THIRTEENTH CONGRESS OF THE REPUBLIC ) 
First Regular Session 
'04 J$j 
3g 
:37 
OF THE PHILIPPINES 
1 
1 
'I 
S E N A T E  
.we e = 
I 
S.B. NO. 
Introduced by Senator JINGGOY E JERCITO 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 a more autonomous body corporate with 
more powers, functions and privileges to the end that its programs will be more 
innovations and responsive to thc 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 process 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. This 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 gbvernment capability 
building. It must cpntinuously align its objectives with the changing situation. It must 
remove barriers to human resouace 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 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. 
'I 
Passage of this bill is therefore earnestly requested. 
Senator 


THIRTEENTH CONGRESS OF THE REPUBLIC ) 
FIRST REGULAR SESSION 
OF THE PHILIPPINES 
I 
S E N A T E  
k;j 
S.B. NO. 
Introduced by SENATOR JINGGOY E JERCITO ESTRADA 
AN ACT 
CREATING THE LOCAL GOVERNMENT ACADEMY OF TBE PHILIPPINES, 
PROVIDING FUNDS THEREFOR AND FOR OTHER PURPOSES 
Be it enacted by the Senate and thk House of Representatives in Congress assembled. 
Section 1. Title. - 
This Act shall be known as the “Local Government 
Academy Act of 2004.” 
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, 
DILG personnel and other government and non-government personnel concerned with 
local governments by enhancidg the powers, duties and functions of the Local 
I 
Government Academy (LGA). 
Sec. 3. Nume. - This 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: 
l 
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 purposes, any property, real or personal, 
without limitation as to amount or value; to convey such property and to 
invest and reinvest any principal in such manner as will promote its 
objectives. 


, 
I 
c. To collect, receive and maintain a fund or funds, by allocation, donation 
thereof to the prohotion of its aims, enhancement of its operations or 
I 
rehabilitation of any physical structure or its facilitieshtilities and 
purposes herein before set out. 
d. To contract any obligation, or enter into any agreement necessary or 
incident 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 
I 
l 
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 Aqademy shall have the following functions: 
a. Design and implement training and human reyource development 
progr’ams for local ,government units, executives and hnctionaries and the 
I 
DILG personnel that will ultimately effect institutional development and 
organization effectiveness; 
b. Assist the DILG in promulgating policies, rules and regulation and 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 mairptain a continuing linkage and network with different 
institutions and civil society for synergy in local govermnent capability 
building and to cope with the technological and institutional needs of 
LGUs in the context of globalization; 


'I 
, 
e. Develop a corp df efficient, effective and competent LGA personnel 
which shall be provided with all renumerations and benefits needed for 
their enhancement and satisfaction. 
f. Undertake rehabilitation, upgrading and expansion of its training center as 
a venue for conducting efficient and effective capability building 
pro grams. 
Sec. 7. Location and Offices. - The LGA shall maintain a central office in the 
Metro Manila area qnd three training and technical assistance centers in Luzon, Visayas 
and Mindanao . 
'I 
I 
See. 8. Board of Trustees. - The governing and policy-making body of the LGA 
shall be the Board of Trustees composed of the Secretary of the 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. 
,I 
The President of the League of Provinces, League of 
Cities, League of 
Muiiicipalities and Liga ng mga Barangay shall sit as non-voting members of the board 
I 
shall serve as such from the duration of their incumbency in their respective offices. 
The appointive members shall serve for a term of three 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 tp reasonable honorarium for the performance of their 
duties and to reimbursement for expenses incurred while discharging their functions as 
trustees. 
I 
Sec. 9. Powers and Duties of the Board. - The powers of the LGA shall be 
vested in the Board of Tiiistees. 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 andor approve the organization, structure and staffing of LGA 
employees; 
All position shall be governed by compensation and positioq qualification system 
and qualification standards approved by the board based on a comprehensive job analysis 
and or audit of actual duties aid responsibilities. The compensation plan shall be 
I 
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 exenipt from existing laws, rules and regulations compensation, 
position classification and qualification standards. 
c. Approve courses of traininglstudy for LGUs and training fees required for 
training programs qs 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. 
Sec. 10. Officers of the Academy. - The Academy shhll be headed by an 
Executive Director as Chief Execjutive and assisted by a Deputy Director, who shall be 
appointed by the President of the Philippines upon recommendations 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 Seivice Commission. 


The Executive Director shall have the following duties and responsibilities: 
a. 
b. 
C. 
d. 
e. 
f. 
g. 
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; 
I 
To recommend to tqe Board of Trustees the programs and projects of the 
Academy and coordihate and administer the same; 
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 . 
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; 
Appoint, subject to &vi1 service laws, rules and regulations, all subordinate 
officers and employees, who shall enjoy security of tenure and may be 
'I 
removed only for cause in accordance with the law; 
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 hiidher; 
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 
' I  
I 
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 ofthe Academy. - The financial resources of the 
shall comprise of the following: 
1, Funds from the government appropriation for the LGA fpr its initial operation 
and funds from international and national organization, foundations as well as 
I 
from the private sector$; 


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 ‘or equipmenthehicle 
needed for its operatioq. 
I 
Sec. 12. Account and Audit. - The auditor assigned at the Academy shall canduct 
an annual audit of its funds. 
I 
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 deductions in full from the income of the donors or givers for income tax 
‘I 
purpose. 
The LGA, its assets, acquibitions including grants and donations, income fiom its 
fees, charges and imports, 
I 
operations and transactions shali be exempt from taxes 
licensed and assessments, direct or indirect, imposed by the Republic of the Philippines 
or any 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 propFrties, indebtedness 
or liabilities, including its budghtary 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). 
‘I 
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 
‘I 
shall be given notice of separation or position re-classification in accordance with Civil 
I 


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 provisioqof this Act is held 
unconstitutional or invalid, other arts or provisions thereof, which aie not affected shall 
continue to remain in full force and effect. 
P 
Sec. 16. Appropriatioiz 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. Reflealing 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 Officjal Gazette or in at least two 92) newspapers of general 
circulation. 
Approved, 
' I