Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City, Metro Manila

THIRTEENTH CONGRESS
First Regular Session

18

House Bill'NO.

Introduced by HON. EDGAR M, CHATTO
18" DISTRICT, BOHOL

EXPLANATORY NOTE

The Local Government Academy is tasked to train and improve the managerial skills
and technical capability of local government officials and personnel to make local
government units more responsive to the demands of decentralization. To advance this
objective, the LGA must be clothed with ample and standardized powers, functions and
privileges. It must take a proactive response to the development needs of local
-governments and human resoutce development programs of the Department of the
Interior and Local Government (DILG).

Presently, however, the LGA is attached to the DILG with limited powers, functions
and privileges, as provided for under Executive Order NO. 262, otherwise known as The
Reorganization Act of the Department of Local Government and for other Purposes, and
as reiterated under Republic Act NO, 6975, otherwise known as The Department of the
Interior and Local Government Act of 1990. As such, it cannot effectively function in
accordance with its mandate.

This bill strengthens the LGA and transforms it to a more autonomous corporate
body, to with the end in view of inaking its programs and related activities more
responsive to the needs of its clients.

Filed during the 12" Congress, this proposed measure was approved unanimously by
the Committee on Local Government. But due to time constraints, the other committees
to which it was jointly referred did not have the opportunity to study its significance.

Support for its expeditious enactment is again earnestly sought during this Congress.

REP, EDGAR M. CHATTO.



Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City, Metro Manila

THIRTEENTH CONGRESS
First Regular Sessipn,

House Bill No.

Introduced by HON. EDGAR M. CHATTO
1" DISTRICT, BOHOL

AN ACT CREATING THE CHARTER OF THE LOCAL GOVERNMENT ACADEMY
(LGA), AMENDING FOR THE PURPOSE REPUBLIC ACT NO. 6975, OTHERWISE
KNOWN AS THE DEPARTMENT OF THE INTERIOR AND LOCAL GOVERNMENT
ACT OF 1990 AND APPROPRIATING FUNDS THEREFOR

_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 (LGA) Act of 2004.”

SECTION 2. Declaration of Policy. - It is hereby declared the policy of the State
to develop and enhance the institutional capabilities of local government units (LGUs),
including the administrative and technical capabilities of local government officials and
employees, the Department of the Interior and Local Government (DILG) personnel and
other government and non-government personnel concerned with local government by
enhancing the powers, duties and functions of the Local Government Academy.

SECTION 3. Name. — This entity shall be called the Local Government
Academy, hereinafter referred to as the Academy or LGA.



SECTION 4. Powers. ~The Academy shall have the following powers:

(a.) Adopt and alter a corporate seal;

(b.) Take and hold by bequest, 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 values; to convey such property and to invest and
reinvest any principal in such manner as will promote its objectives;

(c.) Promote its aims, enhance its operations or rehabilitate any of its physical
Structure, facilities/utilities and purposes herein set out;

(d.) Contract any obligation, or enter into any agreement necessary or incidental to
the proper management of its corporate powers; and

(e.) Carry out capability-building programs with greater efficiency and
effectiveness and perform any activity with all the powers conferred by a law
‘of laws upon private or government-owned or controlled corporations; and to
do any and all of the acts herein set forth, to the same extent as judicial
persons 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.

SECTION 5. 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 organizational

effectiveness;



(b.) Assist the DILG in promulgating policies, rules and regulations and other
issues relative to human resource development and training for LGUs that are
responsive to their needs, Training activities shall be preceded by training
needs assessments to ensure customized and relevant programs and shall also
ensure the conduct of progress and impact in its evaluation of LGU training
Programs;

(c.) Establish and maintain a mechanism to enable the 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 groups 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 corps of efficient, effective and competent LGA staff provided with
all the remuneration and benefits needed for their enhancement and
satisfaction; and

(£) Undertake rehabilitation, upgrading and expansion of its training center as a
venue for conducting efficient and effective capability-building programs.

SECTION 6. Location and Offices. - The Academy shall maintain a central office

in the Metro Manila area and three training and technical assistance centers: one (1) in

Luzon, one (1) in Visayas and one (1) in Mindanao.


SECTION 7. Board of Trustees. - The Board of Trustees shall be the policy-
making body of the Academy which shall be composed of the Secretary of the DILG as
ex-officio Chairman and the following members:

(1.) President of the League of Provinces;

; (2.) President of the League of Cities;

(3.) President of the League of Municipalities;

(4,) President of the Liga ng mga Barangay

(5.) President of the League of Vice Governors

(6, President of the League of Vice Mayors

(7.) Executive Director of the Academy

(8.) arepresentative from the academe

(9.) @ representative from the private sector, who shall be appointed by the

President of the Philippines upon the recommendation of the Secretary of the
DILG.

‘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.

The Chairman and members of the Board of Trustees shall be entitled to
reasonable honorarium for the performance of their duties and reimbursement and
regulations of expenses incurred while discharging their functions as such, subject to

auditing and rules.



SECTION 8. Powers and Duties of the Board, — The powers of the Academy
shall be vested in the Board of Trustees. It shall have the following powers and duties:
(2.) Prepare and or adopt policies, guidelines, rules and regulations necessary for a
smooth and orderly operations and for the enhancement and development of
its personnel;
(b.) Prepare and/or approve the organizational structure and staffing pattern for its
officers and 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 audit of actual duties and responsibilities. The
compensation plan shall be comparable to the prevailing compensation plans
in the private sector and shall be periodically review by the Board no more
than every three (3) years without prejudice to a yearly merit review or
increases based on productivity and profitability.
(c.) Approve courses of training/study for LGUs and training fees required for
training programs as well as 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, performance and
accomplishments of the LGA; and

(£) Perform such other duties as may be required by law.



SECTION 9. Officers of the Academy. - The Academy shall be headed by an
Executive Director as Chief Executive and assisted by three (3) Deputy Directors for
Luzon, Visayas, and Mindanao who shall be appointed by the President of the Philippines
upon recommendation of the Board of Trustees. The Executive Director and Deputy
Directors 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 shail have the following duties and responsibilities:

(a.) Recommend to the Board of Trustees, the measures and policies which he/she
believes are necessary to carry out the purposes of the Academy and all
matters pertinent to its operations including the enhancement and
development of its personnel;

(b.) Recommend to the Board of Trustees the programs and projects of the
Academy and coordinate and administer the same;

(c.) Direct and supervise the operations and internal administration of the
‘Academy, and delegate administrative responsibilities to the appropriate
officer or employee in accordance with its rules and regulations;

The LGA shall be exempt from the existing Salary Standardization Law and
its implementing rules and regulations.

(d) Submit an annual report to the Board of Trustees setting forth the
accomplishments of the Academy during the year, its financial operations 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;

(£) Engage the services of experts/consultants either on full-time or part-time
basis, as may be required in the performance of his functions and duties as
determined by him; and

(g.) Exercise such other powers and discharge such other functions as may be
vested by the Board. The executive secretary who shall be appointed by the
Board of Trustees shall be the ex-officio recorder/secretary of the Board of
Trustees and shall head the secretariat of the Board. He shall also perform
such other functions as may be lawfully delegated or assigned by the Board.

SECTION 10. Financial Resources of the Academy, — The financial resources of

the Academy shall comprise of:

1, Funds from the government appropriation for the LGA for its
initial operations and funds from international and national
organization, foundations as well as from the private sectors;

2. Voluntary contributions;

3. Income from training and the use of training facilities, sale of
publications, materials and other services; and

4. ‘The Academy may also receive non-financial contributions,
services or equipment/vehicles needed for its operations.

SECTION 11, Exemption from Taxes. - Any provision of existing laws to the

contrary not withstanding, 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 deductions in full from the income of the donors or givers for
income tax purposes.

The LGA, its assets, acquisitions including grants and donations, income from its
operations and transactions shall be exempt from any and all taxes, fees, charges and
imports, licenses and assessment, direct or indirect, imposed by the Republic of the
Philippines or any of its political subdivision or taxing authority thereof, except import
taxes, duties and fees.

SECTION 12. Appropriation Clause. - The amount necessary to carry out the
provisions of this Act, shall be included in the appropriations of the year following its
enactment into law.

SECTION 13. Transitory Provisions. — All functions, powers, duties and
responsibilities of the existing LGA presently attached to the DILG as well as all assets,
properties, funds, indebtedness or liabilities, including its budgetary appropriations, shall
be transferred to the Academy 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 the Office of the President (OP).

Pending full implementation of the LGA organizational structure and staffing
pattern under this Act, all officials and employees of the present LGA shall continue to
exercise their powers, discharge their duties, functions and responsibilities and receive
their salaries and allowances until they shall be given notice of separation or position in
accordance with Civil Service Laws, Rules and Regulations but shall not exceed one (1)

year from the approval hereof.



SECTION 14. Separability Clause. - If any part or provisions of this Act is
declared unconstitutional or invalid, the other parts or provisions hereof which are not
affected thereby shall continue to be in full force and effect.

SECTION 15. Repealing Clause. - The provisions of Republic Act NO. 6975,
Executive Order 262 and all other laws executive orders, issuances pertinent thereto are
are hereby amended, repealed or modified accordingly.

SECTION 16. Effectivity. - This Act shall take effect fifteen (15) days following
its complete publication in the Official Gazette or in at least two (2) newspapers of
general circulation, whichever comes earlier.

Approved.