GUIDELINES ON STREAMLINING OF LGU SYSTEMS AND

PROCEDURES ON BUSINESS AND NONBUSINESS-RELATED

SERVICES FOR CITIES AND MUNICIPALITIES
BACKGROUND
• 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).
• The Philippine Development Plan 2017-2022 ensures people-centered,
clean, and efficient governance through seamless service delivery.
• In 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.
• Pursuant to Section 5 of Republic Act 11032, the Department of the
Interior and Local Government (DILG) issued Memorandum Circular 2018-
214 on Re-engineering of LGU systems and procedures.
PURPOSE
• 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.
• To promote simplification and inter-operability of government
processes and strengthen efforts toward transparency.
LEGAL COMPLIANCE
Section 16 General Welfare and Section 17 Basic Services and
Facilities of Republic Act 7160: Local Government Code of 1991.

Republic Act No. 11032: “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.”

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”
LEGAL COMPLIANCE
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(EODB-EGSD) Act of 2018.”
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)”
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”
LEGAL COMPLIANCE
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”

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.”

DILG Memorandum Circular No. 2018-214 dated 27 December 2018,

“Reengineering of LGU Systems and Procedures in Compliance to
EODB-EGSD Act of 2018.”
LEGAL COMPLIANCE
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.”

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”

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

Available Online.

ARTA-DTI-DILG-DICT Joint Memorandum Circular No. 1, Series of 2021,

dated 13 April 2021, “Guidelines for Processing Business Permits, Related
Clearances and Licenses in All Cities and Municipalities”
LEGAL COMPLIANCE
ARTA Memorandum Circular No. 2020-07 Series of 2020, dated
September 30, 2020, “Guidelines on the Designation of a Committee
on Anti-Red Tape (CART) in the Agencies Concerned in Compliance
with Republic Act (RA) 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)”

ARTA-DICT-DILG-DHSUD-BFP-DPWH-CAAP-NTC-DOH-FDA Revised Joint

Memorandum Circular No. 1 Series of 2021, dated June 11, 2021,
“Revising and Expanding Joint Memorandum Circular No. 01 S. 2020
or the “Streamlined Guidelines for the Issuance of Permits, Licenses,
and Certificates for the Construction of Shared Passive
Telecommunications Tower Infrastructure (PTTIs)”
SCOPE AND COVERAGE
This Joint 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.
POLICY CONTENT AND GUIDELINES
LGUs shall undertake the following:

I. REVISIT ITS CURRENT SYSTEMS AND PROCEDURES

(1) review their current processes;
(2) undertake cost compliance analysis;
(3) conduct time and motion studies; and
(4) ensure that the flow of transactions is compliant on the following:
DOCUMENTARY REQUIREMENTS
Documents or requirements to be prescribed must be based on
the following:
1. National Law
2. Policy issued by National Government Agencies
3. ARTA-DTI-DILG-DICT Joint Memorandum Circular No. 1, Series of
2021, dated 13 April 2021, “Guidelines for Processing Business
Permits, Related Clearances and Licenses in All Cities and
Municipalities”
4. Ordinance by the Province provided it is prescribed by a National
law or National Government Agencies, otherwise it will not be
considered.
PRESCRIBED STEPS

CLIENT ACTION LGU ACTION

Step 1: Submission of requirements Step 1: Receive and Assessment

Before processing the application/ request on the

backroom/ One-Stop-Shop, the following shall be
done by the receiving personnel from the LGU:

Step 1.1: A Unified Application Form (UAF) shall be

adopted by the LGU particularly for the issuance
of Building and Business Permits following JMC ---
and JMC ---respectively. LGUs may also design a
unified form for other business and non-business-
related transactions.
CLIENT ACTION LGU ACTION
Step 1.2: Accept applications/ requests and
requirements. All documents submitted by
applicants shall be accepted.

Step 1.3: Perform Preliminary Assessment. The

receiving clerk shall assess the completion of the
requirements including application form, if any.
Assessment shall be done within 5 minutes. If the
documents are not complete, these should be
returned immediately to the client and indicate in
the checklist the lacking documents for
compliance together with notice slip indicating
the reason for non-processing, time received, and
time returned.
CLIENT ACTION LGU ACTION
Step 1.4: For application with complete
requirements, assign a unique identification
number. The receiving clerk must assign a
unique number as bases for accepting the
documents and waiting for processing.

Step 1.5: Issue an acknowledgment receipt –

Acknowledgment receipt shall contain the
following:
• Seal of agency
• Name of responsible officer
• Unit and designation
• Date and time of receipt
• Date of claim
 CLIENT ACTION LGU ACTION
Step 2: Payment Step 2: Receive payment and Issuance of
Official Receipt
Step 3: Claim Step 3: Release
ADOPTION OF ZERO CONTACT POLICY

Government officers/employees may communicate with them through

(1) Short Message Service (SMS), (2) e-mails, (3) and/or official website or
social media accounts of the LGU.

1. Automation/computerization is also the key for a zero contact policy.

1. The LGUs may opt to utilize courier services in receiving and delivery of
requested documents by the applicant/s or the requesting party.
• One-window One-Stop-Shop
• Two-window One-Stop Shop
3. Interactions that are considered strictly necessary, as provided by Rule V, of the
IRR of RA 11032 Section 2, include the following:
• Payment and application of fees
• For complex and/or highly technical transactions

4. Whole-of-Government Approach
⮚ refers to the ability of government agencies to work together to provide
ease of access and use by the citizens.
• Data Sharing
• End-to-end Transaction

5. Automatic Approval or Automatic Extension of License

5. Adoption of Reasonable Fees and Charges

POLICY CONTENT AND GUIDELINES
LGUs shall undertake the following:

II. CONDUCT OF REGULATORY IMPACT ASSESSMENT (RIA)

Pursuant to Section 5 of RA 11032 and subject to the
Guidelines/National Policy on Regulatory Management System to be
issued by the Authority, all regulations shall undergo regulatory impact
assessment to establish if the proposed regulation does not add undue
regulatory burden and cost to these agencies and the applicants or
requesting parties: Provided that when necessary, any proposed
regulation may undergo pilot implementation to assess regulatory
impact.
POLICY CONTENT AND GUIDELINES
LGUs shall undertake the following:

III. CONDUCT OF REGULATORY REFORM OR REPEAL OF POLICIES

All LGUs shall review and analyze their respective business and
nonbusiness-related local ordinances, issuances and resolutions, and
repeal the same if deemed outdated, redundant, cumbersome and
adds undue regulatory burden to the transacting public, in compliance
to DILG-ARTA Joint Memorandum Circular (JMC) No. 2019-01 dated 10
December 2019 or the Guidelines on the Regulatory Reform for LGUs
Pursuant to the Ease of Doing Business and Efficient Government
Service Delivery (EODB-EGSD) Act of 2018.
POLICY CONTENT AND GUIDELINES
LGUs shall undertake the following:
IV. UPDATE THE CITIZENS’ CHARTER
• Citizen’s Charter shall be posted on information billboards and shall
be uploaded in the official website of the LGU, if applicable.
• It shall describe in detail the:
1. comprehensive and uniform checklist of requirements for each type of
transaction
2. procedure,
3. person/s responsible,
4. maximum time to conclude the process,
5. documents to be presented by the applicant/ requesting party,
6. if necessary, and amount of fee/s.
POLICY CONTENT AND GUIDELINES
LGUs shall undertake the following:
V. COMMITTEE ON ANTI-RED TAPE (CART) AS THE REENGINEERING TEAM
• Citizen’s Charter shall be posted on information billboards and shall
be uploaded in the official website of the LGU, if applicable.
• It shall describe in detail the:
1. comprehensive and uniform checklist of requirements for each type of
transaction
2. procedure,
3. person/s responsible,
4. maximum time to conclude the process,
5. documents to be presented by the applicant/ requesting party,
6. if necessary, and amount of fee/s.
ADOPTION OF THE PROVISIONS OF
THIS JMC BY LGUs
In consideration of existing laws, policies, and regulations,
all Local Chief Executives and their respective Sanggunians
are hereby encouraged to issue a local ordinance
adopting the provisions of this JMC in their respective
jurisdictions.
CAPACITY DEVELOPMENT
The conduct of capacity development, trainings, seminars
or any activity in relation to the implementation of this Joint
Memorandum Circular shall be charged from LGU funds, or
unless otherwise funded by national government agencies
or cost sharing.
MONITORING AND EVALUATION

• A monitoring and evaluation system will be developed

to monitor the implementation and compliance of the
Local Government Units (LGUs) to this Joint
Memorandum Circular.

• An announced visit or audit and assessment will be

conducted anytime of the year by concerned national
government agencies to ensure the compliance of the
LGUs on this JMC and RA11032.
ROLES AND RESPONSIBILITIES
DEPARTMENT OF THE INTERIOR AND LOCAL GOVERNMENT (DILG)
• Disseminate this JMC to DILG Regional and Field Offices and
Local Government Units (LGUs)
• Develop a monitoring and evaluation tool (M&E) to determine
the compliance of LGUs in the provisions of Republic Act No.
11032 otherwise known as the Ease of Doing Business and
Efficient Government Service Delivery (EODB-EGSD) Act of 2018
• Develop a system for the monitoring, evaluation and reporting of
this JMC through Information Systems and Technology
Management Service (ISTMS) in coordination with BLGD
ROLES AND RESPONSIBILITIES
DEPARTMENT OF THE INTERIOR AND LOCAL GOVERNMENT (DILG)
• Conduct necessary orientations, workshops, and capacity buildings to
DILG Field Offices and LGUs on the streamlining of their systems and
procedures in coordination and assistance from the Anti-Red Tape
Authority (ARTA)
• Continuously update the status of the implementation of this JMC
through DILG Regional Offices maximizing the monitoring and
evaluation system to be developed by ISTMS.
• Ensure that LGUs are compliant on this JMC and RA11032 through DILG
Field Offices
• Ensure submission of the necessary reports by the LGUs through
Regional Offices that are required by ARTA or DILG including the online
monitoring report once the system is developed
ROLES AND RESPONSIBILITIES

ANTI-RED TAPE AUTHORITY (ARTA)

• Assist the DILG in conducting the necessary orientations, workshops,
and capacity buildings to DILG Field Offices and LGUs on the
streamlining of their systems and procedures;
• Provide technical assistance or training to LGUs regarding the
implementation of ARTA’s Reengineering Manual;
• Assist the DILG in monitoring the compliance of LGUs in this JMC.
ROLES AND RESPONSIBILITIES
LOCALGOVERNMENT UNITS (LGUs)
• Ensure compliance in this Joint Memorandum Circular and issue the
necessary ordinance adopting the provisions of this JMC in their
respective jurisdictions;
• Attend the orientations, workshops, and capacity buildings to be
conducted by the DILG or ARTA in streamlining LGU systems and
procedures;
• Submit the necessary report as provided in this JMC or requested by
DILG and ARTA.
VIOLATIONS, PENALTIES, AND
LIABILITIES
The provisions of Sections 21, 22, and 23 of R.A. No. 9485, as
amended by R.A. No. 11032, are applicable in case of
violations concerning applications or requests for permits,
licenses, clearances, authorizations or certifications
covered by this JMC.
dilg.gov.ph
lfrdd.official@gmail.com
(02) 8925-0356