RA 7916: The Special Economic Zone Act of 1995

REPUBLIC ACT NO. 7916
(as amended by Republic Act No. 8748)

AN ACT PROVIDING FOR THE LEGAL FRAMEWORK AND MECHANISMS FOR THE CREATION, OPERATON, ADMINISTRATION, AND COORDINATION OF SPECIAL ECONOMIC ZONES IN THE PHILIPPINES, CREATING FOR THIS PURPOSE, THE PHILIPPINE ECONOMIC ZONE AUTHORITY (PEZA), AND FOR OTHER PURPOSES.
Be it enacted by the Senate and House of Representatives of the Philippines in Congress assembled:

CHAPTER I

PURPOSES AND OBJECTIVES: ESTABLISHMENT
AND NATURE OF SPECIAL ECONOMIC ZONES;
COORDINATION WITH OTHER SIMILAR SCHEMES

SEC. 1. Title. – This act shall be known and cited as "The Special Economic Zone Act of 1995."

SEC. 2. Declaration of Policy. – It is the declared policy of the government to translate into practical realities the following State policies and mandates in the 1987 Constitution, namely:

(a) "The State recognizes the indispensible role of the private sector, encourages private enterprise, and provides incentives to needed investments." (Sec. 20, Art II)

(b) "The State shall promote the preferential use of Filipino labor, domestic materials and locally produced goods and adopt measures that help make them competitive." (Sec. 12, Art XII)

In pursuance of these policies, the government shall actively encourage, promote, induce and accelerate a sound and balanced industrial, economic and social development of the country in order to provide jobs to the people specially those in the rural areas, increase their productivity and their individual and family income, and thereby improve the level and quality of their living condition 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.

SEC. 3. Purposes, Intents and Objectives. – It is the purpose, intent and objective of this Act:

(a) To establish the legal framework and mechanisms for the integration, coordination, planning and monitoring of special economic zones, industrial estates / parks, export processing zones and other economic zones;

(b) To transform selected areas in the country into highly developed agro industrial, industrial, commercial, tourist, banking, investment, and financial centers, where highly trained workers and efficient services will be available to commercial enterprises;

(c) To promote the flow of investors, both foreign and local, into special economic zones which would generate employment opportunities and establish backward and forward linkages among industries in and around the economic zones;

(d) To stimulate the repatriation of Filipino capital by providing attractive climate and incentives for business activity;

(e) To promote financial and industrial cooperation between the Philippines and industrialized countries through technology-intensive industries that will modernize the country’s industrial sector and improve productivity levels by utilizing new technological and managerial know-how; and

(f) To vest the special economic zones on certain areas thereof with the status of a separate customs territory within the framework of the Constitution and the national sovereignty and territorial integrity of the Philippines.

SEC. 4. Definition of Terms. – For purposes of this Act, the following definitions shall apply to the following terms:

(a) "Special Economic Zones (SEZ)" – hereinafter referred to as the ECOZONES, are selected areas with highly developed or which have the potential to be developed into agro-industrial, Industrial tourist/recreational, commercial, banking, investment and financial centers. An ECOZONE may contain any or all of the following: Industrial Estates (IEs), Export Processing Zones (EPZs), Free Trade Zones, and Tourist/Recreational Centers.

(b) "Industrial Estate (IE)" – refers to a tract of land subdivided and developed according to a comprehensive plan under a unified continuous management and with provisions for basic infrastructure and utilities, with or without pre-built standard factory buildings and community facilities for the use of the community of industries.

(c) "Export Processing Zone (EPZ)" – a specialized industrial estate located physically and/or administratively outside customs territory, predominantly oriented to export production. Enterprises located in export processing zones are allowed to import capital equipment and raw materials free from duties, taxes and other import restrictions.

(d)"Free Trade Zone" - an isolated policed area adjacent to a port of entry (as a seaport) and/or airport where imported goods may be unloaded for immediate transshipment or stored, repacked, sorted, mixed, or otherwise manipulated without being subject to import duties. However, movement of these imported goods from the free-trade area to a non-free-trade area in the country shall be subject to import duties.

Enterprises within the zone are granted preferential tax treatment and immigration laws are more lenient.

SEC. 5. Establishment of ECOZONES. – To ensure the viability and geographical dispersal of ECOZONES through a system of prioritization, the following areas are initially identified as ECOZONES, subject to the criteria specified in Section 6:

(a) So much as may be necessary of that portion of Morong, Hermosa, Dinalupihan, Orani, Samal, and Abucay in the Province of Bataan;

(b) So much as may be necessary of that portion of the municipalities of Ibaan, Rosario, Taysan, San Jose, San Juan, and cities of Lipa and Batangas;

(c) So much as may be necessary of that portion of the City of Cagayan de Oro in the Province of Misamis Oriental;

(d) So much as may be necessary of that portion of the City of Iligan in the Province of Lanao del Norte;

(e) So much as may be necessary of that portion of the Province of Saranggani;

(f) So much as may be necessary of that portion of the City of Laoag in the Province of Ilocos Norte;

(g) So much as may be necessary of that portion of Davao City and Samal Island in the Province of Davao del Norte;

(h) So much as may be necessary of that portion of Oroquieta City in the Province of Misamis Occidental;

(i) So much as may be necessary of that portion of Tubalan Cove, Malita in the Province of Davao del Sur;

(j) So much as may be necessary of that portion of Baler, Dinalungan and Casiguran including its territorial waters and islets and its immediate environs in the Province of Aurora;

(k) So much as may be necessary of that portion of cities of Naga and Iriga in the Province of Camarines Sur, Legaspi and Tabaco in the Province of Albay, and Sorsogon in the Province of Sorsogon;

(l) So much as may be necessary of that portion of Bataan Island in the Province of Batanes;

(m) So much as may be necessary of that portion of Lapu-lapu in the Island of Mactan, and the municipalities of Balamban and Pinamungahan and the cities of Cebu and Toledo and the Province of Cebu, including its territorial waters and islets and its immediate environs;

(n) So much as may be necessary of that portion of Tacloban City;

(o) So much as may be necessary of that portion of the Municipality of Barugo in the Province of Leyte;

(p) So much as may be necessary of that portion of the Municipality of Buenavista in the Province of Guimaras;

(q) So much as may be necessary of that portion of the municipalities of San Jose de Buenavista, Hamtic, Sibalon, and Culasi in the Province of Antique;
(r) So much as may be necessary of that portion of the municipalities of Catarman, Bobon and San Jose in the Province of Northern Samar, the Island of Samar;

(s) So much as may be necessary of that portion of the Municipality of Ternate and its immediate environs in the Province of Cavite;

(t) So much as may be necessary of that portion of Polloc, Parang in the Province of Maguindanao;

(u) So much as may be necessary of that portion of the Municipality of Boac in the Province of Marinduque;

(v) So much of may be necessary of that portion of the Municipality of Pitogo in the Province of Zamboanga del Sur;

(w) So much as may be necessary of that portion of Dipolog City-Manukan Corridor in the Province of Zamboanga del Norte;

(x) So much as may be necessary of that portion of Mambajao, Camiguin Province;

(y) So much as may be necessary of that portion of Infanta, Real, Polillo, Alabat, Atimonan, Mauban, Tiaong, Pagbilao, Mulanay, Tagkawayan, and Dingalan Bay in the Province of Quezon;

(z) So much as may be necessary of that portion of Butuan City and the Province of Agusan del Norte, including its territorial waters and islets and its immediate environs;

(aa) So much as may be necessary of that portion of Roxas City including its territorial waters and islets and its immediate environs in the Province of Capiz;

(bb) So much as may be necessary of that portion of San Jacinto, San Fabian, Mangaldan, Lingayen, Sual, Dagupan, Alaminos, Manaoag, Binmaley in the Province of Pangasinan;

(cc) So much as may be necessary of that portion of the autonomous region;

(dd) So much as may be necessary of that portion of Masinloc, Candelaria and Sta. Cruz in the Province of Zambales;

(ee)So much as may be necessary of that portion of the Palawan Island;

(ff) So much as may be necessary of that portion of General Santos City in South Cotabato and its immediate environs;
(gg) So much as may be necessary of that portion of Dumaguete City and Negros Oriental, including its territorial waters and islets and its immediate environs;

(hh)So much as may be necessary of that portion of the Province of Ilocos Sur;

(ii) So much as may be necessary of that portion of the Province of La Union;

(jj) So much as may be necessary of that portion of the Province of Laguna, including its territorial waters and its immediate environs;

(kk) So much as may be necessary of that portion of the Province of Rizal;

(ll) All existing export processing zones and government-owned industrial estates; and

(mm) Any private industrial estate which shall voluntarily apply for conversion into an ECOZONE.

These areas shall be developed through any of the following schemes:

i. Private initiative;

ii. Local government initiative with the assistance of the national government; and

iii. National government initiative.

The metes and bounds of each ECOZONE are to be delineated and more particularly described in a proclamation to be issued by the President of the Philippines, upon the recommendation of the Philippine Economic Zone Authority (PEZA), which shall be established under this Act, in coordination with the municipal and / or city council, National Land Use Coordinating Committee and / or the Regional Land Use Committee.

SEC. 6. Criteria for the Establishment of Other ECOZONES. – In addition to the ECOZONES identified in Section 5 of this Act, other areas may be established as ECOZONES in a proclamation to be issued by the President of the Philippines subject to the evaluation and recommendation of the PEZA, based on a detailed feasibility and engineering study which must conform to the following criteria:

(a) The proposed area must be identified as a regional growth center in the Medium-Term Philippine Development Plan or by the Regional Development Council;

(b) The existence of required infrastructure in the proposed ECOZONE, such as roads, railways, telephones, ports, airports, etc., and the suitability and capacity of the proposed site to absorb such improvements;

(c) The availability of water source and electric power supply for use of the ECOZONE;

(d) The extent of vacant lands available for industrial and commercial development and future expansion of the ECOZONE as well as of lands adjacent to the ECOZONE available for development of residential areas for the ECOZONE workers;

(e) The availability of skilled, semi-skilled and non-skilled trainable labor force in and around the ECOZONE;

(f) The area must have a significant incremental advantage over the existing economic zones and its potential profitability can be established;

(g) The area must be strategically located; and

(h) The area must be situated where controls can easily be established to curtail smuggling activities.

Other areas which do not meet the foregoing criteria may be established as ECOZONES: Provided, That the said area shall be developed only through local government and/or private sector initiative under any of the schemes allowed in Republic Act No. 6957 (the build-operate-transfer law), and without any financial exposure on the part of the national government: Provided, further, That the area can be easily secured to curtail smuggling activities: Provided, finally, That after five (5) years the area must have attained a substantial degree of development, the indicators of which shall be formulated by the PEZA.

SEC. 7. ECOZONE to be a Decentralized Agro-Industrial, Industrial, Commercial / Trading, Tourist, Investment and Financial Community. - Within the framework of the Constitution, the interest of national sovereignty and territorial integrity of the Republic, ECOZONE shall be developed, as much as possible, into a decentralized, self-reliant and self-sustaining industrial,commercial/trading, agro-industrial, tourist, banking, financial and investment center with minimum government intervention. Each ECOZONE shall be provided with transportation, telecommunications, and other facilities needed to generate linkage with industries and employment opportunities for its own inhabitants and those of nearby towns and cities.

The ECOZONE shall administer itself on economic, financial, industrial, tourism development and such other matters within the exclusive competence of the national government.

The ECOZONE may establish mutually beneficial economic relations with other entities within the country, or, subject to the administrative guidance of the Department of Foreign Affairs and/or the Department of Trade and Industry, with foreign entities or enterprises.

Foreign citizens and companies owned by non-Filipinos in whatever proportion may set up enterprises in the ECOZONE, either by themselves or in joint venture with Filipinos in any sector of industry, international trade and commerce within the ECOZONE. Their assets, profits and other legitimate interests shall be protected: Provided, That the ECOZONE through the PEZA may require a minimum investment for any ECOZONE enterprises in freely convertible currencies: Provided, further, That the new investment shall fall under the priorities, thrusts and limits provided for in the Act.

SEC. 8. ECOZONE to be Operated and Managed as Separate Customs Territory. – The ECOZONE shall be managed and operated by the PEZA as separate customs territory.

The PEZA is hereby vested with the authority to issue certificate of origin for products manufactured or processed in each ECOZONE in accordance with the prevailing rules or origin, and the pertinent regulations of the Department of Trade and Industry and/or the Department of Finance.

SEC. 9. Defense and Security. – The defense of the ECOZONE and the security of its perimeter fence shall be the responsibility of the national government in coordination with the PEZA. Military forces sent by the national government for the purpose of defense shall not interfere in the internal affairs of any of the ECOZONE and expenditure for these military forces shall be borne by the national government. The PEZA may provide and establish the ECOZONES’ internal security and firefighting forces.

SEC. 10. Immigration. – Any investor within the ECOZONE whose initial investment shall not be less than One Hundred Fifty Thousand Dollars ($150,000.00), his/her spouse and dependent children under twenty-one (21) years of age shall be granted permanent resident status within the ECOZONE. They shall have freedom of ingress and egress to and from the ECOZONE without any need of special authorization from the Bureau of Immigration.

The PEZA shall issue working visas renewable every two (2) years to foreign executives and other aliens, processing highly-technical skills which no Filipino within the ECOZONE possesses, as certified by the Department of Labor and Employment. The names of aliens granted permanent resident status and working visas by the PEZA shall be reported to the Bureau of Immigration within thirty (30) days after issuance thereof.

CHAPTER II

GOVERNING STRUCTURES
SEC. 11. The Philippine Economic Zone Authority (PEZA) Board. – There is hereby created a body corporate to be known as the Philippine Economic Zone Authority (PEZA) attached to the Department of Trade and Industry. The Board shall have a director general with the rank of department undersecretary who shall be appointed by the President. The director general shall be at least forty (40) years of age, 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.

"The director general shall be assisted by three (3) deputy directors general each for policy and planning, administration and operation, who shall be appointed by the PEZA Board, upon the recommendation of the director general. The deputy directors general shall be at least thirty-five (35) years old, with proven probity and integrity, and a degree holder in any of the following fields: economics, business, public administration, law, management or their equivalent."

"The Board shall be composed of thirteen (13) members as follows: the Secretary of the Department of Trade and Industry as Chairman, the Director General of the Philippine Economic Zone Authority as Vice-Chairman, the undersecretaries of the Department of Finance, the Department of Labor and Employment, the Department of Interior and Local Government, the Department of Environment and Natural Resources, the Department of Agriculture, the Department of Public Works and Highways, the Department of Science and Technology, the Department of Energy, the Deputy Director General of the National Economic and Development Authority, one (1) representative from the investors / business sector in the ECOZONE. In case of the unavailability of the Secretary of the Department of Trade and Industry to attend a particular board meeting, the Director General of PEZA shall act as Chairman."

The existing Export Processing Zone Authority (EPZA) created under Presidential Decree No. 66 shall evolve into the PEZA in accordance with the guidelines and regulations set forth in an executive order issued for this purpose.

Members of the Board shall receive a per diem of not less than the amount equivalent to the representation and transportation allowances of the members of the Board and / or as may be determined by the Department of Budget and Management: Provided, however, That per diems collected per month does not exceed the equivalent of four (4) meetings.

SEC. 12. Functions and Powers of PEZA Board. – The Philippine Economic Zone Authority (PEZA) Board shall have the following functions and powers:

(a) Set the general policies on the establishment and operations of the ECOZONES, industrial estates, export processing zones, free trade zones, and the like;

(b) Review proposals for the establishment of ECOZONES based on the set criteria under Section 6 and endorse to the President the establishment of the ECOZONES, industrial estates, export processing zones, free trade zones and the like. Thereafter, it shall facilitate and assist in the organization of said entities;

(c) Regulate and undertake the establishment, operation and maintenance of utilities, other services and infrastructure in the ECOZONE, such as heat, light and power, water supply, telecommunication, transport, toll roads and bridges, port services, etc., and to fix just, reasonable and competitive rates, charges and fees therefore;

(d) Approve the annual budget of the PEZA and the ECOZONE development plans;

(e) Issue rules and regulations to implement the provisions of this Act in so far as its power and functions are concerned;

(f) Exercise its powers and functions as provided for in this Act; and

(g) Render annual reports to the President and the Congress.

SEC. 13. General Powers and Functions of the Authority. – The PEZA shall have the following powers and functions:

(a) To operate, administer, manage and develop the ECOZONE according to the principles and provisions set forth in this Act;

(b) To register, regulate and supervise the enterprises in the ECOZONE in an efficient and decentralized manner;

(c) To coordinate with local government units and exercise general supervision over the development, plans, activities and operations of the ECOZONES, industrial estates, export processing zones, free trade zones, and the like;

(d) In coordination with local government units concerned and appropriate agencies, to construct, acquire, own, lease, operate and maintain on its own or through contract, franchise, license, bulk purchase from the private sector and build-operate-transfer scheme or joint venture, adequate facilities and infrastructure, such as light and power systems, water supply and distribution systems, telecommunication and transportation, buildings, structures, warehouses, roads, bridges, ports and other facilities for the operation and development of the ECOZONE;

(e) To create, operate and/or contract to operate such agencies and functional units or offices of the authority as it may deem necessary;

(f) To adopt, alter and use a corporate seal; make contracts, lease, own or otherwise dispose of personal or real property; sue and be sued; and otherwise carry out its duties and functions as provided for in this Act;

(g) To coordinate the formulation and preparation of the development plans of the different entities mentioned above;

(h) To coordinate with the National Economic Development Authority (NEDA), the Department of Trade and Industry (DTI), the Department of Science and Technology (DOST), and the local government units and appropriate government agencies for policy and program formulation and implementation; and

(i) To monitor and evaluate the development and requirements of entities in subsection (a) and recommend to the local government units or other appropriate authorities the location, incentives, basic services, utilities and infrastructure required or to be made available for said entities.

SEC. 14. Powers and Functions of the Director General. – The director general shall be the overall coordinator of the policies, plans and programs of the ECOZONES. As such, he shall provide overall supervision over and general direction to the development and operations of these ECOZONES. He shall determine the structure and the staffing pattern and personnel complement of the PEZA and establish regional offices, when necessary, subject to the approval of the PEZA Board.

In addition, he shall have the following specific powers and responsibilities:

(a) To safeguard all the lands, buildings, records, monies, credits and other properties and rights of the ECOZONES;

(b) To ensure that all revenues of the ECOZONE are collected and applied in accordance with its budget;

(c) To ensure that the investors/firms and employees of the ECOZONES are properly discharging their respective duties;

(d) To give such information and recommend such measures to the Board, as he shall deem advantageous to the ECOZONE;

(e) To submit to the Board, the ongoing and proposed projects, work and financial program, annual budget of receipts, and expenditures of the ECOZONE;

(f) To represent the ECOZONE in all its business matters and sign on its behalf after approval of the Board, all its bonds, borrowings, contracts, agreements and obligations made in accordance with this Act;

(g) To acquire jurisdiction, as he may deem proper, over the protests, complaints, and claims of the residents and enterprises in the ECOZONE concerning administrative matters;

(h) To recommend to the Board the grant, approval, refusal, amendment or termination of the ECOZONE franchises, licenses, permits, contracts, and agreements in accordance with the policies set by the Board;

(i) To require owners of houses, buildings or other structures constructed without the necessary permit whether constructed on public or private lands, to remove or demolish such houses, buildings, structures within sixty (60) days after notice and upon failure of such owner to remove or demolish such house, building our structure within said period, the director general or his authorized representative may summarily cause its removal or demolition at the expense of the owner, any existing law, decree, executive order and other issuances or part thereof to the contrary notwithstanding;

(j) To take such emergency measures as may be necessary to avoid fires, floods and mitigate the effects of storms and other natural or public calamities;

(k) To prepare and make out plans for the physical and economic development of the ECOZONE, including zoning and land subdivision, and issue such rules and regulations which shall be submitted to the Board for its approval; and

(l) To perform such other duties and exercises such powers as may be prescribed by the Board, and to implement the policies, rules and regulations set by the PEZA.

SEC. 15. Administration of Each ECOZONE. – Except for privately-owned, managed or operated ECOZONES, each ECOZONE shall be organized, administered, managed and operated by the ECOZONE executive committee composed of the following:

(a) The administrator who shall be appointed by the PEZA Board upon recommendation of the director general; and

(b) One (1) deputy administrator to be appointed by the Board upon recommendation of the director general.

An ECOZONE advisory body shall be created with the following members:

1. The president of the association of investors in the ECOZONE;

2. The governor of the province where the ECOZONE is located;

3. The mayor/s of the municipality/ies or city/ies where the ECOZONE is located;

4. The president of an accredited labor union in the ECOZONE;

5. The representative of the business sector in the periphery of the ECOZONE; and

6. The representative of the PEZA.

The ECOZONE advisory body shall have the following functions:

i. Advise the ECOZONE management on matters pertaining to policy initiatives; and

ii.Assist the ECOZONE management in setting problems arising between labor and any enterprise in the ECOZONE.

Privately-owned ECOZONES shall retain autonomy and independence but shall be monitored by the PEZA for the implementation of incentives and operations for adherence to the law.

SEC. 16. Personnel. – The PEZA Board of Directors shall provide for an organization and staff of officers and employees of the PEZA, and upon recommendation of the director general with the approval of the Secretary of the Department of Trade and Industry, appoint and fix the remunerations and other emoluments: Provided, That the Board shall have exclusive and final authority to promote, transfer, assign and reassign officers of the PEZA, any provision of existing law to the contrary notwithstanding: Provided, further, That the director general may carry out removal of such officers and employees.

All positions in the PEZA shall be governed by a compensation, position classification system and qualification standards approved by the director general with the concurrence of the Board of Directors based on a comprehensive job analysis and audit of actual duties and responsibilities. The compensation plan shall be comparable with the prevailing compensation plans in the Subic Bay Metropolitan Authority (SBMA), Clark Development Corporation (BCDA) and the private sector and shall be subject to the periodic review by the Board no more than once every two (2) years without prejudice to yearly merit reviews or increases based on productivity and profitability. The PEZA shall therefore be exempt from existing laws, rules and regulations on compensation, position classification and qualification standards. It shall however endeavor to make its systems conform as closely as possible with the principles under Republic Act No. 6758.

The PEZA officers and employees including all Members of the Board shall not engage directly or indirectly in partisan activities or take part in any election, except to vote.

No officer or employee of the PEZA subject to Civil Service laws and regulations shall be removed or suspended except for cause, as provided by law.

SEC. 17. Investigation and Inquiries. – Upon a written formal complaint made under oath, which on its face provides reasonable basis to believe that some anomaly or irregularity might have been committed, the PEZA or the administrator of the ECOZONE concerned, shall have the power to inquire into the conduct of firms or employees of the ECOZONE and to conduct investigations, and for that purpose may subpoena witnesses, administer oaths, and compel the production of books, papers, and other evidences: Provided, That to arrive at the truth, the investigator(s) may grant immunity from prosecution to any person whose testimony or whose possessions of documents or other evidence is necessary or convenient to determine the truth in any investigation conducted by him or under the authority of the PEZA or the administrator of the ECOZONE concerned.

SEC. 18. Prohibition Against Holding Any Other Office. – The director general, deputy director general, administrators, officials and staff or assistants of the PEZA shall not hold any other office or employment within or outside the PEZA during their tenure. They shall not, during their tenure, directly or indirectly, practice any profession, participate in any business, or be financially interested in any contract with, or in any franchise, or special privilege granted by the PEZA or national government, or any subdivision, agency, or instrumentality thereof, including any government-owned-controlled corporation, or its subsidiary.

SEC. 19. Disbursement of Funds. – No money shall be paid out of the funds of any ECOZONE except in pursuance of the budget as formulated and approved by the PEZA.

SEC. 20. Full Disclosure of Financial and Business Interests. – Every member of the Board of the PEZA, the director general, the deputy directors general, and their staff shall, upon assumption of office, make full disclosure of their financial and business Interests.




CHAPTER III

OPERATIONS WITHIN THE ECOZONE

SEC. 21. Development Strategy of the ECOZONE. - The strategy and priority of development of each ECOZONE established pursuant to this Act shall be formulated by the PEZA, in coordination with the Department of Trade and Industry and the National Economic and Development Authority; Provided, That such development strategy is consistent with the priorities of the national government as outlined in the medium-term Philippine development plan.

It shall be the policy of the government and the PEZA to encourage and provide Incentives and facilitate private sector participation in the construction and operation of public utilities and infrastructure in the ECOZONE, using any of the schemes allowed in Republic Act No. 6957 (the build-operate-transfer law).

SEC. 22. Survey of Resources. The PEZA shall, in coordination with appropriate authorities and neighboring cities and municipalities, immediately conduct a survey of the physical, natural assets and potentialities of the ECOZONE areas under its jurisdiction.

SEC. 23. Fiscal Incentives. – Business establishments operating within the ECOZONES shall be entitled to the fiscal incentives as provided for under Presidential Decree No. 66, the law creating the Export Processing Zone Authority, or those provided under Book VI of Executive Order No. 226, otherwise known as the Omnibus Investment Code of 1987.

Furthermore, tax credits for exporters using local materials as Inputs shall enjoy the same benefits provided for in the Export Development Act of 1994.

SEC. 24. Exemption from National and Local Taxes.- Except for real property taxes on land owned by developers, no taxes, local and national, shall be imposed on business establishments operating within the ECOZONE. In lieu thereof, five percent (5%) of the gross income earned by all business enterprises within the ECOZONE shall be paid and remitted as follows:

a. Three percent (3%) to the National Government;

b. Two percent (2%) which shall be directly remitted by the business establishments to the treasurer’s office of the municipality or city where the enterprise is located.

SEC. 25. Applicable National and Local Taxes. – All persons and services establishments in the ECOZONE shall be subject to national and local taxes under the National Internal Revenue Code and the Local Government Code.

SEC. 26. Domestic Sales. – Goods manufactured by an ECOZONE enterprise shall be made available for Immediate retail sales in the domestic market, subject to payment of corresponding taxes on the raw materials and other regulations that may be adopted by the Board of the PEZA.

However, in order to protect the domestic industry, there shall be a negative list of Industries that will be drawn up by the PEZA. Enterprises engaged in the industries included in the negative list shall not be allowed to sell their products locally. Said negative list shall be regularly updated by the PEZA.

The PEZA, in coordination with the Department of Trade and Industry and the Bureau of Customs, shall jointly issue the necessary implementing rules and guidelines for the effective Implementation of this section.

SEC. 27. Applicability of Banking Laws and Regulations. – Existing banking laws and Bangko Sentral ng Pilipinas (BSP) rules and regulations shall apply to banks and financial institutions to be established in the ECOZONE and to other ECOZONE-registered enterprises. Among other pertinent regulations, these include those governing foreign exchange and other current account transactions (trade and non-trade) local and foreign borrowings, foreign currency deposit units, offshore banking units and other financial institutions under the supervision of the BSP.

SEC. 28. After Tax Profits. – Without prior Bangkok Sentral approval, after tax profits and other earnings of foreign investments in enterprises in the ECOZONE may be remitted outward in the equivalent foreign exchange through any of the banks licensed by the Bangko Sentral ng Pilipinas in the ECOZONE: Provided, however, That such foreign investments in said enterprises have been previously registered with the Bangko Sentral.

SEC. 29. Eminent Domain. – The areas comprising an ECOZONE may be expanded or reduced when necessary. For this purpose, the government shall have the power to acquire, either by purchase, negotiation or condemnation proceedings, any private lands within or adjacent to the ECOZONE for:

a. Consolidation of lands for zone development purposes;

b. Acquisition of right of way to the ECOZONE; and

c. The protection of watershed areas and natural assets valuable to the prosperity of the ECOZONE.

If in the establishment of a publicly-owned ECOZONE, any person or group of persons who has been occupying a parcel of land within the Zone has to be evicted, the PEZA shall provide the person or group of persons concerned with proper disturbance compensation: Provided, however, That in the case of displaced agrarian reform beneficiaries, they shall be entitled to the benefits under the Comprehensive Agrarian Reform Law, including but not limited to Section 36 of Republic Act No. 3844, in addition to a homelot in the relocation site and preferential employment in the project being undertaken.

SEC. 30. Leases of Lands and Buildings. – Lands and buildings in each ECOZONE may be leased to foreign investors for a period not exceeding fifty (50) years renewable once for a period of not more than twenty-five (25) years, as provided for under Republic Act No. 7652, otherwise known as the Investors’ Lease Act. The leasehold right acquired under long-term contracts may be sold, transferred or assigned, subject to the conditions set forth under Republic Act No. 7652.

SEC. 31. Land Conversion. – Agricultural lands may be converted for residential, commercial, industrial and other non-agricultural purposes, subjects to the conditions set forth under Republic Act No. 6657 and other existing laws.

SEC. 32. Shipping and Shipping Register. – Private shipping and related business including private container terminals may operate freely in the ECOZONE, subject only to such minimum reasonable regulations of local application which the PEZA may prescribe.

The PEZA shall, in coordination with the Department of Transportation and Communications, maintain a shipping register for each ECOZONE as a business register of convenience for ocean-going vessels and issue related certification.

Ships of all sizes, descriptions and nationalities shall enjoy access to the ports of the ECOZONE, subject only to such reasonable requirement as may be prescribed by the PEZA In coordination with the appropriate agencies of the national government.

SEC. 33. Protection of Environment. - The PEZA, in coordination with the appropriate agencies, shall take concrete and appropriate steps and enact the proper measure for the protection of the local environment.

SEC. 34. Termination of Business. - Investors In the ECOZONE who desire to terminate business or operations shall comply with such requirements and procedures which the PEZA shall set, particularly those relating to the clearing of debts. The assets of the closed enterprise can be transferred and the funds con be remitted out of the ECOZONE subject to the rules, guidelines and procedures prescribed jointly by the Bangko Sentral ng Pilipinas, the Department of Finance and the PEZA.

SEC. 35. Registration of Business Enterprises. - Business enterprises within a designated ECOZONE shall register with the PEZA to avail of all incentives and benefits provided for in this Act.

SEC. 36. One Stop Shop Center. - The PEZA shall establish a one stop shop center for the purpose of facilitating the registration of new enterprises in the ECOZONE. Thus, all appropriate government agencies that are Involved In registering, licensing or issuing permits to investors shall assign their representatives to the ECOZONE to attend to Investor’s requirements.




CHAPTER IV

INDUSTRIAL HARMONY IN THE ECOZONES

SEC. 37. Labor and Management Relations. - Except as otherwise provided in this Act, labor and management relations in the ECOZONE shall be governed by the existing Labor Code of the Philippines. Employees and personnel in the ECOZONE enterprises shall receive salaries and benefits and shall enjoy working conditions not less than those provided under the Philippine Labor Code and other relevant laws, issuances, rules and regulations of the Philippine government and the Department of Labor and Employment.

SEC. 38. Promotion of Industrial Peace. - In the pursuit of Industrial harmony in the ECOZONE, a tripartite body composed of one (1) representative each from the Department of Labor and Employment, labor sector and business and industry sectors shall be created In order to formulate a mechanism under a social pact for the enhancement and preservation of industrial peace in the ECOZONE within thirty (30) days after the effectivity of this Act.

SEC. 39. Master Employment Contracts. - The PEZA, in coordination with the Department of Tabor and Employment, shall prescribe a master employment contract for all ECOZONE enterprise staff members and workers, the terms of which provide salaries and benefits not less than those provided under this Act, the Philippine Labor Code, as amended, and other relevant issuances of the national government.

SEC. 40. Percentage of Foreign Nationals. - Employment of foreign nationals hired by ECOZONE enterprises in a supervisory, technical or advisory capacity shall not exceed five percent (5%) of Its workforce without the express authorization of the Secretary of Labor and Employment.

SEC. 41. Migrant Worker. - The PEZA, in coordination with the Department of Labor and Employment, shall promulgate appropriate measures and programs leading to the expansion of the services of the ECOZONE to help the local governments of nearby areas meet the needs of the migrant workers.

SEC. 42. Incentive Scheme. - An additional deduction equivalent to one- half (1/2) of the value of training expenses incurred In developing skilled or unskilled labor or for managerial or other management development programs incurred by enterprises In the ECOZONE can be deducted from the national government's share of three percent (3%) as provided In Section 24.

The PEZA, the Department of Labor and Employment, and the Department of Finance shall jointly make a review of the incentive scheme provided In this section every two (2) years or when circumstances so warrant.

CHAPTER V

NATIONAL GOVERNMENT AND OTHER ENTITIES

SEC. 43. Relationship with the Regional Development Council. - The PEZA shall determine the development goals for the ECOZONE within the framework of national development plans, policies and goals, and the administrator shall, upon approval by the PEZA Board, submit the ECOZONE plans, programs and projects to the regional development council for inclusion in and as inputs to the overall regional development plan.

SEC. 44. Relationship with the Local Government Units. - Except as herein provided, the local government units comprising the ECOZONE shall retain their basic autonomy and identity. The cities shall be governed by their respective charters and the municipalities shall operate and function In accordance with Republic Act No. 7160, otherwise known as the Local Government Code of 1991.

SEC. 45. Relationship of PEZA to Privately-Owned Industrial Estates. – Privately-owned industrial estates shall retain their autonomy and independence and shall be monitored by the PEZA for the implementation of incentives.

SEC. 46. Transfer of Resources. - The relevant functions of the Board of Investments over industrial estates and agri-export processing estates shall be transferred to the PEZA. The resources of government-owned Industrial estates and similar bodies except the Bases Conversion Development Authority and those areas identified under Republic Act No. 7227, are hereby transferred to the PEZA as the holding agency. They are hereby detached from their mother agencies and attached to the PEZA for policy, program and operational supervision.

The Boards of the affected government-owned industrial estates shall be phased out and only the management level and an appropriate number of personnel shall be retained.

Government personnel whose services are not retained by the PEZA or any government office within the ECOZONE shall be entitled to separation pay and such retirement and other benefits they are entitled to under the laws then in force at the time of their separation: Provided, That in no case shall the separation pay be less than one and one-fourth (1 1/4) month of every year of service.

CHAPTER VI

MISCELLANEOUS PROVISIONS

SEC. 47. Appropriation. - Upon the effectivity of this Act, all funds of the former Export Processing Zone Authority (EPZA) shall be transferred to the newly-created Philippine Economic Zone Authority, Thereafter, any sum as may be necessary to augment its capital outlay shall be Included In the General Appropriations Act to be treated as an equity of the national government.

Additional funding shall come from the following:

(a) The annual subsidies, appropriations and/or other assets of the exports processing zone, and the industrial estates and other economic areas that have been absorbed/transferred to the PEZA as mandate in this Act;

(b) The proceeds from the rent of lands, buildings, and other properties of the ECOZONES concerned;

(c) The proceeds from fees, charges and other revenue-generatlng Instruments which the PEZA is authorized to impose and collect under this Act,

(d) The proceeds from bonds which the PEZA authorized to float both domestic and abroad; and

(e) The advance rentals, license fees, and other charges which the PEZA is authorized to impose under this Act and which an investor is willing to advance payment for.

SEC. 48. Applicability of National Laws. - National laws shall prevail vis-a- vis ECOZONE rules, regulations and standards, unless there is a clear intent in this Act or other Acts of Congress to vest the ECOZONE specific power and privileges not otherwise allowed under existing laws.

SEC. 49. Authority of the President to Advance Initial Funding.-- Subject to existing laws, the President of the Philippines is hereby authorized to advance out of the savings of the Office of the President such funds as may be necessary to effect the organization of an ECOZONE which shall be reimbursed by the PEZA at reasonable term and condition.

SEC. 50. Non-Applicability on Areas Covered by Republic Act. No. 7227. - This Act shall not be applicable to economic zones and areas already created or to be created under Republic Act No. 7227 or other special laws, and governed by authorities constituted pursuant thereto.

SEC. 51. Ipso-Facto Clause. - All privileges, benefits, advantages or exemptions granted to special economic zones under Republic Act. No. 7227, shall ipso-facto be accorded to special economic zones already created or to be created under this Act. The free port status shall not be vested upon new special economic zones.

SEC. 52. Separability Clause. - The provisions of this Act are hereby declared separable, and in the event one or more of such provisions or part thereof are declared unconstitutional, such declaration of unconstitutionality shall not affect the validity of the other provisions thereof.

SEC. 53. Interpretation / Construction. - The powers, authorities and functions that are vested In the Philippine Economic Zone Authority (PEZA) and the ECOZONES concerned are intended to establish decentralization of governmental functions and authority as well as an efficient and effective working relationship between the ECOZONE, the central government and the local government units.

SEC. 54. Repealing Clause. - All laws, acts, presidential decrees, executive orders, proclamations and / or administrative regulations which are inconsistent with the provisions of this Act, are hereby amended, modified, superseded or repealed accordingly.

SEC. 55. Implementing Rules and Regulations. - The Department of Trade and Industry, the National Economic and Development Authority, the Department of Finance, the Bureau of Customs, the Department of Agrarian Reform, the Department of Interior and local Government, the Philippine Economic Zone Authority, and the representatives from the technical staff of the Committee on Economic Affairs of both Houses of Congress shall formulate the implementing rules and regulations of this Act within ninety (90) days after its approval. Such rules and regulations shall take effect fifteen (15) days after their publication in a newspaper of general circulation in the Philippines.

SEC. 56. Transitory Provisions. - Prior to the effectivity of the implementing rules and regulations of this Act, the provisions of Presidential Decree No. 66, as amended, and its implementing rules and regulations shall remain in force.

SEC. 57. Effectivity- This Act shall take effect upon its approval.

Approved:

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New Environmental Planning Law upgrades qualification of standards for planners in government service

Recognizing the importance of environmental planning in nation building and development, the Professional Regulatory Board of Environmental Planning reiterates the provisions of the newly adopted "Environmental Planning Act of 2013" (R.A. No. 10587) in the appointment of positions requiring the knowledge, skills, competence and qualifications of registered and licensed environmental planners.

According to Board of Environmental Planning Resolution No. 03 series of 2014, Implementing Rules and Regulations of R.A. 10587, the Civil Service Commission shall set the qualification standards for environmental planners at various levels in government service, including government-owned and controlled corporations and other entities. After the lapse of five (5) years from the effectivity of the new law, only registered and licensed environmental planners shall be appointed to the position of heads and assistant heads of groups, departments, divisions in government offices, agencies, bureaus or instrumentalities including government-owned and controlled corporations, provinces, cities and municipalities, and other positions requiring the knowledge, skills, competence and qualifications of registered and licensed environmental planners.

"Appointments made in violation of the R.A. 10587 and its IRR shall be considered null and void", the Board said.

Moreover, the Board of Environmental Planning reiterates the prescribed period of three (3) years from the effectivity of R.A. 10587 to local government units who may continue to issue appointments to persons who are not registered and licensed environmental planners for the positions of national or local planning and development coordinators, or chiefs of local planning and development offices, only on a temporary status or acting capacity.

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RA 10587: Environmental Planning Act of 2013

REPUBLIC ACT No. 10587
AN ACT REGULATING THE PRACTICE OF ENVIRONMENTAL PLANNING, REPEALING FOR
THE PURPOSE PRESIDENTIAL DECREE NUMBERED ONE THOUSAND THREE HUNDRED
AND EIGHT, ENTITLED "LAW REGULATING THE ENVIRONMENTAL PLANNING PROFESSION IN THE PHILIPPINES", AND FOR OTHER PURPOSES

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

ARTICLE· I
GENERAL PROVISIONS

SECTION 1. Title. - This Act shall be known as the "Environmental Planning Act of 2013".

SEC. 2. Declaration of Policy. - The State recognizes the importance of environmental planning in nation-building and development. Hence, it shall develop and nurture competent, virtuous, productive and well-rounded professional environmental planners whose standards of practice! and service shall be excellent, world-class and globally competitive through honest, effective, relevant and credible licensure examinations
and through regulatory programs, measures and activities that foster their professional growth, social responsibility and development.

SEC. 3. Coverage of this Act. - This Act shall cover the following aspects of the practice of the profession:
(a) Examination, registration and licensure of environmental planners;
(b) Supervision, control and regulation of the practice of environmental planning;
(c) Development, upgrading and updating of the curriculum of the environmental planning profession; and ,
(d) Development and improvement of the professional competence and practice of environmental planners through, among others, continuing professional education and development.

SEC. 4. Definition of Terms. -

(a) Environmental planning, also known as urban and regional planning, city planning, town and country planning, andlor human settlements planning, refers to the multi-disciplinary art and science of. analyzing, specifying, clarifying, harmonizing, managing and regulating the use and development of land and water resources, in relation to their environs, for the development of sustainable communities and
ecosystems.

(b) Environmental planner refers to a person who is registered and licensed to practice environmental planning and who holds a valid Certificate of Registration and a valid Professional Identification Card from the :Board of Environmental Planning and the Professional Regulation Commission.

(c) Accredited Professional Organization (APO) refers to the duly integrated and accredited professional organization of environmental planners, of which there shall be only one as prescribed by Republic Act No. 8981, the Comprehensive Professional Code, and in Section 32 of this Act.

SEC. 5. Scope of Practice. - The practice of environmental planning, within the meaning and intent of this Act, shall embrace the following:

(a) Providing professional services in the form of technical consultation, rendering of technical advice, plan preparation, capacity building and monitoring and evaluation of implementation involving the following:

1. National, regional or local development and/or physical framework and comprehensive land·use plans;
2. Zoning and related ordinances, codes and other legal issuances for the development and management, preservation, conservation, rehabilitation, regulation and control of the environment, including all land, water, air and natural resources;
3. Planning and development of a barangay, municipality, city, province, region or any portion or combination thereof; and 4. Development of a site for a particular need or special purpose, such as economic or ecological zones; tourism development zones; and housing and other estate development
projects, including the creation of any other spatial arrangement of buildings, utilities, transport and communications;

(b) In relation to any of the activIties enumerated in paragraph (a), above, preparing the following studies:
1. Pre·feasibility, feasibility and other related concerns;
2. Environmental assessments; and
3. Institutional, administrative or legal systems;

(c) Curriculum and syllabi development in licensure examinations for environmental planners and teaching in academic institutions and conducting review courses in environmental planning;

(d) Serving as expert witness, resource person, lecturer, juror or arbitrator in hearings, competitions, exhibitions and other public fora; conduct of hearings, competitions, exhibits and other public fora;

(e) Ensuring compliance with environmental laws including the acquisition of regulatory permits. The Professional Regulatory Board, subject to approval of the Professional Regulation Commission, may add to, or exclude from, this section any activity or act of professional practice, or revise it as the need arises to conform to changes and new developments brought about by the latest trends in environmental planning; and

(f) Perform other acts or conduct other activities that may be determined by the Board, subject to approval by the Professional Regulation Commission in light of the trend of the practice of the profession.

ARTICLE II
PROFESSIONAL REGULATORY BOARD OF ENVIRONMENTAL PLANNING

SEC. 6. Professional Regulatory Board of Environmental Planning. - There is hereby created a Professional Regulatory Board of Environmental Planning, hereinafter referred to as the Board, which shall be composed of a Chairperson and two (2) Members under the administrative control and supervision of the Professional Regulation Commission, hereinafter referred to as the Commission. They shall be appointed by the
President of the Philippines from a list of three (3) recommendees for each position, ranked by the Commission from a list of five (5) nominees for each position, and- submitted by the APO of environmental planners.The new Board under this Act shall be constituted within six (6) months from the effectivity of this Act.

SEC. 7. Term of Office. - The Chairperson and the Members of the Board shall hold office for a term of three (3) years from the date of their appointment or until their successors shall have qualified and been appointed. They may be reappointed to their positions for another term of three (3) years immediately after the expiry of their terms: Provided, That the holding of such position shall not be for more than two (2) terms nor more than six (6) years, whichever is longer: Provided, further, That the first Board under this Act shall hold these terms of office: the Chairperson for three (3) years, the first Member for two (2) years, and the second Member for one (1) year: Provided, furthermore, That any appointee to a vacancy with an unexpired term shall only serve such period. The Chairperson and the Members shall take their oath of office before discharging the functions of their positions.

SEC. 8. Qualifications of Board Members.member of the Board shall, at the time of appointment, possess the following qualifications:
(a) A citizen and resident of the Philippines;
(b) Of good moral character and of sound mind;
(c) A holder of a Master's Degree in Environmental Planning or its equivalent;
(d) A registered and licensed enviromnental planner with a valid Certificate of Registration and a Professional
Identification Card and with at least seven (7) years of practice in environmental planning prior to his/her
appointment;
(e) Not a member of the faculty of any school, college or university where a regular academic Course or review course in environmental planning is offered, nor a member of a staff of reviewers in a review school or center and does not have any direct or indirect pecuniary interest in such an institution;
(f) A member in good standing but not an officer or trustee thereof of the APO; and
(g) Not convicted by a court of competent jurisdiction of an offense involving moral turpitude.

SEC. 9. Powers, Duties and Responsibilities of the Board. - The Board shall have the following specific powers, duties and responsibilities: (a) Prescribe and adopt the rules and regulations necessary to carry out the provisions of this Act;
(b) Supervise the registration, licensure and practice of environmental planning in the Philippines;
(c) Administer oaths in connection, with the implementation of this Act;
(d) Issue, suspend, revoke or reinstate Certificate of Registration for the practice of environmental planning;
(e) Adopt an official seal of the Board;
(f) Prepare the contents of licensure examination, score and rate the examination papers and submit the results thereof to the Commission;
(g) Adopt and promulgate a Code of Ethics :and a Code of Technical Standards issued by the APO;
(h) Assist the Commission on Higher Education (CHED) to ensure that all instruction and offering of environmental planning comply with the policies, standards and requirements of the course prescribed by the CHED or other authorized government offices in the areas, among others, of ,curriculum,
faculty, library and facilities;
(i) Adopt measures necessary for the enhancement of the profession;
(j) Investigate officially reported violations of this Act and its rules and regulations, Code of Ethics, Code of Technical Standards, policies and measures and for this purpose issue subpoena and subpoena duces tecum to secure the appearance of witnesses and submission of the documents: and other evidences necessary in connection with the performance of its functions;
(k) Seek the assistance of the Commission in the conduct of hearing or investigation of administrative cases filed before the Board;
(1) Promulgate decisions on such administrative cases;
(m) Discharge such other powers and duties that may affect professional, ethical and technological standards of the environmental planning profession in the Philippines; and
(n) Perform such other functions and responsibilities in accordance with the provisions of Republic Act No. 8981, otherwise known as the "Professional Regulation Commission (PRC) Modernization Act of 2000".

The policies, resolutions, bylaws and rules and regulations issued and promulgated by the Board shall be subject to review and approval by the Commission; however, the Board's decisions, resolutions or orders which are not interlocutory, rendered in an administrative case, shall be subject to review only on appeal.

SEC. 10. Compensation of the Board. - The Chairperson
and Members of the Board shall receive compensation and
allowances comparable to the compensation and allowances
received by the Chairpersons and Members of other existing
professional regulatory boards under the Commission as
provided for by the General Appropriations Act.
SEC. 1l. Administrative Supervision of the Board,
Custodian of its Records, Secretariat and Support Services.
- The Board shall be under the administrative sllpervision
of the Commission. All records of the Board, including
applications for examinations, and administrative and other
investigative hearings conducted by the Board shall be under
the custody of the Commission. The Commission shall
designate the Secretary of the Board and shall provide the
secretariat and other support services to implement the
provisions of this Act.
SEC. 12. Grounds for Disciplinary Action on Suspension
or Removal of the Chairperson/Members of the Board.
The President of the Philippines, upon the recommendation of
the Commission, after due process and administrative
investigation conducted by the Commission, may remove or
suspend a Chairperson or Member of the Board on any of the
following grounds:
(a) Gross negligence, incompetence or dishonesty in the
discharge of histher duty;
(b) Commission of any of the prohibited acts provided
in this Act and the offenses in the Revised Penal Code,
Republic Act No. 3019, otherwise known as the "Anti-Graft
and Corruption Practices Act", and other laws;
(c) Manipulation, tampering or rigging of the results of
the licensure examination for the practice of environmental
planning; and
(d) Unlawful disclosure of secret and confidential
information on the examination questions or other
administrative matters pertaining thereto prior to the conduct
thereof.
The Commission, in the conduct of the investigation, shall
be guided by Section 7(s) of Republic Act No. 898~, the Rules
on Administrative Investigation, and the applicable provisions
of the New Rules of Court.
SEC. 13. Annual Report. - The Board shall, at the
end of each calendar year, submit to the Commission a detailed
report of its activities and proceedings during the year,
embodying also such recommendations as it may deem proper
to promote the policies and objectives of this Act.
ARTICLE III
EXAMINATION AND REGISTRATION
SEC. 14. Registration Required. - Upon the effectivity
of this Act, no person shall practice or offer to practice
environmental planning in the Philippines without having
obtained from the Board and the Commission a Certificate of Registration and a Professional Identification Card or a
Temporary/Special Permit.
SEC. 15. Examination Required. - Unless provided
otherwise under this Act, all applicants for registration for the
practice of environmental planning shall be required to pass
the professional licensure examination as herein provided,
subject to the payment of fees prescribed by the Commission.
Examinations for the practice of environmental planning in
the Philippines shall be given by the Board at least once every
year in such places and dates as the Commission may
designate in accordance with the provisions of Republic Act
No. 898l.
SEC. 16. Rating in the Licensure E=mination. - To pass
the licensure examination, each person must obtain a weighted
average of not less than seventy per centum (70%) and a
rating of not less than flfty per centum (50%) in any
examination subject.
SEC. 17. Subjects of Examination. - The licensure
examination for environmental planners shall include, but shall
not be limited to, the following:
(a) Hlstory, concepts, theories and prinClples of
environmental planning;
(b) Environmental planning process, methodsltechniques
and strategies; and
(c) Environmental plan implementation, legal aspects
and administration.
These subject areas and syllabi shall include topics and
subtopics in' accordance with the syllabi or tables of
specifications of subjects for licensure examinations by the
Board m consultation with the academe and the APO. The
subject areas and syllabi may be revised as the need arises
to conform to changes and new developments brought about
by trends in the practice of environmental planning.
SEC. 18. Qualifications for Taking the E=mination.
Any person applying to take the licensure examination as herein provided shall establish to the satisfaction of the Board
that he/she has the following qualifications:
(a) A citizen of the Philippines or a for~ign citizen
whose country or State has a policy on reciprocity in the
practice of the profession;
(b) A holder of any of the following d~grees from
schools, colleges or universities duly recognized and accredited
by the CHED: . \.
1. A graduate in environmental planning, urban/city
and regional planning, or town and country planning or its
equivalent;
2. A Post-Graduate Diploma in Environment;al Planning,
city and regional planning or its equivalent, and with at least
one (1) year of on-the-job training as required herein;
3. A Bachelor's Degree in Environmental Planning, city
planning or urban and regional planning, or town and country
planning, or its equivalent, and with two (2) years of
on-the-job training as required herein;
4. A masters or doctorate degree in either architecture,
engineering, ecology, economics, geography, geology, public
administration, business administration, sociology, social
science, law, environmental science, envi:ronmental
management, development management, naturql resources
planning and development, and related discipline~ acceptable
to the Board, and with three (3) years of on-the-job training
as required herein: Provided, That a person falling under this
paragraph shall be allowed to take the licensure examination
only within the next five (5) years from the effectivity of
this Act; .
5. A bachelor's degree in architecture, e~gineering, econohlics, public administration, law, social! work and
community development or sociology and other related
disciplines acceptable to the Board and with five '(5) years of
on-the-job training as required herein: Provided, That a person
falling under this paragraph shall be allowed to take the
licensure examination only within the next five (5) years from
the effectivity of this Act; and
6. Incumbent holders of planning positions in the
national, regional or local government offices or agencies
including government-owned and -controlled corporations and
have been engaged in development planning functions
acceptable to the Board: Provided, That they are holders of
professional civil service ehgibility and they have undergone
at least eighty (80) hours of in-service training or distance
learning in developmental planmng from a government agency,
school or institution recognized by proper authorities: Provided,
further, That a person falling under this paragraph may be
allowed to take the licensure examination only within the next
five (5) years after the effectivity of thIS Act.
(c) Of good moral character; and
(d) Not convicted of an offense involving moral turpitude
by a court of competent jurisdIction.
The on-the-job training required in this section shall be
undertaken under the supervision of a registered and licensed
environmental planner or the applicant's immediate supervisor
in an agency or organization acceptable to the Board, which
is engaged or involved in environmental planning functions or
programs.
SEC. 19. Issuance of Certificate of Registration and
Professional Identification Card. - (a) A Certificate of
Registration shall be issued to those who are registered after
payment of fees prescribed by the CommIssion. It shall bear
the signatures of the Chairperson of the Commission and of
the Chairperson and Members of the Board, stamped with the
official seal of the Commission and of the Board, certifying that
the person named therein is entitled to the practice of the
profession, with all the privileges appurtenant thereto. Until
withdrawn, revoked or suspended in accordance with this Act, .
the Certificate of Registration shall remain in full force and
effect.
(b) A Professional Identification Card bearIng the
registration number and its validity and expiry dates duly
signed by the Chairperson of the Commission shall likewise
be issued to every registrant who has paid the prescribed fees,
and has submitted a certificate of membership in good standing
from the APO. The said card shall be renewed every three (3) years upon mandatory proof of completion of ¢ontinuing
professional education. "
SEC. 20. Refusal to Register. - The Board, shall not
register any successful applicant for registration with or
without licensure examination who has been:
(a) convicted of an offense involving moral turpitude by
a court of competent jurisdiction;
(b) found guilty of immoral or dishonorable Gonduct by
the Board;
(c) adjudged guilty for violation of the General Irstructions
to Examinees by the Board; and '
(d) declared of unsound mind by a court of competent
jurisdiction.
In refusing such registration, the Board shail give' the
applicant a written statement setting forth the reasors therefor
and shall file a copy thereof in its records.' '
SEC. 21. Revocation or Suspension of the Certificate of
Registration and Cancellation of Temporary/Special Permit.
- The Board shall have the power, upon notice an,d hearing,
to revoke or suspend the Certificate of Registration of a
registered and licensed environmental planner or to cancel a
Temporary/Special Permit granted to a foreign environmental
planner, for the same grounds enumerated in Sedtion 20 of
this Act, except paragraph (c) hereof, and any of tM following
grounds: '
(a) Violation of any provision of this Act, Implementing
Rules and Regulations, Code of Ethics, Code OD Technical
Standards for the practice of environmental planning, and of
policies and regulatory measures of the Board and/or the
Commission, and Code of Good . .Governance; i
(b) Perpetration or use of fraud in obtaini~g his/he;
Certificate of Registration, Professional Identification Card;
Temporary/Special Permit;
(c) Gross incompetence, negligence or ignorance in the
conduct of the profession resulting to death, injury of persons
and/or damage to property;
(d) Unjustified refusal to join or to remam a member
in good standing of the APO;
(e) Unjustified or unexplained neglect or failure to pay
the annual registration fees for five (5) consecutive years;
(1) Unjustified or unexplained non-renewal of the
Professional Identification Card after the lapse of five (5)-
consecutive years;
(g) Aiding or abetting the illegal practice of a
nonregistered and unlicensed environmental planner by, among
others, allowing him/her to use his/her Certificate of
Registration and/or Professional Identification Card or hislber
Temporary/Special Permit;
(h) Illegally practicing the profession during his/her
suspension from the practice thereof; and
(i) Addiction to a drug or alcohol abuse impairing
hislber ability to practice hislber profession or declared with
unsound mind by a court of competent jurisdiction;
The Board shall periodically evaluate the aforementioned
grounds and revise or add new ones as the need arises subject
to approval by the Commission in order to meet the trends
and developments in the profession.
SEC. 22. Filing of Charges. - Any person, firm or
association may file charges against any registrant in
accordance with the provisions of Section 21, or the Board may
investigate violations of any of the abovementioned provisions.
An affidavit-complaint shall be filed, together with the
affidavits of witnesses and other documentary evidence with ~
the Board through the Commission's Legal and Investigation
Office. The motu proprio action to conduct an investigation
shall be embodied in a formal charge to be signed by at least
a majority of the Members of the Board. The rules on
administrative investigation issued by the Commission shall
govern the hearing or investigation, subject to applicable provisions of this Act, Republic Act No. 8981 and the Rules
of Court.
SEC. 23. Reissuance of Revoked Certificate of
Registration, Replacement of Lost or Damaged Certificate of
Registration, Professional Identification Card or
Temporary/Special Permit. - The Board may, upon petition,
reinstate or reissue a revoked Certificate of Registration after
two (2) years from the effectivity of the revocation, which is
the date of surrender of the said certificate and/or the
Professional Identification Card to the Board a:nd/or the
Commission. The Board may not require the holdkr thereof
to take another licensure examination. The petitibner shall
prove to the Board that he/she has valid reasons to resume
the practice of hislher profession. For the grant of hislher
petition, the Board shall issue a Board Resolution subject to
approval by the Commission.
A duplicate copy of a lost Certificate of Registration,
Professional Identification Card or Temporary/Special Permit
may be reissued in accordance with rules thereon! and upon
payment of the prescribed fee therefor. : ,
ARTICLE IV
PRACTICE OF ENVIRONMENTAL PLANNING
SEC. 24. Vested Rights - Licensed Environmental
Planners Registered When This Law is Passed. - All
environmental planners who are already duly regi~tered with
the Board under Presidential Decree No. 1308 and are holders
of valid Professional Identification Cards iss~ed by the
Commission, and who are in good standing with the APO of
environmental planners at the effectivity of this Act shall be
deemed automatically registered under this Act.
Certificates of Registration and valid Professional
Identification Cards held by such persol)S in-zood standing shall
have the same force and effect as though issued after the
passage of this Act.
SEC. 25. Consulting Firms, Partnerships, C¢rporations,
Associations and Foundations Engaged in Environmental
Planning Practice. - A consulting firm, partnership, corporation, association or foundation may engage in the
practice of environmental planning in the Philippines:
Provided, That it complies with the following requirements:
(a) The consulting firm, partnership, corporation or
association applies for and is issued a Certificate of
Registration by the Board and the Commission to engage in
the practice of environmental planning in the Philippines:
Provided, That the majority of the partners of the partnership
are registered and licensed environmental planners: Provided,
further, That the majority of the Members of the Board of
Directors or Members of corporations shall be registered and
licensed environmental planners; and
(b) The practice of the consulting firm, partnership,
corporation or association in environmental planning shall be
carried out by duly registered and licensed environmental
planners.
SEC. 26. Use of Seal. - All registered and licensed
environmental planners shall obtain a seal of such design as
the Board shall authorize and direct: Provided, That the serial
number of the certificate issued by the Board shall be included
in the design of the seal. Plans, designs and programs prepared
by or under direct supervision of a registered and licensed
environmental planner shan be stamped with the said seal
during the life of the registrant's certificate, and it shan be
unlawful for anyone to stamp or seal any document with the
said seal after the certificate of the registrant named thereon
shall have expired or shall have been revoked, unless said
certificate shall have been renewed or reissued.
SEC. 27. Continuing Professional Education. - The
Board, in consultation with the academe and the APO, shall
prescribe guidelines in the implementation of its Continuing
Professional Education (CPE) programs, subject to the approval
of the Commission.
SEC. 28. Foreign Reciprocity. - A foreign citizen may
be allowed to take the licensure examination and may be given
a Certificate of Registration and Professional Identi.fi.cation Card
if helshe can prove that the country or State of which helshe
is a subject or citizen allows a Filipino environmental planner
to practice hislher profession within its territorial limits on the same basis as the subjects or citizens of such foreign State
or country.
SEC. 29. Special/Temporary Permits for Foreign
Environmental Planners. - The practice of foreign
environmental planners in the Philippines shall be limited to
natural persons only and shall be governed by the provisions
of Republic Act No. 8981, otherwise known as the "Professional
Regulation Commission (PRC) Modernization Act of 2000":
Provided, That any foreign national who has gained entry in
the Philippines to perform professional services as an
environmental planner or render such services or prepare or
produce such documents as are within the scope of practice
of environmental planners as set forth in this Act, such as,
but not limited to, being a consultant in foreign-funded or
assisted projects of the government or employed or engaged
by Filipino or foreign contractors or private firms, whether or
not the nomenclature of histher profession is specifically called
in histher country of nationality as environmental planner, but
who does not meet or wish to comply with the requirements
for admission to take the licensure examinations shall, before
assuming the duties, functions and responsibilities as
environmental planner or consultant, secure a
Temporary/Special Permit from the Board, subject to the
approval of the Commission and the Department of Labor and
Employment (DOLE), to practice his/her profession in
connection with the project to which he/she was commissioned:
Provided, That the following conditions are satisfied:
(a) That helshe is a citizen or subject or a country
which specifically permits Filipino professionals to practice
their profession within the territorial limits on the, same basis
as the subjects or citizens of such foreign count~y or State;
(b) That he/she is legally qualified to practice
environmental planning in histher own country, and that
his/her expertise is necessary and advantageous to the
Philippines, particularly in the aspects of technology transfer
and specialization;
(c) That he/she shall be required to work with a
Filipino counterpart, a natural person who is a registered and
licensed environmental planner, and professional services fees
and expenses of documentation pertaining to the project shall
be proportionately shared by both foreign and Filipino environmental planners, including liabilities and taxes due to
the Philippine government, if any, relative to hislher
participation therein, or professional services rendered to the
project in accordance with established rules and regulations;
and
(d) That helshe shall obtain an employment permit
from the DOLE: Provided, That the employment permit may
be issued to a non-resident alien or to the applicant-employer
after a determination by the Commission and the Board of
the non-availability of a person in the Philippines who is
competent, able and willing at the time of application to
perform the services for which the foreign expert is being
invited.
SEC. 30. Information Required on Plans. - The
environmental planner shall be required to indicate hislher
Certificate of Registration (CR), and/or PRC Identification Card,
APO Certificate of Membership and Professional Tax Receipt
(PTR) numbers, date and place of issuance and expiry on all
plans and other documents signed by himlher.
SEC. 31. Unlawful Practices Under this Act. - It shall
be unlawful for any person or group of persons to:
(a) offer or render planning services as defined in
Section 4 or within the scope of Section 5 of this Act when
helshe is not a registered and licensed environmental planner;
(b) cause, induce, encourage or coerce the preparation
of or implementation any plan that is not signed by a
registered and licensed environmental planner, when such plan
is so required by this Act to be signed by a registered and
licensed environmental planner;
(c) amend, revise, duplicate or make copies of plans,
designs, programs and other documents prepared, signed and
sealed by a registered-and licensed environmental planner
without hislher explicit and written consent; and
(d) sign hislher name, affix hislher seal or use any other
method of signature on plans, specifications or other documents
not actually prepared by himlber.
SEC. 32. Accredited Professional Organ-ization (APO)
of Environmental Planners. - All registered and licensed
environmental planners shall organize themselves into one (1)
national organization that is duly registered with the Securities
and Exchange Commission (SEC). The Board, subject to
approval by the Commission, shall accredit the said
organization as the one and only accredited national
organization of registered and licensed environmental planners.
All environmental planners whose names appear in the
Registry Book of Environmental Planners shall automatically
become members thereof and shall receive thereto all the
benefits and privileges upon payment of APO membership fees
and dues. Membership in other organizations of environmental
planners shall not be barred.
ARTICLE V
ENFORCEMENT OF THIS ACT AND
PENAL PROVISIONS
SEC. 33. Enforcement by Government Officials and
Officers of the Law. - It shall be the duty of all government
officials and duly constituted law officers of the national,
provincial, city or municipal government to assist the Board
and the Commission in enforcing the provisions, of this Act
and to cause the prosecution of any person violating the same.
SEC. 34. Positions in Government with Environmental
Planning Functions. - The Civil Service Commission (CSC)
shall create positions and set qualification standards for
environmental planners at various levels in government service,
including government-owned and -controlled corporations and
other entities. Mter the lapse of five (5) years from the
effectivity of this Act, only registered an'd licensed
environmental planne~s shall be appointed to the position of
heads and assistant heads of groups, departments, divisions
in government offices, agencies, bureaus or instrumentalities
_thOLe_of, including government-owned and -controlled
corporations, provinces, cities and municipalities, and such
other positions which require the knowledge, skills and
competence and qualifications of registered and licensed
environmental planners. Appointments made thereafter in
violation hereof shall be considered null and void.
SEC. 35. Civil Liability of Environmental Planners. -
The environmental planner in charge of the preparation of an
environmental plan and related documents, as well as other
members of the planning team involved in the preparation
thereof, may be held civilly liable in cases of serious,
large-scale 'or wholesale damage, failure or destruction of any
project subject of or covered by an environmental plan, that
result in significant adverse impact on affected stakeholders
or the concerned ecosystem, within a period of ten (10) years
from the time of implementation of such plan. These are
in cases where it is determined by a court of competent
jurisdiction that such damage, failure or destruction was
foreseeable and could have been anticipated, and are directly
caused by gross negligence on the part of such environmental
planner and/or the environmental planning team member or
members, or to highly deficient or inappropriate environmental
planning methods, strategies, tools or techniques at variance
with generally accepted environmental planning principles,
methods and standards.
The government or any affected stakeholder may bring
an action to enforce such liability within five (5) years from
the time the damage or destruction occurs.
SEC. 36. Penal Provisions. - Any person committing
any of the unlawful practices under Section 31 hereof and/or
any of the fgllowing acts shall, upon conviction, be sentenced
by imprisonment of not less than six (6) months nor more
than five (5) years or a fine of not less than One hundred
thousand pesos (phplOO,OOO.OO) nor more than Five hundred
thousand pesos (Php500,OOO.OO), or both, at the discretion of
the court:
(a) Engaging in the practice of environmental planning
in the Philippines without having been registered and licensed
or without having conformed to the provisions of this Act;
(b) Presenting or attempting to use as hislher OWI.\ th~ ..
Certificate of Registration and/or Professional Identification
Card of another registered and licensed environmental planner;
or a holder of a Temporary/Special Permit;
(c) Giving any false, forged or tampered evidence of any
kind to the Board, or impersonating any registered and licensed environmental planner or a natural person who is a
holder of a Temporary/Special Permit;
(d) Using a revoked or suspended Certificate of
Registrati{)n or an expired or unrenewed Professional
Identification Card or Temporary/Special Permit;.
(e) Using in connection with hislher name or otherwise
assuming, using or advertising any title or description tending
to convey the impression that he/she is a registered and
licensed environmental planner without holding a valid
Certificate of Registration and Professional Identification Card
or a valid Temporary/Special Permit;
(I) Implementing or causing the implementation of any
plan not prepared and signed by a registered and licensed
environmental planner; and
(g) Violating any of the provisions of this Act and the
rules and regulations thereof.
Any Filipino employer who hires foreign practitioners
without obtaining a special permit for the latter shall also be
held liable under this Act.
In case the offender is a corporation, partnership,
association, foundation or juridical person, th~ penalty .of
imprisonment shall be imposed on the registered 'and licensed
environmentel planner-in-charge jointly and solidarily with the
responsible professionals, as well as the controllfug officer or
officers thereof responsible for permitting or causing the
violation.
ARTICLE VI
TRANSITORY PROVISlONS
SEC. 37. Transitory Provision§., cc _. __
(a) Within a period of three (3) years from the effectivity
of this Act, local government units may continue to issue
appointments to persons who are not registered ,and licensed
environmental planners for the positions of national or local
planning and development coordinators, or Chiefs of local planning and development offices, only on a temporary status
or acting capacity.
(b) The incumbent Chairperson and Members of the
Board shall, in an interim capacity, continue to carry out their
functions under the provisions of this Act without need for new
appointments as Chairperson and Members thereof until the
first Board, created under this Act, shall have been constituted
or organized pursuant thereto.
ARTICLE VII
FINAL PROVISIONS
SEC. 38. Appropriations. - The Chairperson of the
Commission shall immediately include in its programs the
implementation of this Act, the funding of which shall be
included in the annual General Appropriations Act and
thereafter.
SEC. 39. Act Not Affecting Other Professions. - This
Act shall not affect or prevent the practice of any other
legally-recognized profession.
SEC. 40. Implementing Rules and Regulations. - The
Board, subject to approval of the Commission, shall prescribe,
promulgate and issue the implementing rules and regulations
of this Act, after consultation with the APO, other agencies
and concerned private organizations, within one hundred
twenty (120) days from the constitution of the Board.
SEC. 41. Separability Clause. - If any part or section
of this Act shall be declared unconstitutional, such declaration
shall not invalidate the other provisions hereof.
SEC. 42. Repealing Clause. - Presidential Decree
No. 1308 is hereby repealed. All other laws, orders, rules and
regulations or resolutions or parts thereof inconsistent with the
provisions of this Act are hereby repealed or amended
accordingly.
SEC. 43. Effectivity. - This Act shall take effect fllteen
(15) days following its publication in the Official Gazette or
in two (2) newspapers of general circulation in the Philippines.


This Act which is a consolidation of Senate Bill No. 3138
and House Bill No. 4692 was finally passed by the Senate and
the House of Representatives on February 4, 2013 and
February 5, 2013, respectively.

Approved: May 27, 2013

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