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GUIDELINES ON ENTRY INTO AGREEMENTBY THE MUNICIPAUCITY FIRE MARSHALS WITH THE LOCAL GOVERNMENTUNITS ON THE ASSESSMENT AND COLLECTION OF THE FIRE CODE FEES

I. AUTHORITY

A. Section 5 of Republic Act No. 95'14 othenryise known as the'Fire Code ofthe Philippines of 2008',

B. Section 12(h) of RA 9485, as amended by Section I1of RA 11032, and

C. Section 1'l Rule lX of the lmplementing Rules and Regulations (lRR) of RA11032.

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This Circular shall cover all independent District and City/Municipal FireMarshals who will enter into agreements with their Local Government Units (LGUs)regarding the assessment and collection of Fire Code Fees.

III. PURPOSE

This Circular aims to serve as a guide to all Fire Marshals in exercising theirdiscretion equitably and prudently when entering into agreements with the LGUsregarding the assessment and collection of Fire Code Fees.

lv. PoLrcrEs

ln view of the foregoing, the following are the policies to be observed in enteringinto agreements with the LGUs regarding the assessment and collection of Fire CodeFees, to wit:

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Republic of the PhilippinesDepartment of the lnterior and Local Government

BUREAU OF FIRE PROTECTIONNATIONAL HEADQUARTERS

Agham Road, Sitio San Roque, Brgy. Bagong Pag-asa, Quezon CityTelefax Number: (02) 8426 - 4399

Email: ofc@bfo.oov.oh

23 SEPTEMBER 2O2OMEMORANDUM CIRCULARNUMBER: 2nro-nT?

A. The Fire Marshals shall be the representatives of the BFP to the LGUs withoutneed of any additional authority coming from the Chief, BFP as they are alreadyauthorized by Section 1 1 Rule lX of the IRR of RA 1 't 032.

B. An automated system in business and building permitting from the LGU isrequired by the BFP prior to entry into Memorandum of Agreement (MOA).

C. A standard MOA shall be issued by the BFP-NHQ to become the standardformat in the entry Into agreement by the Fire Marshals in dealing with theirrespective LGUs (see Annex A hereof).

D. The obligations under the standard MOA shall be divided into three, i.e., (1)Business Permit Application, (2) Building Permit Application, and (3)Occupancy Permit Application. Each division shall contain LGU and BFPobligations in it.

E. Modification of the provisions of the standard MOA is not allowed, mostespecially the 1 00 percent remittance of collection and the two (2) working dayslimit on remittance of the same to BFP as required by Section 11 Rule lX of theIRR of RA 11032.

F. ln case the modification is inevitable, because of unforeseen circumstances,the modification shall be subject to the approval of the Chief, BFP.

G. Deletion of specific paragraphs in the standard MOA is also not allowed,except, if the deletion shall have the effect of deleting the whole of one of thethree obligation divisions such as when a LGU only wants the delegation ofassessment and collection of Business Permit Application and opts to excludein the agreement the delegation of Building Permit Application and OccupancyPermit Application.

H. Addition of provisions which do not contradict the provisions of the standardMOA and with the aim of improving the relations of the BFP and the LGU andthe promotion of integrity, accountability, proper management of public affairsand public property, as well as to establish effective practi@s, aimed at efficientturnaround of the delivery of government services and the prevention of graftand corruption in government shall also be allowed.

Red flagging of establishments is not limited to those who will violate the safetystandards of RA 9514 and its RIRR. lt may also be made when reportingerroneous assessments. The system of red flagging shall be agreed upon bythe respective Fire Marshals and LGUs.

J. ln case of delegation of the authority to assess and collect Fire Code Fees tothe LGU, the BFP may still exercise its authority in assessing and collectingthe Fire Code Fees being the principal authority in the exercise of the same.

K. lf the LGU will deposit 100 percent of the collection directly to the BFPLandBank accounts, they shall be required to submit to the BFP the following:

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1 . List of collection,2. Certified deposited amount, and3. Certified true copy of Validated Deposit Slip or Cash Transaction Slip.

L. No Official Receipt shall be issued to the LGU if the latter directly depositedthe amount collected to the BFP LandBank account.

V. REPEALING CLAUSE

All orders, policies, rules and regulations or parts thereof inconsistent to thisCircular are hereby revoked or modified accordingly.

VI. EFFECTIVITY

This Circular shall take effect immediately.

JOSEDIRE

GJR(DSc)

Chief, BFP

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MEMORANDUM OF AGREEMENT

This Memorandum of Agreement made and entered by and between

The , local government unit duly organized and existingpurSUanttolaw,withofficeaddreSSat,representedbytheHonorableMayor-,hereinafterreferredtoastheLGU;

r and

The BUREAU OF FIRE PROTECTION, a national agency created and mandated to enforcethe Fire Code of the Philippines of 2008 and its Revised lmplementing Rules and Regulation (RIRR)as provided ror in Republic

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hereinafter referred to as the BFP;

WTNESSETH:

WHEREAS, Section 5 of Republic Act 9514 also krlown as the Fire Code of the Philippines of2008 and its Revised lmplementing Rules and Regulations (RIRR) authorizes the Chief of the BFP toenter into Memorandum of Agreement with other departments, bureaus, agencies, offices, andcorporati6ns of the government, as well as private institutions, in order to define areas of cooperationand coordination and delineate responsibility on fire prevention education, fire safety, fire prevention,fire suppression and other matters of common concern;

WHEREAS, Section 12(h) of Republic Act No. 9485, as amended by Section 11 of 11032 hasvested the BFP the discretion to enter into agreements with cities or municipalities to allow the latterto assess and collect fire safety inspection fees;

WHEREAS, Section 1'1 Rule lX of the lmplementing Rules and Regulations of RA '1 1032 hasset the guidelines for the Local Government Unit to be designated as collecting agent, to wit:

"a. For one-time assessment of busrness-related fees for Euslness Permit, LGUgmay be designated lo assess 'the ordinary" fire safety inspection fees (FSIF), providedthat the BFP is abte to check tlie accuracy of the computation and to ceftify the taxorder of payment.

b. . For one-time payment of business related fees, the BFP may allow thedesignatlon of city or municipality as collecting agents for the FSIF provided that theremittance of the said fee to the BFP shall be made not later than two (2) days after thetransaction is made. The BFP is not precluded from collecting additional fees requiredafter thelir assessment subject to existing laws and regulations.

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c. The LGU and the BFP, thru the local fire marshal, may enter into aMemorandum of Agreement giving authoity to local government officers for collectionand automatic remittance of applicable fees."

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WHEREAS, for purposes of this agreement, ordinary fire safety inspection fees shall pertain tothe Fire Safety lnspection Fee described in Section 12.0.0.2 (A) (6) of the RIRR of RA 9514,thus:"Fee charged for the conduct of Fire Safety lnspectionequivalent to fifteen percent (15o/o) of allfees charged by the Local Government Unit or Philippine Economic Zone Authoity (PEZA), but in nocase shall be lower than FiveHundred Pesos (PhP500.00)."

NOW THEREFORE, in consideration of the foregoing the Parties hereby agree as follows:

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BUSINESS PERMI T APPLICATION:

LGU s ha ll:

1. Establish an automated system which may be used by the BFp as part of its system;

2. Provide the BFP a Business lD No. that is unique to only one establishment;

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Provide the BFP access to the LGU's automated system to generate the "red flag" for non-compliant business establishments, and also view registered

-business establishments in the

locality;

Provide the BFP list of all taxes and fees being collected by the local government duringbusiness permit renewal, and confirm from the BFP which from among the list should beincluded in the computation of FSIF, which shall be specifically coded in the Tax Order ofPayment (ToP) and official Receipt (oR) for easy reference and verification by the BFp;

Establish a mechanism in handling those with under assessment issues and to give the BFP achance to object in the computation;

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6. Compute the required fees and taxes for issuance of business permits and integrate thecomputation of the BFP's FSIF on its assessment of fees;

7. Provide the BFP, or at least make available upon demand, one clear copy of TOP issued toeach applicant on a daily basis;

8. Collect FSIF from the applicant following the reflected amount in the TOP and make sure thatall regulatory fees where such FSIF are based are specifically and individually listed and codedin the OR;

9. r Provide the BFP, or at least make available upon demand, one clear copy of OR issued toeach applicant on a daily basis;

10. Remit all collectedFslF and otherFire Code related fees (100% of the collected amount)withintwo (2) working daysafter transabtion directly to the BFP, so these maybe reflected in theBFP's system and in compliance with Presidential Decree No.1445 also known as GovernmentAuditing Code of the Philippines;

1 1. Provide a weekly summary report of all collections made from businessi applicants/establishments to concerned BFP Fire Station thru email, not later than the firstworking day of the coming week, specifically indicating the name of the payers, date ofpayment, kind and amount of taxes and fees collected;

'12.Act promptly and take necessary corrective action on any discrepancy from its reports in theassessment, collection and remittance of Fire Code Construction Tax and other related fees;

13. Coordinate with BFP in establishing a system of online payment of fees and related chargesand other electronic payment scheme to facilitate the on-time assessment and payment ofbusiness permit-related fees and charges.

14. ln case, the collected Fire Code fees is deposited to the Authorized Government DepositoryBank (AGDB), the BFP shall be provided with a certified true copy of a Validated Deposit Slipor Cash Transaction Slip. The Fire Code fees collected should be remitted to the SpecialAccount in the General Fund (Code 151).

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BFP shall:

1. Coordinate with the LGU on the list of regulatory fees to be included in the ordinary FSlF,scomputation and the code to be used for the items;

2. Provide the LGU with the List of Establishment with issued Fire Safety lnspection Certificates(FSIC) which will serve as their basis in the renewal of Business Permit or Positive List ofCompliant Establishments.lt is the responsibility of the BFP to ensure that the List isUPDATED and that changes are immediately coordinated with the LGU;

3. Secure copy of TOPs; ORs and/or Validated Deposit Slips/Cash Transaction Slips from LGU;

4. lnform the LGU discrepancy found in the documents or during the conduct of inspection;

5. lssue Official Receipt to LGU for every remittance of collections made to the BFp;

BU LDING PERMIT APPLICATION:

LGU shall:

1. Develop an automated system for the submission and processing of building permitapplication and coordinate with BFP in establishing a system of online payment of fees andrelated charges and other electronic payment scheme to facilitate the on-time assessmentand payment of building permit-related fees and charges;

2. Providethe BFP, or at least make available upon demand, one clear copy of TOP issued toeach applicant on a daily basis;

3. Collect Fire Code Construction Tax and other related fees from the applicant following thereflected amount in the BFP's issued OPS and to make sure that all are specifically andindividually. listed and coded in the Official Receipt;

4. Provide the BFP, or at least make available upon demand, one clear copy of OR issued toeach applicant otua daily basis; .

5. Remit all collected FireCode Construction Tax and other Fire Code related fees (100% of thecollected amount) within two (2) working days after transaction directly to the BFP, so thesemaybe reflected in the BFP's system and in compliance with Presidential Decree No.1445;

6. Provide a weekly summary report of all collections made from businessapplicants/establishments to concerned BFP Fire Station thru email, not later than the firstworking day of the coming week, specifically indicating the name of the payers, date ofpayment, kind and amount of taxes and fees collected;

7. Provide the BFP list of issued Building Permits (every 5h day of the month) for their referencein anticipation of the applicant's future application for a Certificate of Occupancy;

8. Act promptly and take necessary corrective action on any report of discrepancy from thereports issued by any of its offices to the BFP,

9. Coordinate with BFP in establishing a system of online payment of fees and related chargesand other electronic payment scheme to facilitate the on{ime assessment and payment ofbuilding permit-related fees and charges;

10. Strictly not issue building permit without applicant first securing Fire Safety EvaluationClearance (FSEC) from the BFP.

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"1. After inspdction, endorse to the BFP through oBo the Application for occupancy to the BFptogether with the Certificate of Completion and its Certificate of Final Electrical lnspection(cFEr);

2. Provide the BFP, or at least make available upon demand, one clear copy of TOP issued toeach applicant on a daily basis;

3. Collect FSIF as reflected in the TOP and OPS and make sure that all regulatory fees wheresuch FSIF are based are specifically and individually listed and coded in the OR;

4. Provide the BFP one (1 ) clear copy of OR as proof of payment;

5. Remit all collected FSlFand other Fire Code related fees (100o/o of the collected amount)within two (2) working days after transaction directly to the BFP, so these maybe reflected inthe BFP's system and in compliance with PD 1445;

6. Provide a weekly summary report (printed and electronic copy) of all Fire Code FeesCollections made not later than the first working day of the week, specifically indicating thenames of the payers, dates of the payments, and the kind and amount of taxes and feescollected;

7. Provide the BFP with the List of lssued Certificates of Occupancy (every 5b day of themonth;f

8. Act promptly and take necessary corrective action on any report of discrepancy from thereports issued by any of its offices to the BFP;

9. Coordinate with BFP in establishing a system of online payment of fees and related chargesand other electronic payment scheme to facilitate the on{ime assessment and payment ofoccupancypermit-related fees and charges;

10. Through OBO shall not issue in any circumstance the Certificate of Occupancy toestablishment without a valid Fire Safety lnspection Certificate.

The BFP shall:

1. Accept, receive and process endorsed Application for Occupancy with complete documentaryrequirements from LGU through OBO and perform the corresponding courses of actionrelated to the conduct of fire safety inspection and if found compliant issue FSIC if non-compliant issue NOD;

2. Endorsed back to LGU through OBO the processed application with attachment of (FSIC orNOD);

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BFP shall:

1. Rece]ve with complete documentary requirements and process the endorsed Application forFSEC and Building Plans from LGU through OBO;

2. Assess the Fire Code Construction Tax and prepare the OPS and endorsed back to LGUthrough the application together with the FSEC and/or NOD with checklist;

3. lmmediately inform the LGU of any discrepancy found in the documents and repo(s received.

OCCUPANCY PERMIT APLLICATTON:

LGU shall:

3. lmmediately inform the LGU of any discrepancy found in the documents and reports receivedfrom OBO.

Jointly, the Parties agree to automatically revoke this agreement, in the event that disputesarising from assessment, collection and remittance are not settled within three (3) months after thereports of discrepancy are submitted by the BFP to concerned office of the LGU.

ln case any provision in this Agreement shall be invalid, illegal or unenforceable by a court ofcompetent jurisdiction, the validity, legalitity and enforceability of the remaining provisons hereof andthereof shall not in any way be affected or impaired thereby.

This Memorandum of Agreement shall take effect upon signing of both parties and shall bevalid for one (1) year after approval, and renewable upon consent of both paffes.

lN WTNESS WHEREOF, the parties here unto affixed their signatures this_ day of_p0_ in the _, Philippines.

MUNICIPAL / CITY GOVERNMENTBy:

BUREAU OF FIRE PROTECTIONBy:

City/Municipal Mayor City/Municipal Fire Director

Signed in the Presence of:

ACKNOWLEDGEMENT

,2020 in

, personally appeared:

Name

Known to me to be the same persons who executed the foregoing MEMORANDUM OFAGREEMENT, and acknowledged that same are their free act and deed and of the respective entitiesthey represent.

CompetentEvidence of ldentity

Place and Dateof lssue / Validity

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BEFORE ME, this _ day of