Republic of the Philippines
SANGGUNIANG PANLUNGSOD
City Government of Naga

ORDINANCE NO. 2026-093

AN ORDINANCE STRENGTHENING THE ENFORCEMENT OF MAYOR’S PERMIT COMPLIANCE IN NAGA CITY

Author: Hon. FRANCISCO M. MENDOZA Co-Sponsor: CY Councilor ALTHEA YSABEL J. REYES

EXPLANATORY NOTE

The practice of establishing, operating, or continuing a commercial enterprise without first obtaining a Mayor’s Permit, or failing to timely renew an expired one, is a critical gap in local regulatory enforcement. A Mayor’s Permit certifies that an enterprise has complied with public safety, health, fire, environmental, and spatial planning regulations. Businesses without regulatory clearances expose the public to unchecked hazards, possible land use distortions and neighborhood nuisance.

This regulatory evasion further creates an unfair economic playing field. While law-abiding entrepreneurs diligently bear the administrative and financial costs of compliance, unregistered establishments evade these costs giving them an unwarranted competitive advantage over those who comply. Finally, faithful compliance with the Mayor’s Permit requirement by all business enterprises will expand the revenue base of the city government providing it with much needed funds to pursue its development goals.

For these reasons, the immediate passage of this Ordinance is highly enjoined.

NOW, THEREFORE, be it ordained by the Sangguniang Panlungsod of the City of Naga in session assembled, that:

SECTION 1. SHORT TITLE. This Ordinance shall be known as the Mayor’s Permit Compliance Ordinance of Naga City.

SECTION 2. DECLARATION OF POLICY. It is the policy of the City Government of Naga to foster a vibrant and competitive local economy by ensuring a level playing field for all business entities. To this end, the City is committed to establishing a fair, predictable, and consistently imposed regulatory regime that curbs unfair competition from noncompliant businesses by way of uniform enforcement of the Mayor’s Permit and its regulatory conditions. It is further the policy of the city government to equitably and fairly distribute the fiscal burden of development over all those who are required by law to do so.

SECTION 3. SCOPE. This Ordinance shall apply to all business establishments operating in Naga City, including sole proprietorships, partnerships, corporations, cooperatives, tax-exempt entities, and online businesses with physical distribution outlets or hubs in the city.

Gaming and lotto outlets covered by a national franchise or license issued by the Philippine Amusement and Gaming Corporation (PAGCOR) or by the Philippine Charity Sweepstakes Office (PCSO) are covered by this Ordinance. While they may enjoy exemptions from local taxes, they remain subject to local regulatory fees, including but not limited to the

Mayor’s Permit Fee, Sanitary Inspection Fee, Fire Safety Inspection Clearance Fee, Building Inspection Fee, and Garbage Fee. They must, therefore, secure a valid Mayor’s Permit prior to commencing or continuing operations.

Sidewalk and itinerant vendors and small pop-up stands paying thru cash tickets and subject to existing ordinances on vending are not covered by this Ordinance.

SECTION 4. DEFINITION OF TERMS. — For the purpose of this Ordinance, the following terms shall mean:

a. Mayor’s Permit (also known as Business Permit) refers to the legal authorization issued annually by the City Mayor permitting a natural or juridical person to conduct business within Naga City. A valid Mayor’s Permit is an unexpired Mayor’s Permit. b. Business Establishment refers to any physical store, office, warehouse, factory, plant, or space where commercial, industrial, or agricultural transactions, manufacturing, or service provisions are conducted. c. Unauthorized Operation refers to the conduct of business without a valid Mayor’s Permit, including starting new operations prior to permit issuance, continuing operations after permit expiration, or operating outside the scope of an approved permit. d. Joint Inspection Team (JIT) refers to the regulatory enforcement body reconstituted under Naga City Executive Order No. 054, Series of 2025, or its subsequent iterations. e. Days as used in this Ordinance shall mean working days unless otherwise indicated as calendar days. If a working day falls on a holiday or non-working day, the counting of days shall jump to next working day.

SECTION 5. MANDATORY REQUIREMENT OF MAYOR’S PERMIT. No business entity shall operate, trade, or engage in commercial, industrial, or livelihood activities in Naga City without first securing a Mayor’s Permit and satisfying all prerequisite safety, health, environmental, and spatial planning clearances. Business entities operating without a valid Mayor’s Permit shall immediately stop operation and remain closed until they obtain their Permit.

SECTION 6. VOLUNTARY CLOSURE AND CESSATION OF OPERATION. Those who voluntarily cease operation upon effectivity of this Ordinance, or on the day following receipt of a Notice of Violation (NOV) and proceeded to apply for a Mayor’s Permit within three (3) days from receipt thereof, shall not be subjected to the administrative fines and penalties imposed under Section 8 herein, provided it remains closed until it secures a Mayor’s Permit. If a voluntarily closed entity issued an NOV re-opens without a valid Mayor’s Permit, the procedure for forced closure shall immediately commence starting from the issuance of a Show Cause Order and Hearing as provided for under Section 7b hereof.

Business entities which continue to operate without a Mayor’s Permit despite notices shall be closed, padlocked, and installed with an appropriate “Closed” sign by the City Treasurer’s Office, implemented jointly with the Public Safety Office and in coordination with the Philippine National Police, subject to the observance of the following administrative process:

SECTION 7. FORCED CLOSURE. a. Notice of Violation (NOV): If, upon verification by the Inspection Unit of the Business Permit and Licensing Division (BPLD) of the City Treasurer’s Office, or by the JIT, no valid Mayor’s Permit is posted or presented, a written NOV shall be issued by the City Treasurer’s Office giving the owner three (3) days from receipt thereof to: i. present a valid Mayor’s Permit, or ii. apply for a permit, or iii. renew an existing one. If the owner, manager, or anyone present and handling the operation of the establishment refuses to accept the Notice of Violation, the same shall be deemed constructively delivered upon posting of the same on any part or portion of the premises of the establishment, duly documented thru a video or photo, or upon sending the NOV to the published electronic mail, social media account, or other online address of the establishment. A copy of the NOV shall be furnished the City Legal Officer. If a valid, subsisting Mayor’s Permit exists but was not displayed, the establishment shall be penalized for non-display of the permit under Ordinance No. 2009-065.

b. Show-Cause Order and Hearing: If the operator fails to comply or explain within three (3) days from receipt of the NOV, the City Treasurer shall forward the records to the City Legal Officer. The City Legal Officer shall issue a Show-Cause Order giving the business owner or representative three (3) days from receipt thereof to appear at an administrative hearing to hear his/her side.

c. Closure Order: If the operator fails to appear, or fails to show justifiable cause for the lack of a Mayor’s Permit, the City Legal Officer shall forward a recommendation to the City Mayor for the issuance of a Closure Order. If the City Mayor approves the recommendation, the City Mayor shall issue a Closure Order along with a Mission Order to the team that will implement the closure. The enforcement team, which shall include representatives from the City Treasurer’s Office, the Public Safety Office and the Philippine National Police, shall physically close and padlock the frontage or main entrance of the premises and place a corresponding “closed” sign at the entrance. The unauthorized removal or destruction of the padlock or signage shall constitute defiance punishable under Section 8 hereof. A Closure Order and its attendant Mission Order shall remain valid and enforceable until the former is lifted by the City Mayor. In the enforcement of a Closure Order, the officials and their representatives named in the Mission Order shall be deemed agents of a person in authority.

d. Unauthorized Resumption of Operation: Any resumption of operation without a valid Mayor’s Permit after the execution of a Closure Order shall subject the establishment to immediate summary re-closure by the same concerned offices without need for a new administrative hearing by virtue of the continuously enforceable Closure and Mission Orders. Such re-opening shall constitute basis for the filing of the appropriate case as provided for under Section 9 hereof. It shall be the responsibility of the City Treasurer to monitor compliance and strict observance of the Closure Order.

e. Posting for Public Information: Any business entity ordered closed that persists to re-open may, for public transparency and consumer protection purposes, be posted on the official website and social media accounts of the City Government, warning the public of its lack of regulatory compliance.

f. Summary Closure Due to Imminent Hazard: The City Mayor may order the immediate summary closure of an establishment, bypassing the steps in Subsections (7a) and (7b), if the City Health Officer, City ENRO, or the Bureau of Fire Protection certifies in writing that the unauthorized operation presents an imminent and severe hazard to public health or safety as to constitute a nuisance per se.

SECTION 8. ADMINISTRATIVE FINES, SURCHARGES, AND PENALTIES. The following administrative fines are herein imposed on businesses operating without a valid Mayor’s Permit:

a. Administrative Fine: For operating without a valid Mayor’s Permit notwithstanding receipt of a Notice of Violation, an administrative fine of P3,000.00 is hereby imposed on the business owner or entity. Successive re-openings without a valid Mayor’s Permit shall be imposed an administrative fine of P5,000.00 per day of re-opening until such time that a case is filed in court in accordance with Section 9 hereof. Each day of re-opening shall be deemed a separate offense. The imposition of administrative fines shall apply only on those days prior to the filing of the case in court.

b. Retroactive Assessment of Back Taxes: The City Treasurer shall retroactively assess and collect all unpaid local business taxes and fees dating back to the actual start of the unauthorized operation. If the exact start date cannot be ascertained, it shall be presumed to be one (1) year prior to the date of the issuance of the Notice of Violation.

c. Late Payment Surcharge: A surcharge of twenty-five percent (25%) shall be applied to all unpaid local business taxes, permit fees, and regulatory clearance charges due.

d. Monthly Interest: Interest at the rate of two percent (2%) per month shall be applied to the unpaid taxes, fees, and surcharges from the date the tax or fee became due or from the documented start of unauthorized operations, subject to a cap of thirty-six (36) months.

The imposition of fine, retroactive assessment of back taxes, late payment surcharge, and interest shall apply only to those who are subject to forced closure proceedings. Those who voluntarily ceased operation until they have secured a Mayor’s Permit are exempt from these impositions.

SECTION 9. PENALTY FOR DEFIANCE OF A LAWFUL CLOSURE ORDER. Any person who wilfully defies, breaks, or bypasses a closed establishment by virtue of a lawful Closure Order shall, upon conviction by a court of competent jurisdiction, be penalized with a fine of Five Thousand Pesos (P5,000.00) for each instance or day of re-opening, or imprisonment for a period of not less than one (1) month but not exceeding six (6) months, or both, at the discretion of the court.

Assault on, or intimidation of the enforcement unit, or defiance of their lawful orders, in the course of implementing a Closure Order issued in accordance with this Ordinance shall be bases for the filing of a case for direct assault, or resistance and disobedience of a lawful order.

If the violator is a corporation, partnership, or cooperative, the penalty shall be imposed upon the president, manager, director, or the specific officer responsible for managing the operations.

SECTION 10. PUBLIC TRANSPARENCY AND MANDATORY DISPLAY. In accordance with Ordinance No. 2009-065, every operating business must display their valid Mayor’s Permit in a publicly visible location within its premises, subject to the penalties imposed therein. In line with regulatory simplification, the acquisition and physical display of a separate commercial business plate shall no longer be required.

SECTION 11. LIFTING OF CLOSURE ORDER. — A Closure Order may only be lifted by a written order from the City Mayor. The City Treasurer shall recommend the lifting of the order to the City Mayor immediately upon satisfaction of all of the following conditions:

a. Full payment of the current year’s assessed taxes, fees and charges, and any accrued interest, or if paid quarterly, full payment of the amount due for the initial quarter. b. Full payment of any prior years’ taxes, administrative fines, surcharges, and penalties imposed under this Ordinance. If subject to compromise, full payment of the initial installment. c. Securing of a Mayor’s Permit or the renewal of the expired permit including the satisfaction of all prerequisite clearance requirements (building, zoning, health, environment, and fire safety). If new, the Mayor’s Permit shall be valid for one year with its date of issuance as its anniversary or renewal date.

The lifting of the closure order shall also pave the way for the unlocking of the establishment and the removal of the closure signage.

SECTION 12. OBLIGATION OF CITY GOVERNMENT OFFICES. — To encourage business establishments to secure or renew their Mayor’s Permit, city government offices involved in regulatory compliance, licensing and permitting processes shall act expeditiously on all applications fully observing Republic Act No. 11032 (Ease of Doing Business Law) and the deadlines fixed in their respective Citizens Charter. City government employees and personnel who fail to observe the provisions of R.A. No. 11032 and of their Citizens Charter are liable administratively under civil service rules and regulations. Affected business applicants can file their complaints before the Office of the City Mayor or thru the Naga City App or other citizen’s redress channels of the city government.

SECTION 13. CITIZEN REPORTING CHANNELS. To facilitate the identification of business establishments operating without a Mayor’s Permit, citizens can report their existence thru the Naga City App, the Naga City website (naga.gov.ph), Naga City Facebook account, SMS (text), or thru any other designated feedback channel. Such reports can be made anonymously provided there are sufficient details or pictures to enable the BPLD Inspection Unit or the JIT to locate these establishments.

SECTION 14. SEPARABILITY CLAUSE. — If any Section, provision, or part of this Ordinance is declared unconstitutional or invalid by a court of competent jurisdiction, the remaining sections or provisions shall continue to be in full force and effect.

SECTION 15. REPEALING CLAUSE. All ordinances, resolutions, executive orders, or parts thereof that are inconsistent with the provisions of this Ordinance are hereby repealed, amended, or modified accordingly.

SECTION 16. EFFECTIVITY. This Ordinance shall take effect following its publication in a newspaper of general circulation and its continuous posting for three (3) consecutive weeks in conspicuous places at City Hall and in two other locations in the city.

ENACTED: August 11, 2026.

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WE HEREBY CERTIFY to the correctness of the foregoing ordinance.

LILIAN PASCUAL
Acting Secretary to the Sangguniang Panlungsod

GABRIEL H. BORDADO JR.
City Vice Mayor & Presiding Officer

APPROVED: MARIA LEONOR G. ROBREDO
City Mayor

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Bicol mail NEWSPAPER PRINTING SERVICES BICOLANDIA’S ONLY REGIONAL NEWSPAPER Goldprint Bldg, Concepcion Grande 4600 Naga City, Philippines E-mail: bicolmail@ymail.com CP No. 0981-042-9724

AFFIDAVIT OF PUBLICATION

REPUBLIC OF THE PHILIPPINES) CITY OF NAGA ) S.S.

I, NEIL CEZARD C. AUREUS, of legal age, married, filipino, with publication and postal address at Gimenez Park Subd. Concepcion Pequena, Naga City, after being duly sworn in accordance with law, depose and say:

1. That I am the Publisher of the Bicol Mail a news tabloid published and edited in Naga City with general circulation in the Bikol Region, in Metro Manila and other regions with Bikolano communities.
2. That the ORDINANCE NO. 2026-093 “An Ordinance strengthening the enforcement of Mayor’s Permit compliance in Naga City” a clipping of which is here with attached was published in the Bicol Mail once a week for two weeks, to wit: 27-August-2026

IN WITNESS WHEREOF, I have hereunto set my hand this day of August 2026, Philippines.

NEIL CEZARD C. AUREUS Publisher

SUBSCRIBED AND SWORN TO BEFORE ME, this day of August 2026 at Naga City, affiant exhibiting Community Tax Certificate No. [redacted] issued at Naga City, Philippines.

ATTY. GHIEL G. ROSALES Notary Public Doc No. [redacted] Page No. [redacted] Book No. [redacted] Series of 2026

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Bicol mail NEWSPAPER PRINTING SERVICES BICOLANDIA’S ONLY REGIONAL NEWSPAPER Goldprint Bldg, Concepcion Grande 4600 Naga City, Philippines E-mail: bicolmai1@ymail.com CP No. 0981-042-9724

AFFIDAVIT OF PUBLICATION

REPUBLIC OF THE PHILIPPINES) CITY OF NAGA ) S.S.

I, NEIL CEZARD C. AUREUS, of legal age, married, filipino, with publication and postal address at Gimenez Park Subd. Concepcion Pequena, Naga City, after being duly sworn in accordance with law, depose and say:

1. That I am the Publisher of the Bicol Mail a news tabloid published and edited in Naga City with general circulation in the Bikol Region, in Metro Manila and other regions with Bikolano communities.
2. That the ORDINANCE NO. 2026-093 “An Ordinance strengthening the enforcement of Mayor’s Permit compliance in Naga City” a clipping of which is here with attached was published in the Bicol Mail once a week for two weeks, to wit: 3-September-2026

IN WITNESS WHEREOF, I have hereunto set my hand this day of September 2026, Philippines.

NEIL CEZARD C. AUREUS Publisher

SUBSCRIBED AND SWORN TO BEFORE ME, this day of September 2026 at Naga City, affiant exhibiting Community Tax Certificate No. [redacted] issued at Naga City, Philippines.

ATTY. GHIEL G. ROSALES
Notary Public Doc No. [redacted] Page No. [redacted] Book No. [redacted] Series of 2026

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Bicol mail NEWSPAPER PRINTING SERVICES BICOLANDIA’S ONLY REGIONAL NEWSPAPER Goldprint Bldg, Concepcion Grande 4600 Naga City, Philippines E-mail: bicolmail@ymail.com CP No. 0981-042-9724

AFFIDAVIT OF PUBLICATION

REPUBLIC OF THE PHILIPPINES) CITY OF NAGA ) S.S.

I, NEIL CEZARD C. AUREUS, of legal age, married, filipino, with publication and postal address at Gimenez Park Subd. Concepcion Pequena, Naga City, after being duly sworn in accordance with law, depose and say:

1. That I am the Publisher of the Bicol Mail a news tabloid published and edited in Naga City with general circulation in the Bikol Region, in Metro Manila and other regions with Bikolano communities.
2. That the ORDINANCE NO. 2026-093 “An Ordinance strengthening the enforcement of Mayor’s Permit compliance in Naga City” a clipping of which is here with attached was published in the Bicol Mail once a week for two weeks, to wit: 10-September-2026

IN WITNESS WHEREOF, I have hereunto set my hand this day of September 2026 in Naga City, Philippines.

NEIL CEZARD C. AUREUS
Publisher

SUBSCRIBED AND SWORN TO BEFORE ME, this day of September 2026 at Naga City, affiant exhibiting Community Tax Certificate No. [redacted] issued at Naga City, Philippines.

ATTY. GHIEL G. ROSALES
Notary Public Doc No. [redacted] Page No. [redacted] Book No. [redacted] Series of 2026

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