FIFTEENTH CONGRESS OF THE REPUBLIC 
OF THE PHILIPPINES 
First Regular Session 
SENATE 
Senate Bill No. 909 
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) 
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10 
JlJl. -8 A 9 :fl7 
INTRODUCED BY SEN. JINGGOY EJERCITO ESTRADA 
EXPLANATORY NOTE 
In an era of rapid transformation, the Local Governrnent Academy (LGA) 
needs to adopt structural reforms. It must be more accountable and should be 
run by committed professionals capable of meeting new challenges. It is the 
intention of this bill to strengthen the Academy and re-create it as a more 
autonomous body corporate with more powers, functions, and privileges to the 
end that its programs will be more innovations and responsive to the needs of its 
clients. For the next decade there is an optimism that flexibility, dynamism and 
maturity will enable LGA to rise above the challenges. 
As the LGA responds to the proceeds of increasing private and public 
participation and more demands for decentralization, the inadequacy of local 
chief executives and functionaries in terms of managerial and technical capability 
continue to derail local autonomy. The situation is attributed to the absence of 
the necessary support system bureaucratic structures and decades of statism. 
Since its creation by virtue of Executive Order 262 and reiterated by RA 6975 the 
LGA has maintained its status as an attracted agency of the government, the 
Department of Interior and Local Government (DILG). 
It is charged with the 
responsibility of improving the capabilities of local government executives and 
functionaries and the DILG personnel. 
With this mandate, the LGA needs a framework for the continuous 
evolution of its strategic thinking in terms of performing its critical role in local 
government capability building. It must continuously align its objectives with the 
changing situation. It must remove barriers to human resource development and 
standardize training programs to avoid proliferation of trainings and wastage of 
resources. 
Currently, the Academy in its attempt to cope with the fast changing policy 
and institutional requirements at the local level, the information revolution, 
technological changes and increasing globalization, finds great difficulty in 
addressing these demands. 
The constraint of a meager budget, inadequate 
manpower, increasing bureaucratic red tape has not maximized its operation as 
autonomous organization. 


Strengthening the LGS and granting it more powers will enable it to take 
bold and innovative steps in intensifying its capability to a proactive response to 
the development needs of local governments and human resource development 
programs of the DILG. 
Passage of this bill is therefore earnestly requested. 
OY EJERCITO ESTRADA 
Senator 


FIFTEENTH CONGRESS OF THE REPUBLIC 
OF THE PHILIPPINES 
First Regular Session 
SENATE 
Senate Bill No. 909 
) 
) 
) 
10 
JIJL -8 f\ 9 :(17 
INTRODUCED BY SEN. JINGGOY EJERCITO ESTRADA 
AN ACT 
CREATING THE LOCAL GOVERNMENT ACADEMY OF THE PHILIPPINES, 
PROVIDING FUNDS TEHREFOR AND OTHER PURPOSES 
Be it enacted by the Senate and House of Representatives of the Philippines in 
Congress assembled: 
SECTION 1. Title. This Act shall be known as the "Local Government 
Academy Act of 2010" 
SEC. 2. Declaration of Policy. Pursuant to the Constitutional mandate 
to ensure local autonomy and decentralization, it is hereby declared as a national 
policy to develop the institutional capabilities of local government units (LGUs), 
including the administrative and technical capabilities of local governrnent 
officials and employees, DILG personnel and other government and non-
government personnel concerned with local governments by enhancing the 
powers, duties and functions of the Local Government Authority (LGA). 
SEC. 3. 
Name. 
The entity is named Local Government Academy, 
hereinafter referred to as the Academy. 
SEC. 4. Status. The Academy shall be established as a body corporate 
which shall be under the direct supervision of an Executive Director. 
SEC. 5. Powers. The Academy shall have the following powers: 
a) To adopt, alter and use a corporate seal; 
b) To take and hold by request, devise, gift, purchase or lease, either 
absolutely or in trust for any of its purpose, any property, real or 
personal, without limitation as to amount or value; to convey such 
property and invest and reinvest any principal in such manner as well 
promote its objectives. 
c) To collect, receive and maintain a fund or funds, by allocation, 
,donation thereof to the promotion of its aims, enhancement of its 
. operations 
or 
rehabilitation 
of any 
physical 
structure 
or 
its 
. facilities/utilities and purposes herein before set out. 
d) To contract any obligation, or enter into any agreement necessary or 
incidental to the proper management of its corporate powers; and 


e) To carry out capability building programs with greater efficiency and 
effectiveness and perform any activity with all the powers conferred by 
a law or laws upon private or government owned or controlled 
corporation; and to do any and all of the acts and things herein set 
forth to the same extent as judicial person should do, and in any part of 
the world, as a principal factor, agent or otherwise alone or in 
syndicate or otherwise in conjunction with any person, entity, 
partnership, association or corporations, domestic or foreign. 
SEC. 6. Functions. The Academy shall have the. following functions: 
a) Design and implement training and human resource development 
programs for local government units, executives and functionaries and 
the DILG personnel that will ultimately effect institutional development 
and organization effectiveness; 
b) Assist the DILG in promulgating policies, rules and regulations other 
issues relative to human resource development and training for LGUS; 
c) Establish and maintain a mechanism to enable LGU's to access 
technical as well as financial assistance in building institutional 
capabilities to respond to the needs of local governance within the 
framework of local autonomy; 
d) Establish and maintain a continuing linkage and network with different 
institutions and civil society for synergy in local government capability 
building and to cope with the technological and institutional needs of 
LGUs in the context of globalization; 
e) Develop a corp of efficient, effective and competent LGA personnel 
which shall be provided with all renumerations and benefits needed for 
enhancement and satisfaction. 
f) Undertake a rehabilitation, upgrading and expansion of its training 
center as a venue for conducting efficient and effective capability 
building programs. 
SEC. 7. Location and Offices. The LGA shall maintain a central office in 
the Metro Manila area and three training and technical assistance centers in 
Luzon, Visayas and Mindanao. 
SEC. 8. Board of Trustees. The governing and policy-making body of 
the LGA shall be the Board of Trustees composed of the Secretary of Interior 
and Local Government as ex-officio Chairman and four (4) other members. The 
LGA Executive Director shall be an ex-officio member of the Board while the 
three (3) remaining members shall be appointed by the President but shall 
represent the academe and the private sector who shall be recommended by the 
Secretary. 
The President of the League of Province, League of Cities, League of 
Municipalities and Liga ng mga Barangay shall sit as non-voting members of the 
board shall serve as such from the duration of their incumbency in their 
respective offices. 


The appointive members shall serve for a term of three (3) years without 
reappointment. Appointment to any vacancy shall only be for the unexpired term 
of the predecessor. 
In no case shall any trustee be appointed or designated in a temporary or 
acting capacity. 
Trustee shall be entitled to reasonable honorarium for the performance of 
their duties and reimbursement for expenses incurred while discharging their 
functions as trustees. 
SEC. 9. Powers and Duties of the Board. The powers of the LGA shall 
be vested in the Board of Trustees. It shall have the following powers and duties: 
a) Prepare and adopt policies, guidelines, 
rules and 
regulations 
necessary for the smooth operations of the LGA and for the 
enhancement and development of its personnel; and 
b) Prepare and/or approve the organization, structure and staffing of LGA 
employees; 
All position shall be governed by compensation and position, 
qualification system and qualification standards approved by the board 
based on a comprehensive job analysis and or audit of actual duties 
and responsibilities. The compensation plan shall be comparable to 
the prevailing compensation plans in the private sector and shall be 
subjected to periodic review by the board no more than every three (3) 
years without prejudice to yearly merit review or increases based on 
productivity and profitability. 
LGA shall be exempt from existing laws, rules and regulations 
compensation, position classification and qualification standards. 
c) Approve courses of training/study for LGUs and training fees required 
for train programs as well for the rental of LGA facilities; 
d) Approve work plans and budget proposals of the Academy for 
consideration of appropriate agencies and other funding institutions, 
both local and foreign; 
e) Review periodically the administration and programs of the LGA its 
performance and accomplishment 
f) Perform such other duties as may be required by law. 
SI;C. 10. Officers of the Academy. The Academy shall be headed by an 
Executive Director as Chief Executive and assisted by a Deputy Director, who 
shall be' appointed by the President of the Philippines upon recommendation of 
the Board of Trustees. In addition. the Executive Director shall have passed the 
Career Executive Service Officers Exam or its equivalent and/or shall satisfy the 
qualification standards required by the Civil Service Commission. 
The Executive Director shall have the following duties and responsibilities: 
a) Recommend to the Board of Trustees, the measures and policies 
which he/she believes are necessary in carrying out the purposes of 


the Academy and all matters pertinent to its operations including the 
enhancement and development of its personnel; 
b) To recommend to the Board of Trustees the programs and projects of 
the Academy and coordinate and administer the same; 
c) To direct and supervise the operations and intemal administration of 
the Academy and to delegate administrative responsibilities to the 
appropriate officer or employee in accordance with the rules and 
regulations of the academy; 
d) To submit an annual report to the Board of Trustees setting forth the 
work of the Academy during the year, its financial operation and status; 
e) Appoint, subject to civil service laws, rules and regulations, all 
subordinate officers and employees, who shall enjoy security of tenure 
and may be removed only for cause in accordance with the law; 
f) Engage the service of experts/consultant either on full-time or part-time 
basis, as may be required in the performance of his functions and 
duties as determined by him/her; 
g) Exercise such other powers and discharge such other functions as 
may be vested by the Board of Trustees. The Executive Secretary 
, who shall be appointed by the Board shall be the ex-officio secretary of 
the Board of Trustees and shall head the secretariat of the Board. 
He/she shall also perform such other functions as may be lawfully 
delegated or assigned by the Board. 
SEC. 11. 
Financial Resources of the Academy. 
The financial 
resources of the Academy shall comprise of the following: 
1) Funds from the government appropriations for the LGA for its initial 
operation and funds from international and national organization, 
foundations as well as from the private sectors; 
2) Voluntary contributions; 
3) Income from the use of training facilities, sale of publications, materials 
and other services; 
4) Contributions 
of 
non-financial 
nature 
or 
"in-kind" 
service 
of 
equipment/vehicle needed for its operations. 
SEC. 12. Account and Audit. The auditor assigned at the Academy 
shall conduct an annual audit of its funds. 
SEC. 13. Exemption from Taxes. Any provision of existing laws to the 
contrary notwithstanding, any donation, contribution, bequest, subsidy or 
financial and which may be made to the Academy shall be exempt from taxes of 
any kind, and shall constitute allowable distinctions in full from the income of the 
donors or givers for income tax purpose. 
The LGA, its assets, acquisitions including grants and donations, income 
from its operations and transactions shall be exempt from taxes, fees, charges 
and imports, licensed and assessments, direct or indirect, imposed by the 
Republic of the Philippines or any of its political subdivision or taxing authority 
thereof, except import taxes, duty and fees. 


SEC. 14. Transitory Provision. All function, powers and responsibilities 
of the existing Local Government Academy (LGA) presently attached to the 
Department of the Interior and Local Government (DILG) as well as assets, funds 
properties, indebtedness or liabilities, including its budgetary appropriations, shall 
be tra'nsferred to the LGA created under this Act, subject to the conditions that 
may be established by the Department of Budget and Management (DBM), the 
Commission on Audit (COA) and Office of the President (OP), 
Pending full implementation of the LGA organization structure and staffing 
pattern under this Act, all officials and employees of the present LGA shall 
continue to exercise their duties and functions and receive their salaries and 
allowances until they shall be given notice of separation or position re-
classification in accordance with Civil Service Laws, Rules and Regulations, but 
shall not exceed one (1) year from the approval of the Act. 
SEC. 15. Separability Clause. If any part or provision, of this Act is held 
unconstitutional or invalid, other parts or provisions thereof, which are not 
affected shall continue to remain in full force and effect. 
SEC. 16. Appropriation Clause. The amount necessary to carry out the 
purpose of this act, including its operation, maintenance and improvement of the 
Academy shall be included in the General Appropriation Act and renewed every 
year thereafter. 
SEC. 17. Repealing Clause. Executive Order 262 as well as Republic 
Act 6975 is hereby amended accordingly, 
SEC. 18. Effectivity. This Act shall take effect fifteen (15) days after its 
complete publication in the Official Gazette or in at least two (2) newspapers of 
general circulation. 
Approved,