1 Vv. Republic of the Philippines OFFICE OF THE SANGGUNIANG PANLUNGSOD HON. CHERRY MAY G. BUSA. City Hall, Doongan, Butuan City (085) 8171003 | Email: spegbusa@gmail.com Committee Hearing on Science and Technology JULY 27, 2022 | 2:00 PM Session Hall, SP Bidg.,City Hall Complex, Doongan, Butuan City ORDER OF BUSINESS CALLTO ORDER ROLL CALL/ DECLARATION OF QUORUM CALENDAR OF BUSINESS - PROPOSED RESOLUTION NO. 16-012-2022 OF HON. JOHN GIL S. UNAY SR. “A RESOLUTION AUTHORIZING THE HONORABLE RONNIE VICENTE C. LAGNADA, CITY MAYOR OF BUTUAN TO ENTER INTO A PARTNERSHIP AGREEMENT WITH VARIOUS PARTNERS GOVERNING ONUNE PAYMENTS FOR ENHANCED TAX REVENUE ASSESSMENT AND COLLECTION SYSTEM (E-TRACS) FOR EASY ACCESS AND CONVENIENCE OF THE TAXPAYERS WHO OPT TO AVAIL OF ONLINE PAYMENTS OF THEIR TAXES DUE TO THE CITY GOVERNMENT OF BUTUAN" . PROPOSED ORDINANCE NO. 16-016-2022 OF HON. JOHN GIL S. UNAY SR. "AN ORDINANCE INSTITUTIONALIZING THE USE OF ELECTRONIC PAYMENT SYSTEM FOR THE FINANCIAL TRANSACTIONS WITH THE CITY GOVERNMENT OF BUTUAN” PENDING REFERRALS None ADJOURNMENT Prepared by Approved by Cherry Busa Committee PhairpersonGoer Th PROPOSED RESOLUTION NO. _| ~ 0/2 - 2992 “ A RESOLUTION AUTHORIZIN THE HONORABLE RONNIE ‘VICENTE C, LAGNADA, CITY MAYOR OF BUTUAN TO ENTER INTO A PARTNERSHIP AGREEMENT WITH VARIOUS PARTNERS GOVERNING ONLINE PAYMENTS FOR ENHANCED ‘TAXPAYERS WHO OPT TO AVAIL OF ONLINE PAYMENTS OF ‘THEIR TAXES DUE TO THE CITY GOVERNMENT OF BUTUAN” ‘Whereas, the Sangguniang Panlungsod received a letter from Mayor Ronnie Vicente C. Lagnada, dated May 31, 2022 asking/requesting for the enactment of a resolution authorizing the undersigned to enter into a partnership agreement with various payment partners governing online payment for enhanced tax revenue assessment and collection system for easy access and convenience for taxpayers who opt to avail of online payments due to the City Government of Butuan pursuant to Republic Act No. 11032 otherwise known as the “ Ease of Doing Business and Efficient Delivery of government Services Act of 2018”; ‘Whereas, another letter dated May 31, 2022 addressed to Mayor Ronnie Vicente C. Lagnada jointly written and signed by Mr. Hemando Curilan, Jr, of the City Treasurer's Office, Atty. Moshi Ariel S. Cahoy, City Business Permits & Licenses Office and Engr. Jezreel E. Lovete, PECE of the City Information and Communications Technology Office, recommending to Mayor Ronnie Vicente C, Lagnada to indorse the passage fo enactment of an SP Resolution to authorize the Mayor to enter and sign into a partnership agreement with various payment partners governing online payments to help enhance the tax revenue assessments and and collections;35, 36 37 Fs88 a2 49 50 SL 52 53 55 7 59 6 s2 63 ‘Whereas, the partnership agreement with the various payment partners governing online payment for Enhanced Tax Revenue Assessment and Collection System (E-TRACS) would be of great help for the taxpayers for easy access and convenience in paying their taxes due to the City Government of Butuan, especially during this pandemic. But this online payment is optional on the part of the taxpayers, considering that there is a convenience fee charged by the online payment providers in every transaction. NOW, THEREFORE, be it RESOLVED, As it is Hereby RESOLVED, by the Sangguniang Panlungsod of Butuan City in Session Assembled: TO AUTHORIZE THE HONORABLE MAYOR RONNIE VICENTE C. LAGNADA TO ENTER INTO A PARTNERSHIP AGREEMENT WITH VARIOUS PAYMENT PARTNERS GOVERNING ONLINE PAYMENTS FOR ENHANCED TAX REVENUE ASSESSMENT AND COLLECTION SYSTEM (E-TRACS) FOR EASY ACCESS AND CONVENIENCE OF THE ‘TAXPAYERS WHO OPT TO AVAIL OF ONLINE PAYMENTS OF THEIR ‘TAXES DUE TO THE CITY GOVERNMENT OF BUTUAN. SUBMITTED FOR APPROVAL: JOHN GIL S. UNAY, SR. FOR THE COMMITTEEsot penne May 31, 2022 inne Cpa «oer 0 x ace WU oun quid He vid FOR THEHONORABLE SANGGUNIANG PANLUNGSOD MEMBERS pox seve cugouery 6 eh om pase (os wbbs COM CETOM ALN Eft yume YE MOLT Tt seme WoLeg pe HON yUCeN aap caps 4 Pyccummt QUIEE Gan qaMe 12 SOIL Learegy wir Ruvaeg fo ipe Hom Cpy Hen, EE poReOR OW PE UBOLAGMICRE OL IIe KOBL C* Through HON. JOSE S. AQUINO II pert Gity Vice Mayor eran CEI jer Baeagar conyspianes: copy af the recommendation letter for online payment and a be Ou HBTS ‘Telephone = (085) Email website “ample copy of a resolution is attached herewith and shall form part of this” indorsement Very truly yours, iT KE ev ‘@.UAGNADA ¢ u wwe 2 9003 COMALLLEE OV LBVACHI2R2’ DICEV2RS TAD CVALAC COMPILLIEE KEbOWL was (085) 225-5737 Bur saabutwanienmal.ss ane, © tp: Jonata. go" " « S7KOCOMINC LUDO! jpobapyie OL ue LubesRepublic of the Philippines __ CITY GOVERNMENT OF BUTUAN City Hall Bldg. |.P. Rosales Ave. Doongan, Butuan City May 31,2022 ENGR. RONNIE VICENTE C. LAGNADA City Mayor Butuan City bi : ! a We write to you to respectfully recommend for th jndérseniént to the Sangguniang °\ Panlungsod (SP) for, the passage or enactment of SP resolution authorizing you to enter and sign into a partnership agreement with various payment partners governing, online payment for enhanced tax revenue ‘assessment and collection system for easy access and convenience of the taxpayers whio opt to avail online payments. of their taxes due to the City Government ‘of Butuan pursuant to the Republic Act No.1 1032 otherwise knnowntas the "Ease of Doing Business and Bficient Delivery of Government Services Act of 2018.” ‘Thank youand stay: safe. Very truly yours, MOSHI ‘8. CAHOY Officer-in}charge city rer City Busi Permit and Licensing Office City Treasyrer’s Office estar Fanon Twp i *feusyaas 3737 Kee 2 ee acearbotunn es ah Gees CoveRepublic ofthe Phiippines PROVINCE OF AKLAN KALIBO, AKLAN, ‘SANGGUNIANG PANLALAWIGAN EXCERPTS FROM THE MINUTES OF THE ONE HUNDRED THIRTY THIRO (133) REGULAR) SESSION OF THE 18" SANGGUNIANG PANLALAWIGAN OF THE OF AKLAN (2012-2022) HELD ON. INIANG “PANLALAWIGAN "SESSION FER ALE HONORABLE REYNALDO M, QUIMPO HONORABLE JOSE MISUEL M. MIRAFLORES HONORABLE CIRIACOT. FELICANO HONORABLE EUESSIE D N2MUNDO: 4 Federaign Presient. aasent: """ a0 uy ¢ HONORASLEJAYE TEJADA’ r — SP Member Sten District ‘Special Prviege Leave HONORABLE JURIS8, SUCRO SP Member Fiat Disact Special Prviage Leave HONORABLE RICARDO ©: IBARRETA JR SP Member, PCL Presdart ‘Sick Leave (Mandatoy Quarantine) RESOLUTION NO. 2022-1651 “A RESOLUTION AUTHORIZING ‘THE HONORABLE GOVERNOR FLORENCIO T. MIRAFLORES TO ENTER INTO A PARTNERSHIP AGREEMENT WITH VARIOUS PAYMENT PARTNERS GOVERNING ONLINE PAYMENTS FOR ENHANCED TAX REVENUE ASSESSMENT AND COLLECTION SYSTEM (E-TRACS) FOR EASY ACCESS AND (CONVENIENCE OF THE TAXPAYERS) WHO OPT TO AVAIL OF ONLINE PAYMENTS OF THEIR TAXES DUE TO THE PROVINCIAL GOVERNMENT OF AKLAN": foaucons, ote thn ech was doped by Be August Body dure Ke 22nd Regutar Session on November 22, 2021; 7 February 2022 Paget ot? Legis, s-Fom 0502.10.16WHEREAS, on Jenuary 18, 2022, the office received another request from th Provineial Governor to authorize hi to ener into = partnership apresment with raves ‘payment partners governing online payments for E-TRACS by the province's taxpayers. WHEREAS, RAMESES jssued 2 certication that Rameses Systems. | developer of E-TRACS end Flipton weonte tal proves feet woes transactions collected using electronic payments that iis systems and E-TRACS are ‘open to integration with any payment provider, without bias, such as banks, money |ssuers or any financial technology company that can accept electronic payments WHEREAS, the partnership agreement with the variqus payment partners governing online payment for Enhanced Tax Revenue Assessment and Collection ‘System (E-TRACS) would be of great help for the taxpayers for easy access and convenience in paying their taxes due to the Provincial Government, especially during this pandemic. But this online payment is optional on the pan of the taxpayers, considering that there is @ convenience fee charged by the online payment providers in every transaction, NOW, THEREFORE, Be’ RESOLVED, As'it (6 Hereoy RESOLVED, By he ‘Sangguniang Paniaiawigan Of The Province of Aklan in Session Duly Assembled: TO AUTHORIZE THE HONORABLE GOVERNOR FLORENCIO T. MIRAFLORES TO ENTER INTO A PARTNERSHIP AGREEMENT WITH VARIOUS PAYMENT PARTNERS GOVERNING ONLINE PA) FOR ENHANCED TAX REVENUE ASSESSMENT AND 3) LE TRACS) FOR EASY ACCESS AND CONVENIENCE OF THE T/ OPT TO AVAIL OF ONLINE PAYMENTS OF THEIR TAXES OUE TO THE PROVINCIAL GOVERNMENT OF AKLAN APPROVED, FEBRUARY 7, 2022. THEREBY CERTIFY bo this porectnass of ine foregoing feselution, unt ‘ARO / )- yhopal ‘Officer I Cayt Keing ‘the Sanggunien ATTESTED: aATY. |. QUIMPO rem ait Provincial Vice yemor Regular P Officer a2 es ta auzas661 Tee Leis LS-Pam e508 1028 “SDeTAREEIOW OL tes EreR' C pumurau:‘RNCEOPARIAT ~~ SANGSU. = us Pantaca RECEIVED By © Repu othe Paine: Owe | PROVINCE OF AKLAN te c Kaito, Aitan RS No. —— OFFICE OP THE PROVINCIAL GOVERNOR FLONENCIO 1. MIRAFLORES Provincial Governor sianuary 17, PROVRICE OF ARAN Ova3ece ns wre epverNon The Honorable SANGGUNIANG PANLALAWIGAN OF AKLAN RECEIVED Province of Akian By Kalito, Akan tak — Soe Siraittedam: mete reetngt This pertains fo the SP's Joint Commitiee on Appropriations, Budget and Finance and Ways and Means and the Committee on Laws, Rules and Ordinances recommendation for the involvemest/paricipation of other online bither than PayMaya with regards to online payment acceptance to E-TRACS, With the Rameses Systems, Inc. (E-TRACS developer) issuance of certification of its openness to integration wih any payment provider, may |, therefore, request the Honorable Body's authorily for the undersigned to enter into 8 partnership agreement with various payment partners as online payment for E- TRACS. Enclosed is @ copy of the Cariication for the the Honorable Body's perusal. This is to certify that this is URGENT. Sincetest thanks and best regards. aT ae edProvince at Akar , 0 December 2021 HON, FLORENCTO T. MIRAFLORES Provincial Governor Provincial of Akan Kalibo, Akian Dear Sir: In response to the Joint Committee on Appropriations, Budget anc Finance ond Weys and Means and the Committee on Laws, Rules and Ordinances regarding their recommendation for the involvement/participation of other online platforms/operations other than PAYMAYA, transmitting herewith the CERTIFICATION of RAMESES, INC. stoting that E-TRACS are open to integration with any payment provider that can accept electronic payments, without bias. Yours truly, Bath - JERICSON C. BELLO Provincial Government | Department Head =CERTIFICATION roves a acy tant Ramones Sree inc, developer of E-TRACS and Flipizen weste Provides a feciily to process transactions colecied wing electon, ELMO N. NAZARENO Prondontond 260 and EXTRACS Devetpirtpedatst Sui IQSKYIRNTO before me in__ CEBU CITY this. Affiant exhibiting to me his/her identification No. mid CRN-008-1248564-4 NOTARY PUI Doc. No. Page No. t Book No, — ee Series of 97]REPUBLIC OF THE PHILIPPINES PROVINCE OF AKLAN RAUBO, AKLAN SANGGUNIANG PANLALAWIGAN be November 24, 2027 alld R-O\-2) HON, FLORENGIO T. MIRAFLORES Provincial Governor Province of Asian Kalibo, Aktan 7 a ast ate pe, Dear Sir: Ye pete Greetings! We are respectfully returning herewith the urgent request for an authority 10 sign the Application Form, Oiect Merchant Terms ard, Condiione and the Proposal Latter of PayMava, Inc., pertaining to its proposed partnersiyp wih Ne province for the provision of e-wallet payment acceplance at “zero cast’ to we provincial government, “The joint Committee on Appropiiations, Budget and Finence end Ways and’ Means and the Commitee on Laws, Rules and Ordinances recommended 19 arias, request for revisdn and fo consider the concems presented durng Te cee rdanng, such asthe involverertipericpation of ober onic like RAMESES, Goeah, ec, other inan PayMaye, attached is the Commitee: Report No. 2021-228 which was adoptes Py this Body during ts 122 Regular Session on November 22, 202% Thank you, - ‘Respectfully yours, ARO ttocal Leatalativg Stef Officer oiing Secretary an one NF Copy furished: ‘tty. Ryenaldo M. Quimpo Provincial View Governor low TisaiSangguniang Pantalawigan Province.of Aklan COMMITTEE REPORT NO, 2021-226 ‘Submitted by the Committee on Appropriations, Budget and Finance and staan‘ an Conrmaen on Lowa, Ruon one Grdnanas on Rovember 16 20210 Mr. Ghaieman: “The Committee on Appropriations, Budget and Finance and Ways and Means ant Ccornmitios on Laws, Rules and Ordinances, to which was refered tothe urgent request of Governor Florencio T. Miraflores for an authority to sign the Application Form, Direct Merchant Terme and Conditions and the Proposal Lettor of PayMlaya, In. pertaining to its proposed partnership with the province for the provision of o-wallet payment ST a ne Sorganinn Pusan te ONE ONDE or ‘0 f wid te and recommendations: FINDINGS: +. Me Bemardino Viterual expressed his opinion regarding the online payment services atfered by PayMaya, as per the request of the Provincial Governor, that ne ‘would like to open it aleo to other entities offering the same online payment services like Gcash, LinkBiz, etc. which can be the payment partners of the Provincial 2. tt wil be convenient for the taxpayers o pay online, especially during this time of pandemic, 10 avoid physical contact and easier process for the taxpayers to pay their taxes due to the Provincial Government 2) The Department of Finance is also pushing for the digitization, or online payment 12 Bil Local Government Units and there are several LGUs akeady using the sad orting services, {4 The only question before isthe “convenience fee" charged in every transaction but # Mir wo ah Option forthe taxpayers and cur cfents to use the online services, oF 10 opt to the manual process in paying their dues to the Provincial Government. 5. This wit be beneficial for the Provindal Government in accepting payments "or Ter ial Fee to avod geueing at the Jetty Port of the tours arriving bound {9 Boracay Istend and to save cost in printing fickets. camacion, representative of Paytaya,enghtenes the cormnitan that Mt on cae venous onine servis, and accept al kings of ATM Cords project of PayMaya win RAMESES, System ia toavend on oni oreneoe 7 Me en for Catan and Cagben ety Ports. "The toursts and travellers con 1purchase their torminat tickets online which is very convenient for the tourists Qing, to Boracay, 8. The representative Gf APICTO confirmed to the commie that the Filpizen platform that develoned the ETRACS is flexible enough to allow alher ayment getways Wel. iwi Gepend of the RAWESES aru ihe payment getway partners io ftograts and the role of the Provincial Gavernment isto imalement the project. 8 The Hon, Dela Cruz expressed his concem that PayMaya and the existing platforms that the Provincial Government is now using, which is thet of RANESES, should frst prevent a Memorandum of Agreement fat will assure that they wi work together ané integrate their system, before the committee will recommend for te approval of this request. . RECOMMENDATION: TO RETURN THE REQUEST OF GOVERNOR FLORENCIO T_MIRAFLORES: FOR REVISION AND TO CONSIDER THE CONCERNS PRESENTED DURING THE COMMITTEE HEARING, SUCH AS THE INVOLVEMENT) PARTICIPATION OF OTHER ONLINE PLATFORMS/OPERATORS LIKE RAMESES, GCASH, ETC., OTHER THAN PAYMAYA. Respectfully submitted ENGR. JOSE! WIRAFLORES ‘Chairman, Commies on Appropriations, Buiget and Finance and Ways and Means EE pcre Chatman, Comittee on Laws, Rules and Ordinances emer, a WEL ‘on Appropriation: Member, udget and Finance and Ways and Mesrs HON, NEMESIO P. NERON Morber, Committee on Laws, Rules and Orcinences (Sek Leave) HON. ae L.soDUsTA Member. Committee on Laws, Rules and Ordinancesa 28 29 a 2 3 35 36 7 Glee TP PROPOSED ORDINANCE ~ Ol - 2a AN ORDINANCE INSTITUTIONALIZING THE USE OF ELECTRONIC PAYMET SYSTEM FOR THE FINANCIAL ‘TRANSACTIONS WITH THE CITY GOVERNMENT OF BUTUAN PREFATORY STATEMENT WHEREAS, Section 24, Article II of the 1987 Philippine Constitution provides that the state recognizes the vital role of communication and information technology in nation building; WHEREAS, Section 10, article XIV of the 1987 Philippine Constitution, likewise , provides that Science and Technology are essential for the national development and progress. The state shall give priority to research and development, invention, innovation, and their utilization, and to seience and technology education, training, and services. It shall support indigenous, appropriate, and self-reliant scientific and technological capabilities, and their and their application to the country’s productive ‘system and national life; WHEREAS, Section 16 of Republic Act No. 7160, also known as the Generel Welfare Clause of the Local Government Code of the Philippines, provides, among others, that local government units are mandated to encourage and support the development of appropriate and self-reliant, scientific and technological capabilities, enhance economic prosperity and promote full employment among their residents. This is further elaborated tunder the Basic Services Clause (Section 17), which. among others, requires local government units to provide social welfare facilities, services, and programs for livelihood and other pro-poor projects. ‘WHEREAS, pursuant to Republic Act. No. 11032, otherwise known as “ 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, and for other purposes”, it is hereby declared the policy of the State to promote integrity, accountability, proper management of public affairs and public property as well as to establish effective practices aimed at the prevention of graft and corruption in government. Towards this end, the State shall maintain honesty and with the public, which shall encompass a program for the adoption of simplified procedures that will reduce red tape and expedite transactions in government. WHEREAS, Section 7 , Chapter II of Republic Act 8792, otherwise known as the “Electronic Commerce Act of 2000", states that electronic forms of evidence of receipt of collection is acceptable;99 100 101 102 103 108 107 108 10 un 12 4 15. 6 7 18 119 pray 123, WHEREAS, for a more efficient and more effective payment of taxes, licenses and other fees as well as disbursement of payroll, government subsidies, payment to suppliers and other transactions of the City government of Butuan, there is a need to enact this ordinance to authorize the office of the City Treasurer to collect/disburse the same; ‘NOW THEREFORE, BE IT ORDAINDED, Ba ep Esmervantong Femhinged te Cy ‘of Butuan in session assembled, and by authority ofthe same: Section 1 ‘Short, Tile. ‘This ordnance sal be known asthe Butuan City “Hectronic Payment System Ordinance” of 2022. Section 2, Definition of terms. As used in this ordinance, » credit transfers, direct debits and mobile money/electronic money account which are tused by end users to transfer funds between accounts at.the folowing teri shall be understood to meanas: a, E-PAYMENT ~ flow of funds from one financial account to another using via electronic channels (e.g. Internet, point of sale (POS) devices, and ATMs); b. ELECTRONIC PAYMENT INSTRUMENTS — non cash tools such as ‘but not limited to credit cards, automated teller machines (ATM)/debit cards, prepaid cards issued by banksbanks or other financial institutions. ¢. ELECTRONIC CHANNELS ~ any type of communication using technology such as but not limited to comptters, mobile phones, landlines, or fax machines; 4. ELECTRONIC COLLECTION SYSTEM — is an online facility provided by private-owned businesses and government agencies that allows debtors, creditors, and other clients to pay goverment dues and charges through computers or telephones. It is a system for receiving, sending, storing, generating, or otherwise processing electronic data ‘messages or electronic documents pertaining to receipt and deposit of Section 3. Scopes and Coverages ~ This ordinance shall apply to of the city Government of Butuan such as but not limited to the following: Payment of business taxes Payment of license fees and permits Payment of real 1. Payment to suppliers Such other transactions involving the transfer of money to/from the Butuan City government to another private and public entity rremesoee | 23 : é g i2SeseRae ee sss Ra SBR vINedes WHEREAS, Joint Department Administrative Order No. 02, Series of 2006 dated October 25, 2006 issued by the Department of Trade and Industry and the Department of Finance, provides the guidelines implementing the “Electronic Commerce Act of 2000" on Electronic Payment and Collection System (EPCS) in Government; WHEREAS, the Monetary Board in its Resolution No. 324, dated February 26, 2009, approved the guidelines governing the issuance of electronic money (e-money) and the operations of electronic money issuer (EMD in the Philippines. WHEREAS, pursuant to Bangko Sentral ng Pilipinas (BSP) Cireular No. 649, Series ‘of 2009 dated March 9, 2009, it is the declared policy of the BSP to foster the development of efficient and convenient retail payment and fund transfer mechanisms in the Philippines. The availability and acceptance of e-money as a retail payment medium will be promoted by providing the necessary safeguards and controls to mitigate the risks associated in an e-money business; WHEREAS, pursuant to Joint Administrative Order No, 10-01, series of 2010, daed March 24, 2010, issued by the Department of Trade and Industry and the department of Finance, the use of access devices such as, but not limited to, credit cards, debit cards, cash cards, and mobile phones , for payment of fees, charges, assessments, and other revenues due to the government through the Government Entity’s Electronic Payment and Collection System (EPCS) is hereby authorized to bring about a more efficient and effective payment and collection service for government transactions and to provide the transacting clients additional payment options for transactions with government; WHEREAS, Commission on Audit Circular No, 2013-2017, dated September 18, 2013 provides for the guidelines in the use of Electronic Official Receipts (eORs) to acknowledge collection of income and other receipts of government; ‘WHEREAS, in furtherance of Butuan City’s Investment and Promotion Policy there is @ need to endeavour more investment by providing an enabling environment that will generate an enhance economic activity within the city; WHEREAS, implementing electronic payment systems for collection of taxes, licenses and other fees as well as disbursement of payroll, government subsidies, payment to suppliers and other transactions of the City Government of Butuan is in furtherance of its goal in promoting good governance reforms that would include transparency in government transactions and make business processes more efficient and convenient for the constituents or taxpayers, whom are consider as valued customers, and suppliers; WHEREAS, for a more efficient and effective payment of taxes, licenses and other fees as well as disbursement of payroll, government subsidies, payment to suppliers and other transactions of the Butuan City Government is in furtherance of of its goal in promoting good governance reforms that would include transparency in government ‘transactions and make business processes more efficient and convenient for the constituents or taxpayers, whom are consider as valued customers, and suppliers;124 25 26 u7 us 29 BO a1 1B 133 134 135 136 437 138 140 41 42 143, rrr 145, 146 7 us us 150 asi 352 154 ass 156 357 158 159 160 361 162 163 164 165 166 Section 4. Non-Mandatory Character - The availment of electronic payment services is not mandatory for the people dealing with the City Government of Butuan. Payment of the feess and charges mentioned in the preceding section may still be done manually and over the counter at the option of the taxpayer. ‘Section 5. Declaration Policy ~The City recognizes the moves for Electronic Govemanee (eGovernance) as a means of the City Government of Butuan to interact with the constituents (G2C), government to business sector (G2B) and other government agencies (G2G), anchored ‘on the principles of good governance, transparency and operational efficiency, An electronic payment system will enhance tax collection by ensuring that the necessary mechanism and procedures employed to encourage taxpayers to pay and settle their tax obligagtions. It is in the best interest of the payments collection by the City of Butuan. Section 6. Implementing Guidelines - The implementing guidelines shall be isoued through an Executive Order by the Local Chief Executive of Butuan City for the enforcement of the provisions and effective implementation of this Ordinance. The customary electronic payments and liquidation of collection process is outlined below: a Electronic Collection Process — i. Thetaxpayers initiates the transaction via the front-end or texpayer-facing electronic billing and payment interface that will be set up by the Butuan City Government, The tax. payer selects a billing transaction type and provides the required transaction reference number, In the case of Business Permit payment, the Ledger Identification Nusber (LIN) or any unique identification serves as the transaction reference whereas for real Real Property, itis the Tax Declaration (TD), Property identification Number (PIN), Taxpayer's [Identification (TID), or any unique identification, ii, The billing information will be displayed . The taxpayer can choose different payment options; for instance, the quarter they wish to pay for business renewal or the year they wish to pay if they have teal property arrears, Once they are ready to pay, the Pay Button is clicked. fii, After the Pay Button is clicked, the order of payment is created showing the Ledger Identification Number (LIN), the Tax Declaration (TD), the Property Identification Number (PIN), the Taxpayer's Identification (TID) or any unique identification and displayed on iv, The taxpayer will be re-directed to the City Government's electronic payments service provider, The taxpayer enters his/her account and payment details. Once a successful transactin is made, the taxpayer will receive a confirmation message validating the transaction. v. The LGU's system clears the order of payment, posts the payment to the ledger and generates the EQR (Electronic Official Receipt) which will be sent to the registered email ‘address ofthe taxpayer as proof of payment. Liquidation of Collection Process — i. The LGU must assign personnel to ensure the effective and efficient implementation of the liquidation of collection process. ii, The personnel will cheek the daily transaction in the system and compare it with the daily transaction report from the bank electronic payment service provider.187 158 159 170 a wm 173 174 475, 176 a7 8 179 181 383 184 185 186 187 189 180 191 192 195 197 199 200 201 202 203 205 205 207 4k, Once all transactions are accounted for, the Report of Daily Collection (RDC) for EOR (Electronic Official Receipt) will be generated from the system, each EOR must be printed to have a backup hardeopy for filing. After submission, a fund transfer advice based on the ‘summary of amounts by fund is generated. iv. The RDC will be sent to the approver, ot liquidating officer for counterchecking and after ‘acceptance the approver's (or liquidating officer) signature is affixed. The liquidating officer will forward this to cashier or any designated personnel who will transfer the funds based on the fund transfer advice. The fund transfer validation reference must be provided as @ requirement prior to posting. v. After the posting, the summaries will be formatted using the accounts used by the ‘accounting office and the Journal Entry Voucher (JEV) template which will be used as reference by the accounting office will be generated. Procedures and details may vary from the illustrated customary process according to the technical features of the tax and revenue collections systems/solutions that will be acquired by Section 7, Separabillty Clause — If, for any reason, any part of this ordinance is invalidated by a court of competent jurisdiction, the remaining portion of the Ordinance shall remain in full force and effect. Section 8, Repealing Clause ~ All other laws, decrees, orders, issuances, rules and regulations, which are inconsistent with any of the provisions of this Ordinance, are hereby repealed, amended or modified accordingly. Section 9. Amendatory Clause - The provisions of previous local enactments, resolutions, ‘memoranda, circulars, and other issuances inconsistent with this Ordinance are hereby repealed or modified necordingly. Section 10. Effeetivity — The ordinance shall take effect (Upon approval) and after due compliance with all the requirements provided for under R.A. 7160, otherwise known as the Local Government Code of 1991. SUBMITTED FOR APPROVAL: JOHN GIL §, UNAY, SR. FOR THE COMMITTEERepublic of the Philippines OFFICE OF THE CITY MAYOR City Hall Bldg., J.P. Rosales Ave., Doongan, Butuan City SS — pent pirat June 23, 2022 FOR THE HONORABLE SANGGUNIANG PANLUNGSOD MEMBERS. Through : HON. JOSE'S. AQUINO IL City Vice Mayor Butuan City Honorable Members of the Sangguniang Pantungsod Greetings! This is to formally request the Honorable SP Members to consider the matter for inclusion in the agenda of the regular session of the 15t* Sangguniang Panlungsod the ne or enactment © yguniang Pan the ac On Telephone + (085) 342-3072 Fax (oss) 295.5797 opyeiand Email smu laitnaresrmal comm ee Website > htep/ /awee batuan. gor ph ——‘Republic of the Philippines CITY BUSINESS PERMIT AND LICENSING OFFICE City Hall Bd, |.P. Rosales Ave, Doongan, Butuan’ June 23, 2022 ENGR. RONNIE VICENTE C. LAGNADA City Mayor Butuan City Dear Mayor: Greetings! We write to you to respectfully recommend for the indorsement to the Sangguniang Paniungsod (SP) for the passage or enactment of Sangguniang Panlungsod ordinance for the City Government of Butuan's adoption and implementation of electronic payment or ontine payment of business taxes, fees and charges, surcharges, and other fees in line with the introduction of innovations for the full automation of the Business Permitting and Licensing System (BPLS) as mandated by the Republic Act No. 11032 otherwise known as the "Ease of Doing Business and Efficient Delivery of Government Services Act of 2018.” (A copy of a sample ordinance is hereto attached as reference) This would enable online payment for the transacting public through a web-based software enabled system without the additional undue regulatory burden and cost while limiting interactions in conformity to the “Zero-contact Policy’ under Section 1, Rule V of the Implementing Rules and Regulations of the RA11032, Thank you. Respectfully yours, MOSHIRIEL S. CAHOY City Business Permit and Licensing Officer 4 Past Mite & Hedy Service —— aw Faphone (085)300-7007 nae, Seg? S13@04 (93/0639 657 461 900 Bik) WO, oui ven Ema respects desman Website hp//swwwrbetuangor pt“a 7 a Republic ofthe Philippines SANGGUNIANG PANLUNGSOD, CITY OF GENERAL SANTOS, HELD , 5. AT THE SANGGUNIANG PANLUNGSOD SESSION HALL ON TUESDAY, NOVEMBER 27, 2018, PRESENT: Hon. Shirlyn L. Bafias-Nograles City Vice Mayor and Presiding Officer Hon. Elizabeth 8, Bagonoc ity Councilor Hon, Alberts D, Pacquiao Gtty Councilor Hon. Rosalita T, Nuiiez Gity Councilor Hon, Jose Orlando R, Acharon City Councilor Hon. Oominador S. Lagare, Jr. Gity Counciior Hon, Franklin M. Gacal, Jr. Gity Councilor Hon. Jose Edmar J. Yumang City Councilor Hon. Vandyke B. Congson ity Councitor Hon. Lourdes F. Casabuena City Councilor Hon. Ramon R. Meliza City Councitor Hon. Lucio D. Cawayan, Sr. City Councilor (IPMR) Hon, LorelieG, Pecquiac City Councilor (eiga ag mga Bararsgey Present) ABSENT: Hon. Shandee Therese 0. Liido-Pestafio City Councilor (OL) Hon, Brix T, Tan City Councilor (OL) Hon. John Salvador D. Demdam ity Councilor (Rantungsed na Pederasyon 9. ‘mga Sangguniang Kabataan President) (OL) WHEREAS, Section 24, Article II of the 1987 Philippine Constitution provides that the state recognizes the vital role of communication and information technology in nation building; WHEREAS, Section 10, Article XIV of the 1987 Philippine Constitution, likewise, provides that Science and Technology are essential for national development and progress, The state shall give priority to research and development, invention, innovation, and their utilization; and to science and technology education, training, and services. | It shall support indigenous, appropriate, and selfeliant scientific and technological capabilities, and their application to the country’s productive systems and national life; WHEREAS, Section 16 of Republic Act No. 7160, also known as the General Welfare Clause of the Local Government Code of the Philippines, provides, among cthers, that local government units are mandated to encourage and support the development of ‘and self-reliant, scientific and technological capabilities, enhance economic prosperity and promote full employment among their residents. This is further Elaborated under the Basic Services Clause (Section 17), which, among others, requires focal government units to provide social welfere facilities, services, and programs for livelihood and other pro-poor projects; a ‘ORDINANCE NO. 79, SERIES OF 2018 ca wwspaensartosph 554.0475, > ; * WHEREAS, pursuant to Republic Act No. 11032, otherwise known Promoting Ease ‘of Doing Business And Efficient Delivery of Government Services, ‘Amending For The Purpose Republic Act No, 9485, Otherwise Known As The Ai-Red {Tape Act of 2007, And For Other Purposes", i is hereby declared the policy of the State Promote integrity, accountability, proper management of public affairs and public WHEREAS, Section 7, Chapter II of Republic Act 8792, otherwise known as the “Electronic Commerce Act of 2000”, states that sof evi id “Blearoni z! electronic forms of evidence of receipt of WHEREAS, Joint Department Administrative Order No. 02, Series of 2006 dated October 25, 2006, issued by the Department of Trade and Industry and the Department of Finance, provides the guidelines implementing the "Electronic Commerce Act of 2000” on Electronic Payment and Collection System (EPCS) in Government; WHEREAS, the Monetary Board in its Resolution No. 324 dated February 26, 2009, approved the guidelines governing the issuance of electronic money (e-money) and the operations of electronic money issuer (EMI) in the Philippines; 7 WHEREAS, pursuant to Bangko Sentral ng Pilipinas (BSP) Circular No. 649, Series of 2009 dated March 9, 2009, it is the declared policy of the BSP to foster the development of efficient and convenient retail payment and fund transfer mechanisms in the Philippines. The availability and acceptance of e-money as a retail payment medium will be promoted by providing the necessary safeguards and controls to mitigate the risks ‘associated in an e-money business; WHEREAS, pursuant to Joint Department Administrative Order No. 10-01, Series of 2010, dated March 24, 2010, issued by the Department of Trade and Industry and the Department of Finance, the use of access devices such as, but not limited to, credit cards, debit cards, cash cards, and mobile phones, for payment of fees, charges, assessments, and other revenues due to the government through the Government Entity’s Electronic Payment and Collection System (EPCS) is hereby authorized to bring about @ more efficient and effective payment and collection service for government transactions and to provide the transacting clients additional payment options for transactions with government; WHEREAS, Commission on Audit Circular No. 2013-007, dated September 18, 2013 provides for the guidelines in the use of Electronic Official Receipts (€ORs) to ‘acknowledge collection of income and other receipts of government. WHEREAS, in furtherance of General Santos City’s Investment and Promotion Policy there is 2 need to endeavor more investment by providing an enabling environment that will generate and enhance economic activity within the city; wo SERIES OF 2018WHEREAS, implementing electronic Payment systems for collection of taxes, licenses and other fees as well as disbursement of payroll, government subsidies, Payment to suppliers and other transactions of the Cty Gavemment of General Santos i in furtherance of its goal in promotina good govemance raforme that would include. ansparency in government: transactions and make business processes more. efficient and convenient for the constituents or taxpayers, whom are consider as valued customers, and suppliers; NOW, THEREFORE, on motion of Cty Councilor Franklin M. Gacal Jr, di seconded by Gity Councilors Elizabeth B. Baganoc, Aberto D. Pacquiso, Jose Euinse 4 Yumang and Vandyke B. Congson, be it - RESOLVED, as it is hereby resolves, to enact this Ordinance: ORDINANCE NO. 79 Series of 2018 AN ORDINANCE INSTITUTIONALIZING THE USE OF ELECTRONIC PAYMENT SYSTEM BOR THE FINANCIAL TRANSACTIONS WITH THE CITY GOVERNMENT OF GENERAL Hon, Franklin M. Gacal, Jr. - Sponsor Hon. Brix T. Tan- Co-Sponsor SECTION 1. Short Title. - This Ordinance shall be known as the “Electronic Payment System Ordinance”. SECTION 2. Definition of Terms. - As used in this ordinance, the following terms shall be understood to mean as: a, E-PAYMENT — flow of funds from one financial account to another using electronic payment instruments via electronic channels (e.9, Internet, point of sale (POS) devices, and ATMs); b. ELECTRONIC PAYMENT INSTRUMENTS - non-cash tools such as but not limited to credit cards, automated teller machines (ATM)/debit cards, prepaid cards issued by banks, credit transfers, direct debits and mobile money/electronic money account which are used by end users to transfer funds between accounts at banks or other financial institutions; ELECTRONIC CHANNELS ~ any type of communication using technology such as but not limited to computers, mobile phones, landlines, or fax machines; ORDINANCE NO. 79, SERIES OF 2018 SP @SECTION 3. Scope and Coverage. - This Ordinance shall apply to all transacti ofthe Gity Government of General Santos such as but nt lated te the tolowien: = |. Payment of business taxes ). Payment of license fees and permits Payment of real property taxes Payment of fines for violation of city ordinances Payment of regulatory and other fees Disbursement of payroll Payment of government subsidies Payment to suppliers Such other transactions involving the transfer of money to/from the City Government of General Santos to another private and public entity. SECTION 4. Non-Mandatory Character. - The avaiiment of electronic payment services is not mandatory for the people dealing with the City Government of General Santos. Payments of the fees and charges mentioned in the preceding section may stil be done manually and over the counter at the option of the taxpayer. SECTION 5. Declaration of Policy. - The City recognizes the move for Electronic Governance (eGovernance) as a means of the City Govemment of General Santos to interact with the constituents (G2C), government to business sector (G28) and other government agencies (G2G), anchored on the principles of good governance, trensparency and operational efficiency. An electronic payment system will enhance tax collection by ensuring that the necessary mechanism and procedures employed to encourage taxpayers to pay and settle their tax obligations, It iS in the best interest of the payments collection by the City of General Santos. SECTION 6. Implementing Guidelines. - The Implementing guidelines shall_ be issued through an Executive Order by the Local Chief Executive of General Santos City for the enforcement of the provisions and effective implementation of this Ordinance. ‘The customary electronic payments and liquidation of collection process is outlined below: rrespsoge a. Electronic Collection Process ~ i. The taxpayer initiates the transaction via the front-end or taxpayer-facing electronic biling and payment interface that will be set up by the General Santos City Government. The taxpayer selects a biling transaction type and provides the required transaction reference number. In the case of Business Permit payment, the Ledger Identification Number (LIN) or any unique identification serves as the transaction reference whereas for Real Property, it ig the Tax Declaration (TD), Property Identification Number (PIN), Taxpayer's Identification (TID) oF ary unique identification, “ORDINANCE NO. 79, SERIES OF 2018 p rr 4> ry fi. The billing information will be displayed. The taxpayer can choose different Payment options; for instance, the quarter they wish to pay for business renewal or the year they wish to pay if they have real property arrears. Once Wide be Py cube cee eee “showing ii, re Pay is clicked, the order of payment is created the Ledger Identification Number (LIN), the Tax Declaration (TD), the Property ldentification Number (PIN), the Taxpayer's Identification (TID) or any unique identification and displayed on screen iv. The taxpayer will be re-directed to the City Government's electronic payments serve provider, The taxpayer enters his/her account and payment details. Once a successful transaction is made, the taxpayer will recewe 2 confirmation _mesiagevaldating the vansacton, ve u system clears the order of payment, posts the payment to the ledger and generates the EOR (Electronic Official Receipt) which will be sent to the registered email address of the taxpayer as proof of payment. b. Liquidation of Collection Process - i. The LGU must assign personnel to ensure the effective and efficient implementation of the liquidation of collection process. |i, The personnel will check the daily transaction in the system and compare it with the daily transaction report from the bank/electronic payment service provider. iii. Once all transactions are accounted for, the Report of Daily Collection (RDC) for EOR will be generated from the system. Each EOR must be printed to have a backup hardcopy for filing. After submission, & fund transfer advice based on tthe summary of amounts by fund is generated. iv. The RDC will be sent to the approver, or iquidating officer for counterchecking and after acceptance the approver's (or liquidating officer) signature is affixed. ‘The liquidating officer will forward this to the cashier or any designated personnel who will transfer the funds based on the fund transfer advice. The fund transfer validation reference must be provided 25 a requirement prior to posting. v. After posting, the summaries will be formatted using the accounts used by the accounting office and the Journal Entry Voucher (JEV) template which will be used as reference by the accounting office will be generated. Procedures and details may vary from the illustrated customary process according to the technical features of the tax and revenue collections systems/solutions that will be acquired by the City Government of General Santos. SECTION 7. Separability Clause. - If, for any reason, any part of this Ordinance is invalidated by a Court of competent jurisdiction, the remaining portion of the Ordinance shall remain in full force and effect. SECTION 8. Repealing Ciause. - All other laws, decrees, orders, issuances, rules ‘and regulations, which are inconsistent with any of the provisions of this Ordinance, are hereby repealed, amended or modified accordingly. SECTION 9. Amendatory Clause. - The provisions of previous local enactments, resolutions, memoranda, circulars, and other issuances inconsistent with this Ordinance are hereby repealed or modified accordingly. ‘ORDINANCE NO. 73, SERIES OF 2018 p ae ¢ay 7 SECTION 10. Effectivity- This Ordinance shall take effect 15 days ater its Publication in a local newspaper of general circulation for three (3) consecutive issues. Enacted by the 18” Sangguniang Panlungsod, City of General Santos on ‘its 107" Regular Session held on November 27, 2018. 7 ATTY. ROSENDO A. ROQUE ‘Secretary to the Sanggunian ATTESTED BY: ont’ Sai -YN L. ES City Vice Mayor and Presiding Officer Approved by His Honor, the City Mayor on Prtsen 2, 2018. RONNELC. RIVERA City Mayor => Lhe Cell SHIRLYN BAWAG-NOSRALES Hcting Sty Mayor ME @ ‘ORDINANCE NO. 79, SERIES OF 2018 =16" Sangguniang Panlungsod CY 2022-4" Regular Session, July26, 2022, Tuesday For First Reading PROPOSED SP RESOLUTION NO. 16- 012- 2022 A RESOLUTION AUTHORIZING THE HONORABLE CITY MAYOR RONNIE VICENTE C. LAGNADA TO ENTER INTO. AND SIGN, FOR AND IN BEHALF OF THE CITY GOVERNMENT OF BUTUAN, THE TRI-PARTITE AGREEMENTTHEREOF WITH PAYMAYA PHILIPPINES, INC. (PAYMAYA) AND THE DEVELOPMENT BANK OF THE PHILIPPINES (DBP), RELATIVE TO THE IMPLEMENTATION OF THE ENHANCED TAX REVENUE ASSESSMENT AND COLLECTION SYSTEM (E-TRACS) TO ALLOW TAXPAYERS TO PAY THEIR GOVERNMENT TAXES, CHARGES AND OTHER FEES VIA ONLINE MEANS, AND FOR OTHER PURPOSES WHEREAS, presented beforethe Honorable Sangguniang Penlungsod (SP) is the letter of the Honorable City Mayor Ronnie Vicente C. Lagnada dated May 31, 2022, received by the Honorable SPon June 22, 2022, requesting for the passage or enactment of an SP Resolution authorizing the Honorable City Mayor to enter into a partnership agreement with various payment partners governing online. payment for an enhanced tax revenue assessment and collection system (E-TRACS) to provide easy access and convenience to taxpayers who opt to avail online payment of their taxes due to the City Government of Butuan; WHEREAS, the City Government of Butuan recognizes the need to improve its transactions systems and procedures by continuing to adopt and enhance its Remittance Verification Monitoring System (RVMS) for the processing and collection of payment for taxes, goverment services and other fees from its clients in compliance with Republic Act No. 11032 or the “Ease of Doing Business and Efficient Government Services Delivery Act of 2018”; WHEREAS, PayMaya Philippines, Inc. (PayMaya) offers PayMaya Payment Solutions (PPS)which allows services likeonline checkout that accepts creditidebit cards, bills payment via PayMaya application, pay by PayMaya. PayMaya One Point of Sale (POS) terminal that accepts credit/debit cards and PayMaya QR payments, and Smart Padala Centers Bills Payment; WHEREAS, the Development Bank of the Philippines (DBP) has been chosen as the depositary and financial settlement bank of the City Government of Butuan; WHEREAS, the Tri-Partite Agreement provides, among others, that the City Government of Butuan, PayMaya, and the DBP shall comply with all relevant and current laws and regulations implemented by the Bangko Sentral ng Pilipinas.(BSP) and other regulatory bodies; WHEREAS, Section 455(b)(1(vi) of Republic Act 7160, otherwise known as the Local Government Code of 1991, succinctly states that the City Mayor shall represent the City in all its business transactions and sign in its behalf all bonds, contracts and obligations, and such other documents upon authority of the Sangguniang Panlungsod or pursuant to law or ordinance; WHEREAS, upon deliberation, the Honorable SP Body finds the subject request reasonable and in order, and beneficial to the City of Butuan,58 39 61 62 63 64 65 66 67 68 69 70 a R B 74 5 76 7 7B 79 80 81 82 83 84 RESOLYED, to authorize the Honorable City Mayor Ronnie Vicente C. Lagnada to enter into and sign, for and in behalf of the City Government of Butuan, the Tri-partite Agreement thereof with PayMaya Philippines, Inc. (PayMaya) and the Development Bank of the Philippines (DBP), relative to the implementation of the Enhanced Tax Revenue Assessment and Collection System (E-TRACS) to allow taxpayers to pay their govemment taxes, charges and other fees via online means RESOLVED FURTHER, to furnish copies of this Resolution the Offices of the City Mayor and the City Administrator, the City Legal Office, the City Treasurer, the City Business Permits & Licenses Office, the City Information and Communications Technology Office, and the City Public Information Office, and PayMaya Philippines, Inc. (PayMaya), represented by its Director, Mario M. Lazaro, and the Development Bank of the Philippines., represented by its Senior Assistant Vice President and Office-in-Charge, Branch Banking Group — Northern ‘Mindanao, Mary Joyce B. Salgados, for information and appropriate action. Submitted for approval: HON. JOHN GIL S. UNAY, SR. SP Member Chairperson, Committee on Ways and Means gjmlim16 Sangguniang Panlungsod 1 2 CY2022-4" Regular Session, July 26, 2022, Tuesday 3 For First Reading 4 5 6 PI JED SP ORDINANCE NO. 16-016-2022 7 8 AN ORDINANCE INSTITUTIONALIZING THE 9 ELECTRONIC PAYMENT SYSTEM IN ALL FD 10 TRANSACTIONS WITH THE CITY GOVERNME! OF i BUTUAN, AND FOR OTHER PURPOSES, 12 13 14 WHEREAS, Section 24, Article II of the 1987 Philippine Constitution provides 15 that the State recognizes the vital role of communication and information technology in 16 nation building; 18 WHEREAS, Section 10, Article XIV of the 1987 Philippine Constitution, 19 likewise, provides that science and technology are essential for the national 20 development and progress. The State shall give priority to research and development, 21 invention, innovation, and their utilization, and to science and technology education, 22 training, and services. It shall support indigenous, appropriate, and self-reliant scientific 23. and technological capabilities, and their application to the country’s productive system 24 and national life; 26 WHEREAS, Section 16 of Republic Act (RA) No. 7160, also known as the 27 General Welfare Clause of the Local Government Code of the Philippines, provides, 28 among others, that local government units are mandated to encourage and support the 29 development of appropriate and self-reliant, scientific and technological capabilities, 30 enhance economic prosperity and promote full employment among their residents. This 31 _ is further elaborated under the Basic Services Clause (Section 17), which, among others, 32. requires local government units to provide social welfare facilities, services, and 33. programs for livelihood and other pro-poor projects; 35 ‘WHEREAS, pursuant to RANo. 11032, otherwise known as “An Act Promoting, 36 Ease of Doing Business and Efficient Delivery of Government Services, amending for the 37 purpose RA No. 9485, otherwise known as the “Anti-Red Tape Act of 2007’, itis hereby 38 declared the policy of the State to promote integrity, accountability, proper management 39 of public affairs and public property as well as to establish effective practices aimed at 40 the prevention of graft and corruption in government. Towards this end, the State shall 41 maintain honesty and responsibility among its public officials and employees, and shall 42. take appropriate measures to promote transparency in each agency regarding the 43. manner of transacting with the public, which shall encompass a program for the 44 adoption of simplified procedures that will reduce red tape and expedite transactions in 45 government; 47 WHEREAS, Section 7, Chapter II of RA 8792, otherwise known as the 48 “Electronic Commerce Act of 2000’, states that electronic forms of evidence of receipt of 49 collection is acceptable; 51 WHEREAS, Joint Department Administrative Order No. 02, Series of 2006, 52 dated October 25, 2006, issued by the Department of Trade and Industry and the 53 Department of Finance, provides the guidelines implementing the “Electronic $4 Commerce Act of 2000" on Electronic Pavment and Collection Svetem (EPCS) in.ST 58 59 60 61 62 63 64 65 66 67 68 69 70 u n2 73 74 75 76 7 8 81 82 83 85 86 87 88 89 1 92 93 94 95 96 97 98 99 100 101 102 103 105 106 107 108 109 110 i WwW WHEREAS, the Monetary Board in its Resolution No. 324, dated February 26, 2009, approved the guidelines governing the issuance of electronic money (e-money) and the operations of electronic money issuer (EMI) in the Philippines; WHEREAS, pursuant to Bangko Sentral ng Pilipinas (BSP) Circular No. 649, Series of 2009, dated March 9, 2009, it is the declared policy of the BSP to foster the development of efficient and convenient retail payment and fund transfer mechanisms in the Philippines. The availability and acceptance of e-money as a retail payment medium will be promoted by providing the necessary safeguards and controls to mitigate the risks associated in an e-money business; WHEREAS, pursuant to Joint Administrative Order No. 10-01, Series of 2010, dated March 24, 2010, issued by the Department of Trade and Industry and the department of Finance, the use of access devices such as, but not limited to, credit cards, debit cards, cash cards, and mobile phones , for payment of fees, charges, assessments, and other revenues due to the government through the Government Entity’s Electronic Payment and Collection System (EPCS) is hereby authorized to bring about a more efficient and effective payment and collection service for government transactions and to provide the transacting clients additional payment options for transactions with government; ‘WHEREAS, Commission on Audit Circular No. 2013-2017, dated September 18, 2013 provides for the guidelines in the use of Electronic Official Receipts (EORs) to acknowledge collection of income and other receipts of government; WHEREAS, in furtherance of Butuan City’s Investment and Promotion Policy there is a need to endeavor more investment by providing an enabling environment that will generate an enhance economic activity within the city; WHEREAS, implementing electronic payment systems for collection of taxes, licenses and other fees as well as disbursement of payroll, government subsidies, payment to suppliers and other transactions of the City Government of Butuan is in furtherance of its goal in promoting good governance reforms that would include transparency in government transactions and make business processes more efficient and convenient for the constituents or taxpayers, whom are consider as valued customers, and suppliers; WHEREAS, for a more efficient and effective payment of taxes, licenses and other fees as well as disbursement of payroll, government subsidies, payment to suppliers and other transactions of the City Government of Butuan is in furtherance of its goal in promoting good governance reforms that would include transparency in government transactions and make business processes more efficient and convenient for the constituents or taxpayers, whom are consider as valued customers, and suppliers; WHEREAS, for a more efficient and more effective payment of taxes, licenses and other fees as well as disbursement of payroll, government subsidies, payment to suppliers and other transactions of the City Government of Butuan, there is a need to enact this Ordinance to authorize the office of the City Treasurer to collect/disburse the same. Be it ordained by the Honorable Sangguniang Panlungsod of Butuan City in session assembled and by authority of the same that: SECTION 1. TITLE. This Ordinance shall be known as the Butuan City CT titan MR ita Ea iD LS116 146 159, 160, 161 162 163 Butuan to interact with the constituents, government to business sector and other government agencies, anchored on the principles of good governance, transparency and operational efficiency. An electronic payment system will enhance tax collection by ensuring that the necessary mechanism and procedures employed to encourage taxpayers to pay and settle their tax obligations. It is in the best interest of the payments collection by the City of Butuan. SECTION 3. DEFINITION OF TERMS. As used in this Ordinance, credit transfers, direct debits and mobile money/electronic money account which are used by end-users to transfer funds between accounts at the following terms shall be understood to mean as: A. E-PAYMENT — flow of funds fiom one financial account to another using via electronic channels (e.g. Internet, point of sale (POS) devices, and ATMs); ELECTRONIC PAYMENT INSTRUMENTS — non cash tools such as but not limited to credit cards, automated teller machines (ATM)/debit cards, prepaid cards issued by banks or other financial institutions; ELECTRONIC CHANNELS - any type of communication using technology suchas but not limited to computers, mobile phones, landlines, or fax machines; and ELECTRONIC COLLECTION SYSTEM — is an online facility provided by private-owned businesses and government agencies that allows debtors, creditors, and other clients to pay government dues and charges through computers or telephones. It is a system for receiving, sending, storing, generating, or otherwise processing electronic data messages or electronic documents pertaining to receipt and deposit of government collections. SECTION 4. SCOPE. This Ordinance shall apply to all transactions of the City Government of Butuan, such as, but not limited to the following: A, B. E. Payment of business taxes; Payment of license fees and permits; Payment of real property taxes; Payment of fines for violations of city ordinances; Payment of regulatory and other fees: Disbursement of payroll;167 168 169 170 71 172 ‘Such other transactions involving the transfer of money to and from the City Govemment of Butuan to another private and public entity. SECTION 5. ELECTRONIC COLLECTION PROCESS. The customary electronic payments and liquidation of collection process is outlined below: A. The taxpayers shall initiate the transaction via the front-end or taxpayer-facing electronicbilling and payment interface that will be set up by the City Government of Butuan; ‘The taxpayer shall select a billing transaction type and provide the required transaction reference number. In the case of Business Permit payment, the Ledger Identification Number (LIN) or any unique identification serves as the transaction reference. For Real Property, it is the Tax Declaration (TD), Property Identification Number (PIN), ‘Taxpayer’s Identification (TID), or any unique identification; Once the billing information is displayed, the taxpayer may choose among the different payment options available. For instance, the taxpayer may select the particular quarter they wish to pay for business renewal or the particular year they wish to pay if they have real property arrears; Once they are ready to pay, the taxpayer shall click the “Pay” button; After the “Pay” button is clicked, the taxpayer will be re-directed to the City Government's electronic payments service provider wherein the taxpayer shall enters his/her account and payment details; Once a successful transaction is made, the taxpayer will receive a confirmation message validating the transaction; Once the Order of Payment is cleared in the system, the system shall cause the posting of payment to the ledger and will generate an Electronic Official Receipt (EOR) which will be sent to the registered email address of the taxpayer as proof of payment. SECTION 6. GUIDELINES IN THE LIQUIDATION OF COLLECTION PROCESS. A. The City Government of Butuan must assign the necessary personnel to ensure the effective and efficient implementation of the liquidation of collection process. The personnel will check the daily transaction in the system and compare it with the daily transaction report from the bank/electronic payment service provider.transfer advice based on the summary of amounts by fund is generated. D. The RDC will be sent to the approver, or liquidating officer for counterchecking and after acceptance the approver’s (or liquidating officer) signature is affixed. E. The liquidating officer will forward this to cashier or any designated personnel who will transfer the funds based on the fund transfer advice. The fund transfer validation reference must be provided as a requirement prior to posting. F, After the posting, the summaries will be formatted using the accounts used by the accounting office and the Journal Entry Voucher (JEV) template which will be used as reference by the accounting office will be generated. Procedures and details may vary from the illustrated customary process according to the technical features of the tax and revenue collections systems/solutions that will be acquired by the City Government of Butuan. SECTION 7, NON-MANDATORY CHARACTER. The availment of electronic payment services is merely optional for those who wish to transact with the City Govemment of Butuan. Payment of the fees and charges mentioned in the preceding section may still be done over-the-counter at the option of the taxpayer. SECTION 8. IMPLEMENTING GUIDELINES. The implementing guidelines of this Ordinance shall be issued through an Executive Order by the Local Chief Executive for the enforcement of the provisions and effective implementation of this Ordinance SECTION 9. SEPARABILITY CLAUSE. If, for any reason, any part of this Ordinance is invalidated by a court of competent jurisdiction, the remaining portion of the Ordinance shall remain in full force and effect. SECTION 10. REPEALING CLAUSE. All other laws, decrees, orders, issuances, rules and regulations, which are inconsistent with any of the provisions of this Ordinance, are hereby repealed, amended or modified accordingly. SECTION 11, EFFECTIVITY CLAUSE. The Ordinance shall take effect immediately upon approval. Let copies of this Ordinance be furnished the Offices of the City Mayor and the City Administrator, the City Legal Office, the City Budget Office, the City Accounting Office, the City Treasurer, City Assessment Services Office, and the City Information, Communication and Technology Officer; the Business Permits and Licensing Division (BPLD), and the City Public Information Office, for information and appropriate action.ieimlim HON. JOHN GIL S, UNAY, SR. Chairman, Committee on Ways and Means (Referred to the Committee on Science and Technology)