Republic of the Philippines
HOUSE OF REPRESENTATIVES,
Quezon City

EIGHTEENTH CONGRESS
First Regular Session
1252

HOUSE BILL NO.

Introduced by HON. LUIS RAYMUND “LRAY” F. VILLAFUERTE, JR.

EXPLANATORY NOTE

Camarines Sur (CamSur) is a first class province in Southern Tagalog. It is
the largest among the six provinces in the Bicol Region with a total land area of 5,481.6
square kilometers, roughly 39 percent of the region's land area and 1.83 percent of
the Philippines. The province is subdivided into four congressional districts, one
chartered city, one component city, 35 municipalities and 1,063 barangays and is
home to over 1.9 million people.

CamSur is one of the best economic performing provinces today. The
Philippine Chamber of Commerce and Industry (PCCI) awarded the Provincial
Government of Camarines Sur as Most Business Friendly for three consecutive years
or from 2004 to 2006. In 2007, the province moved from 39" poorest to 10" richest
Province in terms of income and equity’ while in 2009, it earned a Presidential Citation
for Best Practice for Creating a Business Enabling Environment, the only local
government unit in the country to be given such recognition. The province is also
proactive in developing policies supportive of inclusive development and job creation
In 2010, CamSur was the first local government unit to enact a Public-Private
Partnership ordinance.

"Commission on Audit report



In terms of agriculture, CamSur ranked first in achieving the highest rice
Production growth in the country in 2010. According to the Bureau of Agricultural
Statistics, the province became the 6" largest rice producer in 2011 from placing 12!
in 2008. In 2016, it’s ranking moved two notches up and became the 4" largest rice
producer in the Philippines. Such agricultural success implies the presence of
numerous favorable factors such as fertile land, good climate, abundant water supply,
experienced labor force, and the application of key agriculture-related technologies.

In the field of tourism, CamSur is hailed as the sports and adventure capital
tourism capital of the Philippines. In 2006, the province embarked on a mission to
develop its tourism industry and in only four years, it emerged as the number one
province in tourist arrivals in the country, surpassing Metro Manila and Cebu. In
2012, the province held its reign as the number one tourist destination in the
Philippines according to the Philippine Statistics Authority. In 2015, CamSur remains
the most visited province in Bicol? with over 2.06 milion tourist arrivals.

CamSur also leads in environmental awareness and protection policies. Its
various climate change adaption measures earned national attention. In 2013, the
province was recognized in the book, Climate Change Adaptation: Best Practices in
the Philippines, for CamSur's efforts to save the environment through the E/ Verde
Movement — a project aimed to rehabilitate denuded forests and plant 40M by year
2020. Moreover, CamSur is developing renewable energy generation projects,
including a 60 MV wind power and 10 MW solar power facilities that can supplement
the power requirements in the province.

This bill seeks to have the Municipalities of Pili and Milaor in Camarines
Sur declared as Special Economic Zone or the CAMSUR SPECIAL ECOZONE.

CAMSUR SPECIAL ECOZONE overcomes all the difficulties faced by other
areas that previously sought special economic zone declaration. Among its
qualifications, it is worth mentioning that CamSur already has two operational and

2 Tourism Research and Statistics Division, Department of Tourism, 2010
2 Per Philippine Statistics Authority, 2015


successful economic zones that created jobs, generated income, attracted
investments and engendered technology transfer for the province. This gives CamSur
a significant incremental advantage over other applicants as the proposed ecozone’s
profitability is already established. Moreover, CAMSUR SPECIAL ECOZONE strictly
meets all the following requisites for the establishment of economic zones under
Section 6 of Republic Act (RA) No. 7916 or the Philippine Economic Zone Authority
(PEZA) Law, as amended by RA 8748 or the Special Economic Zone Act:

(1) Existing Economic Zones —

a. IT PARK. The Camarines Sur Information Technology Park (CSTIP) is
the first IT Park in the country that is owned and managed by the Local
Government Unit (LGU), the province of Camarines Sur. It is the first IT
Park in the Bicol Region to be declared by the Philippine Economic Zone
Authority (PEZA) as a Special Economic Zone under Presidential
Proclamation No. 850 issued on 27 May 2005. The proclamation
resulted in a partnership with Sutherland Global Services Inc. — a
technology and analytics enabled Business Process Outsourcing (BPO)
enterprise delivering end-to-end integrated BPO solutions. As the 5"
largest BPO in the country, Sutherland culled talents from CamSur, From
an initial 300 seats, the facility has expanded to over 2,000 providing
employment to CamSur workforce.

The five-hectare park is located within the Provincial Capitol Complex in
Cadlan, Pili, Camarines Sur, Philippines. The CSITP's flagship
enterprise is also the first LGU-run digital animation center — CamSur
Animation Studio (CAS). Among the notable productions of CAS is the
first full-length Filipino digital animation film, “Dayo,” shown in 2008. It is
currently doing intemational projects including Hollywood animation
productions.

b. TOURISM ZONE. On 29 October 2009, Presidential Proclamation No.
1932 designated several parcels of land of the public domain situated
within the Capitol Complex in Cadlan, Pili and Maycatmon, Milaor,


Camarines Sur, as Tourism Economic Zone pursuant to RA 7916 as
amended. The tourism zone includes the CamSur Watersports Complex
(CWC) considered the “best wakeboard park in the world”, a 3,000 seat
capacity convention center, 500 rooms and cabins that can
accommodate 2,000 guests, a boat lake, lakeside massage facilities,
among others.

(2) Existing infrastructure. The province is accessible by air, rail, land and
has an advanced connectivity infrastructure.

a. Air. The proposed area to be declared as Special Economic Zone
(Provincial Capitol Complex of Camarines Sur) is a 5-minute ride
from the Naga Airport. In 2015, the National Economic and
Development Authority (NEDA) approved the development of the
airport. The Naga Airport Development Project, a PhP3.533B-
approved national project, involves the reorientation of the runway,
and construction of new landslide and airside facilities.

b. Rail. The proposed area to be declared as Special Economic Zone
can also be reached via Philippine National Railway system.
Currently, PNR trains are being upgraded and the national
government lodged PhP2.3B for the PNR North-South projects —
this development shalll also serve as one of the main transportation
systems for import and export of goods in CamSur.

c. Land. The proposed area to be declared as Special Economic Zone
is connected to network of good roads that crisscrosses the CamSur
countryside and interconnects the municipalities together. Several
bus companies regularly ply the Naga-Manila route, and the city is
the hub of transportation in the province as well as in the region.

Camarines Sur Expressway Project. In 2014, the Provincial
Government of Camarines Sur initiated the CamSur Expressway
Project and is now a priority PPP project with an estimated budget of

4


PhP2.251B. The tollway has an approximate length of 15.20
kilometers that will provide an alternative route to motorists who
travel as far as Mindanao in the South and vice versa, using and
passing through existing national road in CamSur particularly in Naga
City and Pili, the center of tourist activities in the proposed CamSur
Special Economic Zone.

d. Information Highway. The proposed CamSur Special EcoZone
where the Camarines Sur Information Technology Park is located
offers state-of-the-art connectivity infrastructure, with current
capacity of STM1 (77xE1 or 155mbps, expandable to 10GB transport
capacity. CamSur provides current and potential IT Park locators with
free client specific training to suit their requirements. The different
kinds of training offered in CSTIP include: (1) voice-related skills
(telephone handling, accent training, et al); (2) medical and legal
transcription; (3) accounting; (4) legal services; (5) English language
proficiency; (6) Japanese language proficiency; and (7) animation
(2D and 3D).

(3) Developed and vacant lands. With the availability of over 355 hectares of
land, the CamSur Special Economic Zone has the extent of developed and
vacant lands available for industrial and commercial development and future
expansion of the proposed ecozone as well as lands adjacent to the
ecozone available for development of residential areas for the ecozone
workers.

CamSur Capitol Complex. The CamSur Capitol Complex where the
proposed CamSur Special EcoZone is proposed to be located shall be the
region's center of development. As a mixed-use facility, it would
accommodate a variety of business and operations. The complex will allot:
(1) retail/commercial units — 13,019 sqm.; (2) hospital/medical services —
13,569 sqm; (3) community services — 1,500 sqm.; (4) multi-use theater —
5,102 sqm.; (5) university — 13,569 sqm.; (6) government offices — 10,418


sqm,; (7) BPO, IT and training centers — 31,064 sqm.; and (8) hotel — 7,000
sqm.

(4) Available sources. The CamSur Special EcoZone equally meets the power
requirement and water resources to supply to the proposed ecozone. For
electrical power, it has a direct feed from power station and an
uninterruptible standby power within the proposed ecozone.

As previously mentioned, the proposed ecozone has an existing state-of-
the-art fiber connectivity. Itis already served by 3 internet service providers:
(i) Philippine Long Distance Telecommunications (PLDT); (ii) Globe, and (ii)
Bayan Telecommunications (BayanTel).

(5) 24/7 Security. CamSur provides for 24/7 security within the proposed
ecozone which can easily curtail smuggling or any other illegal activities.

(6) Knowledge and Innovation Industry. The Camsur Special EcoZone
encourages all things innovative, from technology, agriculture, to
manufacturing. The proposed special economic zone envisions a startup-
friendly economic zone. It shall provide the necessary support to talented
entrepreneurs in terms of registration, incentives, technical assistance,
accreditation and assessment.

(7) Strategic location. CALABARZON (provinces of CAvite, LAguna,
BAtangas, Rizal, and QueZON), located in southern Luzon, is the second
most densely populated region. It contributed 17.36 percent to the country's
Gross Domestic Product. In 2013, GRDP increased by 6.13 percent
Agriculture, Hunting, Forestry and Fishing sector accounted for 6.14 percent
of the regional economy. It recorded a 3.82 percent increment in 2013.
Pursuant to this trend, economic growth is clearly developing outside Metro
Manila. As CamSur sits at the southernmost tip of Luzon, the proposed
special economic zone would logically the the next economic center of the
country.


(8) Available workforce. Investment in CamSur provides access to its vibrant
and skilled, semi-skilled and non-skilled trainable labor force. In 2015, the
labor force is estimated at 1.2 million people. In the next few years, CamSur
will experience a surge in its population of young workers. By 2020, the
human resource base in the province is expected to rise by 120,700; the

labor force is expected to expand by another 133,700 bringing the 2025
labor force to around 1.5 million.

In addition, CamSur provides immense savings on minimum wage that can
impact investor's operational and capitalization costs. To illustrate,
employees in non-agricultural sectors in CamSur are paid a minimum of
PhP260/USDS.78 for every eight hour work day — 44.21% cheaper than
the minimum wage in Metro Manila.

Pursuant to President Rodrigo Duterte's 10-point economic agenda, this bill
shall promote the countryside as alternative areas for investments. The CamSur
Special Ecozone is conceptualized as a self-sustaining, industrial, commercial
and investment center that will encourage economic growth, generate local
employment, increase productivity and income, and uplift the welfare of the
Bicolanos. Consequently, the declaration of CamSur Special Ecozone as a special

economic zone will help decongest Metro Manila by providing job opportunities in the
Bicol Region.

CamSur is gaining a strong momentum in the economic front and it has a
great potential of becoming a busy trade center in Asia once the special
economic zone is developed to its fullest. CamSur Ecozone shall be operated as
a separate customs territory ensuring free flow and movement of goods and
commodities in the area. This bill shall provide tax-based incentives for businesses
operating within its premises and shall also provide for non-tax benefits like exchange
Policies and grant of permanent resident status to investors.

The approval of this bill shall reinforce the precedent set by the Special
Economic Zone established in Bataan — it was the first official economic zone in
the Philippines through Republic Act No. 1969. The development of Bataan Economic



Zone (BEZ), however, stagnated in the 1990s. To put a halt to the decline of the BEZ
and allow the zone to fulfil its original mandate to become a catalyst for progress and
development in the region as well as create employment and livelihood opportunities
for the people, Congress passed the Freeport Area of Bataan Act (RA 9728), which
was enacted into law in October 2009. This Act converted BEZ into the Freeport Area
of Bataan (FAB), a special economic zone and Freeport with a dedicated authority,
the Authority of the Freeport Area of Bataan (AFAB).

Since the AFAB took over operations from the Bataan Export Processing Zone,
the number of locators has jumped nearly 236 percent — to 92 in 2014 from 39 in
2010. In 2012 and 2013, the FAB was recognized as the fastest growing freeport in
the country by the National Statistical Coordination Board. RA 9728 also boosted
Bataan investor interests and tourism capabilities. To illustrate, it generated nearly
PhP664 billion worth of investments in the first half of 2014. Amid continuous increase
in local and foreign investments, the number of jobs generated by projects in the
freeport has also risen to 18,543 in 2014 year from 12,777 in 2010.

Thus, it is the goal of Camarines Sur Special Economic Zone Act of 2016 to

replicate and improve on the success of FAB and pave more way to the country's
economic prosperity. The early approval of this bill is earnestly requested.

nA ha

Luis MUR LRAY” F. VILLAFUERTE, JR.


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

EIGHTEENTH CONGRESS
First Regular Session

1252
HOUSE BILL NO.

Introduced by HON. LUIS RAYMUND “LRAY” F. VILLAFUERTE, JR.

AN ACT
ESTABLISHING THE CAMARINES SUR SPECIAL ECONOMIC ZONE IN THE
PROVINCE OF CAMARINES SUR, CREATING FOR SUCH PURPOSE THE
CAMARINES SUR SPECIAL ECONOMIC ZONE AUTHOURITY,
APPROPRIATING FUNDS THEREFOR AND FOR OTHER PURPOSES

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 "Camarines Sur
Special Economic Zone Act of 2019".

SECTION 2. Declaration of Policy. — |t is hereby declared the policy of the State
to actively encourage, promote, induce and accelerate the sound and balanced
industrial, economic and social development of the country in order to provide jobs to
people, especially those in rural areas, increase their productivity and their individual
and family income, and thereby improve the level and quality of their living conditions
through the establishment, among others, of special economic zones in suitable and
strategic locations in the country and through measures that shall effectively attract
legitimate and productive foreign investments.

SECTION 3. Camarines Sur Special Economic Zone. — In pursuit of the
foregoing declared policy, a special economic zone in Camarines Sur to be known as
Camarines Sur Special Economic Zone or CamSur Special Ecozone, is hereby
established. The CamSur Ecozone shall cover the Municipalities of Pili and Milaor.

SECTION 4. Governing Principles. - CamSur Special Ecozone shall be
managed and operated under the following principles:


(a) Within the framework and limitations of the Constitution and applicable
provisions of the Local Government Code, CamSur Special Ecozone shall be
developed into a decentralized, self-reliant and self-sustaining industrial,
commercial/trading, agro-industrial tourist/recreational, banking, financial,
educational, knowledge-based innovation hub and investment center with the
corresponding residential areas;

(b) CamSur Special Ecozone shall continue to be provided with transportation,
telecommunications and other facilities needed to attract legitimate and
productive investments, generate linkage industries and employment
opportunities for the people of Camarines Sur and its neighboring towns and
cities;

(c) CamSur Special Ecozone may establish mutually beneficial economic
relations with other entities or enterprises within the country or, subject to the
administrative guidance of the Department of Foreign Affairs (DFA), and the
Department of Trade and Industry (DTI), with foreign entities or enterprises;

(a) Foreign nationals and companies owned by non-Filipinos in whatever
proportion may set up enterprises in the CamSur Special Ecozone, either by
themselves or in joint venture with Filipinos in any sector of industry,
international trade and commerce within the CamSur Special Ecozone:

(e) CamSur Special Ecozone shall be managed and operated as a separate
customs territory ensuring free flow or movement of goods and capital within,
into and out of its territory;

(f) CamSur Special Econzone may provide incentives such as tax and duty-free
importations of raw materials, capital and equipment to registered enterprises
located therein;

(g) CamSur Special Ecozone shall be developed as a global business center
designed to promote investment; it shall be the foremost economic hub in the
region;

(h) CamSur Special Ecozone shall attract, encourage, build medical centers with
a view towards medical tourism and medical research and development;

(i) The areas comprising the CamSur Special Ecozone may be expanded or
reduced when necessary. For this purpose, the Camarines Sur Special
Ecozone Authority, which will be created under this Act, in consultation with
the local government units (LGUs, shall have the power to acquire either by
purchase, negotiation, or condemnation proceedings, any private land within
or adjacent to the CamSur Special Ecozone for the following purposes: (i)


consolidation of lands for CamSur Special Ecozone development; (ii)
acquisition of right of way; and (ii) the protection of natural assets valuable to
the prosperity of CamSur Special Ecozone;

(j) CamSur Special Ecozone shall provide programs designed to reduce carbon
emissions and other related policies. Parks and nature trails shall be
developed to promote walking and the use of bicycles;

(k) Forest areas within and around the CamSur Special Ecozone shall be
proclaimed as a national park and will be covered by total log and mining ban;

(1) CamSur Special Ecozone shall develop a rain-saving facility to reduce water
consumption;

(m)CamSur Special Ecozone shall develop a global educational environment,
encourage the establishment of foreign language services and encourage
universities and colleges to locate in the area, to create and sustain a talent
pool;

(n) Goods manufactured by the CamSur Special Ecozone shall be made
available for immediate retail sale in the domestic market, subject to the
payment of corresponding taxes on raw materials and other regulations that
may be formulated by the Camarines Sur Special Economic Zone Authority,
together with PEZA, the Bangko Sentral ng Pilipinas (BSP), the Department
of Finance (DOF), the Bureau of Customs (BoC) and DTI in accordance with
the National Internal Revenue Code (NIRC) of 1997, as amended, and the
Tariff and Customs Code of the Philippines, as amended. However, in order
to protect the domestic industries, a negative list of industries shall be drawn
up and regularly updated by PEZA. Enterprises engaged in industries
included in the negative list shall not be allowed to sell their products locally;
and

(0) The Defense of CamSur Ecozone and the security of its perimeter fence shall
be the responsibility of the national government in coordination with the
Camarines Sur Special Economic Zone Authority and LGUs.

SECTION 5. Incentives. — Investors and business enterprises within CamSur
Ecozone shall be entitled to the following incentives:

(a) Taxation. Except for real property on land, no local and national taxes such
as income tax, excise tax and franchise tax shall be imposed on business
establishments operating within CamSur Ecozone. In lieu thereof, five percent
(5%) of the gross income shall be paid as follows:

(i) Two percent (2%) to the national government;


(i) One percent (1%) to the Province of Camarines Sur;

(ili) | One percent (1%) to the treasurer's office of the municipality or
city where the enterprise is located;

(iv) One percent (1%) to the Camarines Sur Special Economic Zone
Authority.

All persons and service establishment in the CamSur Ecozone shall be
‘subject to national and local taxes under the NIRC and Local Government
Code of 1991.

(b) Raw Materials Incentives. Every registered export-oriented enterprise shall
enjoy a tax credit equivalent to the internal revenue taxes and customs duties
paid on the supplies, raw materials and semi-manufactured products;
Provided, That the same are not sufficient in quantity, quality or are not
competitively priced which are used in the manufacture, processing or
production of its export products forming part thereof, exported directly and
indirectly by the registered export-oriented enterprise, based on the actual
taxes and duties paid for such materials/supplies/semi-manufactured
products by the registered enterprise; Provided, further, that this incentive
shall be waived if application for tax credit under this provision was not filed
within one year from the date of expiration of the final product.

(c) Fiscal incentives. Business establishments within the CamSur Special
Ecozone shall be entitled to the existing fiscal incentives as provided under
Presidential Decree No. 66 or the law creating the Export Processing Zone
Authority (EPZA), or those provided under Book IV of Executive Order No.
226 otherwise known as the Ominibus Investments Code of 1987, and
Republic Act No. 7916, otherwise known as the Special Economic Zone Act
1995 as amended by Republic Act No. 8748 (An Act Amending Republic Act
7916, otherwise known as the "Special Economic Zone Act of 1995").

(d) Resident status and visa. Any foreign investor who establishes a business
enterprise within CamSur Special Ecozone and who maintains a capital
investment of not less than One Hundred Fifty Thousand US Dollars
($150,000.00) shall be granted, along with his or her spouse, dependents and
unmarried children below twenty-one (21) years of age, a permanent resident
status within the Zone and freedom of ingress and egress to and from the
CamSur Ecozone without any need of any special authorization from the
Bureau of Immigration (Bl); Provided, That this provision shall be without
prejudice to any foreign national acquiring permanent residence status in the
Philippines in accordance with the applicable immigration, retirement and
other related laws

(e) Employment of foreign nationals. Subject to the provisions of Section 29 of
Commonwealth Act No. 613, as amended, a registered enterprise may
employ foreign nationals in supervisory or technical positions for a period not
exceeding ten (10) years from registration; Provided, That when the majority
of the capital stock of a registered enterprise is owned by foreign investors,
the position of president, treasurer and general manager or their equivalents
may be retained by foreign nationals beyond the set period herein and such


officer is the owner of stockholder owning at least 10 percent (10%) of the
outstanding capital stock of the registered enterprise and remains the owner
or maintains his/her stockholdings therein.

SECTION 6. Creation of CamSur Special Ecozone Authority. - A body
corporate to be known as the Camarines Sur Special Economic Zone Authority,
hereinafter referred to as the CamSur Special Ecozone Authority, is hereby created to
manage and operate CamSur Special Ecozone, in accordance with the provisions of
this Act. The corporate franchise shall expire in fifty (50) years, counted from the first
day of the fifth (5th) calendar year after the effectivity of this Act, unless otherwise
extended by Congress. It shall be organized within one hundred eighty (180) days
after the effectivity of this Act.

The CamSur Special Ecozone Authority shall maintain its principal office in the
Provincial Capitol Complex of Camarines Sur, but it may establish branches within the
Philippines as may be necessary for the proper conduct of its business.

SECTION 7. Powers and Functions of the CamSur Special Ecozone Authority.
-The CamSur Ecozone Authority shall have the following powers and functions:

(a) To operate, administer, manage Camsur Special Ecozone according to the
principles and provisions of this Act;

(b) To adopt, alter and use a corporate seal, to contract, lease, buy, sell, acquire,
own and/or otherwise dispose of movable or immovable as well as personal or
real property of whatever nature including but not limited to shares of stock or
Participation in private corporations or in limited partnerships, or in participation
in private corporations or in limited partnerships , or in joint ventures with limited
liability, bonds, precious metals in buliions, ingots and easily convertible foreign
exchange;

(c) To sue and be sued in order to carry out its duties, responsibilities, privileges,
powers and functions as granted and provided for in this Act, and to exercise
the power of eminent domain for public use and public purpose;

(d) To raise or borrow adequate and necessary funds from local or foreign sources
within the limitation provided by law, to finance its projects and programs under
this Act, and for that purpose, to issue bonds, promissory notes, and other
forms of securities, and to secure the same by guarantee, pledge, mortgage,
deed of trust or and assignment of all part of its property or asset;

(e) To recommend to the President the issuance of a proclamation to fix and delimit
the site of CamSur Ecozone;

(f) To issue certificates of origin for products manufactured or processed in
CamSur Ecozone in accordance with prevailing rules of origin, and the pertinent
regulations of DTI, and DOF;

(g) To approve, accept, accredit, and allow any local or foreign business, enterprise
or investment in CamSur Ecozone subject to such rules and regulations as


CamSur Ecozone Authority may promulgate from time to time in conformity with
the provisions of this Act and the limitations provided in the Constitution;

(h) To regulate and undertake the establishment, operation and maintenance of
utilities, services and infrastructure in CamSur Special Ecozone such as, but
not limited to, heat, light, and power, water supply, telecommunications,
transport, toll roads and bridges, and to fix just, reasonable, and competitive
rates, fares, charges and prices thereof;

(

To enter into Public-Private Partnership agreements under Republic Act No.
6957, as amended, or through a local ordinance, with the private sector, on any
or all utilities and infrastructure required or needed for the operation and
development of the CamSur Special Ecozone;

@

To operate on its own, either directly or through a license to other tourism-
related activities, including but not limited to games, amusements, nature parks,
recreational and sports facilities, hotels, resorts, entertainment establishments,
duty-free shops, casinos and golf courses;

(k) To establish and operate training centers for highly-skilled workers and IT
practitioners;

()) To protect, preserve and maintain and develop virgin forests beaches and coral
reefs and maintain the ecological balance within CamSur Special Ecozone. For
this purpose, the rules and regulations of the Department of Environment and
Natural Resources (DENR) and other government agencies involved shall be
implemented by the CamSur Special Ecozone Authority;

(m) To provide security for the CamSur Special Ecozone in coordination with the
national and local governments. For this purpose, the CamSur Special Ecozone
Authority may establish and maintain its security forces and firefighting
capability or hire others to provide the same. In the event that an assistance of
the military force is necessary, it shall not interfere in the internal affairs of the
CamSur Special Ecozone Authority except to provide the necessary security
and defense, and their expenses shall be borne by the national government;

(n) To create, operate and/or contract to operate such functional units or offices of
the CamSur Special Ecozone Authurity as it may deem necessary;

(0) To operate information and communications technology-related activities
including but not limited to startups, customer relationship management
services, software development, e-commerce platforms, mobile apps, and
online gaming services;

(P) To issue rules and regulations consistent with the provisions of this Act as may

be necessary to accomplish and implement its objectives and policies herein;
and


(q) To exercise such powers as may be essential, necessary or incidental to the
powers granted to it as well as those that shall enable it to carry out, implement,
and accomplish the purposes, objectives and policies of this Act.

SECTION 8. Board of Directors of the CamSur Ecozone Authority. — The
powers of the CamSur Ecozone Authority shall be vested in and exercised by a Board
of Directors, hereinafter referred to as the Board, which shall be composed of the
following;

(a) The Chairman who shall also act as the administrator of the CamSur Ecozone
Authority;
(b) A Vice Chairman who shall come from among the members of the Board;
(c) Members consisting of
i. The Governor of the Province of Camarines Sur (ex officio);
ii. The Congressional Representatives of the district included in the CamSur
Ecozone (ex officio);
The Mayors of the municipalities included in the CamSur Ecozone (ex
officio);
iv. One (1) representative from the local business sector;
v. One (1) representative from the foreign business sector; and
vi. Two (2) representatives of the workers/laborers in the CamSur Ecozone.

The governor, congressional representatives and the mayors shall serve as ex
officio members of the Board, whose term corresponds to their terms as elected
officials.

The Chairman and the members of the Board, except the ex officio members,
shall be appointed by the President of the Philippines to serve for a term of six (6)
years, unless sooner separated from service due to death, voluntary resignation or
removal for cause. In case of death, resignation or removal for cause, the replacement
shall serve only the unexpired portion of the term. The Vice Chairman shall be elected
from among the members of the Board.

Except for the representatives of the business and labor sectors, no person
shall be appointed by the President of the Philippines as a member of the Board unless
he is a Filipino citizen, of good moral character, of proven probity and integrity, and a
degree-holder in any of the following fields: economics, business, public
administration, law, management or their equivalent, and with at least ten (10) years
relevant working experience preferably in the field of management or public
administration.

For purposes of determining a quorum during the meeting of the Board, a
quorum shall be present despite the non-attendance of the appointed member of the
Board whenever the latter's duly authorized representative is present thereat, and
attends such meeting on the member's behalf.

The members of the Board, except the Chairman whose compensation shall be
determined by the Board, shall each receive per diem at a rate to be determined by
the Department of Budget and Management in accordance with existing rules and
regulations: Provided, however, That the total per diem collected each month shall not


exceed the equivalent per diem for four (4) meetings. Unless and until the President
of the Philippines has fixed a higher per diem for the members of the Board, such per
diem shall not be more than Ten Thousand Pesos (PhP10,000.00) for every Board
meeting.

SECTION 9. Powers and Duties of the Chairman. - The Chairman shall have
the following powers and duties:

(a) To direct and manage the affairs of the CamSur Special Ecozone Authority in
accordance with the policies of the Board;

(b) To establish the internal organization of the CamSur Special Ecozone Authority
under such conditions that the Board may prescribe;

(c) To submit an annual budget and necessary supplemental budget to the Board
for its approval:

(d) To submit within thirty (30) days after the close of each fiscal year an annual
report to the Board and such other reports as may be required:

(e) To submit to the Board for its approval policies, systems, procedures, rules and
regulations that are essential to the operation of the Camsur Special Ecozone
Authority;

(f) To create a mechanism in coordination with relevant agencies for the promotion
of industrial peace, the protection of the environment, and the advancement of
the quality of life in the CamSur Special Ecozone Authority; and

(9) To perform such other duties as may be assigned to him by the Board or which
are necessary or incidental to his office.

SECTION 10. Organization and Personnel. ~The Board shall provide for an
organization and staff of its officers and employees. Upon recommendation of the
Chairman, the Board shall appoint and fix the remuneration and other emoluments of
its officers and employees in accordance with existing laws on compensation and
position classification: Provided, That the Board shall have exclusive and final
authority to promote, transfer, assign or reassign officers of the CamSur Special
Ecozone Authority, any provision of existing law to the contrary notwithstanding:
Provided, further, That the Chairman may carry out removal of such officers and
employees.

The officers and employees of CamSur Special Ecozone Authority, including
all members of the Board, shall not engage directly or indirectly in partisan activities
nor take part in any election, except to vote.

No officer or employee of CamSur Special Ecozone Authority, subject to civil
service laws and regulations, shall be removed or suspended except for cause, as
provided by law.

SECTION 11. Resolution of labor disputes. - The right of labor to form unions
or associations shall be observed. Labor disputes shall be resolved through mediation,
Conciliation and such other modes of dispute resolution authorized by law.


SECTION 12. Exemptions. — The CamSur Special Ecozone Authority is
hereby exempted from the payment of alll taxes, fees, imposts, charges, costs, and
service fees in any court of administrative proceedings in which it may be a party.

The foregoing exemptions may, however, be wholly or partially lifted by the
President of the Philippines upon the recommendation of the Secretary of Finance,
not later than five (5) years from the effectivity of this Act, upon reasonable assessment
that the CamSur Ecozone Authority is financially stable to pay such taxes, customs
duties, fees and other charges after satisfying debt service requirements of the
CamSur Ecozone Authourity and of its projected capital and operating expenditures.

SECTION 13. Banking rules and regulations. - Existing banking laws and
tules/regulations of the BSP shall apply to banks and financial institutions to be
established in the CamSur Special Ecozone.

SECTION 14. Remittances. — In case of foreign investments, a registered
enterprise in CamSur Special Ecozone shall have the right to remit earnings from the
investment in the currency in which the investment was originally made and at the
exchange prevailing at the time of remittance, subject to the provisions of Section 74
of Republic Act No. 265, as amended.

SECTION 15. Ipso Facto Clause. - Sections 30 to 41 of Republic Act No.
7916, shall ipso facto apply to the CamSur Special Ecozone.

SECTION 16. Capitalization. - The Camsur Special Ecozone Authority shall
have an authorized capital stock of one billion (1,000,000,000) no par shares with a
minimum issue of Ten Pesos (P10.00) each, the majority shares of which shall be
subscribed and paid for by the National Government and the local government units
(LGUs) embracing the CamSur Special Ecozone. The board of directors of CamSur
Special Ecozone Authority may, with the written concurrence of the Secretary of
Finance, sell shares, representing not more than forty per centum (40%) of the capital
stack of CamSur Special Ecozone Authority to the general public under such policy as
the Board and the Secretary of Finance may determine. The National Government and
the LGUs shall, in no case, own less than sixty per centum (60%) of the total issued
and outstanding capital of the CamSur Special Ecozone Authority.

The amount necessary to subscribe and pay for the shares of the national
government to the capital stock of CamSur Special Ecozone Authority shall be
included in the annual General Appropriations Act. For LGUs, the funds shall be taken
from their internal revenue allotment and other local funds.

SECTION 17. Supervision. - CamSur Special Ecozone shall be under the
direct control and supervision of the Philippine Economic Zone Authority (PEZA) for
purposes of policy direction and coordination.

SECTION 18. Relationship with the Regional Development Council. - The
CamSur Special Ecozone Authority shall determine the development goals for
CamSur Special Ecozone within the framework of national development plans, policies
and goals. The Chairman shall, upon approval by the Board, submit the CamSur


Special Ecozone plans, programs and projects to the Regional Development Council
for inclusion and inputs to the overall regional development plan.

SECTION 19. Relationship with Local Government Units. - Except as
herein provided, LGUs comprising CamSur Special Ecozone shall retain their basic
autonomy and identity. The Municipalities of Pili and Mitaor shall operate and function
in accordance with the Local Government Code of 1991. In case of any conflict
between the CamSur Special Ecozone Authority and the Province of Camarines Sur
on matters affecting the CamSur Special Ecozone other than defense and security
matters, the decision of CamSur Special Ecozone Authority shall prevail.

SECTION 20. Injunctions, restraining Orders and other interlocutory
orders. The development of the CamSur Special Ecozone is a national government
Priority, and therefore, no injunctions, restraining orders and other interlocutory orders,
which seek to stop or interrupt the contract entered into or project undertaken by the
CamSur Special Ecozone Authority may be issued by any court of law or quasi-judicial
body except the Supreme Court of the Philippines.

SECTION 21. Interpretation/Construction. - The powers, authorities and
functions that are vested in CamSur Special Ecozone Authority are intended to
decentralize governmental functions and authority and promote an efficient and
effective working relationship between the CamSur Special Ecozone, the national
government, and LGUs.

SECTION 22. Auditing. - The Commission on Audit shall appoint a
representative who shall be a full time auditor of the CamSur Special Ecozone
Authority and assign such number of personnel as may be necessary to assist said
representative in the performance of his/her duties. The salaries and emoluments of
the assigned auditor and personnel shall be in accordance with pertinent laws, rules
and regulations.

SECTION 23. Implementing Rules and Regulations. -DTl, DOF, BIR, Bl,
DBM and the Department of Interior and Local Government (DILG) shall formulate the
implementing rules and regulations of this Act not later than thirty (30) days upon the
effectivity of this Act the necessary rules and regulations for its effective
implementation.

SECTION 24. Separability Clause. — If any section or part of this Act is held
unconstitutional or invalid, the other sections or provisions not otherwise affected shall
remain in full force and effect.

SECTION 25. Repealing Clause. — All laws, decrees, executive orders, rules
and regulations, issuances or any part thereof inconsistent with the provisions of this
Act, are hereby repealed, amended or modified accordingly.

SECTION 26. Effectivity. — This Act shall take effect fifteen (15) days after its
publication either in the Official Gazette or in at least two (2) national newspapers of
general circulation.


Approved,