TWENTIETH CONGRESS OF THE 
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REPUBLIC OF THE PHILIPPINES 
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First Regular Session 
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- , ■ .Ofiu'i' of t*ic #■
25 AUG-6 A 9 S3
SENATE 
S. No.
RKEIVcDaV
Introduced by Senator Jinggoy Ejercito Estrada
AN ACT
CONSOLIDATING ALL PERFORMANCE MEASUREMENT TOOLS AND 
REWARDS SYSTEMS FOR ALL LOCAL GOVERNMENT UNITS BY 
INSTITUTIONALIZING A CULTURE OF MERITOCRACY IN THE 
PHILIPPINES, AMENDING CERTAIN PROVISIONS OF REPUBLIC ACT NO. 
11292, OTHERWISE KNOWN AS "THE SEAL OF GOOD LOCAL GOVERNANCE 
ACT OF 2019" AND FOR OTHER PURPOSES
EXPLANATORY NOTE
The efforts to promote transparency, accountability and efficiency in the local 
government units and to reward those who excel in espousing these principles has 
unceasingly been pursued by the leaders of our nation. One of these commendable 
efforts is the "Seal of Good Housekeeping" (SGH) and the "Performance Challenge 
Fund" which were rolled out in 2010 by the Department of the Interior and Local 
Government. SGH evolved into the Seal of Good Local Governance or SGLG which 
was as an initiative in line with the Philippine Open Government Partnership 
Commitment. Eventually, SGLG was institutionalized through legislation with the 
passage of Republic Act No. 11292, otherwise known as "The Seal of Good Local 
Governance Act of 2019".
For years now, SGLG has been both a challenge and an inspiration for LGUs 
to improve their services their constituents, initiate worthwhile programs and 
projects, and responsibly manage their financial resources. It showcases best


practices and remarkable innovations of LGUs which, in turn, serve as models to 
other LGUs as well as international entities.
The "Local Governance Meritocracy Act seeks to amend Republic Act 11292 
to expand the criteria of SGLG and increase the funding for its facilitation and 
operations. It proposes to expand the criteria to include human development 
meritocracy criteria which focuses on gauging development outcomes such as 
health, education, standard of living, peace and order. Through these, SGLG will be 
more holistic and reflective of the good governance that it continues to uphold.
In view of the foregoing, the immediate passage of this bill is highly 
recommended.
NGGiQY EJERCITO ESTRADA


TWENTIETH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
First Regular Session
' 
i
: 
of ti’L . •
25 AUG-6 A 9 53
S. No.
SENATE
993
m;cEiveDB>.
Introduced by Senator Jinggoy Ejercito Estrada
AN ACT
CONSOLIDATING ALL PERFORMANCE MEASUREMENT TOOLS AND 
REWARDS SYSTEMS FOR ALL LOCAL GOVERNMENT UNITS BY 
INSTITUTIONALIZING A CULTURE OF MERITOCRACY IN THE 
PHILIPPINES, AMENDING CERTAIN PROVISIONS OF REPUBLIC ACT NO. 
11292, OTHERWISE KNOWN AS "THE SEAL OF GOOD LOCAL GOVERNANCE 
ACT OF 2019" AND FOR OTHER PURPOSES
Be it enacted by the Senate and House of Representatives of the Philippines in 
Congress assembled:
1 
Section 1. Short Title. - This Act shall be known as the "Local Governance
2 
Meritocracy Act"
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Sec. 2. Section 2 of Republic Act No. 11292 is hereby amended to read as
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follows:
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"Sec. 2. Declaration of Policy. - x x x.
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"TO THIS END, A UNIFIED, PRACTICAL, AND
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REAL TIME PERFORMANCE MEASUREMENT TOOL
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SHALL BE INSTITUTIONALIZED TO GAUGE THE
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EFFECTIVENESS OF LGUS IN ACHIEVING THEIR
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RESPECTIVE LOCAL DEVELOPMENT OUTCOMES IN
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THE AREAS OF HEALTH, EDUCATION, STANDARDS OF
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LIVING, AND PEACE AND ORDER. LGUS UNDER THIS
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ACT SHALL INCLUDE PROVINCES, CITIES,
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MUNICIPALITIES, AND BARANGAYS."


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Sec. 3. Section 4 of Republic Act No. 11292 is hereby amended to read as
follows:
"Sec. 4. The Council of Good Local Governance. - x x x.
"(a) X X x;
"x X X 
"(f) X X x;
"(G) COMMISSION ON HIGHER EDUCATION (CHED);
"[(§)] (H) Department of Tourism (DOT);
(!) Department of Environment and Natural Resources 
(DENR);
nm} (J) National Economic and Development Authority 
(NEDA);
"(K) PHILIPPINE STATISTICS AUTHORITY (PSA);
"(L) PHILIPPINE NATIONAL POLICE (PNP);
"mi (M) Office of Civil Defense; [(and)]
"(N) DEPARTMENT OF INFORMATION AND 
COMMUNICATIONS TECHNOLOGY (DICT); AND
(O) 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, AND THE PSA NATIONAL STATISTICIAN 
SHALL ACT AS CO-CHAIRPERSON. The appropriate 
office of the DILG, as the latter may designate, shall serve 
as the Secretariat of the Council."
Sec. 4. Section 5 of Republic Act No. 11292 is hereby amended to read as
follows:
"Sec. 5. Powers and Functions of the Council. - x x x. 
"(a) Develop and promulgate the performance 
indicators that shall serve as standards for evaluating the 
LCD's compliance and/or satisfaction of each of the criteria 
prescribed above AND BE IN CHARGE OF DATA


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COLLECTION, INTEGRATON AND PROCESSING 
STANDARDS FOR THIS MEASURE AND SUPPORT THE 
LG US BY PROVIDING ANY DATA THEY NEED TO 
REGULARLY UPDATE THEIR DIMENSIONS UNDER 
THE HUMAN DEVELOPMENT MERITOCRACY 
CRITERIA: Provided, That the Council shall designate each 
Council member to lead the development of performance 
indicators in his/her 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 
TAKE INTO CONSIDERATION THE INDIVIDUAL 
PERFORMANCE OF EACH LEVEL OF LGU VIS-A-VIS 
THEIR OWN 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) X X x;
"(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 IN NATIONAL 
GOVERNMENT AGENCIES (NGAs) and recommending any 
amendatory legislation. For this purpose, the Council shall 
institute an effective feedback mechanism where the concerns of 
LGUs and other stakeholder on the implementation of the SGLG 
are appropriately considered;
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"(d) Create technical working groups, upon the 
recommendation of the Council member concerned, composed of 
experts from government agencies, representatives from the 
leagues of provinces, cities and municipalities, BARANGAYS, 
REGIONAL DEVELOPMENT COUNCILS (RDCS), LOCAL 
DEVELOPMENT AGENCIES, LOCAL HEALTH BOARDS,
LOCAL SCHOOL BOARDS, PEACE AND ORDER COUNCILS, 
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) X X x; and
"(f) X X X."
Sec. 5. Section 6 of Republic Act No. 11292 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. [ftj THEY shall, through 
[it£s] THEIR relevant bureaus and offices, and in 
consultation and coordination with their partner agencies or 
sectors, THE RESPECTIVE LEAGUES OF LGUs 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.
"The DILG AND/OR THE PSA shall call on any other 
concerned agencies, civil society organizations (CSOs), or 
PRIVATE sectors, as it may deem necessary, to assist in 
carrying out its responsibilities under this Act.
"THE PSA WILL SERVE AS THE PRIMARY DATA 
CUSTODIAN. IT WILL BE IN CHARGE OF SETTING UP 
A DATA REPOSITORY THAT WILL BE MADE


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ACCESSIBBLE TO THE PUBLIC IN COMPLIANCE WITH 
THE DATA PRIVACY ACT. IT SHALL FINALIZE THE 
DATA COLLECTION, INTEGRATION, AND 
PROCESSING STANDARDS THAT WILL BE SHARED 
WITH AND USED BY THE LGUS.
"THE DILG, IN COORDINATION WITH THE PSA,
SHALL BE IN CHARGE OF PROVIDING CAPACITY 
BUILDING AND TRAINING SESSIONS FOR LGUS IN 
VIEW OF FULFILLING THEIR RESPONSIBILITIES 
UNDER THIS MEASURE."
Sec. 6. Section 7 of Republic Act No. 11292 is hereby amended to read as
follows:
"Sec. 7. Criteria. - For the purpose of this Act,
THERE WILL BE TWO CRITERIA CATEGORIES: (I) 
GOVERNANCE CRITERIA, WHICH FOCUSES ON 
PROCESSES AND INPUTS FOR STRENGTHENING 
LOCAL GOVERNANCE AND, (II) HUMAN 
DEVELOPMENT MERITOCRACY CRITERIA, WHICH 
FOCUSES ON GAUGING DEVELOPMENT OUTCOMES 
THAT AN LGU IS EXPECTED TO ACHIEVE. [,thc areas] 
DIMENSIONS in [the] EACH [criteria] CATEGORY shall 
be understood and interpreted as follows:
"I. GOVERNANCE CRITERIA 
"(a) XXX 
"x X X 
"(j) XXX
"II. HUMAN DEVELOPMENT MERITOCRACY 
CRITERIA
"(A) HEALTH AND SOCIAL DIMENSION - THIS 
DIMENSION MEASURES THE OVERALL QUALITY OF 
HEALTH WITHIN LOCALITY THROUGH THE 
LONGEVITY OF LIFE OF ITS CONSTITUENTS.


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"(B) EDUCATION - THIS DIMENSION 
MEASURES THE ACCESS TO QUALITY OF EDUCATION 
OF A LOCALITY'S CONSTITUENTS.
"(C) STANDARD OF LIVING - THIS 
DIMENSION MEASURES THE LEVEL OF INCOME OF 
CONSTITUENTS AND ECONOMIC OPPORTUNITIES 
WITHIN A LOCALITY.
"(D) PEACE AND ORDER & PUBLIC SAFETY - 
THIS DIMENSION MEASURES THE PREVALENCE OF 
CRIME WITHIN A LOCALITY.
"EACH DIMENSION UNDER THE HUMAN 
DEVELOPMENT MERITOCRACY CRITERIA SHALL BE 
MEASURED USING A SET OF INDICATORS 
FORMULATED AND DETERMINED BY THE COUNCIL 
BASED ON ACCEPTABLE STANDARDS USED 
NATIONALLY OR INTERNATIONALLY, TOGETHER 
WITH THE DATA IN THE PHILIPPINE HUMAN 
DEVELOPMENT REPORT. THE COUNCIL SHALL 
PRIORITIZE INDICATORS THAT MAY BE RETRIEVED 
FROM NATIONAL GOVERNMENT 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 FOR THE 
QUALIFICATIONS OF EACH LGU AND ASSESSED 
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


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FOR THE HUMAN DEVELOPMENT MERITOCRACY
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CRITERIA, AS MAY BE NECESSARY AND
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APPROPRIATE FOR PURPOSES OF FASTER DATA
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COLLECTION AND PROCESSING. 
THESE
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INDICATORS SHALL BE UPDATED ANNUALLY BY THE
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COUNCIL AND SHARED WITH THE CONCERNED
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LGUS TO ENSURE THAT THE DATA EFFECTIVELY
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REFLECTS THE KEY DIMENSIONS OF THE HUMAN
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DEVELOPMENT MERITOCRACY CRITERIA.
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"x X X."
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Sec. 7. Two (2) new sections denominated as Section 7-A and Section 7-B,
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respectively, are inserted after Section 7 of Republic Act No. 11292 and shall read as
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follows:
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"SEC. 7-A. DATA COLLECTION. - LGUS MAY BE
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DESIGNATED AS THE PRIMARY DATA COLLECTOR
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WITHIN THEIR RESPECTIVE LOCALITIES. FOR THIS
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PURPOSES, LGUS MAY OPT TO HIRE THE
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NECESSARY PERSONNEL. THE NUMBER AND
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POSITIONS OF WHICH SHALL BE DETERMINED BY
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THE COUNCIL THROUGH THE REVISED
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IMPLEMENTING RULES AND REGULATIONS (RIRR)
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TO BE ISSUED THEREFOR.
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"CONSISTENT WITH SECTION 7 OF THIS ACT,
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DATA THAT MAY BE ACCESSED WITHOUT THE NEED
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FOR PRIMARY DATA GATHERING METHODOLOGIES
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AS DESCRIBED ABOVE SHALL BE PRIORITIZED.
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"SEC. 7-B. FREQUENCY OF DATA COLLECTION.
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- FOR THE HUMAN DEVELOPMENT MERITOCRACY
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CRITERIA UNDER SECTION 7 OF THIS ACT,
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REGULAR AND SYNCHRONIZED DATA COLLECTION
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SHALL BE CONDUCTED BY LGUS ANNUALLY OR ON
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SHORTER PERIODS BASED ON THE LATEST


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AVALABILITY OF IDENTIFIED INDICATORS. IN THE
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CONDUCT OF DATA COLLECTION, LGUS SHALL
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RECEIVE TECHNICAL ASSISTANCE FROM THE
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APPROPRIATE NATIONAL GOVERNMENT AGENCIES,
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AS NEEDED. COROLLARY TO THEIR DATA
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COLLECTIONS, LGUS SHALL, TO THE EXTENT
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POSSIBLE, MONITOR THE HUMAN DEVELOPMENT
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MERITOCRACY INDICATORS.
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Sec. 8. Section 8 of Republic Act No. 11292 is hereby amended to read as
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follows:
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"Sec. 8. Requisites to Quaiify for SGLG. - An LGU,
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which, according to the assessment of the DILG, complies,
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qualifies, and passes all assessment criteria as provided in
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Section 7 of this Act, AND APPROVED BY THE COUNCIL,
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shall be conferred and awarded the SGLG and granted the
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corresponding RECOGNITION, AWARDS AND
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MONETARY incentive as provided under Section 11 of this
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Act. IN ASSESSING AN LGU'S QUALIFICATION FOR
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THE SGLG, GREATER CONSIDERATION SHALL BE
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GIVEN TO THE COMPLIANCE WITH THE HUMAN
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DEVELOPMENT MERITOCRACY CRITERIA, SUBJECT
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TO GUIDELINES TO BE ISSUED BY THE COUNCIL."
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Sec. 9. Section 11 of Republic Act No. 11292 is hereby amended to read as
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follows:
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"Sec. 11. The SGLG Incentive Fund. - x x x
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"x X X
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"RECOGNITION OF LGUS FOR THE SGLG MAY
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BE CONDUCTED ANNUALLY, BI-ANNUALLY OR
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QUARTERLY AS MAY BE DETERMINED BY THE
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COUNCIL.
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"LGUS 
EXPERIENCING PERSISTENT 
AND
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UNJUSTIFIABLE DECLINES IN THE INDICATORS TO
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BE IDENTIFIED UNDER THE HUMAN DEVELOPMENT 
MERITOCRACY CRITERIA 
MAY 
BE
DISINCENTIVISED: PROVIDED, THAT EXTERNAL 
SHOCKS, SUCH AS NATURAL CALAMITIES, 
PANDEMICS, OR UNFORESEEABLE EVENTS BEYOND 
THE CONTROL OF THE LGUS SHALL BE CONSIDERED 
AS JUSTIFIABLE CAUSES."
Sec. 10. Section 12 of Republic Act No. 11292 is hereby amended to read as
follows:
"Sec. 12. Utilization and Limitations on Expenditures 
of the Incentives under the SGLG Fund. - The use if 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 [Mcrnal--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:
"(a) X X x;
"x X X."
Sec. 11. Section 14 of Republic Act No. 11292 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/or to augment the Fund shall be proposed by and 
ANNUALLY included in the budget of the DILG under the 
GAA."


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Sec. 12. Section 15 of Republic Act No. 11292 is hereby amended to read as
follows:
"Sec. 15. Guarantee of Local Government Autonomy.
The LOCAL autonomy AND FISCAL 
DECENTRALIZATION of LGUs 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."
Sec. 13. Section 16 of Republic Act No. 11292 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 NOT LESS THAN [two]
FIVE percent [2%] (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, 
in coordination with the Union of Local Authorities of the Philippines (ULAP) and the 
Leagues of LGUs and local officials, shall promulgate the implementing rules and 
regulations necessary for the effective implementation of this Act.
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Sec. 16. Separability Clause. - If any provision or part hereof is held invalid
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or unconstitutional, the remainder of the law or the provision or part not otherwise
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affected shall remain valid and subsisting.
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Sec. 17. Repealing Clause. - Any law, presidential decree or issuance,
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executive order, letter of instruction, administrative order, rule, or regulation
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contrary to or inconsistent with the provisions of this Act are hereby repealed,
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modified, or amended accordingly.
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Sec. 18. Effectivity. — This Act shall take effect fifteen (15) days after its
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publication in the Official Gazette or in a newspaper of general circulation.
Approved,
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