Amending R.A. No. 11292, the Seal of Good Local Governance Act

5500116 „Allite of thir 4 TWENTIETH CONGRESS OF THE ) REPUBLIC OF THE PHILIPPINES ) First Regular Session ) 26 FEB 12 PZ:19 SENATE RECEIVED BY. S. No. 1850 Introduced by Senator Loren Legarda AN ACT ESTABLISHING AND INSTITUTIONALIZING A PERFORMANCE MEASUREMENT SYSTEM TO PROMOTE A CULTURE OF MERITOCRACY IN GOVERNMENT, AMENDING CERTAIN PROVISIONS OF REPUBLIC ACT NO. 11292, OTHERWISE KNOWN A S "THE SEAL OF GOOD LOCAL GOVERNANCE ACT OF 2019" EXPLANATORY NOTE Good governance is the foundation of a functioning democracy. It is the system that determines whether our people experience dignity or frustration, security or vulnerability, progress or stagnation. Over the years, the Seal of Good Local Governance (SGLG) has helped strengthen this foundation by promoting transparency, fiscal integrity, disaster preparedness, social protection, environmental stewardship, and public safety across local governments. However, evidence from nearly a decade of implementation shows that the SGLG has evolved into a complex, layered policy instrument whose indicators have grown in number and scope. While these expansions reflected changing national priorities, they also created inconsistencies, heavier compliance burdens, and declining pass rates, particularly for smaller and resource-constrained LGUs. Studies on SGLG implementation highlight that LGUs struggle not because of weaker performance, but because yearly adjustments to indicators, varying technical requirements, fragmented data systems, and limited institutional capacity make compliance unpredictable. Moreover, several indicators became activity-based rather than outcome-focused,

reducing their effectiveness in capturing genuine improvements in governance and community wellbeing. These challenges underscore the need to strengthen, streamline, and modernize the framework established under Republic Act No. 11292. The Public Governance Meritocracy Act responds to these findings. It transforms the SGLG into a unified, outcome-based performance measurement system anchored on the core dimensions of human development: health, education, economic standards of living, peace and order, and consumer price affordability. By requiring empirically verifiable indicators aligned with national and international statistical standards, the measure corrects the "performance paradox" identified in the SGLG, ensuring that assessments reflect actual outcomes rather than procedural compliance. LGUs will now be evaluated against their own historical performance, acknowledging variations in context while promoting measurable progress over time. The bill strengthens the relationship between governance performance and incentives. Well-performing LGUs will be supported through the Performance Challenge Fund, while those facing constraints will receive targeted guidance, training, and institutional support. This shift directly addresses concerns raised in research that LGUs often receive ratings without meaningful feedback or assistance in addressing the structural gaps that prevent compliance. Institutional coordination is similarly enhanced. By expanding the Council of Good Governance to include the PSA, COA, DICT, CSC, and other agencies involved in planning, statistics, audit, digital systems, and service delivery, the bill ensures that national and local expectations operate under a coherent, mutually reinforcing governance architecture. NGAs are likewise brought under the performance system, addressing long-standing misalignments between national mandates and local responsibilities. The measure also institutionalizes a synchronized and technology-enabled data collection system, enabling LGUs to monitor development outcomes more effectively and use evidence to guide local decision-making. This responds directly to study

findings pointing to uneven data capacity as a major barrier to compliance and performance improvement. Ultimately, this bill affirms the critical role of local governments as first responders, service deliverers, and guardians of community welfare. By modernizing the SGLG into a rational, evidence-based, and supportive governance framework, the measure strengthens democratic accountability and equips every LGU-regardless of size or income class-to progress toward measurable and meaningful development outcomes. In view of the foregoing, the immediate passage of this bill is earnestly sought. LOREN LEGARDA

Silice of this TWENTIETH CONGRESS OF THE REPUBLIC OF THE PHILIPPINES First Regular Session ) FEB 12 P2:19 SENATE RECEIVED BY 1850 S. No._ Introduced by Senator Loren Legarda AN ACT ESTABLISHING AND INSTITUTIONALIZING A PERFORMANCE MEASUREMENT SYSTEM TO PROMOTE A CULTURE OF MERITOCRACY IN GOVERNMENT, AMENDING CERTAIN PROVISIONS OF REPUBLIC ACT NO. 11292, OTHERWISE KNOWN A S "THE SEAL O F GOOD LOCAL GOVERNANCE ACT OF 2019" Be it enacted by the Senate and House of Representatives of the Philippines in the Congress assembled:

Section 1. Short Title - This Act shall be known as the "Public Governance

Meritocracy Act."

Sec. 2. Declaration of Policy - Section 2 of Republic Act No. 11292, otherwise

S known as "The Seal of Good Local Governance Act of 2019," is hereby amended to 6 read as follows: "SEC. 2. Declaration of Policy. - It is hereby declared the policy of the State to recognize the good performance of local government units (LGUs) AND NATIONAL GOVERNMENT AGENCIES (NGAs) 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 AND NGAs to take on greater challenges, encourage outcome- based performance, and to reward THEM local governments for their S effort in pursuing the POLICIES THAT PROMOTE the general welfare of their constituency OR STAKEHOLDERS RELEVANT TO THEIR RESPECTIVE MANDATES and in enforcing existing laws." THE STATE LIKEWISE STRICTLY ADHERES TO THE PRINCIPLE OF ACCOUNTABILITY OF PUBLIC OFFICERS, AS ENSHRINED IN

SECTION 1, ARTICLE XI OF THE 1987 CONSTITUTION, WHICH

PROVIDES THAT 'PUBLIC OFFICE IS A PUBLIC TRUST. PUBLIC OFFICERS AND EMPLOYEES MUST, AT ALL TIMES, BE ACCOUNTABLE TO THE PEOPLE, SERVE THEM WITH UTMOST RESPONSIBILITY, INTEGRITY, LOYALTY, AND EFFICIENCY; ACT WITH PATRIOTISM AND JUSTICE, AND LEAD MODEST LIVES.' TO THIS END, A UNIFIED, PRACTICAL, AND TIMELY PERFORMANCE MEASUREMENT TOOL SHALL BE INSTITUTIONALIZED TO GAUGE THE EFFECTIVENESS OF LGUS AND NGAS IN ACHIEVING DEVELOPMENT OUTCOMES IN THE AREAS OF HEALTH, EDUCATION, ECONOMIC STANDARDS OF LIVING, PEACE AND ORDER, AND CONSUMER PRICE AFFORDABILITY. LGUS UNDER THIS ACT SHALL INCLUDE PROVINCES, CITIES, MUNICIPALITIES, AND BARANGAYS. THESE OUTCOMES SHALL BE MEASURED IN CONTEXT OF LOCAL CONDITIONS AND HISTORICAL PERFORMANCE OF NGAS AND LGUs."

Sec. 3. Section 3 of the same Act is hereby amended to read as follows:

"SEG. 3. The Seal of Good Local Governance. The Seal of Good Local Governance (SGLG) is an award, incentive, honer 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: (a) Upholding the practice of transpareney and accountability in the use of public funds; (b) Preparing for challenges brought about by unpredictable natural calamities; (c) Demonstrating the readiness to help and sensitivity to the needs of vulnerable and marginalized sectors of society; (d) Setting-up, implementing and sustaining health policies and programs that would strengthen and promote the well being, healthy lifestyle and safety of the public, ensuring that all individuals especially the vulnerable have fair opportunities for better health; (e) Instituting education reforms and programs to improve the quality of education in the country; (f) Encouraging pro competitive policies and government interventions that promote market efficiency and consumer welfare; (g) Protecting constituents from threats to life and damage te property; (h) Safeguarding and preserving the integrity of the envirenment through adaptive social responsibility; and (i) Conserving local culture and heritage and fostering their value and significance for tourism opportunity]."

SEC 3. - THE PUBLIC GOVERNANCE MERITOCRACY SEAL

(PGMS) - THE PGMS IS AN OUTCOME-BASED AWARD AND RECOGNITION PROGRAM FOR LGUS AND NGAS. LGUS AND NGAS SHALL BE ASSESSED USING EMPIRICALLY VERIFIABLE METRICS AS STIPULATED UNDER SECTION 7 OF THIS ACT."

Sec. 4. Section 4 of the same Act is hereby amended to read as follows:

"SEC. 4. The Council of Good PUBLIC Local Governance. - There is hereby established a Council of Good PUBLIC 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 Health (DOH); (e) Department of Social Welfare and Development (DSWD); (f) Department of Education (DepEd); (g) Department of Tourism (DOT); (h) Department of Environment and Natural Resources (DENR); (i) National Economic and Development Authority (NEDA) DEPARTMENT OF PLANNING, ECONOMY, AND DEVELOPMENT (DEPDEV): () Office of Civil Defense; and (k) One (1) representative from the basic sectors to be nominated by the National Anti Poverty Commission (NAPC) COMMISSION ON HIGHER EDUCATION (CHED); (I) PHILIPPINE STATISTICS AUTHORITY (PSA); (m) PHILIPPINE NATIONAL POLICE (PNP); (n) DEPARTMENT OF INFORMATION AND COMMUNICATIONS TECHNOLOGY (DICT); (o) COMMISSION ON AUDIT (COA);

(P) CIVIL SERVICE COMMISSION (CSC); (q) NATIONAL PRIVACY COMMISSION (NPC); (r) ANTI-RED TAPE AUTHORITY (ARTA); (s) 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 SECRETARY OF DEPDEV AS CO-CHAIRPERSON. The appropriate offices of the DILG AND THE DEPDEV, as the latter THEY may JOINTLY designate, shall serve as the Secretariat of the Council. THE PSA, IN ACCORDANCE WITH ITS MANDATE, SHALL PROVIDE FULL ASSISTANCE TO THE COUNCIL AND AS MAY BE DETERMINED OR INSTRUCTED BY EITHER OR BOTH CHAIRPERSONS. FOR PURPOSES OF THE DETERMINATION OF THE GRANTING OF THE PGMS, THERE SHALL BE FIVE (5) COMMITTEES TO BE FORMED WITHIN THE COUNCIL TO CORRESPOND WITH EACH OF THE DIMENSIONS OF HUMAN DEVELOPMENT MERITOCRACY CRITERIA AS ENUMERATED UNDER SECTION 7 HEREOF, AS FOLLOWS: 1. COMMITTEE ON HEALTH - TO BE CHAIRED BY THE SECRETARY OF THE DOH AND SUPPORTED BY THE SOCIAL DEVELOPMENT COMMITTEE OF THE REGIONAL DEVELOPMENT COUNCILS AND LOCAL HEALTH BOARDS; 2. COMMITTEE ON EDUCATION - TO BE CHAIRED BY THE SECRETARY OF THE DEPED, CO-CHAIRED BY THE CHAIRPERSON OF THE CHED, AND SUPPORTED BY THE

SOCIAL DEVELOPMENT COMMITTEE OF THE REGIONAL DEVELOPMENT COUNCILS AND THE LOCAL SCHOOL BOARDS; 3. COMMITTEE ON PEACE AND ORDER AND PUBLIC SAFETY - TO BE CHAIRED BY THE SECRETARY OF THE DILG AND SUPPORTED BY THE NATIONAL PEACE AND ORDER COUNCIL AND THE PEACE AND ORDER COUNCILS AT THE REGIONAL AND LOCAL LEVELS; 4. COMMITTEE ON ECONOMIC STANDARDS OF LIVING - TO BE CHAIRED BY THE DEPDEV AND SUPPORTED BY THE REGIONAL AND LOCAL DEVELOPMENT COUNCILS; AND 5. COMMITTEE ON CONSUMER PRICE AFFORDABILITY - TO BE CHAIRED BY THE DEPDEV AND SUPPORTED BY THE REGIONAL AND LOCAL DEVELOPMENT COUNCILS. THE COUNCIL SHALL DESIGNATE EACH COUNCIL MEMBER TO BE PART OF THE APPROPRIATE COMMITTEE TO COINCIDE WITH ITS OFFICIAL MANDATE OR FUNCTION."

Sec. 5. Section 5 of the same Act is hereby amended to read as follows:

"SEC. 5. Powers and Functions of the Council. - The Council shall act as A policy-making and advisory body to ensure the proper implementation of THIS ACT the SGLG. It shall perform the following powers and functions: (a) Develop and promulgate the performance indicators that shall serve as standards for evaluating the LGUs AND NGAS'

compliance and/or AND satisfaction of WITH each of the criteria prescribed under Section 7 of this Act. Provided, That the Council shall designate each Council member to lead the development of performance indicators his/her THE 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 IN ALL CASES, THE COUNCIL SHALL CONSIDER THE INDIVIDUAL PERFORMANCE OF EACH NGA AND EACH LEVEL OF LGU VIS-À-VIS THEIR 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) Review and/or OR revise the performance indicators consistent with the long-term development plans of the National Government. The development IDENTIFICATION of indicators should reflect DEVELOPMENT outcomes that are performance- based, encouraging outputs that reflect concrete benefits to the community in terms of policy, rules, regulations, behavior, skill competencies, knowledge, or attitude; (c) Conduct an IMPACT evaluation of the impact of this Act on the performance of the LGUs AND NGAs for purposes of determining the need for enhancing or continuing THIS ACT the SGLG,

rolling out the SGLG in barangays AND NATIONAL GOVERNMENT AGENCIES and recommending any amendatory legislation. For this purpose, the Council shall institute an effective feedback mechanism where the concerns of LGUs, NGAs and other stakeholders on the implementation of the SGLG PGMS 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, 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) Submit to the President of the Philippines, the President of the Senate, and the Speaker of the House of Representatives, on an annual basis, copies of the performance indicators approved by the Council together with the performance indicators developed and recommended by the lead Council member, and the result of the impact assessment conducted pursuant to paragraph (c) of this section; and (f) BE IN CHARGE OF DATA COLLECTION, INTEGRATION, AND PROCESSING STANDARDS FOR THIS MEASURE AND SUPPORT THE LGUS AND NGAS BY PROVIDING ANY DATA THEY NEED TO REGULARLY UPDATE THEIR DIMENSIONS UNDER THE HUMAN DEVELOPMENT MERITOCRACY CRITERIA; AND

(g) Perform such other functions as are necessary or incidental to properly carry out the purposes of this Act."

Sec. 6. Section 6 of the same Act is hereby amended to read as follows:

Sec. 6. Implementing Agency AGENCIES. - The DILG AND THE

DEPDEV shall be the JOINT implementing agency AGENCIES of this Act. It THEY shall, through its THEIR relevant bureaus and offices, and in consultation and coordination with OTHER MEMBERS OF THE COUNCIL, partner agencies or sectors, RESPECTIVE LEAGUES OF LGUS AND LOCAL OFFICIALS, AND CONCERNED LGUs, be responsible for the assessment and evaluation of each LGU AND NGA relative to its compliance with the criteria, and SHALL recommend to the Council whether an LGU OR NGA qualifies to be conferred or awarded the PGMS. OR OTHER APPROPRIATE ACTION AS MAY BE ALLOWED IN THIS ACT, SUCH AS: (a) THE DILG AND DEPDEV MAY, INDIVIDUALLY OR JOINTLY, CALL ON ANY CONCERNED AGENCY AND INSTRUMENTALITY, LGU LEAGUE, CSO, SECTOR, OR OTHER BODIES, AS THEY MAY DEEM NECESSARY, TO ASSIST IN CARRYING OUT THEIR RESPONSIBILITIES UNDER THIS ACT. (b) THE PSA SHALL SERVE AS THE PRIMARY DATA CUSTODIAN AT THE NATIONAL LEVEL. IT SHALL BE IN CHARGE OF SETTING UP A DIGITAL DATA REPOSITORY THAT SHALL BE ACCESSIBLE TO THE PUBLIC IN COMPLIANCE WITH THE DATA PRIVACY ACT WITH THE TECHNICAL ASSISTANCE OF THE DICT.

(c) THE DILG SHALL, RECOGNIZE WELL-PERFORMING LGUS AND GRANT FINANCIAL INCENTIVES TO THE BEST- PERFORMING LGUS OR ENFORCE THE APPROPRIATE MEASURES, AS PROVIDED IN THIS ACT: PROVIDED, THAT IT CONFORMS TO THE PRINCIPLE OF SUBSIDIARITY AS GUARANTEED UNDER SEC. 4, ARTICLE X OF THE 1987 CONSTITUTION. (d) THE DEPDEV, IN COORDINATION WITH THE DBM AND CSC, SHALL, RECOGNIZE WELL-PERFORMING NGAS AND GRANT FINANCIAL INCENTIVES TO THE BEST- PERFORMING NGAS AS PROVIDED IN THIS ACT (e) THE PSA IN COORDINATION WITH THE DICT SHALL FINALIZE THE DATA COLLECTION, INTEGRATION, AND PROCESSING STANDARDS THE LGUS AND NGAS SHALL SHARE AND USE. THE DILG AND THE DEPDEV SHALL, WITH THE ASSISTANCE OF THE PSA, BE IN CHARGE OF PROVIDING CAPACITY-BUILDING AND TRAINING SESSIONS FOR LGUS IN VIEW OF FULFILLING THE LATTER'S RESPONSIBILITIES UNDER THIS ACT. The DILG AND THE DEPDEV shall call on any other concerned agencies, civil society organizations (CSOs), or THE PRIVATE sectors, as it may deem necessary, to assist in carrying out its responsibilities under this Act."

Sec. 7. Section 7 of the same Act is hereby amended to read as follows:

SEC. 7. Criteria. - For the purpose of this Act, TWO CRITERIA

CATEGORIES SHALL BE APPLIED ON DIFFERENT ASPECTS OF GOVERNANCE: (2) "HUMAN DEVELOPMENT MERITOCRACY CRITERIA" WHICH FOCUSES ON GAUGING DEVELOPMENT OUTCOMES THAT AN LGU OR NGA IS EXPECTED TO ACHIEVE. The areas DIMENSIONS in the EACH criteria CATEGORY shall be understood and interpreted as follows: (1) LOCAL GOVERNANCE CRITERIA (a) xxx (b) xxx (c) xxx (d) xxx (e) xxx (f) xxx (g) xxx (h) xxx (i) xxx 0) xxx"

(2) 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. INDICATORS FOR MEASUREMENT UNDER THIS DIMENSION MAY INCLUDE, BUT NOT LIMITED TO, THE REDUCTION IN COMMUNICABLE DISEASES, THE REDUCTION IN NON- COMMUNICABLE DISEASES, AND THE REDUCTION OF MATERNAL AND CHILD DEATHS. EDUCATION - THIS DIMENSION MEASURES THE (B) ACCESS OF A LOCALITY'S CONSTITUENTS TO QUALITY EDUCATION. INDICATORS FOR MEASUREMENT UNDER THIS DIMENSION MAY INCLUDE, BUT NOT LIMITED TO, THE INCREASE IN THE NUMERACY RATE, INCREASE IN THE LITERACY RATE, AND INCREASE IN COMPLETION RATE. (C) ECONOMIC STANDARDS OF LIVING - THIS DIMENSION MEASURES THE LEVEL OF INCOME OF CONSTITUENTS AND ECONOMIC OPPORTUNITIES WITHIN A LOCALITY. INDICATORS FOR MEASUREMENT UNDER THIS DIMENSION MAY INCLUDE, BUT NOT LIMITED TO, TOTAL HOUSEHOLD ELECTRICITY CONSUMPTION, AND PERCENTAGE OF POPULATION EMPLOYED. (D) PEACE AND ORDER AND PUBLIC SAFETY - THIS DIMENSION MEASURES THE PREVALENCE OF CRIMES

WITHIN A LOCALITY. INDICATORS FOR MEASUREMENT UNDER THIS DIMENSION MAY INCLUDE, BUT NOT LIMITED TO REDUCTION IN THE CRIME INDEX, AND REDUCTION OF ACCIDENTS. (E) CONSUMER PRICE AFFORDABILITY - THIS DIMENSION MEASURES THE AFFORDABILITY OF BASIC GOODS AND SERVICES WITHIN A LOCALITY. INDICATORS FOR MEASUREMENT UNDER THIS DIMENSION SHALL INCLUDE, BUT NOT LIMITED TO THE INFLATION RATE, THE CONSUMER PRICE INDEX, AND THE PRICES OF BASIC COMMODITIES. EACH DIMENSION UNDER THE HUMAN DEVELOPMENT MERITOCRACY CRITERIA SHALL BE MEASURED USING INDICATORS CITED ABOVE AND OTHER INDICATORS TO BE FORMULATED AND DETERMINED BY THE CONCERNED COMMITTEE AND APPROVED BY THE COUNCIL BASED ON ACCEPTABLE NATIONAL OR INTERNATIONAL STANDARDS. IN DETERMINING SUCH, THE COUNCIL SHALL PRIORITIZE INDICATORS THAT CAN BE GENERATED FROM NATIONAL 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 THE QUALIFICATIONS OF EACH LGU AND NGA AND ASSESS BASED ON THEIR RESPECTIVE HISTORICAL GROWTH OR PERFORMANCE SO THAT EACH LEVEL OF LGU AND NGA COMPETES AGAINST ITSELF AND NOT AS AGAINST OTHER LGUS OR NGAS.

FOR NGAS, THE MEASUREMENT AND TRACKING OF THEIR INDICATORS AND ASSESSMENT SHALL BE BASED SOLELY ON THE DIMENSIONS AND METRICS THAT CORRESPOND TO THEIR RESPECTIVE MANDATES AND AREAS OF RESPONSIBILITY. EACH AGENCY SHALL BE GAUGED ONLY WITHIN THE DIMENSION ALIGNED WITH ITS CORE FUNCTION IN ACCORDANCE WITH THE OBJECTIVES OF THIS ACT AS DETERMINED BY THE COUNCIL. 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 CONCERNED AGENCY AND SHARED WITH THE CONCERNED LGUS AND NGAS TO ENSURE THAT THE DATA EFFECTIVELY REFLECT THE KEY DIMENSIONS OF THE HUMAN DEVELOPMENT MERITOCRACY CRITERIA AS STIPULATED UNDER THIS ACT AND ARE MORE READILY TRANSPARENT AND ACCESSIBLE FOR EFFICIENT COLLECTION AND PROCESSING OF THE LGUS AND IMPLEMENTING AGENCIES. The foregoing criteria may be expanded by the Council to align with the thrusts of the National Government and attune them with TO the changing times."

Sec. 8. Two new sections denominated as Section 7-A and Section 7-B,

respectively, are inserted after Section 7 of the same Act to read as follows:

"SEC. 7-A. DATA COLLECTION. - LGUS AND NGAS SHALL COLLECT THE NECESSARY DATA NEEDED FOR THE IMPLEMENTATION OF THIS ACT. IN DOING SO, LGUS AND NGAS SHALL ENGAGE IN OPEN DATA SHARING AND OTHER NECESSARY COLLABORATIVE ARRANGEMENTS SUBJECT TO DATA PRIVACY LAWS AND REGULATIONS WHENEVER APPLICABLE. FOR PURPOSES OF THIS ACT, LGUS MAY OPT TO HIRE THE NECESSARY PERSONNEL, SUCH AS STATISTICIANS AND OTHERS, THE NUMBER AND POSITIONS OF WHICH SHALL BE DETERMINED BY THE COUNCIL THROUGH THE REVISED IMPLEMENTING RULES AND REGULATIONS TO BE ISSUED THEREFOR. FURTHER THE PSA SHALL CREATE ADDITIONAL POSITIONS FOR STATISTICIANS AT THE PROVINCIAL LEVEL TO MONITOR AND MANAGE ENUMERATION ACTIVITIES OF LGUS AND NGAS UNDER THEIR JURISDICTION. LGUS, NGAS, AND THE PSA MAY UTILIZE ARTIFICIAL INTELLIGENCE AND OTHER TECHNOLOGIES IN THE PERFORMANCE OF THEIR FUNCTIONS UNDER THIS ACT. CONSISTENT WITH SECTION 7 OF THIS ACT, DATA THAT MAY BE ACCESSED WITHOUT THE NEED FOR PRIMARY DATA- GATHERING METHODOLOGIES AS DESCRIBED ABOVE SHALL BE PRIORITIZED. "SEC. 7-B. PERIODICITY OF DATA COLLECTION. - FOR THE HUMAN DEVELOPMENT MERITOCRACY CRITERIA UNDER

SECTION 7 OF THIS ACT, REGULAR AND SYNCHRONIZED DATA

COLLECTION SHALL BE CONDUCTED BY LGUS AND NGAS QUARTERLY BASED ON THE LATEST AVAILABILITY OF IDENTIFIED INDICATORS OR ON SHORTER INTERVALS, S WHENEVER FEASIBLE. IN THE CONDUCT OF DATA COLLECTION, APPROPRIATE NGAS SHALL GIVE TECHNICAL ASSISTANCE.

Sec. 9. Section 8 of the same Act is hereby amended to read as follows:

"SEC. 8. Requisites to Qualify for SGLG PGMS. - 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, AND APPROVED BY THE COUNCIL, shall be conferred and awarded the SGLG PGMS and granted the corresponding RECOGNITION, AWARDS AND MONETARY incentiveS as provided under Section 11 of this Act. IN ASSESSING AN LGU'S QUALIFICATION FOR THE SGLG PGMS, GREATER CONSIDERATION SHALL BE GIVEN TO THE LOCAL GOVERNMENT'S COMPLIANCE WITH THE HUMAN DEVELOPMENT MERITOCRACY CRITERIA AS ENUMERATED UNDER SECTION 7 OF THIS ACT. SEVENTY PERCENT (70%) OF ANY NUMERICAL ASSESSMENT WEIGHT SHALL BE ASSIGNED TO THE HUMAN DEVELOPMENT MERITOCRACY CRITERIA WHILE THIRTY PERCENT (30%) SHALL BE FOR THE GOVERNANCE CRITERIA. FOR NGAS, ASSESSMENT SHALL BE BASED SOLELY ON THE HUMAN DEVELOPMENT MERITOCRACY CRITERIA THAT PERTAIN TO THEIR RESPECTIVE MANDATES AND FUNCTIONS AS DETERMINED BY THE COUNCIL."

Sec. 10. A new section to be denominated as Section 8-A is hereby inserted

after Section 8 of the same Act to read as follows: "SEC. 8-A. PERFORMANCE-BASED BONUS - THE STRATEGIC GOALS AND PERFORMANCE TARGETS OF ALL NATIONAL GOVERNMENT AGENCIES (NGAs) AND LOCAL GOVERNMENT UNITS (LGUs) SHALL BE ALIGNED WITH THE DIMENSIONS OF THE HUMAN DEVELOPMENT MERITOCRACY CRITERIA. EACH DEPARTMENT, OFFICE, OR DIVISION WITHIN AN NGA OR LGU SHALL, IN TURN, BE ASSESSED BASED ON ITS IDENTIFIED CONTRIBUTIONS TO THESE DIMENSIONS, WHICH SHALL SERVE AS THE BASIS FOR DETERMINING ELIGIBILITY AND RATES UNDER THE PERFORMANCE-BASED BONUS AND ASSESSMENT SYSTEM, CONSISTENT WITH THE STRATEGIC PERFORMANCE MANAGEMENT SYSTEM (SPMS) OF THE CIVIL SERVICE COMMISSION (CSC). A PERFORMANCE-BASED BONUS SYSTEM FOR BARANGAY OFFICIALS AND WORKERS SHALL ALSO BE DEVELOPED AND IMPLEMENTED BY THE DILG, DBM, AND CSC IN LINE WITH THE OBJECTIVES OF THIS ACT."

Sec. 11. Section 11 of the same Act is hereby amended to read as follows:

"SEC. 11. Fhe 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. THERE IS HEREBY CREATED A SPECIAL ACCOUNT UNDER THE GENERAL APPROPRIATIONS ACT (GAA) CALLED THE PUBLIC

GOVERNANCE MERITOCRACY FUND (PGMF) WHICH SHALL HEREBY BE REFERRED TO AS "THE FUND." THE FUND SHALL BE UTILIZED TO PAY OUT THE INCENTIVES GRANTED TO LGUS AND NGAS WHICH QUALIFY FOR THE AWARD. The Council established under Section 4 of this Act shall have the authority to determine the monetary incentives for LGUs AND NGAS based on the number of awardees. It shall also have the authority to re- evaluate and increase the amount of SGLG incentiveS to be awarded to LGUS AND NGAs: Provided, That the increase shall be subject to the sufficiency of the Fund at the time the increment is implemented. LGU AND NGA RECOGNITION FOR THE AWARD SHALL BE CONDUCTED QUARTERLY. MONETARY INCENTIVES FOR LGUS UNDER THIS ACT MAY ALSO BE SOURCED FROM OTHER FUND ASSISTANCE SOURCES TO LGUS UNDER THE DILG OR OTHER AGENCIES. MONETARY INCENTIVES FOR NGAS UNDER THIS ACT MAY BE SOURCED FROM APPLICABLE FUND SOURCES. LGUS AND NGAS EXPERIENCING PERSISTENT AND UNJUSTIFIABLE DECLINE IN THE INDICATORS IDENTIFIED UNDER THE HUMAN DEVELOPMENT MERITOCRACY CRITERIA UNDER SECTION 7 OF THIS ACT MAY BE DISINCENTIVIZED IN THE FORM OF LOWER OR ZERO INCENTIVE: PROVIDED, HOWEVER, THAT THESE DECLINES ARE NOT DUE TO EXTERNAL SHOCKS, SUCH AS NATURAL CALAMITIES, PANDEMICS, OR UNFORESEEABLE EVENTS BEYOND THE CONTROL OF THE LGUS AND NGAS: PROVIDED, FINALLY, THAT THE SPECIFIC BENCHMARKS OR STANDARDS ABOUT THE QUALIFYING PERCENTAGE DECREASE AND THE SUPPLEMENTARY CRITERIA WILL BE DETERMINED BY THE COUNCIL."

Sec. 12. Section 14 of the same Act is hereby amended to read as follows:

"SEC. 14. Management and Administration of the PUBLIC GOVERNANCE MERITOCRACY FUND SCLG Fund. - The PUBLIC GOVERNANCE MERITOCRACY FUND 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/er OR to augment the Fund shall be proposed by THE COUNCIL and ANNUALLY included in the budget of the DILG under the GAA."

Sec. 13. Section 16 of the same Act is hereby amended to read as follows:

"SEC. 16. PGMS OPERATING FUND 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 AND THE DEPDEV shall include in THEIR RESPECTIVE annual budgets to be incorporated in the GAA, the itemS for the PGMS SGG operating fund in the amount equivalent to two percent (2%) NOT LESS THAN FIVE PERCENT (5%) of the [SGLG Fund] PGMF. THIS FUND SHALL BE APPROPRIATED IN ADDITION TO THE PGMF UTILIZED FOR MONETARY INCENTIVES UNDER THIS ACT."

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 DEPDEV,

1 together with the Union of Local Authorities of the Philippines and the Leagues of 2 LGUs and local officials, shall promulgate the rules and regulations necessary for the 3 effective implementation of this Act.

Sec. 16. Separability Clause. If any provision or part of this Act is held

unconstitutional or invalid, the remaining parts or provisions not affected shall remain in full force and effect.

Sec. 17. Repealing Clause. All laws, presidential decrees, executive orders,

10 letters of instructions, administrative orders, rules and regulations contrary to or inconsistent with the provisions of this Act are hereby repealed, amended, or modified accordingly.

Sec. 18. Effectivity. - This Act shall take effect fifteen (15) days after its

publication in the Official Gazette or in a newspaper of general circulation. Approved,