NINETEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
Third Regular Session
)
SENATE
S. No. 2932
25
22 P 2 -26
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 LCDs which, in turn, serve as models to 
other LGUs as well as international entities.
The "Local Governance Meritocracy Acf 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.
JINGGOY EJERCITO ESTRADA


NINETEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
Third Regular Session
r
)
SENATE 
S. No. ^932
25 ,1I\N 22 P2-.27
«i .
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".
3 
Sec. 2. Section 2 of Republic Act No. 11292 is hereby amended to read as
4 
follows:
5 
"Sec. 2. Declaration of Policy. - x x x.
6 
"TO THIS END, A UNIFIED, PRACTICAL, AND REAL
7 
TIME PERFORMANCE MEASUREMENT TOOL SHALL BE
8 
INSTITUTIONALIZED TO GAUGE THE EFFECTIVENESS OF
9 
LG US IN ACHIEVING THEIR RESPECTIVE LOCAL
10 
DEVELOPMENT OUTCOMES IN THE AREAS OF HEALTH,
11 
EDUCATION, STANDARDS OF LIVING, AND PEACE AND
12 
ORDER. LGUS UNDER THIS ACT SHALL INCLUDE
13 
PROVINCES, CITIES, MUNICIPALITIES, AND BARANGAYS."


1 
Sec. 3. Section 4 of Republic Act No. 11292 is hereby amended to read as
2 
follows:
3 
"Sec. 4. The Council of Good Local Governance. - x x x.
4 
"(a) X X x;
5 
"X X X
6 
"(f) X X x;
7 
"(G) COMMISSION ON HIGHER EDUCATION (CHED);
8 
"[(§)] (H) Department of Tourism (DOT);
9 
"[(b)] (I) Department of Environment and Natural Resources
10 
(DENR);
11 
"[(i)] (J) National Economic and Development Authority
12 
(NEDA);
13 
"(K) PHILIPPINE STATISTICS AUTHORITY (PSA);
14 
"(L) PHILIPPINE NATIONAL POLICE (PNP);
15 
"[())] (M) Office of Civil Defense; [(and)]
16 
"(N) DEPARTMENT 
OF 
INFORMATION 
AND
17 
COMMUNICATIONS TECHNOLOGY (DICT); AND
18 
"[(b)] (O) One (1) representative from the basic sectors to
19 
be nominated by 
the National Anti-Poverty Commission
20 
(NAPC).
21 
"The Secretary of the DILG shall act as Chairperson of the
22 
Council, AND THE PSA NATIONAL STATISTICIAN SHALL ACT
23 
AS CO-CHAIRPERSON. The appropriate office of the DILG, as
24 
the latter may designate, shall serve as the Secretariat of the
25 
Council."
26 
Sec. 4. Section 5 of Republic Act No. 11292 is hereby amended to read as
27 
follows:
28 
"Sec. 5. Powers and Functions of the Council. - x x x.
29 
"(a) Develop and promulgate the performance indicators
30 
that shall serve as standards for evaluating the LGU's compliance
31 
and/or satisfaction of each of the criteria prescribed above AND BE
32 
IN CHARGE OF DATA COLLECTION, INTEGRATON AND


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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;
"(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


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(RDCS), LOCAL DEVELOPMENT AGENCIES, LOCAL HEALTH
2 
BOARDS, LOCAL SCHOOL BOARDS, PEACE AND ORDER
3 
COUNCILS, and other sectors, to assist the Council members in the
4 
performance of their respective functions as provided for in paragraph (a)
5 
of this Section;
6 
"(e) X X x; and
7 
"(f) X X X."
8 
Sec. 5. Section 6 of Republic Act No. 11292 is hereby amended to read as
9 
follows:
10 
"Sec. 6. Implementing [Agency] AGENCIES. - The DILG
11 
AND THE PSA shall be the JOINT implementing [agency]
12 
AGENCIES of this Act. [ft} THEY shall, through [it%] THEIR
13 
relevant bureaus and offices, and in consultation and coordination
14 
with their partner agencies or sectors, THE RESPECTIVE
15 
LEAGUES OF LGUs AND CONCERNED LGUs, be responsible for
16 
the assessment and evaluation of each LGU relative to its
17 
compliance with the criteria, and SHALL recommend to the Council
18 
whether an LGU qualifies to be conferred or awarded the SGLG OR
19 
OTHER APPROPRIATE ACTION AS MAY BE ALLOWED IN
20 
THIS ACT.
21 
"The DILG AND/OR THE PSA shall call on any other
22 
concerned agencies, civil society organizations (CSOs), or PRIVATE
23 
sectors, as it may deem necessary, to assist in carrying out its
24 
responsibilities under this Act.
25 
"THE PSA WILL SERVE AS THE PRIMARY DATA
26 
CUSTODIAN. IT WILL BE IN CHARGE OF SETTING UP A
27 
DATA REPOSITORY THAT WILL BE MADE ACCESSIBBLE TO
28 
THE PUBLIC IN COMPLIANCE WITH THE DATA PRIVACY
29 
ACT. IT SHALL FINALIZE THE DATA COLLECTION,
30 
INTEGRATION, AND PROCESSING STANDARDS THAT WILL
31 
BE SHARED WITH AND USED BY THE LGUS.
32 
"THE DILG, IN COORDINATION WITH THE PSA, SHALL
33 
BE IN CHARGE OF PROVIDING CAPACITY BUILDING AND


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TRAINING SESSIONS FOR LGUS IN VIEW OF FULFILLING
2 
THEIR RESPONSIBILITIES UNDER THIS MEASURE."
3 
Sec. 6. Section 7 of Republic Act No. 11292 is hereby amended to read as
4 
follows:
5 
"Sec. 7. Criteria. - For the purpose of this Act, THERE WILL
6 
BE TWO CRITERIA CATEGORIES: (I) GOVERNANCE
7 
CRITERIA, WHICH FOCUSES ON PROCESSES AND INPUTS
8 
FOR STRENGTHENING LOCAL GOVERNANCE AND, (II)
9 
HUMAN DEVELOPMENT MERITOCRACY CRITERIA, WHICH
10 
FOCUSES ON GAUGING DEVELOPMENT OUTCOMES THAT AN
11 
LGU IS EXPECTED TO ACHIEVE. [,thc areas] DIMENSIONS in
12 
[the] EACH [criteria] CATEGORY shall be understood and
13 
interpreted as follows;
14 
nI. GOVERNANCE CRITERIA
15 
"(a) XXX
16 
"x X X
17 
"(j) XXX
18 
"II. HUMAN DEVELOPMENT MERITOCRACY CRITERIA
19 
"(A) HEALTH AND SOCIAL DIMENSION - THIS
20 
DIMENSION MEASURES THE OVERALL QUALITY OF HEALTH
21 
WITHIN LOCALITY THROUGH THE LONGEVITY OF LIFE OF
22 
ITS CONSTITUENTS.
23 
"(B) EDUCATION - THIS DIMENSION MEASURES THE
24 
ACCESS TO QUALITY OF EDUCATION 
OF A LOCALITY'S
25 
CONSTITUENTS.
26 
"(C) STANDARD OF LIVING - THIS DIMENSION
27 
MEASURES THE LEVEL OF INCOME OF CONSTITUENTS AND
28 
ECONOMIC OPPORTUNITIES WITHIN A LOCALITY.
29 
"(D) PEACE AND ORDER & PUBLIC SAFETY - THIS
30 
DIMENSION MEASURES 
THE PREVALENCE 
OF 
CRIME
31 
WITHIN A LOCALITY.


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"EACH DIMENSION UNDER THE 
HUMAN
2 
DEVELOPMENT MERITOCRACY CRITERIA SHALL 
BE
3 
MEASURED USING A SET OF INDICATORS FORMULATED
4 
AND DETERMINED BY THE COUNCIL 
BASED 
ON
5 
ACCEPTABLE STANDARDS USED NATIONALLY OR
6 
INTERNATIONALLY, TOGETHER WITH THE DATA IN THE
7 
PHILIPPINE HUMAN DEVELOPMENT REPORT. THE
8 
COUNCIL SHALL PRIORITIZE INDICATORS THAT MAY BE
9 
RETRIEVED FROM NATIONAL GOVERNMENT AND LOCAL
10 
GOVERNMENT SOURCES WITHOUT THE NEED 
FOR
11 
PRIMARY DATA GATHERING METHODOLOGIES SUCH AS
12 
STATISTICAL SURVEYS, CENSUS AND REGISTERS. THE SET
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OF INDICATORS FOR EACH DIMENSION SHALL BE USED TO
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COMPUTE FOR THE QUALIFICATIONS OF EACH LGU AND
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ASSESSED BASED ON THEIR RESPECTIVE HISTORICAL
16 
GROWTH OR PERFORMANCE SO THAT EACH LEVEL OF LGU
17 
COMPETES AGAINST ITSELF AND NOT AS AGAINST OTHER
18 
LGUS.
19 
"THE COUNCIL SHALL CONTINUOUSLY EXPLORE
20 
ALTERNATIVE STATISTICAL INDICATORS FOR THE HUMAN
21 
DEVELOPMENT MERITOCRACY CRITERIA, AS MAY BE
22 
NECESSARY AND APPROPRIATE FOR PURPOSES OF FASTER
23 
DATA COLLECTION AND PROCESSING. THESE INDICATORS
24 
SHALL BE UPDATED ANNUALLY BY THE COUNCIL AND
25 
SHARED WITH THE CONCERNED LGUS TO ENSURE THAT
26 
THE DATA EFFECTIVELY REFLECTS THE KEY DIMENSIONS
27 
OF THE HUMAN DEVELOPMENT MERITOCRACY CRITERIA.
28 
"X X X."
29 
Sec. 7. Two (2) new sections denominated as Section 7-A and Section 7-B,
30 
respectiveiy, are inserted after Section 7 of Repubiic Act No. 11292 and shaii read as
31 
follows:


1 
"SEC. 7-A. DATA COLLECTION. - LGUS MAY BE
2 
DESIGNATED AS THE PRIMARY DATA COLLECTOR WITHIN
3 
THEIR RESPECTIVE LOCALITIES. FOR THIS PURPOSES,
4 
LGUS MAY OPT TO HIRE THE NECESSARY PERSONNEL. THE
5 
NUMBER AND POSITIONS OF WHICH SHALL BE
6 
DETERMINED BY THE COUNCIL THROUGH THE REVISED
7 
IMPLEMENTING RULES AND REGULATIONS (RIRR) TO BE
8 
ISSUED THEREFOR.
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"CONSISTENT WITH SECTION 7 OF THIS ACT, DATA
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THAT MAY BE ACCESSED WITHOUT THE NEED FOR
11 
PRIMARY DATA GATHERING METHODOLOGIES AS
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DESCRIBED ABOVE SHALL BE PRIORITIZED.
13 
"SEC. 7-B. FREQUENCY OF DATA COLLECTION. - FOR
14 
THE HUMAN DEVELOPMENT MERITOCRACY CRITERIA
15 
UNDER SECTION 7 OF THIS ACT, REGULAR AND
16 
SYNCHRONIZED DATA COLLECTION SHALL BE CONDUCTED
17 
BY LGUS ANNUALLY OR ON SHORTER PERIODS BASED ON
18 
THE LATEST AVALABILITY OF IDENTIFIED INDICATORS. IN
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THE CONDUCT OF DATA COLLECTION, LGUS SHALL RECEIVE
20 
TECHNICAL ASSISTANCE FROM THE APPROPRIATE
21 
NATIONAL GOVERNMENT AGENCIES, AS NEEDED.
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COROLLARY TO THEIR DATA COLLECTIONS, LGUS SHALL,
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TO THE EXTENT POSSIBLE, MONITOR THE HUMAN
24 
DEVELOPMENT MERITOCRACY INDICATORS.
25 
Sec. 8. Section 8 of Republic Act No. 11292 is hereby amended to read as
26 
follows:
27 
"Sec. 8. Requisites to Quaiify for SGLG. - An LGU, which,
28 
according to the assessment of the DILG, complies, qualifies, and
29 
passes all assessment criteria as provided in Section 7 of this Act,
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AND APPROVED BY THE COUNCIL, shall be conferred and
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awarded the SGLG and granted the corresponding RECOGNITION,
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AWARDS AND MONETARY incentive as provided under Section


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11 of this Act. IN ASSESSING AN LGU'S QUALIFICATION FOR
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THE SGLG, GREATER CONSIDERATION SHALL BE GIVEN TO
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THE COMPLIANCE WITH THE HUMAN DEVELOPMENT
4 
MERITOCRACY CRITERIA, SUBJECT TO GUIDELINES TO BE
5 
ISSUED BY THE COUNCIL."
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Sec. 9. Section 11 of Republic Act No. 11292 is hereby amended to read as
7 
follows:
8 
"Sec. 11. The SGLG Incentive Fund. - x x x
9 
"X X X
10 
"RECOGNITION OF LGUS FOR THE SGLG MAY BE
11 
CONDUCTED ANNUALLY, BI-ANNUALLY OR QUARTERLY AS
12 
MAY BE DETERMINED BY THE COUNCIL.
13 
"LGUS 
EXPERIENCING PERSISTENT AND
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UNJUSTIFIABLE DECLINES IN THE INDICATORS TO BE
15 
IDENTIFIED UNDER THE HUMAN DEVELOPMENT
16 
MERITOCRACY CRITERIA MAY BE DISINCENTIVISED:
17 
PROVIDED, THAT EXTERNAL SHOCKS, SUCH AS NATURAL
18 
CALAMITIES, PANDEMICS, OR UNFORESEEABLE EVENTS
19 
BEYOND THE CONTROL OF THE LGUS SHALL BE
20 
CONSIDERED AS JUSTIFIABLE CAUSES."
21 
Sec. 10. Section 12 of Republic Act No. 11292 is hereby amended to read as
22 
follows:
23 
"Sec. 12. Utilization and Limitations on Expenditures of the
24 
Incentives under the SGLG Fund. - The use if the incentives paid
25 
out of the SGLG Fund shall be governed by the policies governing
26 
the utilization of the twenty percent (20%) of the annual [Internal
27 
Revenue Allotment (IRA)] NATIONAL TAX ALLOTMENT (NTA)
28 
for local development projects, the Annual Investment Program
29 
(AIP) and the Local Development Investment Program (LDIP).
30 
"The MONETARY incentives paid out of the SGLG Fund shall
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not be used for any of the following:
32 
"(a) X X x;
8


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”x X X."
2 
Sec. 11. Section 14 of Republic Act No. 11292 is hereby amended to read as
3 
foilows:
4 
"Sec. 14. Management and Administration of the SGLG Fund.
5 
- The SGLG Fund estabiished under Section 11 of this Act shali be
6 
managed and administered by the DILG with the supervision of the
7 
Councii. Appropriation to replenish the amount paid out from the
8 
Fund during the year and/or to augment the Fund shail be proposed
9 
by and ANNUALLY included in the budget of the DILG under the
10 
GAA."
11 
Sec. 12. Section 15 of Repubiic Act No. 11292 is hereby amended to read as
12 
follows:
13 
"Sec. 15. Guarantee of Local Government Autonomy. - The
14 
LOCAL autonomy AND FISCAL DECENTRALIZATION of LGUs
15 
shall be respected at all times. Nothing in this Act shaii be
16 
interpreted as iimiting the autonomy of LGUs to estabiish policies
17 
and pursue programs and projects designed not oniy to qualify for
18 
the SGLG award but aiso to ensure the enjoyment of their
19 
constituency the right to iife, iiberty, property, health, education,
20 
baianced and heaithfui ecoiogy, among others, in the exercise of
21 
their POLICE power under the generai weifare clause."
22 
Sec. 13. Section 16 of Republic Act No. 11292 is hereby amended to read as
23 
foilows:
24 
"Sec. 16. SGLG Operating Fund. - The activities and
25 
operational expenses, other than the incentive payouts, related to
26 
the implementation of this Act shail be initially funded from the
27 
DILG's Performance Challenge Fund. Thereafter, the DILG shall
28 
include in its annual budget to be incorporated in the GAA, the item
29 
for the SGLG operating fund in the amount equivalent to NOT LESS
30 
THAN [twe] FIVE percent [3%] (5%) of the SGLG Fund.


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Sec. 14. Data Privacy. - This data collection system shall respect the
2 
fundamental human right of privacy, ensure data quality, and uphold data protection
3 
principles of legitimate purpose, transparency, and proportionality.
4 
Sec. 15. Implementing Rules and Regulations. - Within ninety (90) days from
5 
the effectivity of this Act, the members of the Council led by the DILG and the PSA,
6 
in coordination with the Union of Local Authorities of the Philippines (ULAP) and the
7 
Leagues of LGUs and local officials, shall promulgate the implementing rules and
8 
regulations necessary for the effective implementation of this Act.
9 
Sec. 16. Separability Clause. - If any provision or part hereof is held invalid
10 
or unconstitutional, the remainder of the law or the provision or part not otherwise
11 
affected shall remain valid and subsisting.
12 
Sec. 17. Repealing Clause. - Any law, presidential decree or issuance,
13 
executive order, letter of instruction, administrative order, rule, or regulation
14 
contrary to or inconsistent with the provisions of this Act are hereby repealed,
15 
modified, or amended accordingly.
16 
Sec. 18. Effectivity. - This Act shall take effect fifteen (15) days after its
17 
publication in the Official Gazette or in a newspaper of general circulation.
Approved,
10