NINETEENTH CONGRESS OF THE ) 
REPUBLIC OF THE PHILIPPINES ) 
Second Regular Session 
)
SENATE
2322
®(Ucp of tlje
23 JUL 18 All :05
RECEiVcD m.
S. No.
Introduced by Senator Loren B. Legarda
AN ACT
ESTABLISHING A SPECIAL ECONOMIC ZONE AND FREEPORT IN THE 
PROVINCE OF ANTIQUE, PROVIDING FUNDS THEREFOR, AND
FOR OTHER PURPOSES
EXPLANATORY NOTE
As defined in a 2022 Asian Development Bank report, a Special Economic Zone 
(SEZ) is a distinct variety of economic zone with a specialized legal regime and 
institutional environment different from the rest of the economy. Generally, an SEZ is 
set up for export-oriented enterprises, particularly those with foreign investments, to 
offer them a special regulatory regime for exporting activity with a separate customs 
area, duty-free benefits, streamlined procedures, and its own management authority. 
As mentioned in the Report, SEZs have become a critical tool for developing countries 
to plug them into global value chains.
Antique, a paradise where the mountains meet the sea, is an attractive 
investment destination considering its strategic geographic location coupled with its 
abundant human and natural resources.
In order to tap the province's strong potential, the Antique Special Economic 
Zone and Freeport, spanning an estimated 2,729.17 sqm of urban, suburban and 
agricultural lands, rivers, islands, and mountain ranges, is sought to be established.


This bill seeks to:
1. Establish, develop, and operate a self-sustaining industrial, commercial, 
financial, investment, and tourism center in the province of Antique;
2. Encourage and attract legitimate and productive foreign investors and 
business locators by providing fiscal incentives;
3. Expand and deepen Antique's growth and productivity, and raise the 
quality of life and the living conditions of its people through the creation of 
jobs and income opportunities; and
4. Preserve its indigenous heritage, and to sustainably develop, manage and 
protect its rich marine and coastal resources.
In view of the foregoing, the approval of this measure is earnestly sought.
LOREN LEGARDA


NINETEENTH CONGRESS OF THE ) 
REPUBLIC OF THE PHILIPPINES ) 
Second Regular Session 
)
SENATE
s.No. 2322
©cnai;'
of tb? ^rtxmrv
23 JUL 18 All *05
Introduced by Senator Loren B. Legarda
AN ACT
ESTABLISHING A SPECIAL ECONOMIC ZONE AND FREEPORT IN THE 
PROVINCE OF ANTIQUE, PROVIDING FUNDS THEREFOR, AND
FOR OTHER PURPOSES
Be it enacted by the Senate and House of Representatives of the Philippines in Congress 
assembled:
1 
CHAPTER I
2 
GENERAL PROVISIONS
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Section 1. Short Title. - This Act shall be known as the "Antique Special
5 
Economic Zone Act of 2023."
6 
Sec. 2. Declaration of Policy. - It is hereby declared the policy of the State to
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actively encourage, promote, induce and accelerate a sound and balanced industrial,
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economic and social development of the country in order to provide jobs to the people
9 
especially those in the rural areas, increase their productivity and their individual and
10 
family income, and thereby improve the level and quality of their living conditions
11 
through the establishment, among others, of special economic zones and freeports in
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suitable and strategic locations in the country and through measures that shall
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effectively attract legitimate and productive foreign investments.
14 
Sec. 3. The Antique Special Economic Zone and Freeport. - There is hereby
15 
established a special economic zone and freeport, to be known as the Antique Special
16 
Economic Zone, hereinafter known as the Ecozone, which shall cover the entire
17 
Province of Antique.


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Sec. 4. Governing Principles. - The Ecozone shall be managed and operated by
2 
the Antique Special Economic Zone and Freeport Authority, created under Section 10
3 
of this Act, under the following principles:
4 
(a) Within the framework and limitations of the Constitution and the
5 
applicable provisions of the Local Government Code, the Ecozone shall be
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developed into and operated as a self-sustaining industrial, commercial,
7 
financial, aqua/agri-industrial, investment, and tourism/recreational
8 
center and freeport with suitable opportunities in and around the Ecozone,
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and to effectively encourage and attract legitimate and productive foreign
10 
investments therein;
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(b) The Ecozone shall be provided with transportation, telecommunications,
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wastewater facilities, solid waste and hazardous waste treatment and other
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facilities needed to attract legitimate and productive investments, generate
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linkage industries and employment opportunities for the people of the
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Province of Antique and its neighboring towns and cities;
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(c) The Ecozone may establish mutually beneficial economic relations with
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other entities or enterprises within 
the country or, subject 
to the
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administrative guidance of the Department of Foreign Affairs (DFA), 
the
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Philippine Economic Zone Authority (PEZA) and/or the Department of
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Trade and Industry (DTI), with foreign entities or 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 Ecozone either by themselves or in
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joint venture with Filipinos in any sector of industry, international trade
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and commerce within the Ecozone;
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(e) The Ecozone shall be managed and operated as a separate customs territory
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ensuring free flow or movement of goods and capital within, into and out
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of its territory;
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(f) The areas comprising the Ecozone may be expanded or reduced when
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necessary. For this purpose, the Antique Special Economic Zone Authority,
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in consultation with the LGUs, shall have the power to acquire either by
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purchase, negotiation or condemnation proceedings, any private land
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within or adjacent to the Ecozone for the following purposes: (1)


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consolidation of lands for Ecozone development; (2) acquisition of right of
2 
way to the Ecozone; and (3) the protection of watershed areas and natural
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assets valuable to the prosperity of the Ecozone as well as appropriate sites
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for water treatment facilities;
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(g) Goods manufactured by an Ecozone enterprise shall be made available for
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immediate retail sale in the domestic market, subject to the payment of
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corresponding taxes on raw materials and other regulations that may be
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formulated by the Antique Special Economic Zone Authority, in
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consultation with the FEZ A, the Department of Finance (DOF), and the DTI.
10 
However, in order to protect domestic industries, a negative list of
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industries shall be drawn up and regularly updated by the PEZA and the
12 
Board of Investments (BOI). Enterprises engaged in industries included in
13 
such negative list shall not be allowed to sell their products locally;
14 
(h) Except as otherwise provided herein, the local government units totally or
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partially embraced within the Ecozone shall retain and maintain their basic
16 
autonomy and identity. The Province of Antique shall operate and function
17 
in accordance with Republic Act No. 7160, otherwise known as the Local
18 
Government Code of 1991, insofar as the areas within its respective
19 
jurisdiction covered in this Act are concerned; and
20 
(i) The defense of the Ecozone and the security of its perimeter fence shall be
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the responsibility of the national government in coordination with the
22 
Antique Special Economic Zone Authority and the LGUs concerned.
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Sec. 5. Fiscal Incentives. - Registered enterprises operating within the Ecozone
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may be entitled to the existing fiscal incentives provided and granted under Title XIII
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(Tax Incentives) of the National Internal Revenue Code of 1997, as amended by
26 
Republic Act No. 11534, otherwise known as the "Corporate Recovery and Tax
27 
Incentives for Enterprises Act" as well as favored treatment in government
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procurement.
29 
Sec. 6. Administration, Implementation and Monitoring of Incentives. - In the
30 
interest of enhancing transparency in the management and accounting of tax
31 
incentives in the Ecozone, and ensuring the proper administration, management,
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enforcement, implementation and monitoring of tax incentives, the AEZA shall


1 
comply with the provisions of Republic Act No. 11534, otherwise known as the
2 
"Corporate Recovery and Tax Incentives for Enterprises Act".
3 
The BOC shall set up and establish a customs-controlled area outside the
4 
premises of the Ecozone to facilitate payment of duties and taxes on goods entering
5 
the Philippine customs territory: Provided, That notwithstanding the limitations on
6 
this Act, the AEZA and BOC may coordinate and jointly implement measures on
7 
border protection.
8 
Sec. 7. Banking Rules and Regulations. - Banks and financial institutions to be
9 
established in the Ecozone shall be under the supervision of the BSP and subject to
10 
existing banking laws, rules and regulations.
11 
Sec. 8. Remittances. - In the case of foreign investments, a duly registered entity
12 
or enterprise within the Ecozone shall have the right to remit earnings to its investors
13 
in the currency in which the investment was originally made and at the exchange rate
14 
prevailing at the time of remittance, subject to the provisions of Republic Act No. 7653,
15 
otherwise known as the "New Central Bank Act" as amended.
16 
Sec. 9. Permanent Resident Status of Foreign National Investors. - Any foreign
17 
national who invests an amount of not less than One hundred fifty thousand United
18 
States dollars (US$150,000.00) in a registered enterprise, either in cash or equipment,
19 
shall be entitled, along with his or her spouse, dependents, and unmarried children
20 
below twenty-one (21) years of age, a permanent resident status within the Ecozone.
21 
The responsibility and authority to grant such permanent resident status is hereby
22 
delegated to the Antique Economic Zone Authority referred to in Section 10 of this
23 
Act.
24 
Such foreign investor and his or her spouse, dependents, and unmarried
25 
children below the age of twenty-one (21) years, shall have the freedom of ingress and
26 
egress to and from the Ecozone without need of any special authorization from the
27 
Bureau of Immigration.
28 
Likewise, the Antique Economic Zone Authority shall issue working visas
29 
renewable every two (2) years to foreign executives and foreign technicians with
30 
highly specialized skills which no Filipino possesses, as certified by the Department
31 
of Labor and Employment.


1 
The names of foreigners granted permanent resident status and working visas
2 
by the Antique Economic Zone Authority shall be reported to the Bureau of
3 
Immigration within thirty (30) days from such grant.
4 
The foregoing is without prejudice to a foreigner acquiring permanent resident
5 
status in the Philippines in accordance with applicable immigration, retirement, and
6 
other related laws
7 
Sec. 10. Creation of the Antique Economic Zone and Freeport Authority. - A body
8 
corporate to be known as the Antique Economic Zone Authority, hereinafter referred
9 
to as the AEZA, is hereby created to manage and operate, in accordance with the
10 
provisions of this Act, the Ecozone. This corporate franchise shall expire in fifty (50)
11 
years counted from the first day of the fifth (5th) calendar year after the effectivity of
12 
this Act, unless otherwise extended by Congress.
13 
Sec. 11. Powers and Functions of the Antique Economic Zone Authority. - The AEZA
14 
shall have the following powers and functions:
15 
(a) To operate, administer, manage and develop the Ecozone according to the
16 
principles and provisions set forth in this Act;
17 
(b) To register, regulate and supervise the enterprises in the Ecozone in an
18 
efficient and decentralized manner, subject to existing laws;
19 
(c) To coordinate with LGUs and exercise general supervision over the
20 
development plans, activities and operations of the Ecozone;
21 
(d) To adopt, alter, use a corporate seal; to contract, lease, buy, sell, acquire,
22 
own and dispose of personal or real property of whatever nature; sue and
23 
be sued; and otherwise carry out its functions and duties as provided for in
24 
this Act;
25 
(e) To raise or borrow, within the limitation provided by law, and subject to
26 
the approval of the Monetary Board of the Bangko Sentral ng Pilipinas (BSP),
27 
as the case may be, adequate and necessary funds from local or foreign
28 
sources, to finance its projects and programs under this Act, and for this
29 
purpose, to issue bonds, promissory notes, and other form of securities, and
30 
to secure the same by a guarantee, pledge, mortgage, deed of trust, or an
31 
assignment of all or part of its property or assets;


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(f) To regulate and undertake the establishment, construction, operation and 
maintenance of public utilities, other services, and infrastructure in the 
Ecozone such as light and power, shipping, barging, 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, drainage, airport 
operations in coordination with the Civil Aviation Authority of the 
Philippines, and such other services or concessions or infrastructure 
necessary or incidental to the accomplishment of the objectives of this Act;
(g) To construct, acquire, own, lease, operate and maintain on its own or 
through contracts, franchises, licenses, bulk purchases from the private 
sector or permits under any of the schemes allowed in Republic Act No. 
6957, otherwise known as the "Build-Operate-Transfer Law", as amended, 
or joint venture, adequate facilities and infrastructure required or needed 
for the operation and development of Ecozone, in coordination with 
appropriate national and local government authorities and in conformity 
with applicable laws thereon;
(h) To approve plans, programs and projects of the Ecozone, to be submitted 
to the Regional Development Council for inclusion and inputs to the overall 
Regional Development Plan;
(i) To operate on its own, either directly or through licenses to others, tourism- 
related activities, including games, amusements, recreational and sports 
facilities, subject to the approval and supervision of the Philippine 
Amusement and Gaming Corporation;
(j) To protect, preserve, maintain and develop the forests, beaches, corals and 
coral reefs, and maintain the ecological balance within the Ecozone. 
Notwithstanding the power of the AEZA to create rules for such purpose, 
the rules and regulations of the Department of Environment and Natural 
Resources and other government agencies involved in the above functions 
shall be implemented by the AEZA;


1 
(k) To adopt, implement and enforce reasonable measures and standards to
2 
control pollution within the Ecozone;
3 
(1) To create, operate or contract to operate such functional units or offices of
4 
the AEZA as it may deem necessary;
5 
(m) To issue certificates of origin for products manufactured or processed in
6 
the Ecozone in accordance with prevailing rules of origin and the pertinent
7 
regulations of the FEZ A, the DTI, and the DOF;
8 
(n) To establish one-stop shops for the issuance of all necessary permits,
9 
clearances, licenses, and other similar certifications to conduct such
10 
activities intended to improve the ease of doing business within the
11 
Ecozone, in coordination with government agencies having jurisdiction
12 
over activities therein: Provided, That all government agencies are directed
13 
to provide and extend utmost and full cooperation to the AEZA in the
14 
establishment of such one-stop shops;
15 
(°) To ensure that the area covered by the Ecozone is secure at all times:
16 
Provided, That the Armed Forces of the Philippines (AFP) or the Philippine
17 
National Police (PNP) shall not interfere in the internal affairs of the AEZA
18 
except to provide the necessary security and defense, or law enforcement
19 
assistance, as the case may be: Provided, finally, That expenses of the AFP or
20 
the PNP in the Ecozone shall be borne by the national government;
21 
(p) To issue rules and regulations consistent with the provisions of this Act as
22 
may be necessary to implement and accomplish the purposes, objectives
23 
and policies herein provided; and
24 
(q) To exercise such powers as may be essential, necessary or incidental to the
25 
powers granted to it by this Act, as well as those that shall enable it to carry
26 
out, implement, and accomplish the purposes, objective and policies set
27 
forth in this Act.
28 
Sec. 12. Board of Directors of AEZA. - The powers of the AEZA shall be vested in
29 
and exercised by a Board of Directors hereinafter referred to as the Board, which shall
30 
be composed of fifteen (15) members, to wit:
31 
(a) The Chairperson who shall, at the same time, be the Administrator of the
32 
AEZA;


1 
(b) Four (4) representatives of the national government;
2 
(c) Municipal Mayors of municipalities included in the area of the Ecozone, as ex
3 
ojficio voting members, which, however, in no case shall exceed a total number
4 
of five (5) members;
5 
(d) Two (2) representatives of labor from among the workers in the Ecozone;
6 
(e) Two (2) representatives from the business and investment sectors in the
7 
Ecozone, one (1) of whom must come from the local investors of the Province
8 
of Antique, while the other one (1) must come from the non-resident investors
9 
within the Ecozone; and
10 
(f) One (1) representative of the private sector preferably a resident of the
11 
Province of Antique.
12 
The Chairperson and the members of the Board, except the ex officio members,
13 
shall be appointed by the President of the Philippines to serve for a term of tliree (3)
14 
years, unless sooner removed for cause or dies or resigns voluntarily. In case of death,
15 
resignation or removal for cause, the replacement shall serve only the unexpired
16 
portion of the term.
17 
No person shall be appointed by the President of the Philippines as a member
18 
of the Board unless he is a Filipino citizen, of good moral character and of recognized
19 
competence in some relevant fields in business, banking, shipping, business or labor
20 
management, port operations, engineering, or law.
21 
Members of the Board shall receive a reasonable per diem which shall not be less
22 
than the amount equivalent to the representation and transportation allowances of the
23 
members of the Board and/or as may be determined by the Department of Budget
24 
and Management; Provided, however, That the total per diem collected each month shall
25 
not exceed the equivalent per diems of four (4) meetings. Unless and until the President
26 
of the Philippines has fixed a higher per diem for the members of the Board, such per
27 
diem shall not be more than Ten thousand pesos (Php 10,000.00) for every Board
28 
meeting.
29 
Sec. 13. Chairperson and Administrator - The President of the Philippines shall
30 
appoint a professional manager as administrator of the AEZA whose compensation
31 
shall be determined by its Board of Directors and shall be in accordance with the
32 
revised compensation and position classification system, who shall be the ex officio


1 
chairperson of the Board of Directors. The Chairperson and Administrator of AEZA
2 
shall be responsible to the Board and the President of the Philippines for the efficient
3 
management and operation of the Ecozone.
4 
Sec. 14. Capitalization. - The AEZA shall have an authorized capital stock of two
5 
billion (2,000,000,000) no par shares with a minimum issue value of Ten pesos
6 
(PhplO.OO) each. The national government shall initially subscribe and fully pay three
7 
hundred million (300,000,000) shares of such capital stock. The initial amount
8 
necessary to subscribe and pay for the shares of stock shall be included in the General
9 
Appropriations Act of the year following its enactment into law and thereafter. The
10 
Board of Directors of AEZA may, from time to time and with the written concurrence
11 
of the Secretary of Finance, increase the issue value of the shares representing the
12 
capital stock of the AEZA. The Board of Directors of AEZA, with the written
13 
concurrence of the Secretary of Finance, may sell shares representing not more than
14 
forty per centum (40%) of the capital stock of the AEZA to the general public with
15 
such annual dividend policy as the Board and the Secretary of Finance may determine.
16 
The national government shall in no case own less than sixty per centum (60%) of the
17 
total issued and outstanding capital stock of the AEZA.
18 
Sec. 15. Supervision. - The Ecozone shall be under the direct control and
19 
supervision of the Office of the President of the Philippines for purposes of policy
20 
direction and coordination, in the meantime that the agency tasked with the
21 
coordination of special economic zones is not yet in place.
22 
Sec. 16. Relationship with the Local Government Units of Antique. - In case of any
23 
conflict between the AEZA and the local government units of Antique on matters
24 
affecting the Ecozone other than in defense and security matters, the decision of AEZA
25 
shall prevail.
26 
Sec. 17. Legal Counsel. - The AEZA and the corporations in which AEZA owns
27 
a majority of the issued capital stock shall have its own internal legal counsel under
28 
the supervision of the government corporate counsel. When the exigencies of its
29 
businesses and operations demand it, the AEZA may engage the services of an outside
30 
counsel either on a case to case basis or on a fixed retainer.
31 
Sec. 18. Auditor. - The Commission on Audit shall appoint a representative who
32 
shall be a full-time auditor of the AEZA and its subsidiaries, and assign such number


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of personnel as may be necessary to assist said representative in the performance of 
his or her duties. The salaries and emoluments of the assigned auditor and personnel 
of the commission on Audit shall be in accordance with the revised compensation and 
position classification system. The Commission on Audit shall render an annual 
report to the President of the Philippines anci to Congress on the business activities, 
transactions and operations of the AEZA.
Sec. 19. Implementing Rules and Regulations. - The DTI, the DOF, the LGU and 
the Department of the Interior and Local Government shall formulate the 
implementing rules and regulations of this Act within ninety (90) days after its 
approval. Such rules and regulations shall take effect fifteen (15) days after their 
publication in a newspaper of general circulation in the Philippines
Sec. 20. Separability Clause. - If any provision of this Act shall be held 
unconstitutional or invalid, the other provisions not otherwise affected shall remain 
in full force and effect.
Sec. 21. Repealing Clause. - All laws, executive orders or issuances, or any parts 
thereof which are inconsistent herewith are hereby repealed or amended accordingly.
Sec. 22. Effectivity Clause. - This Act Shall take effect upon its publication in at 
least one (1) newspaper of general circulation.
Approved,
10