EIGHTEENTH CONGRESS OF THE) 
REPUBLIC OF THE PHILIPPINES ) 
Second Regular Session 
)
SENATE
S.B. No. 2270
DATE
ISUB£
Introduced by SENATOR IMEE R. MARCOS
AN ACT ESTABLISHING THE MARINDUQUE SPECIAL ECONOMIC 
ZONE IN THE MUNICIPALITY OF SANTA CRUZ, PROVINCE OF
MARINDUQUE, CREATING FOR THE PURPOSE THE MARINDUQUE 
SPECIAL ECONOMIC ZONE AUTHORITY, APPROPRIATING 
FUNDS THEREFOR AND FOR OTHER PURPOSES
EXPLANATORY NOTE
Section 20 of Article II of the 1987 Philippine Constitution provides that "The 
State recognizes the indispensable roie of the private sector, encourages private 
enterprise, and provides incentives to needed investments."
According to the Private Enterprise Development in Low Income 
Countries (PEDL), countries across the world are increasingly exploring the 
possibilities presented by special economic zones (SEZ), and attempting to seize their 
potential to catalyze economic development and structural transformation. The United 
Nations Conference on Trade and Development (UNCTAD) reported that as of 2019, 
147 countries had established some kind of SEZ, with the total number of SEZs 
worldwide nearing 5,400.
Marinduque is an island province located in Southwestern Tagalog Region or 
MIMAROPA with a total population of 234,521, according to the Philippine Statistics 
Authority (PSA) 2015 Population Census. It comprises six municipalities with 218 
barangays. Currently, Marinduque is served by flights via the Marinduque Airport 
located in Masiga. The province may also be accessed through a seaport in Balanacan. 
A daily boat trip from General Luna in Quezon province to Santa Cruz and vice versa 
may also be availed by both cargoes and passengers.
During the visit of Tourism Secretary Bernadette Romulo Puyat on 25 May 2021, 
House Speaker Lord Allan Velasco presented the tourism potentials of Marinduque, 
adding that reopening the province to leisure visitors would aid the tourism sector that 
suffered due to travel restrictions brought by the pandemic. According to Provincial 
Tourism Officer Gerardo Jamilla, Marinduque has 17 tourism and hospitality 
establishments accredited by the Department of Tourism (DOT). With the promising


tourism potential, it is but fitting to support the development of the province by 
enacting measures which will foster economic and trading activities in the area.
This bill therefor seeks to establish the Marinduque Special Economic Zone 
(MAREZ) in the Municipality on Santa Cruz, Province of Marinduque which shall bolster 
economic growth by creating employment opportunities, increasing industrial 
infrastructure investments, enhancing trade efficiency of domestic firms, and fostering 
foreign investments thereby uplifting the economy and improving the lives of people 
throughout the province. Moreover, the establishment of this ecozone will offer a 
technological hub which will pave the way for technological start-ups and further 
encourage expansion of domestic companies. This will also establish and maintain a 
one-stop shop to facilitate ease-of-doing-business for prospective investors.
In view of the foregoing, the speedy passage of this bill is earnestly sought.
IMEER. MARCOS


EIGHTEENTH CONGRESS OF THE) 
REPUBLIC OF THE PHILIPPINES ) 
Second Regular Session 
)
S.B. No.
SENATE 
2270
DATE
£Ni>EX
GILLS
Introduced by SENATOR IMEE R. MARCOS
AN ACT ESTABLISHING THE MARINDUQUE SPECIAL ECONOMIC 
ZONE IN THE MUNICIPALITY OF SANTA CRUZ, PROVINCE OF 
MARINDUQUE, CREATING FOR THE PURPOSE THE MARINDUQUE 
SPECIAL ECONOMIC ZONE AUTHORITY, APPROPRIATING 
FUNDS THEREFOR AND FOR OTHER PURPOSES
Be it enacted by the Senate and House of Representatives of the Philippines in 
Congress assembled:
1 
SECTION 1. Short Title. - This Act shall be known as the "Marinduque Special
2 
Economic Zone Act."
3 
SEC. 2. Declaration of Policy. - It is hereby declared the State policy to
4 
actively encourage, promote, induce and accelerate a sound and balanced industrial,
5 
economic and social development of the country in order to provide jobs to the people
6 
especially those in rural areas, increase productivity and individual and family income,
7 
and thereby improve the level and quality of living condition through the
8 
establishment, among others, of special economic zones in suitable and strategic
9 
locations in the country and through measures that will attract legitimate and
10 
productive foreign investments.
11 
SEC. 3. Creation of the Marinduque Special Economic Zone. - In pursuit
12 
of the foregoing declared policy, there is hereby established a special economic zone
13 
in the Province of Marinduque, which shall be referred hereinafter as the "MAREZ."
14 
The MAREZ may cover the land territories in the Province of Marinduque
15 
comprising an area of approximately 95,925 hectares. The 'MAREZ main zone' shall
16 
comprise an area of approximately 1,254.68 hectares located in the Municipality of
17 
Santa Cruz, Marinduque. Other expansion areas may be established within the
18 
Province of Marinduque which may be declared as part of the MAREZ in compliance
19 
with Section 4(G) of this Act, including all municipal waters within the MAREZ main
20 
zone and of the expansion areas located at the coastline of the Province of Marinduque
21 
(the 'other MAREZ zones').


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The metes and bounds of the MAREZ main zone, and the other MAREZ zones,
2 
which shall be fenced and include the establishment of an administrative office for
3 
ease of customs administration and border control, shall be determined based on the
4 
technical description and coordinates verified and approved by the Land Management
5 
Bureau, the National Mapping and Resource Information Authority, and other
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government agencies as may be provided by pertinent law.
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Prospective developers and locators may choose to register with the MAREZA,
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PEZA or such other investment promotion agency: Provided, That in no case shall a
9 
registered enterprise enjoy incentives from two (2) or more investment promotion
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agencies: Provided, further, That in no case shall a MAREZA-registered enterprise be
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located within an ecozone administered or managed by another investment promotion
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agency.
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SEC. 4. Governing Principles. - The Marinduque Special Economic Zone shall
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be managed and operated by the Marinduque Special Economic Zone Authority, herein
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referred to as the "MAREZA," created under Section 13 of this Act, under the following
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principles:
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(A) Within the framework and limitations of the Constitution and applicable
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provisions of the Local Government Code, the MAREZ shall be developed into and
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operated as the decentralized, self-reliant and _ self-sustaining industrial, commercial/
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trading, research and development, engineering, medical, education, information and
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communications technology including emerging and _ future technologies such as
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artificial technology, blockchain, business process outsourcing, cloud computing,
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cybersecurity, distributed ledger technology, financial technology solutions, internet
24 
of things, and virtual reality, retirement, and healthcare services, agro-industrial,
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tourism, banking, financial, rnultinational trading and investment center with provision
26 
for suitable residential areas.
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(B) Notwithstanding the autonomy provided In Section 4(A) of this Act, the
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MAREZ shall continue to be provided by the National Government and/or local
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government with transportation, telecommunications, high-speed internet cables and
30 
other facilities needed to attract legitimate and productive investments, generate
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linkage with industries and employment opportunities for the people of the Province
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of Marinduque and its neighboring provinces and towns in the MIMAROPA region. The
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MAREZ shall also have priority and preferential access to such National Government
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and/or local government transportation and telecommunications infrastructure, high-
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speed internet cables and other facilities, and access to the MAREZ shall be
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incorporated in the planning, construction, and operation of such infrastructure or
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expansions: Provided, That the autonomy and self-reliance of the MAREZA shall not
38 
be a hindrance to assistance and/or partnerships with other units and instrumentalities
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of the government: Provided, further. That no assistance or partnership shall be
40 
construed as a waiver of the autonomy of the MAREZA;


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(C) The MAREZ may establish mutually beneficial economic relations with other
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entities or enterprises within the country or, subject to the administrative guidance of
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the Department of Foreign Affairs (DFA), the Philippine Economic Zone Authority
4 
(PEZA) and/or the Department of Trade and Industry (DTI), with foreign entities or
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enterprises.
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(D) Foreign citizens and companies owned by non-Filipinos in whatever
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proportion may set up enterprises in the MAREZ, either by themselves or in joint
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venture with Filipinos in any sector of industry, international trade and commerce
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within the territorial jurisdiction of the MAREZ as provided in Section 3 of this Act:
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Provided, That the MAREZA may require a minimum investment in freely convertible
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currencies from any enterprise seeking registration as a MAREZ enterprise;
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(E) The MAREZ shall be managed and operated as a separate customs territory
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thereby ensuring the free flow or movement of goods and capital within, into and out
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of its territory; Provided, That in accordance with Sections 301 and 817 of Republic
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Act No. 10863, the Bureau of Customs (BOC) shall continue to exercise border
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protection and customs control authority over the customs territory adjacent to the
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MAREZ: Provided, further. That the MAREZA shall allow patrol or other law
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enforcement arrangements by the BOC and other government agencies within the
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municipal waters covered by the other MAREZ zones subject to coordination with the
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MAREZA to enhance its protection and control capacity and ensure compliance with
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customs, fisheries and other laws and regulations;
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(F) The MAREZ shall provide incentives such as tax and duty-free importations
23 
of raw materials, capital and equipment to registered enterprises located therein.
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However, exportation or removal of goods from the territory of the MAREZ to other
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parts of the Philippine territoiy shall be subject to customs duties and taxes under the
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Tariff and Customs Code of the Philippines, as amended, and the National Internal
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Revenue Code (NIRC) of 1997, as amended;
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(G) The areas comprising the MAREZ may be expanded or reduced when
29 
necessary. For this purpose, the MAREZA, with the concurrence of the appropriate
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and affected local government units (LGUs) and the agreement of appropriate national
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government agencies, government-owned and -controlled corporations and
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instrumentalities, and the approval of the MAREZA Board in accordance and in
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compliance with existing laws and local ordinances, shall have the power to acquire,
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procure and/or expand either by purchase, negotiation, condemnation proceedings,
35 
or any other arrangement, any private or alienable and disposable public lands and/or
36 
their respective water territories within the territorial jurisdiction of the Province of
37 
Marinduque, if any, for the following purposes: (1) consolidation of lands for MAREZ
38 
development and establishment of new industrial estates and economic zones under
39 
the MAREZ; (2) acquisition of right-of-way to the MAREZ; and (3) the protection and
40 
safeguard of watershed areas and the maintenance and improvement of Its water


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yield and natural assets valuable to the prosperity of the MAREZ, the LGU, and the
2 
National Government, the effective management of solid and water waste in
3 
compliance with existing national laws and local ordinances, and its impact to adjacent
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areas within the local government concerned: Provided, That any expansion shall be
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aligned with the comprehensive land use plan of the affected LGUs: Provided, further,
6 
That the MAREZA and the relevant LGUs and national government agencies shall
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provide for immediate and responsive mechanisms, best management practices and
8 
suitable environmental protection programs for land and coastal management to
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address any abuse and/or exploitation of the natural environment within the territorial
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jurisdiction of the MAREZ as provided in Section 3 of this Act;
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(H) Goods manufactured by MAREZ enterprises shall be made available for
12 
immediate retail sale in the domestic market, subject to the payment of corresponding
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taxes on raw materials and other regulations that may be formulated by the MAREZA,
14 
together with PEZA, the Bangko Sentral ng Pilipinas (BSP), the Department of Finance
15 
(DOF), the BOC and DTlin accordance with the NIRC of 1997, as amended, and the
16 
Tariff and Customs Code of the Philippines, as amended: Provided, That the value of
17 
the goods at the time of the importation shall be the basis in determining the
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appropriate duties and taxes: Provided, further. That in cooperation with the MAREZA,
19 
the foregoing agencies shall provide and implement measures to support the
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improvement of ease and cost of doing business within the MAREZ and the
21 
enhancement of the investment promotion capacity of the MAREZA. In order to protect
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domestic industries, a negative list of industries shall be drawn up and regularly
23 
updated by the MAREZA. Enterprises engaged in industries included in such negative
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list shall not be allowed to sell their products locally, notwithstanding the registration
25 
of such enterprises in the MAREZ; and
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(I) The defense of the MAREZ and the security of its perimeter fence shall be
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the responsibility of the National Government in coordination with the MAREZA and
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the LGUs. The MAREZA shall provide its own internal security and firefighting forces.
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SEC. 5. Fiscal Incentives. - The registered enterprises operating within the
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MAREZ may be entitled to the existing pertinent fiscal incentives as provided for under
31 
Republic Act No. 7916, as amended by Republic Act No. 8748, also known as the
32 
"Special Economic Zone Act of 1995," or those provided under Executive Order No.
33 
226, as amended, otherwise known as the "Omnibus Investment Code of 1987."
34 
SEC. 6. Imposition of a Tax Rate of Five Percent (5%) on Gross Income
35 
Earned. - No taxes, local and national, shall be imposed on registered business
36 
establishments operating within the MAREZ. In lieu thereof, and subject to Section 10
37 
of this Act, said business establishments shall pay a five percent (5%) final tax on
38 
their gross income earned In the following percentages:
39 
(a) One per centum (1%) to the National Government;


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(b) One per centum (1%) to the Province of Marinduque;
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(c) One per centum (1%) to the host municipality; and
3 
(d)Two per centum (2%) to the MAREZA.
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SEC. 7. Incentive to Investors. - Any foreign national who invests an amount
5 
of seventy-five thousand US dollars (USD 75,000.00), either in cash and/or equipment,
6 
in a registered enterprise shall be entitled to an investor's visa: Provided, That he has
7 
the following qualifications:
8 
(A) He is at least eighteen (18) years of age;
9 
(B) He has not been convicted of a crime involving moral turpitude;
10 
(C) He is not afflicted with any loathsome, dangerous or contagious disease;
11 
and
12 
(D)He has not been institutionalized for any mental disorder or disability.
13 
As a holder of investor's visa, an alien shall be entitled to reside in the Philippines
14 
while his investment subsists. For this purpose, he should submit an annual report, in
15 
the form duly prescribed for the purpose, to prove that he has maintained his
16 
investment In the country. Should said alien withdraw his investments from the
17 
Philippines, then the investor's visa issued to him shall automatically expire.
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SEC. 8. Administration, Implementation and Monitoring of Incentives.
19 
- For the proper administration, implementation and monitoring of tax incentives
20 
provided under this law, the following are herein mandated:
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(a) The MAREZA shall be responsible for the administration and implementation
22 
of the incentives granted to its respective registered enterprises. Among others, it
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shall adopt and implement systems and procedures affecting trade and customs
24 
policies. The BOC shall set up and establish a customs controlled area outside the gate
25 
of the MAREZ to facilitate payment of taxes on goods entering the Philippine customs
26 
territory; and
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(b) The MAREZA shall likewise submit to DOF its annual tax expenditures based
28 
on the tax incentives granted to its registered enterprises. The DOF, for its part, shall
29 
create a single database of all incentives provided by the governing authority. The
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DOF shall monitor the incentives granted 
and submit all annual reports to the
31 
President.
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SEC. 9. Extension of Period of Availment. - The availment period of the 
incentives provided herein may be extended by MAREZA, in the event that the 
registered enterprise has suffered operational force majeure that has impaired its 
viability or any event equivalent thereto.


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SEC. 10. Duration of Incentives. - Enterprises registered with MAREZA may
2 
enjoy the income tax holiday (ITH) or the net operating loss carryover (NOLCO)
3 
granted by the Authority prior to the availment of the five percent (5%) gross income
4 
earned (GIE). Fiscal incentives under this Act shall be terminated after a cumulative
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period of twenty (20) years from date of registration or start of commercial operation,
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whichever is applicable, except that it could be extended with regard to industries
7 
deemed indispensable to national development. The industries exempted from this
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provision shall be determined by the MAREZA.
9 
SEC. 11. Online Gaming Centers within the MAREZ. - The MAREZ will be
10 
open for hosting online gaming centers and establishments, with the end in view of
11 
facilitating the rapid economic development of the province and its neighboring areas.
12 
In coordination with concerned LGUs, the Department of Information and
13 
Communications Technology (DICT) and other relevant government agencies, the
14 
establishment of high-speed internet cables, the adequate number of cell sites and
15 
other facilities and infrastructures necessary to support the satisfactory performance
16 
of these online gaming centers will be introduced within the MAREZ.
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Prospective online gaming centers must first register with and be granted
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accreditation by the MAREZA before they are given the license to operate within the
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MAREZ. Qualified and MAREZA-registered online gaming centers will enjoy the same
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incentives and benefits as provided above to qualified and MAREZA-registered
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enterprises.
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SEC. 12. Technology Hub for Start-Ups within the MAREZ. - To support
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job creation, technological buildup and startup development, the MAREZ will be home
24 
to enterprising technological start-ups which shall be catered and nurtured inside the
25 
MAREZ technology hub. In coordination with PEZA, DTI and other concerned agencies,
26 
the MAREZ will be a distinct ecozone that is at the forefront of accepting and housing
27 
start-up technological businesses. These businesses will be nurtured until they are
28 
well-developed into productive and commercial enterprises.
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Prospective technological start-ups must first register with and be granted
30 
accreditation by the MAREZA before they are given the license to operate within the
31 
MAREZ. Qualified and MAREZA-registered technological start-ups will enjoy the same
32 
incentives and benefits as provided above to qualified and MAREZA-registered
33 
enterprises.
34 
Along with these benefits and incentives, these technological start-ups will gain
35 
access to the One-Stop Shop envisioned under Section 36 of Republic Act No. 7916.
36 
This access to the One-Stop Shop will promote ease of doing business inside the
37 
MAREZ.
38 
Pursuant to this mandate, a One-Stop Shop for Business Structuring and
39 
Registration C'One-Stop Shop") will be established within the MAREZ to assist and
6


1 
fast-track the registration and framework finalization of prospective technological
2 
start-ups and other enterprises. Thus, the One-Stop Shop will also serve all
3 
prospective online gaming centers which seek to operate inside the MAREZ. To ensure
4 
effective formation of this One-Stop Shop, all appropriate government agencies that
5 
are involved in registering, licensing or Issuing permits to investors shall assign their
6 
representatives to the MAREZ to attend to investors' requirements. The MAREZA will
7 
supervise and assure that the One-Stop Shop consistently and effectively fulfills its
8 
mandate.
9 
SEC. 13. Creation of the Marinduque Special Economic Zone Authority.
10 
- There is hereby created a body corporate to be known as the Marinduque Special
11 
Economic Zone Authority, hereafter referred to as the "MAREZA," which shall manage
12 
and operate the MAREZ, in accordance with the provisions of this Act.
13 
SEC. 14. Principal Office of the MAREZA. - The MAREZA shall maintain its
14 
principal office in the Municipality of Santa Cruz, Province of Marinduque, but it may
15 
establish liaison offices within the Philippines as may be necessary for the proper
16 
conduct of its business.
17 
SEC. 15. Powers and Functions of the MAREZA. - The MAREZA shall have
18 
the following functions:
19 
(a) To adopt, alter, use a corporate seal, to contract, lease, buy, sell, acquire, own
20 
and dispose properties of whatever nature;
21 
(b)To sue and be sued in order to carry out its duties, responsibilities, privileges,
22 
powers and functions as granted and provided for in this Act and to exercise
23 
the power of eminent domain for public use and public purpose;
24 
(c) To operate, administer, manage, develop, in accordance with Executive Order
25 
No. 525, as amended, the MAREZ according to the principles and provisions set
26 
forth in this Act and to coordinate with the LGUs for the development plans,
27 
activities and operation of the MAREZ;
28 
(d) To recommend to the President the issuance of a proclamation to fix and delimit
29 
the site of the MAREZ;
i
30 
(e)To register, regulate and supervise the enterprises in the MAREZ in an efficient
31 
and decentralized manner, subject to existing laws;
32 
(0 To coordinate with the LGUs and exercise general supervision over the
33 
development plans, activities and operations of the MAREZ;
34 
(g)To authorize or undertake, on its own or through others, and to regulate the
35 
establishment, construction, operation and maintenance of public utilities,
36 
services, and infrastructure in the MAREZ such as shipping, barging,
37 
stevedoring, cargo, handling, hauling, warehousing, storage of cargo, port


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services or concessions, piers, wharves, bulkheads, bulk terminals, mooring 
areas, storage areas, roads, bridges, reclamation projects, terminals, 
conveyors, water supply and storage, sewerage, drainage, airport operations 
in coordination with the Civil Aviation Authority of the Philippines (CAAP) and 
such other services or concessions or infrastructures necessary or incidental to 
the accomplishment of the objectives of this Act: Provided, however, That the 
private investors In the MAREZ shall be given priority In the awarding of 
contracts, franchises, licenses, or permits for the establishment, operation and 
maintenance of utilities, services and infrastructures in the MAREZ;
(h) To license, set fees, regulate and undertake the establishment, operation and 
0 maintenance of utilities, other services, educational and medical institutions 
and infrastructures in the MAREZ such as, but not limited to, heat, light and 
power, water supply, telecommunications, mobile, internet and other data 
facilities, transport, toll roads and bridges, port services, etc., and to fix just, 
reasonable and competitive rates, fares, charges and prices thereof;
(i) To construct, acquire, own, lease, operate and maintain on its own or through 
contracts, franchises, licenses, bulk purchase from the private sector and build- 
operate-transfer scheme, or under a joint venture with the private sector, any 
or all of the public utilities and infrastructures required or needed for the 
operation and development of the MAREZ, including transportation, access and 
connection to, and out of the MAREZ, in coordination with appropriate national 
and local government authorities and in conformity with applicable laws 
thereon. For this purpose, the MAREZA shall exercise the power of eminent 
domain over private lands granted in paragraph (b) of this Section insofar as it 
may be reasonably necessary, without prejudice to the execution of agreements 
with public agencies, and subject to the limitations prescribed therein and the 
observance of the prerequisites of taking of possession and the determination 
and payment of just compensation in accordance with Republic Act No. 10752, 
otherwise known as "The Right-of-Way Act;"
(j) To operate on its own, either directly or through a license to other tourism- 
related activities, including games, amusements, recreational and sports 
facilities, subject to the approval and supervision of the Philippine Amusement 
and Gaming Corporation (PAGCOR);
(k) To raise or borrow, within the limitation provided by law, and subject to the 
approval or opinion of the Monetary Board of the BSP, in accordance with law, 
adequate and necessary funds from local or foreign sources, to finance its 
projects and programs under this Act, and for that 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;


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(l) To exclusively enforce and administer the provisions of the National Building 
Code of the Philippines and the Fire Code of the Philippines, as amended, within 
the territorial jurisdiction of the MAREZ: Provided, That the MAREZA shall be 
fully responsible and accountable for the enforcement and administration of the 
National Building Code of the Philippines and the Fire Code of the Philippines, 
as amended, within the MAREZ.
The MAREZA Administrator, or his official representative, shall function as the 
MAREZA building official, who shall issue all building permits and other related 
permits subject to the coilection by MAREZA of the corresponding permit fees: 
Provided, That the MAREZA building official shall also be authorized to require 
owners of houses, buildings, or other structures constructed without the 
necessary MAREZA permit/s, or those that are condemned and/or abated by 
the MAREZA in accordance with the conditions set forth in the National Building 
Code or Civil Code, as the case may be, whether constructed on public or 
private lands, to remove or demolish such houses, buildings, or structures 
within fifteen (15) days from receipt of notice. Upon failure of such owner to 
remove or demolish such house, building, or structure within such period, the 
MAREZA may summarily cause its removal or demolition at the expense of the 
owner and the occupants;
The MAREZA may evict any person who refuses to vacate such premises in 
accordance with Republic Act No. 7279, otherwise known as the "Urban 
Development and Housing Act of 1992," and other existing laws. A temporary 
or permanent relocation site shall be made available for qualified individuals or 
families;
(m) To provide security for the MAREZ in coordination with the national and local 
governments. For this purpose, the MAREZA may establish and maintain its 
security forces and firefighting capability or hire others to provide the same. In 
the event that an assistance of the military force is necessary, it shall not 
interfere In the internal affairs of the MAREZ except to provide the necessary 
security and defense, and their expenses shall be borne by the National 
Government. To ensure the maintenance of law and order within the 
boundaries of MAREZ, including the conduct of police investigations, arrests, 
search and seizure for violation of penal laws inside the MAREZ, the Philippine 
National Police (PNP) shall establish a police substation, if necessary, under the 
supervision of the PNP Provincial Director, to be manned by such number of 
personnel as will allow them to effectively and efficiently pursue its mandate.
The MAREZA shall also be authorized to install control gates at strategic points 
of the national roads within the MAREZ, through which access into and 
departure from the MAREZ shall be fully controlled by the MAREZA;


1 
(n) To protect, preserve, maintain and deveiop the forests, beaches, corai and coral
2 
reefs, and maintain ecological balance within the MAREZ. For this purpose, the
3 
rules and regulations of the Department of Environment and Natural Resources
4 
(DENR) and other government agencies involved in the above functions shall
5 
be implemented by the MAREZA: Provided, That the issuance, enforcement and
6 
monitoring of environmental compliance certificates (ECCs), tree cutting
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permits, foreshore leases and all other related permits and clearances issued
8 
by the DENR and other government agencies shall be under the exclusive
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control and jurisdiction of the MAREZA;
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(o) To create, operate and/or contract to operate such functional units or offices
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of the MAREZA as it may deem necessary;
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(p) To issue certificates of origin for products manufactured or processed in the
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MAREZ;
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(q) To recommend the issuance of working visas renewable every three (3) years
15 
to foreign executives and foreign technicians with highly specialized skills which
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no Filipino possesses, subject to the issuance of the certification and alien
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employment permit by the Department of Labor and Employment (DOLE);
18 
(r) Subject to Republic Act No. 7653, otherwise known as the "New Central Bank
19 
Act," other issuances of the BSP, Republic Act No. 8799, otherwise known as
20 
the "Securities Regulations Code," existing applicable laws, and such other laws
21 
as may be required that are consistent with the objectives of the MAREZA, to
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act as an offshore financial center that engage in, or allow, any or all
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international financial and business services, including banking, offshore fund
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management, collective investment schemes, and cryptocurrency mining, and
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provide the necessary and pertinent fiscal incentives as provided for under
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Republic Act No. 7916, as amended by Republic Act No. 8748, also known as
27 
"The Special Economic Zone Act of 1995," and/or those provided under
28 . 
Executive Order No. 226, as amended, otherwise known as "The Omnibus
29 
Investments Code of 1987." Banks and financial institutions engaged in quasi-
30 
banking functions to be established in the MAREZ shall be under the supervision
31 
of the BSP, and shall be subject to existing banking laws, rules and regulations.
32 
Other financial institutions not engaged in quasi-banking functions, and those
33 
engaged in collective investment schemes and cryptocurrency mining within
34 
the MAREZ shall be under the supervision of the Securities and Exchange
35 
Commission;
36 
(s) To issue special regulations for the benefit of particular indu^ries designed to
37 
improve ease of doing business, decrease cost of doing business, and lower
38 
bureaucratic burdens 
of investing and doing 
business within the MAREZ:
39 
Provided, That such special regulations shall not be contrary to existing laws;
10


1 
(t) To endorse Special Resident Retiree's Visas (SRRVs) for retirees that intend to
2 
reside in the MAREZ, in collaboration with the Phiiippine Retirement Authority
3 
(PRA): Provided, That the PRA and the MAREZA shali issue joint regulations on
4 
the processing of SRRVs in accordance with existing laws;
5 
(u) To establish, operate and maintain utilities, facilities, infrastructure, services,
6 
businesses, activities, and concessions in the MAREZ, pertaining to shipping
7 
and maritime businesses and activities inciuding stevedoring and port terminal
8 
services or concessions: Provided, That the Maritime Industry Authority
9 
(MARINA) shall continue to exercise its power to regulate and supervise the
10 
shipbuilding and ship repair of any merchant marine vessel operated or to be
11 
operated in the domestic trade and the domestic shipping industry within the
12 
MAREZ;
13 
(v) To establish and supervise one-stop shops for the issuance of all necessary
14 
permits, ciearances, licenses, and other simiiar certifications to conduct
15 
activities, to improve ease of doing business within the MAREZ, in coordination
16 
with government agencies having jurisdiction over activities in the MAREZ not
17 
otherwise solely reserved to the MAREZA in this Act: Provided, That all
18 
government agencies are directed to provide and extend utmost and full
19 
cooperation to the MAREZA in the establishment of such one-stop shops;
20 
(w) To issue rules and regulations consistent with the provisions of this Act as may
21 
be necessary to implement and accomplish the purposes, objectives and
22 
policies provided herein;
23 
(x) To exercise such powers as may be essentiai, necessary or incidental to the
24 
powers granted to it hereunder as weil as those that shall enable it to carry out,
25 
implement and accomplish the purposes, objectives and policies of this Act; and
26 
(y) To be vested with other powers enjoyed or exercised by other freeport zone
27 
authorities.
28 
SEC. 16. Board of Directors of the MAREZA. - The powers of the MAREZA
29 
shall be vested in and exercised by a Board of Directors, hereinafter referred to as the
30 
Board, which shall be composed of the following:
31 
(a) The Chairman and Vice Chairman, both of whom shali be elected from among
32 
the members of the Board;
33 
(b)The Administrator, who shall in no case be at the same time, the Chairman or
34 
Vice Chairman;
35 
(c) Members consisting of:
36 
(l)Two (2) representatives from the Nationai Government;
37 
(2) One (1) representative from the Province of Marinduque;
11


1 
(3) One (1) representative from the district covering the site of the MAREZ;
2 
(4) One (1) representative from the Municipaiity of Santa Cruz, Province of
3 
Marinduque;
4 
(5) One (1) representative from the MAREZA-registered domestic investors;
5 
(6) One (1) representative from the MAREZA-registered foreign investors; and
6 
(7) One (1) representative from the workers employed in the MAREZ:
7 
Provided, That all members of the Board shall be Filipino citizens.
8 
The Administrator and the members of the Board, shall be appointed by the
9 
President of the Philippines to serve for a term of six (6) years, unless sooner
10 
separated from service due to death, voluntary resignation or removal for cause. In
11 
case of death, resignation or removal for cause, the replacement shall serve only the
12 
unused portion of the term.
13 
No person shall be appointed by the President of the Philippines as a member of
14 
the Board unless he is a Filipino citizen, of good moral character, of proven probity
15 
and integrity, and a degree holder in any of the following fields: economics, business,
16 
public administration, law, management or their equivalent, and with at least ten (10)
17 
years relevant working experience preferably from the field of management or public
18 
administration.
19 
The members of the Board shall each receive per diem at rates to be determined
20 
by the Department of Budget and Management (DBM) in accordance with existing
21 
rules and regulations: Provided, however. That the total per diem collected each
22 
month shall not exceed the equivalent per diem for four (4) meetings.
23 
SEC. 17. Powers and Duties of the Administrator. - The Administrator shall
24 
have the following powers and duties:
25 
(a) To direct and manage the affairs of the MAREZA in accordance with the policies
26 
of the Board;
27 
(b) To establish the Internal organization of the MAREZA under such conditions that
28 
the Board may prescribe;
29 
(c) To submit an annual budget and necessary supplemental budget to the Board
30 
for its approval;
31 
(d)To submit within thirty (30) days after the close of each fiscal year an annual
32 
report to the Board and such other reports as may be required;
33 
(e) To submit to the Board for its approval policies, systems, procedures, rules and
34 
regulations that are essential to the operation of the MAREZA;
12


1 
(f) To create a mechanism in coordination with reievant agencies for the promotion
2 
of industrial peace, the protection of the environment, and the advancement of
3 
the quaiity of life in the MAREZ; and
4 
(g)To perform such other duties as may be assigned to him by the Board or which
5 
are necessary or incidental to his office.
6 
SEC. 18. Organization and Personnel. - The MAREZA Board of Directors shall
7 
provide for an organizational structure and appoint employees, subject to the Civil
8 
Service Law. Upon the recommendation of the Administrator, the Board shall appoint
9 
and fix the remuneration and other emoluments of its officers and employees in
10 
accordance with existing laws on compensation and position classification: Provided,
11 
That the salary and other compensation of the Administrator shall be comparable with
12 
the President and the Chief Executive Officer of Clark Development Corporation:
13 
Provided, further, That the Board shall exercise administrative supervision over their
14 
employees.
15 
The officers and employees of the MAREZA, including all members of the Board,
16 
shall not engage directly or indirectly in partisan activities nor take part in any election,
17 
except to vote.
18 
No officer or employee of the MAREZA, subject to civil service laws and
19 
regulations, shall be removed or suspended except for cause, as provided by law.
20 
SEC. 19. Labor Center, Health and Housing Facilities. -
21 
(a) A labor center shall be established within the MAREZ. This center shall be
22 
responsible for studying and amicably settling professional and labor relations and
23 
disputes, interpretation of empipyment contracts, and monitoring work, hygiene and
24 
safety standards within the MAREZ. The labor center shall comprise a labor office, an
25 
industrial health and safety office, and an inspection and disputes office.
26 
Except as othenwise provided in this Act, labor and management relations in the
27 
MAREZ shall be governed by applicable rules and regulations under the Labor Code of
28 
the Philippines, as amended. Employees and personnel in the registered enterprises
29 
shall receive salaries and benefits, and shall enjoy working conditions provided under
30 
the Labor Code and other relevant laws and issuances of the Philippine Government
31 
and the DOLE. The MAREZA shall allow the visitorial power of the Secretary of the
32 
DOLE or his duly authorized representative, and/or may assign its personnel to join
33 
the DOLE Regional Office IV-B in the conduct of labor inspection.
34 
(b) The Department of Health shall establish, fund, operate and maintain a
35 
tertiary hospital in the MAREZ.
36 
(c) The National Housing Authority, pursuant to its, mandate, shall undertake
37 
vertical and horizontal housing development for the marginalized informal settlers and
13


1 
low income earners within the MAREZ, and shall source the necessary funds thereof
2 
through National Government subsidy.
3 
SEC. 20. Banking Rules and Regulations. - Existing banking laws and
4 
rules/regulations of the BSP shall apply to banks and financial institutions to be
5 
established in the MAREZ.
6 
SEC. 21. Remittances. - In the case of foreign investments, a registered
7 
enterprise in the MAREZ shall have the right to remit earnings from the investment in
8 
favor of the investor and/or intended beneficiary, subject to the provisions of Republic
9 
Act No. 7653, otherwise known as the "New Central Bank Act," the manual of
10 
regulations on foreign exchange transactions, as well as other relevant rules and
11 
regulations.
12 
SEC. 22. Applicability Clause. - The provisions of Sections 30-41 of Republic
13 
Act No. 7916, otherwise known as "The Special Economic Zone Act of 1995," as
14 
amended, shall likewise apply to the MAREZ.
15 
SEC. 23. Capitalization. - The capital stock to be contributed by the
16 
government, shall be:
17 
(a) Two billion five hundred million pesos (Php2,500,000,000.00), with option to
18 
increase capitalization upon the discretion of the MAREZA,;
19 
(b)AII lands embraced and covered by the MAREZ, as well as permanent
20 
improvements and fixtures upon proper inventory not otherwise alienated,
21 
conveyed, or transferred to another government agency; and
22 
(c) All other assets which the President may transfer to the MAREZA as part of the
23 
equity contribution of the government.
24 
SEC. 24. Supervision and Control. - For purposes of policy direction and
25 
coordination, the MAREZA shall be under the direct control and supervision of the
26 
Office of the President of the Philippines.
27 
SEC. 25. Regional Development Council. - The MAREZA shall determine the
28 
deveiopment goals for the MAREZ within the framework of national development
29 
plans, policies and goals. The Administrator shall, upon approval by the Board, submit
30 
the MAREZ plans, programs and projects to the Regional Development Council for
31 
inclusion and inputs to the overall regional development plan.
32 
SEC. 26. Relationship with Local Government Units. - Except as herein
33 
provided, the Municipality of Santa Cruz in the Province of Marinduque shall operate
34 
and function in accordance with the Local Government Code of 1991. In case of any
35 
conflict between the MAREZA and the local government units (LGUs) and the National
14


1 
Government (NG) on matters affecting the MAREZ, other than defense and security
2 
matters, the decision of the MAREZA shall prevail.
3 
SEC. 27. Legal Counsel. - The MAREZA shall have its own internal legal
4 
counsel under the supervision of the Government Corporate Counsel. When the
5 
exigencies of its businesses and operations demand, the MAREZA may engage the
6 
services of an outside counsel either on a case-to-case or on a fixed retainer basis.
7 
SEC. 28. Interpretation/ Construction. - The powers, authorities and
8 
functions that are vested in the MAREZA are intended to establish decentralization of
9 
governmental functions and authority and promote an efficient and effective working
10 
relationship between the MAREZA, the National Government and the LGU.
11 
SEC. 29. Audit. - The Commission on Audit shall appoint a full-time auditor in
12 
the MAREZA or may assign such number of personnel as may be necessary in the
13 
performance of their functions.
14 
SEC. 30. Implementing Rules and Regulations. - The DTI, the DOF, the
15 
LGU and the Department of the Interior and Local Government shall formulate the
16 
implementing rules and regulations of this Act within ninety (90) days after its
17 
approval. Such rules and regulations shall take effect fifteen (15) days after their
18 
publication in a newspaper of general circulation in the Philippines.
19 
SEC. 31. Separability Clause. - If, for any reason or reasons, any part or
20 
provision of this Act shall be declared as unconstitutional or invalid, the other parts or
21 
provisions hereof which are not affected thereby shall continue to be in full force and
22 
effect.
23 
SEC. 32. Repealing Clause. - All provisions of existing laws, orders, rules and
24 
regulations or parts thereof which are in conflict or inconsistent with the provisions of
25 
this Act are hereby repealed, amended or modified accordingly.
26 
SEC. 33. Effectivity. - This act shall take effect fifteen (15) days after its
27 
publication in the Official Gazette or in two (2) newspaper of general circulation.
Approved,
15