FOURTEENTH CONGRESS OF THE REPUBLIC 
) 
First Regular Session 
) 1 
7 J(J -2 :':> 
i 
OF THE PHILIPPINES 
S E N A T E  
Senate Bill No. 521 
INTRODUCED BY SEN. JINGGOY EJERCITO ESTRADA 
EXPLANATORY NOTE 
In an era of rapid transformation, the Local Government 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 an autonomous 
body corporate with more powers, functions, and privileges to ensure that its 
programs will be more innovative 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 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 centralism. Since its 
creation by virtue of Executive Order' 262, reiterated by RA 6975, the LGA has 
maintained its status as an attached agency of 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 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 useless 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, and increasing bureaucratic red tape has not maximized its operation 
as an autonomous organization, 


Strengthening the LGA 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. 
The early passage of this bill is therefore earnestly sought. 
Senator 


S E N A T E  
Senate Bill No. 521 
INTRODUCED BY SEN. JINGGOY EJERCITO ESTRADA 
AN ACT 
STRENGTHENING THE LOCAL GOVERNMENT ACADEMY OF THE 
PHILIPPINES, PROVIDING FUNDS THEREFORE 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 
Government Act of 2007. 
SEC 2. Declaration ofPolicy. - 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 government 
officials and employees, DlLG personnel and other government and non- 
government personnel concerned with local governments by enhancing the 
powers, duties, and functions of the Local Government Academy (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 
as to 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 and 
utilities and purposes hereinbefore set out; 


d) To contract any obligation, or enter into any agreement necessary or 
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. 
incidental to the proper management of its corporate powers; and 
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 LGUs 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 remunerations and benefits needed for 
enhancement and satisfaction. 
9 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 
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 positions 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 trainingktudy for LGUs and training fees required 
d) Approve work plans and budget proposals of the Academy for 
consideration of appropriate agencies and other funding institutions, 
both local and foreign; 
for train programs as well for the rental of LGA facilities; 
e) Review periodically the administration and programs of the LGA its 
performance and accomplishment 
9 Perform such other duties as may be required by law. 
SEC 10. Officers of fhe 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 internal 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; 
9 Engage the service of expertslconsultant either on full-time or part-time 
basis, as may be required in the performance of his functions and 
duties as determined by himlher; 
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. 
Helshe shall also perform such other functions as may be lawfully 
delegated or assigned by the Board. 
SEC 11. Financial Resources ofthe 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 I 
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. Transitury 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 transferred 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 fiffeen (15) days after its 
complete publication in the Official Gazette or in at least two (2) newspapers of 
general circulation. 
Approved,