Republic of the Philippines
HOUSE 0F REPRESENTATIVES
Quezon City
NINETEENTH CONGRESS
Second Regular Session
HOUSE BILL No.
10045
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Introduced  by: REPRESENTATIVE ROSEMARIE CONEJOS PANOTES
EXPLANATORY NOTE
TheProvinceofCamarinesNorteisoneofthepoorestprovincenotonlyintheBicolRegionbut
intheentirecountry.In fact,theprovincerankednumberfortyeighth(48th)outofeichtyone(81)provinces
inthe2022RankingofProvincesconductedbytheDepartmentofTradeandlndustry(DTI)basedon
economicdynamism,govemmentefficiency,infrastructure,resiliencyandinnovation.
Thereisanurgentneedthereforetofindwaysandmeansthatwilleffectivelytriggerorstimulate
economic  activities  in  the  province  in  order to  attract the  .much  needed  investments.  The  infusion  of
domestic  and foreign capitals will certainly propel economic  growth and  development not only  in the
ProvinceofcamarinesNoriebutitsneichbours.Butunderthepresentsituation,thiswillonlybeanillusion
of grandeur  if the  national  government  will  not  come  to  the  rescue  by  encouraging  or  initiating  the
establishmentofeconomiczoneandFreepoftthatwillduplicatethesuccessesoflocalgovemmentunits
withthiskindofeconomicmagnettoprospectiveinvestors.
This  bill  therefore  seeks  to  establish  a  special  economic  and  Freepolt  in  the  Municipality  of
Panganiban,ProvinceofCamarinesNorte.
Theprimaryobjectiveofthisbillistounlockeconomicpotentialoftheprovincetobedeveloped
intoagro-industrial,commercialbanking,touristattractionordestination,investmentorfinancialcenter.
Moreover,thesettingupofaFreeportistoenabletheunloadingofimportedgoodsfortranshipmentor
storage,repacked,sorted,mixedandsubjectthegoodstoimporiduties.
TheestablishmentoftheJosePanganibanSpecialEconomicZoneandFreepatwillcertainlyopen
the  floodgates  of job  opportunities  and  businesses  not  only  to  Bicolanos  but  also  to  residents  of its
neighboring provinces.
Inviewoftheforegoingreasons,theapprovalofthisimportantlegislativemeasureiseamestly
sought.
ROsHMARIA#OffiirospANOTEs
Representative
Second District, Camarines Norte
1


RepublicofthePhilippines
HOUSE OF REPRESENTATIVES
Quezon City
NINETEENTH CONGRESS
Second Regular Session
HOUSEBILLNo."5
Introducedby:REPRESENTATIVEROSEMARIECONEJOSPANOTES
AN ACT
ESTABLISHINGTHEJOSEPAINGANIBANSPECIALECONOMICZONEAND
FREEPORTINTHEPROVINCE0FCAMARINESNORTE,ANDAPPROPRIATING
FUNDS THEREFOR
BeitenactedbytheSenatean4.H?useOfRepresentatives
of the iiiilippines in Congress assembled:
CHAPTER I
GENERAL PROVISIONS
SECTI0N1.Sftorfrz.ffe.-ThisActshallbeknounasthe"JosePanganibanSpecial
Economic Zone and Freeport Act."
SEC.  2.  DecJarclfl.o#  a/ PoJJ.ey.  -It is  declared the policy  of the  State to  encourage,
promote,andacceleratethesoundandbalancedindustrial,economicandsocialdevelopmentof
thecountry.Theestablishmentofspecialeconomiczonesattractlegitimateandproductiveforeign
investmentsinstrategiclocationsinthecountrywhichwillresultingeneralemployment,increase
productivity,andpercapitaincometherebyenhancingthequalityoflifeoftheFilipinopeople.
CHAPTER 11
CREATION0FTHEECONOMICZONEANDFREEPORT
SEC.3.Creationof!h.eJ`Ose`P_¢~n.9^a_np=.n+§`Pn:+CQt?!GEhcT°s:°or#osze°pneanagn£,e#;s
Subjecttotheconcurrenceofthelocalgoverrmentunits(LGUs)ofJosePanganiban,thereis
herebyestablishedaSpecialEconomicZoneandFreepoftwhichshallcoveraparticularlandarea
intheMunicipalityofJosePanganibanasmaybedeteminedhereinafter.Itsspecificmetesand
boundsshallbeparticularlydefinedinapresidentialproclamationtobeissuedbythePresident:
Prov!.ded,Thatthelandsembracedthereinshallbecontiguousandadjacent.
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Srmc.  4.  Creation  Of  the  lose  P8Ingndhan  Speci?l  TCon°_in_t: .LZ:#`eT^=^ndD.Frneoenp:Qrtn
4%ffoorrty.  - There is hereby created a body corporate to be knoun as the  "Jose Panganiban
SpecialEconomicZoneandFreeporiAuthority"(JPSEZFA)whichshallmanageandoperatethe
JosePanganibanEcozoneandshallbeorganizedwithinonehundredeighty(180)daysafterthe
effectivityofthisAct.Itshallhaveacoaporatelifeoffifty(50)yearscountedfromtheeffectivity
of this Act, unless otherwise extended by Congress.
SEC.  5.  GotJem..ng PrJ.racJ.pJes.  ~  The  JPSEZFA  shall  manage  and  operate  the  Jose
PanganibanEcozoneunderthefollowingprinciples:
(a)WithintheframeworkandlimitationsoftheConstitutionandapplicableprovisionsof
RepublicActNo.7160otherwiseknownastheLocalGoverrmentCodeof1991,as
anended;
b) The Jose Panganiban Ecozone  and Freepori  shall have  a domestic and international
airport  and  be  developed  into  and  operated  as  a  decentralized,  self-reliant  and  self-
sustainingindustrial,commercial,trading,agro-industrial,tourist,banking,financial,and
investmentcenter.ItshallalsoprovidesuitableresidentialareaswithinJosePanganiban
Ecozone;
c)  The  Jose  Panganiban  Ecozone  and Freepori  shall  be  equipped with transportation,
telecommunications,  and  other  facilities  needed  to  attract  legitimate  and  productive
investments,generatelinkagelndustriesandemploymentopportunitiesforthepeopleof
theMunicipalityofJosePanganibananditsneighboringtounsandcities;
d)TheJosePanganibanEcozoneandF:eepoctmayestablishmutuallybeneficialeconomic
relationswithotherentitiesorenteapnsewithinthecountryand,withrespecttoforeign
entitiesorenterprise,itshallbesubjecttotheadministrativeguidanceoftheDepartment
ofForeignAffalrs(DFA),thePhilippineEconomicZoneAuthority(PEZA),and/orthe
Departmentoftradeandlndustry(DTI);
e)ForeigncitizensandcompaniesounedbynonlFilipinosinwhateverproportionmay.set
upenteaprisesintheJosePanganibanEcozoneandFreeport,eitherbythemselvesorina
jointventurewithFilipinosinanysectorofindustry,intemationaltrade,andcommerce
within the Jose Panganiban Ecozone and Freeport;
TheJosePanganibanEcozoneandFreeporishallbemanagedandoperatedasaseparate
customsterritorytherebyensuringthefreeflowormovementofgoodsandcapitalwithin,into,
andoutofitsterritory,andshalllikewiseprovideincentivessuchastarandduty-freeimportations
ofrawmaterials,capitalandequipmenttoregisteredenterpriseslocatedtherein,asprovidedunder
RepublicActNo.11534,otherwiseknounasthe"CoxporateRecoveryandTaxlncentivesFor
EntexprisesAct".
g)TheareascomprisingtheJosePanganibanEcozoneandFreepoctmaybeexpandedor
reduced,whennecessary,throughaPresidentialProclanationissuedforthepurpose;
h)GoodsmanufacturedbyaJosePanganibanEcozoneandFreeporientitiesorenterprises
shallbemadeavailableforimmediateretailsaleinthedomesticmarket,subjecttothe
payment  of corresponding  taxes  on  raw  materials  and  other  regulations  that  may  be
fomulatedbytheJPSEZFAtogetherwiththePEZA,theBureauofCustoms(BOC),and
theDTI.However,inordertoprotectdomesticindustries,aNegativeListofindustries
shallbedrawnupandregularlyupdatedbyPEZA.
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Entities or enteaprises engaged in industries  included in the Negative List shall not be
allowed to sell their products locally; and
i)  The  defense  of the  Jose  Panganiban  Ecozone  and  Freepoft  and  the  security  of its
perimeter fence shall be the responsibility of the National Government, in coordination
with the JPSEZFA and the LGUs.
SEC. 6. Development Goals Of the Jo_Se Pan.ganipen E??Z_O.I.e.:^::= +PasF^ZnE.+An`Sr#`RI:i
includeinitsdevelopmentgoalsfortheJosePanganibanEcozoneandFreepolttheconstruction
andoperationofadomesticandintemationalairporiandalliedbusinesseswithinthefranework
of national development plans, policies, and goals.
The  Chairperson-Administrator  shall,  upon  approval  by  the  Board,  submit  the  Jose
Panganiban Ecozone and Freepost plans, programs,  and projects to the Regional Development
Councilforinclusionandinputstotheoverallregionaldevelopmentplan.
SEC.7.C¢pl.f¢J..z¢fl.ore.-TheJPSEZFAshallhaveanauthorizedcapitalstockofTwo
Billion (P2,000,000,000) nolpar shares  at a minimum issue  of Ten pesos  (PIO.00)  each,  the
majoritysharesofwhichshallbesubscribedandpaidforbytheNationalGovemmentandthe
LGUsembracingtheJFSEZFA.TheBoardofDirectorsoftheJPSEZFAmay,withthewhtten
concurrenceoftheSecretaryofFinance,sellshares,representingnotmorethanfortypercentum
(40%)ofthecapitalstockoftheJPSEZFAtothegeneralpublicundersuchpolicyastheBoard
andtheSecretaryofFinancemaydetermine.TheNationalGoverrmentandtheLGUsshallinno
case our less than sixty per centun (60%)  of the total  issued and outstanding capital  of the
JPSEZFA.
TheamountnecessarytosubscribeandpayforthesharesoftheNationalGoverrmentto
thecapitalstockoftheJPSEZFAshallbeincludedintheanualGeneralAppropriationsAct.For
theLGUsconcemed,thefundsshallbetakenfromtheirNationalTaxAllocationO{TA)andother
local funds.
SEC.8.Prfrocl.p¢JO+ffjiceo/ffreJPSEZFH.~rJ!eJPSEZFHshallmaintainitsprincipal
officeattheJosePanganiban,butltmayestablishliaisonofficeswithinthePhilippines,asmay
benecessary,fortheproperconductofitsbusiness.
SEC.  9.  Powcrg  ¢»d F«»ctr.o»s  a/ ffoc  JPSEZF4.  ~ The  JPSEZFA  shall  have  the
following powers and functions:
a)   To  operate,  administer,  manage,  and  deve}o.p  the  Jose  Panganiban  Ecozone  and
FreepoftaccordingtotheprinciplesandprovisionssetforthinthisAct;
b)Toregister,regulate,andsupervisetheentitiesandenterprisesintheJosePanganiban
EcozoneandFreeporiinanefficientanddecentralizedmanp?r,subjecttoexistinglaws;
c)TocoordinatewithLGUsandexercisecontrolandsupervisionoverthedevelopment
plans,activities,andoperationsoftheJosePanganibanEcozoneandFreeport;
d)Toundertaketheestablishment,construction,operation,andmaintenanceofpublic
4


utilities, other services, and infrastructure in the Jose Panganiban Ecozone including,
but not limited to,  light and power,  shipping, banging,  stevedoring, cargo handling,
hauling, warehousing, storage of cargo, port services or concessions, piers, wharves,
bulkheads, bulk terminals, mooring areas,  storage areas, roads, telecommunications,
transport,  bridges,  terminals,  conveyors,  water  supply  and  storage,  sewerage,  and
drainage: Provz.c7ec7,  That such shall be in compliance and coordination with the rules
and regulations of the concerned departments and agencies;
e)   To construct, acquire, own, lease, operate, and maintain on its own or through contracts,
franchise, licenses, bulk purchase from the private sector or permits under any of the
schemes allowed in Republic Act No. 6957, otherwise known as the  "Bwz.Jc7-Ope7'crJe-
rr¢#s/er fczw'',  as  amended,  or joint venture,  adequate  facilities  and  infrastructure
required or needed for the operation and development of the Jose Panganiban Ecozone
and  Freeport,   in  coordination  with  appropriate  national   and   local   government
authorities and in conformity with applicable laws thereof;
I)   To  approve  plans,  prograns,  and  projects  of the  Jose  Panganiban  Ecozone  and
Freeport, to be submitted to the Regional Development Council for Inclusion and inputs
to the overall Regional Development Plan;
g)   To raise or borrow, within the limitation provided by law, and subject to the approval
of the President of the Philippines and the Monetary Board of the Bangko Sentral Ng
Pilipinas (BSP), upon recommendation of the Department of Finance, as the case may
be, adequate and necessary funds from local or foreign sources, to finance Its projects
and programs under this Act and for this purpose, to issue bonds, promissory notes and
other forms of securities, and to secure the same by a guarantee, pledge, mortgage, deed
of trust or an assignment of all or part of its property or assets;
h)   To create, operate, or contract to operate such functional units or offices of the
JPSEZFA, as it may deem necessary;
i)    To adopt, alter, and use a corporate seal; contract, lease, buy, acquire, own or otherwise
dispose  of personal  and/or real  property of whatever nature;  sue  and  be  sued;  and
otherwise carry out its functions and duties, as provided for in this Act;
j)    To issue certificates of origin for products manufactured or processed in the Jose
Panganiban Ecozone, in accordance with prevailing rules of origin and the pertinent
regulations of the PEZA, the DTI and/or, the Department of Finance (DOF);
k)   To establish one-stop shops for the issuance of all necessary permits, clearances,
licenses, and other similar certifications to conduct such activities intended to improve
the  ease  of doing  business  within  the  Jose  Panganiban  Ecozone  and  Freeport,  in
coordination  with  government  agencies  having jurisdiction  over  activities  therein:
Provz.cJec7, That all government agencies are directed to provide and extend utmost and
full cooperation to the Jose Panganiban Ecozone and Freeport in the establishment of
such one-stop shops;
I)   To  provide   internal   security  to  the   Jose  Panganiban  Ecozone   and  Freeport,   in
coordination with the  Philippine National Police and other agencies and the affected LGU.
For this purpose, the JPSEZFA shall provide and establish its own internal security and
firefighting forces or hire others to provide the sane;
in) To issue rules and regulations consistent with the provisions of this Act, as may be
necessary, to accomplish and implement the purposes, objectives, and policies provided
herein; and
5


n) To exercise such powers as may be essential, necessary, or incidental to the powers
grantedtoithereunder,aswellasthosethatshallenableittocanyout,implementand
accomplishthepurposes,objectives,andpoliciesofthisAct.
SEC.10.Bo¢rdo/DI.rec"so/ffoeJPSEZFH.-ThepowersoftheJPSEZFAshallbe
vestedinandexercisedbyaBoardofDirectors(Board)whichshallbecomposedofthefollowing:
a)TheChaixperson,whoshallatthesanetimebetheAdministratoroftheJPSEZFA;
b)AVice-ChairpersonwhoshallbeelectedfromamongtheMembersoftheBoardof
Directors;
c)Membersconsistingofthefollowing:
1) The  Socioeconomic Planning Secretary or a designated representative  of the
NationalEconomicandDevelopmentAuthorityquEDA)asexoj7?cz.omember;
2)TheSecretaryoradesignatedrepresentativeoftheDTIasexoj73c!.omember;
3)TheSecretaryoradesignatedrepresentativeoftheDOFasexo#c!.omember;
4)One(1)representativefromtheProvinceofCamarinesNorteasex
oj7j7}cz.omember;
5) One (1) representativefromtheMunicipalityofJosePanganibanas"o#".a
member;
6)One(1)representativefroTbusinesssectorwhosebusinessislocatedwithinthe
legislativedistrictcoveringthepremisesoftheJosePanganibanEcozoneandFreepoftas
regular member;
7)  One  (1)  representative  from the  domestic  investors  in the  Jose  Panganiban
Ecozone and Freeport as regular member;
8)  One  (1)  representative  from  the  foreign  investors  in  the  Jose  Panganiban
EcozoneandFreeportasregularmember;and
9)  One  (1)  representative  from  the  workers  working  in  the  Jose  Panganiban
EcozoneandFreeportasaregularmember.
TheChairpersonandthemembersoftheBoardshallbeappointedbythePresidentofthe
Philippinestoserveforatermofsix(6)years,unlesssoonerseparatedfromserviceduetodeath,
voluntaryresignation,orremovalforcause.
Incaseofdeath,resignationorremovalforcause,theirreplacementsshallserveonlythe
unexpiredportionoftherespectiveterns.
RegularmembersshallbeappointedbythePresiaentoiilicriil.iipp+,,..__.,.______
BoardunlessheisFilipinocitizen,ofgoodmoralcharacter,ofprovenprobityandintegrity,anda
degree-holderinanyofthefollowingfields:economics,business,publicadministration,law,
managementortheirequivalent,andwithatleastten(10)yearsrelevantworkingexperience
preferablyinthefieldofmanagementorpublicadministration.
ThemembersoftheBoardshalleachreceiveperdiematratestobedeterminedbythe
DepartmentofBudgetandManagement(DBM),inaccordancewithexistingrulesandregulations:
ProvI.ded,fooweverThatthetotalperdiemcollectedeachmonthshallnotexceedtheequivalent
perdiemforfour(4)meetings.UnlessthePresidenthasfixedahigherperdiemforthemembers
bythePresidentofthePhilippinesasamemberofthe
1  ..      ___I  :_+^„..;+`r   allA  a
6


of the Board, such per diem shall not be more than ten thousand pesos (Plo,000.00) for every
Board meeting.
SEC.11.OI.grIII.z¢ft.oro¢I.dPersonroel-TheBoardofDirectorsoftheJPSEZFAshall
provideforitsorganizationalstructureandstaff.TheBoardshallappointandfixtheremuneration
and  other  emolunents  of  its  officers  and  employees  in  accordance  with  existing  laws  on
compensationandpositionclassification.TheBoardshallhaveexclusiveandfinalauthorityto
promote,transfer,assign,reassign,orremoveofficersoftheJPSEZFA,anyprovisionofexisting
lawtothecontrarynotwithstanding.TheChairperson-Administratorshallexecutethedecisionsof
theBoard.TheofficersandemployeesoftheJPSEZFA,includingallmembersoftheBoard,
shallnotengagedirectlyorindirectlyinpartisanpoliticalactivitiesnortakepatinany
election, except to vote.
NoofficeroremployeeoftheJPSEZFA,subjecttocivilservicelawsandregulations,shall
beremovedorsuspendedexceptforcause,asprovidedbyCivilServiceCommission'slawsand
regulations.
SEic. L2. Powers  and Duti?s  Of the Cha!r?e:.s_o~r-Administrator.  ~ The Ckeal[rperson-
Administratorshallhavethefollowingpowersandduties:
a)TodirectandmanagetheaffairsoftheJPSEZFAinaccordancewiththepoliciesofthe
Board;
b)ToimplementintemalorganizationoftheJPSEZFAundersuchconditionsthatthe
Board may prescribe;
c)TosubmitananunlbudgetandnecessarysupplementalbudgettotheBoardforits
approval,
d)Tosubmitwithinthirty(30)daysafterthecloseofeachfiscalyearanarmualrepoftto
theBoardandsuchotherreportsasmayberequired;
e)TorecommendtotheBoardforitsapproval,policies,systems,procedures,rulesand
regulationsthatareessentialtotheoperationoftheJosePanganibanEcozoneandFreeport;
DTorecorrmendtotheBoardtheremunerationandotheremolunentsofitsofficersand
employeesinaccordancewithexistinglawsoncompensationandpositionclassification;
g)Tocreateamechanismincoordinatignwithrelevantagenciesforthepromotionof
industrialpeace,theprotectionoftheenvironment,andtheadvancementofthequalityof
lifeintheJosePanganibanEcozoneandFreeport;and
h)ToperformsuchotherdutiesasmaybeassignedttytheBoardorwhicharenecessary
or incidental to the office.
Sec.13.1egrJCo%rese[-TheJPSEZFAshallhaveitsounintemallegalcounselunder
thesupervisionofthegovernmentcoaporatecounsel.Whentheexigenciesofitsbusinessesand
operationsdemandit,theJPSEZFAmayengagetheservicesofanoutsidecounseleitheronacase
to case or on a fixed retainer basis.
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CHAPTER Ill
INCENTlvFs To EcOzoNH ENTERPRISEsnNVHSTORs
SEC.14.JrotJesforgyisa~AnyforeignnationalwhoinvestsanamountofTwohundred
thousandUSdollars(US$200,000.00),eitherincashorequipment,inaregisteredenterpriseshall
be entitled to an investor's visa: Provl.decJ, That the foreign national:
a)Mustbeatleasteighteen(18)yearsofage;
b)Mustnothavebeenconvictedbyflnaljudgmentofacrimeinvolvingmoralturpitude;
c)Mustnotbeafflictedwithanyloathsome,dangerousorcontagiousdisease;
d)Mustnothavebeenconflnedinaninstitutionforanymentaldisorderordisability;and
e)Mustbefinanciallycapableasbomeoutbycredibleandverifiableevidence.
AforeignnationalmayresideinthePhilippineswhiletheinvestmentsubsists.
Toprovethis,theforeignnationalshallsubmitananunlreporiinthefomdulyprescribed
forthepurpose.ShouldsaidinvestmentsbewithdrawnfromthePhilippines,theinvestor'svisa
issued to said foreign national shall be automatically revoked.
TheauthoritytoissuevisasandworkpemitsshallremainwiththeBureauoflmmigration
(81)andtheDepartmentofLaborandEmployment(DOLE),respectively:Prov!.ded,Thatthe81
andtheDOLEshallimplementmeasurestoexpeditetheprocessingofsuchvisasandpermitsfor
workersintheJosePanganibanEcozoneandFreeporiandcoordinatewiththeJPSEZFAforthe
purposeofimprovingeaseofdoingbusiness.
SEC.   15.   FiscoJ  Jrocel.fI.veg.   -  Registered   enterprises   operating  within  the   Jose
PanganibanEcozonemaybeentitledtotheexistingfiscalincentivesprovidedandgrantedunder
Title XIII (Tax Incentives) of the National Internal Revenue Code of 31  1997, as amended by
RepublicActNo.11534,otherwiseknounasthe"CorporateRecoveryandTarlncentives for
Enterprises Act."
sEc. 16. Administration,  In|Plementati°n  ,an|. ¥~°~r`t`t_°:.I.n~g^{°{Q:T=rf:%=:` =T£ |%e
interestofenhancingtransparencyinthemanagementandaccountingoftaxincentivesintheJose
Panganiban  Ecozone,   and   ensuring  the  proper   administration,   management,   enforce.Tpent,
implementationandmonitoringoftaxincentives,theJPSEZFAshallcomplywiththeprovisions
ofRepublicActNo.11534,otherwiseknounasthe"CorporateRecoveryandTaxlncentives for
EnterprisesAct'.
TheBOCshallsetupandestablishacustoms-controlledareaoutsidethepremisesofthe
JosePanganibanEcozoneandFreepocttofacilitatepaymentofdutiesandtaxesongoodsentering
thePhilippinecustomsterritory:ProvI.ded,ThatnotwithstandingthelimitationsonthisAct,the
JPSEZFAandBOCmaycoordinateandjointlyimplementmeasuresonborderprotection.
SEC.  17.  B¢ro*..ng R%fes  amd J{eg%J¢JI.ors.  - Banks  and  financial  institutions  to  be
establishedintheJosePanganibanEcozoneandFreeporishallbeunderthesupervisionoftheBSP
andsubjecttoexistingbankinglaws,rulesandregulations.
8


SEC.  18. Reml.#¢roces. - In the case of foreign investments, a duly registered entity or
enteaprisewithintheJosePanganibanEcozoneandFreepoltshallhavetherighttoremiteamings
from the  investment in the currency in which the investment was originally made and at the
exchangerateprevailingatthetimeof remittance,subjecttotheprovisionsofRepublicActNo.
7653,otherwiseknounas"TheNewCentralBankAct"asanended.
CHAPTER IV
NATIONAL GOVERNMENT AND OTHER ENTITIES
See.  19.  Gener¢J SxpenJisl.ore.  - For purposes of policy direction and coordination, the
JPSEZFA  shall be under the  general  supervision of the  Philippine  Economic  Zone  Authority
(PEZA).
Smc.20.RelationshipwithLocalGovernpefntunip.`=E_I.=P::~S._fuLer^=:=^F+°^V:`±=d`g,£neh
LCDscomprisingtheJosePanganibanEcozoneandFreepoltshallretaintheirbasicautonomyand
identity.TheMunicipalityofJosePanganiban,ProvinceofCanarinesNorte,shalloperateand
functioninaccordancewiththefraneworkoftheConstitution,LocalGoverrmentCodeof1991,
and this Act.
IncaseofanyconflictamongtheJPSEZFAandtheLCDsandtheNationalGovemment
onmattersaffectingtheJosePanganibanEcozoneandFreeport,otherthannationaldefenseand
securitymatters,thedecisionoftheJPSEZFAshallprevail.
SEC. 21. 4ndl.f - Given that the national goverrment shall subscribe to the majority
sharesofthecapitalstockofJPSEZFA,theCorrmissiononAuditshallappointafull-timeauditor
intheJPSEZFAandassignsuchnunberofpersomel,asmaybenecessary,toassistthefull-time
auditorintheperformanceofhistherduties.Thesalariesandemolunentsoftheassignedauditor
andpersomelshallbeinaccordancewithpertinentlaws,rules,andregulations.
CHAPTERV
MISCELLANEOUS
SEC.22.Jrofexpref¢fl.om¢ndCollsf"c¢.ore.-Thepowers,authoritiesandfimctionsthat
arevestedintheJPSEZFAareintendedtoestablishnationalself-sufficiencyandself-reliancein
theadvancementofandprotectionofthenationalintegrity,enhancementofnationalsecurity,
decentralizationofgoverrmentalfimctionsandauthority,andpromoteanefficientandeffective
working  relationship  among  the  JPSEZFA,  the  National  Government  and  the  LGUs.  Any
interpretationofthisActshallconsidersuchintentions.Intheeventofconflictofinterpretation
andprovidedtheintentionscamotbehamonized,theprovisionsofthisActshallbeconstruedin
favorofaninterpretationthatwouldtendtoprotectnationalsecurity.
SEC.23.4pJJ.c¢"..fyC¢use.-Insofarastheseareconsistentwiththeprovisionsofthis
Act,theprovisionsofsections30to41ofRepublicActNo.7916otherwiseknounas"TheSpecial
EconomicZoneActof1995"shalllikewiseapplytotheJosePanganibanEcozoneandFreeport.
9


SEC. 24. Imp/c"c#/I.mg Rw/cs ¢"d J[cg#Ja/I.o#s. - The DTI, DOF and the NEDA shall
formulate the necessary rules and regulations to implement the provisions of this Act.
SEC.  25.  Sepa[robz./rty/  Cawsc.  -  If any  portion  or  provision  of this  Act  is  declared
unconstitutional, the remainder of this Act or any provisions not affected thereby shall remain in
force and effect.
SEC.  26.  Rcpca/I.#g  C¢irsc.  -  All  laws,  decrees,  executive  orders  and  presidential
issuances,  and  rules  and  regulations  inconsistent  with  the  provisions  of this  Act  are  hereby
repealed, amended or modified accordingly.
SHC. 27.  Ej7jJc: c/I.vrty.  -This Act shall take effect fifteen (15) days after its complete
publication in the OJ7?cJ.a/ GCJzef/e or in a newspaper of general circulation.
Approved,
10