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Republic of the Philippines 02 wl 05 Gy
House of Representatives *
Quezon City
‘TWENTIETH CONGRESS
First Regular Session

House Bill No._1119

Introduced by Representatives Albert S. Garcia, Maria Angela S. Garcia, and
Jernie Jett V. Nisay

EXPLANATORY NOTE

The bill aims to institutionalize a modified version of the Human Development
Index (HDI) as a performance measurement tool for Philippine local government units (LGUs).
‘The proposal is designed as an amendment to the Seal of Good Local Governance (SGLG) Act
of 2019. With the aim of promoting a stronger culture of meritocracy among public servants in
the country, LGUs who consistently perform well according to the indicators of the index will be
recognized and given incentives while those who see sustained decreases in their indicators
may face disciplinary action or disincentives.

The index under the proposed bill includes the following dimensions: health, education,
standards of living, and peace & order. The performance of LGUs will be gauged based on how
well they are able to achieve increases in the outcomes defined under these dimensions as
measured by indicators that will be finalized by the implementing agencies.

We believe this bill can be a catalyst to raise the level of performance among our local
officials. As such, support for this measure is earnestly sought from my colleagues.

_
ion REP. MAR} ANGELA S. GARCIA
nd District, Bataan Third Distritf, Bataan

REP. JBRNI| /. NISAY
Pus ‘artylist

EPR ESS
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Republic of the Philippines
House of Representatives
Quezon City
TWENTIETH CONGRESS
First Regular Session

House Bill No._1110_

Introduced by Representatives Albert S. Garcia, Maria Angela S. Garcia, and
Jernie Jett V. Nisay

AN ACT
CONSOLIDATING ALL PERFORMANCE MEASUREMENT TOOLS AND REWARDS
SYSTEMS FOR ALL LOCAL GOVERNMENT UNITS BY INSTITUTIONALIZING
MERITOCRACY IN THE PHILIPPINES, AMENDING CERTAIN PROVISIONS OF
REPUBLIC ACT NO. 11292, OTHERWISE KNOWN AS “THE SEAL OF GOOD
LOCAL GOVERNANCE ACT OF 2019”

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 Governance

Meritocracy Act.”

SEC. 2. Section 2 of Republic Act No. 11292, otherwise known as “The Seal of
Good Local Governance Act of 2019,” is hereby amended to read as follows:

“SEC. 2. Declaration of Policy. - It is hereby declared the policy of
the State to recognize the good performance of local government units
(LGUs) in transparency and accountability in the use of public funds,
preparedness for challenges posed by disasters, sensitivity to the needs of
vulnerable and marginalized sectors of society, implementation of health
programs, investment and employment promotion, protection of
constituency from threats to life and damage to property, and safeguarding
the integrity of the environment. In such recognition, the State hopes to
encourage all LGUs to take on greater challenges, encourage outcome-
based performance, and [to] reward local governments for their effort in
pursuing [the] POLICIES THAT PROMOTE the general welfare of their
constituency and in enforcing existing laws


TO THIS END, A UNIFIED, PRACTICAL, AND REAL-TIME
PERFORMANCE MEASUREMENT TOOL SHALL BE
INSTITUTIONALIZED TO GAUGE THE EFFECTIVENESS OF LGUs IN
ACHIEVING THEIR RESPECTIVE LOCAL DEVELOPMENT OUTCOMES
IN THE AREAS OF HEALTH, EDUCATION, STANDARDS OF LIVING,
AND PEACE AND ORDER. LGUS UNDER THIS ACT SHALL INCLUDE
PROVINCES, CITIES, MUNICIPALITIES, AND BARANGAYS.”

‘SEC. 3. Section 4 of the same Act is hereby amended to read as follows:

“SEC. 4. The Council of Good Local Govemance. -There is hereby
established a Council of Good Local Governance (the "Council"), which shall be
composed of the following:

(a) Department of the Interior and Local Government (DILG);
(b) Department of Budget and Management (DBM);

{c) Department of Finance (DOF);

(d) Department of Health (DOH);

(e) Department of Social Welfare and Development (DSWD);

(f) Department of Education (DepEd);

(g) Department of Tourism (DOT) ;

(h) Department of Environment and Natural Resources (DENR) ;

on co DA

DEPARTMENT OF PLANNING, ECONOMY, AND DEVELOPMENT
(DEPDEV);

() Office of Civil Defense; [and]
(k) [One (1) representative from the basic sectors to be nominated by
the National Anti-Poverty Commission (NAPC)] COMMISSION ON
HIGHER EDUCATION (CHED);

(L) PHILIPPINE STATISTICS AUTHORITY (PSA) ;

(M) PHILIPPINE NATIONAL POLICE (PNP);

(N) DEPARTMENT OF INFORMATION AND COMMUNICATIONS
TECHNOLOGY (DICT);

(0) COMMISSION ON AUDIT (COA)

(P) CIVIL SERVICE COMMISSION (CSC)

(Q) One (1) representative from the basic sectors to be nominated by
the National Anti-Poverty Commission (NAPC).

The Secretary of the DILG shall act as Chairperson of the Council,
WITH THE PSA NATIONAL STATISTICIAN AS CO-CHAIRPERSON.
The appropriate office of the DILG, as the latter may designate, shall serve
as the Secretariat of the Council.

FOR PURPOSES OF THE DETERMINATION OF THE GRANTING
OF THE SGLG, THERE SHALL BE FIVE (5) COMMITTEES TO BE
FORMED WITHIN THE COUNCIL TO CORRESPOND WITH EACH OF
THE DIMENSIONS OF HUMAN DEVELOPMENT MERITOCRACY


CRITERIA AS ENUMERATED UNDER SECTION 7 HEREOF, AS
FOLLOWS:

1. COMMITTEE ON HEALTH - TO BE CHAIRED BY THE
SECRETARY OF THE DOH AND SUPPORTED BY THE SOCIAL
DEVELOPMENT COMMITTEE OF THE REGIONAL
DEVELOPMENT COUNCILS AND LOCAL HEALTH BOARDS;

2. COMMITTEE ON EDUCATION - TO BE CHAIRED BY THE
SECRETARY OF THE DEPED, CO-CHAIRED BY THE
CHAIRPERSON OF THE CHED, AND SUPPORTED BY THE
SOCIAL DEVELOPMENT COMMITTEE OF THE REGIONAL
DEVELOPMENT COUNCILS AND THE LOCAL SCHOOL
BOARDS;

3. COMMITTEE ON PEACE AND ORDER AND PUBLIC SAFETY —
TO BE CHAIRED BY THE SECRETARY OF THE DILG AND
SUPPORTED BY THE NATIONAL PEACE AND ORDER
‘COUNCIL AND THE PEACE AND ORDER COUNCILS AT THE
REGIONAL AND LOCAL LEVELS; AND

4, COMMITTEE ON STANDARDS OF LIVING - TO BE CHAIRED
BY THE DEPDEV AND SUPPORTED BY THE REGIONAL AND
LOCAL DEVELOPMENT COUNCILS.

5. COMMITTEE ON INFLATION - TO BE CHAIRED BY THE
DEPDEV AND SUPPORTED BY THE REGIONAL AND LOCAL
DEVELOPMENT COUNCILS.

THE COUNCIL SHALL DESIGNATE EACH COUNCIL MEMBER TO
BE PART OF THE APPROPRIATE COMMITTEE TO COINCIDE WITHITS
OFFICIAL MANDATE OR FUNCTION.”

SEC. 4. Section 5 of the same Act is hereby amended to read as follows:

“SEC. 5. Powers and Functions of the Council. -The Council shall act
as A policy-making and advisory body to ensure the proper implementation
of the SGLG. It shall perform the following powers and functions:

(a) Develop and promulgate the performance indicators that shall serve as
standards for evaluating the LGUs’ compliance [and/or] AND
satisfaction [of] WITH each of the criteria prescribed under Section 7 of
this Act. Provided, That the Council shall designate each Council
member to lead the development of performance indicators [his/her] in
THE area of jurisdiction or expertise and recommend the approval of


such performance indicators by the Council: Provided, further, That in
the development and approval of the performance indicators, the
Council shall take into consideration that LGUs may not be similarly
situated and that one (1) or more indicators may be peculiarly
inapplicable or extremely difficult to meet given the inherent limitations
or circumstances of the LGUs[;]: PROVIDED FINALLY, THAT THE
COUNCIL SHALL CONSIDER THE INDIVIDUAL PERFORMANCE OF
EACH LEVEL OF LGU VIS-A-VIS THEIR RESPECTIVE HISTORICAL
PERFORMANCES BASED ON THE STANDARDS FOR
EVALUATING EACH DIMENSION UNDER THE HUMAN
DEVELOPMENT MERITOCRACY CRITERIA AS DEFINED UNDER
SECTION 7 OF THIS ACT;

(b) Review [and/or] OR revise the performance indicators consistent with
the long-term development plans of the National Government. The
[development] IDENTIFICATION of indicators should reflect
DEVELOPMENT outcomes that are performance-based, encouraging
outputs that reflect concrete benefits to the community in terms of policy,
rules, regulations, behavior, skill competencies, knowledge, or attitude;

(c) Conduct an IMPACT evaluation [of the impact] of this Act on the
performance of the LGUs for purposes of determining the need for
enhancing or continuing the SGLG, rolling out the SGLG in barangays
AND NATIONAL GOVERNMENT AGENCIES and recommending any
amendatory legislation. For this purpose, the Council shall institute an
effective feedback mechanism where the concems of LGUs and other
stakeholders on the implementation of the SGLG are appropriately
considered;

(d) Create technical working groups, upon the recommendation of the
Council member concemed, composed of experts from government
agencies, representatives from the leagues of provinces, cities and
municipalities, BARANGAYS, and other sectors, to assist the Council
members in the performance of their respective functions as provided
for in paragraph (a) of this section;

(e) Submit to the President of the Philippines, the President of the Senate,
and the Speaker of the House of Representatives, on an annual basis,
copies of the performance indicators approved by the Council together
with the performance indicators developed and recommended by the
lead Council member, and the result of the impact assessment
conducted pursuant to paragraph (c) of this section; [and]

(f) BE IN CHARGE OF DATA COLLECTION, INTEGRATION, AND
PROCESSING STANDARDS FOR THIS MEASURE AND


SUPPORT THE LGUS BY PROVIDING ANY DATA THEY NEED TO
REGULARLY UPDATE THEIR DIMENSIONS UNDER THE HUMAN
DEVELOPMENT MERITOCRACY CRITERIA; AND

(G) Perform such other functions as are necessary or incidental to properly
carry out the purposes of this Act.”

‘SEC. 5. Section 6 of the same Act is hereby amended to read as follows:

“SEC. 6. Implementing [Agency] AGENCIES. -The DILG AND THE
PSA shall be the JOINT implementing [agency] AGENCIES of this Act. [It]
THEY shall, through [its] THEIR relevant bureaus and offices, and in
consultation and coordination with partner agencies or sectors,
RESPECTIVE LEAGUES OF LGUs AND LOCAL OFFICIALS, AND
CONCERNED LGUs, be responsible for the assessment and evaluation of
each LGU relative to its compliance with the criteria[,] and SHALL
recommend to the Council whether an LGU qualifies to be conferred or
awarded the SGLG[] OR OTHER APPROPRIATE ACTION AS MAY BE
ALLOWED IN THIS ACT, SUCH AS:

(a) THE DILG AND PSA MAY, INDIVIDUALLY OR JOINTLY, CALL ON
ANY OTHER CONCERNED AGENCIES AND INSTRUMENTALITIES,
LGU LEAGUES, CSOS, SECTORS, OR OTHER BODIES, AS THEY
MAY DEEM NECESSARY, TO ASSIST IN CARRYING OUT THEIR:
RESPONSIBILITIES UNDER THIS ACT.

(b) THE PSA SHALL SERVE AS THE PRIMARY DATA CUSTODIAN AT
THE NATIONAL LEVEL. IT SHALL BE IN CHARGE OF SETTING UP
A DATA REPOSITORY THAT SHALL BE ACCESSIBLE TO THE
PUBLIC IN COMPLIANCE WITH THE DATA PRIVACY ACT.

(c) THE DILG SHALL, IN COORDINATION WITH PSA, RECOGNIZE
WELL-PERFORMING LGUS AND GRANT FINANCIAL INCENTIVES
TO THE BEST-PERFORMING LGUS OR ENFORCE THE
APPROPRIATE MEASURES, AS PROVIDED IN THIS ACT:
PROVIDED, THAT IT CONFORMS TO THE PRINCIPLE OF
SUBSIDIARITY AS GUARANTEED UNDER SEC. 4, ARTICLE X OF
THE 1987 CONSTITUTION.

(d)THE PSA SHALL FINALIZE THE DATA COLLECTION,
INTEGRATION, AND PROCESSING STANDARDS THE LGUS
‘SHALL SHARE AND USE.


THE DILG SHALL, IN COORDINATION WITH THE PSA, BE IN CHARGE OF
PROVIDING CAPACITY-BUILDING AND TRAINING SESSIONS FOR LGUS IN VIEW
OF FULFILLING THE LATTER’S RESPONSIBILITIES UNDER THIS ACT.

The DILG shall call on any other concemed agencies, civil society organizations
(CSOs), or THE PRIVATE sectorfs], as it may deem necessary, to assist in
carrying out its responsibilities under this Act.”

SEC. 6. Section 7 of the same Act is hereby amended to read as follows:
“SEC. 7. Criteria— For the purpose of this Act, TWO CRITERIA

CATEGORIES SHALL BE APPLIED ON DIFFERENT ASPECTS OF
LOCAL GOVERNANCE: (1) “GOVERNANCE CRITERIA” WHICH
EMPHASIZES PROCESSES AND INPUTS FOR STRENGTHENING
LOCAL GOVERNANCE, AND (2) “HUMAN DEVELOPMENT
MERITOCRACY CRITERIA” WHICH FOCUSES ON GAUGING
DEVELOPMENT OUTCOMES THAT AN LGU IS EXPECTED TO
ACHIEVE. The [areas] DIMENSIONS in [the] EACH criteria CATEGORY
shall be understood and interpreted as follows:
“(1) GOVERNANCE CRITERIA

(a) xxx

(b) xxx

(co) xxx

(d)xxx

(e) xxx

(xxx

(9) xxx

(h) xxx

(xxx

@ xxx’

“(2) HUMAN DEVELOPMENT MERITOCRACY CRITERIA

(A)HEALTH AND SOCIAL DIMENSION - THIS DIMENSION
MEASURES THE OVERALL QUALITY OF HEALTH WITHIN A


LOCALITY THROUGH THE LONGEVITY OF LIFE OF ITS
CONSTITUENTS.

(B) EDUCATION — THIS DIMENSION MEASURES THE ACCESS OF A
LOCALITY'S CONSTITUENTS TO QUALITY EDUCATION.

(C)STANDARD OF LIVING — THIS DIMENSION MEASURES THE
LEVEL OF INCOME OF CONSTITUENTS AND ECONOMIC
OPPORTUNITIES WITHIN A LOCALITY.

(D)PEACE AND ORDER AND PUBLIC SAFETY - THIS DIMENSION
MEASURES THE PREVALENCE OF CRIMES WITHIN A
LOCALITY.

(E) INFLATION - THIS DIMENSION MEASURES INFLATION AND ITS.
EFFECT ON A LOCALITY’S CONSTITUENTS.

EACH DIMENSION UNDER THE HUMAN DEVELOPMENT
MERITOCRACY CRITERIA SHALL BE MEASURED USING A SET OF
INDICATORS TO BE FORMULATED AND DETERMINED BY THE
CONCERNED COMMITTEE AND APPROVED BY THE COUNCIL
BASED ON ACCEPTABLE NATIONAL OR INTERNATIONAL
STANDARDS, TOGETHER WITH THE DATA IN THE PHILIPPINE
HUMAN DEVELOPMENT REPORT. IN DETERMINING SUCH, THE
COUNCIL SHALL PRIORITIZE INDICATORS THAT CAN BE
GENERATED FROM NATIONAL AND LOCAL GOVERNMENT
SOURCES WITHOUT THE NEED FOR PRIMARY DATA GATHERING
METHODOLOGIES SUCH AS STATISTICAL SURVEYS, CENSUS,
AND REGISTERS.

THE SET OF INDICATORS FOR EACH DIMENSION SHALL BE USED
TO COMPUTE THE QUALIFICATIONS OF EACH LGU AND ASSESS
BASED ON THEIR RESPECTIVE HISTORICAL GROWTH OR
PERFORMANCE SO THAT EACH LEVEL OF LGU COMPETES
AGAINST ITSELF AND NOT AS AGAINST OTHER LGUS.

THE COUNCIL SHALL CONTINUOUSLY EXPLORE ALTERNATIVE
STATISTICAL INDICATORS FOR THE HUMAN DEVELOPMENT
MERITOCRACY CRITERIA AS MAY BE NECESSARY AND
APPROPRIATE FOR PURPOSES OF FASTER DATA COLLECTION
AND PROCESSING. THESE INDICATORS SHALL BE UPDATED
ANNUALLY BY THE CONCERNED AGENCY AND SHARED WITH
THE CONCERNED LGUS TO ENSURE THAT THE DATA
EFFECTIVELY REFLECT THE KEY DIMENSIONS OF THE HUMAN
DEVELOPMENT MERITOCRACY CRITERIA AS STIPULATED


UNDER THIS ACT AND ARE MORE READILY TRANSPARENT AND
ACCESSIBLE FOR EFFICIENT COLLECTION AND PROCESSING OF
THE LGUS AND IMPLEMENTING AGENCIES.

The foregoing criteria may be expanded by the Council to align with the thrusts
of the National Government and attune them [with] TO the changing times.”

SEC. 7. Two new sections denominated as Section 7-A and Section 7-B,
respectively, are inserted after Section 7 of the same Act to read as follows:

“SEC. 7-A. DATA COLLECTION. - LGUS SHALL BE DESIGNATED
AS THE PRIMARY DATA COLLECTING AGENCY WITHIN THEIR
RESPECTIVE LOCALITIES.

FOR PURPOSES OF THIS ACT, LGUS MAY OPT TO HIRE THE
NECESSARY PERSONNEL, SUCH AS STATISTICIANS AND OTHERS,
THE NUMBER AND POSITIONS OF WHICH SHALL BE DETERMINED
BY THE COUNCIL THROUGH THE REVISED IMPLEMENTING RULES
AND REGULATIONS TO BE ISSUED THEREFOR.

CONSISTENT WITH SECTION 7 OF THIS ACT, DATA THAT MAY
BE ACCESSED WITHOUT THE NEED FOR PRIMARY DATA-
GATHERING METHODOLOGIES AS DESCRIBED ABOVE SHALL BE
PRIORITIZED.

“SEC. 7-B. PERIODICITY OF DATA COLLECTION. - FOR THE
HUMAN DEVELOPMENT MERITOCRACY CRITERIA UNDER SECTION
7 OF THIS ACT, REGULAR AND SYNCHRONIZED DATA COLLECTION
SHALL BE CONDUCTED BY LGUS ANNUALLY OR ON SHORTER
PERIODS BASED ON THE LATEST AVAILABILITY OF IDENTIFIED
INDICATORS. IN THE CONDUCT OF DATA COLLECTION, LGUS
SHALL BE GIVEN TECHNICAL ASSISTANCE FROM THE
APPROPRIATE NATIONAL GOVERNMENT AGENCIES, AS NEEDED.

TO THE EXTENT POSSIBLE, HOWEVER, LGUS ARE EXPECTED
TO MONITOR INDICATORS AT SHORTER INTERVALS AS
IMPLEMENTATION OF THIS ACT BECOMES MUCH MORE
ESTABLISHED.”

SEC. 8. Section 8 of the same Act is hereby amended to read as follows:

“SEC. 8. Requisites to Qualify for SGLG. - An LGU, which, according
to the assessment of the DILG, complies, qualifies, and passes all
assessment criteria as provided in Section 7 of this Act, AND APPROVED
BY THE COUNCIL, shall be conferred and awarded the SGLG and granted


the corresponding RECOGNITION, AWARDS AND MONETARY
incentiveS as provided under Section 11 of this Act. IN ASSESSING AN
LGU’S QUALIFICATION FOR THE SGLG, GREATER CONSIDERATION
SHALL BE GIVEN TO THE LOCAL GOVERNMENT'S COMPLIANCE
WITH THE HUMAN DEVELOPMENT MERITOCRACY CRITERIA AS
ENUMERATED UNDER SECTION 7 OF THIS ACT. SEVENTY PERCENT
(70%) OF ANY NUMERICAL ASSESSMENT WEIGHT SHALL BE
ASSIGNED TO THE HUMAN DEVELOPMENT MERITOCRACY
CRITERIA WHILE THIRTY PERCENT (30%) SHALL BE FOR THE
GOVERNANCE CRITERIA.”

‘SEC. 9. Section 11 of the same Act is hereby amended to read as follows:

“SEC. 11. [The] SGLG [Incentive] Fund. -There is hereby created a
special account under the General Appropriations Act (GAA) called the
"SGLG Fund". The Fund shall be utilized only to pay out the incentives
granted to LGUs [which] THAT qualify for the SGLG

The Council established under Section 4 of this Act shall have the
authority to determine the monetary incentives for LGUs based on the
number of awardees. It shall also have the authority to re[-Jevaluate and
increase the amount of SGLG incentiveS to be awarded to LGUs:
Provided, That, the increase shall be subject to the sufficiency of the Fund
at the time the increment is implemented.

LGU RECOGNITION FOR THE SGLG SHALL BE CONDUCTED
ANNUALLY. QUARTERLY OR BI-ANNUAL RECOGNITIONS CAN BE
EXPLORED AS THE IMPLEMENTATION OF THIS INCENTIVE
BECOMES MUCH MORE ESTABLISHED. MONETARY INCENTIVES
FOR LGUS UNDER THIS ACT MAY ALSO BE SOURCED FROM OTHER
FUND ASSISTANCE SOURCES TO LGUS UNDER THE DILG OR
OTHER AGENCIES.

LGUS EXPERIENCING PERSISTENT AND UNJUSTIFIABLE
DECLINE IN THE INDICATORS IDENTIFIED UNDER THE HUMAN
DEVELOPMENT MERITOCRACY CRITERIA UNDER SECTION 7 OF
THIS ACT MAY BE DISINCENTIVIZED IN THE FORM OF LOWER OR
ZERO INCENTIVE: PROVIDED, HOWEVER, THAT THESE DECLINES
ARE NOT DUE TO EXTERNAL SHOCKS, SUCH AS NATURAL
CALAMITIES, PANDEMICS, OR UNFORESEEABLE EVENTS BEYOND
THE CONTROL OF THE LGUS: PROVIDED, FINALLY, THAT THE
SPECIFIC BENCHMARKS OR STANDARDS ABOUT THE QUALIFYING
PERCENTAGE DECREASE AND THE SUPPLEMENTARY CRITERIA
WILL BE DETERMINED BY THE COUNCIL.”


SEC. 10. Section 12 of the same Act is hereby amended to read as follows:

“SEC. 12. Utilization and Limitations on Expenditures of the Incentives
Under the SGLG Fund. -The use of the incentives paid out of the SGLG
Fund shall be governed by the policies governing the utilization of the
twenty percent (20%) of the annual [Internal Revenue Allotment (IRA)]
NATIONAL TAX ALLOTMENT (NTA) for local development projects, the
Annual Investment Program (AIP), and the Local Development Investment
Program (LDIP).

The MONETARY incentives paid out of the SGLG Fund shall not be used
for any of the following:

XXX.

SEC. 11. Section 14 of the same Act is hereby amended to read as follows:

“SEC. 14. Management and Administration of the SGLG Fund. —
The SGLG Fund established under Section 11 of this Act shall be
managed and administered by the DILG with the supervision of the
Council. Appropriation to replenish the amount paid out from the Fund
during the year [and/orJOR to augment the Fund shall be proposed by
THE COUNCIL and ANNUALLY included in the budget of the DILG
under the GAA”

‘SEC. 12. Section 15 of the same Act is hereby amended to read as follows:

“SEC. 15. Guarantee of Local Goverment Autonomy. —The LOCAL
AND FISCAL autonomy of LGUs, AS GUARANTEED UNDER THE 1987
CONSTITUTION, shall be respected at all times. Nothing in this Act shall
be interpreted as limiting the autonomy of LGUs to establish policies and
pursue programs and projects designed not only to qualify for the SGLG
award but also to ensure the enjoyment of their constituency the right to life,
liberty, property, health, education, balanced and healthful ecology, among
others, in the exercise of their POLICE power under the general welfare
clause. THE CONSTITUTIONAL MANDATE ON SUBSIDIARITY
PURSUANT TO THE PRESIDENT’S SUPERVISION POWER OVER
LGUS SHALL BE RESPECTED AT ALL TIMES.”

SEC. 13. Section 16 of the same Act is hereby amended to read as follows:


“SEC. 16. SGLG Operating Fund. - The activities and operational
expenses, other than the incentive payouts, related to the implementation
of this Act shall be initially funded from the DILG’s Performance Challenge
Fund. Thereafter, the DILG shall include in its annual budget to be
incorporated in the GAA[,] the item for the SGLG operating fund in the
amount equivalent to [two percent (2%)] NOT LESS THAN FIVE
PERCENT (5%) of the SGLG Fund.”

SEC. 14. Data Privacy. This data collection system shall respect the
fundamental human right of privacy, ensure data quality, and uphold data protection
principles of legitimate purpose, transparency, and proportionality.

SEC. 15. Implementing Rules and Regulations. Within ninety (90) days from
the effectivity of this Act, the members of the Council led by the DILG and the PSA,
together with the Union of Local Authorities of the Philippines and the Leagues of LGUs
and local officials, shall promulgate the rules and regulations necessary for the effective
implementation of this Act.

SEC. 16. Separability Clause. \f any provision or part of this Act is held
unconstitutional or invalid, the remaining parts or provisions not affected shall remain in
full force and effect.

SEC. 17. Repealing Clause. All laws, presidential decrees, executive orders,
letters of instructions, administrative orders, rules and regulations contrary to or
inconsistent with the provisions of this Act are hereby repealed, amended, or modified
accordingly.

SEC. 18. Effectivity. - This Act shall take effect fifteen (15) days after its
publication in the Official Gazette or in a newspaper of general circulation.

Approved,