Repubiic of the Philippines
HOUSE OF REPRESENTATIVES,
‘on City

SEVENTEENTH CONGRESS

t Regular Session

Introduced by Rep. Winston “Winnie” Castelo

EXPLANATORY NOTE

First off, this bill aims to serve as the counterpart of Senate Bill 1028 authored by
Senator Bam Aquino believing as this humble author does in the timeliness and
urgency of a measure of this nature. It is popularly known as the “Go Negosyo Bill.”

The "Go Negosyo Act of 2013” seeks to strength the micro, smali, and medium
enterprises (MSMEs) sector by providing it with better incentives and benefits,
granting more access to focused support for enhanced business performance,
promoting support to key growth industries, and facilitating financing support
programs that are much needed for growth. Further, the Act promotes more
participation from the private sector in the MSME Development Council

MSMEs, now more than ever, have an important socioeconomic role in our nation's
machinery. Unemployment numbers are growing, and we have to realize that
allocating effort and resources towards a strong and thriving MSME sector not only
sustains, but also leads to the creation of considerable and promising net
employment.

if unemployment is to be addressed head-on, then it behooves Congress to pass this
Act. Improvement of the design and implementation of the nation’s MSME sector is
in direct proportion to improvement of the nation's employment rate,

This Act has the potential to assist MSMEs to integrate the
economic market, which will bring forth more job opportunitiés and the growth of our
nation’s economy.

The approval and passage of this bill is therefore most ea|
submission

estly enjoined, hence this


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

SEVENTEENTH CONGRESS

First Regular Session

re
HOUSE BILL NO. 3007

Introduced by Rep. Winston “Winnie” Castelo

AN ACT

PROMOTING THE REDUCTION OF POVERTY THROUGH THE DEVELOPMENT OF
MICRO, SMAU

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

SECTION 1. Short Title. - This Act shall be known as the "Go Negosyo Act of 2016."

SECTION 2. Deciaration of Policy. ~ it is hereby declared the policy of the State to
foster nationai development, promote inclusive growth, and reduce poverty by
ent of micro, small ar in
that facilitate local job creation and production in the country. MSMEs increase
income for poor households and build both business equity and personal assets over
2 period of time. To this end, the State shall develop plans and initiate means to ease
the constraints on the establishment of MSMEs in order to tt
bureaucratic regulations, providing greater incentives and benefits to MSMEs, and
strengthening the Micro, Small and Medium Enterprise Development (MSMED)
Council

SECTION 3. Establishment of Negosyo Centers. There shaii be established under the
supervision of the Micro, Small and Medium Enterprises Development (MSMED)
a “Negosyo Center” in all provinces, lities. The MSMED
Council shall ensure inter-agency coordination, Local Government Unit (LGU)
participation and public-private partnerships in the establishment and management
of Negosyo Centers. in applicable areas, the existing Micro, Smal! and Medium
Enterprise (MSME) Centers shall continue to operate as Negosyo Centers subject to
the provisions of this Act. The Negosyo Centers shall be responsible for promoting
ease of doing business and facilitating access to services for MSMEs within its
jurisdiction. The MSMED Council, through the regional offices of the Department of
Trade and Industry (DT!) shall perforr
to fulfill the functions of the Negosyo Centers.

ities and munic

oversight fu



SECTION 4, Functions of Negosyo Centers. - Negosyo Centers shall have the

following functions:

(a) Promote ease of doing business a

its jurisdiction;

(b) Coordinate and facilitate processes of government related to the set-up

and management of MSMEs;
(c) Accept and facilitate ali registration applications of MSMEs;

{d) Coordinate with the respective local government units and liaise with
concerned government agencies to process the duly accomplished forms

submitted by the MSMEs;

{e) integrate a unified business processing system for MSMEs;

(f) Monitor and recommend business-process improvement

g
=
Ga
ES

(g) Encourage government institutions that are related to the business
appiication process to heip promuigate information regarding the

Negosyo Center;
(h) Supply information and services in training, financing and marketing;

(i) Support private sector activities relating to MSME development;

organizations a mentoring program for prospective and current

entrepreneurs and investors;

{k) Build local support networks and establish market linkages for MSME

developm:

(i) Coordinate with schoois and organizations on the development of a youth

entrepreneurship training program;



(m)Facilitate access to grants and other forms of financial assistance, shared

service facilities and equipment, and other support for MSMEs;

(n) Ensure iabor-management guidance, assistance and improvement of the

working conditions of MSMEs;

(0) Establish a databank which shall be a source of ail information necessary
for project monitoring, research and policy studies and information

dissemination campaigns;

{p) Map out all information and services essential to prospective
entrepreneurs and prospective investors especially in key value chains

and economic subsectors within its jurisdiction;

{q) Establish a feedback mechanism among the MSMEs in the respective

jurisdiction of the Negosyo Centers; and

{r) Conduct other programs or projects for entrepreneurial development in

the country aligned with the MSME development plan.

SECTION 5. Registration. —

{a) Micro, Small and

1. Aunified and simplified business registration form shail be created by
the DT! and shall be made available in all Negosyo Centers. The
unified business re; form shall contain all necessary
information for the business application process of MSMEs. The DT!
shall be responsible for reguiariy updating and maintaining the unified
business registration form.

2. The Negosyo Center of each city or municipality shaii facilitate and
expedite the business application process of MSMEs in coordination

id othe oondernied agencies:

3. Should the concerned business permits and licensing offices fail to
process the application within fifteen (15) days, the MSME shall be
deemed registered for 2 period of one (1) year. In this case, these
offices shall have the authority to revoke the registration within a
period of thirty (30) days upon determination that the MSME has not
met the necessary requirements and qualifications.


4, Thereafter, MSMEs shail renew its registration annually.

{b) Certificate of Authority for Barangay Micro Business Enterprises
(BMBEs) ~ The Negosyo Center in the city or municipal level shall have
the sole power to issue the Certificate of Authority to BMBEs in
accordance with Republic Act No. 9178. Upon the approval of registration
of the BMBE, the Negosyo Center shall issue the Certificate of Authority,
which shall automatically exempt the micro enterprise from the minimum
wage law and from income tax. To defray the administrative costs of
registering and monitoring the micro enterprise, the Negosyo Center may

e Hundred Pesos (Php 500.00).

(c) Philippine Business Registry — A Philippine business registry system shall
be housed under the Negosyo Center, if available, for use of MSMEs to
expedite registration with concerned licensing offices.

SECTION 6. Start-up Fund for MSMEs. — Aside from the existing benefits for MSMEs,
the MSMED Council, through DTi, the Department of Finance (DOF) and the

ablish a Start-up Fund for MSMEs to be
sourced from the MSME Development Fund and BMBE Fund to provide financing for
the development and promotion of MSMEs in priority sectors of the economy as
specified in the MSMED Plan.

SECTION 7. Composition of the Micro, Small and Medium Enterprise Development
Council (MSIVED). — To ensure greater representation by the sectors invoived, the
members of the Council shall be the following:

(a) Secretary of Trade and industry as Chairman;

(b) Secretary of Agriculture;

{c) Secretary of the Environment and Natural Resources;

(d) Secretary of the interior and Local Government;

{e) Secretary of Science and Technology;

{f) Secretary of Tourism;

{g) Director General of National Economic Development Authority;
th) Governor of the Bangko Sentral ng Pilipinas;

(i) Chairman of Small Business Corporation;



(j) Three (3) representatives from the MSME sector to represent Luzon,
Visayas, and Mindanao with at least one representative from the micro
enterprise sector and at lease one representative from the youth sector

to focus on the promotion of youth entrepreneurship;

(k) One representative from the iabor sector, to be nominated by accredited

labor groups;

(i) A representative from the private banking sector: to serve alternately
among the Chamber of Thrift Banks; the Rural Banker’s Association of the

Philippines (RBAP); and the Bankers’ Association of the Philippines (BA);

{m)A representative of Microfinance Non-Government Organizations (NGOs);

{n) Chairperson of the Senate Committee on Trade. Commerce and

Entrepreneurship; and

on Small Business and

(0) Chairperson of the House C

Entrepreneurship Development.

The members may elect from among themseives a Vice-chairman to preside over the

SECTION 8. Functions of MED Council shall have the

following additional functions:

(a) Coordinating and Oversight Body for the Negosyo Center —- MSMED
Councii, through the DTI, shail act as the coordinating and supervising
body for all the agencies involved in the establish:
the Negosyo Centers. Further, the MSMED Council shall monitor and
assess the progress of the Negoyso Centers which shall be included in its
annuat report te the Congress.

ment and opi

(b) Provision of a Compliance Guide - For each rule or group of related rules
issued by any government agency for compliance by MSMEs, the Council
shall pul ance guides entitled 'Micro, Small and Me
Enterprises Compliance Guide.’ The Council shall ensure that the
compliance guide shail be written in plain language or in th
if necessary.

iocai dialect,



The Council shall prepare separate compliance guides covering groups or
classes of similarly affected MSMEs and shail cooperate with industry
associations to develop and distribute such compliance guides. The
publication of each compliance guide shall include the posting of the
guide in an easily identified location on the website of the agency; and
distribution of the guide to known industry contacts, such as small
entities, associations, or industry leaders affected by the rule. The issuing
government agencies shall publish and disseminate the compliance rules
within ninety (90) days from the date of issuance.

SECTION 9. Information Dissemination. — The Philippine Information Agency,
through the Office of Public information in each city or municipality, in coordination

with DTi, Bangko Sentral ng Pilipinas {8SP), Department of Labor and Employment
LG) shall ensure the

{DOLE}, and Department of Interior and Local Government {
proper and adequate information dissemination of the contents and benefits of this
Act to the general public especially to its intended beneficiaries specifically in the

barangay level.

SECTION 10. Appropriations. - The amount necessary to carry out the initiai
implementation of this Act shall be charged against the budget of DTI. Thereafter,
such sums as may be necessary for the continued implementation of this Act shail be
included in the succeeding General Appropriations Act.

SECTION 11. impiementing Rules and Regulations - The Secretary of the DTI, in
consultation with the appropriate agencies as may be deemed necessary, shalt
les and regulations to implement the provisions of this
Act within ninety (90) days after its approval. The rules and regulations issued
pursuant to this Act shail take effect fifteen (15) days after its publication in a

newspaper of general circulation.

formulate the necessary

SECTION 12. Separability Clause. - if any provision of this Act shall be held
unconstitutional, the remainder of the Act not otherwise affected shall remain in full

force and effect.

SECTION 13. Repealing Ciause. — Sections 4 of Republic Act No. 9178 is hereby
repealed. Sections 7-A and 7-B of Republic Act No. 6977, as amended by Republic Act
No. 2289 and Republic Act No. 9501, are hereby amended. Section 12 of Republi
Act No. 9178 is also hereby amended. All other existing laws, presidential decrees,
executive orders, proclamations or administrative reguiations that are inconsistent
with the provisions of this Act are hereby amended, modified or repealed



SECTION 14. Effectivity. - This Act shali take effect fifteen (15) days after its
publication in the Official Gazette or in at least two (2) newspapers of generai

Approved,