-ij^of tljf fi Pt'
NINETEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
Second Regular Session
24 MAR 13 P 4 '39
SENATE
Introduced by Senator SONNY ANGARA
AN ACT
CONSOLIDATING ALL PERFORMANCE MEASUREMENT TOOLS AND 
REWARDS SYSTEMS FOR ALL LOCAL GOVERNMENT UNITS (LGUS) BY 
INSTITUTIONALIZING A CULTURE OF MERITOCRACY IN THE 
PHILIPPINES, AMENDING CERTAIN PROVISIONS OF R.A. NO. 11292, 
OTHERWISE KNOWN AS "THE SEAL OF GOOD LOCAL GOVERNANCE ACT OF 
2019" AND FOR OTHER PURPOSES
EXPLANATORY NOTE
Throughout the years, the Seal of Good Local Governance (SGLG) has 
recognized the efforts of local government units (LGU) to improve their performance 
in upholding the principle of fostering community participation, ensuring 
transparency, promoting efficiency and upholding accountability, among others. This 
current bill aims to further enhance the criteria of excellence and accountability 
within LGUs.
The proposed measure aims to broaden the membership the Council of Good 
Local Governance. This expansion is driven by the need to incorporate expertise and 
inputs from key government agencies, thereby fortifying the SGLG's efficacy in 
guiding local governance. Acknowledging the paramount importance of effective 
data management in the expanded SGLG provisions, the national statistician of the 
PSA is appointed as co-chairperson for the SGLG. The PSA serves a pivotal role in 
the success of the expanded SGLG by contributing expertise in data gathering, 
monitoring, and integration, aligning with the new provisions. The Commission on 
Higher Education, Philippine National Police, and the Department of Information and 
Communications Technology were also added to the Council as they will be crucial in 
gathering supplementary insights and data pertinent to the expanded criteria 
specified in subsequent sections of the bill.
In the augmented framework of the Seal of the Local Governance, the 
"Human Development Meritocracy Criteria," is introduced to scrutinize development 
outcomes, diverging from the original criteria's emphasis on inputs and processes. 
This inclusion underscores a shift toward assessing governance through the lens of 
meritocracy. Simultaneously, the pre-existing Seal of the Local Governance criteria.


undergoes expansion to encompass potential additional indicators within specific 
criteria.
By emphasizing key criteria such as financial stability, social protection, and 
environmental management, the Seal of the Local Governance not only recognizes 
exemplary governance but also encourages continuous improvement, fostering a 
culture of responsibility and innovation among local government units. In a nation 
striving for progress and sustainable development, the significance of the Seal of the 
Local Governance cannot be overstated, as it becomes a catalyst for positive change 
ultimately contributing to the nation's overall advancement.
In view of the foregoing, the passage of this bill is earnestly sought.
SONNY ANGARA


NINETEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
Second Regular Session
24 mar 13 P4 ;39
SENATE
Introduced by Senator SONNY ANGARA
AN ACT
CONSOLIDATING ALL PERFORMANCE MEASUREMENT TOOLS AND 
REWARDS SYSTEMS FOR ALL LOCAL GOVERNMENT UNITS (LGUS) BY 
INSTITUTIONALIZING A CULTURE OF MERITOCRACY IN THE 
PHILIPPINES, AMENDING CERTAIN PROVISIONS OF R.A. 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 the House of Representatives of the Philippines in 
Congress assembled:
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SECTION 1. Short Title. - This Act shall be known as the "Local Governance
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Meritocracy Act."
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SEC. 2. Section 2 of Republic Act No. 11292 is hereby amended as follows:
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Section 2. Declaration of Policy. - It is hereby declared the
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policy of the State to recognize the good performance of local
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government units (LGUs) in transparency and accountability in the
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use of public funds, preparedness for challenges posed by disasters,
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sensitivity to the needs of vulnerable and marginalized sectors of
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society, implementation of health programs, 
investment and
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employment promotion, protection of constituency from threats to
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life and damage to property, and safeguarding the integrity of the
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environment. In such recognition, the State hopes to encourage all
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LGUs to take on greater challenges, encourage outcome-based
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performance and to reward local governments for their effort in
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pursuing the general welfare of their constituency and in enforcing
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existing laws.


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"TO THIS END, A UNIFIED, PRACTICAL, AND REAL TIME 
PERFORMANCE MEASUREMENT TOOL SHALL BE 
INSTITUTIONALIZED TO GAUGE THE EFFECTIVENESS OF 
LGUS IN ACHIEVING THEIR RESPECTIVE LOCAL 
DEVELOPMENT OUTCOMES IN THE AREAS OF HEALTH, 
EDUCATION, STANDARDS OF LIVING, AND PEACE AND 
ORDER. LGUS UNDER THIS ACT SHALL INCLUDE 
PROVINCES, CITIES, MUNICIPALITIES, AND BARANGAYS."
SEC. 3. Section 4 of Republic Act No. 11292 is hereby amended to read as
follows:
SEC. 4. The Council of Good Local Governance. - There is 
hereby established a Council of Good Local Governance (the 
"Council"), which shall be composed of the following:
(a) 
Department of the Interior and Local Government (DILG);
(b) 
Department of Budget and Management (DBM);
(c) 
Department of Finance (DOF);
(d) 
Department of Flealth (DOH);
(e) 
Department of Social Welfare and Development (DSWD);
(f) 
Department of Education (DepEd);
(g) COMMISSION ON HIGHER EDUCATION (CHED);
[(§)] H- Department of Tourism (DOT);
[(h)] I. Department of Environment and Natural Resources (DENR); 
[(t)] 3. National Economic and Development Authority (NEDA)
K. PHILIPPINE STATISTICS AUTHORITY (PSA);
L. PHILIPPINE NATIONAL POLICE (PNP);
m M. Office of Civil Defense; and
N. DEPARTMENT OF INFORMATION AND COMMUNICATIONS 
TECHNOLOGY (DICT)
O. One (1) representative from the basic sectors to be nominated by 
the National Anti-Poverty Commission (NAPC)


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The Secretary of the DILG shall act as Chairperson of the
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Council, AND THE PSA NATIONAL STATISTICIAN SHALL ACT AS
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CO-CHAIRPERSON. The appropriate office of the DILG, as the latter
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may designate, shall serve as the Secretariat of the Council.
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SEC. 4. Section 5 of Republic Act No. 11292 is hereby amended to read as
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follows:
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SEC. 5. Powers and Functions of the Council. - The Council shall
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act as policy-making and advisory body to ensure the proper
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impiementation of the SGLG. It shall perform the following powers and
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functions:
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(a) Develop and promulgate the performance indicators that
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shali serve as standards for evaluating the LGUs' compliance and/or
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satisfaction of each of the criteria prescribed above AND BE IN
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CHARGE OF DATA COLLECTION, INTEGRATION AND
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PROCESSING STANDARDS FOR THIS MEASURE AND
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SUPPORT THE LGUS BY PROVIDING ANY DATA THEY NEED
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TO REGULARLY UPDATE THEIR DIMENSIONS UNDER THE
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HUMAN DEVELOPMENT MERITOCRACY CRITERIA:
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Provided, That the Council shall designate each Council member to
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lead the development of performance indicators in his/her area of
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jurisdiction or expertise and recommend the approval of such
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performance indicators by the Councii: Provided, further. That in the
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development and approval of the performance indicators, the
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Council shall take into consideration that LGUs may not be similarly
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situated and that one (1) or more indicators may be peculiarly
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inapplicable or extremely difficult to meet given the inherent
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limitations or circumstances of the LGUs: PROVIDED, FINALLY,
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THAT THE COUNCIL SHALL TAKE INTO CONSIDERATION
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THE INDIVIDUAL PERFORMANCE OF EACH LEVEL OF LGU
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VIS-A-VIS THEIR OWN RESPECTIVE HISTORICAL
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PERFORMANCES BASED ON THE STANDARDS FOR


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EVALUATING EACH DIMENSION UNDER THE HUMAN
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DEVELOPMENT MERITOCRACY CRITERIA AS DEFINED
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UNDER SECTION 7 OF THIS ACT.
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(b) 
X X x;
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(c) Conduct an IMPACT evaluation [of the impact] of this Act
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on the performance of the LCDs for purposes of determining the
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need for enhancing or continuing the SGLG, rolling out the SGLG in
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barangays AND IN NATIONAL GOVERNMENT AGENCIES
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(NGAs) and recommending any amendatory legislation. For this
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purpose, the Council shall institute an effective feedback mechanism
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where the concerns of LGUs and other stakeholders on the
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implementation of the SGLG are appropriately considered;
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(d) Create technical working groups, upon the
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recommendation of the Council member concerned, composed of
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experts from government agencies, representatives from the
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leagues of provinces, cities and municipalities, BARANGAYS,
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REGIONAL DEVELOPMENT COUNCILS (RDCS), LOCAL
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DEVELOPMENT AGENCIES, LOCAL HEALTH BOARDS, LOCAL
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SCHOOL BOARDS, PEACE AND ORDER COUNCILS, and other
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sectors, to assist the Council members in the performance of their
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respective functions as provided for in paragraph (a) of this section;
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(e) 
X X x; and
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(f) 
X X X."
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SEC. 5. Section 6 of Republic Act No. 11292 is hereby amended to read as
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follows:
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SEC. 6. Implementing [Ageney] AGENCIES. -The DILG AND THE
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PSA shall be the JOINT implementing [agency^ AGENCIES of this Act.
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[ft} THEY shall, through THEIR [its} relevant bureaus and offices, and in
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consultation and coordination with partner agencies or sectors, THE
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RESPECTIVE LEAGUES OF LGUs AND CONCERNED LGUs, be
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responsible for the assessment and evaluation of each LGU relative to its


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compliance with the criteria, and SHALL recommend to the Council
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whether an LGU qualifies to be conferred or awarded the SGLG OR
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OTHER APPROPRIATE ACTION AS MAY BE ALLOWED IN THIS
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ACT.
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The DILG AND/OR THE PSA shall call on any other concerned
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agencies, civil society organizations (CSOs), or PRIVATE sectors, as it
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may deem necessary, to assist in carrying out its responsibilities under
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this Act.
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THE PSA WILL SERVE AS THE PRIMARY DATA CUSTODIAN. IT
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WILL BE IN CHARGE OF SETTING UP A DATA REPOSITORY THAT
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WILL BE MADE ACCESSIBLE TO THE PUBLIC IN COMPLIANCE
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WITH THE DATA PRIVACY ACT. IT SHALL FINALIZE THE DATA
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COLLECTION, INTEGRATION, AND PROCESSING STANDARDS
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THAT WILL BE SHARED WITH AND USED BY THE LGUS.
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THE DILG, IN COORDINATION WITH THE PSA, SHALL BE IN
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CHARGE OF PROVIDING CAPACITY BUILDING AND TRAINING
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SESSIONS FOR LGUS IN VIEW OF FULFILLING THEIR
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RESPONSIBILITIES UNDER THIS MEASURE.
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SEC 6. Section 7 of Republic Act No. 11292 is hereby amended to read as
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follows:
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SEC. 7. Criteria. - For the purpose of this Act, [the areas in the
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criteria shall be understood and interpreted as follows] THERE WILL BE
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TWO CRITERIA CATEGORIES: (I) GOVERNANCE CRITERIA,
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WHICH FOCUSES ON PROCESSES AND INPUTS FOR
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STRENGTHENING LOCAL GOVERNANCE AND, (II) HUMAN
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DEVELOPMENT MERITOCRACY CRITERIA, WHICH FOCUSES ON
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GAUGING DEVELOPMENT OUTCOMES THAT AN LGU IS EXPECTED
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TO ACHIEVE. The [areas] DIMENSIONS in [tbe} EACH criteria
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CATEGORY shall be understood and interpreted as follows:
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I. GOVERNANCE CRITERIA


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(a) Good Fiscal or Financial Administration or Financial Sustainability - 
This refers to the condition where an LGU demonstrates positive and 
stable economic performance, and maintains, preserves and mandatorily 
upholds the practice of fiscal discipline, accountability and transparency 
by adhering to budgetary rules, public financial management, generally 
accepted and recognized accounting and auditing standards and full 
disclosure policy. Indicators shall include: (1) the issuance of an 
unqualified or qualified opinion on the financial statements of an LGU by 
the Commission on Audit (COA) in the immediately preceding year; (2) 
full, strict, and exacting compliance with the Full Disclosure Policy (FDP) 
of local budget and finances, bids and public offerings; and (3) posting of 
financial documents required to be posted in the FDP portal in the iocai 
government's website.
(b) Disaster Preparedness - This refers to an LGU's preparedness for 
any disaster or natural or man-made calamity, by adopting relevant plans, 
taking proactive actions, and building its capacity to respond effectively to 
emergencies when needed. Indicators shall include: (1) having structures, 
plans and systems in place for disaster preparedness; (2) availability of a 
Provincial Development and Physical Framework Plan/Comprehensive 
Land Use Plan, Disaster Risk Reduction and Management (DRRM) Plan, 
Contingency Plan, and Local Climate Change Action Pian; (3) availability 
of working early warning and evacuation alert systems, evacuation 
centers, standard operating procedures in the event of disaster or 
calamity, emergency transportation facilities, relief operation equipment 
and tools, medical services, registration and security; and (4) being an 
awardee of the National Gawad KALASAG for Best Local Disaster Risk 
Reduction and Management Council.
(c) Social Protection and Sensitivity Program - This refers to an LGU's 
sensitivity and responsiveness to the needs of its constituents, recognizing 
and upholding the rights and privileges particularly those belonging to the 
vulnerable or disadvantaged sectors, such as, but not iimited to, women.


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children, indigenous people, elderly, persons with disability (PWD), and 
informal settlers. Indicators shall include: (1) providing access to justice, 
particularly in cases of violence against women and children; (2) providing 
access for PWDs, senior citizens and pregnant women in frontline 
services; (3) enhancing mobility for PWDs in public infrastructure like local 
government center and hospitals in accordance with the Accessibility Law; 
(4) mandatory representation of indigenous people in compliance with the 
Indigenous Peoples Rights Act of 1997; (5) compliance with the 
mandatory representation in the sanggunian with representative accorded 
with regular privileges and emoluments of a sanggunian member; (6) 
presence of at least one (1) accredited LGU-managed residential care 
facility for the vulnerable sectors; and (7) representation from NGOs in 
the local development council and other special bodies consistent with the 
pertinent provisions of the Local Government Code.
(d) Health Compliance and Responsiveness - This refers to the LGU's 
capability to effectively implement and deliver health services and 
information systems as well as pursue evidenced-based health promotion 
and protection policies scientifically proven and accepted to advance 
population health and individual well-being, reduce the prevalence of non- 
communicable diseases and its risk factors, lower the incidence of new 
infectious diseases, address mental health issues and improve health 
status throughout the life course. Indicators shall include: (1) ensuring 
access to nutritious, safe and affordable food; (2) regularly conducting 
physical activities in communities and schools; (3) strict enforcement of 
laws and ordinances that regulate tobacco sale and use, harmful alcohol 
consumption, and use of illicit drugs; (4) providing access to safe water 
and sanitation; (5) implementing immunization programs; (6) ensuring 
access to primary health care including prevention programs for 
hypertension, diabetes and cancer; and (7) establishing local surveillance 
and epidemiology systems to monitor health service delivery.


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(e) Programs for Sustainable Education - This refers to the initiatives of 
an LGU to institute education reforms and programs, provide equal access 
to quality education, promote lifelong learning opportunities for all, foster 
sports development and instill leadership and patriotism among the youth, 
as demonstrated by positive changes in the behavior and performance of 
individual citizens and the community as a whole. Indicators shall include 
positive results produced by Local School Board Policies and Programs, 
such as: (1) increased participation rate of students; (2) decreased 
number of drop-outs as well as out-of-school youths; (3) increase in 
cohort survival rates; (4) increase in achievement scores as measured by 
the national tests or assessment tools; and (5) establishment of child 
development centers, support to special education and the alternative 
learning system and parent effectiveness service program.
(f) Business Friendliness and Competitiveness - This refers to an LCD's 
unconventional initiative in encouraging local investment, together with 
local business enterprises and the working sector, through the adoption of 
policies, programs, systems, structures and/or local legislation that attract 
and create investment opportunities, and promote a business climate 
conducive to sustainable business growth. Indicators shall include: (1) 
adoption of simplified business processing and licensing system; (2) 
tracking of economic data of the locality and the sharing of the same with 
investors; (3) designation of a local economic investment promotion 
officer or its equivalent; (4) existence of an updated Citizen's Charter; (5) 
adoption and maintenance of an updated Local Investment Incentive 
Code; and (6) good performance in business promotion as shown by the 
result of Business Friendliness or Competitiveness Assessment by the 
Philippine Chamber of Commerce and Industry or the National 
Competitiveness Council.
(g) Safety, Peace and Order - This refers to a condition where an LGU 
establishes good and respectable performance in terms of maintaining 
peace and order in the community as demonstrated by reduced crime


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rate, effective anti-illegal drugs campaign, and efficient traffic 
management, among others, through the implementation of activities, 
programs and policies, and the appropriate provision of support 
mechanisms to ensure the safety and protection of its constituencies from 
injuries and unnecessary threats to life, security and property. Indicators 
shall include: (1) adopting a Local Anti-Criminality Action Plan or Peace 
and Order and Public Safety Plan; (2) providing logistical or financial 
support to the local police; (3) convening regularly the local Peace and 
Order Council; (4) establishing a functional local Anti-Drug Abuse Council; 
and (5) establishing and implementing a community-oriented policing 
mechanism.
(h) Environmental Management - This refers to an LCD's initiative to 
institute policies and programs that consistently and significantly 
preserves and protects the integrity of the environment with primary 
focus on solid waste management and ecological balance, as well as 
mitigation and adaptation to climate change. Indicators shall include: (1) 
advancing local policy and programs of action on Environmental Impact 
Assessment; (2) promoting social awareness and social responsibility 
programs; (3) managing and maintaining ecological balance within their 
territorial jurisdiction; (4) complying with at least the minimum standards 
set by the provisions of the Ecological Solid Waste Management Act of 
2000; (5) establishing a material recovery-facility or an existing 
partnership with an entity with facilities that may be used for such 
purpose; (6) having access to a sanitary landfill or alternative technology;
(7) maintaining an organized local Solid Waste Management Board; and
(8) instituting policies, programs, systems, structures and/or local 
legislation in order to support and promote environmental protection in all 
levels of human transaction.
(i) Tourism, Heritage Development, Culture and Arts - This refers to an 
LCD's ability to promote and protect Philippine identity through local 
heritage and culture, or local legacy, in terms of preserving the cultural.


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historical and indigenous significance of the community, marketing the 
characteristics which the LGU is known or recognized for, and attracting 
foreign and local visitors and tourists to the locality. Indicators shall 
include: (1) the presence of a Local Tourism Officer or designated officer; 
(2) the establishment of a Tourist Information and Assistance Center; (3) 
the establishment of a tracking system of tourism data; (4) the presence 
of a local council for the promotion of culture and the arts; (5) the 
approval and implementation of a budget appropriated for the 
conservation and preservation of cultural property; and (6) existence of 
an updated cultural property inventory in the LGU.
(j) Youth Development - This refers to an LGU's ability to promote and 
establish adequate, effective, responsive and enabling mechanisms and 
support systems that will ensure the meaningful participation of the youth 
in local governance and nation-building. Indicators shall include: (1) 
adopting a local youth development program; (2) establishing a local 
youth development council; (3) providing a youth development office 
which shall be headed by a youth development officer; and (4) instituting 
policies, programs and systems in order to support and promote the vital 
role of youth in local governance.
II. HUMAN DEVELOPMENT MERITOCRACY CRITERIA
(A) 
HEALTH AND SOCIAL DIMENSION - THIS DIMENSION 
MEASURES THE OVERALL QUALITY OF HEALTH WITHIN A 
LOCALITY THROUGH THE LONGEVITY OF LIFE OF ITS 
CONSTITUENTS.
(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.
10


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(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 FOR THE HUMAN 
DEVELOPMENT MERITOCRACY CRITERIA, AS MAY BE 
NECESSARY AND APPROPRIATE FOR PURPOSES OF FASTER 
DATA COLLECTION AND PROCESSING. THESE INDICATORS 
SHALL BE UPDATED ANNUALLY BY THE COUNCIL AND SHARED 
WITH THE CONCERNED LGUS TO ENSURE THAT THE DATA 
EFFECTIVELY REFLECTS THE KEY DIMENSIONS OF THE HUMAN 
DEVELOPMENT MERITOCRACY CRITERIA.
The foregoing criteria may be expanded by the Council to align with 
the thrusts of the National Government and attune them with the 
changing times.
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SEC. 7. Two 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 to read as
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follows:
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SEC. 7-A. DATA COLLECTION. - LGUS MAY BE DESIGNATED
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AS THE PRIMARY DATA COLLECTOR WITHIN THEIR RESPECTIVE
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LOCALITIES. FOR THIS PURPOSES, LGUS MAY OPT TO HIRE THE
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NECESSARY PERSONNEL. THE NUMBER AND POSITIONS OF
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WHICH SHALL BE DETERMINED BY THE COUNCIL THROUGH THE
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REVISED IMPLEMENTING RULES AND REGULATIONS (RIRR) TO
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BE ISSUED THEREFOR.
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CONSISTENT WITH SECTION 7 OF THIS ACT, DATA THAT
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MAY BE ACCESSED WITHOUT THE NEED FOR PRIMARY DATA
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GATHERING METHODOLOGIES AS DESCRIBED ABOVE SHALL BE
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PRIORITIZED.
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SEC. 7-B. FREQUENCY OF DATA COLLECTION. - FOR THE
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HUMAN DEVELOPMENT MERITOCRACY CRITERIA UNDER
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SECTION 7 OF THIS ACT, REGULAR AND SYNCHRONIZED DATA
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COLLECTION SHALL BE CONDUCTED BY LGUS ANNUALLY OR ON
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SHORTER PERIODS BASED ON THE LATEST AVAILABILITY OF
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IDENTIFIED INDICATORS. IN THE CONDUCT OF DATA
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COLLECTION, LGUS SHALL RECEIVE TECHNICAL ASSISTANCE
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FROM THE APPROPRIATE NATIONAL GOVERNMENT AGENCIES,
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AS NEEDED. COROLLARY TO THEIR DATA COLLECTIONS, LGUS
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SHALL, TO THE EXTENT POSSIBLE, MONITOR THE HUMAN
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DEVELOPMENT 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 Qualify for SGLG. - An LGU, which, according
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to the assessment of the DILG, complies, qualifies, and passes all
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assessment criteria as provided in Section 7 of this Act, AND
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APPROVED BY THE COUNCIL, shall be conferred and awarded the
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SGLG and granted the corresponding RECOGNITION, AWARDS AND
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MONETARY incentive as provided under Section 11 of this Act. IN
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ASSESSING AN LGU'S QUALIFICATION FOR THE SGLG,
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GREATER CONSIDERATION SHALL BE GIVEN TO THE
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COMPLIANCE WITH THE HUMAN DEVELOPMENT MERITOCRACY
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CRITERIA, SUBJECT TO GUIDELINES TO BE ISSUED BY THE
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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. - There is hereby created a
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special account under the General Appropriations Act (GAA) called the
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"SGLG Fund". The Fund shall be utilized only to pay out the incentives
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granted to LGUs which qualify for the SGLG.
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The Council established under Section 4 of this Act shall have the
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authority to determine the monetary incentives for LGUs based on the
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number of awardees. It shall also have the authority to re-evaluate and
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increase the amount of SGLG incentive to be awarded to
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LGUs; Provided, That, the increase shall be subject to the sufficiency of
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the Fund at the time the increment is implemented.
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RECOGNITION OF LGUS FOR THE SGLG MAY BE CONDUCTED
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ANNUALLY, BI-AN NUALLY OR QUARTERLY AS MAY BE
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DETERMINED BY THE COUNCIL.
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LGUS EXPERIENCING PERSISTENT AND UNJUSTIFIABLE
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DECLINES IN THE INDICATORS TO BE IDENTIFIED UNDER THE
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HUMAN DEVELOPMENT MERITOCRACY CRITERIA MAY BE
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DISINCENTIVISED: PROVIDED, THAT, EXTERNAL SHOCKS, SUCH
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AS NATURAL CALAMITIES, PANDEMICS, OR UNFORESEEABLE
28 
EVENTS BEYOND THE CONTROL OF THE LGUS SHALL BE
29 
CONSIDERED AS JUSTIFIABLE CAUSES.
30 
SEC. 10. Section 12 of Republic Act No. 11292 is hereby amended to read as
31 
follows:
13


1 
SEC. 12. Utilization and Limitations on Expenditures of the
2 
Incentives Under the SGLG Fund. - The use of the incentives paid out of
3 
the SGLG Fund shall be governed by the policies governing the utilization
4 
of the twenty percent (20%) of the annual [Internal Revenue Allotment
5 
(iRA)] NATIONAL TAX ALLOTMENT (NTA) for local development
6 
projects, the Annual Investment Program (AIP) and the Local
7 
Development Investment Program (LDIP).
8 
The MONETARY incentives paid out of the SGLG Fund shall not be
9 
used for any of the following:
10 
(a) X X x;"
11 
XX X."
12 
SEC. 11. Section 14 of Republic Act No. 11292 is hereby amended to read as
13 
follows:
14 
SEC. 14. Management and Administration of the SGLG Fund. - The
15 
SGLG Fund established under Section 11 of this Act shall be managed and
16 
administered by the DILG with the supervision of the Council.
17 
Appropriation to replenish the amount paid out from the Fund during the
18 
year and/or to augment the Fund shall be proposed by and ANNUALLY
19 
included in the budget of the DILG under the GAA.
20 
SEC. 12. Section 15 of Republic Act No. 11292 is hereby amended to read as
21 
follows:
22 
SEC. 15. Guarantee of Local Government Autonomy. - The LOCAL
23 
autonomy AND FISCAL DECENTRALIZATION of LGUs shall be
24 
respected at all times. Nothing in this Act shall be interpreted as limiting
25 
the autonomy of LGUs to establish policies and pursue programs and
26 
projects designed not only to qualify for the SGLG award but also to
27 
ensure the enjoyment of their constituency the right to life, liberty,
28 
property, health, education, balanced and healthful ecology, among
29 
others, in the exercise of their POLICE power under the general welfare
30 
clause.
14


1 
SEC. 13. Section 16 of Republic Act No. 11292 is hereby amended to read as
2 
follows:
3 
SEC. 16. SGLG Operating Fund. - The activities and operational
4 
expenses, other than the incentive payouts, related to the implementation
5 
of this Act shall be initially funded from the DILG's Performance Challenge
6 
Fund. Thereafter, the DILG shall include 
in its annual budget to be
7 
incorporated in the GAA, the item for the 
SGLG operating fund in the
8 
amount equivalent to NOT LESS THAN 
FIVE [two] percent [(2%)]
9 
(5%) of the SGLG Fund.
10 
SEC 14. Data Privacy. - This data collection system shall respect the
11 
fundamental human right of privacy, ensure data quality, and uphold data protection
12 
principles of legitimate purpose, transparency, and proportionality.
13 
SEC 15. Impiementing Rules and Regulations. - Within ninety (90) days from
14 
the effectivity of this Act, the members of the Council led by the DILG and the PSA,
15 
in coordination with the Union of Local Authorities of the Philippines (ULAP) and the
16 
Leagues of LGUs and local officials, shall promulgate the implementing rules and
17 
regulations necessary for the effective implementation of this Act.
18 
SEC 16. Separability Clause. - If any provision or part of this Act is held
19 
unconstitutional or invalid, the remaining parts or provisions not affected shall
20 
remain in full force and effect.
21 
SEC 17. Repealing Clause. - Any law, presidential decree, executive order,
22 
letter of instruction, administrative order, rule or regulation contrary to or
23 
inconsistent with the provisions of this Act is hereby repealed, modified, or amended
24 
accordingly.
25 
SEC 18. Effectivity. - This Act shall take effect fifteen (15) days after its
26 
publication in the Official Gazette or in a newspaper of general circulation.
Approved,
15