Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

NINETEENTH CONGRESS
First Regular Session

HOUSE BILL No. 3831

Introduced by Representative Rex Gatchalian

AN ACT
ESTABLISHING A BUSINESS PERMIT AND LICENSING OFFICE IN EVERY CITY
OR MUNICIPALITY IN THE COUNTRY

EXPLANATORY NOTE

‘The Philippines is the 13 most populated country in the world and is ranked
39% in terms of nominal GDP per the International Monetary Fund (IMF) outlook for
the years 2019 to 2023. However, the country only placed 95% in the Doing Business
2020, a World Bank Group flagship report which provides objective measures of
business regulations and their enforcement across 190 economies and selected cities
at the subnational and regional level.

Of the nine doing business indicators, the country performed the poorest in
terms of starting a business indicator. In 2018, Republic Act No. 11032 otherwise
known as the “Ease of Doing Business and Efficient Government Service Delivery Act
of 2018” was enacted to improve government transactions through the adoption of
simplified requirements and procedures that will reduce red tape and expedite
business and non-business related transactions in the government.

Through the creation of a Business Permit and Licensing Office in every local
government unit in the country, this bill aims to address this longstanding problem
which had kept the country from realizing its full economic potential.

An intensified effort from the national government as well as in the local
sphere will result in a more vibrant and thriving economic atmosphere conducive to
growth and confidence. The growth at every level of government shall ultimately


translate into an increase in decent employment opportunities for all and efficient
delivery of government services which will benefit the nation as a whole.

In view of the foregoing, immediate consideration and passage of this bill is
earnestly sought.

iN. GATCHALIAN

Representative
1 District, Valenzuela City


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Republic of the Philippines
HOUSE OF REPRESENTATIVES

NINETEENTH CONGRESS
First Regular Session

HOUSE BILL No. 3831

Introduced by Representative Rex Gatchalian

AN ACT
ESTABLISHING A BUSINESS PERMIT AND LICENSING OFFICE IN EVERY CITY
OR MUNICIPALITY IN THE COUNTRY

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

SECTION 1. Short Title. - This act shall be known as the “Business Permit
and Licensing Office Act”.

SEC. 2. Declaration of Policy. - It shall be the policy of the State to
constantly improve the delivery of front line services of government, promote and
establish policies to ensure ease of doing business, as well as simplify systems,

structures, and procedures in the issuance of business permits and licenses.

SEC. 3. Creation of a Business Permit and Licensing Office. - There is
hereby created a Business Permits and Licensing Office, hereinafter referred to as
the Office, in every city or municipality, which shall, among others, handle the
issuance of business permits and licenses as well as formulate and implement
policies and proactive measure to increase local employment, draw local and foreign
investments, and increase local revenues.

SEC. 4. Powers, Duties and Functions. - The Office shall be responsible
for the following:

(A) Processing of business permits and licenses as well as occupational
permits, including the assessment of business taxes, fees, and charges of the various
businesses in the city or municipality. Provided, however, that all assessments are

subject to the authority of the local treasurer to conduct examination of books of


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accounts as well as all other authorities as provided in the Local Government Code
(LGC);

(B) Monitoring and enforcement of the applicable tax ordinances and other
pertinent laws, ordinances, rules and regulations in the operations of businesses and
occupations within the jurisdiction of the city or municipality;

(C) _ Formulation of policies as a proactive measure to draw local and foreign
investments especially in priority areas/industries and as a tool to define the
development thrust of the city or municipality;

(D) _ Initiate, review and recommend to the Mayor revenue-generating
measures to increase local revenues;

(E) Enforcement of the city’s or municipality’s Tax Ordinance and other

pertinent laws, ordinances, and rules and regulations;

(F)__ Sit as a member of the Local Finance Committee, Local Investment
Board and such other bodies as the Mayor shall identify; and

(G)__ Perform such other function as may be provided by law.

SEC. 5. Appointment of the Chief, BPLO. - The Office shall be headed by
a chief, with the rank and salary of a Department Head. The chief shall be qualified
by the Promotion Board of the LGU. The position of Chief, BPLO, shall henceforth be
included under the mandatory appointive local officials common to all municipalities,
cities and provinces under Book III, Title Five of Republic Act No. 7160 otherwise
known as the Local Government Code.

SEC. 6, Composition and Office Structure. - The Office shall be composed
of four (4) principal divisions, namely:

(A) Administrative Division - This division is tasked to handle the
administrative function of the Investments and Business Permits and Licensing
Office (IBPLO);


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(B) Business Permits and Licensing/Occupational Permits Division - This
division shall act on all applications for business and/or mayor’s permits and
occupational permits as required under applicable law, ordinance, rules and

regulations;

(C) Investments Division - This division is tasked to craft policies which
shall increase local investments in the local government in coordination with
concerned offices;

(D) Inspection Division - This division shall handle the technical function
of the Office through:

() Tax mapping and regular inspections of all business
establishment existing and/or operating within the territorial
jurisdiction of the LGU;

(i) Issue and/or implement necessary notices and/or orders to the
concerned establishments; and

(ii) Perform such other matters and functions that may be assigned
by the Chief, BPLO.

SEC.7. Staffing Pattern. - For purposes of the creation of the Office,
officers and employees of the city or municipality holding permanent appointments
shall be given preference for appointment to the new positions created. All other
personnel currently employed in this office shall be prioritized by the Promotion
Board, provided they are eligible and qualified for such position.

No new employees shall be taken in until all permanent employees have been
appointed, including temporary and casual employees who possess the necessary
qualification requirements, among which is the appropriate civil service eligibility,
for permanent positions.

The Office shall determine its organizational structure and create new

divisions or units as it may deem necessary, and shall appoint officers and employees
in accordance with the Civil Service Law, rules and regulations.


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SEC. 8. Appropriation. - The corresponding appropriations shall be
charged against any available funds in the Annual Budget of the LGU. The
corresponding appropriations therefor shall be incorporated in all succeeding annual

executive budgets in years thereafter.

SEC.9. Implementing Rules and Regulations. - The Office, in
coordination with concerned offices in the local government unit and in consultation
with the stakeholders shall, within ninety (90) days from the effectivity of this Act,
issue the necessary rules and regulations for the effective implementation of this Act.

SEC. 10. Separability Clause. - If any part or provision of this Act is held
‘unconstitutional or invalid, the other parts or provision hereof which are not affected
thereby shall continue to be in full force and effect.

SEC. 11. Repeating Clause. - All laws, rules, and regulations, presidential
decrees, letters of instruction and other presidential issuances which are
incompatible or inconsistent with the provisions of this Act are hereby repealed
amended, or modified accordingly.

SEC. 12. Effectivity Clause. - This Act shall take effect thirty (30) days after
its publication in the Official Gazette or in a newspaper of general circulation.

Approved,