Investment and Incentive Code of 2017 Municipality of MacArthur, Leyte

May 29, 2017 Excerpt from the Minutes of the 37th Regular Session of the Sangguniang Bayan of MacArthur, Leyte Held on May 29, 2017 the Municipal Session Hall. RESOLUTION NO. 072-17 RESOLUTION ENACTING AN ORDINANCE APPROVING THE INVESTMENT AND INCENTIVE CODE OF 2007 OF THE MUNICIPALITY OF MacARTHUR, LEYTE WHEREAS , in the light of increasingly competitive world an 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 accelerate the economic development of the Municipality of MacArthur, Leyte and improve the living standards of its people; WHEREAS , MacArthur, Leyte enjoys the built-in advantage being situated at the doorstep of the Eastern Visayas region and gateway for business to the east. Despite its proximity to two (2) major cities in the metropolis, MacArthur offers an inexpensive and affordable property and rental fees that will make MacArthur the prime choice of business locators looking for a perfect haven for investment; WHEREAS , the system and processes of the Municipality of MacArthur, Leyte on investment needs to be transparent to institute reforms in the barangay. NOW, THEREFORE , on motion of Hon. Roden T. Belleza, duly seconded by Hon. Rudin T. Babante and Leonardo R. Leria, Jr., be it RESOLVED, as it is hereby resolved to enact the following Ordinance: MACARTHUR MUNICIPAL ORDINANCE NO. 012-17 Be it ordained by the Sangguniang n of MacArthur, Leyte, that: CHAPTER I Title and Declaration of Policy SECTION 1. Title . This Ordinance shall be known as the "Investment and Incentive Code of 2017 Municipality of MacArthur, Leyte." SECTION 2. Scope . The Incentive granted in this Code shall be an additional to any incentive granted by the national government to registered enterprise. SECTION 3. Policy Statement . It is hereby declared to be the policy of the Municipal Government of MacArthur, Leyte to exploit key opportunities, advantage 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 MacArthur, Leyte will be committed to provide service that address 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 ends result, MacArthur, Leyte 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 require otherwise: a) Local Investment Incentive Code shall refer to the Municipality of MacArthur's Investment and Incentive Code of 2008; b) Municipality shall refer to Municipality of MacArthur covering all areas within its territorial jurisdiction as delineated by its charter and by law; c) Board shall refer to the Municipality of MacArthur Investment Incentive Board; d) Center refers to Investment Promotion Center; e) Investment means expenditures of capital by investors 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 MacArthur; 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 diversity or expand to other business ventures which falls within the preferred location areas or priority economic activities, as determined in the Investment Development Plan. j) Priority Investment Economic Activities shall mean the economic activities that the Board shall determine 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 Incentives Board SECTION 5. Local Investment Incentive Board. There is hereby created the Municipality of MacArthur 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; CAIHTE 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 MacArthur, Leyte Chamber of Commerce, remaining shall be filled from accredited PO's and 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 any time 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 and Investment Development Plan which shall identify the preferred investment location areas. b) Prepare the list of Preferred Areas of Investment and Activities in consultation with the public and private sector. c) Decide on issues arising in connection with the implementation of this Code. d) To institute monitoring scheme or feedback mechanism for the reaction or complaints of the investors. e) Issue directives necessary for the implementation of this Code. f) Form strategic alliance with local and international business organization to formulate strategic business, networking and exchange business. g) Revoke or suspend the enjoyment of incentive benefits of any registered enterprise for violation of the terms and condition or any provisions of this code. h) To enter into memorandum of agreement with other government agencies, a private sector for the purpose of simplifying systems, procedures, and requirements on investment and business operation and promotions on MacArthur, Leyte. i) Determine service fees to be charged by the center. j) To designate the Investment Promotion Center as the technical secretariat and appropriate additional funding for the implementation of this Code. k) 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 Sanggunian Bayan Council for approval. l) To lay out an implementation plan for achieving overall success in the implementation of the provisions of this Code. m) 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 amendment shall also take effect upon approval by the Board, Local Chief Executive and fifteen (15) days after publication in 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) Dispute 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 Oursourcing (BPO) o Contact Center o Medical and Legal transcription o Animation o Software Development o Management Consultancy o Data Processing o 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 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 Investment resulting in the employment of a minimum number of employees for a given period DETACa b) Local/Cottage Industries Investment that involves the processing of food products (bibingka, suman and latik) CHAPTER V Incentives 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. 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 into productive sub-contracting, by arranging factory visits to electronics and automotive 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_____ contain information about supporting industries, this will serve as yellow pages through which new existing enterprise can shop for cost effective products that meet the company needs. The link shall also offers the opportunity to be marketed outside MacArthur, Leyte as site is online, enabling customers to access their information around the clock. f) Active Private Sector/Civil Society participation Non Governmental organizations, civil groups, association of professionals such as the MacArthur Chamber of Commerce, Rotary Club of MacArthur, MacArthur Kiwanis Club and MacArthur Jaycees offers funding possibilities to viable projects and serving the interests and needs of MacArthur, Leyte investment community. They also provide the most up to date information on municipality's investment environment, invaluable support and host other important services. g) Free Quarterly publication via its own paper "Bagong MacArthur" Every month, the Public Information Office issues "Bagong MacArthur" newspaper and is working hard to cater every corner of MacArthur, Leyte. 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 MacArthur 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 investments 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) Economic 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 offer, promote concrete investments protects; c) Prepare and distribute pamphlets, brochures and other materials that help enhance investment; HEITAD d) Conduct studies and research concerning areas that may be considered as preferred areas of investment by the Board; e) Process, approved 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 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 conductive 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; i) To recommend to the Board any changes, modifications and/or amendments to existing legislation and procedures 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 Trust 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 MacArthur, Leyte. 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 MacArthur, Leyte 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: 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 all interested enterprise, whether new or existing, should be filed with the investment Promotion Center. All participants 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 filling 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 projects. 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 standards 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 prescribed. 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 investors' confidence in the incentive program, the Municipal Government, through the Municipality of MacArthur 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 or top of the priority list are the construction of additional waiting sheds, rehabilitation and widening of the roads and drainage and sewerage system. In addition, the Municipality of MacArthur 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 electronics mails. c) Implement the MacArthur Discipline Zone or MADS, in coordination with the local police and shall strictly enforce a number of rules and ordinances in the discipline zone such as Jaywalking, littering and parking. Realizing the traffic situation is turning off the would-be investors, the Sangguniang Bayan enacted Ordinance No. 03, series of 2017 creating a friendship route interlink road within the vicinity of MacArthur, Leyte to lessen vehicular traffic along the main thoroughfares and Imposing penalties to any one violating the provisions of the existing law. d) Peace and order situation MacArthur, Leyte has a stable peace and order condition where incidence of crime is low. MacArthurnons are peace loving people and friendliness of the people will make visitors free at home. e) Install a Customer Service Compliant 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 Tacloban, the cost of doing business at MacArthur, Leyte is inexpensive and provincial rate of the workforce still applies. h) Conduct a customer satisfaction survey to get feedback from customers, it will provide 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 be 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 n 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 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 MacArthur through the PESO office shall conduct a summer workshop, team building seminar intended to develop a 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. CHAPTER IX Final Provisions SECTION 24. Exception . This Code shall not apply to financing or banking institutions and other enterprise which are governed by the Central Banking Act and under the supervision of the BSP. SECTION 25. Implementing Rules and Regulation . 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 Section 17 and 18, as the case may be, the investor shall be disqualified from availing of himself the Investment Incentives. SECTION 28. Separable 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 ordinance, 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 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 after approval. ENACTED: MAY 29, 2017. WE HEREBY CERTIFY to the correctness of the foregoing resolution/ordinance. (SGD.) JENNY R. TAN Secretary to the Sanggunian ATTESTED: (SGD.) ALICE L. VILLASIN Municipal Vice-Mayor CONCURRED: (SGD.) RODEN T. BELLEZA SB Member (SGD.) RUDIN T. BABANTE SB Member (SGD.) VICTORIANO T. LAZAR SB Member (Absent) JESUS A. BARANDA SB Member (SGD.) DANILO M. ULBATA SB Member (SGD.) LEONIDES C. RUBA SB Member (SGD.) DANTE B. ESPLANADA SB Member (SGD.) LEONARDO R. LERIA, JR. ABC President (SGD.) JOSEPHINE A. PIGA SB Member APPROVED: (SGD.) RENE R. LERIA Municipal Mayor n Note from the Publisher: Copied verbatim from the official copy.