Law Summary
Seal of Good Local Governance (SGLG)
- An award and continuing program recognizing LGUs that excel in specified criteria.
- Key areas include transparency in public funds, disaster preparedness, social sensitivity, health program implementation, education reform, market efficiency, safety, environmental protection, cultural conservation, and tourism promotion.
Council of Good Local Governance
- Composed of representatives from key government departments and one representative from basic sectors.
- Led by the Secretary of the Department of the Interior and Local Government (DILG).
- Serves as the policymaking and advisory body for the SGLG.
Powers and Functions of the Council
- Develops and promulgates performance indicators for LGUs.
- Reviews and revises indicators to align with national development plans.
- Evaluates the impact of SGLG and recommends necessary legislation.
- Creates technical working groups for expert assistance.
- Submits annual reports to the President and Congress.
- Performs other necessary functions to implement the Act.
Implementing Agency
- The DILG is responsible for evaluating LGUs' compliance with the criteria.
- Coordinates with other agencies, CSOs, and sectors as necessary.
Criteria for LGU Evaluation
- Good fiscal/financial administration: positive economic performance, adherence to budget rules, full disclosure, and COA audit opinions.
- Disaster preparedness: existence of comprehensive plans, early warning systems, evacuation facilities.
- Social protection: programs for vulnerable sectors, access to justice and services, representation of indigenous peoples.
- Health compliance: access to nutritious food, physical activity programs, law enforcement against health hazards, immunization, and surveillance.
- Education programs: increased student participation, reduced dropouts, improved achievement scores.
- Business friendliness: streamlined licensing, economic data management, investment incentives.
- Safety and peace order: adoption of action plans, support for police, anti-drug councils, community policing.
- Environmental management: waste management compliance, ecological balance, climate change adaptation.
- Tourism and culture: tourism officers, cultural preservation, marketing, and budget appropriation.
- Youth development: youth programs, councils, and affirmative policy measures.
- Criteria may be expanded by the Council.
Qualification and Awarding of SGLG
- LGUs that pass all criteria based on DILG’s assessment qualify for the award and incentives.
Rules of Interpretation
- Strict construction of definitions and criteria against LGUs.
- LGUs bear the burden of proving qualification.
Incentive Fund and Utilization
- Creation of a special SGLG Fund under the General Appropriations Act.
- Fund used solely for incentives to qualified LGUs.
- Limitations include prohibitions on using funds for loans, travel, administrative expenses, vehicle expenses, salaries, office construction, and loan guarantees.
Capacity-Building Assistance
- DILG to release governance assessment reports identifying LGU gaps.
- Technical assistance to be provided by national agencies for LGUs not qualifying.
Fund Management
- DILG manages the SGLG Fund with Council supervision.
- Budget proposals for replenishment or augmentation included in DILG’s budget.
Respect for Local Autonomy
- The Act affirmatively respects LGU autonomy in policy-making and program implementation beyond the SGLG qualification.
Operating Fund
- Initial funding from DILG’s Performance Challenge Fund.
- Subsequent annual budget to include 2% of the SGLG Fund for operation costs.
Separability and Repealing Clauses
- Provisions held unconstitutional do not affect the rest of the Act.
- Conflicting laws, decrees, and regulations are repealed or modified.
Effectivity
- The Act becomes effective fifteen days after publication in the Official Gazette or a widely circulated newspaper.