GUIDELINES ON STREAMLINING OF LGU SYSTEMS AND PROCEDURES ON BUSINESS ...

Republic of the Philippines

DEPARTMENT OF THE INTERIOR AND LOCAL GOVERNMENT

DILG-NAPOLCOM Center, EDSA corner Quezon Avenue, West Triangle, Quezon City

GUIDELINES ON STREAMLINING OF LGU SYSTEMS AND PROCEDURES ON BUSINESS AND NONBUSINESS-RELATED SERVICES FOR CITIES AND MUNICIPALITIES Reference Number: Date:

1. BACKGROUND

1.1 President Rodrigo Duterte's priority reform is "increasing the country's competitiveness and ease of doing business." This particular socio-economic agenda is also reiterated in the Philippine Development Plan 2017-2022 under the pillar of Malasakit (Enhancing the Social Fabric).

1.2 The Philippine Development Plan 2017-2022 ensures people-centered, clean, and efficient governance through seamless service delivery.

1.3 On May 2018, President Duterte signed into law the Ease of Doing Business and Efficient Government Service Delivery Act of 2018. It aims to simplify and expedite processes of putting up and running a business in the country.

1.4 Pursuant to Section 5 of Republic Act 11032, the Department of the Interior and Local Government (DILG) issued Memorandum Circular 2018-214 on Reengineering of LGU systems and procedures.

2. PURPOSE

2.1 To set standards in processing business and nonbusiness-related transactions of local government units (LGUs) as well as to provide guidelines in the streamlining of the relevant processes related thereto, consistent and in compliance with existing laws.

2.2 To promote simplification and inter-operability of government processes and strengthen efforts toward transparency.

3. LEGAL COMPLIANCE

3.1 Section 16 General Welfare and Section 17 Basic Services and Facilities of Republic Act 7160 otherwise known as the Local Government Code of 1991.

3.2 Republic Act No. 11032 dated 28 May 2018, "An Act Promoting Ease of Doing Business and Efficient Delivery of Government Services, Amending for the purpose Republic Act No. 9485, Otherwise known as the Anti-Red Tape Act of 2007."

3.3 ARTA Memorandum Circular No. 2020-02, "Issuance of Order of Automatic Approval or Automatic Extension for Pending Transactions beyond the Prescribed Processing Time of 3-7-20 Working Days"

3.4 DILG-ARTA Joint Memorandum Circular (JMC) No. 2019-01 dated 10 December 2019, "Guidelines on the Regulatory Reform for LGUs Pursuant to the Ease of Doing Business and Efficient Government Service Delivery(EODBEGSD) Act of 2018."

3.5 ARTA Memorandum Circular No. 2019-002-A dated 2 December 2019, "Guidelines on the Implementation of the Citizen's Charter in Compliance with Republic Act No. 11032, Otherwise Known as the `Ease of Doing Business and Efficient Government Service Delivery Act of 2018', and its Implementing Rules and Regulations (IRR)"

3.6 DILG Memorandum Circular No. 2019-177 dated 17 October 2019, "Guidelines in the Integration of the Issuance of Barangay Clearance in the Permitting Processes of Cities and Municipalities"

3.7 DILG-DTI-DICT Joint Memorandum Circular (JMC) No. 2016-01 dated 31 August 2016. "Revised Standards in Processing Business Permits and Licenses in all Cities and Municipalities"

3.8 DTI-CSC-ARTA Joint Memorandum Circular (JMC) No. 2019-001 dated 17 July 2019, "The Implementing Rules and Regulations of RA 11032 otherwise known as the Ease of Doing Business and Efficient Government Service Delivery Act of 2018."

3.9 DILG Memorandum Circular No. 2018-214 dated 27 December 2018, "Reengineering of LGU Systems and Procedures in Compliance to EODBEGSD Act of 2018."

3.10 DILG-DPWH-DTI-DICT Joint Memorandum Circular (JMC) No. 2018-01 dated 04 January 2018, "Guidelines in Streamlining the Issuance of Building Permits and Certificates of Occupancy."

3.11 DILG-DOF Joint Memorandum Circular (JMC) NO. 2019-01 dated 17 March 2019, " Guidelines for the Review, Adjustment, Setting, and/or Adoption of Reasonable Regulatory Fees and Charges of Local Government Units"

3.12 ARTA-DICT-DILG-DHSUD-DPWH-CAAP-DOH-FDA Joint Memorandum Circular No.: 01 s. 2020 dated July 23, 2020, "Streamline Guidelines for the Issuance of Permits, Licenses, and Certificates for the Construction of Shared Passive Telecommunications Tower Insfrastructure (PTTI).

3.13 SONA DIRECTIVE No. 2020-007, subject: Making Government Transactions Available Online.

4. SCOPE AND COVERAGE

This Memorandum Circular covers all Cities and Municipalities, LGU Department Offices, and DILG Regional and field offices, Lone Fire District Offices/ Fire Stations, and others concerned.

5. DEFINITION OF TERMS

The definition of terms used in this circular are based on DILG Memorandum Circular No. 2018-214 dated 27 December 2018, "Reengineering of LGU Systems and Procedures in Compliance to EODB-EGSD Act of 2018" and other related issuances as mentioned on this circular.

6. POLICY CONTENT AND GUIDELINES

Categorization of cities and municipalities business and nonbusiness-related transactions and processing time.

All Local Chief Executives are enjoined to adopt the following prescribed categorization and processing time of business and nonbusiness-related services and transactions:

Business Processing and Licensing Office (BPLO)

LIST OF TRANSACTION

S Application for Business Permit (New)

CATEGORIZATION OF TRANSACTIONS

Simple

MAXIMUM PROCESSING

TIME 2 days (JMC No. 2016-

01)

REQUIREMENTS

With Valid FSIC for Occupancy:

1. Accomplished

Unified Application

Form

2. Proof of business

registration,

incorporation, or

legal personality (e.i.

DTI/

SEC/

Cooperative

Development

Authority (CDA)

registration)

3. Basis for computing

taxes, fees, and

charges

4. Occupancy Permit, if

required by national

law, as post audit

requirement

5. Contract of Lease (if

Lessee)

Application for Business Permit (Renewal)

Simple

6. Fire

Safety

Maintenance Report

(FSMR) (if required)

7. Affidavit

of

Undertaking stating

that there are no

substantial changes

made on the

building/

establishment

(locations/operations

/area) from the time it

was issued with FSIC

for

Occupancy

Permit

(Note: Any violation upon validation inspection by the BFP will make the business permit deemed automatically REVOKED per Fire Code and its RIRR)

8. Receipt of payment of FSIC for Business Operation

9. A copy of Fire Insurance Policy

10. Location of business (Sketch/Map)

Additional requirements if transacted by a representative:

11. Authorization letter 12. Photocopy of valid

ID of representative

5 days

1 day (JMC No. 2016-

01)

Without valid FSIC for Occupancy

1. Same requirements with the above except Nos. 4 and 7

1. Accomplished Unified Application Form

Application of

Business Permit

for Shared Passive

Telecommunicatio

n

Tower

Infrastructure

(PTTI)

Simple

2. Basis for computing

taxes, fees, and

charges

(e.g.

business

capitalization)

3. Current/Valid FSIC

for

Business

Operations

4. Mayor's permit or Official Receipt from last year's payment of fees (optional, if no record of payment of fees is available)

5. Lease of Contract (if Lessee)

6. Fire

Safety

Maintenance Report

(FSMR) (if required)

7. Copy of Fire Insurance policy (if any)

Additional requirements IF transacted by a representative: 8. Photocopy of valid

ID of representative 9. Authorization Letter

2 days (together with Certificate of Use and Fire

Safety Inspection Certificate)

1. Unified Business

Permit Application

Form.

2. Certificate of Use

Application Form.

3. Certificate

of

Completion issued

by licensed architect

or civil engineer of

the project.

4. Copy of As-Built

Plans (if there is any

modification on the

submitted technical

documents)

5. Certificate of Final

Electrical lnspection

with valid PRC lDs

& PTRs of the

Electrical lnspector.

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