REPUBLIC OF THE PHILIPPINES

CITY OF ILOILO
OFFICE OF THE SANGGUNIANG PANLUNGSOD

EXCERPT FROM THE MINUTES OF THE 23RD REGULAR SESSION OF THE CITY
COUNCIL OF THE SANGGUNIANG PANLUNGSOD OF THE CITY OF ILOILO,
PHILIPPINES, HELD AT THE SESSION HALL, NEW CITY HALL BUILDING, PLAZA
LIBERTAD, ILOILO CITY, ON TUESDAY, JULY 1, 2014
PRESENT:
HON. JOSE S. ESPINOSA III
Presiding Officer
HON. LYNDON V. ACAP
HON.RODELF.AGADO
HON. JOSHUA C. ALIM, Floor Leader
HON. LADY JULIE GRACE L. BARONDA
HON. R LEONE N. GEROCHI
HON. JASON R. GONZALES
HON. CARLOS P. GUARIN, Pres.,LigangmgaBarangay
HON. PLARIDEL C. NAVA, II, Asst. Floor Leader
HON. ARMAND S. PARCON
HON. EDUARDO L. PENAREDONDO
HON. LIEZL JOY ZULUETA-SALAZAR
HON. JOSE EFRAIN G. TRENAS III
HON. NIELEX C. TUPAS

Member
Member
Member
Member
Member
Member
Ex-Officio Member
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Member
Member
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Member

ABSENT:
NONE
REGULATION ORDINANCE NO. 2014-315
ELECTRONIC PAYMENT SYSTEM FOR FINANCIAL TRANSACTIONS
WITH THE ILOILO CITY GOVERNMENT

Sponsored by Councilor Lady Julie Grace L Baronda, co-sponsored by, Councilors

Joshua C. Alim, Lyndon V. Acap, R Leone N. Gerochi, Armand S. Parcon, Plaridel C. Nava
II, Rodel F. Agado and Nielex C. Tupas and duly seconded by Councilors Jose Efrain G.
Trefias III and Liezl Joy Zulueta-Salazar
WHEREAS, Section 24, Article II of the 1987 Philippine Constitution emphasizes that the
state shall recognize the vital role of communication and information technology in nation-building;
WHEREAS, Section 16 of the Republic Act No. 7160, also known as the General Welfare
Clause of the Local Government Code of the Philippines, highlights encouragement and support of
the development of appropriate and self-reliant scientific technological capabilities, preservation of
comfort and convenience of the people;
WHEREAS, Section 2, Part of the Republic Act No. 8792, also known as the Electronic
Commerce Act of 2000 emphasizes the need to create an information-friendly environment which
supports and ensures the availability, diversity and affordability of Information Communication
Technology (ICT) products and services;
WHEREAS, Electronic Payment and Collection System (EPCS) should be able to
accommodate various modes and channels of electronic payment pursuant to Joint Department
Administrative Order No. 02, Series of 2006 of the Department of Trade and Industry and
Department of Finance provided for Guidelines Implementing R.A. No. 8792 on EPCS in
Government.

Page 2, Regulation Ordinance No. 2014-315, July I, 2014

WHEREAS, use of access devices for payment fees, charges, assessments and revenue due to
the government through the Government Entity's 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 pursuant to the Joint
Administrative Order No. 10-01. Series of 2010 of the Department of Trade and Industry and
Department of Finance;
WHEREAS, the Monetary Board in its Resolution No. 324 dated 26 February 2009,
approved the guidelines governing the issuance of electronic money (e-money) and the operations of
electronic money issuer (EMI) in the Philippines;
WHEREAS, it is the policy of the Bangko Sentral ng Pilipinas (BSP) to foster the
development of efficient and convenient retail payment and fund transfer mechanism in the
Philippines pursuant to Circular No. 649, series of 2009 issued by the Office of the Governor of
Bangko Sentral ng Pilipinas;
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 of Iloilo is in furtherance of our goal in promoting good governance reforms
that would include transparency in government transactions and make our business processes more
efficient and convenient for our constituents or taxpayers, whom we consider our valued customers,
as well as city government employees and suppliers;
NOW THEREFORE, be it ordained as it is hereby ordained by the Sangguniang Panlungsod
of the City of Iloilo in session duly assembled:

Section 1. Title. - This ordinance shall be known as "Electronic Payment System for
Financial Transactions with the Iloilo City Government".
Section 2. Findings Incorporated. - The findings, laws, circulars, and its implementing
guidelines above are hereby incorporated and made integral part of this ordinance.
Section 3. Declaration of Policy. - The City recognizes the move for Electronic Governance
(eGovernance) as a means of the City Government of Iloilo to interact with our constituents (G2C),
government to business sector (G2B) and also 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 obligations. It is in the best interest of
the public to adopt electronic payments systems for tax collection as an alternative means for
payment of taxes, fees and other payments collection by the City of Iloilo.
Section 4. Definition of Terms. - For the purpose of this Ordinance, the following terms are
defined as follows:
a. "Access Device" as defined under Republic Act No. 8484, means any card, plate, code,
account number, electronic serial number, personal identification number, or other
telecommunications service, equipment, or instrumental identifier, or other means of
account access that can be used to obtain money, goods, services, or any other thing of
value or to initiate a transfer of funds (other than a transfer originated solely by paper
instrument).
b. "Cash Card" is a plastic card that provides an alternative payment method to cash. Funds
for payment are deducted from the remaining balance/stored value on the card of the
holder.

Page 3, Regulation Ordinance No. 2014-315. July 1, 2014

c. "Credit Card" is a part of a system of payments named after the small plastic card issued
to users of the system. It is a card entitling the holder to purchase goods and services on
credit based on the holder's promise to pay the value therefore with the issuer of the card.
The same issuer of the card grants a credit line to the user from which the user can borrow
money for payment to a merchant.
d. "Debit Card" is a plastic card issued by banks that provides an alternative payment
method to cash. Funds for payment are withdrawn directly from the bank account of the
holder.
e. "Electronic Governance (eGovernance)" refers to the application of Information and
Communication Technology (ICT) for delivering government services, exchange of
information trru;isactions, integration various stand-one systems and services between
Government-to-Citizens (G2C), Government-to-Business (G2B), Government-toGovernment (G2G) as well as back office processes and interactions within the entire
government framework.
f. "Electronic Money (eMoney)" as defined under Bangko Sentral ng Pilipinas (BSP)
Circular No. 649, Series of 2009, shall mean monetary value as represented by a claim on
its issuer, that is - a) electronically stored in an instrument or device; b) issued against
receipt of funds of an amount not lesser in value than the monetary value issued; c)
accepted as a means of payment by persons or entities other than the issuer; d)
withdrawable in cash or cash equivalent, and e) issued in accordance with this Circular.
g. "Electronic Money Issuer" shall be classified as a) Banks; b) Non-bank Financial
Institutions supervised by the BSP; c) Non-bank institutions registered with the BSP as a
money transfer agent under Section 451 lN of the Manual of Regulations for Non-Bank
Financial Institutions.
h. "Electronic Payment" refers to transfer of money or equivalent electronic representation
of legal tender, for purposes of payment, solely through electronic means as opposed to
the use of cash or physical notes to accomplish the same.
1.

"Electronic Payment and Collection System (EPCS)" refers to a system that accepts
and processes Electronic Payments, authenticates the payor and payee, validates
availability of the funds, and executes the appropriate debit and credit instructions for the
fund source and destination accounts, generates and forwards electronic proof of payment
or Electronic Official Receipt (EOR) to the payor, or allows secure access thereto and
creates, retains and safeguards the resulting detailed electronic transaction records which
are accessible by authorized personnel;

Section 5. Use of Access Device. - 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 revenues due to the government through the Government Entity's 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
the government.
Section 6. Appropriation. - The City shall allocate an appropriate and adequate budget for the
implementation of this ordinance.

Section 7. Implementing Guidelines. - Implementing guidelines, mechanisms and processes -t>

shall be issued through an Executive Order by the Local Chief Executive oflloilo City for the

Page 4. Regulation Ordinance No. 2014-315. July l, 2014

enforcement of the provisions and effective implementation of this Ordinance in accordance with
the existing national laws and department circulars.

Section 8. Repealing Clause. - All other laws, decrees, orders, issuances, rules and
regulations which are inconsistent with the provision of this ordinance are hereby repealed, amended
or modified accordingly.
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. Effectivity. -This ordinance shall take effect immediately upon its approval.
ENACTED. July 1, 2014.

I hereby certify to the correctness of the above quoted ordinance.

RUTH H. ARROYO

ATTESTED AND CERTIF

TO BED Y ENACTED:

JOS
~E
Vice Mayor and Presiding Officer

/mtb

APPROVED: