Republic of the Philippines

Province of Aklan
Municipality of Balete

EXCERPTS FROM THE MINUTES OF THE 6TH REGULAR SESSION OF THE

SANGGUNIANG BAYAN (for the period 2010-2013) OF THE MUNICIPALITY OF
BALETE, AKLAN HELD ON THURSDAY, AUGUST 12, 2010 AT THE
SANGGUNIANG BAYAN SESSION HALL.
Present:
HON. ROMAN R. VILLARUEL Vice Mayor / Presiding
HON. SYLVIA V. YASA SB Member
HON. INOCENTES F. BANTIGUE, JR. SB Member
HON. CRISPINO P. BELTRAN, JR. SB Member
HON. APOLINAR C. CLEOPE SB Member
HON. PATRICK F. LACHICA SB Member
HON. CIRIACO T. FELICIANO SB Member
HON. PETER C. RECIDORO SB Member
HON. JOSELITO C. DELOS REYES SB Member
HON. BERNARDO M. SAUZA SB Member/Liga ng mga
Brgy. President
HON. MILCAH E. SAUZA SB Member/SK Mun. Fed.
President
Absent:
NONE
________________________________________________________________________

“ORDINANCE NO. 004-2010

“AN ORDINANCE ENACTING THE BALETE MUNICIPAL

INVESTMENT INCENTIVE CODE OF 2010

“Be it ordained by the Sangguniang Bayan of Balete, Aklan that:

CHAPTER I
GENERAL PROVISIONS

Section 1 – Title. This Ordinance shall be known as the Balete Municipal

Investment Incentive Code of 2010.”

Section 2 – Declaration of Policy – The Municipal Government of Balete hereby

declares, as a matter of policy, that the economic activities, particularly in identified
investment priority areas shall be encouraged, promoted and strengthened, in line with the
Municipal Development Plan. To this end, the Municipal Government shall endeavor to
spur this development by providing assistance to investors through tax exemption
privileges and other appropriate incentives. It shall also ensure the establishment of
adequate support facilities and services and assure investors of a peaceful environment
for business.

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 CHAPTER II

DEFINITION OF TERMS

Section 3. Definition of Terms – As used in this Code, the following terms and
phrases shall mean as follows:

3.a. Board – shall mean the Municipal Investment and Incentive Board:

3.b. Code – shall mean the Municipal Investment Incentive Code;

3.c. New Enterprise – shall mean the prospective enterprise which have not engaged in
any kind or type of business in the Municipality and is entrusted in establishing its
place of operation within the territorial jurisdiction of the Municipality.

3.d. Tax – shall mean a monetary contribution levied by the law making bodies,

3.e. Investment Priority Areas – shall mean the economic activities that the LGU’s
private and government agencies have identified as stated in the Investment
Development Plan of the Municipality.

3.f. Registered Enterprise – shall mean those enterprises registered in accordance

with the provisions of this Code.

3.g. Capitalization – shall mean the total or initial investment in a business that
has been paid-in a corporation, cooperative or partnership or invested in a single
proprietorship, which may be in cash or in property.

3.h. Existing Enterprise – shall refer to those business enterprise whose places of
operation are already within the territorial jurisdiction of the municipality.

CHAPTER III

SCOPE AND LIMITATION

Section 3. Scope and Limitation – This Code shall not apply to banking and other
financial institutions which are governed and regulated by the General Banking Act and
other laws under the supervisions of the Central Bank. This shall cover the following
nature of business:

a. Labor generating Enterprise;

b. Enterprises engaged in economic activities included in the investment priority
areas;
c. Manufacturing Enterprises using local raw materials
d. Tourism Oriented Enterprises;
e. Service Oriented Enterprises;
f. Water & Power Resources Development Enterprises;
g. Telecommunication Development Enterprises;
h. Agribusiness Enterprises; and
i. Other business activities identified by the Board pursuant to Section 15 of this
Code.

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 CHAPTER IV

MUNICIPAL INVESTMENT INCENTIVE BOARD

Section 4. The Municipal Investment Incentive Board- The Balete Investment

Incentive Board (BIIB) is hereby created to implement the provisions of this Code.

Section 5. Composition of the Board – The BIIB shall be composed of the

following.

Chairperson – The Municipal Mayor

Vice Chairperson - The Municipal Vice Mayor
Secretariat - Personnel, Investment Promotion Center

Members:

a. SB, Chairperson on Agriculture and Environment Committee

b. SB, Chairperson on Finance and Appropriation Committee
c. SB, Chairperson on Ordinances, Rules and Legal Matters Committee
d. SB, Chairperson on Public Works and Land Use Committee
e. Chairperson, Municipal Tourism and Development Council
f. Municipal Planning and Development Coordinator
g. Balete Labor Market Information Officer (PESO)
h. Two (2) representatives from the local business sector which organizations are
duly accredited or recognized by the Sangguniang Bayan.
i. One (1) representative from socio-cultural/economic-oriented organizations
either of local or international scope whose track of records includes at least
one year partnership with the LGU in the delivery of basic services.

Provided further, that membership of the Board may be increased by the

Sangguniang Bayan through the recommendation of the Board as it maybe deemed
necessary for the effective implementation of this Code.

Section 6. Powers and Function of the Board. – The primary function of the Board
shall be to establish a favorable and stable policy on business climate, which will
encourage and support private sector investments and operation of business activities
consistent with the development needs of Balete. Pursuant to this, the Board shall be
vested with the following powers:

A. To formulate the governing Implementing Rules and Regulations in the

implementation of the provision of this Code, subject to the approval of the
Sangguniang Bayan;

B. To initiate the conduct of technical researches in the identified priority

investment areas to be promoted as well as the appropriate incentives and
support measures to be extended to provide a conducive climate for
investments;

C. To formulate and adopt a long-range investment promotion programs and the

corresponding incentives and support measure to attract targeted investors;

D. To supervise the Investment Promotion center in the implementation of this

Code and the Balete Investment Promotion Programs;
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 E. To source out additional funding to supplement the budgetary support
provided by the Balete Municipal Government for the operation of the Balete
Investment Promotions Center;

F. To update the incentives granted in this Code;

G. To promote Balete as an investment destination;

H. To approve or deny any application for the grant of incentives as well as

suspend or revoke any registration for a just cause; and

I. To enter into agreement with any entity for the purpose of simplifying
systems, procedure, and requirements on investment and business operations
in the Municipality of Balete.

Section 7. Board Meetings and Quorum. – Within sixty (60) days upon approval
of this Code, the Municipal Mayor as Chairperson of the Board, shall convene the Board.
The Board shall meet at least once in every quarter or as often as maybe necessary and fix
during its organizational meeting. The presence of majority of its members shall
constitute a quorum and majority of the quorum of a meeting shall be required to exercise
its power and perform its function.

Section 8. Power and Functions of the Chairperson – The chairperson of the

Board shall.

a. Preside over the regular and special meeting of the Board.

b. Present annual or special reports to the members of the Board and to the
Sangguniang Bayan.

c. Perform such other duties as the Board may prescribe.

Section 9. Powers and functions of the Vice Chairperson – The Vice Chairperson
shall perform the duties of the chairperson in case of the latter’s absence or inability to
perform his/her duties.

CHAPTER V

CREATION OF MUNICIPAL INVESTMENT PROMOTION CENTER

Section 10. Creation of Balete Investment Promotion Center – There shall be an

established Balete Investment Promotions Center (BIPC) under the Office of the Mayor.
The BIPC shall be manned by one (1) Investment Promotions Officer and a staff who
shall serve as the Board’s implementing arm of its policies, rules and regulations. They
shall assist the investors in the processing of local permits.

Section 11. BIPC – The center provides the following services:

a. Provides information on investment opportunities, business procedures, permit

requirements, government regulations and other data required by the investor.

b. Guides the investor in completing the requirements of government regulatory

agencies.

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 c. Provides referrals to other government bodies, support organizations, service
providers and important contact.

d. Organizes appointments, itineraries and site visits.

e. Arranges logistical support.

f. Renders update regarding major infrastructure projects in the Municipality

both existing and planned as well as other programs and developments that
will impact the business environment.

g. Carries an active advocacy campaign to push infrastructure programs aimed at

providing necessary facilities, as well as policy reforms to better enhance
Balete Investment Incentive Code.

CHAPTER VI

INVESTMENT PRIORITY PLAN

SECTION 12. Criteria in Investment Priority Determination – No economic

activity shall be included in the investment priorities plan unless it is shown to be
economically, technically and financially sound after thorough investigation and analysis
by the Board.

The determination of preferred areas of investment to be listed in the investment

priorities plan shall be based on the following criteria:

a. Long-run comparative advantage

b. Economic soundness
c. Extent of contribution to a specific development goal
d. Market technical considerations
e. Value of social, cultural, environmental and moral objectives
f. Other indicators of comparative advantage

SECTION 13. Priority Areas – The following are the areas of opportunities
particularly in the priority sectors which were identified by the investment advisory
group. These areas shall be drawn and adopted by the Board for implementation under
Balete Investment Promotion Program upon the concurrence of the Sangguniang Bayan.

I. PRIORITY AREAS

1. Agriculture

 Poultry/Piggery/Livestock Production
 Vegetables/Fruits/Crops Production
 Rice and Corn Production
a. lowland
b. upland
 Aqua-culture
 Processed Foods, to include but not limited to the following:
a. Pinipig/Banana/Camote Crackers
b. Smoke Fish
c. Cassava Fudge
d. Rice Cake (all sorts of Kakanin)
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 e. Boneless Bangus

2. Forestry

 Bamboo Craft Production

 Piña Fiber Extraction and Cloth Weaving
 Rafia Craft Production
 Nito Craft Production
 Abaca Production/Fiber Extraction and Cloth Production
 Rattan Craft Production

3. Support Activities/Infrastructure

 Water Supply Improvement

 Power Supply Improvement
 Exhibition and Training Center
 Sanitary Landfill (BOT)
 Drainage System Improvement
 Road networks and bridges infrastructure
 Telecommunications

4. Basic Industries

 Recycling Industry
 Bottled Mineral Water
 Cottage Industry

5. Eco-Tourism

A. Tourism Site Development which shall include areas in the upland

barangays of Balete as described under the Comprehensive Land Use Plan
(CLUP) of this Municipality, notably Kipot Falls, Agtawagon Hill and
Murao Falls. Special mention is to be made concerning the Basura Garden
and Art Gallery of artist Cip Lachica in Poblacion and the Kabuhi-an
Livelihood Skills Training and Exhibition Center in Barangay Aranas.

B. Tourist Accommodations Facilities on the aforecited development sites

shall include, but not limited to:

 Hostels/lodging houses/cottages
 Resorts
 Restaurants

SECTION 14. Determination of Additional Investment Areas – Additional

investment areas may be included in the list of priority investment areas upon due
deliberation and approval by the Board and shall then be adopted for implementation
under the Balete Investment Promotions Program with the concurrence of the
Sangguniang Bayan.

Bases of inclusion of investment areas are:

a. Must generate high levels of employment

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 b. Must feature a high degree of value-added
c. Must create linkages with local industries
d. Must not have negative impact on the environment and the community

SECTION 15. Amendments – The Board at anytime, may amend the investment
development plan, modify any of the declaration of an investment areas or the
designation of measured capacities, or terminate the status of preference. In no case,
however, shall any amendments of the plan impair whatever rights 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 preferred area nor after approval of its
deletion as an investment priority area.

CHAPTER VII

REGISTRATION OF ENTERPRISES

SECTION 16. Qualifications of New Enterprises – This Code shall apply to any
individual, partnership or corporation, association and cooperative, provided that they
meet the following qualifications:

a. Must have complied with all the requirements mandated under existing local
and national laws and the Constitution.

b. Must be registered with appropriate government agencies;

c. Must have an initial investment of not less than One Million Pesos (Php. 1M)
but not more than 5 million, in case of a small-scale enterprise; over Five
Million (Php. 5M) but not more than 20 million (Php. 20M), in case of a
medium-scale enterprise; and over Twenty Million (Php. 20M), in case of a
large-scale enterprise.

d. Must remit and actually deposit the required amount to any bank of their
choice in the Province of Aklan and can be covered by a Certificate of Deposit
duly certified by the bank manager.

e. That the new enterprise will provide out of the Balete Labor Force an
employment of no less than ten (10) persons in case of a small scale
enterprise, at least twenty (20) persons in case of a medium scale enterprises,
and at least (50) persons in case of a large enterprise, who are bonafide
residents of Balete, Aklan.

SECTION 17. Qualifications of Existing Enterprises- Any existing enterprise may

benefit from incentives, provided they meet the following qualifications:

a. That the existing enterprise whose place of operation or production is already

within the territorial or production is already within the territorial jurisdiction
of the Municipality of Balete;

b. Must have complied with all the requirements mandated by existing local and
national laws;

c. The business falls under any of the activities mentioned in Section 13 hereof
or in the Investment Priority areas;
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 d. Expand its existing production facilities such as construction of new buildings,
installation of new machineries and equipment or improvements thereof which
will result in an increase in production;

e. That the existing enterprise shall provide an employment of 70% of the total
labor force requirement who are bonafide residents of the Municipality of
Balete.

SECTION 18. Registration Requirements – New or existing enterprises shall file

its application for registration with the Board through the Municipal Investment
Promotion Center. A non-refundable registration/filing fees shall be paid by the
applicant-firm to the Municipal Treasurer or duly authorized representative scheduled as
follows:

Registration Fee for Investment Costing:

Php. 1,000.00 Php. 1 million – 5 million
Php. 2,000.00 over 5 million – 20 million
Php. 3,000.00 over 20 million

And shall be required to submit the following documents:

a. Three (3) copies of duly completed application form to be provided by

the board through the MIPC in accordance with the provision’s of this
Code:

b. A copy of the articles of Incorporation/Partnership and by-laws as

approved by the securities and exchange commission;

c. A certified true copy of the Certificate of Registration issued by the

Securities and Exchange Commission, the Department of Trade and
Industry, Board of Investment or the CDA as the case maybe;

d. For existing enterprises, a copy of the patent audited financial

statement of the applicant firm;

e. A copy of the feasibility study showing the market, technical, financial

and socio-economic viability of the propel investment;

f. For corporate type of ownership, a board resolution authorizing the

person to file the application;

g. Proof of ownership or sale or lease or any other arrangement over the

project site.

SECTION 19. Approval and Registration Procedures – The Board is authorized to

adopt rules and regulation to facilitate action on application filed with it; prescribe criteria
for the evaluation of several applications filed in one preferred area devise standard forms
for use of applicants.

SECTION 20. Certificate of Registration – A registered enterprise under this

Code shall be issued a certificate of registration with the signature of its Chairperson and
such other officer of the Board it may empower and designate for the purpose. The
certificate of registration shall be in such from and style as the Board may determine.
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FISCAL INCENTIVES:

Any enterprise whether new of existing shall be entitled to graduated incentives

for its first three years of operation or upon availing of these incentives on the following:
a. Municipal Taxes
Year 1 – 100% exempted
Year 2 – 50% exempted
Year 3 -- 25% exempted
b. Municipal Permits & Regulatory Fees

NON-FISCAL INCENTIVES:

a. Site selection and negotiation assistance

b. One-stop shop documentation center/processing application
c. Labor recruitment and arbitration assistance

Incentives granted to existing enterprises shall apply only to additional

capitalization and shall not apply to previous investment. In no case however, shall rights
to incentives be transferred from legal grantee to another and shall be enjoyed on one
occasion only.

CHAPTER IX

APPROPRIATION

SECTION 21. Municipal Investment Promotion Fund – There shall be allocated a

Municipal Investment Promotion Fund, an initial funding to defray the expenses
necessary for the implementation of this Code. Said fund shall be used for maintenance of
Municipal Investment Promotion Center, Investment Development and promotional
activities of the Municipality as determined by the MIB, subject to the usual accounting
and auditing rules and regulations.

CHAPTER X

FINAL PROVISIONS

SECTION 22. Inspection – The MIIB shall conduct an annual inspection of

registered enterprises on their programs either by itself of by requesting a local
government agency to conduct the same. The inspection shall be limited to the total gross
sale; compliance of the Minimum Wage Law; or to the provision of this Code.

SECTION 23. Administrative Sanctions - Violation of any provisions of

the Code and the other pertinent laws shall:

a. Forfeit the incentives granted to the registered enterprises;

b. Pay all taxes and fees due from the start of the business operation, upon
recommendation of BIIB;
c. Penalize with a fine of not less than ONE THOUSAND PESOS (P 1,000.00)
but not more than TWO THOUSAND FIVE HUNDRED PESOS (P2,500.00) or

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imprisonment of not less than One (1) month but not more than Six (6) months or both at
the discretion of the court.

In case the violation is committed by a partnership, corporation, association or

cooperative, the manager or president or chief executive/officer as the case maybe, shall
suffer the penalty provided herein.

Section 24. Separability Clause – If for any reason, any section or any provision
of this Code shall be deemed unconstitutional or invalid, other section or provisions
hereof not affected thereby shall remain in full force and effect.

Section 25. Repealing Clause. – All ordinances, resolutions, executive orders and
rules and regulations inconsistent or in conflict with the provisions of this Code are
hereby repealed, amended or modified accordingly.

Section 26. Separability Clause. If for any reason any section or any provision of
this Code shall be deemed unconstitutional or invalid, other sections or provisions hereof
not affected thereby shall remain in full force and effect.

Section 27. Repealing Clause. All ordinances, resolutions, executive orders and
rules and regulations inconsistent or in conflict with the provisions of this Code are
hereby repealed, amended or modified accordingly.

Section 28. Effectivity. This Code shall take effect upon its approval by the
Sangguniang Panlalawigan.

Enacted: August 5, 2010.

Voting on the foregoing is as follows:
AYES: Hon’s. Sylvia V. Yasa, Inocentes F. Bantigue, Jr., Cripino P. Beltran, Jr.,
Apolinar C. Cleope, Patrick F. Lachica, Ciriaco T. Feliciano, Peter C. Recidoro, Joselito
C. Delos Reyes, Bernardo M. Sauza and Milcah E. Sauza.
NAYS: None
ABSTAINED: None
I HEREBY CERTIFY to the correctness of the foregoing ordinance.

AL F. DE LA CRUZ
Secretary to the Sanggunian

ATTESTED:

ROMAN R. VILLARUEL
Vice Mayor/Presiding

APPROVED BY:

TEODORO V. CALIZO, JR.

Municipal Mayor
Date of Approval: ________________

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