An Act Establishing and Institutionalizing the Seal of Good Local Governance for Local Government Units, and Allocating for This Purpose the Seal of Good Local Governance Fund

Seventeenth Congress
Third Regular Session

Begun and held in Metro Manila, on Monday, the twenty-third day of July, two thousand eighteen.

REPUBLIC ACT No. 11292

An Act Establishing and Institutionalizing the Seal of Good Local Governance for Local Government Units, and Allocating for This Purpose the Seal of Good Local Governance Fund

Be it enacted by the Senate and House of Representatives of the Philippine Congress Assembled:

Section 1. Short Title. -This Act shall be known as "The Seal of Good Local Governance Act of 2019".

Section 2. Declaration of Policy. -It is hereby declared the policy of the State to recognize the good performance of local government units (LGUs) in transparency and accountability in the use of public funds, preparedness for challenges posed by disasters, sensitivity to the needs of vulnerable and marginalized sectors of society, implementation of health programs, investment and employment promotion, protection of constituency from threats to life and damage to property, and safeguarding the integrity of the environment. In such recognition, the State hopes to encourage all LGUs to take on greater challenges, encourage outcome-based performance and to reward local governments for their effort in pursuing the general welfare of their constituency and in enforcing existing laws.

Section 3. The Seal of Good Local Governance. -The Seal of Good Local Governance (SGLG) is an award, incentive, honor and recognition-based program for all LGUs and is a continuing commitment for LGUs to continually progress and improve their performance in the following areas by:

Section 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:

The Secretary of the DILG shall act as Chairperson of the Council. The appropriate office of the DILG, as the latter may designate, shall serve as the Secretariat of the Council.

Section 5. Powers and Functions of the Council. -The Council shall act as policy-making and advisory body to ensure the proper implementation of the SGLG. It shall perform the following powers and functions:

Section 6. Implementing Agency. -The DILG shall be the implementing agency of this Act. It shall, through its relevant bureaus and offices, and in consultation and coordination with partner agencies or sectors, be responsible for the assessment and evaluation of each LGU relative to its compliance with the criteria, and recommend to the Council whether an LGU qualifies to be conferred or awarded the SGLG.

The DILG shall call on any other concerned agencies, civil society organizations (CSOs), or sectors, as it may deem necessary, to assist in carrying out its responsibilities under this Act.

Section 7. Criteria.— For the purpose of this Act, the areas in the criteria shall be understood and interpreted as follows:

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.

Section 8. Requisites to Qualify for SGLG. -An LGU, which, according to the assessment of the DILG, complies, qualifies, and passes all assessment criteria as provided in Section 7 of this Act, shall be conferred and awarded the SGLG and granted the corresponding incentive as provided under Section 11 of this Act.

Section 9. Rules of Interpretation. -In order to ensure and preserve the prestige of the SGLG, in the interpretation of the provisions of this Act, all definitions of the criteria and all rules and regulations issued pursuant to this Act shall be strictly construed against the LGUs. It shall be the burden of an LGU to show that it qualifies for the SGLG.

Section 10. Implementing Rules and Regulations. -The Council shall formulate and promulgate the rules and regulations to implement the provisions of this Act within ninety (90) days from the effectivity thereof.

Section 11. The SGLG Incentive Fund. -There is hereby created a special account under the General Appropriations Act (GAA) called the "SGLG Fund". The Fund shall be utilized only to pay out the incentives granted to LGUs which qualify for the SGLG.

The Council established under Section 4 of this Act shall have the authority to determine the monetary incentives for LGUs based on the number of awardees. It shall also have the authority to re-evaluate and increase the amount of SGLG incentive to be awarded to LGUs: Provided, That, the increase shall be subject to the sufficiency of the Fund at the time the increment is implemented.

Section 12. Utilization and Limitations on Expenditures of the Incentives Under the SGLG Fund. -The use of 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 Internal Revenue Allotment (IRA) for local development projects, the Annual Investment Program (AIP) and the Local Development Investment Program (LDIP).

The incentives paid out of the SGLG Fund shall not be used for any of the following:

Section 13. Technical Assistance for Capa city-Building. -The DILG shall release the governance assessment report which shall, in part, identify the local governance gaps to the respective LGUs. The national government agencies concerned shall provide technical assistance for capacity-building on identified gaps of LGUs which have not qualified for the SGLG award.

Section 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 included in the budget of the DILG under the GAA.

Section 15. Guarantee of Local Government Autonomy. -The autonomy 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 power under the general welfare clause.

Section 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 two percent (2%) of the SGLG Fund.

Section 17. Separability Clause. -Should any part or provision of this Act be held unconstitutional or invalid, all other provisions hereof which are not affected thereby shall continue to be in full force and effect.

Section 18. Repealing Clause. -All laws, presidential decrees, executive orders, rules and regulations or parts thereof which are inconsistent with the provisions of this Act are hereby repealed or modified accordingly.

Section 19. Effectivity. -This Act shall take effect after fifteen (15) days following its complete publication in the Official Gazette or in a newspaper of general circulation whichever is earlier.

Approved,

(Sgd) GLORIA MACAPAGAL-ARROYO
Speaker of the House of Representatives

(Sgd) VICENTE C. SOTTO, III
President of the Senate

This Act which is a consolidation of Senate Bill No. 1843 and House Bill No. 8719 was passed by the Senate of the Philippines and the House of Representatives on February 4, 2019 and February 6, 2019, respectively.

(Sgd) DANTE ROBERTO P. MALING

Acting Secretary General
House of Representatives

(Sgd) MYRA MARIE D. VILLARICA
Secretary of the Senate

(Sgd) RODRIGO ROA DUTERTE
President of the Philippines

Approved: April 12, 2019.