The New Lucena, Iloilo Investment-Incentives Code

July 7, 2012 NEW LUCENA MUNICIPAL ORDINANCE NO. 013-12 THE NEW LUCENA, ILOILO INVESTMENT-INCENTIVES CODE Be it ordained by the Sangguniang Bayan of New Lucena, Iloilo, in session assembled that. ARTICLE I Title and Declaration of Policy SECTION 1. Title . This ordinance shall be known as THE NEW LUCENA, ILOILO INVESTMENT-INCENTIVES CODE. SECTION 2. Policy Statement . In furtherance of our great desire and determination to hasten the economic growth and development of our community as manifested by our concerted efforts and sacrifices to make a progressive community. We, the residents of New Lucena, encourage, inspire and support new investment, expansion of existing business, and diversification in industries and other business endeavors, that will create employment opportunities, increase economic condition and improve the quality of life of our citizenry. SECTION 3. Declaration of Investment Principles and Policies . It is the policy of the municipal government of New Lucena to encourage both local and foreign investment in its jurisdiction that will redound to the mutual benefits of its citizens and investors taking into account the principles of sustainable development, wise utilization of natural resources, equitable distribution of wealth and holistic human resource development. To accelerate the sound development of our municipal economy, in consonance with the principle and objectives of economic nationalism, and in pursuit of a planned economically feasible and practicable establishment of industries. To encourage Filipino and foreign investment to develop agricultural, processing and manufacturing industries which increase municipal income, bring about economic upliftment, provide more opportunities for employment, and raise the standard of living of the people of New Lucena. To welcome and encourage foreign capital to establish pioneer enterprise that are capital intensive and would utilize a substantial amount of domestic raw materials, in joint venture with substantial Filipino capital whenever available. The municipality openly declares that it recognizes the role of the civil society and NGO's as partners and agent of change of the municipal government in translating the dreams and ideals of the Board and the people of New Lucena into realities. The municipal government acknowledges its lead role in promoting industrial peace and security in establishing support, water, power road network and business and infrastructure facilities and as agent in the transformation of the community into a responsible citizenry. Finally the municipality manifest its desire to attract investors through efficient and effective governance ensuring management continuity of policies, providing fiscal incentives, supportive and facilitate political climate and providing adequate support promoting political stability. SECTION 4. Definition of Terms as Applied in this Ordinance . a.) "Board" refers to the Municipality of New Lucena Investment-Incentives Board. b.) "Code" shall refer to the New Lucena, Iloilo Investment-Incentives Code. c.) "Expanding Enterprise" shall mean an enterprise that made an increase on its capital investment, manpower, physical facilities and expansion of its building, and increase in product line. d.) "Fiscal Incentive" refers to the direct financial or monetary benefit to the investor. e.) "Non-Fiscal Incentive" pertains to a non-monetary value of incentives that provide indirect benefit to investors. f.) "Incentives" refers to the benefits or privileges granted by the Municipality of New Lucena, to encourage investment. g.) "Indigenous Materials" refers to the products growing naturally in the Municipality of New Lucena. h.) "Investment" refers to money, equipment, or properties (including the cost of land), professional services or rights expressed in monetary value put-in for the purpose of engaging in a business activity. i.) "Municipality" shall mean the Municipality of New Lucena covering all areas within its territorial jurisdiction as provided by the law. j.) "Registered Enterprises" refers to any business entity operating in the Municipality of New Lucena whose application for the availment of investment incentive plan has been approved by the Board. k.) "Official Acceptance" refers to the final acceptance of the application for registration with complete requirements. CAIHTE l.) "Pioneering Enterprise" a newly introduced industry or business endeavor in the Municipality of New Lucena. ARTICLE II Purpose, Objectives and Goal SECTION 1. This Code shall . a.) Integrate and supplement the investment incentive law of the national government appropriate to local initiative to attract both foreign and local investors. b.) Enhance the image of the Municipality of New Lucena as a potential investment destination in the Province of Iloilo and the island of Panay. c.) To create a friendly investment atmosphere by setting up one-stop processing desk to facilitate processing of papers and documents related to investments. d.) Promulgate investment policy guidelines for investors to have ready accessible information on local investment priority areas and corresponding tax exemptions, privileges and incentives. e.) To promote the Municipality of New Lucena as an investment haven. f.) Encourage the setting-up of labor intensive but environmentally friendly industries. ARTICLE III The Municipality of New Lucena Investment-Incentives Board SECTION 1. New Lucena Investment . Incentives Board shall be created in the Municipality of New Lucena to implement the provisions of this Code. SECTION 2. Composition of the Board. The New Lucena Investment-Incentives Board shall be composed of the following: Chairman: Municipal Mayor Vice Chairman: Municipal Vice Mayor Members: 1.) Municipal Treasurer; 2.) Municipal Planning & Development Coordinator; 3.) SB Member, Chairman of the Committee of Ways and Means; 4.) SB Member, Chairman-Committee on Finance, Budget and Appropriations; 5.) SB Member Chairman Committee Zoning, Urban & Rural Development; 6.) SB Member Chairman Committee on Natural Resources and Environmental Protection; 7.) SB Member Chairman Committee on Tourism; 8.) SB Member Chairman Committee in Agriculture & Cooperative; 9.) Representative from Local Economic Development (LED )Team; 10.) Local Economic Investment Promotion Officer (LEIPO); 11.) Representative from Municipal Small Medium Economic Enterprise Development Council (SMEEDC); 12.) Municipal Assessor; 13.) Municipal Engineer; 14.) Municipal Tourism Officer; 15.) PESO Officer; 16.) Municipal Agriculture Officer; 17.) Representative from the Academe Association; 18.) Representative from the Agriculture/Farmers Association; 19.) Representative from the Finance/Business Organizations/Sector; and 20.) Representative from the Market Vendors Association. Provided, that representatives from items 17, 18, 19 & 20 of the Civil Society/Private Sector should come from Organizations duly accredited by the Sangguniang Bayan. Provided further, that the term of office of the representative from the Civil Society Organization shall be determined by the Municipal Investment-Incentives Board and to be implemented through an Executive Order. SECTION 3. Secretariat . The secretariat of the Municipal Investment-Incentives Board shall be constituted and designated by the Municipal Mayor upon the recommendation of the Board, preferably the Municipal Economic Enterprise and Development Officer (MEEDO) and two technical working staff as identified by the Municipal Mayor to assist the board in all its functions and duties. SECTION 4. Meeting and Quorum of the Board. The Board shall meet at least once every quarter or as deemed necessary. The presence of the majority of all its members including the Chairman and the Vice Chairman shall constitute a quorum. The meeting venue is the Session Hall or any venue designated by the Board. SECTION 5. Powers and Duties of the Municipality of New Lucena Investment-Incentives Board . The Municipality of New Lucena Investment-Incentives Board (NLI-IB) shall be responsible for the regulation and promotion of investments in the Municipality of New Lucena, Iloilo. DETACa The Board shall have the following powers and duties: 1.) To formulate and prescribe the Implementing Rules and Regulations of this Code; 2.) To identify priority and preferred investment areas and/or activities to be promoted as well as recommend to the Sangguniang Bayan appropriate incentives and support measures which shall be extended to new and existing investors in order to attract new investments or expansions in those areas/activities; 3.) To adopt an investment program, which shall list the priority investment areas/activities and prescribe the corresponding incentives and support measures for the promotion of the Municipality as a new investment destination supported by adequate market research and data preferably with local components; 4.) To prepare a site development plan congruent to the municipality's approved short, medium and long term Comprehensive Development Plan; 5.) To accept, process appraise, evaluate and approve and/or reject all applicants for incentives under this Code; and to act within thirty (30) days from receipt therefore all complete requirements and applications submitted to New Lucena Investment-Incentives Board; 6.) To establish close coordination and interfere with other government agencies, private sector organizations for the effective and efficient implementation of this Code; 7.) Recommend to the Municipal Mayor/Chairman of the Board additional budget and/or identify alternative funding for effective implementation of this Code. 8.) To review the package or appropriate incentives and support measures at least every three (3) years; 9.) To conduct Trade and Investment Mission both local and foreign for the purpose of inviting investors as well as providing necessary information and dissemination drive to parties willing to avail of the program; and 10.) To exercise and assume all other powers and duties necessary for the attainment of the purpose of this Code. SECTION 6. The Municipal Economic Enterprise Development Office (MEEDO) . There is hereby designated a Municipal Economic Enterprise Development Office to be headed by the Municipal Economic Enterprise Development Officer who shall act as Secretary to the Board. The MEEDO shall have supervision over the following Sections: 1.) Tourism and Investment Promotion Section; 2.) Special Economic Programs and Projects Section; and 3.) Economic Enterprise Section; The Tourism and Investment Promotion Section (TIPS) shall function as: 1.) One-Stop documentation and processing center; 2.) Tourism and Investment information center; and 3.) Business center for assistance or service between the New Lucena Investment-Incentives Board and investors; ARTICLE IV Investment Priority Plan & Preferred Areas of Investment SECTION 1. Local Investment Priority Plan . Within sixty (60) days after the organization of the New Lucena Investment-Incentives Board, the Board shall formulate its local Investment Priority Plan (2012-2014) which shall generate employment and enhance and accelerate economic development of the Municipality such as but not limited to the following preferred Areas of Investment: 1.) Manufacturing and Processing Enterprises (Agriculture, Transportation, Machineries & Canning; 2.) Pioneering Enterprises (Printing, Publishing & Allied Industries); 3.) Utility Companies engaged in water, power generation and distribution telecommunication and those of similar in nature; 4.) Social Service which includes Health Care Services, Educational Institutions and Housing Development; 5.) Recreational Facilities; 6.) Metal Crafts; 7.) Export Oriented Industries; 8.) Tourism Oriented Industries & Services (Inland Resorts, Hotels, Spa Centers, Retirement Village, Money Changer and Pawnshops); 9.) Information, Electronics and Communication Technology Enterprises; 10.) Shopping Malls and Department Stores. SECTION 2. The Board may revise the identified Local Investment Priority Plan every Three (3) years or as may deemed necessary upon approval of the Sangguniang Bayan. ARTICLE V Qualifications SECTION 1. All new investors or business enterprises who intend to register and avail of the incentives provided in this Code must meet the following qualifications: aDSIHc a.) The place of operation or production shall be located within the territorial jurisdiction of the Municipality; b.) The project or business enterprise shall engage in the areas of investments listed in the Investment Priority Plan and Preferred Areas of Investment; c.) The actual investment is at least One Million Five Hundred Pesos (Php1,500,000.00) which shall be based on the total project cost stated in the investor's study submitted to and approved by the Board not including the cost of land; and d.) The project of Business Enterprises shall provide employment to bonafide residents of the Municipality of not less than thirty (30%) percent of the total workforce. Provided that enterprise/industries using information, communication technology facilities, automated devices and equipment and the like requiring highly technical expertise or training maybe exempted from the above requirements subject to the review of the Technical Working Group (TWG) duly created for the purpose by the Board. Findings/recommendations shall be subject to the approval of the board. SECTION 2. Limitations on Availment of Incentives . Investors and enterprises referred to under Sections 1 and 2 of this Article can avail of the Incentives granted herein only once. SECTION 3. Registration Requirements . a.) Investors/Enterprises qualified under Sections 1 and 2 of this Article shall file an application if they wanted to avail of the incentives before putting up their business. The application shall be considered accepted after payment and submission of the following documents: 1.) Duly filled-up and notarized application form to be provided by the Board in accordance with the provision of this Code; 2.) Certified true copy of applicant's Certificate of Registration with the Securities and Exchange Commission, Department of Trade and Industry. Cooperative Development Authority or other concerned government licensing agencies as maybe applicable; 3.) Project study of the proposed investment showing that the project is economically technically and financially feasible and viable; 4.) Secretary's Certificate of the Board's resolution authorizing the application and designation of the representative to sign documents and transact business with the Board; 5.) For existing enterprises, an audited financial statement and income tax returns for the past three (3) years; 6.) Locational Clearance issued by the Local Zoning Officer; and 7.) Other documents as maybe required by the Board. b.) Payment of non-refundable Filing Fee of One Thousand Pesos (Php1,000.00) for each application Provided, that all documentary requirements specified under Section 3 (a) of this Article have been duly complied with. SECTION 4. Disqualifications . The Board reserves the rights to disapprove any application on valid grounds. An existing business enterprise that will close his business with the intention to reorganize for the purpose of availing the privilege/incentives under this code is automatically disqualified. SECTION 5. Registration Procedures . To ensure an orderly manner of registration, the following procedures shall be observed: 1.) The Board shall prescribe an official Application Form to be accomplished by the Applicant with all the required information appearing thereon; 2.) The duly Accomplished Application Form shall be filed by the Office of the Secretariat/Office of the Municipal Economic Enterprises Development Officer for the appraisal of the Board; 3.) After paying a non-refundable Filing Fee of One thousand Pesos (Php1,000.00) the documents relative to the application shall be acted upon within Thirty (30) days from the date of official acceptance after which, if no action has been taken, the application shall be deemed approved; 4.) The Board shall in writing inform the applicant the reasons for disapproval if application shall be deemed disapproved. SECTION 6. Certificate of Registration . An enterprise/investor whose application was approved under this Code shall be issued a Certificate of Registration duly signed by the Municipal Mayor and/or the Chairman of the Board, as the applicant's proof in availing the privileges granted in this Code and to clearly state the incentives and privileges granted. SECTION 7. Cancellation . The Certificate of Registration duly issued to a qualified business entity can be cancelled by the Board on the following grounds: a.) Violation of any of the provisions of this code; b.) Non-compliance with anti-pollution laws or ordinances, such as other regulatory measures passed by the local and national government; c.) Non-submission of the periodic requirements that the Board may require for the periodic review of all registered enterprises such as annual audited financial statements and others; and ETHIDa d.) Non-compliance with the labor laws, Social Security System, Bureau of Internal Revenue requirements and other national issuances relevant thereof. SECTION 8. Annual Inspection . The Municipal Investment-Incentives Board shall conduct an annual inspection of the registered enterprises on their progress either itself or by requesting a local government agency to conduct the same and said inspection shall be limited to the total sales/receipts; compliance of the Minimum Wage Law or to the provisions of this Code and the privilege granted as stated in the Certificate of Registration/Exemption. SECTION 9. Reporting . At the end of each calendar year but not later than April 30, all registered enterprises shall submit copies of duly audited financial statements to the Municipal Investment-Incentives Board and the Office of the Sangguniang Bayan through the Municipal Vice Mayor for evaluation and record purposes. SECTION 10. Violation . Any registered enterprise who is found to have violated any provision of this Code shall forfeit the incentives and/or privileges granted herein and shall be required to pay all taxes due from the start of its business operation upon the recommendation of the Board. ARTICLE VI Incentives to Registered Enterprises SECTION 1. Fiscal and Non-Fiscal Incentives . In addition to the incentives provided by law, RA 7160 or the Local Government Code of 1991, RA 7042 or the Foreign Investment Act, RA 7916 or the Special Economic Zone Act, Board of Investments and other pertinent laws, any enterprise registered under this Code shall enjoy the local incentive, privileges, tax exemption and relief and other economic perks as provided for in the following provisions: 1.) Fiscal Incentives as determined by the Board 2.) Reduction of Business Taxes A registered enterprises under this Code shall enjoy a reduction of Business Taxes on Capital Investment, gross sales/receipts earned or realized during the preceding Calendar year to wit: a. New Enterprise Year of Operation % of Reduction First year 100 Second Year 50 Third year 25 b. Expanding Enterprises Year of Operation % Reduction First year 60 Second Year 40 Third year 20 SECTION 2. Fees Incentives . All qualified and accepted applicants to the Investment-Incentives Program shall enjoy the following exemption privilege from payment of municipal license fees and mayor's/business permit, except sanitary permit, locational clearance, building and electrical permits. Mayor's/business permit shall however be secured from the Mayor's Office. SECTION 3. Non-Fiscal Incentives . Non-Fiscal incentives which also applies to existing and expanding enterprises to include unqualified support and assistance ( i.e. , access roads, water facilities, electrical facilities) from LGU officials, and members of New Lucena Investment-Incentives Board on matters of lot acquisition or lease processing of documents, tourism related promotion brochures including mediation in the event of labor unrest and strikes. Provided however that labor rights are not jeopardized. SECTION 4. Non Applicability . The incentives granted under this Code shall not apply to banking financing and lending institutions which are governed by the General Banking Act and under the supervision of the Bangko Sentral ng Pilipinas. SECTION 5. The incentives and privileges granted to the registered members of this Local Investment-Incentives Code are non-transferable except in the event of death or permanent incapacity of the owner where the incentives and privileges shall be transferable to the heirs of the decedent in accordance with the law on succession if the applicant is a natural person. Mergers, consolidation, buy-outs and the like of corporation shall be decided on a case to case basis by the Board, provided that when such movement is done to strengthen the corporation and increase the investments, then such movement may be treated as an expanding business. SECTION 6. Incentives to Business Enterprise Employing Fifty (50) or more direct workers who are bonafide residents of the Municipality of New Lucena for a period of three (3) years. New business enterprises not eligible under this Code but can show proof that the business employs fifty (50) or more workers who are bonafide residents of the Municipality of New Lucena can still enjoy tax exemption/privileges provided for in this Code subject to the approval of New Lucena Investment-Incentives Board. Provided further, that the duration of tax exemption does not exceed three (3) years who are continuously employing the required number of local workers. SECTION 7. Tax Credits . Enterprises that have been granted incentives under this Code but paid their corresponding business taxes prior to the approval of the grant of incentives shall apply such payments as tax credits for its subsequent business tax obligations. ARTICLE VII Mandated Appropriations SECTION 1. In order for the New Lucena Investment-Incentives Board to operate effectively and ultimately serve the purpose for which they were created an initial amount of Fifty Thousand pesos (Php50,000.00) shall be appropriated which shall be taken from the general fund. ARTICLE VIII Repealing and Separability Clause and Final Provisions SECTION 1. Repealing Clause . This Code hereby repeals all other ordinances and resolutions inconsistent with any provisions of this Code. cSEDTC SECTION 2. Separability Clause . The provisions of this Code are hereby declared separable. Should any provisions herewith be declared unconstitutional and unlawful, the validity of one or more provisions shall not affect the validity of other provisions thereof. SECTION 3. Judicial Relief . All orders or decisions of the Board/Municipal Government in cases involving the provisions of this Code shall immediately be executory. Any appeal or petition from the aggrieved party adversely affected by the Code may be filed in the proper court. SECTION 4. Interpretation . Any dispute pertaining to the interpretation and implementation of this Code shall be resolved in favor of the Municipality. SECTION 5. Penal Provision . Any misrepresentation or violation of any of the provisions of this Code shall carry a fine not exceeding Two Thousand Five Hundred Pesos (Php2,500.00 or an imprisonment of not more than three (3) months or both at the discretion of the court. ARTICLE IX Amendments Amendments to any provision of this Code shall be done through an act of the Sangguniang Bayan. The New Lucena Investment-Incentives Board through its Chairman may propose an amendment to the Code if they find it necessary to spur and increase economic activity. Any amendment made to this code shall and will not affect the incentives already granted to registered enterprise. However registered enterprise may claim additional benefit/incentives made available upon the approval of the amendments through a written request from the Board. Approval thereof will be subjected to the discretion of New Lucena Investment-Incentive Board. ARTICLE X Effectivity This Code shall take effect ten (10) days after its approval and publication once in a Newspaper of general circulation in the Province of Iloilo and/or after posting in the Bulletin Board at the entrance of the Municipal Building in at least two (2) conspicuous and publicly accessible places in the municipality for two (2) consecutive weeks. RESOLVED FURTHER, to submit copy of this Code to the Office of the Municipal Mayor for approval and to the Sangguniang Panlalawigan, Province of Iloilo for review, copy furnished the Department of Trade and Industry Iloilo Provincial Office through its Provincial Director, the Municipal Treasurer and MPDC of New Lucena, Iloilo for information and guidance. Certified Correct: (SGD.) PHILINE R. SIMORA Secretary to the Sangguniang Bayan Attested: (SGD.) NESTOR S. SIBOLINAO Municipal Vice Mayor Presiding Officer With Our Concurrence: (SGD.) ERWIN S. SUSTENTO SB Member (SGD.) ISIDRO SALA SB Member (SGD.) TEODORO BARELA SB Member (SGD.) WILFREDO LABARO SB Member (SGD.) MA. LUISA ARMENTIA SB Member (SGD.) JACINTO ARANETA SB Member (SGD.) CHRISTIAN SORONGON SB Member (SGD.) NILO BALENTOS SB Member (SGD.) ISABELO ACOLLADOR SB Member (SGD.) BRYAN ERIC CEREBO SK Federation President Approved: (SGD.) LIECEL MONDEJAR-SEVILLE Municipal Mayor