Local Investment and Incentive (LIIC) of the Municipality of San Miguel, Leyte

July 31, 2017 Excerpt from the Minutes of the Regular Session of the Sangguniang Bayan, San Miguel, Leyte, Held at Barangay Hall, Barangay Santol, San Miguel, Leyte on July 31, 2017. RESOLUTION NO. 086-17 Sponsor: Hon. Clarissa Zita B. Laboga Chairman, Committee on Finance, Budget, Appropriations, Good Government & Accountability, Utilization and Tourism WHEREAS , the Local Government Code of the Philippines empowers the local government unit to grant tax exemption, incentives or reliefs to encourage investment for economic growth and progress in the countryside; WHEREAS , there is a need to grant tax exemptions and investment incentives to qualified enterprises in the Municipality of San Miguel to improve and develop the municipality's investments climate and attract both foreign and local investors in business and industry; WHEREAS , the comprehensive investment incentives program will serve to promote and attract private investments, both foreign and domestic, which could accelerate economic and tourism growth in the municipality and in the province as a whole; WHEREAS , it is hereby declared the policy of the Municipality of San Miguel to promote the inflow and direction of foreign and local investment capital within the municipality in order to promote and sustain economic and social development and generate employment opportunities, increase productivity and improve the quality of life of its constituents; WHEREAS , the Municipality of San Miguel shall pursue this policy of providing fiscal and non-fiscal incentives in identified preferred investment location areas and priority economic activities, within a well-defined and comprehensive action plan and guidelines to qualified foreign and domestic enterprises whether new or existing, which can significantly contribute to the business development of the Municipality. WHEREFORE , on motion of Hon. Clarissa Zita B. Laboga duly seconded by Hon. Nonita T. Gesma and Hon. Protacio Q. Brazil; RESOLVED , to enact the following ordinance: SAN MIGUEL MUNICIPAL ORDINANCE NO. 003-17 AN ORDINANCE ADOPTING AN INVESTMENT AND INCENTIVE CODE FOR THE MUNICIPALITY OF SAN MIGUEL, LEYTE Be it ordained by the Sangguniang Bayan of the Municipality of San Miguel, Leyte during its Regular Session, that: SECTION 1. This ordinance shall be known as the "LOCAL INVESTMENT AND INCENTIVE CODE (LIIC) OF THE MUNICIPALITY OF SAN MIGUEL, LEYTE." SECTION 2. Definition of Terms . Other than the terms that need to be defined in the LIIC, the LGU may refer to a standardized meaning from existing and relevant investments laws, rules and regulations such as EO 226, otherwise known as the "Omnibus Investments Code of 1987" as amended and the "National Internal Revenue Code" (NIRC), among others. The following terms that need to be defined in the LIIC are: 1. New Projects refers to a project/activity listed in the IPAs that has not started commercial operation undertaken by 1) A newly organized/formed enterprise; or 2) An existing enterprise that shall engage in an entirely distinct and different activity from its existing business operations; or the same activity provided it shall establish a new facility in an area not contiguous to the premises of its existing project and with new investments. 2. Expansion Projects shall mean installation of additional facilities/equipment that will result in increase in production capacity of the same product line within the same existing plant/facilities of the enterprise. For service-type activities , the same principle applies. 3. Modernization Projects In general, modernization must result in any of the following: a) At least 25% substantial reduction of production cost/cost of provision of the service; or b) Upgrading of product/service quality or classification of the facility ( e.g. , hospitals, hotels, resorts) to a higher class. 4. Existing Projects Project of an existing enterprise that has started commercial operation at the time of application with the Board that does not qualify as new expansion or modernization project. 5. Biodiversity (BD)-Friendly Businesses refers to those investments that either directly or indirectly support the protection of the flora and fauna species and other natural resources conservation initiatives and activities. These types of businesses should incorporate biodiversity relevant knowledge and technical resources management and development processes and practices that enhance BD resource conservation to include those businesses that directly or indirectly support BD ( i.e. , use of indigenous species, protection of flora and fauna and the like). 6. The National Economic Development Authority (NEDA) defines MSMEs in terms of capitalization as follows: (cite MSME Act) Micro below Php3 Million Small Php3 Million-15 Million Medium Php15 Million-not more than 100 Million Large Over Php100 Million SECTION 3. Local Investments and Incentives Board (LIIB). 1. Creation The LIIB is created to implement the provisions of the L1IC. 2. Composition of the LIIB as follows: Chairman - Local Chief Executive Vice-Chairman - President of the Local Business Sector Members: - The Local Planning and Development Coordinator - The Municipal Agriculture Officer - The Sanggunian Chairperson of the Committee on Trade, Commerce and Industry - Private Sector Representatives of significant Business/industry in the locality to be appointed by the Local Chief Executive, for a term of three (3) years , duly accredited by the Sanggunian - The Sanggunian Bayan Chairperson on Finance and Appropriation; - Municipal Budget Officer - Municipal Licensing Officer - Municipal Treasurer The LGU may invite representatives from National Government Agencies (NGAs) and other relevant stakeholders into the LIIB or as resource persons/advisers. 3. Meetings and Quorum of the Board The Board shall meet once a month or as necessary, on such day and time as it may fix. The presence of at least a majority of all the members shall constitute a quorum. All decisions and policies acted upon by at least the majority of the members present during the meeting, there being a quorum, shall be considered valid. CAIHTE 4. Powers and Functions of the Board The primary function of the Board is to establish a favourable and a stable policy on business climate which will encourage and support private sector investment and in the operation of business activities. Pursuant to this, the Board is generally vested with the following powers: a. Promulgate the Implementing Rules and Regulations (IRR) of the LIIC; b. Recommend to the Sanggunian any amendment on the Code; c. Adopt an Investments Promotion Program; d. Periodically review Investment Priority Areas (IPAs) eligible for incentives; e. Act on applications for registration of projects and availment of local incentives; f. Supervise the operations of the IPC; g. Establish cooperative undertakings with other LGUs, the private sector, NGOs or other institutions as may be necessary; h. Enlist the assistance of local government offices, national agencies and private sector organizations, as may be necessary, useful and incidental to the effective and efficient implementation of the LIIC; (possibly transfer to IPC) i. Establish trade and investment satellite offices in such other places as may be necessary to effectively carry out its mandates; and j. Perform such other tasks necessary and incidental to the exercise and performance of their functions. 5. Powers and Functions of the Chairperson The Chairman of the Board shall have the following powers and duties: a. To preside over the regular and special meetings of the Committee; b. To sign the Certificate of Registration in accordance with the rules and regulations of this Code; c. Generally, to exercise such other powers and perform such other duties as may be necessary to carry out the objectives of this Code. 6. Powers and Functions of the Vice Chairperson The Vice-Chairman of the Board shall have the following powers and duties: a. To preside over the regular and special meetings of the Committee in the absence of the chairperson; and b. To perform such other duties and functions as may be necessary for and in behalf of the latter. 7. Visitorial Power of the Board The Board or any duly authorized member thereof, shall be empowered and authorized to conduct an ocular inspection of the premises or examination of the business activity of any enterprise, including the records and books of any enterprise, registered or applying for registration at any reasonable time of the day, during office hours, for verification or ascertaining the enterprise's compliance with the provisions of the Code, or when the Board deems it necessary or incidental to the effective exercise and performance of their respective functions and powers. SECTION 4. Investments Promotion Center (IPC). 1. Creation The Investments Promotion Center (IPC) is created to carry out the objectives of the LIIC. The IPC is a generic name of the lead office on investments promotion. The IPC may either be a stand-alone office or subsumed under a relevant existing office. 2. Working Force of the IPC The Board appoints the head of the IPC who may be the Local Economic and Investments Promotion Officer (LEIPO) in accordance with DILG Memorandum Circular (MC) 2010-113 on the Designation of Local Economic and Investments Promotion Officers (LEIPOs)/Investments Promotion Officer (IPO)/PPDO. 3. Functions of the IPC The IPC as One-Stop-Shop shall serve as the Technical Secretariat of the Board and shall take an active role in implementing the Code. In addition, it shall have the duties and functions: a. Prepare and implement the annual investments promotion plan as approved by the Board; b. Receive, process and evaluate applications for registration and applications for the availment of the local incentives and submit its recommendation to the Board within a specified period from the receipt of application; c. Assist in: (1) Securing Licenses and Permits; (2) Identifying business or joint venture partners, raw materials suppliers and possible business sites; (3) sourcing out skilled manpower and service providers; (4) Facilitate in resolving issues and concerns encountered by investors, among others; d. Render after care services to registered enterprises/locators; e. Monitor and evaluate project implementation of registered enterprises; f. Establish and update data bank on general business information; g. Strengthen networking relationships; h. Prepare and disseminate investment promotion collaterals ( i.e. , brochures, industry and project profile as well as the cost of doing business in the LGU; i. Conduct briefings to investors; j. Represent the LGU in trade and investments meetings, conferences, fora, conventions, and other similar gatherings in both domestic and foreign venues whenever so directed by the Board; k. Collate, analyse and compile pertinent data and studies concerning areas that have been or may be declared as "Investment Priority Areas"; l. Recommend to the Board any modification/amendments to existing legislation and procedures on local investments; m. Perform such other functions as may be necessary to implement the intent of the Code. SECTION 5. Investment Priority Areas (IPAs). Determining Investment Priority Areas (IPAs) a. The LGU through the IPC shall formulate its IPAs, consistent with the IPP, the CDP and CLUP, Zoning Regulations and such other criteria that will ensure sustainable and equitable economic and social development. The LGUs, however are not precluded from including in their IPAs other activities that suit their needs as long as it is within the "metes and bounds" of laws, rules and regulations, and or ordinances. b. The following may be considered in determining the IPAs of the LGU: > The potential of such areas of investments for creating productive employment considering the necessity for the dispersal of industries in less developed areas on a planned and balanced basis to the extent that it is economically feasible and practicable; > The availability of local/indigenous raw materials and manpower needed for said project; > The LGUs may include in its CPAs green projects, i.e. , signboards and the likes. An enterprise utilizing public property for its signboard may be free of any fees, tax or charges. Provided that , it promote environmental consciousness, or other slogans or caricature supportive of growth and development. Provided further that , the enterprise name and logo shall be of a size and dimension that will not over shadow the aesthetic beauty of the project nor the message of the signboard duly approved by the appropriate office in the LGU; > Agriculture and eco-tourism is on the top list of priorities for development. Over and above the activities listed therein, the LGU may encourage organic agriculture, including the production of organic fertilizers of plant and animal origin, production of microbial fertilizer with nitrogen fixing organism and the like which are considered BD-friendly businesses such as in green economy. DETACa > The 'green economy' describes the recent business trend towards the production of environmentally-friendly goods and services that are more sustainable in the long-term and can thus moderate climate change and biodiversity loss ( i.e. , Renewable energy production; Green transportation; Carbon capture; Green building practices); > The criteria for identifying and specifying Biodiversity-friendly businesses are classified according to the three (3) E's of sustainable development, that is, ecology, economy, and equity. c. A periodic review of the IPAs should be undertaken. The following factors may be considered for the amendment of the IPAs. For purposes of inclusion of additional areas in the list of IPAs: > Number of local residents to be employed by the enterprise; > High degree of value added features; > Creation of linkages with local industries such as joint ventures with local investors; > Projects of historical or cultural value such as restoration of historical buildings, cultural revivals, etc. in accordance with the program for historical or cultural revival of the locality. For purposes of exclusion from the current list of IPAs: > Sufficient investments in the area has been attained; > Continued extension of incentives is no longer to the interest and benefit of the locality; > The investment area or activity cannot attract investors within a reasonable time and cost may result in unfavourable business climate; and > Lack of progress in the implementation of an environmental management plan. SECTION 6. Registration. 1. Pro-Qualification Requirements For purposes of application for registration and availment of incentives under the LIIC, the following qualifications must be complied with: a. The enterprise must have complied with all the requirements mandated under existing laws, rules and regulations for doing business in the Philippines; b. The activity engaged in must be listed in the IPAs of the LGU; c. The place of operation or production be located within the territorial jurisdiction of the LGU; d. Specified percentage of its workforce must be bonafide residents of the LGU giving equal opportunities for men, women, the poor, indigenous people and physically handicapped; e. Project must have safeguards against pollution or resource use if necessary. 2. Types of Projects for Registration a. New Projects b. Expansion Projects c. Modernization Projects d. Diversification Projects 3. Documentary Requirements a. Single Proprietorship > Copy of Business Name Registration issued by the Department of Trade and Industry (DTI) > Copy of audited Financial Statements (if existing) > Copy of Completed Application Form for registration under the LIIC; and > Such other documents that may be required by the LGU to be submitted. b. For Partnership/Corporation > Copy of the Articles of Partnership or Incorporation; > Certified True Copy of its Certificate of Registration issued by the Securities and Exchange Commission (SEC), for Corporation/Partnership; > Resolution of the Applicant's Board of Directors, in case of a Corporation authorizing the filing of application; > Copy of Audited Financial Statements (if existing); > Certificate (ECC) or Non-Compliance (NCC), if applicable; > Copy of completed application form for registration under the LIIC; and > Such other documents that may be required by the LGU to be submitted. c. For BOI Registered Enterprises > Certified true copy of the BOI Certificate of Registration; > Copy of the documents submitted to BOI pertaining to their registration. 4. Registration Procedures a. Filing of Applications All applications shall be filed with the Investments Promotion Center (IPC) of the LGU. b. Check Listing/Assessment of Documents Client presents documents for check listing on its completeness and consistency of information. c. Date of Official Acceptance Only complete application shall be officially accepted and registered in the Registration Book. Date stamped on the application shall be considered as the date of official acceptance of the application. d. Notice of filing of application in provincial, city, municipal or barangay hail shall suffice publication requirement. e. Order of Payment shall be issued for complete application for payment of the necessary fees. f. Evaluation/Approval of Application Once an application is officially accepted, the project will be evaluated by the IPC, which may conduct an ocular inspection at the premises of the business, if necessary. The evaluation of the application shall be presented for the action of the Board. If the application is approved, the IPC shall notify the applicant and inform the Treasurer/s and the Assessor/s of such approval, guidance and appropriate action. If the application is denied, the IPC shall inform the applicant in writing. In both cases, a Board Resolution shall be entered in the minutes of the meeting of the Board. g. Processing Time The processing time from date of official acceptance until the Board may act on the recommendation of the IPC should be indicated in the Code. A proviso to the effect that the inaction of the Board within the specified period to act on the application is to be construed that the application is deemed approved. h. Filing Fee A non-refundable filing fee shall be paid together with the required documents for registration. Micro enterprises may be exempted from the application fees while small enterprises may be given a 75% reduction of registration fees. aDSIHc i. Certificate of Registration Upon approval, an enterprise shall be issued a Certificate of Registration with the signature of the Chairman of the Board or such other officer as the Board may designate for the purpose as the need arises. It shall state among others, the following: (1) Name of the Registered Enterprise; (2) The Investment Priority area (IPA) in which the registered enterprise will engage in; (3) The incentives granted and period of its availment; and (4) Such other terms and conditions to be observed by virtue of its registration. (5) No double availment of incentives/benefits under different laws and/or programs. (6) Prior Consent of NCIP . The enterprise must secure from the Office of the National Commission on Indigenous Peoples a Free and Prior Informed Consent (FPIC) should the proposed site of investment be located within the ancestral domain claim of the indigenous people. (7) Support to Micro, Small & Medium Sized Enterprises (MSMEs) The Board of Investments (BOI) promotes the unfolding of MSMEs on account of their contribution to employment generation, countryside development and the cultivation of the Filipino entrepreneurial spirit. The following assistance given to BOI registered MSMEs may be considered by the LGU: a. Preparation of simplified project application; b. Identification of MSMEs support companies, c. Exemption from payment of application and registration fees; d. 75% reduction in the application and registration fees for small enterprises; e. Exemption from the 25% equity requirement; f. Reduction of application fee for incentives; g. Posting of notice of filing of application in provincial, city, municipal or barangay hall in lieu of the publication in newspaper of general circulation; h. Simplified documentary, reportorial requirements and applications for Incentives. (8) Article 61 of Republic Act (RA) 9520, otherwise known as "The Philippine Cooperative Code of 2008 (check if 2010 or 2008) and RA 7916, otherwise known as "The Special Economic Zone Act of 1995" provides for the tax breaks of cooperatives and locators of eco-zones, respectively. SECTION 7. Incentives. 1. Fiscal Incentives The following fiscal incentives may be given to enterprises consistent with the Local Revenue Code and Book II of the Local Government Code which may include the following: a. Exemption from local business taxes pursuant to Section 133 (g) of the LGC; b. Tax Exemption Privileges through ordinances duly approved pursuant to Section 192 of the LGC; c. Exemption from the payment of postal charges of fees pursuant to Article 282 of the LGC; (check with BLGF-postal code) d. Exemption from special levy on real property pursuant to Section 235. General Policies on Local Fiscal Incentives a. The incentive shall be granted only to new, expanding and or modernization projects locating in the LGU. b. Exemption under Section 133 (g) of the Local Government Code (LGC) shall be for a period of six (6) years, for pioneer and four (4) years for non-pioneer from the date of registration; Exemptions under the LIIC shall be in addition to the incentives provided under Executive Order No. 226 or the "Omnibus Investments Code of 1987". Provided that, they register with the LIIC. Otherwise, their incentives shall be limited to Sec. 133 (g) of the LGC. c. The grant of tax incentives pursuant to Article 282 (Postal Charges) of the LGC's IRR and Section 192 (authority to Grant Tax Exemption Privileges) of the LGC should not be more than (1) year from the actual date the start of business operations. (check if amended) d. The period of exemption from special levy should not be more than one (1) year. The incentive shall pertain only to the share of the LGU granting the fiscal incentive. e. The exemption should not extend to fees and charges imposed for services rendered by the LGU, such as garbage fees, sanitary inspection fees, electrical inspection fees and similar others. As well as rental for use of public utilities owned and operated by the local government such as charges for actual consumption of water, electric power and toll fees for use of public roads and bridges and the like, and those levied for the use of government facilities and properties. f. The grant shall apply to all businesses similarly situated subject to the pertinent provisions of this Code. g. The exemption granted shall take effect only during the next calendar year for a specified number of years unless specified herein. h. On shared revenues, the exemption shall pertain only to the share of the local government unit granting such exemptions or relief unless the LGU concerned shall extend the same privilege to such enterprise qualified under this Code. Real Property Fiscal Incentive The period of fiscal incentive should not be more than one (1) year. The incentive shall pertain only to the share of the LGU granting the fiscal incentive. Incentives to Regional or Area Headquarters (RHQ) or Regional Operating Headquarters under Article 66, Chapter IV of RA 8756 (Amended Book III of EO 226) "Art. 66. Exemption From all Kinds of Local Taxes, Fees or Charges. The regional or area headquarters and regional operating headquarters of multinational companies shall be exempt from all kinds of local taxes, fees, or charges imposed by a local government unit except real property tax on land improvements and equipment." Green Incentives Exemption from Payments for Environmental Services (PES) Incentives for enterprises engaged in payments for environmental or ecosystem services with poor, marginalized communities or local governments for environmental protection and climate change adaptation. PES contributions may be in the form of direct technical and financial assistance on sustainable livelihood activities that will reduce the poor's vulnerability to climate change, financing protection or rehabilitation of degraded ecosystems, and other environmental activities formally agreed on with concerned communities and local government units. a. An enterprise availing of the green investment incentive shall file an application with the IPC regarding its intent to undertake a green/social activity, the location and the date. Said activity shall either be a regular activity or that can be completed within the timeframe approved by the LIIB. b. The IPC shall be in charge of issuing a certification that the registered enterprise is in its environmental services program, or has undertaken regular green and socially responsible activities and is qualified for the incentive. c. After due verification of contributions to payments for environmental or ecosystem services program, urban greening and restoration, reforestation and planting of tress, and similar investments, the IPC shall issue a certification indicating the costs of such activities. Such certification shall be presented to the local treasurer concerned during the payment of the business tax to avail of the incentive. d. This incentive is non-transferrable. In case of a change of ownership of the enterprise, the incentives shall not be transferred to the new owner, but shall continue to be enjoyed by the original owner and applied to his new business enterprise, if any, provided that, the period of incentive shall expire within a given period from the date of application regardless of whether the owner availed of it or not. The new owner of the enterprise has the option to apply for green incentives, provided further that, the enterprise continues its green initiatives and complies with all the requirements to avail of the incentives. e. The LGU shall have the right to reappraise the cost of the re-greening or landscaping in case it finds the reported cost excessive. f. This incentive may be availed of only once every three years. 2. Non-Fiscal Incentives The following assistance shall be accorded to investors. a. Provide a one-stop documentation for simplified documentation/registration procedures, which shall be facilitated with the assistance from the IPC; b. Support industrial peace through reconciliation and mediation efforts of the IPC; c. Assist investors in securing electric power and water supply connection; d. Coordinate the negotiation of special rates for utilities for industries with a certain minimum load; e. Assist investors in their site selection and negotiation for right of way; f. Network with concerned national agencies such as Technical Education Skills and Development Authority (TESDA) and other similar institutions for trainings of workers to enhance skills of manpower of the enterprise; g. Facilitate outbound and inbound missions of investors; and h. Such other after care services that may be accorded to investors. CORPORATE SOCIAL RESPONSIBILITY (CSR) OF REGISTERED ENTERPRISES BOI registered enterprises with projects under pioneer status must undertake Corporate Social Responsibility (CSR), whereas , those on non-pioneer status are encouraged to undertake CSR, to the extent possible, in accordance with the development plan of the community where the registered project is located. To sustain environmental protection, adaptations to climate changes and reduce poverty in the local areas the following may be undertaken as CSR of registered enterprises such as but not limited to: Greening/Re-greening of Area a. Rehabilitation and Restoration of buildings or other structures in accordance with the municipal urban renewal or restoration plan of the LGU. b. Re-greening or landscaping may be in the form of urban greening or landscaping such as major road sides; areas with historical or tourism value; areas in biographic zones; eroded slopes as technically appropriate based on assessment by competent authorities; public open spaces especially in residential and commercial areas including street islands, parks, promenades, parking area peripheries, and the like. Provided that, the enterprise takes care of the maintenance of the trees and plants, otherwise, reimbursement of the incentive granted shall be due and demanded. TIADCc Social Projects a. Housing for Employees b. Educational Projects c. Cultural Revivals d. Programs for Women, Children, Elderly, Disabled, Out of School Youths and Indigenous Peoples e. Community infrastructure projects aligned with the development plan of the LGU and f. Such other projects or activities based on the development needs of the community where the project is located or identified under NAPC. PROVISIONS FOR ENVIRONMENTAL PROTECTION Environmental Impact Assessment Environmentally critical projects or enterprises locating their activities or expansion projects in environmentally critical areas shall comply with the requirements of Presidential Decree No. 1586 (Philippine Environmental Impact Statement System) and related issuances of the Department of Environment and Natural Resources. Hazardous Substances Projects involving the handling transport, processing and storage of toxic, hazardous substances and/or nuclear waste shall not be entitled to any incentives. Specific prohibitions. (a) No industrial or manufacturing facility shall be operated without proper air pollution devices, wastewater treatment facilities, and solid waste management facilities; (b) No industrial or manufacturing plant shall be operated at all levels beyond the operating capacity of their respective waste treatment facilities in order to maintain the effluent quality within the standards required by law; (c) All Industrial and manufacturing establishment shall subject their operations and premises, facilities and systems to periodic environmental compliance monitoring, which shall be conducted by the LGU in coordination with the Department of Environment and Natural Resources. Refusal to be subject to such inspection shall be sufficient ground for the forfeiture of any incentive and the revocation of its Certificate of Registration and/or Business Permit by the concerned local government units. Regulation The LIIB shall ensure that the green and socially responsible projects undertaken by enterprises on public property shall be in harmony with the overall environmental management program of the LGU and/or local government concerned as determined by the appropriate LGU office. SECTION 8. Budget Appropriations . Provision for appropriation covering the expenditures to operationalize the Local Investments and Incentives Board (LIIB) and the Investments Promotion Center (IPC) shall be provided through regular or supplemental budget. Revenues from the Operation of the Code. The LGU may provide that income derived from the operation of this Code shall go to the special coffers captioned "Investments Promotion Fund". Said fund shall be used solely for the operation and maintenance and other operating expenses of the IPC of the LGU; Immediate Release of Fund. For purposes of expediting the operations of the IPC, its allocation for the Investments Promotion Fund shall be immediately released. SECTION 9. Final Provisions. Penal Clause . Any violation of the provision of the Code shall be a ground for the cancellation or revocation of the Certificate of Registration of the project/business. The cancellation or revocation of the Certificate of Registration shall mean the withdrawal of all the incentives granted under the Code; and all fees and charges previously exempted shall become due and demandable. Grounds for the Cancellation of the Certificate of Registration are as follows: 1) Violation of the provisions of the Code and such other violation of laws, rules and regulations or ordinances 2) Violation of the terms and conditions specified in the Certificate of Registration 3) Material misrepresentation Appeal from the Decision of the LIIB . The applicant or business enterprise adversely affected by any decision of the Board relative to its cancellation/revocation of registration or the impositions of fines/penalties in accordance with this Code may file a motion for reconsideration within 15 days from receipt of the decision, otherwise the decision shall become final and executory. Refund and Penalties In case of the cancellation of the Certificate of Registration, the LIIB shall require the refund of incentives availed of and impose corresponding fines and penalties. SECTION 10. Modification in the Systems and Procedures in the Offices of Local Government Units within a Province. Municipalities and component cities within the territorial jurisdiction of a Province shall as much as possible modify their systems and procedures in the issuance of applicable permits and license so as to be consistent with the provisions of the Local Investments and Incentives Code. The City or Municipalities must coordinate with the Province for the proper guidance on matters of incentives ( i.e. , real property tax). SECTION 11. Separability Clause. If, for any reason, any portion or provision, section or part of this Code is declared not valid by a Court of competent jurisdiction or suspended or revoked by the Sanggunian, such judgement shall not affect or impair the remaining portions, provisions, sections, or parts thereof which shall remain or continue to be in full force and effect. SECTION 12. Repealing Clause . All ordinances, rules and regulations, or part thereof, in conflict with, or inconsistent with any provisions of the Code, shall be considered repealed, amended or modified accordingly. SECTION 13. Effectivity . This ordinance, otherwise known as "The Local Investments and Incentives Code of the Municipality of San Miguel, Leyte shall take effect 30 days after its approval. DATE APPROVED July 31, 2017 I HEREBY CERTIFY to the correctness of the foregoing resolution/ordinance. (SGD.) EDNA D. SANTO LLSA II/Acting Secretary Concurred by: (SGD.) HON. CHARLIE L. GUY SB Member (SGD.) HON. NONITA T. GESMA SB Member (SGD.) HON. CLARISSA ZITA B. LABOGA SB Member (SGD.) HON. PROTACIO Q. BRAZIL SB Member (SGD.) HON. MATUSALEM S. CALAMAYA SB Member (SGD.) HON. ANTONIO L. ASIS SB Member (SGD.) HON. NORMAN D. SABDAO SB Member (SGD.) HON. ROSARIO M. CABILLAN SB Member (SGD.) HON. THELMA M. BRAZIL Ex-Officio Member, President, Liga ng mga Barangay Attested by: (SGD.) HON. ATILANO L. OBALLO Municipal Vice-Mayor/Presiding Officer Approved: (SGD.) HON. CHEERYL ENRICA L. ESPERAS Municipal Mayor