Burgos Investment and Incentives Code of 2014

Republic of the Philippines
 Province of Ilocos Norte 
MUNICIPALITY OF BURGOS

OFFICE OF THE SANGGUNIANG BAYAN EXCERPTS FROM THE MINUTES OF THE 51ST REGULAR SESSION OF THE 9TH SANGGUNIAN, HELD ON THE 28TH DAY OF JULY 2014, AT 9:20 O’CLOCK IN THE MORNING AT THE SANGGUNIANG BAYAN SESSION HALL.

Present:

Hon. Rey G. Espejo, Vice Mayor & Presiding Officer Hon. Rodolfo L. Garcia, Member

Hon. Kervin G. Guinto, Member

Hon. Cafrialdes M. Guinto, Member Hon. Francis A. Calapini, Member Hon. Almirante R. Espejo, Member Hon. Joseph B. Jimenez, Member

Hon. Rodel T. Dalo, Ex-Officio Member, LMB President

Absent:

Hon. Marie Jette S. Perez, Member Hon. Efren A. Saguiguit, Member

MUNICIPAL ORDINANCE NO. 2014-006

AN ORDINANCE ENACTING THE LOCAL INVESTMENTS AND INCENTIVES CODE OF THE MUNICIPALITY OF BURGOS, ILOCOS NORTE

Be it enacted by the Sangguniang Bayan of Burgos, Ilocos Norte that:

CHAPTER I. GENERAL PROVISIONS

Section 1. Title. This municipal ordinance shall be known and cited as the Burgos Investment and Incentives Code of 2014.

Section 2. Construction of the Code. In the construction of the Code, the following rules shall be observed unless the construction will be inconsistent with the manifest intent of the Code.

a.  General Rule. All words and phrases shall be construed and understood according to the common and approved usage of the language; technical words and phrases and such others as may have acquired a peculiar and appropriate meaning in the law shall be construed and understood to that peculiar and appropriate meaning.

b. Gender and Number. Every word importing the masculine gender shall extend to both female and male. Every word importing the singular number shall extend and apply to several persons or things and every word importing the plural number shall extend and apply to one person.

c.  Person. The word person shall extend and be applied to natural and juridical persons such as firms, enterprises, partnership, corporations, cooperatives or associations, unless plainly inapplicable.

d.  Tense. The use of any verb in the present tense shall include future cases. “Shall” is mandatory and “may” is permissive.

e.  Reasonable Time or Notice. In all cases where any provision shall require any act to be done in reasonable time or reasonable notice to be given, that reasonable time or notice shall mean such time only as maybe necessary for the prompt performance of that duty, or compliance with that notice.

Section 3. Conflict with Different Sections. Should the conflict be within the different sections, the provisions of the Article which is last in the ordinal sequence shall prevail.

Section 4. Declaration of Policy. To spur growth, progress and development, it is hereby declared to be the policy of the municipal government to:

a. Welcome and encourage foreign and domestic investments to establish enterprises that would utilize substantial amount of local labor, raw materials and natural resources of the municipality;

b.  Encourage, attract, support and promote investments from local and foreign investors that will develop agri-business, infrastructure, manufacturing, forestry, tourism and such other preferred areas of investments that are non-polluting, labor intensive and skill imparting which will provide employment opportunities, raise the standard of living of the people and provide for an equitable distribution of wealth and income;

c.  Uphold the business enterprise as the basis of progress, economic growth and human development;

d.  Encourage and support the establishment of and protect trade, industry and consumer protection institutions that will harmonize and safeguard their members’ interests, free from perversions, restraints and illegal practices;

e. Encourage and support private sector initiatives, not compete with them; and

f.  Promote the organization and operation of civil society organizations to serve as active partners in achieving local autonomy.

Section 5. Objectives of the Code. This Code is enacted guided by the following objectives:

a.  To encourage local and foreign investments in agriculture, trade, industry, forestry, mining, tourism, and other sectors of the economy in order to provide employment opportunities to the labor force;

b.  To increase the productivity of the land, forest, mineral, water and other resources of the municipality;

c. To improve the utilization of these products; and

d. To improve the technical skills of the people and provide a basis for the progress and development of the economy of the municipality.

Section 6. Operative Principles. The Code is based upon the following principles:

a.  Uphold the business enterprise as the basis of economic growth, expansion and change;

b. A private sector led economy, with the private sector as the principal engine of economic growth, progress and development;

c. Encourage and support private sector initiatives, not compete with them;

d. Assist the private sector in creating a just and viable socio- economic structure in commerce, trade and industry which are conducive to greater productivity and income; and

e.  Pursuit of a free enterprise system that is both socially responsible and dynamic;

Section 7. Definition of Terms.  When used in this Code, the following terms and phrases shall mean as follows:

a.  Board- shall mean the Burgos Investment and Incentives Board (BIIB) created under this Code.

b.  Center- shall mean the Burgos Investment and Incentives Promotions Center (BIIPC).

c. Code- shall mean the Burgos Investment Incentive Code of 2012.

d.  Existing Enterprises- shall refer to  establishments or

enterprises whose places of operation or production are located within the municipality.

e.  New investors or enterprises- shall refer to prospective investors who have not yet engaged in any type or kind of business in the locality and are interested in establishing their place of operation or production in the municipality.

f.  Preferred Areas of Investments- shall  refer  to  all economic activities that have been approved and declared as such by the Board, after a thorough study and evaluation.

g. Registered Enterprises- shall refer to those enterprises or business registered in accordance with the provisions of this Code.

CHAPTER II. THE BURGOS INVESTMENT AND INCENTIVES BOARD AND THE BURGOS INVESTMENT AND

INCENTIVES PROMOTIONS CENTER

Section 8. The Burgos Investment and Incentives Board. There is hereby created and organized the Burgos Investment Incentive Board (BIIB) to implement the provisions of this Code. The BIIB shall be composed of the following:

Chairperson       Municipal Mayor

Vice Chairperson: Municipal Vice Mayor Members    SB Chair on Ways and Means

SB Chairman on Tourism, Trade & Industry Two (2) Private Sector Representatives DTI Representative

DENR Representative DOT Representative

Provided, that membership of the Board may be increased by the Sangguniang Bayan upon recommendation of the BIIB.

Section 9. Powers, Duties and Functions of the Board. The primary function of the Board shall be to establish a favorable and stable business climate which will support and encourage investments and operation of business activities consistent with the development needs of the municipality. Pursuant to this, the Board shall be vested with the following powers, duties and functions:

a. To screen, evaluate, accept, approve or disapprove applicants who wish to avail of the investment incentives, privileges and support measures and to issue Certificates of Registration.

b. To commission economic and technical research groups for the purpose of identifying priority investment areas and/or activities to be promoted, as well as appropriate support measures to be extended to investors.

c. To conduct promotional investment activities such as trade and investment missions, business conferences, fora, publication of promotional documents and flyers, and other related promotional and developmental activities for the purpose of generating investments and employment.

d. To adopt a short and medium term investment promotion program which shall specify the list of priority investment areas and activities and the provision of corresponding incentives and support measures to be used to attract investors.

e. To periodically check and verify the compliance of the registered enterprises with the provisions of the Code.

f.To enter into any agreement with other government agencies, private sector organizations for the purpose of simplifying systems, procedures and requirements on investments and business operations in the municipality.

g.After due process, may cancel the registration or suspend the enjoyment of incentives or benefits of any registered enterprise for failure to maintain the qualifications required by this Code for registration with the Board, or violation of any provisions of this Code and of the terms and conditions of registration.

h. Exercise all powers, duties and functions necessary to or incidental to the attainment of the objectives of this Code.

Section 10. Powers, Duties and Functions of the Chairperson. The Chairperson of the Board shall exercise the following powers, duties and functions:

a.  Confirm the mandated membership of the Board from the Vice-Chairperson to the members;

b.  To preside over regular and special meetings of the Board;

c. To render annual reports to the municipality and such special reports as maybe necessary or required;

d. To act as liaison between investors seeking joint venture arrangements in particular areas of investments;

e.  To recommend to the Board such policies and measures that are deemed necessary to carry out the objectives of this Code; and

f.  Exercise such other powers and perform such other duties as maybe authorized by the Board from time to time.

Section 11. Powers, Duties and Functions of the Vice- Chairperson. The Vice-Chairperson of the Board shall have the following powers, duties and functions:

a. To act as managing Head of the Board;

b.  Preside over regular and special meetings of the Board in the absence of the Chairperson; and

c. Perform such other duties and functions of the Chairperson in the absence of the latter and such other duties as maybe assigned to him by the Board.

Section 12. Meetings and Quorum of the Board. The Board shall meet at least once every quarter or as often as maybe necessary, on such day and time as it may fix. The presence of at least a majority of its member’s, which is one half plus one, shall

constitute a quorum for the Board to exercise its powers and functions.

Section 13. The Burgos Investment and Incentives Promotions Center. There is hereby created and organized the Burgos Investment Promotions Center (BIPC) which shall serve as the secretariat to the Board and whose members shall be determined by the Board. The Head of the Center who shall be designated by the board Chairperson shall also serve as secretary to the Board.

Section 14. Functions of the Center. In addition to its being the secretariat to the Board and implementing arm of its policies and guidelines, the center shall have the following duties and functions:

a.  Undertake pro-active and re-active investment generation efforts;

b.  Provides hands-on services and necessary support services to potential investors;

c. Assist investors in securing licenses and permits, arrange for the availment of local and national government incentives, and identify business or joint venture partners, raw material suppliers, labor sources, possible business sites and other requirements of investors;

d. Provides investment data banking services which will contain, among others, general business information, information on economic activities, factory costs and site characteristics;

e. Accept, process and evaluate all applications for registration for availment of incentives and submit its recommendations for action by the Board thru the Chairman, within ten (10) days from receipt of the application;

f.  Establish and maintain networking relationships with other offices, agencies, civil society organizations, and NGO’s/PO’s whenever appropriate and necessary;

g. Prepare the agenda of meetings of the Board; and

h. Prepare annual report on the activities of the Center and the Board within sixty (60) days after the end of the calendar year.

Section 15. Funding. An initial funding in the amount of Php 100,000.00 shall be appropriated from the funds of the municipal government to defray expenses necessary or incidental to the implementation of the provisions of this Code. Thereafter the municipality shall appropriate annually, based on a budget presented by the Board, the necessary funding requirements which is deemed necessary for the continued implementation of the provisions of this Code, subject to the usual government budgeting, accounting and auditing rules and regulations.

CHAPTER II. PRIORITY INVESTMENT AREAS/ACTIVITIES

Section 16. Investment Priorities Plan. The Board after consultation with the appropriate agencies and the private sector shall submit an Annual Investment Priorities Plan to the Sangguniang Bayan for evaluation and enactment.

Section 17. Priority Investment Areas. Business enterprises having the following type or nature of business shall be promoted and given priority under this Code:

a.  Agri-Business Enterprises:-

a)  organic farming

b)  organic fertilizer production

c)  food processing centers

d) Mari-culture

b.  Tourism oriented enterprises

a) Accommodation facilities b)Operation of homestays

c)  Recreational facilities

d) River, mountain resorts

e)  Food services/restaurants/eateries

f)  Tour operators

c.  Agro-Forestry plantation projects;

d. Water Distribution Facilities;

e. Financial Institutions;

f.  Health and Wellness Enterprises

a)  hospital

b) medical and dental clinics

c)  Fitness center

g. Communication facilities;

h. Transportation Enterprise;

i. Educational Enterprises:

a) Tutorial

Section 18. Amendments. The Board at anytime may add additional areas in the Investment Development Plan, alter any terms of the declaration of an investment area or the designation of measured capacities, or terminate the status of preference. In no case, however, shall amendments of the plan impair whatever rights that may have already been legally vested in registered enterprises which shall continue to enjoy such rights to the full extent under this Code. The Board shall not accept application in an area of investment prior to the approval of the same as a preferred area nor after approval of its deletion as an investment priority area.

CHAPTER III. RIGHTS AND OBLIGATIONS OF THE MUNICIPAL GOVERNMENT AND INVESTORS.

Section 19. Rights and Obligations of the Municipal Government. To enhance investor confidence in the investment incentive program, the municipal government through the Burgos Investment Incentive Board shall:

a. Publicize to prospective investors the economic development priorities of the municipality, including target investment areas and the general conditions applicable to incoming direct private investments;

b. Communicate investment evaluation criteria and procedures to enhance transparency in the incentive granting process;

c.  In the formulation of qualifications, policies, rules and regulations that affect investments, take the fullest possible account of the need of investors in terms of stability, growth, and profitability in their operations;

d.  Avoid undue partiality between and among enterprises operating within the territorial jurisdiction of the municipality, whether foreign or domestic, when granting any special incentives or exemptions aimed at encouraging investments in the identified areas;

e.  Resolve all doubts concerning the benefits and incentives granted  under  this  ordinance  enacted  for  the  purpose  of

ORDINANCE

encouraging investment in favor of the investor;

f.  Not to interfere or modify arrangement with investors after the details of implementation of an investment project that has been accepted and approved, and the ownership and management structure of the enterprise has been established;

g. Not impose on enterprises wholly or partially foreign owned, taxes which are higher or more burdensome than to which domestic enterprises are subject; and

h.  Provide a stable tax system with gross sales or receipts and real property being taxed at rates which do not discourage private investment.

Section 20. Rights and Obligations of Investors and Registered Enterprises. Investors and registered enterprises shall have the following rights and obligations:

a.  Ensure in consultation with the BIIB that its  proposed

investments fit satisfactorily with the identified priority investment areas and activities;

b.  Adequately and fully make known its expectations concerning the expansion of the business, employment, and marketing projects and the financing of its operations.

c. In response to the interest shown by the community about the investment, take steps to provide relevant information about the operation of the enterprise, except for information that should be withheld for security or competitive reasons; and

d. That the registered enterprise shall employ qualified bonafide residents of the municipality.

CHAPTER IV. QUALIFICATIONS AND REGISTRATION OF INVESTORS/ENTERPPRISES.

Section 21 Qualification Requirements of New Investors/Enterprises. The provisions of this Code shall apply to any person, partnership, corporation, association or cooperatives that will put up new enterprises, provided that they shall meet the following qualification requirements:

a.  That the business enterprise must have complied with all the requirements mandated under existing national and local laws and the constitution;

b.  That the prospective investors’ place of operation or production shall be located within the territorial jurisdiction of the municipality;

c. That the prospective investors must engage in activities in the preferred areas of investments;

d.  That the new enterprise shall have a capitalization of at least Php5,000,000.00 in case of Filipino investors and at least US$250,000.00 for foreign investors; provided further that the foreign investments is limited to forty (40) percent of the total investments, and provided finally that the Sangguniang Bayan may authorize in meritorious cases the reduction of the capital requirements; and

e. That the new enterprise shall provide out of the labor force the employment of persons who are bonafide residents of the municipality.

Section 22. Qualification Requirements of Existing Enterprises. An existing enterprise which will undertake expansion or diversification of business may avail of the incentives mandated under this Code provided it meets the following qualification requirements:

a.  That the business enterprise must have complied with all the requirements mandated under existing national and local laws and the constitution;

b. That the diversification or expansion shall engage in activities in the preferred areas of investments;

c.  That existing enterprises whose place of operation or production is already located in the municipality that expand its existing production capacity or operation or construct new buildings and other civil works for the installation of new machinery, equipment, or improvements which will result in increase production capacity or operation by at least 25%;

d.  That the expansion or diversification shall have a capitalization of at least Php2,000,000.00 but not more than Php5,000,000.00 in case of small scale industries, at least Php5,000,000.00 but not more than Php20,000,000.00 in case of medium scale enterprises, and Php20,000,000.00 or more in case of large scale enterprises..

e. That the expansion or diversification shall provide out of the labor force an employment of at least twenty (20) persons in case of small scale enterprise; at least forty (40) people in case of medium scale enterprise; and at least one hundred (100) people in case of large scale enterprises.

Section 23. Application Requirements. Application shall be filed with the Board, recorded in a registration book and the date appearing therein stamped on the application shall be considered the date of official filing. A non-refundable filing fee of

.5  % of the gross capitalization of the enterprise shall be paid together with the following documents for registration:

a.  Three (3) copies of completed application forms to be provided by the Board in accordance with the provisions of this Code;

b.  A copy of the completed project study of the proposed investment showing that the project covered by the application is economically, technically and financially sound, feasible and viable;

c.  A copy of the Articles of Incorporation and By-Laws as approved by the Securities and Exchange Commission or Board of Investments;

d. A certified true copy of its Certificate of Registration with the Securities and Exchange Commission, Board of Investments or Department of Trade and Industry;

e. Resolution or letter of the Board of Directors, or President of the Board authorizing the filing of the application; and

f.  List of directors and other principal officers and their respective nationalities and current addresses, as certified by the corporate secretary.

Section 24. Approval and Registration Procedures. The Board is authorized to adopt rules and regulations to facilitate action on applications filed with it; prescribe criteria for the evaluation of application filed in one preferred area of investment; and devise standard forms for use of applicants.

Applications filed shall be considered automatically approved if not acted upon by the Board within twenty (20) working days from official acceptance thereof.

Section 25. Criteria for Evaluation of Applications. The following are the criteria in the evaluation of applications for registration under a preferred area of investment:

a. The extent of ownership control must be by Philippine citizens of the enterprise;

c.  The extent to which labor, materials and other resources obtained from indigenous sources are utilized;

d.  The extent to which technological advances are applied and adopted to local conditions;

e.  The amount of foreign exchange to be earned, used or saved in their operations;

f. The measured capacity, provided, that the measured capacity shall not result in a monopoly in any preferred area of investment which would unduly restrict trade and fair competition nor shall it be used to deny the entry of any enterprise in any field of endeavor or activity; and

g. Such other criteria as the Board may determine.

Section 26 Appeal from Boards Decision. Any order or decision of the Board shall be final and executory after thirty (30) days from its promulgation. Within the said period of thirty (30) days, said order or decision may be appealed to the Secretary of Trade and Industry. Where an appeal has been filed, said order or decision shall be final and executory ninety (90) days after the date of filing the appeal, unless reversed.

Section 27. Certificate of Registration. A registered enterprise under this Code shall be issued a Certificate of Registration under the seal of the BIIB and the signature of the Chairperson and such other officer of the BIIB as it may empower and designate for the purpose. The Certificate shall be in such form and style as the BIIB may determine and shall state, among other matters:

a.   The name of the registered enterprise;

b.  The preferred area of investment in which the registered enterprise is proposing to engage;

c. The nature of the activity it is undertaking or proposing to undertake, whether pioneer or non-pioneer, and the registered capacity of the enterprise; and

d.  The other terms and conditions to be observed by the registered enterprise by virtue of the registration.

CHAPTER V. PRIVILEGES, INCENTIVES AND SUPPORT MEASURES

Section 28. Incentives to Registered Existing Enterprises . A registered existing enterprise, which will undertake expansion or diversification of business and which will qualify under this Code, shall enjoy the following municipal tax incentives:

a. Exemption from the payment of municipal business taxes of the gross sales or receipts realized from the expansion or diversification activities of the existing enterprise for a period of one (1) year starting from the date of operation of the approved expansion or diversification in the priority investment areas;

b.  In the payment of municipal business tax, the following shall be allowed as deduction from the taxable gross sales/receipts realized during the preceding year from the expansion or diversification activities of the registered enterprise for a period of three (3) years starting on the third year from the date of operation of the enterprise:

1.   A non-cumulative net operating loss carry over equivalent to fifty percent (50%) of the losses in a given year resulting from business expansion or diversification in the priority investment areas as indicated in the audited financial reports duly certified by a Certified Public Accountant;

2. Twenty percent (20%) of the annual wages actually paid to newly hired workers who are employed in the registered expansion or diversification activities and who are bonafide residents of the municipality;

3. Fifty percent (50%) of the approved expenditures on public infrastructures such as roads, bridges, etc. which are accessible and being used by the public;

4.  Expenditure on approved skills training but not to exceed Php100,000.00;

5.  One hundred percent (100%) of the total cost of educational scholarship granted to workers who are bonafide residents of the municipality;

6. One hundred percent (100%) of the total amount donated to any social amelioration project of the municipality; and

7. One hundred percent (100%) of the total installation cost of an effective and non-polluting solid waste management system established by the registered enterprise.

Section 29. Incentives to Registered New Enterprises. All newly registered enterprises who qualify under this Code shall enjoy the following municipal tax incentives.

a. Exemption from the payment of municipal business taxes of the gross capitalization for a period of one (1) year starting from the date of operation;

b. In the payment of municipal business tax, the following shall be allowed as deduction from the taxable gross sales/receipts realized during the preceding year by the registered enterprise for a period of one (1) year starting on the third year from the date of operation of the enterprise:

1.  A non-cumulative net operating loss carry over equivalent to fifty percent (50%) of the losses in a given year as indicated in the audited financial reports;

2. Twenty percent (20%) of the annual wages actually paid to newly hired workers who are bonafide residents of the municipality;

3.  Fifty percent (50%) of the approved expenditures on public infrastructures such as roads, bridges, etc. which are accessible and being used by the public;

4. Expenditures on approved skills training but not to exceed Php100,000.00;

5.  One hundred percent (100%)  of the  total  cost  of educational scholarship granted to workers who are bonafide residents of the municipality;

6. One hundred percent (100%) of the total amount donated to any social amelioration project of the municipality;

7. One hundred percent (100%) of the total installation cost of an effective and non-polluting solid waste management system established by the registered enterprise; and

8.  Fifty percent (50%) of the approved research and development expenditures.

Section 30. Non-fiscal Incentives. Registered enterprises and investors shall be granted the following non-fiscal incentives:-

a)       Provision of a one-stop documentation center for simplified documentation procedures;

b)       Consistent support for industrial peace through BIPC;  c )          Assistance in site selection and negotiation for the right

of way;

d)      Assistance in labor recruitment and intervention.

Government for a period of five (5) years, if the registered enterprises shall construct an infrastructure at the less developed area in the municipality, subject to the approval of the Sangguniang Bayan and Municipal Mayor; provided however, that after the expiration of the five(5) year period, he may continue to occupy the infrastructure facilities without any rental, except to pay the rental of the lot where the infrastructure was constructed at a reasonable rate as provided in the Municipal Revenue Code. In the event of the dissolution of the concerned enterprise for whatever reason, said infrastructure facilities shall be automatically owned by the Municipal Government.

Section 31. Effectivity of Privileges, Incentives and Support Measures. The Board shall review the package of appropriate privileges, incentives and support measures every two (2) years, provided that the Board may remove an area or activity from the list, at any point, when it deems that sufficient investment in the area or activity have been attained and where continued extension of incentives or support measures for the expansion of said area or activity may place the interest of the municipality and the public in adverse position.

The board may also remove an investment area from the list where it is convinced that such investment in such area or activity cannot be attracted within reasonable cost or may result in unfavorable business climate.

CHAPTER VI.CORPORATE SOCIAL RESPONSIBILITY

Section 32. Registered enterprises and investors with projects under pioneer status must undertake Corporate social Responsibility (CSR), whereas, those on non-pioneer status are encourage 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, such as but not limited to:

a.    Greening/Re-greening of Area:-

1.       Rehabilitation and restoration of buildings or other structures in accordance with the municipal urban renewal and restoration plan;

2.       Re-greening or landscaping maybe in the form of urban greening or landscaping such as major road sides; areas with historical or tourism value; areas in bio-geographic zones; eroded slopes as technically appropriate based on assessment of 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.

b.    Social Projects:-

1.    Housing for employees;

2.    Educational projects;

3.    Cultural revivals;

4.    Programs for women, children, elderly, disabled, out of school youths;

5.    Community infrastructure projects aligned with the development plan of the LGU; and,;

6.    Such  other  projects  or  activities  based  on  the development needs of the community where the project is located;

c.     Income Generating/Livelihood Project

1.    Community projects that help promote the business

CHAPTER VII. FINAL PROVISIONS

Section 33. Annual Inspection. The Board shall conduct an annual inspection of the registered enterprises or through a local government agency to conduct said inspection. The inspection shall be limited to the total gross sales or receipts, compliance to the minimum wage law and to the provisions of this Code and the privileges granted as stated in the Certificate of Registration.

Section 34. Penalty Clause. Any violation of any provisions of this Code and other pertinent laws, rules and regulations shall be ground for the forfeiture of the incentives and privileges granted the registered enterprises, and shall be required to pay all taxes and fees due from the start of its business operation, upon recommendation of the Board and after due process shall pay a fine of not less than Php1,000.00 but not more than Php2,500.00 and or imprisonment of not less than one (1) month but not more than three (3) months, or both fine and imprisonment at the discretion of the Court. In case the violation is committed by a partnership, association, corporation or cooperative, the Manager, President or Chief Executive Officer shall suffer the penalty provided in this Code.

Section 35. Separability Clause. If for any reason or reasons, any part or provisions of this Code is declared invalid or unconstitutional, the other provisions, which are not affected, shall remain in full force and effect.

Section 36. Repealing Clause. All ordinances, executive orders, rules and regulations inconsistent with or in conflict with the provisions of this Code are hereby repealed, amended or modified accordingly.

Section 37. Effectivity. This Code shall take effect upon approval and after publication in a newspaper of general circulation and posting in conspicuous places, whichever occurs later.

Upon motion of Hon. Francis A. Calapini duly seconded by Hon. Rodolfo L. Garcia and Hon. Cafrialdes M. Guinto, Municipal Ordinance No. 2014-006 was declared approved in its third and final reading, with the following voting profile:-

In Favor: Members R. L. Garcia, K. G. Guinto, C. M. Guinto, F. A. Calapini, A. R. Espejo, J. B. Jimenez, and R. T. Dalo

Against: None                                       Abstention: None

I HEREBY CERTIFY to the correctness of Municipal Ordinance No. 2014-006.

(SGD)  OFELIA G. CLEMENTE

Secretary to the Sanggunian

ATTESTED:                                                                 APPROVED:

(SGD) REY G. ESPEJ0              (SGD) CRESCENTE N. GARCIA

Vice Mayor & Presiding Officer                                    Mayor

Nov. 10, 17, 24, 2014*IT

b. The economic rates of return;

e)       Free use of government land owned by the Municipal