PErngy,

®
Republic of the Philippines

HOUSE OF REPRESENTATIVES

Quezon City pare, 0.8 AUS 2017

Seventeenth Congress
Second Regular Session

HOUSE BILL No. 6143

Introduced by
REPRESENTATIVE ALFREDO B. BENITEZ

EXPLANATORY NOTE

The Island of Visayas is popularly known, here and abroad, as a popular tourist
destination. It is known for its local delicacies, beautiful people and white sand
beaches. When we think of Visayas, the cities and places that come to mind are
Boracay, Cebu, Bohol, and Negros, to name a few. Yet, as of 31 March 2017, there
are 39 cities and 369 municipalities in Visayas. Of the 369 municipalities, 278 are left
behind in terms of economic growth and development thus identified as 3 to 6" class
municipalities. All these 408 cities and municipalities, given the right opportunity for
growth will definitely exceed their maximum potential for development.

This humble representation notes, that the approved Philippine Development
Plan 2017-2022 puts high premium on inclusive growth. The Philippine Development
Plan contains seven main parts articulated through chapters which include Inequality-
Reducing Transformation, Increasing Growth Potential, Enabling and Supportive
Economic Environment, and Foundations for Inclusive and Sustainable Development,
among others.

This Bill seeks to encourage investors to help the entire region of Visayas
through investment by providing incentives through lowering the corporate income tax
for corporations located in in the said Region and which are subsequently engaged in
agro-industrial, industrial, commercial, tourist, banking, investment, and. financial
enterprises.

Accordingly, it is imperative that this Congress, in the exercise of its mandate
and in the performance of its duty to affect inclusive and sustainable growth, take all
necessary actions to make sure that growth includes all, affects all, and reaches all.
One Visayas, Equal Visayas

ALFREDO B. BENITEZ
ict, Negrds Occidental

f/ i ca
(3 RECENED A



Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

Seventeenth Congress
Second Regular Session

HOUSE BILL NO. 6143

Introduced by
REPRESENTATIVE ALFREDO B. BENITEZ

AN ACT CREATING THE VISAYAS DEVELOPMENT AUTHORITY, DEFINING ITS
POWERS AND FUNCTIONS, PROVIDING FUNDS THEREFOR AND FOR
OTHER PURPOSES

Section 1. Title. - This Act shall be known as the “Visayas Development
Authority Act of 2017.”

Section 2. Declaration of Policy. — Itis the declared policy of the government
to translate into practical realities the following policies and mandates in the 1987
Constitution, namely:

a. “The State recognizes the indispensable role of the private sector,
encourages private enterprise, and provides incentives to needed
investments.” (Section 20, Article II)

b. “The State shall promote the preferential use of Filipino labor, domestic
materials and locally produced goods and adopt measures that help make
them competitive.” (Section 12, Article XII)

c. “The Congress shall give highest priority to the enactment of measures that
protect and enhance the right of all the people to human dignity, reduce
social, economic, and political inequalities, and remove cultural inequalities
by equitably diffusing wealth and political power for the common good.”
(Section 1, Article XIII)

In pursuance of these policies, the government shall actively encourage,
promote, induce and accelerate a sound and balanced industrial, economic and social
development of the country in order to provide jobs to the people especially those in
the rural areas, increase their productivity and their individual and family income, and
thereby improve the level and quality of their living condition through the establishment


of strategic measures that shall effectively attract legitimate and productive local and
foreign investments.

Section 3. Purposes, Intents and Objectives. It is the purpose, intent and
objective of this Act:

a. To provide opportunities for economic growth in the Visayas Region;

b. To transform Visayas into highly developed agro-industrial, industrial,
commercial, tourist, banking, investment, and financial centers;

c. To promote the flow of investors, both foreign and local, into 3 and 6”
Class municipalities in Visayas which would generate employment
opportunities; and

d. To create a climate conducive to creating business in Visayas by providing
incentives for business activity in the said Region.

Section 4. Creation of Visayas Development Authority. — The Visayas
Development Authority, hereinafter referred to as the Authority, is hereby created
which shall promote, coordinate and facilitate the active and extensive participation of
all sectors to effect the socioeconomic development of Visayas

Section 5. Coverage. - The Authority shall cover all the provinces, cities and
municipalities of Regions VI, VII, Vill, and the Negros Island Region.

Section 6. Principal Office and Term. - The Authority shall have its main office
in Bacolod, Negros Occidental. It may establish area management offices (AMOs), if
necessary, to achieve the objectives of this Act. The Authority shall also have a term
of fifty (50) years from the effectivity of its Act and renewable for the same period
unless otherwise provided by law.

Section 7. Powers and Functions of the VisDA. - In the exercise of those
activities which are Visayas-wide and/Visayas-specific in character, the Authority shall
have the following powers and functions:

(a) Formulate an integrated development framework for Visayas that is
consistent with the development initiatives of the national government, as far
as practicable;

(b) Integrate, prioritize, program and implement, whenever allowed and
authorized by applicable laws, Visayas-wide, inter-regional and region-specific
programs, activities and projects with Visayas-wide impact, including Official
Development Assistance (ODA) projects, subject to such limitations prescribed
by existing laws, rules and regulations;

(c) Recommend to and, whenever necessary, call upon the proper agencies on
the technical support, physical assistance and, generally, the level of priority to
be accorded to agricultural, industrial, commercial, and infrastructure,
environmental, and technological programs and projects soliciting or requiring


direct or indirect help from or through the national government or any of its
instrumentalities;

(d) Promote and facilitate investments in any field that would enhance the
socioeconomic development of Visayas and uplift the living standards of the
people and their socio-political activities in close coordination with agencies
primarily mandated to undertake such functions;

(e) Provide fiscal incentives as provided in Section 14 of this Act for qualified
corporations as may be determined by the Authority.

(f) Coordinate and facilitate the extension of necessary planning, management
and technical assistance to prospective and existing investors, complementary
and in support of agencies primarily mandated to execute such functions;

(g) Provide strategic direction for Visayas;

(h) Establish appropriate mechanisms to ensure the timely implementation of
Visayas-wide and/or Visayas-specific inter-regional projects, whenever
necessary, as far as practicable, including, but not limited to, public-private
partnership;

(i) Receive and administer donations, contributions, grants, bequests or gifts,
in cash or in kind, from foreign governments, international agencies, private
entities and other sources, including ODA, to be used in the development of
Visayas, subject to existing laws, rules and regulations;

(j) To sue and be sued, enter into contracts, acquire, purchase, hold, lease,
transfer, dispose of property of any kind or nature to carry out the purposes to
this Act; and

(k) Discharge other functions that may be deemed necessary or as may be
provided by law.

The Authority, through the VisDA Chairperson, shall submit to the President
and both Houses of Congress annual reports on its accomplishments and activities.

Section 8. Chairperson. - The VisDa Chairperson shall be appointed by the
President of the Philippines with a Cabinet rank and shall act as the Head of office.
He/She shall serve a term of six (6) years from the date of his/her appointment unless
removed for cause: Provided, That no person shall be appointed as Chairperson
unless he/she is a holder of a degree in law or a masteral degree in any of the following
fields: economics, business, public administration, law, management or their
equivalent and have at least ten (10) years relevant experience in said fields: Provided,
further, That he/she shall be a resident of Visayas for at least (5) years before the
appointment: Provided, finally, That he/she shall also be an ex officio member of the
NEDA Board and the Tourism Infrastructure and Enterprise Zone Authority (TIEZA)
Board.


The Chairperson shall have the following duties and functions:

(a) Call and preside meetings of the Board and see to it that the policies,
Programs and rules and regulations are implemented properly;

(b) Call on formidable players in the formulation and implementation of a
comprehensive and integrated development plan for Visayas, investment
Programs and the preparation of investment programming priorities, annual
reports and other pertinent documents approved by the Authority;

(c) Identify solutions to key issues and concerns, taking into account related
risks, affected parties and impact, in coordination with the Board and key
stakeholders;

(4) Advocate the Authority's work among the various concerned sectors and
stakeholders;

(e) Call on any agency, group, individual member of the Board, local
government unit, and host community to address issues and concerns relating
to implementation of major programs, projects and activities;

(f) Supervise the monitoring and timely implementation of Visayas-wide and/or
Visayas-specific inter-regional programs, projects and activities;

(g) Endorse to the Board all policy recommendations, plans and programs for
approval;

(h) Represent the Board in regular and special Cabinet meetings;

(i) Accept, on behalf of the Authority, donations, contributions, grants and
bequests or gifts, in cash or in kind, from members, foreign governments,
international agencies, private entities or any individual for purpose that will
realize the functions of the Authority;

(j) Supervise administrative operations including disbursement of any fund of
the Authority, subject to the usual accounting and auditing procedures, and
submit reports thereon;

(k) Execute and administer the policies and measures approved by the Board;

(!) Appoint all employees of the Authority, and remove, dismiss or otherwise
discipline for cause, such employees in accordance with the standard
guidelines for recruitment, employment, and discipline in the Civil Service
Code;

(m) Represent the Authority in all dealings with other offices, agencies, and
instrumentalities of the government and with all persons and entities, public or
private;


(n) Sign agreements and/or contracts on behalf of the Authority, including those
for expert and consultant services and other reports of accountabilities
emanating from the Authority; and

(0) Perform such other functions that the Board may direct to carry out the
provisions of this Act.

Section 9. Executive Director. - An Executive Director shall be appointed by
the President of the Philippines upon recommendation by the Chairperson: Provided,
That no person shall be appointed as Executive Director unless he/she is a holder of
a degree in any of the following fields: economics, business, public administration, law,
management or their equivalent and have at least five (5) years relevant experience
in said fields: Provided, further, That he/she shall be a resident of Visayas five (5)
years prior to his/her appointment and has the requisite eligibilities for third level career
service position pursuant to the career executive rank system: Provided, finally, That
he/she shall reside in Visayas during his/her incumbency.

The Executive Director shall assist the Chairperson in carrying out the functions
of the Authority and shall, likewise, serve as the Secretary of the Board.

Section 10. Board of Directors. - The Authority's overall directions and thrusts
shall be provided and approved, unless provided otherwise in this Act, by the VisDA
Board of directors, hereinafter referred to as the Board. It shall be composed of the
following members:

(a) The VisDA Chairperson;

(b) The Chairpersons of the Regional Development Councils (RDCs) of
Regions VI, VII, Vill and NIR;

(c) A Senator, upon designation by the Senate President, who shall be an ex
Officio member;

(d) The Chairperson of the House Committee on Visayas Development, who
shall be an ex officio member;

(e) The President of the Visayas Confederation of Governors, City Mayors and
Municipal Mayors League Presidents; and

(f) The three (3) representatives from the private sector to be appointed by the
President, upon the recommendation of the Board comprising of one (1)
representative each from the:

(1) Visayas Business Sector;

(2) Visayas Academic Sector; and

(3) Visayas Non-goverment Organization (NGO) Sector.


The term of the three (3) representatives from the private sector shalll be six (6)
years: Provided, That at the initial appointment of such members, the second member
to be appointed shall only serve a term of four (4) years and the third member to be
appointed shall only serve a term of two (2) years: Provided, further, That they shall
continue to hold office until their successors shall have been appointed. All vacancies,
prior to the expiration of the term, shall be filed for the unexpired term only.

Members of the Board shall received a per diem of not more than Five thousand
pesos (P5,000.00) for every Board meeting: Provided, however, That the per diem
collected per month does not exceed the equivalent of four (4) meetings: Provided,
further, That the amount of per diem for every Board meeting may be increased by the
President but such amount shall not be increased within two (2) years its last increase.

The Board shall have the following functions:

(a) Provide direction and guidance for the Authority's work and thrusts for
Visayas;

(b) Ensure that the goals and policies of the Authority are consistent with the
overall national development goals and objectives;

(c) Ensure that the programs of the Authority are consistent with regional and
local development plans, programs and projects and vice versa for purposes of
harmonization;

(4) Explore sources for financing of priority Visayas-wide and/or Visayas-
specific inter-regional plans, programs, projects and activities;

(e) Create committees/task forces as may be deemed necessary in the
accomplishment of duties and functions;

(f) Determine schedules, establish voting procedures, criteria for the
constitution of a quorum and other rules and regulations in the conduct of Board
meetings;

(g) Prepare a list containing specific activities of industries that can qualify for
the fiscal incentives under this Act duly supported by the studies and existing
and prospective demands for such products and services;

(h) Promulgate rules and regulations as may be necessary to determine the
qualified corporations and business establishments on the incentives provided
under this Act.

(i) Process and approve applications for qualification under this Act, imposing
such terms and conditions as it may deem necessary to promote the objectives
of the same.

()) Perform such functions as may be necessary to carry out the purposes of
this Act.


Section 11. Executing Committee. - The Board shall constitute an Executive
Committee, hereinafter referred to as the ExeCom, from among its membership to act,
for and on its behalf when the Board is not in session, on urgent matters as may be
deemed necessary by the Chairperson. To ensure inter-regional representation and
Participation, the following shall comprise the ExeCom:

(a) The VisDA Chairperson;

(b) The Chairpersons of the RDCs;

(c) The Representative from the Visayas Business Sector; and
(d) The Representative from the Visayas NGO Sector.

Section 12. Organizational Structure. - The Chairperson shall determine the
organizational structure, staffing pattern and pay scales of the Authority subject to
existing civil service and compensation laws. The Chairperson may reorganize the
Authority and may create or abolish divisions, units or branches therein as the
exigencies of the affairs of the Authority may require.

Section 13. Merit System. - All officials and employees of the VisDA shall be
selected and appointed on the basis of merit and fitness in accordance with civil
service law, rules and regulations. The recruitment, transfer, promotion, and dismissal
of all its personnel including temporary workers shall be governed by a merit system
that will be established by the VisDA in compliance with existing laws, rules and
regulations.

Section 14. Fiscal Incentives. Corporations established and located in
Visayas duly qualified under this Act as may be determined by the VisDA shall be
entitled to the following fiscal incentives:

a. The income tax rate of thirty percent (30%) imposed on Domestic
Corporations under Section 27 (A), Chapter IV of the National Internal
Revenue Code is reduced to ten percent (10%) upon the taxable income
derived during each taxable year from all sources within and without the
Philippines by every corporation, as defined in Section 22 (B) of the of the
National Internal Revenue Code, organized in, or existing under the laws of
the Philippines.

Said fiscal incentive shall apply for a period of five (5) years upon approval
of the VisDA.

b. Corporation which met the qualifications shall be entitled to the fiscal
incentives as provided for under Presidential Decree No. 66, the law
creating the Export Processing Zone Authority, or those provided under
Book VI of Executive Order No. 226, otherwise known as the Omnibus
Investment Code of 1987.

Except for real property taxes on land owned by developers, no taxes, local and
national, shall be imposed on corporations and business establishments which


qualified under this Act. In lieu thereof, five percent (5%) of the gross income earned
by all business enterprises qualified under this Act shall be paid and remitted as
follows:

a. Three percent (3%) to the National Government; and

b. Two percent (2%) which shall be directly remitted by the business
establishment to the Treasurer's office of the municipality or city where the
enterprise is located.

Section 15. Appropriations. — Subject to government accounting and auditing
procedures, the VisDA shall be provided with an initial allocation for its expenditures
to jump start its operations in the performance of its mandate upon approval of this
Order, and ONE HUNDRED MILLION PESOS for CY 2017. Appropriations for the
succeeding years shall be incorporated in the General Appropriations Act for its
continued implementation

Section 16. Implementing Rules and Regulations. - The VisDA shall adopt
rules and regulations to implement the provisions of this Act within sixty (60) days from
the date of its approval.

Section 17. Repealing Clause. - All laws, decrees, executive orders, rules and
regulations or parts thereof inconsistent with or contrary to the provisions of this Act
are hereby repealed or modified accordingly.

Section 18. Separability Clause. - If any part or provision of this Act is held
unconstitutional or invalid, other parts or provisions hereof which are not affected shall
continue to remain in full force and effect.

Section 19. Effectivity. - This Act shall take effect fifteen (15) days following
completion of its publication in at least two (2) newspapers of general circulation.