ORDINANCE NO: 2023-527 Sponsored by: Committee on Laws, Rules and Policy Formulations AN ORDINANCE INSTITUTIONALIZING THE BUY LOCAL ADVOCACY AND ENJOINING ALL CONCERNED ESTABLISHMENTS IN PAGADIAN CITY TO APPORTION A DISPLAY AREA FOR LOCALLY PRODUCED GOODS AND SERVICES AS WELL AS STRENGTHENING THE PASALUBONG CENTERS IN THE CITY. WHEREAS, Article II, Section 20 of the 1987 Constitution provides that the State recognizes the indispensable role of the private sector, encourages private enterprise, and provides incentives to needed investments; WHEREAS, Republic Act No. 9501 or the Magna Carta for Micro, Small and Medium Enterprises (MSMEs) recognizes that MSMEs have the potential for more employment generation and economic growth and therefore can help provide a self- sufficient industrial foundation for the country, and thus declared the policy of the State to promote, support, strengthen and encourage the growth and development of MSMEs in all productive sectors of the economy particularly rural/agri-based enterprises; WHEREAS, Section 4 of Republic Act No. 9501 or the Magna Carta for MSMEs provide that eligible MSMEs shall be entitled to a share of at least Ten Percent (10%) of total procurement value of goods and services supplied to the Government, its bureaus, offices and agencies annually; WHEREAS, the Buy Local is an advocacy campaign introduced by the Department of Trade and Industry that aims to support local businesses of MSMEs under the "new normal" amid the COVID-19 pandemic; WHEREAS, the supermarkets, malls, airports, seaports, bus terminals, hotels, restaurants, tourism sites and lodging houses, as well as the city and barangay halls, among others, are at the forefront in the promotion of local products in the City; WHEREAS, it is the incumbent duty of the Local Government Unit to formulate local laws, rules, policies and regulations that will address the distinct needs of its MSEs by helping them promote their products and services and thereby expand their market access; NOW, THEREFORE, be it ORDAINED by the Sangguniang Panlungsod of Pagadian City in session duly assembled, to enact: SECTION 1. Short Title. This Ordinance shall be known as the "INSTITUTIONALIZATION OF BUY LOCAL ADVOCACY AND THE ESTABLISHMENT OF LOCALIZED PASALUBONG CENTERS;" SECTION 2. Authorization. The City of Pagadian is hereby authorized to utilize at least ten percent (10%) of its Approved Annual Procurement Plan (APP) for the purchase of locally produced products and services of MSMEs. SECTION 3. Definition of Terms. As used in this Ordinance, the following terms shall mean: Locally-produced goods and services - These are food and non-food products and services made/provided in Pagadian City. MSME - Micro, Small and Medium Enterprise, including cooperatives, rural improvement clubs, associations and existing businesses without registrations, with a capitalization not exceeding Php100 Million; has an existing product, food or non-food, or has commenced operation but is in the process of developing its product. Pasalubong Centers - refers to the place established and operated by the LGU where some locally produced products are displayed and made available for sale to customers. Rural/agri-based Enterprises - businesses that are into: agricultural production; and/or, processing agricultural produce/raw materials into finished goods; Concerned Establishments - supermarkets, malls, airports, seaports, bus terminals, hotels, restaurants, tourism sites and lodging houses, as well as the city and barangay halls, among others, that are at the forefront in the promotion of local products in the City. SECTION 4. Coverage and Eligibility for Assistance. To qualify under this Ordinance, businesses must be: all manufacturing, processing, and/or production of agricultural produce and provision of services which are duly registered with the appropriate agencies as presently provided by law (DTI, SEC, CDA or DOLE) and have the requisite Mayor's permit, including other statutory registrations; One Hundred Percent (100%) owned, capitalized by Filipino citizens, whether single proprietorship or partnership or cooperative. If the enterprise is a juridical entity, at least Sixty Percent (60%) of its capital or outstanding stock must be owned by a Filipino citizen residing in Pagadian City; and a business activity within the major sectors of the economy, namely; industry, trade, services, including the operation of tourism-related establishments, and rural/agri-based enterprises. SECTION 5. MSME Registry. Within three (3) months after the effectivity of this Ordinance, the Technology and Livelihood Development Office (TLDO), in coordination with the Negosyo Center in Pagadian City and all barangays, shall submit to the City Mayor and the Sangguniang Panlungsod a complete list of all MSMEs eligible to avail the benefits of this Ordinance. The list shall be known as the "MSME Registry" and shall serve as the basis of the procurement of locally-produced goods and services. The MSME Registry shall be posted in the official website of the City of Pagadian and shall be subject to validation by the Office of the City Mayor, in coordination with the Department of Trade and Industry and various CSOs in the City within 3 months from posting thereof. The registry shall be subject to periodic updating once every two (2) years following the effectivity of this Ordinance. SECTION 6. Benefits/Privileges of Registered MSMEs. MSMEs included in the Registry of MSMEs are entitled to the benefits/privileges which include, but not limited to: Supply of at least 10% of the total procurement value of goods and services of the LGU including government entities holding offices and/or implementing Programs, Projects and Activities within the locality; and, Priority to display their manufactured/produced products in the Pasalubong Center operated by LGU Pagadian City. Priority to display in apportioned areas allocated by concerned establishments for local products in Pagadian City. SECTION 7. Creation of the Economic Enterprise Office. There shall be an Economic Enterprise Office (EEO) to be created with specific functions to help promote, distribute and sell locally produced products of MSEs and to facilitate the compliance of LGU Pagadian City and all concerned government entities to the provision of Section 4 of the Magna Carta of MSMEs. SECTION 8. Operation/Management of the Pasalubong Center. Pending the creation of the Economic Enterprise Office (EEO), the TLDO shall implement this Ordinance. Products of eligible MSEs shall be displayed for sale at the Pasalubong Center on a consignment basis. To keep track of -the compliance of LGU Pagadian City, as well as all entities holding offices and/or implementing Programs, Projects and Activities within the locality, a consolidated monthly report shall be prepared by the TLDO to be submitted to the LCE, copy furnished concerned government entities and the Department of Budget and Management. SECTION 9. Implementing Rules and Regulations. The Office of the Local Chief Executive through the TLDO and in consultation with all concerned government entities and the private sector especially local MSMEs shall formulate the implementing rules and regulations (IRR) necessary to implement the provisions of this Ordinance within Sixty (60) days upon the final consideration and approval of this Ordinance by the Sangguniang Panlungsod. SECTION 10. Separability Clause. If, for any reason or reasons, any part or provision of this Ordinance shall be held to be unconstitutional or invalid, other parts or provisions hereof which are not affected thereby shall stand and continue to be in full force and effect. SECTION 11. Repealing Clause. All local ordinances and enactments, executive orders, resolutions, memoranda, circulars or any part thereof contrary to or inconsistent with the provisions of this Ordinance is hereby repealed, modified or amended accordingly. SECTION 12. Effectivity Clause. This City Ordinance shall take effect immediately upon approval and in accordance with the provisions of the Local Government Code of 1991. ENACTED AND APPROVED by the Sangguniang Panlungsod (14th City Council) during its 22nd Regular Session on 18 January 2023 at the SP Session Hall, 4th Floor City Commercial Center (C3), Santiago District, Pagadian City.