Rules and Regulations Implementing Executive Order No. 452, S. 1997

RULES AND REGULATIONS IMPLEMENTING EXECUTIVE ORDER NO. 452, S. 1997, ENTITLED, "PROVIDING FOR THE GUIDELINES THAT WILL ENSURE THE SECURITY OF REGISTERED VENDORS IN THE WORKPLACE"

RULE I

General Provisions

SECTION 1.  Basis and Purpose. — These Rules and Regulations are hereby issued in pursuance of, and to implement, Executive Order No. 452, s. 1997, to ensure the efficient and effective implementation of the said Executive Order.

SECTION 2.  Coverage and Application. — (a) These Rules and Regulations shall cover and apply to all cities and municipalities nationwide, and concerned agencies of the national government.

(b)  These Rules and Regulations shall also apply to street vendors, ambulant vendors or peddlers, and market vendors without stalls.

SECTION 3.  Declaration of Policy. — It is hereby declared the policy of the State to address poverty and to improve the quality of life of every Filipino as mandated in the Constitution. Towards this end, the State shall protect the vendors from being deprived of their livelihood, as well as, the rights of consumers and the general public from any negative effect that the vending industry may have on the environment and on societal welfare and well-being.

SECTION 4.  Definition of Terms. — For purposes of these Rules and Regulations, the following terms are defined:

a)  Ambulant Vendors or Peddlers refer to vendors who are plying their trade within the vicinity of the market in search of buyers;

b)  Market refers to a public place where the act of buying and selling takes place;

c)  Market Vendors With Stalls mean vendors who sell their merchandise in one or more permanent stalls within a public or private market building or buildings;

c)  Market Vendors Without Stalls refer to vendors who conduct their trade outside but within the vicinity of a market building or buildings. They include vendors who display their goods on carts, tables or other portable structures;

d)  Registered Vendors are vendors who are registered pursuant to Rule IV of these Implementing Rules and Regulations;

e)  Street Vendors refer to vendors who sell their merchandise on streets, sidewalk, and other public areas other than in markets; and

f)  Vendors refer to natural persons who sell goods as a means of livelihood.

RULE II

Inter-Agency Council on the Security of Registered Vendors

SECTION 5.  Creation and Composition. — There is hereby created an Inter-agency Council on the Security of Registered Vendors, hereinafter referred to as the Council. The Secretary of Interior and Local government shall act as the chairman with the following as members:

a)  Secretary of Trade and Industry;

b)  Secretary of Labor and Employment;

c)  Chief, Philippine National Police;

d)  Chairman, Metropolitan Manila Development Authority;

e)  President, League of Provinces of the Philippines;

f)  President, League of Cities of the Philippines;

g)  President, League of Municipalities of the Philippines;

h)  President, Philippine Councilors League; and

i)  Two (2) Representatives of Workers in the Informal Sector, to be appointed by the Council Chairman.

SECTION 6.  Functions. — The council shall perform the following functions:

a)  Formulate policies and programs that will accord protection and provide security to registered vendors nationwide;

b)  Periodically review and revises, whenever necessary, these Rules and Regulations;

c)  Monitor and ensure the effective implementation of the provisions of Executive Order No. 452 and these Rules and Regulations;

d)  Submit quarterly reports to the President, as may be necessary; and,

e)  Perform other functions as may be directed by the President.

SECTION 7.  Meetings and Quorum. — The council shall hold its meetings once every quarter or as often as necessary. A simple majority of all its members shall constitute a quorum.

SECTION 8.  Secretariat. — The Secretary of Interior and Local government may designate a Secretariat within the Department of the Interior and Local Government to provide technical and administrative support to the council.

SECTION 9.  Creation and composition of a Local Council. — (a) The City or Municipal Mayor may, through an appropriate local ordinance and within thirty (30) days from the effectivity of these Rules and Regulations, create a local Council on the Security of Registered Vendors.

(b)  The said local council shall be headed by the city or municipal administrator and shall be composed of the following as members:

(i)  chairman of the sanggunian committee on market, business or trade or equivalent;

(ii)  city or municipal planning and development coordinator;

(iii)  city or municipal market administrator;

(iv)  chief of city or municipal police office;

(v)  at least two (2) representatives of the vendors or vendors' association elected from among themselves and appointed by the City or Municipal Mayor. Provided, that only those duly elected representatives of the vendors or vendors' association shall be appointed as members of the local Council; and

(vi)  in the case of Metropolitan Manila, a representative of the Metropolitan Manila Development Authority.

SECTION 10.  Functions. — The local Council shall perform the following functions:

(a)  Assist competent local authorities in the formulation of plans, programs, projects or activities that will ensure the security of vendors in the workplace;

(b)  Monitor compliance to the rules and regulations implementing Executive Order No. 452;

(c)  Recommend appropriate measures to the City or Municipal Mayor to enhance the participation of vendors in local socio-economic development efforts;

(d)  Recommend to the Inter-Agency Council on the Security of Registered Vendors measures to improve the plight of registered vendors;

(e)  Assist in the conduct of a survey on vacant areas for vending; and

(f)  Perform such other functions as may be provided by competent local authorities.

SECTION 11.  Meetings and Quorum. — The local Council shall hold its meetings once every quarter or as often as necessary. A simple majority of all its members shall constitute a quorum.

RULE III

Designation of Workplace for Vending

SECTION 12.  Survey on Vacant Areas for Vending. — Within sixty (60) days from the effectivity of these Rules and Regulations, the City or Municipal Mayor shall cause the conduct of a survey to identify vacant areas within the vicinity of markets, other vacant public spaces, public parks, city or municipal streets, or sidewalks in the city or municipal streets that may be designated for vending purposes.

SECTION 13.  Authority to Designate a Workplace. — Within ninety (90) days after the survey, and pursuant to the recommendation of the Local Council on the security of Registered Vendors, the Sangguniang Panlungsod or Sangguniang Bayan shall designate a workplace or workplaces for vending through an ordinance. The use of a public park, city or municipal street or sidewalk in a city or municipal street for vending purposes shall be subject to the provisions of Sections 16 and 21 of the Local Government Code of 1991 and the Land Transportation Code, respectively.

SECTION 14.  Prior consultations Required. — No workplace for vending purposes shall be designated as such workplace unless prior consultation with registered street vendors, ambulant vendors or peddlers and market vendors without stalls, the local police and the affected inhabitants is undertaken.

RULE IV

Registration

SECTION 15.  Registration of vendors. — (a) All street vendors, ambulant vendors or peddlers and market vendors without stalls shall register in the city or municipality where they reside, or where they are vending or intend to vend.

(b)  Within forty-five (45) days after the effectivity of these rules and Regulations, the concerned Sangguniang Panlungsod or Sangguniang Bayan shall enact an ordinance on the registration of street vendors, ambulant vendors or peddlers and market vendors without stalls, and an ordinance governing the issuance of business permits to operate to the said vendors.

(c)  It shall be the responsibility of the City or Municipal Mayor to register qualified vendors. The registration of street vendors, ambulant vendors or peddlers and market vendors without stalls shall be simplified and shall not follow the regular procedure in registering business and other commercial activities in a city or municipality.

(d)  In the registration of street vendors, ambulant vendors or peddlers and market vendors without stalls, the following documents may be required:

(i)  Certification from the Punong Barangay attesting that the vendor is a resident of the Barangay, and a duly accomplished Registration Form in the event that a vendor prefers to vend only within the city or municipality where such vendor actually resides; or

(ii)  A duly accomplished Registration Form indicating the workplace where such vendor is vending or intends to vend; and

(iii)  An endorsement from a vendors association duly recognized by the concerned sangguniang, where applicable.

RULE V

Assignment of Vending Space

SECTION 16.  Authority to Assign Vending Space. — The City or Municipal Mayor shall have the authority to assign vending spaces to qualified vendors.

SECTION 17.  Assignment of Vending Space. — (a) within a reasonable period of time after the enactment of an ordinance under these Rules and Regulations, the City or Municipal Mayor shall establish a system of prioritizing vendors for the purpose of assigning workplaces and to accommodate all vendors, as far as practicable.

(b)  The assignment of vending workplaces shall be subject to reasonable regulations as to the size of the workplace and the day and time of vending with due regard to health and sanitation, traffic and peace and order concerns.

(c)  Only registered vendors shall be assigned vending workplaces.

SECTION 18.  Limitation on the Use of Areas for Vending. — (a) Designated workplaces may be used exclusively for vending purposes, subject to applicable laws, rules and regulations.

(b)  No unregistered street vendor, ambulant vendor or peddler, or market vendor without stall shall be allowed to vend in designated workplaces.

SECTION 19.  Prior Consultations Required. — No vending space shall be assigned without prior consultation with registered vendors.

RULE VI

Business Permit

SECTION 20.  Issuance of a Business Permit. — A business permit to operate shall be issued to a registered vendor within ten (10) working days upon the designation of vending space and payment of corresponding fees. The business permit shall be renewable every year. It shall indicate the name of the vendor, resident address, assigned workplace and the day and time of vending.

SECTION 21.  Display of Permit. — (a) The permit shall be in such form that buyers can clearly see the name and address of the vendor, the assigned workplace and the day and time of vending.

(b)  All vendors shall display their business permits in conspicuous places in their workplaces.

RULE VII

Empowerment of Vendors

SECTION 22.  Vendors Association. — Vendors shall be encouraged to organize themselves into associations for their mutual aid, benefit and protection and for other legitimate purposes.

SECTION 23.  Assistance to Vendors Association. — All concerned national government agencies, government financial institutions and local government units shall include in their plans, programs, projects and activities efforts that are supportive of the concerns of vendors associations.

SECTION 24.  Representation in Policy Making Bodies. — It shall be the responsibility of City or Municipal Mayor to ensure participation of vendors association in public decision-making processes and the representation of such association in local special bodies, as may be provided by law or by ordinance.

RULE VIII

Responsibilities of Registered Vendors and Vendors Associations

SECTION 25.  Responsibilities of Vendors. — Registered vendors shall observe laws, rules and regulations on health and sanitation, public safety, environment, traffic, and business and trade. Registered vendors shall:

(i)  Ensure and maintain cleanliness in their workplaces through the proper disposal of garbage;

(ii)  Ensure unobstructed traffic flow;

(iii)  Provide for calibrated weighing scales, as may be appropriate, and price tags of their wares and goods; and

(iv)  Sell quality goods and refrain from selling illegal and fake products.

SECTION 26.  Responsibilities of Vendors. — (a) It shall be the responsibility of the vendors association to police their own ranks and to ensure that their members perform the responsibilities embodied under these Rules and Regulations.

(b)  It shall be the responsibility of the vendors' association to see to it that their members wear uniforms while vending.

RULE IX

Eviction and Demolition

SECTION 27.  Unjust Eviction. — Vendors existing before the effectivity of these Rules and Regulations shall not be arbitrarily deprived of their livelihood by being unjustly ejected from their workplaces nor shall their stalls be demolished. Provided, That, the said vendors comply with existing national and local laws, rules and regulations.

SECTION 28.  Security in the Workplace. — Registered vendors shall enjoy security in the workplace and shall not be arbitrarily deprived of their workplaces.

RULE X

Miscellaneous and Final Provisions

SECTION 29.  Responsibility of the DTI. — The Department of Trade and Industry and its attached agencies shall, in line with their mandates, powers and functions, focus on protecting the registered vendors by providing practical assistance to improved the quality of their wares, items and commodities offered for sale and shall take measures to eliminate the sale or distribution of unauthorized imitations of products by registered vendors.

SECTION 30.  Temporary Vending Site. — Pending the designation of a viable vending area or areas, vendors occupying a public place or places not previously designated as vending site or sites shall be provided with a viable temporary site or sites by the city government or municipal government. Notice of temporary transfer shall be given to the vendors at least fifteen (15) days before the actual transfer. This rule shall likewise cover and apply to vendors who are granted with permits but whose workplaces are withdrawn from the list of allowable vending sites. Any change in the list of allowable vending sites shall only be done after consultations with the affected vendors.

SECTION 31.  Relocation of Vendors. — (a) Before any public market is closed, sold or demolished, all market vendors with stalls and market vendors without stalls shall first be relocated by the city government or municipal government to a temporary or new public market. Notice of the intention to close, sell, or demolish any public market shall be made to all concerned vendors at least sixty (60) days before the actual transfer or relocation to another market site. Within the sixty (60)-day period, the city government or municipal government shall conduct consultations with the affected vendors on the selection of the relocation site and the implementation of the relocation.

(b) The policy on eviction, demolition and relocation as embodied in Section 27 of Rule IX shall not apply to vendors who started occupying such workplaces after the effectivity of Executive Order No. 452.

SECTION 32.  Priority in the Assignment of Stalls. —In the event a new public market is constructed in place of the old market that is closed, sold, or demolished, market vendors with stalls who are displaced from their workplaces shall be given priority in the assignment of stalls in the new market. No vendor shall be allowed to occupy more than one (1) stall in the new market.

SECTION 33.  Continuing Registration of Vendors. — Notwithstanding the provisions of Rule IV, it shall be the responsibility of the City or Municipal Mayor to establish a system of continuing registration of street vendors, ambulant vendors or peddlers, and market vendors without stalls.

SECTION 34.  Exclusion of Main Thoroughfares and Malls. — No vending activity by street vendors, ambulant vendors or peddlers and market vendors without stalls shall be allowed in places not designated as a workplace, main thoroughfares and within the vicinity of malls.

SECTION 35.  Identification Cards. — (a) The city mayor or municipal mayor shall, within ten (10) working days, cause the issuance of Identification Cards to all registered vendors upon the payment of reasonable fees.

(b)  All registered vendors shall wear their Identification Cards while vending.

SECTION 36.  Sanctions. — If a registered vendor is found to have failed to comply or is not complying with any of the pertinent provisions of these Rules and Regulations, the following sanctions shall be imposed:

1)  Suspension of the business permit for a period of one (1) month, or

2)  Payment of a fine of not more than Five Hundred Pesos (P500.00) for the first offense; and

3)  Cancellation of the business permit and revocation of the authority to occupy and vend in the assigned workplace for the second and subsequent offenses.

(b)  Any City or Municipal Mayor who violates any pertinent provision of these Rules and Regulations shall be dealt with in accordance with applicable laws, rules and regulations.

SECTION 37.  Separability Clause. — If, for any reason or reasons, any provision of these Rules and Regulations is declared unconstitutional or invalid, other provisions thereof which are not affected thereby shall continue to be in full force and effect.

SECTION 38.  Repealing Clause. — All orders, rules and regulations which are inconsistent herewith are hereby repealed or modified accordingly.

SECTION 39.  Effectivity. — These Rules and Regulations shall take effect upon the approval by the members of the Inter-agency Council on the Security of Registered Vendors.

 

(Sgd.) JOSE D. LINA, JR.SecretaryDepartment of the Interior and Local Government

(Sgd.) MANUEL A. ROXAS IISecretaryDepartment of Trade and Industry

(Sgd.) HILARIO L. DE PEDRO IIIPresidentLeague of Provinces of the Philippines

(Sgd.) JOSE E. ESTRADAPresidentLeague of Municipalities of the Philippines

(Sgd.) BENJAMIN ABALOSChairmanMetro Manila Development Authority

(Sgd.) PATRICIA A. STO. TOMASSecretaryDepartment of Labor and Employment

(Sgd.) LEANDRO MENDOZADirector GeneralPhilippine National Police

(Sgd.) ALIPIO F. FERNANDEZ, JR.PresidentLeague of Cities of the Philippines

(Sgd.) MICHAEL L. RAMAPresidentPhilippine Councilor's League

WORKERS IN THE INFORMAL SECTOR

(Sgd.) MA. MERCEDES IGNACIO-NlCOLASPresidentKatipunan ng Maraming Tinigng Manggagawang Impormal (KATINIG)

(Sgd.) JOVITO N. DACULAPresidentSamahan ng mga NagkakaisangManininda sa Intramuros, Inc. (SANAMAI)

WITNESSES:

(Sgd.) EVELYN E. CASTILLOPresidentKalipunan ng mga Manininda sa Lansangan ng Q.C.

(Sgd ) ROMAN S. MONTALBOPresidentPrimero de Mayo Vendors Association, Inc. (PDMVA)

(Sgd.) CASIANO A. BELCHES, JR.PresidentAlabang Vendors Alliance (AVA)Muntinlupa City (AYA-SMMA-I)

(Sgd.) CECILIA MENDOZAVice PresidentLRT Monumento Vendors Association