Republic of the Philippines
SENATE OF THE PHILIPPINES
Pasay City
|
EIGHTEENTH CONGRESS Second Regular Session SENATE BILL No. ____ Introduced by HON. JUAN
MAKABAYAN _______________________________________________________________________ AN ACT TO ACCELERATE THE
DEVELOPMENT OF MINDANAO, PROVIDING FOR FULL AND OPEN
COMPETITION IN THE ECONOMY, COLLEGIAL RULE, IMMEDIATE
ACCOUNTABILITY AND EQUAL OPPORTUNITY IN LOCAL GOVERNANCE, AND REGIONAL
EMPOWERMENT WITH REGIONAL BUDGETING IN NATIONAL
GOVERNANCE |
EXPLANATORY NOTE
This bill seeks to accelerate
the development of Mindanao by providing for policy reforms related to
capital formation and business competition, structural reforms
concerning the election, organization and accountability of local government
units, and administrative reforms involving the devolution of major
decision-making powers to an integrated regional office coupled with regional
budgeting in the national government.
The economic policy reforms
intend to maximize the formation of capital, by making use of all available
capital, including foreign capital in addition to local capital. This is
implemented through the liberalization or lifting of restrictions on foreign
investments. The additional capital is seen to create new jobs from new or
expanded enterprises, to reduce consumer prices from increased supply of goods
and services, and to generate taxes from new or expanded business activities.
The lifting of restrictions on foreign
investments also promotes free and open competition in the economy. The entry
of new independent foreign players reduces the risk of cartelization by local
players, who heretofore had been legally protected from legitimate competition
by foreign players. The restriction of competition imposed by the law itself
has ironically enabled the proliferation of local monopolies and oligopolies.
Nonetheless, under this bill, the
liberalization of foreign investments will be subject to safeguards to protect
the basic securities of the State. These basic securities include the external
national security, internal national security, food security, water security,
energy security, environment security, resource security (natural, human,
industrial) and cyber security. The bill authorizes the President to establish
a Foreign Investment Council vested with authority to review, investigate,
mitigate risks, suspend or prohibit foreign investment transactions.
Furthermore, the lifting of
restrictions on foreign investments will be subject to the national interest.
The bill also authorizes the President to require reciprocity in foreign
investment transactions.
The
political structural reforms intend to diffuse political power over a
group of elected officials, instead of concentrating such power in one
individual. This is implemented by adopting the “council type LGU”
characterized by collegial rule, in lieu of the “mayor type LGU” characterized
by one-man rule. This is seen to provide for continuity of plans and programs,
systematically integrate law making with law implementation, and exact
immediate accountability on local chief executives through the expediency of a
“vote of no confidence.”
The
restructuring of local government units also promotes equal opportunity for
rich and poor candidates. This is implemented by shifting from “voting at
large” in one big district, to “voting by district” in multiple small
sub-districts.
By reducing the size of voting
districts, with one councilor for every sub-district, the relatively unknown
and underfunded candidates are given a reasonable chance against the “rich and
famous” candidates.
By apportioning the seats of councilors
among several sub-districts, more communities are assured of representation in
the council.
The
political administrative reforms intend to bring the national government
closer to the people of the regions. This is implemented by devolving major
decision-making powers to an integrated regional office headed by a cabinet
rank secretary.
This is further implemented by regional budgeting,
where the personnel, resources and budgets of existing regional administrative
offices of selected line departments are consolidated under the said office.
In this regard, the bill authorizes
the President to create by Executive Order a super region to cover the Mindanao
area, excluding the Bangsamoro region. The Mindanao regional office assumes
jurisdiction over the existing administrative offices of Region 9, Region 10,
Region 11, Region 12 and Region 13.
Republic of the Philippines
SENATE OF THE PHILIPPINES
Pasay City
|
EIGHTEENTH CONGRESS Second Regular Session SENATE BILL No. ____ Introduced by HON. JUAN
MAKABAYAN _______________________________________________________________________ AN ACT TO ACCELERATE THE
DEVELOPMENT OF MINDANAO, PROVIDING FOR FULL AND OPEN
COMPETITION IN THE ECONOMY, COLLEGIAL RULE, IMMEDIATE
ACCOUNTABILITY AND EQUAL OPPORTUNITY IN LOCAL GOVERNANCE, AND
REGIONAL EMPOWERMENT WITH REGIONAL BUDGETING IN
NATIONAL GOVERNANCE |
Be it
enacted by the Senate and the House of Representatives of the Philippines in Congress
assembled:
Section 1. Title.- This Act shall be known
as the “Mindanao Accelerated Development Act of 2021.”
Section 2. Declaration
of Policy.- It is the policy of the State to promote the accelerated
development of Mindanao. To this end, the State shall promote the formation of
capital to include foreign investments in addition to local investments; ensure
full and open competition in the economy; provide for collegial governance in
local government units; exact immediate accountability of local chief
executives; ensure equal opportunity among candidates in local elections; and
devolve major decision-making powers to an integrated regional office.
CAPITAL FORMATION /
FULL AND OPEN COMPETITION
Section 3. Omnibus Lifting of Nationality Requirements.- Except as otherwise provided in this Act, and subject to the
provisions of the Constitution, all local and foreign investors shall be
subject to the equal protection of the laws.
Unless otherwise provided in this Act,
all statutory laws and implementing rules and regulations that impose
nationality requirements on the ownership and management of property, including
the ownership of shares of stock of a corporation, to exercise a right or to
avail of a privilege, shall not be applicable in the Mindanao area covered by
the geographic areas and territorial jurisdiction of Administrative Regions 9,
10, 11, 12 and 13,[i]
but shall continue to be applicable in the geographic areas and territorial
jurisdiction of the Bangsamoro Autonomous Region for Muslim Mindanao (BARMM).
The exclusion from the application of
foreign investment restrictions shall cover only the areas covered by the
stated administrative regions. It shall not cover the areas covered by the
BARMM.
The exclusion of restrictions under this
Act shall not cover the exercise of a profession, which are governed by special
laws, and may be subject to reciprocity requirements.
The exclusion of restrictions provided
by this Act shall not cover the properties and activities subject to
nationality limitations under the Constitution.
The provisions of Article XII of the
1987 Constitution, and of Rep. Act. No. 8179, regarding the ownership of
private lands by foreign nationals, shall remain valid, unless otherwise
provided by law.
Section 4. Limitation
of Scope.- Except as otherwise provided in this Act, the omnibus
lifting of nationality requirements or foreign investment limitations shall not
apply to Micro Enterprises under Republic Act No.
9501, Small-Scale Mining under Republic Act No. 7076, and Public Lands under
Commonwealth Act No. 141.
Section 5. Foreign Investment Council.-
The President may in the national interest establish by executive order a
Foreign Investment Council[ii]
to protect the basic
securities of the State, which may be affected by foreign investment transactions in the
Mindanao area covered by this Act, excluding the areas under BARMM.
The basic securities of the State
include the external national security, internal national security, food
security, water security, energy security, environment security, resource
security (natural, human, industrial) and cyber security.
The Council may be vested with authority
to review, investigate, mitigate risks, suspend or prohibit foreign investment
transactions, to protect the basic securities of the State.
Section
6. Organization and Operation of the Council.-
Unless the President provides otherwise, the Council
shall be established, organized, mandated, empowered and tasked as provided in
this Section.
The Council
shall be composed of the following members or the designee of any such member:
(a) The Secretary of the Department of Justice;
(b) The
Secretary of the Department of National Defense;
(c) The Secretary of the Department of Interior and
Local Government;
(d) The Secretary of the Department of Agriculture;
(e) The Secretary of the Department of Environment
and Natural Resources;
(f) The Secretary of the Department of Energy;
(g) The Secretary of the Department of Labor and
Employment;
(h) The Secretary of the Department of Trade and
Industry;
(i) The Secretary of the Department of Information
and Communications Technology;
(j) The Director-General of the National Economic
Development Authority;
(k) The Governor of the Bangko Sentral ng Pilipinas;
(l) The Chairman of the Securities and Exchange
Commission;
(m) The Solicitor-General;
(n) The heads of any other executive department,
agency, or office, as the President determines appropriate, generally or on a
case-by-case basis.
The Secretary of the Department of Justice shall be
the Chairman of the Council. The Chairman of the Council shall have the
authority, exclusive of the heads of departments or agencies, to act, or
authorize others to act, on behalf of the Council, and to communicate on behalf
of the Council with the legislative branch of government and the public.
The resolutions of the Council shall be approved by
a majority vote of all its members.
The lead
agency or agencies (lead agency) shall have primary responsibility, on behalf
of the Council, for the review and investigation of a specific covered transaction.
The following
shall be the lead agency for the review and investigation of the particular
transaction indicated:
(a) The
Department of National Defense for any covered transaction that poses a risk to
defense or external security;
(b) The Department of National Defense for any
covered transaction that poses a risk to internal security; the Department of
Interior and Local Government as co-lead agency for any covered transaction
that poses a risk to internal security;
(c) The Department of Agriculture for any covered
transaction that poses a risk to food security;
(d) The Department of Environment and Natural
Resources for any covered transaction that poses a risk to water security;
(e) The Department of Environment and Natural
Resources for any covered transaction that poses a risk to natural resource
security;
(f) The Department of Environment and Natural
Resources for any covered transaction that poses a risk to environment
security;
(g) The Department of Energy for any covered
transaction that poses a risk to energy security;
(h) The Department of Labor and Employment for any
covered transaction that poses a risk to human resource security;
(i) The Department of Trade and Industry for any
covered transaction that poses a risk to industrial resource security;
(j) The Department of Information and Communications
Technology for any covered transaction that poses a risk to cyber security.
The Chairman of the Council shall designate the lead
agency or agencies whenever a covered transaction poses a risk to two or more
basic securities.
The Council, by a majority vote of all its members,
may suspend or prohibit a covered transaction if in the reasonable exercise of
its discretion it determines that such action is necessary to address the risk.
Any covered transaction report, relevant documentary
material or information, shall be confidential and exempt from disclosure. No
such report, material or information may be made public, except as may be
relevant to any administrative or judicial action or proceeding. Nothing in
this section shall be construed to prevent disclosure to the legislative branch
of government.
Section 7. International Reciprocity.-
The President may in the national interest require by executive order
international reciprocity with respect to foreign investment transactions in
the Mindanao area covered by this Act, excluding the areas under BARMM.
Reciprocity may be imposed on a specific industry, or two or more but not all
industries, or across all industries, at the discretion of the President.
Reciprocity may be applied to one foreign state, or two or more but not all
foreign states, or across all foreign states, at the discretion of the
President.
COLLEGIAL GOVERNANCE/
IMMEDIATE ACCOUNTABILITY/
EQUAL OPPORTUNITY
Section 8. Collegial Governance;
Immediate Accountability; Equal Opportunity.- The formation and organization
of provinces, cities, municipalities and barangays located in the
Mindanao are under this Act, excluding the areas under BARMM, shall be as
follows:
(a) The national and local government functions shall be delineated. In
case of conflict between the national interest and the local interest, the
national interest shall prevail.
(b) Local government powers shall be consolidated in cities and
municipalities. The city and municipality shall be the basic local government
units.
(c) The members of the city council and municipal council shall be elected
by district, with one councilor for every local
legislative district. They may be subject to recall upon petition of at least
twenty-five percent of the total number of registered voters in the district,
or by resolution of a majority of all the members of a preparatory recall
assembly comprised of all the barangay councilors of the district.
(d) The city mayor and municipal mayor shall be elected by majority vote of
all the members of the local council from among themselves. The mayors of cities and municipalities within the
territory of a province shall be the ex-officio members of the provincial
council. The provincial governor shall be
elected by majority vote of all the members of the provincial council from
among themselves.
(e) The council members of barangays within the territory of a city
or municipality shall be appointed by the mayor of the city or municipality,
from a list of at least three nominees for every vacancy prepared by
homeowners' associations, residential condominium corporations, and community associations,
based in the barangay. The Department of Interior and Local
Government may by implementing rules and regulations provide for the
registration and grant of legal personality to community associations of barangay
residents to promote local interest. The punong barangay
shall be elected by majority vote of all the members of the barangay
council from among themselves.
(f) The city mayor, municipal mayor, provincial governor and punong
barangay shall serve based on the trust and confidence of the local
council. They may be removed at any time for loss of confidence upon the vote
of least two-thirds of all the members of the local council.
(g) The term of office of the members of local councils shall be five
years. No member of any local council shall serve for more than three consecutive
terms.
Elections for city and municipal councilors shall be by party
voting. Ballots shall indicate not only the party's candidate for councilor,
but also the party's nominee for mayor. The voters shall vote for the candidate
and the nominee together. However, the party may change its nominee if the
party does not win a majority of the seats and joins a coalition government, or
the nominee does not win a seat in the council.
These provisions shall apply to local government officials elected on the
second Monday of May of 2025 and thereafter.
Section
9. Hybrid Elections.- All
votes cast for local government officials in the Mindanao area covered by this
Act, excluding the areas under BARMM, shall be counted or audited manually in
public at the polling place immediately after voting is finished, even if the
election process is automated.
These provisions shall apply to local government officials in the Mindanao
area covered by this Act, excluding the areas under BARMM, who are elected on
the second Monday of May of 2022 and thereafter.
DEVOLUTION OF MAJOR
DECISION-MAKING POWERS
Section 10. Mindanao
Regional Office.- The President may in the national interest create by executive
order a Mindanao Regional Office (MRO) to implement the devolution of major
decision-making powers. The MRO shall be vested with jurisdiction over the Mindanao area covering by the
geographic areas and territorial jurisdiction of Administrative Regions 9, 10,
11, 12 and 13, excluding the areas under BARMM.
The MRO shall be headed by a secretary of cabinet rank. The
President shall have control and supervision over the MRO as an agency of the
national government.
The creation of the MRO by the President shall not be deemed to
include the appropriation of public money or property, which is the sole
prerogative of Congress.
Unless otherwise provided or
limited by the President, the regional offices of the covered line departments
and their attached agencies in Administrative
Regions 9, 10, 11, 12 and 13, excluding the areas under BARMM, shall be
transferred to and placed under the control and supervision of the MRO, which
shall integrate their functions and consolidate their resources.
Unless otherwise directed by the
President, the line departments and their attached agencies covered by the
transfer shall include all existing departments and agencies, except those under the Department of National Defense,
Department of Interior and Local Government, Department of Foreign Affairs,
Department of Justice, Department of Finance, Department of Budget and
Management, National Economic Development Authority, and the Bangko Sentral ng
Pilipinas.
GENERAL PROVISIONS
Section 11. Interpretation.-
Nothing herein shall be construed to modify the requirements or otherwise
liberalize the issuance of working visas or investor's visas under the
immigration and investment laws, or of alien employment permits under the labor
laws.
Section 12. Rules and Regulations.-
The National Economic Development Authority (NEDA), in consultation with the
Securities and Exchange Commission (SEC), the Board of Investments (BOI), the
Philippine Economic Zone Authority (PEZA) and other government agencies
concerned, shall prepare and promulgate the rules and regulations to implement
the provisions related to foreign investments, within ninety (90) days after
the approval of this Act.
The respective government agencies
vested with authority to issue the implementing rules and regulations of the
various statutory laws governing foreign investments, shall within ninety (90)
days after the approval of this Act, prepare and promulgate the appropriate
implementing rules and regulations.
Section 13. Repeal.- All laws,
presidential decrees, executive orders, letters of instruction, proclamations,
rules and regulations, and other issuances, or any part thereof, which are
inconsistent with or contrary to the provisions of this Act, are hereby
repealed, amended or modified accordingly.
Section 14. Separability.- If, for
any reason or reasons, any part or parts of this Act shall be declared
unconstitutional or invalid by any competent court, other parts of this Act
shall be thereby shall continue to be in full force and effect.
Section 15. Effectivity.- This Act shall
take effect fifteen (15) days after its complete publication in the Official
Gazette, or in at least two (2) national newspapers of general circulation.
Approved:
HON. JUAN MAKABAYAN
Senator
[i] See
Rep. Act No. 7903, known as the Zamboanga City Special Economic Zone Act of
1995, Sec. 4(c) & (i). See Rep. Act No. 7922, known as the Cagayan Special
Economic Zone Act of 1995, Sec. 6(c). See Rep. Act No. 9490, known as the
Aurora Special Economic Zone Act of 2007, Sec. 4(d).
[ii] See
US Defense Production Act of 1950, as amended by FINSA, Section 721 (50 U.S.C.
App. 2170). Executive Order No. 11858 (as amended by Executive Order No.
13456), re Foreign Investment in the United States.
No comments:
Post a Comment