Me

Za REPRESS
~

om
Republic of the Philippines Q
HOUSE OF REPRESENTATIVES [[S RECEIVED “2 a
Quezon City DATE SPN" Gy]
* TIME *
TWENTIETH CONGRESS \E. ay Ent g
First Regular Session oy
318 So nner 7
HOUSE BILL NO. INDE

Introduced by: Hon. Iris Marie D. Montes

AN ACT
PROMOTING THE DEVELOPMENT OF GENDER-RESPONSIVE INCLUSIVE
BUSINESS MODELS AS A SYSTEMATIC SOCIAL INTERVENTION MEASURE
TO FIGHT POVERTY

EXPLANATORY NOTE

Inclusive business (IB) plays a pivotal role in fostering sustainable economic
growth and social development.

IBs, according to the Economic and Social Commission for Asia and the
Pacific (ESCAP), are those providers of goods, services and livelihoods on a
commercially viable basis, either at scale or scalable, to people at the base of the
economic pyramid (BOP), making them part of the value chain of a business as
suppliers, distributors, retailers or customers.’

As part of its strategy to improve access to production networks, the
Philippine Development Plan has called for the creation of linkages between
startups, MSMEs, cooperatives, and other large enterprises (LEs). It urged the
promotion of IB models to spur innovation and create new markets toward the goal
of poverty reduction and inclusive and sustainable economic growth.?

This in the face of persistent economic inequity despite the country’s strong
domestic growth and declining poverty rate from 18.1 percent in 2021 to 15.5
percent in 2023.

In 2023, according to the Philippine Statistics Authority, the sectors with the
highest poverty incidences were Indigenous Peoples (32.4%), fisherfolks (27.4%),
and farmers (27.0%). These sectors had the highest percentages of individuals
belonging to families living below the official poverty threshold.

Accordingly, the sectors with the highest number of individuals belonging to
poor families were children at 9.29 million and women at 8.66 million. These
sectors experienced the largest declines of individuals belonging to poor families
from 2021 to 2023. The number of poor women decreased by 1.28 million, while
the number of poor children exhibited reduction at 1.13 million.

2 Model Framework for an Inclusive Business Accreditation System in ASEAN, Jakarta,
ASEAN Secretariat, September 2024 ('s 2 -framework-for-an-
vst ) Accessed on 04 May 2025)

‘commission for Asia and the Paci

2 Inclusive business, Economic and
( :

4 2enes% NIRS % 2 20defin 20% 20distributo
Jocustomes) Accessed on 04 May 2025
> 2017-2022 Philippine Development Pian, Chapter 9C: Expanding Access to Economic
Opportunities in I&S for Startups, MSMEs, and Cooperatives (9 ~ 35)



The country, however, struggles with a huge disparity in wealth equality.
Based on the World Bank, the Philippines holds one of the highest Gini Coefficients
in the East Asian and Pacific region at 40.7% as of 2021.4

This implies that although poverty incidence declined from 2021 to 2023 in
ten basic sectors, most Filipinos who are poor, or those belonging to the “bottom of
the pyramid” or the “base of the pyramid”, may not benefit from economic growth.

To help address steep inequality and widespread poverty in the country, this
bill seeks to advance women economic empowerment through the promotion of IB
models, which have enormous potential in bringing positive change to women’s
lives.

As of 2023, labor force participation rate places women at 54.2 as compared
to 75.6% of men.* The proportion of unpaid family workers sits women at 11.3% as
compared to 4.7% of men.®

As articulated by the United Nations Women, the UN entity dedicated to
gender equality and the empowerment of women: (a) promoting women’s
economic justice and rights in the economy and closing gender gaps in the world of
work are key to achieving the 2030 Agenda for Sustainable Development and
achieving the Sustainable Development Goals; (b) Women’s economic
empowerment increases economic diversification and income equality for shared
prosperity. It is estimated that closing the gender gap could give the global
economy a USD 7 trillion boost; and (c) Companies greatly benefit from increasing
employment and leadership opportunities for women, which is shown to increase
organizational effectiveness and growth. It is estimated that companies with three
or more women in senior management functions score higher in all dimensions of
organizational performance.”

Thus, this measure seeks to provide an enabling environment for women to
become economically empowered through the adoption of IB models, which focus
on key processes in supply chains that increase the participation and benefit of
women towards economic empowerment.

18 models can create economic opportunities for low income individuals. And
given the dismal situation of women despite their indispensable role in
development, there is an urgent need to engage them not only as implicit but as
explicit beneficiaries of IBs.®

For this reason, and consistent with the declared policy of the State that
affirms the role of women in nation building and promote their empowerment; and

‘ Gini Index - World, World Bank,
(aipsiifdat Jbank erg/indicator/S1.POV.GINI?iocations=1W) Accessed on 06 May
2025

5 Annual Labor_~—s Force.~— Survey, _—Philippine __—Statistics___ Authority
( psa.gov.ph/sites/default/files/infographics/Infograp|

ch signed.pd’) Accessed on 06 May 2025

© PH population body calls for more women in workforce, Jerome Aning, Philippine Daily
Inquirer, March 08, 2025 (hitps://newsinfo.inauirer.net/2041666/ph-popuiation:|
tor- more wor workforce) Accessed on 06 May 2025
> Facts and figures: Economic empowerment,
(bttpsitay nen.org/en/what-we-do/economic-empowerment/fact

ior #/ 148) Accessed on 05 May 2025
® How inclusive is inclusive business for women? Examples from Asia and Latin America,
Asian Development Bank
a vwnw.adb.org/sites/default/files/publication/183942/inclusive-business-women.pdf)
‘Accessed on 05 May 2025



one that recognizes the indispensable role of the private sector and provides
incentives to needed investments, the passage of this bill is earnestly sought.

IRIS MARIE D. MONTES

Kababaihan, Kabalikatan para sa Kapakanan
at Kaunlaran ng Bayan (4K) Party-list,


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

TWENTIETH CONGRESS
First Regular Session

HOUSE BILL NO. 318

Introduced by: Hon. Iris Marie D. Montes

AN ACT
PROMOTING THE DEVELOPMENT OF GENDER-RESPONSIVE INCLUSIVE
BUSINESS MODELS AS A SYSTEMATIC SOCIAL INTERVENTION MEASURE
TO FIGHT POVERTY

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

CHAPTER I
GENERAL PROVISIONS

SECTION 1. Short Title. - This Act shall be known as the "Kababaihan
Kanegosyo at Kasosyo para sa Kaunlaran Act.”

SEC. 2. Declaration of Policy. - Section 9 of Article II of the 1987
Constitution of the Republic of the Philippines declares that the State shall “promote
a just and dynamic social order that will ensure the prosperity and independence of
the nation and free the people from poverty through policies that provide adequate
social services, promote full employment, a rising standard of living, and an
improved quality of life for all".

Pursuant to this declared policy, Section 20, Article II of the Constitution
“recognizes the indispensable role of the private sector, encourages private
enterprise, and provides incentives to needed investments.”

By virtue of Section 14, Article II of the Constitution, the State “recognizes
the role of women in nation-building and shall ensure the fundamental equality
before the law of women and men.”

Towards this end, it shall be the policy of the State to:

(a) recognize the important role of the private sector in achieving inclusive
growth and sustainable development;

(b)develop Inclusive Business models as one of the strategies by which the
private sector companies can spur innovation, deepen investments in low
income communities, enable inclusive value chains, provide decent work,
boost productivity, enhance access to affordable and quality goods and
services, and generate new and higher income and livelihood for the poor,
particularly, the women and other marginalized sectors; and

(c)put women at the center of development and promote their
empowerment, equal opportunities, and access to resources and
development results and outcome.

Further, the State recognizes its role in facilitating an enabling business
environment so that the private sector may adopt and promote Inclusive Business
models through the provision of incentives and ensuring the ease of doing business
thereby reducing the base of the pyramid, promoting social justice, and
contributing to the national development goals.


we

SEC. 3. Definition of Terms. - As used in this Act, the following terms shall
mean:

(a) Base of the pyramid (BOP) refers to the poorest segment of the socioeconomic
pyramid, which is currently 21% of the Philippine population;

(b) Enabling business environment refers to a set of policy, institutional, regulatory,
infrastructure, and cultural conditions that govern formal and informal business
activities. This includes the administration and enforcement of government policy,
and national and local institutional arrangements that affect the behavior of
relevant actors who, together, comprise the important players in inclusive business;

(c) Gender Responsiveness refers to outcomes that reflect an understanding of
gender roles and inequalities and encourage equal participation, including equal and
fair distribution of benefits;

(d) Inclusive Business (IB) refers to a business model approach that provides
goods, services and livelihoods on a commercially viable basis, either at scale or
scalable, to people at the base of the economic pyramid (BOP) who are engaged as
consumers, workers, owners or business partners and made part of the value chain
and core business operations of an IB Company;

(e) Inclusive business community partner refers to the poor and/or marginalized
sector that is part of the core business operations of an IB Company and is deriving
social value from such participation. The term also refers to social enterprises,
cooperatives, non-government organizations, small and medium enterprises, and
other intermediary organizations that facilitate partnerships and linkages between
poor and/or marginalized sector, IB communities, and an IB Company;

(f) Inclusive business company refers to a duly registered, commercially viable, for-
profit company that integrates an IB model or approach in its core business
operations and renders direct contribution to improved living standards, poverty
reduction, and systematic inclusion in a manner that is sustainable, at scale or
scalable, and replicable. It includes existing companies already practicing an
Inclusive Business model;

(g) Inclusive business project refers to the part of the core business operation of an
1B company where the IB model or approach is applied;

(h) Marginalized refers to the basic, disadvantaged, or vulnerable persons or groups
who are mostly living in poverty and have little or no access to land and other
resources, basic social and economic services such as health care, education, water
and sanitation, employment and livelihood opportunities, housing, social security,
physical infrastructure, and the justice system;

(i) Poor refers to individuals and households whose income fall below the poverty
threshold as defined by the National Economic and Development Authority (NEDA)
and/or cannot afford in a sustained manner to provide their minimum basic needs
for food, health, education, housing and other essential amenities in life, as defined
under Republic Act No. 8425, otherwise known as the “Social Reform and Poverty
Alleviation Act”. In determining who constitutes the poor, the Multidimensional
Poverty Index determined by the Philippine Statistics Authority (PSA) shall be
considered in line with Republic Act No. 11291, otherwise known as the “Magna
Carta of the Poor”;

(j) Social value refers to the increase in the welfare of a society, or identified
sectors of society, that is derived from a particular course of action or activity;


(k) Value Chain refers to value-adding economic activities where a business is
interlinked with the process of producing goods and/or services to serve its chosen
market, and not extend to the business operations. A value chain consists of, but is
not limited to, the following:

(1)Raw materials processing;
(2)Inbound distribution or logistics;
(3) Manufacturing operations;

(4) Outbound distribution or logistics;
(5) Marketing and selling; and
(6)After sales service

These activities are supported by purchasing or procurement, research and
development, human resources development, and organizational development.

CHAPTER II
CREATION OF INCLUSIVE BUSINESS COORDINATING COUNCIL OF (IBCC)

SEC. 4. Creation of the Inclusive Business Coordinating Council (IBCC). - There
is hereby created the Inclusive Business Coordinating Council, hereinafter referred
to as the IBCC, which shall be an attached agency to the Department of Trade and
Industry (DTI)

SEC. 5. Powers and Functions of the IBCC. - The IBC shall have the following
powers and functions:

(a)Serve as the lead coordinating agency and hub for the development of
gender-responsive IB models in the country;

(b)Formulate, implement, and update the Inclusive Business Development Plan
(IBDP), which shall serve as a blueprint for the promotion of IBs in the
country and the development of more IB models that will link MSMEs and
community-based enterprises into the value chains of large business
organizations;

(c) Ensure that the IBDP is aligned to and reflected in the Philippine
Development Pian (PDP);

(d)Coordinate with national government agencies, local government units
(LGUs), IBs, IB community partners, the academe, and other stakeholders
in the development and implementation of the IBDP and its component
plans, programs and projects;

(e) Coordinate with relevant government agencies, the private sector, and other
stakeholders to ensure the alignment of existing policies, plans, and actions
towards the objectives of the IBDP;

(f) Coordinate IB-related studies and researches as a basis for recommendation
of sectors, taking into account the recommendations related to integration
and concerns of women, which shall serve as focus areas in the
implementation of the IBDP;

(g)Provide business development, advisory, and facilitation services to IBs and
IB community partners in coordination with relevant agencies and LGUs;
(h)Coordinate and provide a service lane for processing IB projects. This
includes, but is not limited to, providing advisory and facilitation services in
the processing of relevant government permits, licenses, and other
requirements for the implementation of IB projects. The IBCC shall have the
power to direct specific agencies to attend to the bottlenecks and problems

hindering the implementation and effectiveness of IB projects;

(i) Serve as the primary data source of IB issues and challenges that need to be
‘addressed to encourage broad participation and adoption by the private
sector;

(j) Coordinate and direct information, advisory, and training services for
government agencies and institutions to enhance their understanding of and


capacity to support IBs and IB community partners, particularly women
producers and women in small value chains, in the implementation of IB
projects;

(k) Coordinate with the Intellectual Property of the Philippines (IPO PH) in
assisting IB Companies and IB Community Partners in getting patents,
copyright, trademark, and other forms of pursuing protection of their work
and creation. Provided, however, That the Free, Prior and Informed Consent
(FPIC) is obtained;

(I) Provide technical assistance and support to agencies in the formulation of
social value specifications in their procurement processes. The IBCC may
partner with non-government, research, and training institutions pursuant to
this matter;

(m)Establish and implement the criteria, process and guidelines for the
accreditation of IB models, and establish an Accreditation Committee for this
purpose;

(n)Establish and maintain an IB information registry;

(0)Coordinate with donors, government financial institutions, commercial and
rural banks, and social impact investors on financing mechanisms for IBs
and IB community partners;

(p)Initiate public-private partnerships to enhance the viability of IB projects
especially in identified priority geographic areas or industries. The IBCC may
call on other relevant agencies and other government agencies for this
purpose;

(q)Design and manage a campaign or program inviting young professionals to
work with IBs or IB community partners as community organizers and/or
social entrepreneurs;

(r) Recommend, on behalf of the President, to other government agencies and
institutions various policies and programs to promote and support IBs;

(s) Integrate and coordinate existing initiatives for target IB Community partners
and 18 companies;

(t) Integrate and maximize the use of trade preferences taking into
consideration the full observance of human rights, labor rights,
environmental rights, and good governance;

(u)Encourage the academe and research organizations to include IB in the
curricula of schools, and assist in developing processes and tools for
program performance assessments and IB social impact analysis;

(v)Recommend to Congress appropriate legislations to promote and support
IBs;

(w) Provide technical assistance to facilitate and increase compliance to business
regulatory frameworks and standards;

(x)Institutionalize sex disaggregated data collection and analysis for gender-
responsive and evidence-based policymaking and program development;

(y) Ensure and or facilitate participation and representation of women in trade or
business negotiations;

(z) Develop and/or enhance the delivery of programs aimed at increasing
access of women to social protection; and

(aa) Submit an annual report to the Office of the President and the
Congress.

SEC. 6. Composition. - The IBCC shall be headed by the Secretary of Trade and
Industry as Chairperson and composed of the following members:

(a) Secretary of Interior and Local Government;

(b) Secretary of Agriculture;

(c) Secretary of Labor and Employment;

(4) Secretary of Social Welfare and Development;

(e) Secretary of Socioeconomic Planning;

(f) Secretary of Budget and Management;
(g)Chairperson of the Philippine Commission on Women;


(h)Lead Convenor of the National Anti-Poverty Commission;

(i) Three (3) representatives from the private sector, which shall be determined
through a private-sector led initiative designed to support IB; and

(j) Three (3) representatives from micro and small enterprises’ group.

The IBCC may call upon other relevant agencies to provide assistance and
resource on matters depending on the sector and issue needed to be resolved. This
includes national government agencies (NGAs) and representatives from the private
and non-government development sector.

SEC. 7. Partnership with National Councils, Local Government Units (LGUs),
Private Sector Organizations, and Civil Society Organizations. - The IBCC shall
partner with the Micro, Small and Medium Enterprise Development Council, National
Competitive Council, National Convergence Council, Ease of Doing Business and
Anti-Red Tape Advisory Council, and National Innovation Council, LGUs, private
sector organizations, civil society organizations, and relevant stakeholders,
particularly those directly involved with IB community partners and IB companies,
in the implementation, monitoring, evaluation of the IBDP.

SEC. 8. Commitment of Member Agencies to the IBDP. - Each member-agency
of the IBCC shall align their programs, plans and strategies to ensure that the IBDP
is fully implemented, anchoring on similar objectives of promoting Ease of Doing
Business and Efficient Government Service Delivery, as provided in Republic Act
11032, otherwise known as "Ease of Doing Business and Efficient Government
Service Delivery Act of 2018.”

SEC. 9. Organizing and Staffing Pattern for the Secretariat. - The Chairperson of
the IBCC shall prescribe and approve the organization and staffing of its Secretariat
in consultation with the Department of Budget and Management (DBM). Gender
parity in the composition of the organization staffing shall be strictly observed.

CHAPTER IIT
INCLUSIVE BUSINESS ACCREDITATION

SEC. 10. I8 Accreditation Criteria. - The IBCC, in consultation with resource
persons from private sector industry groups, the academe, and relevant social
development institutions, particularly women's organizations, shall establish a
system and criteria for accrediting IBs based on their IB model and project.
Accreditation of IBs may consider, but is not limited, to the following criteria, to be
developed by the IBCC:

(a) Social Value:

(1)Reach. - The IB project of the company must reach or target to reach poor
populations at scale, particularly marginalized women;

(2)Depth. - The IB project of the company must lead to measurable
improvements in the quality of life of poor populations, particularly
marginalized women, through income generation or access to relevant and
affordable services and products; and

(3)Systemic Impact. - The IB project of the company must address relevant
poverty dimensions and provide a systemic contribution to poverty reduction
and social inclusion.

(b) Innovation and Sustainability:

(1)Innovation. - The 1B project of the company must include innovative features
that lead to improvements in areas such as but not limited to, profitability,
governance, social value, social equity, gender equality, and environmental
sustainability;


(2)Financial viability of the company. - The company that adopts the IB model
must be financially viable; and

(3)Financial viability of the company's IB model. - The IB project of the
company must contribute substantially towards the financial viability of the
company with positive returns on investment.

(c) Gender Responsiveness:

(1) Quantitative. - The IB project must use sex-disaggregated statistical data as
a reference point against which changes over time can be assessed to
inform analysis of inclusiveness; and

(2) Qualitative. - The IB project must use descriptive information as a reference
point against which changes in gender relations, the outcomes of a
particular policy, program or activity for women and men, or changes in
gender disparities can be assessed.

The IBCC Accreditation Committee shall propose for approval the specific
percentage weight and measurable indicators to be assigned to each accreditation
criterion, as well as any additional criteria. Criteria weights and indicators shall be
established on a per industry basis subject to approval. Provided, That the final
criteria approved for each industry shall be applied consistently to all applicants
from the same industry without exceptions.

SEC. 11. JB Accreditation Process. - The accreditation process shall involve the
following steps, in accordance with guidelines to be established by the IBCC:

(a)Submission to Accreditation Committee of the completed application form,
business plan, and required supporting documentation by the company;

(b)Initial interview and review of company documentation by the Accreditation
Committee;

(c) Site visit by Accreditation Committee to validate the social and environmental
acceptability and objectives as described in the company's application and
business plan;

(d) Evaluation and recommendation by the Accreditation Committee to the DTI
Executive Committee (ExeCom);

(e)Decision by the DTI ExeCom to approve or disapprove company's
accreditation;

(f) Accreditation for approved applications;

(g)Regular monitoring and assessment;

(h)Renewal of accreditation and continuation of project; and

(i) End of project impact review and reporting.

Accredited IBs shall be subject to regular monitoring, reporting and assessment
to ensure that the company's IB project is being implemented according to the
approved business plan and achieving approved social value, innovation and
sustainability target specifications. Failure to pass the regular monitoring and
assessment by the Accreditation Committee may lead to the revocation of the IB's
accreditation. Motions for project extension will be considered on a per project
basis.

The Accreditation Committee must disclose to companies with disapproved
accreditation applications the reason/s for disapproval to enable said companies to
improve or change their business projects accordingly. Companies with disapproved
applications may reapply for IB accreditation subject to the guidelines provided by
the IBCC.

Notwithstanding the eligibility of a company, the Accreditation Committee
reserves the right to review the qualifications of the company at any stage of the
accreditation process if the Accreditation Committee has reasonable grounds to


believe that a misrepresentation has been made by the company, or that there has
been a change in the company’s capability to undertake the project from the time it
submitted its completed application. Should such review uncover any
misrepresentation made in the application, statements or documents, or any
changes in the situation of the company which will affect the capability of the
company to undertake the project so that it fails the accreditation criteria, the
Accreditation Committee shall consider the company as ineligible and shall
disqualify it from obtaining accreditation to use the IB logo and branding.

CHAPTER IV
BENEFITS, INCENTIVES, AND SUPPORT FOR INCLUSIVE BUSINESSES

SEC. 12. Use of IB Logo and Branding. - Accredited IBs may affix the Philippine
1B logo on related packaging, letterheads, brochures, leaflets, and other forms of
information and communication collaterals, in various media outlets, with
permission from and subject to the policies and guidelines from the IBCC; Provided,
further, that upon the end of the project the logo may not be used further, unless
an extension of the accreditation or registration has been granted; and Provided,
finally, That there is no finding by the IBCC that the project has failed to pass the
regular monitoring and assessment:

SEC. 13. IB Information Registry. - The IBCC shall establish and maintain an
online public IB registry and database, which shall serve as the main repository of
information on IBs. The IB registry shall be disseminated nationwide. The IBCC may
call on the Department of Trade (DTI) Negosyo Centers to promote ease of
dissemination to LGUs and local communities.

To facilitate collaboration on potential and existing IB projects, the registry shall
include information and status on accredited IBs, IB community partners, and IB
projects. It shall also include information on business development service
providers, financial service providers, and social impact investors specifically
catering to IBs and IB community partners.

SEC. 14. Government Support for IB Community Partners. - 18 Community
Partners, which include MSMEs, of accredited IBs shall be prioritized by government
agencies in the provision or distribution of relevant government support programs
and services that may improve or strengthen their capacity and resources to
effectively engage in the IB project. These government programs and services
include, but are not limited to, public infrastructure, shared service facilities,
enterprise capacity building and training support, technical assistance developing
micro-equity finance and business models, marketing assistance, value chain
financing, business incubation and technology transfer, business facilitation,
support for marginalized women, and women's economic empowerment. Provided,
further, That potential and interested individuals and/or organizations seeking to be
18 Community Partners, shall likewise be capacitated by NGAs and LGUs providing
relevant assistance, trainings, support, and capacity building sought by IB
Companies. NGAs and LGUs may seek assistance with civil society organizations for
providing the same.

Toward this end, each member agency of the IBCC shall formulate and issue
policies that shall facilitate these support programs and services, and automatically
provide information of the same to the IB Registry. It shall at the same time,
regularly update information on these support programs and services.

SEC. 15. Incentives for IB Projects. - An 1B Project may qualify for incentives
under this Act and be entitled to the following for five (5) consecutive years starting
from the declared commencement date of the IB project, as approved by the IBCC:



(2)Double Deduction for Labor Expense. - Expenses incurred of a registered IB
Project for wages of persons hired from the identified government databases,
such recipients of government subsidy programs or those living below
poverty threshold or benefitting 50% women workers, shall be deductible
from the gross income for income tax purposes to the extent of two hundred
percent (200%) on the year the said labor expense was incurred; Provided,
That the hiring is an incremental to the number of direct labor;

(b)Double Deduction for Training. - Expenses incurred for training, identified
and approved by the BOI, given to persons hired and to be hired from
identified government databases and those living below the poverty
threshold, and part of IB community partners, especially those IB companies
providing capacity building needs of women, shall be deductible from the
gross income for income tax purposes to the extent of two hundred percent
(200%) on the 35 year the said training expense was incurred;

(c) Additional Deduction for Goods, Materials and Logistics Resources Sourced
from Micro, Small and Medium Enterprises (MSMEs). - A registered IB Project
may be allowed an additional deduction from the taxable income of twenty-
five percent (25%) of the cost of goods, materials and logistics resources
sourced from micro, small and medium enterprises, community enterprises,
social enterprises, especially from women-owned enterprises on the year the
said expenses were incurred; and

(d)Double Deduction for Research and Development. - Expenses incurred for
research and development activities identified and approved by DTI, shall be
deductible from the gross income for income tax purposes to the extent of
two hundred percent (200%) on the year the said research and development
expense was incurred.

SEC. 16. Other IB Incentives. - An accredited 1B shall qualify for other incentives
made available by law, executive issuances, and local ordinances, as recommended
and in consultation with the IBCC. Provided, That double deductions of the same or
substantially similar incentives shall not be allowed unless explicitly allowed by law,
executive issuances, and local ordinances. Guidelines and procedure for availing of
all incentives shall be provided by the IBCC.

CHAPTER V
MISCELLANEOUS PROVISIONS

SEC. 17. Financial and Loan Assistance from Government Banks. - Loan
assistance for the commercial production of a product of an IB Project, either locally
or for export and duly registered or accredited with the IBCC Secretariat created
under this Act, shall be extended by government banks. Provided, That said IB
Project meets the criteria and would enhance the economy of the country and the
community, provide technical capacity, or generate regular and decent employment
opportunities for the IB Community. Provided, That the loans shall be guaranteed
by the Small Business Guarantee and Finance Corporation (SBGFC) and/or the IB
Project.

The SBGFC shall offer its existing products, and further develop products to
encourage adoption of the IB model by both the IB Companies and Communities.

SEC. 18. Government Agencies Assistance. - In order to facilitate the granting of
financial assistance by any government bank, all government agencies concerned
are required to extend all possible assistance, such as the use of its facilities in the
preparation of project feasibility studies and evaluations, and products to be
produced by the IB Company or Community.

SEC. 19. Non-diminution of workers' rights and benefits. - Nothing in this Act
shall be construed as authorizing the diminution of workers' vested rights and/or
benefits provided for under the Labor Code or other laws.


SEC. 20. Penalties. -

(a)Any IB company in violation of the use of the IB Logo and Branding, or
Section 13 of this Act, shail be fined Twenty Thousand Pesos (P20,000.00)
for the first offense; Fifty Thousand Pesos (P50,000.00) for the second
offense; One Hundred Thousand Pesos (100,000.00) and blacklisted from
accreditation for the third offense, subject to the guidelines of the IBCC;
Provided, further, That a company neither registered nor accredited as an IB
Company shall be penalized under letter b of this Section.

(b)Tampering, alteration, forgery, and imitation of the IB Logo, and
misrepresentation thereof, shall be punished with a fine of not less than Fifty
thousand pesos (P50,000.00) but not more than One hundred thousand
pesos (P100,000.00) for each and every instance proven, without prejudice
to other penalties imposed by Republic Act No. 7394, otherwise known as the
"Consumer Act of the Philippines." Provided, That the IBCC is hereby
empowered, after publication, to increase or adjust the amount of the fines
prescribed in this Section once every five (5) years in the amount not
exceeding ten per centum (10%) of existing rates.

(c) Any IB company in violation of the rights of the community or any member
thereof shall be directly responsible for damages and blacklisted from
accreditation without prejudice to other remedies available under the law,
especially those enacted laws protecting women and children as specified
under the Republic Act No 9710, otherwise known as the "Magna Carta of
Women."

SEC. 21. Monitoring, Evaluation, Review, and Assessment. - The IBCC, in
consultation with IB Companies, IB Community Partners, NGAs, and LGUs
concerned as necessary, shall regularly monitor, evaluate, review, and assess the
impact and effectiveness of the IBDP.

The IBCC shall, likewise, submit to Congress a periodic review of the
implementation of this Act at the end of the third year from the date of its
effectiveness and every year thereafter.

SEC. 22. Nationwide Public Information Campaign. - The IBC, in coordination
with its member agencies, the Philippine Information Agency, LGUs, private
agencies, and relevant organizations shall undertake a sustained, intensive, and
targeted information campaign to promote greater awareness and practice of IB
among key stakeholders, particularly large and medium-size companies operating
in priority industries and marginalized areas and encourage the coordinated support
of relevant government agencies to IB investments.

SEC. 23. Implementing Rules and Regulations. - The IBCC, in consultation with
concerned agencies, shall, within ninety (90) days from the effectivity of this Act,
issue the rules and regulations to effectively implement the provisions of this Act.

SEC. 24. Appropriations. - The initial amount necessary for the implementation
of this Act shall be charged against the current appropriation of DTI. Provided, That
the amount necessary for the continued implementation of this Act shall be included
in the annual General Appropriations Act.

SEC. 25. Separability Clause. - If any provision of this Act, or part hereof, is held
invalid or unconstitutional, the remainder of the law or provision not otherwise
affected shall remain valid and subsisting.

SEC. 26. Repealing Cause. - All provisions of laws, presidential decrees, letters
of instruction and other presidential issuances that are incompatible or inconsistent
with the provisions of this Act are hereby deemed amended or repealed.


10

SEC. 27. Effectivity. - This Act shall take effect within fifteen (15) days after its
publication in the Official Gazette or in a newspaper of general circulation.

Approved,