Implementing Guidelines in Issuance of Local Permits and Licenses Pursuant to the Directive of the President of the Philippines

August 12, 2016

DILG MEMORANDUM CIRCULAR NO. 104-16

IMPLEMENTING GUIDELINES IN THE ISSUANCE OF LOCAL PERMITS AND LICENSES PURSUANT TO THE DIRECTIVE OF THE PRESIDENT OF THE PHILIPPINES

1.0 Background

1.1. The government recognizes the need to enhance the local business environment to help improve the country's growth potential through reforms that address bottlenecks in business registration and processing.

1.2. The new administration sees the necessity to re-engineer the current business processing systems at the local level, thereby identifying it as one of its priorities as contained in the earlier pronouncements of President Rodrigo Roa Duterte, and in his first State of the Nation Address (SONA).

1.3. Consistent with Republic Act No. 9485, otherwise known as the Anti-Red Tape Act of 2007, the Department promotes the application of service standards in processing permits by reducing bureaucratic red tape and preventing graft and corruption, and providing penalties thereof. cSEDTC

1.4. In view of the foregoing, Local Chief Executives are hereby enjoined to address the issues in local permits and licenses through the directives provided herein.

2.0 Purpose

The purpose of this policy is to ensure that local governments will adopt and enforce service standards in processing local permits and licenses.

3.0 Legal Compliance

3.1. The Constitution mandates that the government shall promote the quality of life of the people. Towards this end, Section 16 of the Local Government Code of 1991 provides that local government units shall pursue undertakings to enhance economic prosperity, among other concerns.

3.2. Section 2 of Republic Act No. 9485, also known as the Anti-Red Tape Act of 2007, provides that the State shall establish effective practices aimed at the prevention of graft and corruption in government, and shall likewise take appropriate measures to promote transparency in each agency with regard to the manner of transacting with the public, which shall encompass a program for adoption of simplified procedures that will reduce red tape and expedite transactions in government.

4.0 Scope/Coverage

All Provincial Governors, City and Municipal Mayors, Sanggunian Members at all levels, DILG Regional Directors, ARMM Regional Governor, and all others concerned.

5.0 Policy Content and Guidelines

5.1. As directed by President Rodrigo Roa Duterte in his first State of the Nation Address, the following standards must be observed in issuing local permits and licenses:

5.1.1. Processing time shall be limited to three (3) working days only. Said processing time refers to the time spent by an applicant from the submission of application for permit to the concerned LGU office to the receipt of permit, including transaction time, waiting time, and travel time, if applicable, within the site provided by an LGU for application. It does not include, however, the applicant's act or decision to delay performance of succeeding required procedures, including leaving designated area in the middle of the process, or opting to pay required taxes, charges, or fees at a later date than immediately possible;

5.1.2. Applications for permits and licenses shall be recorded through a logbook, and maybe backed-up through a computer if the LGU decides it so, to include the date and time the required documents were received;

5.1.3. No other documents shall be required from the applicant aside from those already identified by the LGU; and SDAaTC

5.1.4. Instead of requiring the applicants to wait for the release of the license/permit, the LGU shall provide a stub indicating the specific date and time they can claim said license/permit to avoid queuing.

5.2. In view of the above, Local Chief Executives are hereby enjoined to undertake the following activities:

5.2.1. In the case of component cities and municipalities:

5.2.1.1. Formulate an action plan to comply with the abovementioned directives, to include systems to cover (e.g., business permit, building permit, occupancy permit), and timeline of implementation; and

5.2.1.2. Submit the action plan to the provincial government, copy furnished the concerned DILG Provincial Office.

5.2.2 In the case of provinces, highly urbanized cities, and independent component cities:

5.2.2.1 Cause the enactment of an ordinance, through the local Sanggunian, adopting and enforcing the above standards, and providing sanctions for cities and municipalities that do not comply;

5.2.2.2 Adopt a monitoring system and conduct a regular performance audit on the compliance of their respective component cities and municipalities with the standards;

5.2.2.3 Submit report on the compliance of component cities and municipalities to the Office of the President, through the DILG;

5.2.2.4 Impose corresponding administrative sanctions to those who failed to comply; and

5.2.2.5 Direct component cities and municipalities to comply with their respective action plans.

5.3 In the exercise of its supervisory function, the DILG:

5.3.2 May, upon request by concerned local governments, provide technical assistance on the implementation of the aforementioned directives; and

5.3.3 Shall consider the inclusion of LGUs' compliance with the said directives to the Seal of Good Local Governance.

5.4 All DILG Regional Directors and the ARMM Regional Governor are hereby directed to cause the immediate and widest dissemination of this Memorandum Circular to all local government units within their respective regional jurisdictions.

6.0 Penal Provisions

Non-compliance with this Memorandum Circular is tantamount to dereliction of duty and shall be dealt with in accordance with pertinent laws, rules and regulations. acEHCD

7.0 References

7.2 n R.A. No. 7160, or the Local Government Code of 1991

7.3 R.A. No. 9485 or the "Anti-Red Tape Act of 2007"

7.4 DTI-DILG Joint Memorandum Circular No. 01 s. 2010 titled, "Guidelines in Implementing the Standards in Processing Business Permits and Licenses in All Cities and Municipalities"

7.5 First State of the Nation Address of President Rodrigo Roa Duterte

8.0 Repealing Clause

All DILG Memorandum Circulars inconsistent herewith in part or in full, are hereby modified, revoked, or repealed accordingly.

9.0 Effectivity

This Memorandum Circular shall take effect immediately.

10.0 Approving Authority

 

(SGD.) ISMAEL D. SUENOSecretary

11.0 Feedback

For related queries, kindly contact the Policy Compliance Monitoring Division of the Bureau of Local Government Supervision at Tel Nos. (02) 928 9181 or (02) 925 0351 or at email address at [email protected]. 

n   Note from the Publisher: Copied verbatim from the official copy. Missing item no. 7.1.