An Ordinance Approving the Municipality of Cainta's Investment and Incentive Code of 2008

October 27, 2008 Excerpt from the Minutes of the Regular Session of the Sangguniang Bayan Held at the Sangguniang Bayan Session Hall on October 27, 2008 at 10:30 in the Morning. Present: Hon. Arturo L. Sicat Vice Mayor/SB Presiding Officer Hon. Ross Glenn T. Gongora SB Member Hon. Danilo J. Cruz SB Member Hon. Teresita F. Delos Santos SB Member Hon. Ronnie F. Cruz SB Member Hon. Giovanni Jino H. Alcantara SB Member Hon. Jose S.J. Garcia, Jr. SB Member Hon. Daniel DL. Hernandez SB Member Absent: Hon. Sofia S. Velasco SB Member Hon. Wilfredo F. Sulit SB Member/ABC President Hon. Giancarlo Nile Q. Prats SB Member/SK President CAINTA MUNICIPAL ORDINANCE NO. 022-08 AN ORDINANCE APPROVING THE MUNICIPALITY OF CAINTA'S INVESTMENT AND INCENTIVE CODE OF 2008 Sponsored By: Councilor Teresita F. Delos Santos WHEREAS, in the light of increasingly competitive world and economic downturn, it has become apparently necessary to formulate and implement broader policies through local legislation for the encouragement and promotion of investment so as to accelerate the economic development of the Municipality of Cainta, Rizal and improve the living standards of its people. WHEREAS, Cainta, Rizal enjoys the built-in advantage being situated at the doorstep of the CALABARZON region and gateway for business to the east. Despite its proximity to two (2) major cities in the metropolis, Cainta offers an inexpensive and affordable property and rental fees that will make Cainta the prime choice of business locators looking for a perfect haven for investment. WHEREAS, the system and processes of the Municipality of Cainta on investment needs to be transparent to institute reforms in the bureaucracy. NOW THEREFORE, IN ACCORDANCE WITH SECTION 192 OF RA 7160 OTHERWISE KNOWN AS LOCAL GOVERNMENT CODE OF 1991, BE IT ORDAINED BY THE SANGGUNIANG BAYAN OF MUNICIPALITY OF CAINTA IN SESSION ASSEMBLED, THAT: CHAPTER I Title and Declaration of Policy SECTION 1. Title . This Ordinance shall be known as the "Municipality of Cainta Investment and Incentive Code of 2008." SECTION 2. Scope . The incentives granted in this Code shall be in addition to any incentive granted by the national government to a registered enterprise. SECTION 3. Policy Statement. It is hereby declared to be the policy of the Municipal Government of Cainta, Rizal to exploit key opportunities, advantages and potentials to become the Central for Business and Commerce of the East to create employment opportunities and spur economic activities which is aimed to improve the quality of life of its constituents. In order to achieve this, the Municipality of Cainta, Rizal will be committed to provide services that address to the investors need, and to lay down a comprehensive, detailed and strategic implementation/action plan that is realistic and can be easily understood and adopt. We shall seek to continuously strengthen the competitiveness of our system, services and people to satisfy investors more effectively than our competitors. Realizing that rewards, privileges and incentives are key motivators for driving an end result, Cainta, Rizal will be proactive in promoting the participation of both foreign and local investors by providing a wide range of incentives and support measures to maintain its attractiveness and achieve business and investment friendly environment. CHAPTER II Definition of Terms SECTION 4. Definition of Terms. In this Code, unless the contexts required otherwise: a) "Local Investment Incentive Code" shall refer to the Municipality of Cainta's Investment and Incentive Code of 2008; b) "Municipality" shall refers to the Municipality of Cainta covering all areas within its territorial jurisdiction as delineated by its charter and by law; c) "Board" shall refer to the Municipality of Cainta's Investment Incentives Board; d) "Center" refers to Investment Promotion Center; e) "Investment" means expenditures of capital by a investor to establish a new enterprise or expand or upgrade one that already exists; f) "Existing Enterprise" shall refer to those firms whose places of operation are presently located in the Municipality of Cainta; g) "Expansion" shall refer to the installation of additional facilities and/or equipment that will result in the increase of production or service capacity of the diversification of products or services; h) "Preferred Areas of Investment" refers to the investment identified by the Board in consultation with other sectors to be given preference; i) "New Investors/Enterprise" shall refer to a new investment or to an existing enterprise with plans to diversify or expand to other business ventures which falls within the preferred location areas or priority economic activities, as determined in the Investment Development Plan; CAIHTE j) "Priority Investment Economic Activities" shall mean the economic activities that the Board shall determined to have potential for more productivity and employment generation if located in the preferred location areas; k) "Registered Enterprise" shall refer to a business enterprise, whether owned and operated by an individual, partnership, corporation or cooperative duly registered under the provision of this Code. CHAPTER III The Local Investment Incentive Board SECTION 5. Local Investment Incentive Board. There is hereby created the Municipality of Cainta Local Investment Incentive Board for the purpose of overseeing the implementation of this Local Investment Incentive Code. SECTION 6. Composition of the Local Investment Board. The Board shall be composed of the following: Chairman Municipal Mayor Vice-Chairman Municipal Vice Mayor Members: Chairman, SB Committee on Commerce, Trade and Industry Chairman, SB Committee on Ways and Means Municipal Administrator Municipal treasurer Municipal Budget Officer Municipal Assessor MPDC Officer Provincial Director-DTI Two (2) Representative from the private sector among which should be the President of the Cainta, Rizal Chamber of Commerce, remaining shall be filled from accredited PO's or NGO's by the Sangguniang Bayan to be appointed by the Municipal Mayor SECTION 7. Meetings of the Board and Quorum . The Board shall meet regularly once in a month. However, it may hold extra ordinary meetings at anytime when necessary. There shall have a quorum where more than half of the members are present at meetings of the Board. Decisions of the Board shall be passed by a majority vote, however the Chairman shall have a casting vote in case of a tie. SECTION 8. Powers and Duties of the Board. The Board Shall: a) Prepare an Investment Development Plan which shall identify the preferred investment location areas. a) n Prepare the list of Preferred Areas of Investment and Activities in consultation with the public and private sector. b) Decide on issues arising in connection with the implementation of this Code. c) To institute monitoring scheme or feedback mechanism for the reaction or complaints of the investors. d) Issue directives necessary for the implementation of this Code. e) Form strategic alliance with local and international business organization to formulate strategic business networking and exchange business. f) Revoke or suspend the enjoyment of incentive benefits of any registered enterprise for violation of the terms and conditions or any provisions of this Code. g) To enter into memorandum of agreement with other government agencies and private sector for the purpose of simplifying systems, procedures, and requirements on investments and business operation and promotions in Cainta, Rizal. h) Determine service fees to be charged by the Center. i) To designate the Investment Promotion Center as the technical secretariat and appropriate additional funding for the implementation of this Code. j) Whenever it deems necessary decide on new or additional incentives other than what is provided for under the provision of this Code and submit the same to the Sangguniang Bayan Council for approval. k) To lay out an implementation plan for achieving overall success in the implementation of the provisions of this Code. Exercise all powers necessary for the attainment of the purpose of this Code. CHAPTER IV Investment Development Plan SECTION 9. The Board may, after due notice and hearing, amend the Investment Development Plan by adding additional preferred location areas and other priority economic activities. Such amendments shall also take effect upon approval by the Board, Local chief Executive and fifteen (15) days after publication in a newspaper of general circulation. SECTION 10. Preferred Investment Location Areas . Incentives will be provided to new and existing enterprises in the following investment areas: a) Disputed Areas b) Idle Lands (To be identified by Assessor's office and the Municipal Planning Development Coordinator) SECTION 11. Priority Investment Activities . The priority investment activities which should be located in the preferred investment location areas are, as follows: a) Information and Communication Technology (ICT)/Business Processing Outsourcing (BPO) Contact Center Medical and legal transcription Animation Software Development Management Consultancy Data Processing Financial, accounting and engineering services b) Manufacturing Plants (Garments, Automotives, Handicrafts) c) Hospitals and other health services d) Operation of academic institutions providing post graduate education and the development of sports e) Tourism oriented Enterprise f) Electronic Industries SECTION 12. Non-Priorities Investment Activities . Investment in economic activities which fall under any of the following categories shall be eligible for incentives even if they locate outside the defined priority investment areas: a) Labor Intensive Investments resulting in the employment of a minimum number of employees for a given period b) Local/Cottage Industries Investment that involves the processing of food products (bibingka, suman and latik) CHAPTER V Incentiv es SECTION 13. Fiscal Incentives. From the start of business operation a registered/business enterprise under this Code shall be exempted from payment of the business taxes for the period of three (3) years. DETACa SECTION 14. Non-Fiscal Incentives . All registered and qualified enterprises shall be entitled to the following non-fiscal incentives: a) Free technical assistance Trainings, workshop and seminars shall be given to all locally manufactured products to further improve their knowledge and give them access to production technologies for the enhancement of labeling, packaging and proper sanitation; b) Access to Basic Needs Assistance in gaining access to utilities such as water, electricity and telecommunication; c) Free Consultation Information and investment consultation is readily available for both local and foreign investors at no charge; d) Subcontracting To assist and support the small and medium enterprise to enter into productive sub contracting arrangements by arranging factory visits to electronics and automotives assemblers; e) Database of all the existing enterprise Shall provide a free service Industry database which will be located at the Links section of the Municipality's official website: www.caintal.gov.ph , contains information about supporting industries, this will serve as a yellow pages through which new and existing enterprise can shop for cost effective products that meet the company needs; The link shall also offers the opportunity to be marketed outside Cainta, Rizal as site is online, enabling customers to access their information around the clock; f) Active Private Sector/Civil Society participation Non Governmental organizations, civic groups, association of professionals such as The Cainta Chamber of Commerce, Rotary Club of Cainta, Cainta Kiwanis Club and Cainta Jaycees offers funding possibilities to viable projects and serving the interests and needs of Cainta, Rizal investment community. They also provide the most up to date information on municipality's investment environment, invaluable support and a host of other important services; g) Free Quarterly publication via its own paper "Bagong Cainta" Every month, The Public Information Office issues "Bagong Cainta" newspaper and is working hard to cater every corner of Cainta, Rizal. A classified ads section shall be created to help the investors/enterprise to promote their businesses by offering advertisement absolutely free of cost; h) Recognition and Rewards Many enterprises find that having trophies on display increases their business by increasing credibility. The Municipality of Cainta shall recognize outstanding enterprise who demonstrated responsible business practices. Investors who put in effort or make achievements shall be rewarded by the LGU to motivate and inspire them to serve better their clients and the community as well. CHAPTER VI Investment Promotion Center SECTION 15. The Investment Promotion Center. Is hereby created as the central service arm for matters of investment of the Board and shall intensifies the promotion of the Municipality's various services, programs and activities. The Municipal Planning and Development Officer shall act as the Technical Secretariat under supervision of the Board. The Center shall be attached as a regular division of the Office of Municipal Planning and Development Office which shall be staffed by (1) Economics I, (1) Economics II and (1) Economic Researcher. SECTION 16. The Investment and Promotion Center shall have the following Powers, Duties and Responsibilities: a) Organize with a view to helping promote investment, such activities as exhibitions, annual "Investment Week" and "Investment Forum" locally or abroad as may be appropriate, give advisory support to investors; b) Collect, compile and analyze and disseminate information on resource potential of the Municipality and on investment opportunities it offers, promote concrete investment projects; c) Prepare and distribute pamphlets, brochures and other materials that help enhance investment; d) Conduct studies and research concerning areas that may be considered as preferred areas of investment by the Board; e) Process, approve and grant application for incentive availment with the Board; f) Supervise and monitor a performance tracking process that includes: timely and consistent report and visible action plan to ensure that the provisions of this Code are complied with; g) Check and verify the compliance of registered enterprises; h) Initiate and submit to the Board implementation measures needed to create a conducive investment climate for both domestic and foreign investors on the results in the implementation of this Code; i) Publicly notify investors of directives the Board issues from time to time; j) To recommend to the Board any changes, modifications and/or amendments to existing legislation and procedure concerning local investments; k) Perform such other as may help to enhance and promote investment. CHAPTER VII Qualification and Registration of Enterprises SECTION 17. Qualification of New Enterprise . A new enterprise which intends to avail the incentives provided by the Code must meet the following qualifications: a) The new business enterprise must have complied with the minimum requirements mandated under existing national and local laws and the Constitution. b) The prospective investor's place of operation or production is located within the territorial jurisdiction of Cainta, Rizal. c) The prospective investment must be among the approved preferred/priority areas of investments and falls under the provision of Section 11 of this Code. d) The new enterprise must provide employment for bonafide residents of Cainta, Rizal labor and administrative, to no less than 70% of the total direct and indirect needed employees and shall be accorded wages and benefits not less than those provided under the Labor Code and other relevant laws, issuances, rules and regulations of the Department of Labor and Employment and Regional Wage Board. e) The new investors shall submit a copy of the project study. f) The new enterprise should have, in their respective areas provisions/facilities, for senior citizens and spacious parking area. g) The new enterprise should also have, in their respective areas facilities for proper handling of liquid and solid hazardous wastes to prevent any threat to the health and welfare of the constituents. h) The new business enterprise with an initial capitalization of not less than two million (Php2,000,000.00) pesos shall install a CCTV camera within the vicinity of the business establishment. SECTION 18. Qualification of Existing Enterprise . An existing enterprise which is expanding and/or diversifying and intending to avail of the incentives under the Code must meet the following qualifications: aDSIHc a) The business enterprise must have complied with the minimum requirements mandated under existing local and national laws and the Constitution; b) The expansion/diversification must be among the approved preferred/priority areas of investments; c) The investors have no outstanding obligation with the Municipal government. SECTION 19. Registration Requirements . Application for registration by any and all interested enterprises, whether new or existing, should be filed with the investment Promotion Center. All participations shall be recorded sequentially in a registration book and the date appearing therein and stamped on the application shall be considered the date of official receipt thereof. A non-refundable filing fee shall be paid by the applicant together with the submission of the following documents for registration: a) Duly accomplished application form in three (3) copies; b) Project profile; c) Certified true copy of the applicant's Certificate of Registration with the Securities and Exchange Commission, Department of Trade and Industry, Board of Investments or other concerned licensing agency of the National Government, as may be applicable; d) Special power of attorney in the case of application made through an agent; e) Project study for proposed investment showing that the project is economically, technically, and financially feasible and viable; f) Secretary's Certificate of the applicant's Board of Director's resolution authorizing the applicant and the designation of representative to sign documents and transact business with the Board and; g) For an existing enterprise, audited financial statements and income tax returns for the past three (3) years; h) Evidence of compliance with the conditions of their approval in order to claim incentive benefits; i) Other relevant information relating to the particulars of the project. SECTION 20. Filing Fee. Following non-refundable filing fee shall be paid as follows: Cottage/Small Industries Php500.00 Medium Industries Php1,000.00 Large Industries Php1,500.00 SECTION 21. Registration Procedures and Approval of Applications. The Board shall formulate appropriate rules and regulations to facilitate actions on applications filed with it and to prescribe criteria for the evaluation of applications and to standard forms for use by the applicants. SECTION 22. Certificate of Registration. An approved application by the Board shall be considered a registered enterprise and as such, legally entitled to fully avail of any and all of the incentive provided by this Code. A registered enterprise shall be issued a Certificate of Registration duly signed by the Board Chairman and/or such other designated officer of the Board in such style and form as the Board may prescribe. CHAPTER VIII Rights and Privileges SECTION 23. Rights and Privileges Guaranteed by the Municipal Government . All investors and registered enterprises are entitled to the rights and guarantees provided for by the Municipal Government, and to enhance investor confidence in the incentive program, the Municipal Government, through the Municipality of Cainta Investment Incentive Board shall: a) Endeavor to maintain industrial peace through the creation of Municipal Tripartite Industrial Peace Council that entails smooth relationship between labor and management sector that limits the existence of strikes and lockout. b) Focus on the infrastructure facilities and utilities development projects, on top of the priority lists are the construction of additional waiting sheds, rehabilitation and widening of the roads and drainage and sewerage system. In addition, the Municipality of Cainta shall install a (WIFI) wireless Infrastructure system and shall expand the network by establishing a canopy system connectivity between schools, barangays , police station and the administrative office. As such communication can be done through electronic mails. c) Implement the Cainta Discipline Zone or CADZ, in coordination with the local police shall strictly enforce a number of rules and ordinances in the discipline zone such as on jaywalking, littering and parking. Four (4) major areas such as Cainta Junction, Imelda Avenue, A. Bonifacio Avenue, and Floodway has been designated as the municipality's discipline zone. Realizing that traffic situation is turning off the would be investors, The Sangguniang Bayan Council enacted Municipal Resolution No. 2000-134 creating a friendship route interlink road within the vicinity of Cainta, Rizal to lessen vehicular traffic along the main thoroughfares and Municipal Ordinance No. 2000-31 imposing penalties to any one violating the provisions of the existing law. d) Peace and order situation Cainta, Rizal has a stable peace and order condition where incidence of crime is low. Caintanos are peace loving people and friendliness of the people will make visitor feel at home. e) Install a Customer Service Complaint Desk: Act on red tape related queries and complaints that are within the Authority or competence of the Complaints Desk Officer to address. Refer to the Local Chief Executive all related red tape related complaints against any local government personnel for appropriate action. f) Establish a BUSINESS ONE STOP SHOP CENTER (BOSS) convening all offices involved in the BPL process in one area during the annual business renewal period. g) Affordable property, rental rate and low labor cost Despite its proximity to Metro Manila, the cost of doing business at Cainta, Rizal is inexpensive and provincial rate of the workforce still applies. h) Conduct a customer satisfaction survey to get feedback from customers, it will provides a direct view from the customers (constituents) perspective on what must needs to be improve to ensure that the services meets and exceeds their expectations. i) Advance inspection on all existing business establishment shall conducted by the Bureau of Fire Protection, Municipal Health Office, Municipal Engineering Office, Municipal Planning and Development Office within the year from February to November, in preparation for the renewal of business licenses on January 1 to of succeeding year. j) Free delivery of the permit to the applicant's home or place of business Any applicant who has been assessed and has paid his fees is issued a temporary license which already allows it to operate while completing registration requirements. k) Sponsored A Summer Enrichment Program The Municipality of Cainta through the PESO office shall conduct a summer workshop, team building seminar intended to develop and pre qualify the candidates and consolidate their capabilities and skills to be more acceptable and ready to join the labor market with full confidence. In addition this will also enhance their chances for meaningful employment in the long run and will produce world class personnel making the municipality more attractive to investment and conduct to industrial growth. ETHIDa CHAPTER IX Final Provisions SECTION 24. Exception. This Code shall not apply to financing or banking institutions and other enterprises which are governed by the Central Banking Act and under the supervision of the BSP. SECTION 25. Implementing Rules and Regulations . The Board is authorized to formulate the IRR of this Code. SECTION 26. Site Inspection . The Board is empowered and authorized to conduct inspection of the premises for examination of the business of the registered enterprises on their progress. SECTION 27. Penal Clause. a. Any violation of the provisions of this Code, existing laws, ordinances, rules and regulations shall be ground for cancellation or revocation of the registration of the business and the withdrawal of all the incentives granted under this Code until the investors takes due corrective measures. b. At any point of its operation in the participation of the Investment Incentives, an investor who fails to fulfill any of the qualifications as stated in Sections 17 and 18, as the case may be, the investor shall be disqualified from availing of himself the Investment Incentives. SECTION 28. Separability Clause . The provisions of this Code are hereby declared to be separable, and in the event that one or more of the other provisions are held illegal or unconstitutional, the validity of the other provisions shall not be affected. SECTION 29. Repealing Clause . All Ordinances, executive orders and rules and regulations inconsistent or in conflict with the provisions of this Code are hereby repealed, amended or modified accordingly. SECTION 30. Confidentiality of the Application. All applications and their supporting documents under this Ordinance shall not be disclosed to any person, except with the written consent of the applicant or upon order of any court of competent jurisdiction. SECTION 31. Effectivity . This ordinance shall take effect immediately upon its approval and publication in newspaper of local circulation. ENACTED: 27 OCTOBER 2008. Let copies of this Ordinance be furnished to all concerned offices for their information, guidance and implementation. I HEREBY CERTIFY to the correctness of the foregoing Ordinance which was duly enacted by the Sangguniang Bayan during its regular session held on October 27, 2008. (SGD.) BLARDONI C. MALLARI Secretary to the Sanggunian Attested and Certified to be duly enacted: (SGD.) HON. ARTURO L. SICAT Vice Mayor & SB Presiding Officer UNANIMOUSLY APPROVED BY THE SANGGUNIANG BAYAN MEMBERS: (SGD.) HON. ROSS GLENN T. GONGORA (SGD.) HON. DANILO J. CRUZ (SGD.) HON. TERESITA F. DELOS SANTOS (SGD.) HON. RONNIE F. CRUZ HON. SOFIA S. VELASCO (SGD.) HON. GIOVANNI JINO H. ALCANTARA (SGD.) HON. JOSE S.J. GARCIA, JR. (SGD.) HON. DANIEL DL. HERNANDEZ HON. WILFREDO F. SULIT HON. GIANCARLO NILE Q. PRATS Approved: (SGD.) HON. RAMON A. ILAGAN Municipal Mayor n Note from the Publisher: Copied verbatim from the official copy.