.A. No. 10931. They shall likewise be eligible to apply for any grant or subsidy provided by the CHED, subject to its existing requirements and guidelines. They shall also be eligible to receive support from CHED for the development of their human resources through appropriate scholarships for post-graduate studies, continuing professional development programs, and other capacity-building activities that ensure the delivery of quality education. LUCs shall be listed in the registry of Philippine HEis, which will assist and facilitate the mobility of students and faculty to another country for purposes of study, research, teaching, or work. LUCs may likewise qualify to implement transnational higher education programs in accordance with Republic Act No. 11448, and to access the Tertiary Education Subsidy (TES) and other support mechanisms under Republic Act No. 10931, subject to CHED and UniFAST guidelines

Sec. 9. Monitoring and Evaluation of Local Universities and Colleges by the

17 Commission on Higher Education; Technical Assistance; Feedback Mechanism. - Pursuant to the provisions of R.A. No. 7722, otherwise known as the "Higher Education 19 Act of 1994", the CHED shall monitor and evaluate the performance of LUCs and their academic programs, consistent with the provisions of R.A. No. 11713..., otherwise 21 known as the "Excellence in Teacher Education Act". It shall continue to provide 22 technical assistance to and develop appropriate feedback mechanisms for the LUCs through its regional offices for their continuing growth and development. The CHED shall, in the issuance of academic policies affecting LUCs, ensure quality assurance while taking into account the different characteristics, peculiar needs, distinct features, organizational set-up, and operations of LUCs, among others. CHED shall develop a risk-based quality assurance framework for LUCs to include periodic performance reviews. In cases of persistent non-compliance with academic standards or poor institutional performance, CHED may recommend the suspension of academic programs, imposition of corrective measures, or phased institutional merger, subject to due process and in consultation with the concerned LGU.

Sec, 10. The Board of Regents of Local Universities and Colleges; Terms of Office. - The Board of LUCs shall have the following composition: a. Local Chief Executive, as Chairperson; b. President of the LUC, as Vice-Chairperson; c. President of the duly recognized faculty association of the LUC, as member; d. President of the duly recognized student council of the LUC, as member; e. Chairperson of the Committee on Education of the Sangguniang Bayan, Panlungsod, or Panlalawigan, as member; f. A representative from CHED with a rank not lower than Director as member; g. A representative from the alumni association of the LUC, elected by the alumni association; h. A representative from the local business or industry sector, nominated by the local chamber of commerce or equivalent body, and appointed by the Board; i. One representative who is of known probity and distinction in their respective fields of expertise in the municipality, city, or province where the LUC is located. The representative shall be appointed by the Local Chief Executive, and serve in coterminous with his or her term of office, unless earlier terminated.

Sec. 11. Meetings; Quorum; Compensation. - The Board shall regularly

convene at least once a month. The Chairperson of the Board may call for a special meeting whenever necessary: Provided, That members are notified in writing at least three (3) days prior to the said special meeting. A majority of all the members of the Board holding office at the time of its regular or special meeting shall constitute a quorum: Provided, That in the absence of the Chairperson and Vice-Chairperson, the Board may designate a presiding officer from among the members present, without prejudice to the validity of any act done in accordance with law. The members shall serve without compensation, but they shall be reimbursed for necessary expenses incurred in their attendance to meetings of the Board or in 32 connection with their official business, as may be authorized by resolutions of the

Board.

Sec. 12. Powers and Duties of the Board. - The Board is the highest policy-

making body of the LUC. As such, it shall have the following specific powers and duties in addition to its general powers of administration and powers granted to the board of directors of a corporation under R.A. No. 11232, otherwise known as the "Revised Corporation Code of the Philippines": a. Promulgate policies in accordance with the declared state policies on higher education as well as the policies, standards, and guidelines of the CHED under R.A. No. 7722 and other pertinent laws; b. 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. 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. Fix the tuition fees and other necessary school charges, such as but not limited to matriculation fees, graduation fees, and laboratory fees, as their respective boards may deem proper to impose after due consultations with the involved sectors; e. Appoint the President upon the recommendation of the Search Committee based on the selection procedure as provided in Section 14 of this Act; f. Confirm the appointments of other school officials, teaching, and non- teaching personnel appointed by the President; g. Determine and approve curricular programs and program offerings in response to the needs and demands of the community provided that these should comply with the policies, standards, and guidelines set by the CHED; h. Promulgate policies on admission, retention, and graduation of students and to award degrees, titles, diplomas, and certificates; i. Award honorary degrees upon persons in recognition of outstanding contributions in the field of education, public service, arts, science, and technology or any field of specialization within the academic competence of the LUC, subject to the existing CHED guidelines, and authorize the award

of certificates of completion of non-degree and nontraditional courses, subject to existing CHED policies and guidelines; j. Institutionalize and strengthen research and extension programs; k. Establish professorial chairs in the LUC and provide fellowships for qualified faculty and scholarships to deserving students; I. Develop and approve consortia and other forms of linkages with LGUs, institutions and agencies, both public and private, local and foreign, in furtherance of the purposes and objectives of the LUC, including its internationalization initiatives; m. Develop and approve academic arrangements for the capacity building of the institution, with appropriate institutions and agencies, public or private, local or foreign, and appoint experts or specialists as consultants, visiting or exchange professors, scholars, and researchers, as the case may be, consistent with the provisions of R.A. No. 11448, otherwise known as the "Transnational Higher Education Act", and other guidelines of the CHED relative to such academic arrangements; n. Set up the adoption of modern and innovative modes of transmitting knowledge through different teaching and learning modalities, subject to CHED requirements; o. Ensure the efficient management of non-academic services such as medical and dental, guidance and counseling, career and job placement, canteen, buildings, grounds and property maintenance, and similar services; p. Submit to the Local Chief Executive or to the Sangguniang Bayan, Panlungsod, or Panlalawigan an annual detailed report, setting forth the status, progress, needs, and goals of the LUC; and q. Delegate any of its powers and duties provided for herein to the President or other officials of the LUC as it may deem appropriate to expedite the administration of the affairs of the LUC.

Sec. 13. Academic Freedom and Institutional Autonomy. - Nothing in this Act

shall be construed to diminish the academic freedom of Local Universities and Colleges, which shall be exercised in accordance with the Constitution and applicable laws. LUCs shall likewise enjoy reasonable institutional autonomy consistent with

national higher education standards and CHED policies.

Sec. 14. Innovation and Flexible Learning. - LUCs shall be encouraged to adopt

innovative, flexible, and technology-enhanced learning modalities to improve access to and delivery of quality education, subject to CHED guidelines and policies."

Sec. 15. The President as Administrator of the Local University or College;

Other Officials and Employees, - The administration of the LUC shall be vested in the President who shall render full-time service to implement the policies promulgated by the Board. The President shall hold a doctoral degree in education, administration, or other related fields, with at least three (3) years of relevant administrative experience, 11 without prejudice to the Board prescribing additional qualifications. Provided, That in meritorious cases, the Board may recommend to CHED the 13 waiver of the doctoral requirement for candidates with proven academic leadership, institutional development experience, or exceptional expertise. The President shall serve a term of three (3) years, subject to reappointment for not more than two (2) terms. In case of vacancy by reason of death, compulsory retirement, resignation, removal for cause, or permanent incapacity of the President to perform the functions of his or her office, the Board shall have the authority to designate an Officer-in-Charge who shall serve no longer than the unexpired term. The powers and duties of the President, in addition to those specifically provided in 21 this Act, shall be those usually pertaining to the Office of the President of other 22 colleges and universities, and those delegated by the Board. The salary of the President shall be set by the Board, taking into consideration the applicable rules and regulations of the CSC and the Department of Budget and Management 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 shall be appointed by the President, subject to the confirmation of the Board. The appointment, as well as removal for cause, of these LUC officials and employees shall conform to existing civil service laws, rules, and regulations.

Sec. 16. Search Committee. - In case of vacancy in the Office of the President

1 brought about by any of the causes mentioned in the preceding section, the Board 2 shall organize and convene a Search Committee for the selection of a new President. The Search Committee shall have three (3) members to be appointed by the Board and shall not come from the Board. It shall elect a Chairperson and ensure that the new President is selected within three (3) months from the time the position is 6 vacated, or before the end of the unexpired term, whichever is earlier. For a newly established LUC, the Local Chief Executive shall organize a Search 8 Committee, composed of three (3) members, upon whose recommendation he shall 9 appoint its first President.

Sec. 17. The Secretary of the Local University or College. - The Board shall

appoint a Secretary who shall serve as such for both the Board and the LUC upon the recommendation of the President. The Secretary shall be the custodian of all official records of the LUC and shall communicate the notices of meetings to each member of the Board.

Sec. 18. Transitory Provision. - All LUCs already existing at the time of

effectivity of this Act shall be allowed to continue their operations for a period of three (3) years to comply with the requirements set forth herein: Provided, That, upon request by the concerned LGU, and for justifiable reasons, CHED may grant an extension not exceeding two (2) years to allow full compliance. Non-compliance after the lapse of the authorized period shall result in the phasing out of non-compliant academic programs.

Sec. 19. Penalties for Non-Compliance. - Any person or institution found in

violation of this Act or the implementing rules and regulations shall, after due notice and hearing, be liable to an administrative fine not exceeding one million pesos (P1,000,000.00), the exact amount to be determined in the IRR depending on the severity of the violationand as determined in the IRR. Responsibility for such violations may be attributed to erring officials, administrators, or governing boards of LUCs, as may be determined by the CHED, without prejudice to other administrative, civil, or criminal liabilities.

Sec. 20. Implementing Rules and Regulations. - Within ninety (90) days from

the effectivity of this Act, the CHED, in coordination with the Department of the Interior and Local Government, and other relevant agencies and sectors, shall issue

the rules and regulations implementing its provisions. The IRR issued pursuant to this section shall take effect thirty (30) days after its publication in a newspaper of general circulation.

Sec. 21. Separability Clause. - If any part or provision of this Act is declared

invalid or unconstitutional, the other provisions not otherwise affected shall remain in force and effect.

Sec. 22. Repealing Clause. - All laws, executive orders, presidential decrees,

administrative orders, rules and regulations, issuances, or parts thereof contrary to or inconsistent with the provisions of this Act are hereby repealed or amended accordingly.

Sec. 23. Effectivity. - Notwithstanding the non-issuance of the IRR, this Act

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