An Ordinance Promulgating the Valenzuela City Investments and Incentives Code of 2012

May 27, 2013 VALENZUELA CITY ORDINANCE NO. 082-13 AN ORDINANCE PROMULGATING THE VALENZUELA CITY INVESTMENTS AND INCENTIVES CODE OF 2012 AND PROVIDING FOR APPROPRIATIONS THEREOF Authored by: Councilor Lorena Natividad-Borja Co-Authors: Councilor Antonio R. Espiritu, Councilor Kate Abigael Galang-Coseteng, Councilor Shalani S. Soledad-Romulo, Councilor Lailanie P. Nolasco, Councilor Corazon A. Cortez and Councilor Ramon L. Encarnacion ** Excerpts from the minutes of the 117th Regular Session of the 5th City Council of Valenzuela held on May 27, 2013 at 2:36 P.M. at the City Council's Session Hall, 3rd Floor, Legislative Building, Valenzuela City Hall, Karuhatan, Valenzuela City, Metro Manila. WHEREAS, Section 17 of the Local Government Code mandates the Local Government Unit to exercise power and discharge such other functions and responsibilities as are necessary, appropriate or incidental to efficient and effective governance such as providing their constituents the basic services and facilities which includes investment support services; WHEREAS, local government units are encouraged to play an active role in attracting more investments by providing an enabling environment that will generate and enhance economic activities in the area; WHEREAS, one of the ten point agenda of the City Government of Valenzuela is to prioritize investment that would stimulate and enhance economic development thereby generating employment, creating opportunities for its constituents, increasing the quality of craftsmanship of the workforce, invigorating consumer interest, and improving technology and other support services; WHEREAS, forging of cooperative alliances between the government and the private sector, local and foreign entities alike, will greatly help make Valenzuela City to become the next pivotal investment center and business hub of the metropolis; WHEREAS, the Doing Business in the Philippines 2010, in collaboration with the Asian Institute of Management Policy Center, conducted a comparative study regarding the regulatory environment for business in twenty-five (25) cities in the Philippines whereby Valenzuela City consistently ranked among the top. Further, Valenzuela City was also adjudged as the "MOST IMPROVED CITY" for the year 2010, in improving business regulation and empowering entrepreneurs; WHEREAS, not only is it imperative but more importantly, now is the opportune time for the city to come up with investment-friendly laws and policies to attract and provide incentives to investors without compromising the welfare of the people of Valenzuela City; EHSCcT WHEREAS, the enactment of a Valenzuela Investments and Incentives Code is deemed necessary not only to serve as a cutting edge for a sustainable-economic growth but also to provide instruments that will make the City an effective link to global trade/economy; NOW, THEREFORE, be it ORDAINED as it is hereby ORDAINED by the Sangguniang Panlungsod of Valenzuela in session assembled: CHAPTER I General Provisions SECTION 1. Title . This Code shall be known as the "LOCAL INVESTMENTS AND INCENTIVES CODE OF 2012" (LIIC). SECTION 2. Declaration of Policy . The City Government of Valenzuela, through the Local Investments and Incentives Code (LIIC) shall set the policy guidelines for investments in the area. Such policies shall include the following: 1. Incentives to be established shall be fair, clear, time-bound, and consistent with national laws. It shall ensure a level playing field to all who do business in the locality. 2. The incentives shall support and promote the development vision of the City Government of Valenzuela as expressed in its Comprehensive Development and Land Use Plans. 3. The Investment policies and programs of the City Government of Valenzuela should be aligned with and supportive of regional and national thrusts, including but not limited to institutionalization of business streamlining activities, i.e. , post-audit process in the issuances of permits and/or licenses; online transactions such as online assessment, payment and releasing; use of the Presumptive Income Levels Approach; GIS Connectivity; Philippine Business Registry connectivity and all other similar activities aimed to have investment enabling environments. ICTcDA 4. Industries/business to be set up in the locality shall minimize adverse impacts and enhance positive effects on the environment (Do no harm), by undertaking efficient solid waste management and reducing greenhouse gas emissions which contribute to climate change, and shall take appropriate measures for disaster risk reduction and management, among others. 5. Industries/business shall treat their employees and contractors fairly, respect their dignity, well-being and diversity and comply with labor laws and other legislations. 6. Businesses and industries shall ensure safe and healthy working conditions for employees and contractors or the business that locate in the community and shall safeguard the health and safety of those affected by the business by producing healthy and safe products, etc. 7. Business and industries shall provide opportunities and protection for women, children, disabled and indigenous people and contribute to improved quality of life through corporate social responsibility programs. SECTION 3. Coverage . The Local Investments and Incentives Code shall articulate the local government's investment policies and programs, the local fiscal and non-fiscal incentives available to investors, both foreign and domestic, and the mechanics for availing them. It shall also define the composition, the roles and functions of the Local Investments Board and the programs and services of the Investments Promotion body. It shall be a tool developed through a multi-stakeholder approach, for investments attraction, retention, expansion and diversification of economic activities supportive of the development vision of the City Government of Valenzuela. caIACE SECTION 4. Definition of Terms . A. The "Board" shall mean the Board of Directors of the Valenzuela City Investment and Incentives Board (VCIIB) as created pursuant to the Valenzuela Investment Code. B. "Registered Enterprise" shall mean any individual/single proprietorship, partnership, cooperative, corporation or other entity incorporated and/or organized, duly registered with the Securities and Exchange Commission with a legitimate license to operate business. The conduct of business to be approved by the VCIIB shall conform to existing national laws and local ordinances. C. "Foreign Loans" shall mean any credit facility or financial assistance other than equity investment denominated and payable in foreign currency or where the creditor has the option to demand payment in foreign exchange registered with the Central Bank and the Board of Investment. D. "Foreign Investment" shall mean equity investment owned by a non-Philippine national made in the form of foreign exchange or other assets actually transferred to the Philippines and registered with the Central Bank and the Board of Investment which shall assess and appraise the value of such assets other than foreign exchange. E. "Philippine National" shall mean a citizen of the Philippines or a diplomatic partnership or association wholly owned by citizens of the Philippines or a corporation organized under the laws of the Philippines which at least 60% of the capital stock outstanding and entitled to vote is owned and held by citizens of the Philippines. F. "Preferred Areas of Investment" shall refer to economic activities that the VCIIB shall have declared as such in accordance with the Investment Priority Plans (meaning it has been deemed by the board as economically, technically and financially sound). G. "Pioneer Enterprise" shall mean registered enterprise that: (1) engages in the manufacture, processing, or production and not merely in the assembly or packing of goods, products, commodities or raw materials that have been or are not being produced in Valenzuela on a commercial scale; and/or (2) uses a design, formula, scheme, method process or system of production or transportation of any element, substance or raw material or finished goods which is new and untried in Valenzuela; and/or (3) produces non-conventional fuels or manufactures equipment which utilize non-conventional source of energy in its production, manufacturing or processing operations. That the production of the final products in any of the foregoing instances involves the substantial use and processing of raw materials. LexLib H. "Non-Pioneer Enterprise" shall include all registered producer enterprises other than pioneer enterprises. I. "Expansion" shall include modernization/rehabilitation/increase of existing volume or value of production and/or upgrading of the quality of the registered product or utilization of inefficient or idle equipment under such guidelines as the VCIIB may adopt. J. "Processing" shall mean converting a raw material or any materials into marketable form through physical, mechanical, chemical, electrical, biochemical, biological or other means or special treatment or a series of actions such as slaughtering, milling, pasteurizing, drying or desiccating, quick freezing, among others, resulting to a change in the nature or state of the products. CHAPTER II The Valenzuela City Investment Board (VCIB) SECTION 5. The Valenzuela City Investment and Incentives Board (VCIIB) , through a duly issued Executive Order, shall hereby be created to implement the provisions of the LIIC. The Investment Board shall be composed of the following to wit: a. City Mayor as its Chairperson; b. City Administrator or any government official in the same rank, as its Vice-Chairman; aDHCcE c. The members of the Board shall be composed of the following: 1. City Councilor Chairperson of the Committee on Trade, Commerce and Industry; 2. City Councilor Chairperson of the Committee on Appropriation, Ways and Means; 3. At least two (2) Department Heads representing major local economic drivers; 4. Three (3) Private Sector Representatives representing significant business/industry in the locality to be appointed by the Local Chief Executive, for a term of two (2) years. The City Government of Valenzuela may invite representatives from National Government Agencies as resource persons/advisors. SECTION 6. Meetings and Quorum of the Board. The Board shall meet once a month or as may be necessary, on such a 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. SECTION 7. Powers and Functions of the Board. The primary function of the Board is to help establish a favorable 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 generally shall be vested with the following powers: a. Promulgate the Implementing Rules and Regulations of the LIIC subject to the approval of the Sanggunian; AEDISC b. Recommend to the sanggunian any amendments on the Code; c. Adopt a short and medium-term investments promotion program; d. Identify and review investment priority areas eligible for incentives; e. Deliberate on applications for registration and availment of local incentives as provided for in Sections 27, 28 and 29 for approval by the Local Chief Executive; f. Identify additional economic activities may be included in the list of priority investment areas upon approval of the Board and shall then be adopted by the local government. The inclusion of investment priority areas should be based on factors that give value adding to the locality, such as: 1. Number of local residents to be employed by the enterprise; 2. High degree of value added features; 3. Creation of linkages with local industries such as joint ventures with local investors; 4. Investment such as those that fall under Green Technology such as organic agriculture, environmental preservation and alternative power sources; 5. Re-greening, landscaping, restoration of historical buildings, cultural revivals, etc. in accordance with the program for historical or cultural revival of the locality; AHEDaI 6. Investments in social or community projects designed to benefit the poor and disadvantaged sectors. g. Supervise the operation of the Investments Promotion Center; h. Establish cooperative undertaking with other LGUs, the private sector, NGOs or other institutions as may be necessary; i. Secure additional funding from other sources to supplement the budgetary support provided by the local government for the operation of the Board and the Investment Promotion Center; j. 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 this Code. k. Establish trade and investment satellite offices in such other places as may be necessary to effectively carry out its mandates and; l. Perform such other tasks as are necessary and incidental to the exercise and performance of their functions. SECTION 8. Powers and Functions of the Chairperson. The Chairperson of the Board shall have the following powers and duties: (a) To preside over the regular and special meetings of the Board; (b) To approve application of qualified applicants in accordance with the rules and regulations of the Code; and DTAESI (c) Generally, to exercise such other powers and perform such other duties as may be necessary to carry out the objectives of this Code. SECTION 9. Powers and Functions of the Vice Chairperson. The Vice Chairperson of the Committee shall have the following 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 of the Chairperson in the absence of the latter, and such other duties as may be necessary and required by the Board. SECTION 10. Visitorial Power of the Board or Center. The Board, the Center, 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 or Center deems it necessary or incidental to the effective exercise and performance of their respective functions and powers. SECTION 11. Creation of the Local Investment and Promotion Council. The Local Investments and Promotion Council, through a duly issued Executive Order is hereby created to be composed of, but not limited to, the following representatives: TSHIDa 1. Local Economic Incentives Promotions Officer; 2. City Legal Officer; 3. City Planning and Development Officer; 4. Head of the Business Permits and Licensing Office; 5. Head of the Cooperative Development Office; 6. Head of the Information Technology Office; 7. Head of the Public Information Office; 8. Head of Workers Affairs Office; 9. Official representative of the Department of Trade and Industry; 10. Official representative of the Board of Investments; 11. Official representative of the Department of Tourism; and 12. Official representative of the National Economic and Development Authority; and 13. Representatives of the Business Sector in Valenzuela City. The Council, which shall serve as the Advisory Board of the VCIIB shall from time to time be convened and consulted by the VCIIB, regarding legalities and technicalities involved in the proper implementation of the LIIC, and so as to avoid any ultra-vires acts. TcSICH CHAPTER III The Valenzuela City Investments Promotion Center SECTION 12. The Valenzuela City Investments Promotion Center . A center is hereby created to be known as "The Valenzuela City Investments Promotion Center" headed by the Local Economic Incentives Promotions Officer as designated by the City Mayor which shall be composed of: a. Local Economic Incentives Promotions Officer, and b. At least two (2) personnel The Office of the City Mayor, through the Human Resource and Management Office, is hereby authorized to transfer and/or detailed existing city government employees to serve as center personnel. SECTION 13. Functions of the Center. The Center shall serve as the Secretariat of the Board and shall take an active role in implementing this Code. In addition, it shall have the following duties and functions: a) To undertake pro-active market development and investment promotion activities; b) To implement the annual investment promotions and development plan as formulated and approved by the Board; c) To serve as one-stop shop for receiving, processing and evaluating application for registration for the availment of the local incentives and submit its recommendation to the Board within five (5) working days from the receipt of application; d) To assist in (1) securing licenses and permits, (2) arranging for the availment of local and national government incentives, and (3) identifying business or joint venture partners, raw materials suppliers, possible business sites and other requirements of existing and potential investors and enterprises; CacTSI e) To establish and maintain a data bank on general business information, information on economic activities, available technology, financing sources and other relevant data or information; f) To establish and maintain networking relations with counterpart investment promotion organizations and coordinate with support agencies of government and the private sector in investment promotions efforts; g) To spearhead the production, publication and dissemination of investment promotions collaterals and whenever needed, conduct briefings to investors and other interested parties; h) To represent the City Government of Valenzuela in trade and investments meetings, conferences for a conventions, and other similar gatherings in both domestic and foreign venues whenever so directed by the Board; i) To build the competence of the staff to conduct investment promotion functions; j) To collate, analyze and compile pertinent data and information and studies concerning areas that have been or may be declared as "Preferred Areas of Investment" by the Board; k) To recommend to the Board any modification/amendments to existing legislation and procedures on local investments; l) To conduct appropriate and relevant studies, gather and analyze pertinent facts and figures, and inform the Board on international, national and local issues affecting the dynamics of investments; and to initiate, organize and participate in promotional activities, such as exhibitions, conferences and seminar for the stimulation of investments; HAECID m) To prepare the agenda for meetings of the Board and submit for its consideration and approval policies and measures which are deemed necessary to carry out the provisions of the Code; n) To submit annual reports to the Board through the Chairperson on the activities of the Investment Promotion Center relative to the implementation of this Code; o) To monitor and evaluate project implementation of registered enterprises under this Code for purposes of ensuring that the objectives of the same are accomplished; p) To recommend applicants for employment in the registered enterprises; q) To identify problems and difficulties being encountered by investors and offer viable solutions and render necessary assistance to them; and r) To perform such other functions as may be directed by the Board. SECTION 14. Support Services of the Center. The Center shall aim to provide the following support services: 1. Investor Assistance and Servicing . Assist existing and prospective investors by providing assistance such as: a. One-stop documentation services (facilitating business permits, licenses, incentive availment); cEaACD b. Investment counseling; and c. Business matching. 2. Investment and Trade Promotion and Generation. Handle promotional activities that will directly influence infusion of investments and influx of trade and tourism, such as: a. Trade and investment missions; b. Investment fora/seminars; c. Direct investment marketing; d. Trade fairs and exhibits; e. Investment briefings/orientations; f. Setting-up of a showroom/exhibition area; g. Promo collaterals preparation and dissemination. 3. Information Management and Development. In the area of information and development, the Center shall: a. Handle data generation, processing and packaging; b. Handle data storage and retrieval; c. Support direct investor servicing through operation of an on-line information assistance desk; ACIDSc d. Review existing incentives and prepare recommendations and/or policy papers for its improvement; e. Prepare project profiles, pre-investment studies, viability and feasibility, industry profiles and situationers. 4. Image Building a. Painting an image of the LGU as an attractive investment destination; b. Tri-media promotion collaterals; c. Advertisements; d. Visit program for media people or journalists; e. Advocacy/IEC programs ( i.e. , airport to airport services, clean toilets, etc). CHAPTER IV Investment Priority Plan SECTION 15. Investment Priority Plan. In relation to Section 7 (e), the investment Priority Plan shall be consistent with the national priorities, the Valenzuela City comprehensive development and land use plans and such other criteria that will ensure sustainable and equitable economic and social development. These criteria operationalize the investment policies of local government. Further, the following should be considered in determining priority areas for investments: DISEaC a. The gaps between prospective demands and existing supply for specific products and services and the additional production capacities that must be induced, where such exist; b. The potential of such areas of investments for creating new markets, both domestic and foreign, for domestic suppliers of raw materials/intermediate goods, or new sources of supply for domestic consumers of the products; c. The potential of such areas of investments for creating productive employment, considering the necessity for the dispersal of industries in the countryside on a planned and balanced basis to the extent that is economically feasible and practicable; d. The extent to which investment in such areas will integrate existing production facilities; DSHTaC e. The amount of capital normally needed thereby; f. The nature of risk, commercial or otherwise, which will be entailed; g. The proportion of the required capital, raw materials and labor inputs of indigenous origin; h. The long-run comparative advantage; i. The availability of local raw materials and manpower skills needed for said project; j. The ability to economically produce goods for domestic use in substitution of goods being imported in large quantities and thereby increase the value of agricultural, mining, and other products already being produced or which will make products at cost law enough to be sold competitively in either domestic or export markets. SECTION 16. Delisting . The local government through the VCIB, however, may remove an area or activity from the list on grounds, such as the following: a) Sufficient investments in the area has been attained; b) Continued extension of incentives is no longer to the interest and benefit of the locality; c) The investment area or activity cannot attract investors within a reasonable time and cost may result in unfavorable business climate, and d) Lack of progress in the implementation of an environmental management plan. SECTION 17. Review of Investment Incentives and Support Measures . The VCIB, shall conduct a periodic review of the incentives at such a date fixed to ensure its continuing relevance. CHAPTER V Availing Enterprises SECTION 18. Qualifications of New Investors/Enterprises . New investors who intend to avail of the incentives provided in the Code must meet the following specified qualifications, such as: a) That the business enterprise must have complied with all the requirements mandated under existing local and national laws, rules and policies of the government; DHITcS b) That the prospective investor's place of operation or production be located in an area within the territorial jurisdiction of the local government; c) A minimum of at least 20% percentage of its workforce must be bonafide residents of the local government giving equal opportunities for men, women, the poor, indigenous people (IPs) and the physically handicapped; d) Foreign companies intending to apply for registration must comply with Foreign Investment Act of 1991; e) The project must not be included in the negative list as provided for under the Foreign Investments Act (RA 7042); f) Project must not negatively impact the environment, whether in terms of pollution or resource use; g) Registered with Securities and Exchange Commission (SEC) in the case of a corporation and association, Department of Trade and Industry (DTI) in the case of single proprietorship or Cooperative Development Authority (CDA) in the case of a cooperative; and h) The enterprise has a program on corporate social responsibility. i) That the prospective investors must engage in activities in preferred areas of investment. SECTION 19. Qualifications of Existing Enterprise . An existing enterprise may avail of the incentives under this Code provided that the following qualifications are met, to wit: TcDIEH a) That the business enterprise must have complied with all the requirements mandated under existing local and national laws, rules and policies of the government; b) That the prospective investor's place of operation or production be located within the territorial jurisdiction of the local government unit; c) That the prospective investors must engage in activities in preferred areas of investment; d) That the enterprise will see to it that not less than at least 20% percent of its total work force shall be bonafide residents of the local government unit and that equal opportunities are given to women, men, indigenous people, the poor and the physically handicapped; e) Registered with Securities and Exchange Commission (SEC) in the case of a corporation and association, Department of Trade and Industry (DTI) in the case of a single proprietorship or Cooperative Development Authority (CDA) in the case of a cooperative; f) The existing enterprise whose place of operation or production is already located within the territorial jurisdiction of the local government unit, intends to undertake any of the following activities: 1) Relocate its principal office, from other places of the country to the local government unit; or aSIDCT 2) Expand its existing production capacity or construct new buildings and other civil works for the installation of new machinery and equipment or improvements thereof, which will result in an increase in production capacity. g) The expansion or diversification shall have an additional project cost in the scale as specified, provided that the amount of capitalization shall be based on the total additional project cost and such expansion or diversification as stated in the investor's project study submitted to and approved by the Board; h) The expansion or diversification project will provide employment to bonafide residents of the City; and, i) The expansion or diversification will include an environmental management plan; j) The intended expansion or diversification of the enterprise must engage in any of the specifically identified preferred or priority investment areas as may hereafter be declared by the Board; k) The enterprise must show proof of financial capacity and capability to undertake the expansion or diversification project and its operation; l) The enterprise has a program on corporate social responsibility. CHAPTER VI Registration SECTION 20. Requirements . (a) Single Proprietorship : 1) Four (4) copies of completed registration forms; TcaAID 2) A copy of the complete project study of the proposed investment/expansion showing that the project is economically, technically, financially and environmentally feasible and viable; 3) A copy of Business Name Registration; and 4) A copy of audited Financial Statements (if existing); 5) A complete copy of the Environmental Impact Study; 6) A copy of the Environmental Compliance Certificate. (b) For Partnership/Corporation : 1) Four (4) copies of completed registration forms; 2) A copy of the complete project study of the proposed investment/expansion showing that the project is economically, technically, financially and environmentally feasible and viable; 3) A copy of the Articles of Partnership or Incorporation as approved by the Securities and Exchange Commission (SEC) for partnership, corporation, association and foundation; 4) A certified true copy of its Certificate of Registration by the SEC, for corporation, partnership, association and foundation, and its Business Name Registration by the Department of Trade and Industry and the Mayor's Permit; IHCSTE 5) Resolution of the applicant's Board of Directors, in case of a Corporation authorizing the filing of application; 6) A copy of audited Financial Statements (if existing); 7) A complete copy of the Environmental Impact Study; and 8) A copy of the Environmental Compliance Certificate; 9) A program for corporate social responsibility. (c) For Cooperatives : 1) Four (4) copies of completed registration forms; 2) A copy of the complete project study of the proposed investment/expansion showing that the project is economically, technically, financially and environmentally feasible and viable; 3) A copy of the Articles of Cooperation as approved by the Cooperative Development Authority (CDA) for cooperatives; 4) CDA Registration; 5) A copy of audited Financial Statements (if existing); 6) A complete copy of the Environmental Impact Study; and AEDISC 7) A copy of the Environmental Compliance Certificate. SECTION 21. Procedures . a) Venue for Filing of Applications All applications shall be filed with the Investments Promotion Center. b) Date of Official Acceptance The application shall be recorded in the Registration Book and the date appearing therein and stamped on the application shall be considered as the date of official receipt. Only applications with complete requirements shall be accepted. c) Filing Fee A non-refundable filing fee shall be paid together with the required documents for registration. Micro : P400.00 Small : P800.00 Medium : P1,200.00 Large Enterprise : P2,000.00 d) Certificate of Registration Upon approval, an enterprise shall be issued a Certificate of Registration with the signature of the Chairman of the Board and/or such other officers as the Board may empower and designate for the purpose, It shall state among others, the following: (1) Name of the Registered Enterprise; (2) The priority investment area in which the registered enterprise will engage in; aAcDSC (3) The incentives granted to the enterprise; (4) The period of effectivity; and (5) The other terms and conditions to be observed by virtue of its registration. SECTION 22. Evaluation and Approval Procedures . The following shall be the procedure for the evaluation and approval of the applications: a) Once an application is officially accepted, the project will be evaluated by the Investment Promotion Center which may conduct an ocular inspection at the premises of the business. b) If found not qualified, the Center shall inform the applicant in writing five (5) working days upon official receipt of the application requirements. c) If found qualified, the application is forwarded to the Board for its deliberation for the registration of the project or enterprise or for the grant of incentives applied for. A corresponding Board Resolution shall be issued as basis for Board approval or disapproval. d) Once approved by the Board, the Center within five (5) working days shall inform the applicant in writing, deliver the Certificate of Registration and inform the Business Permits and Licensing Office, City Treasurer's Office and the City Assessor's Office of such approval for their information, guidance and appropriate action. The Center shall, likewise inform the applicant in the case of disapproval. SECTION 23. Evaluation Criteria . The following criteria shall be used in the evaluation of application for registration under this Code. a) Capitalization the total project cost, which shall be classified as follows: Micro : not more than P3,000,000.00 Small : P3,000,000.001-P15,000,0001.00 * Medium : P15,000,001.00-P1,000,000,000.00 Large : P1,000,000,001 and above b) Employment The percentage of jobs allocated to local residents with equal opportunities for women, men, indigenous people, the poor and the physically handicapped. TCIDSa c) Compliance with all registration requirements mandated under existing local and national laws; d) Location the place of operation of the project. SECTION 24. Certificate of Registration . Under this Code, an enterprise is considered registered upon approval of its application by the Board, and as such, legally entitles it to fully avail of any or all of the fiscal incentives provided in this Code. A registered enterprise shall be issued a Certificate of Registration duly signed by the Board's chairperson in such style and form as the Board may determine. SECTION 25. Rights and Privileges . All investors or registered enterprises are entitled to the rights and guarantees provided for by law and the Constitution and the privileges provided for by the Code. SECTION 26. Duties and Responsibilities of Registered Enterprises . Every registered enterprises shall submit to the Investment Promotion Center the following reports and/or documents within the time prescribed by the Code: (1) Amendments of Articles of Incorporation or By-Laws, or Articles of Partnership, or Articles of Cooperation, within thirty (30) calendar days from the date of submission of said amendments with the Securities and Exchange Commission or Cooperative Development Authority; (2) Change of Directors within thirty (30) calendar days from the change; DAaIHT (3) Report on alien officers or employees within thirty (30) calendar days from date of registration of from the appointment of such aliens/replacements: Provided: that such alien/s are registered as such with the Bureau of Immigration and Deportation (BID) and with the Department of Labor and Employment (DOLE); (4) Report on employment of bonafide local government unit residents within thirty (30) calendar days from date of registration of from the appointment of their replacement; (5) Quarterly report on the enterprise's business operations, including its production or gross sales or receipts, within thirty (30) calendar days from end of each quarter; (6) Audited Financial Statements, within thirty (30) calendar days after its submission to the Bureau of Internal Revenue (BIR); and THESAD (7) Report on total local incentives availed of under the Local Investment & Incentives Code. SECTION 27. Sanctions for Late Submission of the Preceding Reports and Documents . A duly registered enterprise that fails to submit the reportorial requirements within the prescribed period shall be penalized as follows: A) 1 day to 1 month of delay sanction to be determined by the Boards. B) 1 year suspension of incentives until such time that the said requirements are submitted. C) 3 consecutive years cancellation of registration and qualification to avail of incentives. CHAPTER VII Fiscal and Non-Fiscal Incentives SECTION 28. Fiscal Incentives . Fiscal incentives which include exemption from payment of business and real property taxes is hereby granted to new investments in the locality with applications duly approved in accordance with this Code. The incentive shall apply to all businesses similarly situated which includes businesses that are undergoing expansion activities as defined in Section 4 (i). However, the incentive shall not extend to fees and charges imposed for services rendered by the local government code, such as garbage fees, inspection fees and the like and those levied for the use of government facilities and properties, 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. ICAcHE The grant of the tax incentives under this Code should not be more than three (3) years from the actual date the business started operations. The incentive shall pertain only to the share of the LGU granting the fiscal incentive. Exemptions under this Code shall be in addition to the incentives provided under Republic Act 7160 otherwise known as " The Local Government Code of 1991 " and Republic Act 7916 known as " The Special Economic Zone Act of 1995 ", as amended by RA 8748 and Executive Order No. 226 known as " The Omnibus Investments Code of 1987 " and other pertinent laws. SECTION 29. Non-Fiscal Incentives . Registered enterprises and investors shall be granted non-fiscal incentives, such as: a) Provision of a one-stop documentation for simplified documentation/registration procedures which shall be facilitated with the assistance from the LGU Investment Promotion Center; b) Consistent support for industrial peace through mediation and arbitration services that may be extended at the Investment Promotion Center; c) Assistance in securing direct source of electric power and water supply connection; d) Assistance in the negotiation of special rates for utilities for industries with a certain minimum load; e) Assistance in site selection and negotiation for right of way; cdll f) Assistance in labor recruitment and arbitration; g) Technical trainings support in coordination with the national agencies such as Technical Education and Skills Development Authority (TESDA) and other similar institutions to answer the skills requirement of industries; h) Other non-fiscal incentives as may be determined by the Sanggunian through the enactment of Resolutions/Ordinances, as the case may be; The above-mentioned non-fiscal incentives are available to all firms, including those that do not qualify for fiscal incentives. SECTION 30. Green/Social Investments Incentives . An enterprise availing of the green/social incentive shall file an application with the Center regarding its intent to undertake a green/social activity, the location and the date. Said activity shall be completed within the timeframe approved. 1. The Center shall be in charge of issuing a certification that the registered enterprise has undertaken a green/social activities and is qualified for the incentive. 2. After due verification of the repainting, planting of trees and landscaping the Center shall issue a certification indicating the cost of painting, the cost of trees planted and the cost of landscaping. Such certification shall be presented to the local treasurer concerned during the payment of the business tax to avail of the incentive. EcIaTA 3. This incentive is non-transferable. 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 the period of incentive shall expire within two years from the date of application regardless of whether the owner availed of it or not. 4. An enterprise availing of the incentive shall file an application with the Investment Promotion Center, submitting a work program for the same. After due verification of the completed works, the local government shall appraise the cost of the greening, restoration or rehabilitation and issues a certification which shall be submitted to the local treasurer during payment of the taxes due. The qualified enterprise shall be entitled to deduct from its gross receipts the above-mentioned cost but not to exceed thirty percent of its gross receipts for the tax year subject to the following conditions: (a) Any excess may be charged against succeeding tax years for a minimum period of three years subject to the same ceiling of thirty percent of gross receipts; and (b) This incentive may be availed of only once every three years; 5. The Board shall ensure that the re-greening and landscaping projects undertaken by enterprises on public property shall be in harmony with the overall re-greening and beautification program of the City Government of Valenzuela. 6. An enterprise utilizing public property to avail of the incentives provided in the preceding two sections shall be allowed to place a signboard, free of any fees, tax or charges, promoting environmental consciousness, or other slogans or caricature supportive of growth and development, with the enterprise name and logo which should be of a size and dimension such that it will not over shadow the aesthetic beauty of the project nor the message of the signboard. ISCTcH SECTION 31. Coverage of Green Incentives . The following activities shall be covered by the green incentives program: A) Rehabilitation and Restoration Incentives for the restoration, or rehabilitation of buildings or other structures in accordance with the city urban renewal or restoration plan. B) Regreening, Landscaping Reforestation, growing of trees or landscaping of specified locations such as side of major roads, residual forest areas; areas with historical or tourism value; Areas of high biodiversity; Eroded slopes; public open spaces especially in residential and commercial areas including street islands, parks, promenades, parking area peripheries, etc. may be granted incentives for such project provided that Tree(s) which are destroyed or otherwise die due to negligence by the enterprise, or the landscaping has not been properly maintained within the period of availment shall be required to reimburse the incentive granted to it. EDATSC C) Organic Agriculture Enterprises engaging in organic agriculture, including the production of organic fertilizers of plant and animal origin including the production of microbial fertilizer with nitrogen fixing organism may be entitled to incentives. SECTION 32. Provisions for Environmental Protection. The following provisions for environmental protection shall be followed: A) 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. B) 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. C) Specific Prohibitions . 1) No industrial or manufacturing facility shall be operated without proper solid and wastewater disposal facilities; 2) No industrial or manufacturing plant shall be operated at levels beyond the operating capacity of their respective waste treatment facilities in order to maintain the effluent quality within the standards required by law; ISTCHE 3) All industrial and manufacturing establishment shall subject their operations and premises, facilities and systems to periodic environmental assessments which shall be conducted by the local government unit 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. SECTION 33. Social Projects . Enterprises are encouraged to undertake projects to support poverty reduction and other social projects of the local government such as: 1. Housing for Employees 2. School Buildings 3. Other Educational Projects 4. Cultural Revivals 5. Community Infrastructure 6. Programs for Women, Children, Elderly, Disabled, Indigenous Peoples TaSEHD CHAPTER VIII Appropriations SECTION 34. Budget Appropriations . The operations of the Valenzuela City Investment and Incentives Board (VCIIB) and the Local Investment and Promotion Council and Promotion Center shall be provided through regular or supplemental Budget in the amount of ONE MILLION PESOS (PHP1,000,000.00) provided however that the same shall be subject to the available funds of the local government unit. The aforesaid budget appropriation shall also be used for all necessary and incidental expenses in the implementation of this ordinance as well as payment of honorarium, per diem and allowance of VCIIB and LIPC. SECTION 35. Revenue from the Operation of the Code . The Income derived from the operation of this Code shall go to the special coffers captioned "INVESTMENT PROMOTION FUND". Said fund shall be used solely for the operation of the LGU Investment Code and for capital outlays and maintenance and other operating expenses of the LGU Investment Board and LGU Investment Promotion Center. SECTION 36. Immediate Release of Fund. For the purpose of expediting the operations of the Board and of the Center, its allocation from the Investment Promotion Fund shall be immediately released. CHAPTER IX Final Provisions SECTION 37. Penal Clause . Any violation of the provision of this Code shall be ground for cancellation or revocation of the registration of the business and the withdrawal of incentives granted under this Code. The Certificate of Registration of a Business Enterprise, as provided in this Code, may be cancelled or revoked due to the following: aIAEcD (1) Violation of the provisions of this Code; (2) Failure to commence actual project development within a specified period from approval or registration; (3) Violation of environmental laws may be subject to cancellation or revocation of the certificate of registration which shall mean the withdrawal of all the incentives granted under the Code; and all fees and charges previously exempted shall become due and demandable. SECTION 38. Appeal from the Declaration of the Board. 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 be appealed to the Sanggunian, whose decision shall be final and executory. SECTION 39. Refund and Penalties . In case of cancellation of the Registration Certificate, the Board shall require the refund of incentives availed of and imposed corresponding fines and penalties. SECTION 40. 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 judgment 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 41. Repealing Clause . All ordinances, rules and regulations, or part thereof, in conflict with, or inconsistent with any provisions of this Code, are hereby repealed, amended or modified accordingly. aTcIEH SECTION 42. Effectivity. This ordinance shall take effect immediately upon its approval thereof in accordance with law. ENACTED: May 27, 2013. City of Valenzuela, Metropolitan Manila. (SGD.) HON. KATE ABIGAEL GALANG-COSETENG Councilor Majority Floor Leader HON. MARIA CECILIA V. MAYO Councilor Minority Floor Leader HON. RITCHE D. CUADRA Councilor HON. SHALANI S. SOLEDAD-ROMULO Councilor HON. KATHERINE PINEDA-HERNANDEZ Councilor (SGD.) HON. LAILANIE P. NOLASCO Councilor (SGD.) HON. ANTONIO R. ESPIRITU Councilor HON. ADRIAN C. DAPAT Councilor (SGD.) HON. GERALD A. ESPLANA Councilor (SGD.) HON. CORAZON A. CORTEZ Councilor (SGD.) HON. MARLON PAULO C. ALEJANDRINO Councilor (SGD.) HON. RAMON L. ENCARNACION Councilor (President, League of Barangays) (SGD.) HON. CRISTINA MARIE M. FELICIANO Councilor (President, Federation of Sangguniang Kabataan) ATTESTED: (SGD.) FLAVIO C. DIAZ Secretary CERTIFIED CORRECT: (SGD.) HON. LORENA NATIVIDAD-BORJA Temporary Presiding Officer Asst. Majority Floor Leader APPROVED: (SGD.) HON. SHERWIN T. GATCHALIAN City Mayor Date Signed: ______________