Republic of the Philippines
HOUSEOF REPRESENTATIVES
Quezon City

SIXTEENTH CONGRESS
First Regular Session

House BiLt No. 4005

INTRODUCED BY HONORABLE CHERYL DELOSO-MONTALLA

EXPLANATORY NOTE

This bill seeks to fortify and reaffirm the powers granted to the Subic Bay
Metropolitan Authority (SBMA) by Republic Act No. 7227, otherwise known as the
Bases Conversion and Development Act of 1992 as the operating and implementing
arm of the government over the Subic Bay Freeport Zone (SBFZ). It likewise seeks to
reinforce SBMA’s capability to fulfil to its fullest sense its mandate of creating “self-
sustaining” Freeport out of the SBFZ and make SBMA's board composition updated
with the current times.

The original intent of Republic Act 7227 to make SBMA as an independent
government arm to manage the affairs of the Subic Bay Freeport Zone has slowly been
diminished as a result of the interference of other government agencies and
instrumentalities like the Maritime Industry Authority (MARINA), Philippine Reclamation
Authority (PRA) and the Department of Environment and Natural Resources (DENR). It
is also the intention of this bill to restitute the sole authority and autonomous nature of
SBMA over the Freeport zone.

Twenty-two years after its enactment into law, several provisions of Republic Act
7227 are already outmoded. It is the intention of this bill to realign these outmoded
provisions to the needs of the present and future times of the free port zone.

It is in this light that this bill is being filed and immediate passage of this bill is
eamestly sought.

2)" District, Zambales


Republic of the Philippines
HOUSEOF REPRESENTATIVES
Quezon City

SIXTEENTH CONGRESS
First Regular Session

House BiLLNo, __ 4005

INTRODUCED BY HONORABLE CHERYL DELOSO-MONTALLA

AN ACT
PROVIDING FOR MEASURES TO STRENGTHEN THE SUBIC BAY
METROPOLITAN AUTHORITY, AMENDING FOR THE PURPOSE REPUBLIC ACT
NO. 7227, OTHERWISE KNOWN AS THE BASES CONVERSION AND.
DEVELOPMENT ACT OF 1992, AS AMENDED BY REPUBLIC ACT NO. 9400 AND
OTHER RELATED LAWS AND FOR OTHER PURPOSES

Be it enacted by the Senate and House of Representatives of the Philippines in
Congress assembled:

SECTION 1. Section 12 (c) of Republic Act No. 7227, as amended, is hereby
amended as follows:

“Section 12. Subic Special Economic Zone. — xxxK — XXXK_ XXXK

(©) The provision of existing laws, rules and regulations to the contrary notwithstanding,
no national and local taxes shall be imposed within the Subic Special Economic Zone.
In lieu of ALL OTHER NATIONAL AND LOCAL TAXES, a five percent (5%) tax on
gross income earned shall be paid by all business enterprises within the Subic Special
Economic Zone and shall be remitted as follows: TWO PERCENT (2%) to the National
Government, and ONE PERCENT (1%) to the Subic Bay Metropolitan Authority (SBMA)
AND TWO PERCENT (2%) for distribution to the local government units affected by the
declaration of and contiguous to the zone, namely: the City of Olongapo and the
municipalities of Subic, San Antonio, San Marcelino and Castillejos of the Province of
Zambales; and the municipalities of Morong, Hermosa and Dinalupihan of the Province
of Bataan, on the basis of population (50%), land area (25%), and equal sharing (25%).
XXX XXXK XXXK

SECTION 2. Section 13 (b) and (c) of Republic Act No. 7227 is hereby amended
as follows:

“Section 13. Subic Bay Metropolitan Authority. — xxxx xxx XXxxx

(b) Powers and Functions of the Subic Bay Metropolitan Authority. — The Subic
Bay Metropolitan Authority, otherwise known as the Subic Authority, HAVING
AUTHORITY AND JURISDICTION OVER ALL BUSINESS AND ECONOMIC
ACTIVITIES WITH THE SUBIC BAY FREE PORT, shall have the following powers and
functions:

OK HOOK 100K

(3) TO UNDERTAKE AND REGULATE THE ESTABLISHMENT,
OPERATION AND MAINTENANCE OF TELECOMMUNICATIONS, and
other services and infrastructure in the Subic Special Economic Zone


including shipping and MARITIME related BUSINESSES, stevedoring and
port terminal services or concessions, incidental thereto and airport
operations in coordination with the Civil Aeronautics Board, and to FIX
AND IMPOSE just and reasonable rates, fares, charges and other prices
thereto.

(4) 7000 00% 900K
(10) 200 xxx 9000

(11) TO RECLAIM LAND IN THE SUBIC BAY FREEPORT BUT
NOT LIMITED TO FORESHORE AND SUBMERGED AREAS BY
DREDGING, FILLING OR ANY OTHER MEANS AND TO ACQUIRE,
DEVELOP, IMPROVE, ADMINISTER, DEAL — IN, SUBDIVIDE AND
LEASE RECLAIMED LAND THEREIN;

(12) TO PROVIDE FOR, OPERATE OR ADMINISTER SUCH
SERVICES AS MAY BE NECESSARY FOR THE EFFICIENT,
ECONOMICAL AND BENEFICIAL UTILIZATION OF THE RECLAIMED
AREAS IN THE SUBIC BAY FREE PORT.

(c) Five (5) representatives from the private sector coming from the
TOURISM, MANUFACTURING AND PRODUCTION, MARITIME AND AVIATION,
TRADE AND INDUSTRY, AND LOGISTICS SECTOR; xxxx 200”

SECTION 3. Repealing Clause. All laws, decrees, orders, rules and regulations
or other issuances or parts thereof inconsistent with the provisions of this Act are
hereby repealed or modified accordingly.

SECTION 4. Separability Clause. \f any provision of this Act is subsequently
declared unconstitutional, the remaining provisions hereof shall remain in full force and
effect.

SECTION 5. Effectivity. This Act shall take effect fifteen (15) days after its
publication in the Official Gazette or in any two (2) newspapers of general circulation.

Approved,