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Republic of the Philippines
HOUSE OF REPRESENTATIVES
Constitution Hills, Quezon City

SEVENTEENTH CONGRESS
Second Regular Session

HOUSE BILL NO. 7873

Introduced by Hon. HARLIN NEIL J. ABAYON III

EXPLANATORY NOTE

The Philippines has a long roster of investment promotion agencies and
government-owned and controlled corporations which were created over the
past decades based on and in response to economic, social, and political
priorities of those times.

These government instrumentalities that are abolished and transferred to
the Department of Investments Promotion are:

1. Board of Investments

2. Philippine Economic Zone Authority;

3. Public-Private Partnerships Center;

4. Bases Conversion and Development Authority;
5. Clark Development Corporation;

6. Subic Bay Metropolitan Authority;

7. John Hay Management Corporation;

8. PHIVIDEC Industrial Authority;

9. Philippine Retirement Authority;

10. Poro Point Management Corporation;

11. Cagayan Economic Zone Authority;

12. Authority of the Freeport Area of Bataan;

13. Aurora Pacific Economic Zone and Freeport Authority;
14. Zamboanga City Special Economic Zone Authority;
15. Southern Philippines Development Authority;
16. First Cavite Industrial Estate, Inc.;

17. Duty Free Philippines, Inc;

18. Batangas Land Company;

19. Pinagkaisa Realty Corporation;

20. Kamayan Realty Corporation;

21. GY Real Estate, Inc.

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Having so many investment promotion and area development agencies
has caused confusion in the business community, created more red tape,
needlessly enlarged the bureaucracy, resulted in hundreds of millions of pesos
in lost revenue, and caused higher administration costs, including the
compensation and benefits of a multitude of government officials. The
economic, social, and political conditions of the country have also vastly
changed and continue to change as influenced by various global and domestic
factors.

‘The Department shall be the lead investment promotion agency of the
Philippines. It shall promote both foreign and domestic investments.

It shall formulate and implement the Investments Strategy and Action
Plan of the country targeting both foreign and domestic investors.

It shall harmonize, rationalize, and prioritize in a Comprehensive
Investment Incentives Program (CIIP), the grant of national tax and non-tax
incentives for small, medium, and large scale investors, industries,
institutions, and corporations on the basis of criteria that are performance-
based, tightly-targeted, time-bound, and transparent.

The CIIP shall be subject to approval of the President of the Philippines,
in the form of an executive order, upon the recommendation of the Secretary,
following deliberation by the Advisory Board.

The Department, in coordination with the Department of Interior and
Local Government, formulate and implement programs, projects, and other
activities for capacity-building, including investments research, market and
staff development, of local government units.

In response to current dynamics and to adapt the country to emerging
challenges, this bill seeks the creation of the following line offices in the
envisioned Department of Investments Promotion:

1. Commission on Economic Zones and Freeports;
2. Commission on Development Areas and Industrial Estates;

3. Commission on Financial Markets Development;

4. Commission on Local Government Investments.

5. Public-Private Partnerships Bureau;

6. Regional Headquarters and Regional Operating Headquarters Bureau;
7. Retail Trade Promotion Bureau;

8. Expatriate Investors and Investors Visa Processing Bureau;

9. Investor Services and Advisory Bureau;

10. Investments Academy

For administrative and policy coordination purposes, the Securities and

Exchange Commission, Cooperatives Development Authority, and Mindanao
Development Authority shall be attached to the Department.

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The Department shall have the following staff bureaus:

1. Policy Research Bureau

2. Human Resources and Staff Development Bureau
3. Administrative Services Bureau

4, Financial Management Services Bureau

5. Legal Services Bureau

Considering the foregoing, immediate passage of this bill is earnestly
sought.

HARLIN\NEIL J. ABAYON II
Representative, AANGAT TAYO Party-list

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Republic of the Philippines
HOUSE OF REPRESENTATIVES
Constitution Hills, Quezon City

SEVENTEENTH CONGRESS
Second Regular Session

HOUSE BILL NO. 7873

Introduced by: Hon. HARLIN NEIL J. ABAYON III

AN ACT
CREATING THE DEPARTMENT OF INVESTMENT PROMOTION AND
DEVELOPMENT, APPROPRIATING FUNDS THEREFOR, AND FOR OTHER
PURPOSES

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 ‘Charter of the
Department of Investments Promotion.”

Section 2. Declaration of Policy. - It is the declared policy of the State
to: recognize the indispensable role of the private sector; encourage private
enterprise, and provides incentives to needed investments; promote a just and
dynamic social order that will ensure the prosperity and independence of the
nation; strive for full employment, a rising standard of living, and an improved
quality of life for all; and protect and advance the right of the people to a
balanced and healthful ecology in accord with the rhythm and harmony of
nature.

Section 3. Creation of the Department of Investments Promotion.
The Department of Investments Promotion, hereinafter referred to as the
Department, is hereby created.

Section 4. Mandate. The Department shall be the lead investment
promotion agency of the Philippines. It shall promote both foreign and domestic

investments.

It shall formulate and implement the Investments Strategy and Action
Plan of the country targeting both foreign and domestic investors.

It shall harmonize, rationalize, and prioritize in a Comprehensive
Investment Incentives Program, the grant of national tax and non-tax

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incentives for small, medium, and large scale investors, industries,
institutions, and corporations on the basis of criteria that are performance-
based, tightly-targeted, time-bound, and transparent.

The CIP shall be subject to approval of the President of the Philippines,
in the form of an executive order, upon the recommendation of the Secretary,
following deliberation by the Advisory Board.

The Department, in coordination with the Department of Interior and
Local Government (Local Government Academy), formulate and implement
programs, projects, and other activities for capacity-building, including
investments research, market and staff development, of local government units.

Section 5. The Secretary. The Secretary shall:

1. Serve as a Cabinet Member of the President, advise the President on
issuing executive orders, regulations, proclamations and other
issuances, the promulgation of which is expressly vested by law in the
President relative to matters under the jurisdiction of the Department;

2. Establish the policies and standards for the operation of the
Department pursuant to the approved programs of government;

3. Promulgate rules and regulations necessary to carry out department
objectives, policies, functions, plans, programs and projects;

4. Promulgate administrative issuances necessary for the efficient
administration of the offices under the Secretary and for proper
execution of the laws relative thereto. These issuances shall not
prescribe penalties for their violation, except when expressly
authorized by law;

5. Exercise disciplinary powers over officers and employees under the
Secretary in accordance with law, including their investigation and
the designation of a committee or officer to conduct such
investigation;

6. Appoint all officers and employees of the Department except those
whose appointments are vested in the President or in some other
appointing authority; Provided, However, that where the Department
is regionalized on a department-wide basis, the Secretary shall
appoint employees to positions in the second level in the regional
offices as defined in the Administrative Code of 1987;

7. Exercise jurisdiction over all bureaus, offices, agencies and
corporations under the Department as are provided by law, and in
accordance with the applicable relationships as specified in Chapters
7, 8, and 9 of the Administrative Code of 1987;

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8. Delegate authority to officers and employees under the Secretary’s
direction in accordance with the Administrative Code of 1987; and

9. Perform such other functioris as may be provided by law.

Section 6. Advisory Board. The Department shall have an Advisory
Board with whom the Secretary shall update and consult, every two months
and as needs arise, on investment policies and measures of the national
government. The Advisory Board shall also conduct public searches for and
nominate the managing commissioners and deputy commissioners of the
commissions of the Department that are provided in this Act.

‘The Secretary shall serve as co-chairperson of this Advisory Board made
up of have representatives of the following institutions and organizations:

. Department of Finance (as Presiding Chair)
. Department of Trade

. National Economic and Development Authority

. Commission on Higher Education

. Department of Science and Technology

. Fiscal Incentives Review Board

. Philippine Chamber of Commerce and Industry

8. Federation of Philippine Industries

9. Filipino-Chinese Chambers of Commerce and Industry
10. ‘Trade Union Congress of the Philippines

11. Associated Labor Unions

12. Association of Foundations

13. Caucus of Development NGO Networks

14. League of Cities

15. League of Municipalities

16. League of Governors

17. League of Barangays

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Section 7. Undersecretaries. The Secretary shall be assisted by three (3)
undersecretaries, who shall be appointed by the President upon the
recommendation of the Secretary: Provided, That two (2) of the
undersecretaries shall be career officers. In case of the vacancy of the post of
Secretary and to ensure continuity of operations, the senior career officer shall
automatically serve as Acting Secretary until such time as the President
appoints a new Secretary.

The Undersecretaries shall have these duties and responsibilities:
1. Advise and assist the Secretary in the formulation and
implementation of department objectives and policies;

2. Oversee all the operational activities of the department for which he
shall be responsible to the Secretary;

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3. Coordinate the programs and projects of the department and be
responsible for its economical, efficient and effective administration;

4, Serve as deputy to the Secretary in particular matters relating to the
operations of the department; and

5. Perform such other functions and duties as may be provided by law.

The specific areas of responsibility of each Undersecretary shall be
determined by the Secretary and expressly embodied in a Department Order.

Section 8. Assistant Secretaries. The Secretary shall be assisted by four
(4) assistant secretaries who shall be appointed by the President upon the
recommendation of the Secretary: Provided, that two (2) of the assistant
secretaries shall be career officers.

Section 9. Qualifications. No person shall be appointed Secretary,
Undersecretary, Managing Commissioner, Assistant Secretary, or Deputy
Commissioner of the Department unless he or she is a citizen and resident of
the Philippines, of good moral character, of proven integrity and with at least
seven (7) years of competence and expertise in any or a combination of the
following fields: corporate management, investment banking, managerial
finance, commercial law, and international trade.

The appointment of the Secretary shall be subject to confirmation by the
Commission on Appointments of Congress.

Every Undersecretary, Managing Commissioner, Assistant Secretary, and
Deputy Commissioner of the Department shall be appointed by the President of
the Philippines for a single, non-renewable and non-extendable term of four (4)
years, from a shortlist of three nominees from the Advisory Board.

Bureau Directors shall be chosen by the Secretary from among the
career executive service officials of the Department.

Section 10. Organization of the Department. The Department shall
have component offices made up of line commissions, line bureaus, attached
agencies, staff bureaus, program management offices, technical panels, and
special units. The Department may have regional and provincial offices in
areas where such offices are deemed necessary by the Secretary, after
consultation with the Advisory Board, Managing Commissioners, and Bureau
Directors.

The Department shall have an Executive Committee made up of
Secretary and all the Undersecretaries, Managing Commissioners, Assistant

Secretaries, Deputy Commissioners, and Bureau Directors.

Section 11. Line Commissions. The Department shall have the following
Line Commissions:

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1. Commission on Economic Zones and Freeports;
2. Commission on Development Areas and Industrial Estates;
3. Commission on Financial Markets Development; and

4. Commission on Local Government Investments.

Each Commission shall have a Managing Commissioner, with rank of
Undersecretary, and two Deputy Commissioners, with ranks of Assistant
Secretary. Each Commission shall function as a collegial and quasi-judicial
body.

The Managing Commissioner and Deputy Commissioner shall be
appointed by the President of the Philippines for a single, non-renewable and
non-extendable term of four (4) years, from a shortlist of three nominees from
the Advisory Board.

Section 12. Line Bureaus. The Department shall have the following Line
Bureaus:

. Public-Private Partnerships Bureau;
Regional Headquarters and Regional Operating Headquarters Bureau;
Retail Trade Promotion Bureau;

Expatriate Investors and Investors Visa Processing Bureau;

. Investor Services and Advisory Bureau; and

. Investments Academy

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Section 13. Attached Agencies. The following agencies are hereby
attached for administrative and policy coordination purposes:

1. Securities and Exchange Commission;
2. Cooperative Development Authori
3. Mindanao Development Authority.

Section 14. Staff Bureaus. The Department shall have the following staff
bureaus:

. Policy Research Bureau
Human Resources and Staff Development Bureau
. Administrative Services Bureau

. Financial Management Services Bureau

. Legal Services Bureau

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Section 15. Abolition of Agencies. The following agencies are hereby
abolished, and their powers and functions, applicable funds and
appropriations, records, equipment, property, and personnel transferred to the

Department:

1. Board of Investments;
2. Philippine Economic Zone Authority;

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3. Public-Private Partnerships Center;
4. Bases Conversion and Development Authority;

5. Clark Development Corporation;

6. Subic Bay Metropolitan Authority;

7. John Hay Management Corporation;

8. PHIVIDEC Industrial Authority;

9. Philippine Retirement Authority;

10. Poro Point Management Corporation;

11. Cagayan Economic Zone Authority;

12. Authority of the Freeport Area of Bataan;

13. Aurora Pacific Economic Zone and Freeport Authority;
14. Zamboanga City Special Economic Zone Authority;
15. Mindanao Development Authority

16. First Cavite Industrial Estate, Inc.;

17. Duty Free Philippines, Inc.

18. Batangas Land Company;

19. Pinagkaisa Realty Coporation;

20. Kamayan Realty Corporation;

21. GY Real Estate, Inc.

Section 16. Other Offices. The Secretary, by department order, shall
create the support services staff of the Commissions and may create other
offices, units, task forces, and ad hoc bodies within the Department as he/she
may deem necessary in the exigency of the service and to implement this Act.

Section 17. Transition Management and Organizational Streamlining.
The Secretary, in coordination and consultation with the Secretary of Finance
and the Secretary of Budget and Management, shall form, convene, and lead a
Transition Management and Organizational Streamlining Task Force to
implement the transfer of the powers and functions, applicable funds and
appropriations, records, equipment, property, and personnel transferred to the
Department within ninety (90) days from the effectivity of this Act.

The Task Force shall formulate and submit to the Secretary for approval,
the detailed functions, responsibilities, accountabilities, and staffing pattern of
the various component units of the Department.

Section 18. Joint Congressional Oversight Committee. — A Joint
Congressional Oversight Committee, herein referred to as the Oversight
Committee, shall be constituted in accordance with the provisions of this Act.

The Oversight Committee shall be composed of the respective
Chairpersons of the Committees on Economic Affairs, Trade & Industry, Ways
and Means, and Small Business & Entrepreneurship of the Senate and of the
House of Representatives and seven (7) additional members each from the
Senate and the House of Representatives appointed by the President of the
Senate and the Speaker of the House of Representatives, respectively; provided
that two of the additional members on each panel shall come from the

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minority of each chamber. The most senior among the Senators and
Representatives shall serve as Co-Chairpersons. The Oversight Committee shall
monitor and ensure the proper implementation of this Act in accordance with
the oversight functions of Congress.

Section 19. Appropriations. The appropriations for the current year of
the government agencies transferred to be Department shall be the initial
budget of the Department.

Section 20. Separability. - If any provision or part of this Act is declared
invalid or unconstitutional, the remaining parts or provisions not affected shall
continue to be in full force and effect.

Section 21. Repealing Clause. - All laws, executive orders, and
administrative orders, issuances, or parts thereof inconsistent with any
provision of this Act are hereby repealed or amended accordingly.

Section 22. Effectivity Clause. - This Act shall take effect fifteen (15)
days after its publication in the online version of the Official Gazette or in two
(2) newspapers of general circulation or with established internet website
presence.

Approved.

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