Republic of the Philippines Congress of the Philippines Metro Manila Eighth Congress Republic Act No.

6657 June 10, 19

AN AC! "N#!"!$!"N% A C&'PRE(EN#")E A%RAR"AN RE*&R' PR&%RA' !& PR&'&!E #&C"A+ J$#!"CE AN, "N,$#!R"A+"-A!"&N, PR&)","N% !(E 'EC(AN"#' *&R "!# "'P+E'EN!A!"&N, AN, *&R &!(ER P$RP&#E# Be it enacted by the Senate and House of Representatives of the Philippines in Congress assembled: : C(AP!ER " Preli.in/r0 Ch/pter #ection 1. Title. This Act shall be known as the Comprehensive Agrarian Reform Law of 1988. #ection 1. Declaration of Principles and Policies. It is the policy of the State to pursue a Comprehensive Agrarian Reform rogram !CAR "# The welfare of the lan$less farmers an$ farmworkers will receive the highest consi$eration to promote social %ustice an$ to move the nation towar$ soun$ rural $evelopment an$ in$ustriali&ation' an$ the establishment of owner cultivatorship of economic(si&e farms as the basis of hilippine agriculture# To this en$' a more e)uitable $istribution an$ ownership of lan$' with $ue regar$ to the rights of lan$owners to %ust compensation an$ to the ecological nee$s of the nation' shall be un$ertaken to provi$e farmers an$ farmworkers with the opportunity to enhance their $ignity an$ improve the )uality of their lives through greater pro$uctivity of agricultural lan$s# The agrarian reform program is foun$e$ on the right of farmers an$ regular farmworkers' who are lan$less' to own $irectly or collectively the lan$s they till or' in the case of other farm workers' to receive a %ust share of the fruits thereof# To this en$' the State shall encourage an$ un$ertake the %ust $istribution of all agricultural lan$s' sub%ect to the priorities an$ retention limits set forth in this Act' having taken into account ecological' $evelopmental' an$ e)uity consi$erations' an$ sub%ect to the payment of %ust compensation# The State shall respect the right of small lan$owners' an$ shall provi$e incentives for voluntary lan$( sharing# The State shall recogni&e the right of farmers' farmworkers an$ lan$owners' as well as cooperatives an$ other in$epen$ent farmers* organi&ations' to participate in the planning' organi&ation' an$ management of the program' an$ shall provi$e support to agriculture through appropriate technology an$ research' an$ a$e)uate financial pro$uction' marketing an$ other support services# The State shall apply the principles of agrarian reform' or stewar$ship' whenever applicable' in accor$ance with law' in the $isposition or utili&ation of other natural resources' inclu$ing lan$s of the public $omain' un$er lease or concession' suitable to agriculture' sub%ect to prior rights' homestea$ rights of small settlers an$ the rights of in$igenous communities to their ancestral lan$s# The State may resettle lan$less farmers an$ farmworkers in its own agricultural estates' which shall be $istribute$ to them in the manner provi$e$ by law# +y means of appropriate incentives' the State shall encourage the formation an$ maintenance of economic(si&e family farms to be constitute$ by in$ivi$ual beneficiaries an$ small lan$owners# The State shall protect the rights of subsistence fishermen' especially of local communities' to the preferential use of communal marine an$ fishing resources' both inlan$ an$ offshore#t shall provi$e support to such fishermen through appropriate technology an$ research' a$e)uate financial' pro$uction an$ marketing assistance an$ other services# The State shall also protect' $evelop an$ conserve such resources# The protection shall e,ten$ to offshore fishing groun$s of subsistence fishermen against foreign intrusion# -ishworkers shall receive a %ust share from their labor in the utili&ation of marine an$ fishing resources#

The State shall be gui$e$ by the principles that lan$ has a social function an$ lan$ ownership has a social responsibility# .wners of agricultural lan$s have the obligation to cultivate $irectly or through labor a$ministration the lan$s they own an$ thereby make the lan$ pro$uctive# The State shall provi$e incentives to lan$owners to invest the procee$s of the agrarian reform program to promote in$ustriali&ation' employment an$ privati&ation of public sector enterprises# -inancial instruments use$ as payment for lan$s shall contain features that shall enhance negotiability an$ acceptability in the marketplace# The State may lease un$evelope$ lan$s of the public $omain to )ualifie$ entities for the $evelopment of capital(intensive farms' an$ tra$itional an$ pioneering crops especially those for e,ports sub%ect to the prior rights of the beneficiaries un$er this Act# #ection 2. Definitions. -or the purpose of this Act' unless the conte,t in$icates otherwise: !a" Agrarian Reform means re$istribution of lan$s' regar$less of crops or fruits pro$uce$' to farmers an$ regular farmworkers who are lan$less' irrespective of tenurial arrangement' to inclu$e the totality of factors an$ support services $esigne$ to lift the economic status of the beneficiaries an$ all other arrangements alternative to the physical re$istribution of lan$s' such as pro$uction or profit(sharing' labor a$ministration' an$ the $istribution of shares of stocks' which will allow beneficiaries to receive a %ust share of the fruits of the lan$s they work# !b" Agriculture' Agricultural /nterprise or Agricultural Activity means the cultivation of the soil' planting of crops' growing of fruit trees' raising of livestock' poultry or fish' inclu$ing the harvesting of such farm pro$ucts' an$ other farm activities an$ practices performe$ by a farmer in con%unction with such farming operations $one by person whether natural or %uri$ical# !c" Agricultural 0an$ refers to lan$ $evote$ to agricultural activity as $efine$ in this Act an$ not classifie$ as mineral' forest' resi$ential' commercial or in$ustrial lan$# !$" Agrarian 1ispute refers to any controversy relating to tenurial arrangements' whether leasehol$' tenancy' stewar$ship or otherwise' over lan$s $evote$ to agriculture' inclu$ing $isputes concerning farmworkers* associations or representation of persons in negotiating' fi,ing' maintaining' changing' or seeking to arrange terms or con$itions of such tenurial arrangements# It inclu$es any controversy relating to compensation of lan$s ac)uire$ un$er this Act an$ other terms an$ con$itions of transfer of ownership from lan$owners to farmworkers' tenants an$ other agrarian reform beneficiaries' whether the $isputants stan$ in the pro,imate relation of farm operator an$ beneficiary' lan$owner an$ tenant' or lessor an$ lessee# !e" I$le or Aban$one$ 0an$ refers to any agricultural lan$ not cultivate$' tille$ or $evelope$ to pro$uce any crop nor $evote$ to any specific economic purpose continuously for a perio$ of three !2" years imme$iately prior to the receipt of notice of ac)uisition by the government as provi$e$ un$er this Act' but $oes not inclu$e lan$ that has become permanently or regularly $evote$ to non( agricultural purposes#t $oes not inclu$e lan$ which has become unpro$uctive by reason of force ma%eure or any other fortuitous event' provi$e$ that prior to such event' such lan$ was previously use$ for agricultural or other economic purpose# !f" -armer refers to a natural person whose primary livelihoo$ is cultivation of lan$ or the pro$uction of agricultural crops' either by himself' or primarily with the assistance of his imme$iate farm househol$' whether the lan$ is owne$ by him' or by another person un$er a leasehol$ or share tenancy agreement or arrangement with the owner thereof# !g" -armworker is a natural person who ren$ers service for value as an employee or laborer in an agricultural enterprise or farm regar$less of whether his compensation is pai$ on a $aily' weekly' monthly or 3pakyaw3 basis# The term inclu$es an in$ivi$ual whose work has cease$ as a conse)uence of' or in connection with' a pen$ing agrarian $ispute an$ who has not obtaine$ a substantially e)uivalent an$ regular farm employment# !h" Regular -armworker is a natural person who is employe$ on a permanent basis by an agricultural enterprise or farm#

!i" Seasonal -armworker is a natural person who is employe$ on a recurrent' perio$ic or intermittent basis by an agricultural enterprise or farm' whether as a permanent or a non(permanent laborer' such as 3$umaan3' 3saca$a3' an$ the like# !%" .ther -armworker is a farmworker who $oes not fall un$er paragraphs !g"' !h" an$ !i"# !k" Cooperatives shall refer to organi&ations compose$ primarily of small agricultural pro$ucers' farmers' farmworkers' or other agrarian reform beneficiaries who voluntarily organi&e themselves for the purpose of pooling lan$' human' technological' financial or other economic resources' an$ operate$ on the principle of one member' one vote# A %uri$ical person may be a member of a cooperative' with the same rights an$ $uties as a natural person# C(AP!ER "" Co3er/ge #ection 4. Scope. The Comprehensive Agrarian Reform 0aw of 4565 shall cover' regar$less of tenurial arrangement an$ commo$ity pro$uce$' all public an$ private agricultural lan$s' as provi$e$ in roclamation 7o# 424 an$ /,ecutive .r$er 7o# 885' inclu$ing other lan$s of the public $omain suitable for agriculture# More specifically the following lan$s are covere$ by the Comprehensive Agrarian Reform rogram: !a" All alienable an$ $isposable lan$s of the public $omain $evote$ to or suitable for agriculture# 7o reclassification of forest or mineral lan$s to agricultural lan$s shall be un$ertaken after the approval of this Act until Congress' taking into account ecological' $evelopmental an$ e)uity consi$erations' shall have $etermine$ by law' the specific limits of the public $omain# !b" All lan$s of the public $omain in e,cess of the specific limits as $etermine$ by Congress in the prece$ing paragraph9 !c" All other lan$s owne$ by the :overnment $evote$ to or suitable for agriculture9 an$ !$" All private lan$s $evote$ to or suitable for agriculture regar$less of the agricultural pro$ucts raise$ or that can be raise$ thereon# #ection 5. Schedule of mplementation. The $istribution of all lan$s covere$ by this Act shall be implemente$ imme$iately an$ complete$ within ten !4;" years from the effectivity thereof# #ection 6. Retention Limits. /,cept as otherwise provi$e$ in this Act' no person may own or retain' $irectly or in$irectly' any public or private agricultural lan$' the si&e of which shall vary accor$ing to factors governing a viable family(si&e farm' such as commo$ity pro$uce$' terrain' infrastructure' an$ soil fertility as $etermine$ by the resi$ential Agrarian Reform Council ! ARC" create$ hereun$er' but in no case shall retention by the lan$owner e,cee$ five !<" hectares# Three !2" hectares may be awar$e$ to each chil$ of the lan$owner' sub%ect to the following )ualifications: !4" that he is at least fifteen !4<" years of age9 an$ !8" that he is actually tilling the lan$ or $irectly managing the farm: provi$e$' that lan$owners whose lan$s have been covere$ by resi$ential 1ecree 7o# 8= shall be allowe$ to keep the areas originally retaine$ by them thereun$er: provi$e$' further' that original homestea$ grantees or their $irect compulsory heirs who still own the original homestea$ at the time of the approval of this Act shall retain the same areas as long as they continue to cultivate sai$ homestea$# The right to choose the area to be retaine$' which shall be compact or contiguous' shall pertain to the lan$owner: provi$e$' however' that in case the area selecte$ for retention by the lan$owner is tenante$' the tenant shall have the option to choose whether to remain therein or be a beneficiary in the same or another agricultural lan$ with similar or comparable features#n case the tenant chooses to remain in the retaine$ area' he shall be consi$ere$ a leasehol$er an$ shall lose his right to be a beneficiary un$er this Act#n case the tenant chooses to be a beneficiary in another agricultural lan$' he loses his right as a leasehol$er to the lan$ retaine$ by the lan$owner# The tenant must e,ercise this option within a perio$ of one !4" year from the time the lan$owner manifests his choice of the area for retention# In all cases' the security of tenure of the farmers or farmworkers on the lan$ prior to the approval of this Act shall be respecte$# >pon the effectivity of this Act' any sale' $isposition' lease' management' contract or transfer of possession

of private lan$s e,ecute$ by the original lan$owner in violation of the Act shall be null an$ voi$: provi$e$' however' that those e,ecute$ prior to this Act shall be vali$ only when registere$ with the Register of 1ee$s within a perio$ of three !2" months after the effectivity of this Act# Thereafter' all Registers of 1ee$s shall inform the 1epartment of Agrarian Reform !1AR" within thirty !2;" $ays of any transaction involving agricultural lan$s in e,cess of five !<" hectares# #ection 7. Priorities. The 1epartment of Agrarian Reform !1AR" in coor$ination with the resi$ential Agrarian Reform Council ! ARC" shall plan an$ program the ac)uisition an$ $istribution of all agricultural lan$s through a perio$ of ten !4;" years from the effectivity of this Act# 0an$s shall be ac)uire$ an$ $istribute$ as follows: hase .ne: Rice an$ corn lan$s un$er resi$ential 1ecree 7o# 8=9 all i$le or aban$one$ lan$s9 all private lan$s voluntarily offere$ by the owners for agrarian reform9 all lan$s foreclose$ by the government financial institutions9 all lan$s ac)uire$ by the resi$ential Commission on :oo$ :overnment ! C::"9 an$ all other lan$s owne$ by the government $evote$ to or suitable for agriculture' which shall be ac)uire$ an$ $istribute$ imme$iately upon the effectivity of this Act' with the implementation to be complete$ within a perio$ of not more than four !?" years9 hase Two: All alienable an$ $isposable public agricultural lan$s9 all arable public agricultural lan$s un$er agro(forest' pasture an$ agricultural leases alrea$y cultivate$ an$ plante$ to crops in accor$ance with Section @' Article AIII of the Constitution9 all public agricultural lan$s which are to be opene$ for new $evelopment an$ resettlement9 an$ all private agricultural lan$s in e,cess of fifty !<;" hectares' insofar as the e,cess hectarage is concerne$' to implement principally the rights of farmers an$ regular farmworkers' who are the lan$less' to own $irectly or collectively the lan$s they till' which shall be $istribute$ imme$iately upon the effectivity of this Act' with the implementation to be complete$ within a perio$ of not more than four !?" years# hase Three: All other private agricultural lan$s commencing with large lan$hol$ings an$ procee$ing to me$ium an$ small lan$hol$ings un$er the following sche$ule: !a" 0an$hol$ings above twenty(four !8?" hectares up to fifty !<;" hectares' to begin on the fourth !?th" year from the effectivity of this Act an$ to be complete$ within three !2" years9 an$ !b" 0an$hol$ings from the retention limit up to twenty(four !8?" hectares' to begin on the si,th !@th" year from the effectivity of this Act an$ to be complete$ within four !?" years9 to implement principally the right of farmers an$ regular farmworkers who are lan$less' to own $irectly or collectively the lan$s they till# The sche$ule of ac)uisition an$ re$istribution of all agricultural lan$s covere$ by this program shall be ma$e in accor$ance with the above or$er of priority' which shall be provi$e$ in the implementing rules to be prepare$ by the resi$ential Agrarian Reform Council ! ARC"' taking into consi$eration the following9 the nee$ to $istribute lan$ to the tillers at the earliest practicable time9 the nee$ to enhance agricultural pro$uctivity9 an$ the availability of fun$s an$ resources to implement an$ support the program# In any case' the ARC' upon recommen$ation by the rovincial Agrarian Reform Coor$inating Committee ! ARCC.M"' may $eclare certain provinces or region as priority lan$ reform areas' in which the ac)uisition an$ $istribution of private agricultural lan$s therein may be implemente$ ahea$ of the above sche$ules# In effecting the transfer within these gui$elines' priority must be given to lan$s that are tenante$# The ARC shall establish gui$elines to implement the above priorities an$ $istribution scheme' inclu$ing the $etermination of who are )ualifie$ beneficiaries: provi$e$' that an owner(tiller may be a beneficiary of the lan$ he $oes not own but is actually cultivating to the e,tent of the $ifference between the area of the lan$ he owns an$ the awar$ ceiling of three !2" hectares# #ection . !ultinational Corporations. All lan$s of the public $omain lease$' hel$ or possesse$ by multinational corporations or associations' an$ other lan$s owne$ by the government or by government( owne$ or controlle$ corporations' associations' institutions' or entities' $evote$ to e,isting an$ operational agri(business or agro(in$ustrial enterprises' operate$ by multinational corporations an$ associations' shall be programme$ for ac)uisition an$ $istribution imme$iately upon the effectivity of this Act' with the implementation to be complete$ within three !2" years#

0an$s covere$ by the paragraph imme$iately prece$ing' un$er lease' management' grower or service contracts' an$ the like' shall be $ispose$ of as follows: !a" 0ease' management' grower or service contracts covering such lan$s covering an aggregate area in e,cess of 4';;; hectares' lease$ or hel$ by foreign in$ivi$uals in e,cess of <;; hectares are $eeme$ amen$e$ to conform with the limits set forth in Section 2 of Article AII of the Constitution# !b" Contracts covering areas not in e,cess of 4';;; hectares in the case of such corporations an$ associations' an$ <;; hectares' in the case of such in$ivi$uals' shall be allowe$ to continue un$er their original terms an$ con$itions but not beyon$ August 85' 4558' or their vali$ termination' whichever comes sooner' after which' such agreements shall continue only when confirme$ by the appropriate government agency# Such contracts shall likewise continue even after the lan$s has been transferre$ to beneficiaries or awar$ees thereof' which transfer shall be imme$iately commence$ an$ implemente$ an$ complete$ within the perio$ of three !2" years mentione$ in the first paragraph hereof# !c" In no case will such leases an$ other agreements now being implemente$ e,ten$ beyon$ August 85' 4558' when all lan$s sub%ect hereof shall have been $istribute$ completely to )ualifie$ beneficiaries or awar$ees# Such agreements can continue thereafter only un$er a new contract between the government or )ualifie$ beneficiaries or awar$ees' on the one han$' an$ sai$ enterprises' on the other# 0an$s lease$' hel$ or possesse$ by multinational corporations' owne$ by private in$ivi$uals an$ private non(governmental corporations' associations' institutions an$ entities' citi&ens of the hilippines' shall be sub%ect to imme$iate compulsory ac)uisition an$ $istribution upon the e,piration of the applicable lease' management' grower or service contract in effect as of August 85' 456=' or otherwise' upon its vali$ termination' whichever comes sooner' but not later than after ten !4;" years following the effectivity of the Act# Bowever $uring the sai$ perio$ of effectivity' the government shall take steps to ac)uire these lan$s for imme$iate $istribution thereafter# In general' lan$s shall be $istribute$ $irectly to the in$ivi$ual worker(beneficiaries#n case it is not economically feasible an$ soun$ to $ivi$e the lan$' then they shall form a workers* cooperative or association which will $eal with the corporation or business association or any other proper party for the purpose of entering into a lease or growers agreement an$ for all other legitimate purposes# >ntil a new agreement is entere$ into by an$ between the workers* cooperative or association an$ the corporation or business association or any other proper party' any agreement e,isting at the time this Act takes effect between the former an$ the previous lan$owner shall be respecte$ by both the workers* cooperative or association an$ the corporation' business' association or such other proper party#n no case shall the implementation or application of this Act %ustify or result in the re$uction of status or $iminution of any benefits receive$ or en%oye$ by the worker(beneficiaries' or in which they may have a veste$ right' at the time this Act becomes effective# The provisions of Section 28 of this Act' with regar$ to pro$uction an$ income(sharing shall apply to farms operate$ by multinational corporations# 1uring the transition perio$' the new owners shall be assiste$ in their efforts to learn mo$ern technology in pro$uction# /nterprises which show a willingness an$ commitment an$ goo$(faith efforts to impart voluntarily such a$vance$ technology will be given preferential treatment where feasible# In no case shall a foreign corporation' association' entity or in$ivi$ual en%oy any rights or privileges better than those en%oye$ by a $omestic corporation' association' entity or in$ivi$ual# #ection 9. Ancestral Lands. -or purposes of this Act' ancestral lan$s of each in$igenous cultural community shall inclu$e' but not be limite$ to' lan$s in the actual' continuous an$ open possession an$ occupation of the community an$ its members: provi$e$' that the Torrens Systems shall be respecte$# The right of these communities to their ancestral lan$s shall be protecte$ to ensure their economic' social an$ cultural well(being#n line with the principles of self($etermination an$ autonomy' the systems of lan$ ownership' lan$ use' an$ the mo$es of settling lan$ $isputes of all these communities must be recogni&e$

an$ respecte$# Any provision of law to the contrary notwithstan$ing' the ARC may suspen$ the implementation of this Act with respect to ancestral lan$s for the purpose of i$entifying an$ $elineating such lan$s: provi$e$' that in the autonomous regions' the respective legislatures may enact their own laws on ancestral $omain sub%ect to the provisions of the Constitution an$ the principles enunciate$ in this Act an$ other national laws# #ection 10. "#emptions and "#clusions. 0an$s actually' $irectly an$ e,clusively use$ an$ foun$ to be necessary for parks' wil$life' forest reserves' reforestation' fish sanctuaries an$ bree$ing groun$s' watershe$s' an$ mangroves' national $efense' school sites an$ campuses inclu$ing e,perimental farm stations operate$ by public or private schools for e$ucational purposes' see$s an$ see$lings research an$ pilot pro$uction centers' church sites an$ convents appurtenant thereto' mos)ue sites an$ Islamic centers appurtenant thereto' communal burial groun$s an$ cemeteries' penal colonies an$ penal farms actually worke$ by the inmates' government an$ private research an$ )uarantine centers an$ all lan$s with eighteen percent !46C" slope an$ over' e,cept those alrea$y $evelope$ shall be e,empt from the coverage of the Act# #ection 11. Commercial $arming. Commercial farms' which are private agricultural lan$s $evote$ to commercial livestock' poultry an$ swine raising' an$ a)uaculture inclu$ing saltbe$s' fishpon$s an$ prawn pon$s' fruit farms' orchar$s' vegetable an$ cut(flower farms' an$ cacao' coffee an$ rubber plantations' shall be sub%ect to imme$iate compulsory ac)uisition an$ $istribution after !4;" years from the effectivity of the Act#n the case of new farms' the ten(year perio$ shall begin from the first year of commercial pro$uction an$ operation' as $etermine$ by the 1AR# 1uring the ten(year perio$' the government shall initiate the steps necessary to ac)uire these lan$s' upon payment of %ust compensation for the lan$ an$ the improvements thereon' preferably in favor of organi&e$ cooperatives or associations' which shall hereafter manage the sai$ lan$s for the worker(beneficiaries# If the 1AR $etermines that the purposes for which this $eferment is grante$ no longer e,ist' such areas shall automatically be sub%ect to re$istribution# The provisions of Section 28 of the Act' with regar$ to pro$uction(an$ income(sharing' shall apply to commercial farms# C(AP!ER """ ".pro3e.ent of !enuri/l /n5 +/bor Rel/tions #ection 11. Determination of Lease Rentals. In or$er to protect an$ improve the tenurial an$ economic status of the farmers in tenante$ lan$s un$er the retention limit an$ lan$s not yet ac)uire$ un$er this Act' the 1AR is man$ate$ to $etermine an$ fi, imme$iately the lease rentals thereof in accor$ance with Section 2? of Republic Act 7o# 26??' as amen$e$: provi$e$' that the 1AR shall imme$iately an$ perio$ically review an$ a$%ust the rental structure for $ifferent crops' inclu$ing rice an$ corn' or $ifferent regions in or$er to improve progressively the con$itions of the farmer' tenant or lessee# #ection 12. Production%Sharing Plan. Any enterprise a$opting the scheme provi$e$ for in Section 28 or operating un$er a pro$uction venture' lease' management contract or other similar arrangement an$ any farm covere$ by Sections 6 an$ 44 hereof is hereby man$ate$ to e,ecute within ninety !5;" $ays from the effectivity of this Act' a pro$uction(sharing plan' un$er gui$elines prescribe$ by the appropriate government agency# 7othing herein shall be construe$ to sanction the $iminution of any benefits such as salaries' bonuses' leaves an$ working con$itions grante$ to the employee(beneficiaries un$er e,isting laws' agreements' an$ voluntary practice by the enterprise' nor shall the enterprise an$ its employee(beneficiaries be prevente$ from entering into any agreement with terms more favorable to the latter# C(AP!ER ") Registr/tion #ection 14. Registration of Landowners. Dithin one hun$re$ eighty !46;" $ays from the effectivity of this Act' all persons' natural or %uri$ical' inclu$ing government entities' that own or claim to own agricultural lan$s' whether in their names or in the name of others' e,cept those who have alrea$y registere$ pursuant to /,ecutive .r$er 7o# 885' who shall be entitle$ to such incentives as may be provi$e$ for the ARC'

shall file a sworn statement in the proper assessor*s office in the form to be prescribe$ by the 1AR' stating the following information: !a" the $escription an$ area of the property9 !b" the average gross income from the property for at least three !2" years9 !c" the names of all tenants an$ farmworkers therein9 !$" the crops plante$ in the property an$ the area covere$ by each crop as of Eune 4' 456=9 !e" the terms of mortgages' lease' an$ management contracts subsisting as of Eune 4' 456=' an$ !f" the latest $eclare$ market value of the lan$ as $etermine$ by the city or provincial assessor# #ection 15. Registration of &eneficiaries. The 1AR in coor$ination with the +arangay Agrarian Reform Committee !+ARC" as organi&e$ in this Act' shall register all agricultural lessees' tenants an$ farmworkers who are )ualifie$ to be beneficiaries of the CAR # These potential beneficiaries with the assistance of the +ARC an$ the 1AR shall provi$e the following $ata: !a" names an$ members of their imme$iate farm househol$9 !b" owners or a$ministrators of the lan$s they work on an$ the length of tenurial relationship9 !c" location an$ area of the lan$ they work9 !$" crops plante$9 an$ !e" their share in the harvest or amount of rental pai$ or wages receive$# A copy of the registry or list of all potential CAR beneficiaries in the barangay shall be poste$ in the barangay hall' school or other public buil$ings in the barangay where it shall be open to inspection by the public at all reasonable hours# C(AP!ER ) +/n5 Ac6uisition #ection 16. Procedure for Ac'uisition of Private Lands. -or purposes of ac)uisition of private lan$s' the following proce$ures shall be followe$: !a" After having i$entifie$ the lan$' the lan$owners an$ the beneficiaries' the 1AR shall sen$ its notice to ac)uire the lan$ to the owners thereof' by personal $elivery or registere$ mail' an$ post the same in a conspicuous place in the municipal buil$ing an$ barangay hall of the place where the property is locate$# Sai$ notice shall contain the offer of the 1AR to pay a correspon$ing value in accor$ance with the valuation set forth in Sections 4=' 46' an$ other pertinent provisions hereof# !b" Dithin thirty !2;" $ays from the $ate of receipt of written notice by personal $elivery or registere$ mail' the lan$owner' his a$ministrator or representative shall inform the 1AR of his acceptance or re%ection of the offer# !c" If the lan$owner accepts the offer of the 1AR' the 0an$ +ank of the hilippines !0+ " shall pay the lan$owner the purchase price of the lan$ within thirty !2;" $ays after he e,ecutes an$ $elivers a $ee$ of transfer in favor of the government an$ surren$ers the Certificate of Title an$ other muniments of title# !$" In case of re%ection or failure to reply' the 1AR shall con$uct summary a$ministrative procee$ings to $etermine the compensation for the lan$ re)uiring the lan$owner' the 0+ an$ other intereste$ parties to submit evi$ence as to the %ust compensation for the lan$' within fifteen !4<" $ays from the receipt of the notice# After the e,piration of the above perio$' the matter is $eeme$ submitte$ for $ecision# The 1AR shall $eci$e the case within thirty !2;" $ays after it is submitte$ for $ecision# !e" >pon receipt by the lan$owner of the correspon$ing payment or' in case of re%ection or no response from the lan$owner' upon the $eposit with an accessible bank $esignate$ by the 1AR of the compensation in cash or in 0+ bon$s in accor$ance with this Act' the 1AR shall take imme$iate possession of the lan$ an$ shall re)uest the proper Register of 1ee$s to issue a

Transfer Certificate of Title !TCT" in the name of the Republic of the hilippines# The 1AR shall thereafter procee$ with the re$istribution of the lan$ to the )ualifie$ beneficiaries# !f" Any party who $isagrees with the $ecision may bring the matter to the court of proper %uris$iction for final $etermination of %ust compensation# C(AP!ER )" Co.pens/tion #ection 17. Determination of (ust Compensation. In $etermining %ust compensation' the cost of ac)uisition of the lan$' the current value of the like properties' its nature' actual use an$ income' the sworn valuation by the owner' the ta, $eclarations' an$ the assessment ma$e by government assessors shall be consi$ere$# The social an$ economic benefits contribute$ by the farmers an$ the farmworkers an$ by the :overnment to the property as well as the non(payment of ta,es or loans secure$ from any government financing institution on the sai$ lan$ shall be consi$ere$ as a$$itional factors to $etermine its valuation# #ection 1 . )aluation and !ode of Compensation. The 0+ shall compensate the lan$owner in such amounts as may be agree$ upon by the lan$owner an$ the 1AR an$ the 0+ ' in accor$ance with the criteria provi$e$ for in Sections 4@ an$ 4=' an$ other pertinent provisions hereof' or as may be finally $etermine$ by the court' as the %ust compensation for the lan$# The compensation shall be pai$ on one of the following mo$es' at the option of the lan$owner: !4" Cash payment' un$er the following terms an$ con$itions9 !a" -or lan$s above fifty !<;" hectares' insofar as the e,cess hectarage is concerne$#

Twenty(five percent !8<C" cash' the balance to be pai$ in government financial instruments negotiable at any time# Thirty percent !2;C" cash' the balance to be pai$ in government financial instruments negotiable at any time# Thirty(five percent !2<C" cash' the balance to be pai$ in government financial instruments negotiable at any time#

!b" -or lan$s above twenty(four !8?" hectares an$ up to fifty !<;" hectares#

!c" -or lan$s twenty(four !8?" hectares an$ below#

!8" Shares of stock in government(owne$ or controlle$ corporations' 0+ preferre$ shares' physical assets or other )ualifie$ investments in accor$ance with gui$elines set by the ARC9 !2" Ta, cre$its which can be use$ against any ta, liability9 !?" 0+ bon$s' which shall have the following features: !a" Market interest rates aligne$ with 54($ay treasury bill rates# Ten percent !4;C" of the face value of the bon$s shall mature every year from the $ate of issuance until the tenth !4;th" year: provi$e$' that shoul$ the lan$owner choose to forego the cash portion' whether in full or in part' he shall be pai$ correspon$ingly in 0+ bon$s9 !b" Transferability an$ negotiability# Such 0+ bon$s may be use$ by the lan$owner' his successors in interest or his assigns' up to the amount of their face value' for any of the following: !i" Ac)uisition of lan$ or other real properties of the government' inclu$ing assets un$er the Asset rivati&ation rogram an$ other assets foreclose$ by government financial institutions in the same province or region where the lan$s for which the

bon$s were pai$ are situate$9 !ii" Ac)uisition of shares of stock of government(owne$ or (controlle$ corporations or shares of stocks owne$ by the government in private corporations9 !iii" Substitution for surety or bail bon$s for the provisional release of accuse$ persons' or performance bon$s9 !iv" Security for loans with any government financial institution' provi$e$ the procee$s of the loans shall be investe$ in an economic enterprise' preferably in a small(an$ me$ium(scale in$ustry' in the same province or region as the lan$ for which the bon$s are pai$9 !v" ayment for various ta,es an$ fees to government9 provi$e$' that the use of these bon$s for these purposes will be limite$ to a certain percentage of the outstan$ing balance of the financial instruments: provi$e$' further' that the ARC shall $etermine the percentage mentione$ above9 !vi" ayment for tuition fees of the imme$iate family of the original bon$hol$er in government universities' colleges' tra$e schools' an$ other institutions9 !vii" ayment for fees of the imme$iate family of the original bon$hol$er in government hospitals9 an$ !viii" Such other uses as the ARC may from time to time allow# In case of e,traor$inary inflation' the ARC shall take appropriate measures to protect the economy# #ection 19. ncentives for )oluntar* +ffers for Sales . 0an$owners' other than banks an$ other financial institutions' who voluntarily offer their lan$s for sale shall be entitle$ to an a$$itional five percent !<C" cash payment# #ection 10. )oluntar* Land Transfer. 0an$owners of agricultural lan$s sub%ect to ac)uisition un$er this Act may enter into a voluntary arrangement for $irect transfer of their lan$s to )ualifie$ beneficiaries sub%ect to the following gui$elines: !a" All notices for voluntary lan$ transfer must be submitte$ to the 1AR within the first year of the implementation of the CAR # 7egotiations between the lan$owners an$ )ualifie$ beneficiaries covering any voluntary lan$ transfer which remain unresolve$ after one !4" year shall not be recogni&e$ an$ such lan$ shall instea$ be ac)uire$ by the government an$ transferre$ pursuant to this Act# !b" The terms an$ con$itions of such transfer shall not be less favorable to the transferee than those of the government*s stan$ing offer to purchase from the lan$owner an$ to resell to the beneficiaries' if such offers have been ma$e an$ are fully known to both parties# !c" The voluntary agreement shall inclu$e sanctions for non(compliance by either party an$ shall be $uly recor$e$ an$ its implementation monitore$ by the 1AR# #ection 11. Pa*ment of Compensation ,* &eneficiaries -nder )oluntar* Land Transfer. 1irect payments in cash or in kin$ may be by the farmer(beneficiary to the lan$owner un$er terms to be mutually agree$ upon by both parties' which shall be bin$ing upon them' upon registration with the approval by the 1AR# Sai$ approval shall be consi$ere$ given' unless notice of $isapproval is receive$ by the farmer( beneficiary within thirty !2;" $ays from the $ate of registration# In the event they cannot agree on the price of lan$' the proce$ure for compulsory ac)uisition as provi$e$ in Section 4@ shall apply# The 0+ shall e,ten$ financing to the beneficiaries for purposes of ac)uiring the lan$# C(AP!ER )"" +/n5 Re5istribution #ection 11. .ualified &eneficiaries. The lan$s covere$ by the CAR shall be $istribute$ as much as possible to lan$less resi$ents of the same barangay' or in the absence thereof' lan$less resi$ents of the

same municipality in the following or$er of priority: !a" agricultural lessees an$ share tenants9 !b" regular farmworkers9 !c" seasonal farmworkers9 !$" other farmworkers9 !e" actual tillers or occupants of public lan$s9 !f" collectives or cooperatives of the above beneficiaries9 an$ !g" others $irectly working on the lan$# rovi$e$' however' that the chil$ren of lan$owners who are )ualifie$ un$er Section @ of this Act shall be given preference in the $istribution of the lan$ of their parents: an$ provi$e$' further' that actual tenant( tillers in the lan$hol$ings shall not be e%ecte$ or remove$ therefrom# +eneficiaries un$er resi$ential 1ecree 7o# 8= who have culpably sol$' $ispose$ of' or aban$one$ their lan$ are $is)ualifie$ to become beneficiaries un$er this rogram# A basic )ualification of a beneficiary shall be his willingness' aptitu$e' an$ ability to cultivate an$ make the lan$ as pro$uctive as possible# The 1AR shall a$opt a system of monitoring the recor$ or performance of each beneficiary' so that any beneficiary guilty of negligence or misuse of the lan$ or any support e,ten$e$ to him shall forfeit his right to continue as such beneficiary# The 1AR shall submit perio$ic reports on the performance of the beneficiaries to the ARC# If' $ue to the lan$owner*s retention rights or to the number of tenants' lessees' or workers on the lan$' there is not enough lan$ to accommo$ate any or some of them' they may be grante$ ownership of other lan$s available for $istribution un$er this Act' at the option of the beneficiaries# -armers alrea$y in place an$ those not accommo$ate$ in the $istribution of privately(owne$ lan$s will be given preferential rights in the $istribution of lan$s from the public $omain# #ection 12. Distri,ution Limit. 7o )ualifie$ beneficiary may own more than three !2" hectares of agricultural lan$# #ection 14. Award to &eneficiaries. The rights an$ responsibilities of the beneficiary shall commence from the time the 1AR makes an awar$ of the lan$ to him' which awar$ shall be complete$ within one hun$re$ eighty !46;" $ays from the time the 1AR takes actual possession of the lan$# .wnership of the beneficiary shall be evi$ence$ by a Certificate of 0an$ .wnership Awar$' which shall contain the restrictions an$ con$itions provi$e$ for in this Act' an$ shall be recor$e$ in the Register of 1ee$s concerne$ an$ annotate$ on the Certificate of Title# #ection 15. Award Ceilings for &eneficiaries . +eneficiaries shall be awar$e$ an area not e,cee$ing three !2" hectares which may cover a contiguous tract of lan$ or several parcels of lan$ cumulate$ up to the prescribe$ awar$ limits# -or purposes of this Act' a lan$less beneficiary is one who owns less than three !2" hectares of agricultural lan$# The beneficiaries may opt for collective ownership' such as co(ownership or farmers cooperative or some other form of collective organi&ation: provi$e$' that the total area that may be awar$e$ shall not e,cee$ the total number of co(owners or member of the cooperative or collective organi&ation multiplie$ by the awar$ limit above prescribe$' e,cept in meritorious cases as $etermine$ by the ARC# Title to the property shall be issue$ in the name of the co(owners or the cooperative or collective organi&ation as the case may be# #ection 16. Pa*ment ,* &eneficiaries. 0an$s awar$e$ pursuant to this Act shall be pai$ for by the beneficiaries to the 0+ in thirty !2;" annual amorti&ations at si, percent !@C" interest per annum# The payments for the first three !2" years after the awar$ may be at re$uce$ amounts as establishe$ by the ARC: provi$e$' that the first five !<" annual payments may not be more than five percent !<C" of the value of the annual gross pro$uction as establishe$ by the 1AR# Shoul$ the sche$ule$ annual payments after the fifth year e,cee$ ten percent !4;C" of the annual gross pro$uction an$ the failure to pro$uce

accor$ingly is not $ue to the beneficiary*s fault' the 0+ may re$uce the interest rate or re$uce the principal obligations to make the repayment affor$able# The 0+ shall have a lien by way of mortgage on the lan$ awar$e$ to the beneficiary9 an$ this mortgage may be foreclose$ by the 0+ for non(payment of an aggregate of three !2" annual amorti&ations# The 0+ shall a$vise the 1AR of such procee$ings an$ the latter shall subse)uently awar$ the forfeite$ lan$hol$ings to other )ualifie$ beneficiaries# A beneficiary whose lan$' as provi$e$ herein' has been foreclose$ shall thereafter be permanently $is)ualifie$ from becoming a beneficiary un$er this Act# #ection 17. Transfera,ilit* of Awarded Lands. 0an$s ac)uire$ by beneficiaries un$er this Act may not be sol$' transferre$ or conveye$ e,cept through here$itary succession' or to the government' or the 0+ ' or to other )ualifie$ beneficiaries for a perio$ of ten !4;" years: provi$e$' however' that the chil$ren or the spouse of the transferor shall have a right to repurchase the lan$ from the government or 0+ within a perio$ of two !8" years# 1ue notice of the availability of the lan$ shall be given by the 0+ to the +arangay Agrarian Reform Committee !+ARC" of the barangay where the lan$ is situate$# The rovincial Agrarian Reform Coor$inating Committee ! ARCC.M" as herein provi$e$' shall' in turn' be given $ue notice thereof by the +ARC# If the lan$ has not yet been fully pai$ by the beneficiary' the rights to the lan$ may be transferre$ or conveye$' with prior approval of the 1AR' to any heir of the beneficiary or to any other beneficiary who' as a con$ition for such transfer or conveyance' shall cultivate the lan$ himself# -ailing compliance herewith' the lan$ shall be transferre$ to the 0+ which shall give $ue notice of the availability of the lan$ in the manner specifie$ in the imme$iately prece$ing paragraph# In the event of such transfer to the 0+ ' the latter shall compensate the beneficiary in one lump sum for the amounts the latter has alrea$y pai$' together with the value of improvements he has ma$e on the lan$# #ection 1 . Standing Crops at the Time of Ac'uisition. The lan$owner shall retain his share of any stan$ing crops unharveste$ at the time the 1AR shall take possession of the lan$ un$er Section 4@ of the Act' an$ shall be given a reasonable time to harvest the same# C(AP!ER )""" Corpor/te */r.s #ection 19. $arms +wned or +perated ,* Corporations or +ther &usiness Associations . In the case of farms owne$ or operate$ by corporations or other business associations' the following rules shall be observe$ by the ARC: In general' lan$s shall be $istribute$ $irectly to the in$ivi$ual worker(beneficiaries# In case it is not economically feasible an$ soun$ to $ivi$e the lan$' then it shall be owne$ collectively by the workers* cooperative or association which will $eal with the corporation or business association# >ntil a new agreement is entere$ into by an$ between the workers* cooperative or association an$ the corporation or business association' any agreement e,isting at the time this Act takes effect between the former an$ the previous lan$owner shall be respecte$ by both the workers* cooperative or association an$ the corporation or business association# #ection 20. /omelots and $armlots for !em,ers of Cooperatives. The in$ivi$ual members of the cooperatives or corporations mentione$ in the prece$ing section shall be provi$e$ with homelots an$ small farmlots for their family use' to be taken from the lan$ owne$ by the cooperative or corporation# #ection 21. Corporate Landowners. Corporate lan$owners may voluntarily transfer ownership over their agricultural lan$hol$ings to the Republic of the hilippines pursuant to Section 8; hereof or to )ualifie$ beneficiaries' un$er such terms an$ con$itions' consistent with this Act' as they may agree upon' sub%ect to confirmation by the 1AR# >pon certification by the 1AR' corporations owning agricultural lan$s may give their )ualifie$ beneficiaries the right to purchase such proportion of the capital stock of the corporation that the agricultural lan$' actually $evote$ to agricultural activities' bears in relation to the company*s total assets' un$er such terms an$ con$itions as may be agree$ upon by them#n no case shall the compensation receive$ by the workers at the time the shares of stocks are $istribute$ be re$uce$# The same principle shall be applie$ to associations' with respect to their e)uity or participation#

Corporations or associations which voluntarily $ivest a proportion of their capital stock' e)uity or participation in favor of their workers or other )ualifie$ beneficiaries un$er this section shall be $eeme$ to have complie$ with the provisions of the Act: provi$e$' that the following con$itions are complie$ with: a" In or$er to safeguar$ the right of beneficiaries who own shares of stocks to $ivi$en$s an$ other financial benefits' the books of the corporation or association shall be sub%ect to perio$ic au$it by certifie$ public accountants chosen by the beneficiaries9 b" Irrespective of the value of their e)uity in the corporation or association' the beneficiaries shall be assure$ of at least one !4" representative in the boar$ of $irectors' or in a management or e,ecutive committee' if one e,ists' of the corporation or association9 an$ c" Any shares ac)uire$ by such workers an$ beneficiaries shall have the same rights an$ features as all other shares# $" Any transfer of shares of stocks by the original beneficiaries shall be voi$ ab initio unless sai$ transaction is in favor of a )ualifie$ an$ registere$ beneficiary within the same corporation# If within two !8" years from the approval of this Act' the lan$ or stock transfer envisione$ above is not ma$e or reali&e$ or the plan for such stock $istribution approve$ by the ARC within the same perio$' the agricultural lan$ of the corporate owners or corporation shall be sub%ect to the compulsory coverage of this Act# #ection 21. Production%Sharing. en$ing final lan$ transfer' in$ivi$uals or entities owning' or operating un$er lease or management contract' agricultural lan$s are hereby man$ate$ to e,ecute a pro$uction( sharing plan with their farm workers or farmworkers* reorgani&ation' if any' whereby three percent !2C" of the gross sales from the pro$uction of such lan$s are $istribute$ within si,ty !@;" $ays of the en$ of the fiscal year as compensation to regular an$ other farmworkers in such lan$s over an$ above the compensation they currently receive: provi$e$' that these in$ivi$uals or entities reali&e gross sales in e,cess of five million pesos per annum unless the 1AR' upon proper application' $etermines a lower ceiling# In the event that the in$ivi$ual or entity reali&es a profit' an a$$itional ten percent !4;C" of the net profit after ta, shall be $istribute$ to sai$ regular an$ other farmworkers within ninety !5;" $ays of the en$ of the fiscal year# To forestall any $isruption in the normal operation of lan$s to be turne$ over to the farmworker(beneficiaries mentione$ above' a transitory perio$' the length of which shall be $etermine$ by the 1AR' shall be establishe$# 1uring this transitory perio$' at least one percent !4C" of the gross sales of the entity shall be $istribute$ to the managerial' supervisory an$ technical group in place at the time of the effectivity of this Act' as compensation for such transitory managerial an$ technical functions as it will perform' pursuant to an agreement that the farmworker(beneficiaries an$ the managerial' supervisory an$ technical group may conclu$e' sub%ect to the approval of the 1AR# #ection 22. Pa*ment of Shares of Cooperative or Association . Shares of a cooperative or association ac)uire$ by farmers(beneficiaries or workers(beneficiaries shall be fully pai$ for in an amount correspon$ing to the valuation as $etermine$ in the imme$iately succee$ing section# The lan$owner an$ the 0+ shall assist the farmers(beneficiaries an$ workers(beneficiaries in the payment for sai$ shares by provi$ing cre$it financing# #ection 24. )aluation of Lands. A valuation scheme for the lan$ shall be formulate$ by the ARC' taking into account the factors enumerate$ in Section 4=' in a$$ition to the nee$ to stimulate the growth of cooperatives an$ the ob%ective of fostering responsible participation of the workers(beneficiaries in the creation of wealth# In the $etermination of price that is %ust not only to the in$ivi$uals but to society as well' the ARC shall consult closely with the lan$owner an$ the workers(beneficiaries# In case of $isagreement' the price as $etermine$ by the ARC' if accepte$ by the workers(beneficiaries' shall be followe$' without pre%u$ice to the lan$owner*s right to petition the Special Agrarian Court to resolve

the issue of valuation# C(AP!ER "7 #upport #er3ices #ection 25. Creation of Support Services +ffice. There is hereby create$ the .ffice of Support Services un$er the 1AR to be hea$e$ by an >n$ersecretary# The .ffice shall provi$e general support an$ coor$inative services in the implementation of the program particularly in carrying out the provisions of the following services to farmer(beneficiaries an$ affecte$ lan$owners: 4" Irrigation facilities' especially secon$ crop or $ry season irrigation facilities9 8" Infrastructure $evelopment an$ public works pro%ects in areas an$ settlements that come un$er agrarian reform' an$ for this purpose' the preparation of the physical $evelopment plan of such settlements provi$ing suitable barangay sites' potable water an$ power resources' irrigation systems an$ other facilities for a soun$ agricultural $evelopment plan9 2" :overnment subsi$ies for the use of irrigation facilities9 ?" rice support an$ guarantee for all agricultural pro$uce9 <" /,ten$ing to small lan$owners' farmers* organi&ations the necessary cre$it' like concessional an$ collateral(free loans' for agro(in$ustriali&ation base$ on social collaterals like the guarantees of farmers* organi&ation: @" romoting' $eveloping an$ e,ten$ing financial assistance to small(an$ me$ium(scale in$ustries in agrarian reform areas9 =" Assigning sufficient numbers of agricultural e,tension workers to farmers* organi&ations9 6" >n$ertake research' $evelopment an$ $issemination of information on agrarian reform an$ low( cost an$ ecologically soun$ farm inputs an$ technologies to minimi&e reliance on e,pensive an$ importe$ agricultural inputs9 5" 1evelopment of cooperative management skills through intensive training9 4;" Assistance in the i$entification of rea$y markets for agricultural pro$uce an$ training in other various prospects of marketing9 an$tai 44" A$ministration operation management an$ fun$ing of support services' programs an$ pro%ects inclu$ing pilot pro%ects an$ mo$els relate$ to agrarian reform as $evelope$ by the 1AR# #ection 26. $unding for Support Services. In or$er to cover the e,penses an$ cost of support services' at least twenty(five percent !8<C" of all appropriations for agrarian reform shall be imme$iately set asi$e an$ ma$e available for this purpose#n a$$ition' the 1AR shall be authori&e$ to package proposals an$ receive grants' ai$ an$ other forms of financial assistance from any source# #ection 27. Support Services to the &eneficiaries . The ARC shall ensure that support services to farmers(beneficiaries are provi$e$' such as: !a" 0an$ surveys an$ titling9 !b" 0iberali&e$ terms on cre$it facilities an$ pro$uction loans9 !c" /,tension services by way of planting' cropping' pro$uction an$ post(harvest technology transfer' as well as marketing an$ management assistance an$ support to cooperatives an$ farmers* organi&ations9 !$" Infrastructure such as access trails' mini($ams' public utilities' marketing an$ storage facilities9 an$ !e" Research' pro$uction an$ use of organic fertili&ers an$ other local substances necessary in farming an$ cultivation# The ARC shall formulate policies to ensure that support services to farmer(beneficiaries shall be provi$e$

at all stages of lan$ reform# The +agong Filusang Fabuhayan sa Faunlaran !+FFF" Secretariat shall be transferre$ an$ attache$ to the 0+ ' for its supervision inclu$ing all its applicable an$ e,isting fun$s' personnel' properties' e)uipment an$ recor$s# Misuse or $iversion of the financial an$ support services herein provi$e$ shall result in sanctions against the beneficiary guilty thereof' inclu$ing the forfeiture of the lan$ transferre$ to him or lesser sanctions as may be provi$e$ by the ARC' without pre%u$ice to criminal prosecution# #ection 2 . Support Services to Landowners. The ARC with the assistance of such other government agencies an$ instrumentalities as it may $irect' shall provi$e lan$owners affecte$ by the CAR an$ prior agrarian reform programs with the following services: !a" Investment information financial an$ counseling assistance9 !b" -acilities' programs an$ schemes for the conversion or e,change of bon$s issue$ for payment of the lan$s ac)uire$ with stocks an$ bon$s issue$ by the 7ational :overnment' the Central +ank an$ other government institutions an$ instrumentalities9 !c" Marketing of 0+ bon$s' as well as promoting the marketability of sai$ bon$s in tra$itional an$ non(tra$itional financial markets an$ stock e,changes9 an$ !$" .ther services $esigne$ to utili&e pro$uctively the procee$s of the sale of such lan$s for rural in$ustriali&ation# A lan$owner who invests in rural(base$ in$ustries shall be entitle$ to the incentives grante$ to a registere$ enterprise engage$ in a pioneer or preferre$ area of investment as provi$e$ for in the .mnibus Investment Co$e of 456=' or to such other incentives as the ARC' the 0+ ' or other government financial institutions may provi$e# The 0+ shall re$eem a lan$owner*s 0+ bon$s at face value' provi$e$ that the procee$s thereof shall be investe$ in a +.I(registere$ company or in any agri(business or agro(in$ustrial enterprise in the region where the lan$owner has previously ma$e investments' to the e,tent of thirty percent !2;C" of the face value of sai$ 0+ bon$s' sub%ect to gui$elines that shall be issue$ by the 0+ # #ection 29. Land Consolidation. The 1AR shall carry out lan$ consoli$ation pro%ects to promote e)ual $istribution of lan$hol$ings' to provi$e the nee$e$ infrastructures in agriculture' an$ to conserve soil fertility an$ prevent erosion# C(AP!ER 7 #peci/l Are/s of Concern #ection 40. Special Areas of Concern. As an integral part of the Comprehensive Agrarian Reform rogram' the following principles in these special areas of concern shall be observe$: !4" Subsistence Fishing# Small fisherfolk' inclu$ing seawee$ farmers' shall be assure$ of greater access to the utili&ation of water resources# !8" Logging and Mining Concessions# Sub%ect to the re)uirement of a balance$ ecology an$ conservation of water resources' suitable areas' as $etermine$ by the 1epartment of /nvironment an$ 7atural Resources !1/7R"' in logging' mining an$ pasture areas' shall be opene$ up for agrarian settlements whose beneficiaries shall be re)uire$ to un$ertake reforestation an$ conservation pro$uction metho$s# Sub%ect to e,isting laws' rules an$ regulations' settlers an$ members of tribal communities shall be allowe$ to en%oy an$ e,ploit the pro$ucts of the forest other than timer within the logging concessions# !2" Sparsely ccupied Public !gricultural Lands # Sparsely occupie$ agricultural lan$s of the public $omain shall be surveye$' proclaime$ an$ $evelope$ as farm settlements for )ualifie$ lan$less people base$ on an organi&e$ program to ensure their or$erly an$ early $evelopment# Agricultural lan$ allocations shall be ma$e for i$eal family(si&e farms as $etermine$ by the ARC# ioneers an$ other settlers shall be treate$ e)ually in every respect#

Sub%ect to the prior rights of )ualifie$ beneficiaries' uncultivate$ lan$s of the public $omain shall be ma$e available on a lease basis to intereste$ an$ )ualifie$ parties# arties who will engage$ in the $evelopment of capital(intensive' tra$itional or pioneering crops shall be given priority# The lease perio$' which shall not be more than a total of fifty !<;" years' shall be proportionate to the amount of investment an$ pro$uction goals of the lessee# A system of evaluation an$ au$it shall be institute$# !?" "dle# !bandoned# Foreclosed and Se$uestered Lands # I$le' aban$one$' foreclose$ an$ se)uestere$ lan$s shall be planne$ for $istribution as home lots an$ family(si&e farmlots to actual occupants#f lan$ area permits' other lan$less families shall be accommo$ate$ in these lan$s# !<" Rural %omen# All )ualifie$ women members of the agricultural labor force must be guarantee$ an$ assure$ e)ual right to ownership of the lan$' e)ual shares of the farm*s pro$uce' an$ representation in a$visory or appropriate $ecision(making bo$ies# !@" &eterans and Retirees# In accor$ance with Section = of Article AGI of the Constitution' lan$less war veterans an$ veterans of military campaigns' their surviving spouse an$ orphans' retirees of the Arme$ -orces of the hilippines !A- " an$ the Integrate$ 7ational olice !I7 "' returnees' surren$erees' an$ similar beneficiaries shall be given $ue consi$eration in the $isposition of agricultural lan$s of the public $omain# !=" !griculture 'raduates# :ra$uates of agricultural schools who are lan$less shall be assiste$ by the government' through the 1AR' in their $esire to own an$ till agricultural lan$s# C(AP!ER 7" Progr/. ".ple.ent/tion #ection 41. The Presidential Agrarian Reform Council. The resi$ential Agrarian Reform Council ! ARC" shall be compose$ of the resi$ent of the hilippines as Chairman' the Secretary of Agrarian Reform as Gice(Chairman an$ the following as members9 Secretaries of the 1epartments of Agriculture9 /nvironment an$ 7atural Resources9 +u$get an$ Management9 0ocal :overnment: ublic Dorks an$ Bighways9 Tra$e an$ In$ustry9 -inance9 0abor an$ /mployment9 1irector(:eneral of the 7ational /conomic an$ 1evelopment Authority9 resi$ent' 0an$ +ank of the hilippines9 A$ministrator' 7ational Irrigation A$ministration9 an$ three !2" representatives of affecte$ lan$owners to represent 0u&on' Gisayas an$ Min$anao9 si, !@" representatives of agrarian reform beneficiaries' two !8" each from 0u&on' Gisayas an$ Min$anao' provi$e$ that one of them shall be from the cultural communities# #ection 41. "#ecutive Committee. There shall be an /,ecutive Committee !/AC.M" of the ARC compose$ of the Secretary of the 1AR as Chairman' an$ such other members as the resi$ent may $esignate' taking into account Article AIII' Section < of the Constitution# >nless otherwise $irecte$ by ARC' the /AC.M may meet an$ $eci$e on any an$ all matters in between meetings of the ARC: provi$e$' however' that its $ecisions must be reporte$ to the ARC imme$iately an$ not later than the ne,t meeting# #ection 42. Secretariat. A ARC Secretariat is hereby establishe$ to provi$e general support an$ coor$inative services such as inter(agency linkages9 program an$ pro%ect appraisal an$ evaluation an$ general operations monitoring for the ARC# The Secretariat shall be hea$e$ by the Secretary of Agrarian Reform who shall be assiste$ by an >n$ersecretary an$ supporte$ by a staff whose composition shall be $etermine$ by the ARC /,ecutive Committee an$ whose compensation shall be chargeable against the Agrarian Reform -un$# All officers an$ employees of the Secretariat shall be appointe$ by the Secretary of Agrarian Reform# #ection 44. Provincial Agrarian Reform Coordinating Committee 0PARCC+!1 . A rovincial Agrarian Reform Coor$inating Committee ! ARCC.M" is hereby create$ in each province' compose$ of a Chairman' who shall be appointe$ by the resi$ent upon the recommen$ation of the /AC.M' the rovincial Agrarian Reform .fficer as /,ecutive .fficer' an$ one representative each from the 1epartments of Agriculture' an$ of /nvironment an$ 7atural Resources an$ from the 0+ ' one representative each from e,isting farmers* organi&ations' agricultural cooperatives an$ non(governmental organi&ations in the province9 two representatives from lan$owners' at least one of whom shall be a pro$ucer representing the

principal crop of the province' an$ two representatives from farmer an$ farmworker(beneficiaries' at least one of whom shall be a farmer or farmworker representing the principal crop of the province' as members: provi$e$' that in areas where there are cultural communities' the latter shall likewise have one representative# The ARCC.M shall coor$inate an$ monitor the implementation of the CAR in the province#t shall provi$e information on the provisions of the CAR ' gui$elines issue$ by the ARC an$ on the progress of the CAR in the province# #ection 45. Province%,*%Province mplementation. The ARC shall provi$e the gui$elines for a province(by(province implementation of the CAR # The ten(year program of $istribution of public an$ private lan$s in each province shall be a$%uste$ from year by the province*s ARCC.M in accor$ance with the level of operations previously establishe$ by the ARC' in every case ensuring that support services are available or have been programme$ before actual $istribution is effecte$# #ection 46. &aranga* Agrarian Reform Committee 0&ARC1 . >nless otherwise provi$e$ in this Act' the provisions of /,ecutive .r$er 7o# 885 regar$ing the organi&ation of the +arangay Agrarian Reform Committee !+ARC" shall be in effect# #ection 47. $unctions of the &ARC. In a$$ition to those provi$e$ in /,ecutive .r$er 7o# 885' the +ARC shall have the following functions: !a" Me$iate an$ conciliate between parties involve$ in an agrarian $ispute inclu$ing matters relate$ to tenurial an$ financial arrangements9 !b" Assist in the i$entification of )ualifie$ beneficiaries an$ lan$owners within the barangay9 !c" Attest to the accuracy of the initial parcellary mapping of the beneficiary*s tillage9 !$" Assist )ualifie$ beneficiaries in obtaining cre$it from len$ing institutions9 !e" Assist in the initial $etermination of the value of the lan$9 !f" Assist the 1AR representatives in the preparation of perio$ic reports on the CAR implementation for submission to the 1AR9 !g" Coor$inate the $elivery of support services to beneficiaries9 an$ !h" erform such other functions as may be assigne$ by the 1AR# !8" The +ARC shall en$eavor to me$iate' conciliate an$ settle agrarian $isputes lo$ge$ before it within thirty !2;" $ays from its taking cogni&ance thereof#f after the lapse of the thirty $ay perio$' it is unable to settle the $ispute' it shall issue a certificate of its procee$ings an$ shall furnish a copy thereof upon the parties within seven !=" $ays after the e,piration of the thirty($ay perio$# #ection 4 . Legal Assistance. The +ARC or any member thereof may' whenever necessary in the e,ercise of any of its functions hereun$er' seek the legal assistance of the 1AR an$ the provincial' city' or municipal government# #ection 49. Rules and Regulations. The ARC an$ the 1AR shall have the power to issue rules an$ regulations' whether substantive or proce$ural' to carry out the ob%ects an$ purposes of this Act# Sai$ rules shall take effect ten !4;" $ays after publication in two !8" national newspapers of general circulation# C(AP!ER 7"" A5.inistr/ti3e A58u5ic/tion #ection 50. .uasi%(udicial Powers of the DAR. The 1AR is hereby veste$ with the primary %uris$iction to $etermine an$ a$%u$icate agrarian reform matters an$ shall have e,clusive original %uris$iction over all matters involving the implementation of agrarian reform e,cept those falling un$er the e,clusive %uris$iction of the 1epartment of Agriculture !1A" an$ the 1epartment of /nvironment an$ 7atural Resources !1/7R"# It shall not be boun$ by technical rules of proce$ure an$ evi$ence but shall procee$ to hear an$ $eci$e all cases' $isputes or controversies in a most e,pe$itious manner' employing all reasonable means to ascertain the facts of every case in accor$ance with %ustice an$ e)uity an$ the merits of the case# Towar$

this en$' it shall a$opt a uniform rule of proce$ure to achieve a %ust' e,pe$itious an$ ine,pensive $etermination for every action or procee$ing before it# It shall have the power to summon witnesses' a$minister oaths' take testimony' re)uire submission of reports' compel the pro$uction of books an$ $ocuments an$ answers to interrogatories an$ issue subpoena' an$ subpoena $uces tecum' an$ enforce its writs through sheriffs or other $uly $eputi&e$ officers#t shall likewise have the power to punish $irect an$ in$irect contempts in the same manner an$ sub%ect to the same penalties as provi$e$ in the Rules of Court# Responsible farmer lea$ers shall be allowe$ to represent themselves' their fellow farmers' or their organi&ations in any procee$ings before the 1AR: provi$e$' however' that when there are two or more representatives for any in$ivi$ual or group' the representatives shoul$ choose only one among themselves to represent such party or group before any 1AR procee$ings# 7otwithstan$ing an appeal to the Court of Appeals' the $ecision of the 1AR shall be imme$iately e,ecutory# #ection 51. $inalit* of Determination. Any case or controversy before it shall be $eci$e$ within thirty !2;" $ays after it is submitte$ for resolution# .nly one !4" motion for reconsi$eration shall be allowe$# Any or$er' ruling or $ecision shall be final after the lapse of fifteen !4<" $ays from receipt of a copy thereof# #ection 51. $rivolous Appeals. To $iscourage frivolous or $ilatory appeals from the $ecisions or or$ers on the local or provincial levels' the 1AR may impose reasonable penalties' inclu$ing but not limite$ to fines or censures upon erring parties# #ection 52. Certification of the &ARC. The 1AR shall not take cogni&ance of any agrarian $ispute or controversy unless a certification from the +ARC that the $ispute has been submitte$ to it for me$iation an$ conciliation without any success of settlement is presente$: provi$e$' however' that if no certification is issue$ by the +ARC within thirty !2;" $ays after a matter or issue is submitte$ to it for me$iation or conciliation the case or $ispute may be brought before the ARC# C(AP!ER 7""" Ju5ici/l Re3ie9 #ection 54. Certiorari. Any $ecision' or$er' awar$ or ruling of the 1AR on any agrarian $ispute or on any matter pertaining to the application' implementation' enforcement' or interpretation of this Act an$ other pertinent laws on agrarian reform may be brought to the Court of Appeals by certiorari e,cept as otherwise provi$e$ in this Act within fifteen !4<" $ays from the receipt of a copy thereof# The fin$ings of fact of the 1AR shall be final an$ conclusive if base$ on substantial evi$ence# #ection 55. 2o Restraining +rder or Preliminar* n3unction . 7o court in the hilippines shall have %uris$iction to issue any restraining or$er or writ of preliminary in%unction against the ARC or any of its $uly authori&e$ or $esignate$ agencies in any case' $ispute or controversy arising from' necessary to' or in connection with the application' implementation' enforcement' or interpretation of this Act an$ other pertinent laws on agrarian reform# #ection 56. Special Agrarian Court. The Supreme Court shall $esignate at least one !4" branch of the Regional Trial Court !RTC" within each province to act as a Special Agrarian Court# The Supreme Court may $esignate more branches to constitute such a$$itional Special Agrarian Courts as may be necessary to cope with the number of agrarian cases in each province#n the $esignation' the Supreme Court shall give preference to the Regional Trial Courts which have been assigne$ to han$le agrarian cases or whose presi$ing %u$ges were former %u$ges of the $efunct Court of Agrarian Relations# The Regional Trial Court !RTC" %u$ges assigne$ to sai$ courts shall e,ercise sai$ special %uris$iction in a$$ition to the regular %uris$iction of their respective courts# The Special Agrarian Courts shall have the powers an$ prerogatives inherent in or belonging to the Regional Trial Courts# #ection 57. Special (urisdiction. The Special Agrarian Courts shall have original an$ e,clusive %uris$iction over all petitions for the $etermination of %ust compensation to lan$owners' an$ the prosecution of all criminal offenses un$er this Act# The Rules of Court shall apply to all procee$ings before the Special

Agrarian Courts' unless mo$ifie$ by this Act# The Special Agrarian Courts shall $eci$e all appropriate cases un$er their special %uris$iction within thirty !2;" $ays from submission of the case for $ecision# #ection 5 . Appointment of Commissioners. The Special Agrarian Courts' upon their own initiative or at the instance of any of the parties' may appoint one or more commissioners to e,amine' investigate an$ ascertain facts relevant to the $ispute inclu$ing the valuation of properties' an$ to file a written report thereof with the court# #ection 59. +rders of the Special Agrarian Courts. 7o or$er of the Special Agrarian Courts on any issue' )uestion' matter or inci$ent raise$ before them shall be elevate$ to the appellate courts until the hearing shall have been terminate$ an$ the case $eci$e$ on the merits# #ection 60. Appeals. An appeal may be taken from the $ecision of the Special Agrarian Courts by filing a petition for review with the Court of Appeals within fifteen !4<" $ays receipt of notice of the $ecision9 otherwise' the $ecision shall become final# An appeal from the $ecision of the Court of Appeals' or from any or$er' ruling or $ecision of the 1AR' as the case may be' shall be by a petition for review with the Supreme Court within a non(e,ten$ible perio$ of fifteen !4<" $ays from receipt of a copy of sai$ $ecision# #ection 61. Procedure on Review. Review by the Court of Appeals or the Supreme Court' as the case may be' shall be governe$ by the Rules of Court# The Court of Appeals' however' may re)uire the parties to file simultaneous memoran$a within a perio$ of fifteen !4<" $ays from notice' after which the case is $eeme$ submitte$ for $ecision# #ection 61. Preferential Attention in Courts. All courts in the hilippines' both trial an$ appellate' shall give preferential attention to all cases arising from or in connection with the implementation of the provisions of this Act# All cases pen$ing in court arising from or in connection with the implementation of this Act shall continue to be hear$' trie$ an$ $eci$e$ into their finality' notwithstan$ing the e,piration of the ten(year perio$ mentione$ in Section < hereof# C(AP!ER 7") *in/ncing #ection 62. $unding Source. The initial amount nee$e$ to implement this Act for the perio$ of ten !4;" years upon approval hereof shall be fun$e$ from the Agrarian Reform -un$ create$ un$er Sections 8; an$ 84 of /,ecutive .r$er 7o# 885# A$$itional amounts are hereby authori&e$ to be appropriate$ as an$ when nee$e$ to augment the Agrarian Reform -un$ in or$er to fully implement the provisions of this Act# Sources of fun$ing or appropriations shall inclu$e the following: !a" rocee$s of the sales of the Assets rivati&ation Trust9 !b" All receipts from assets recovere$ an$ from sales of ill(gotten wealth recovere$ through the resi$ential Commission on :oo$ :overnment9 !c" rocee$s of the $isposition of the properties of the :overnment in foreign countries9 !$" ortion of amounts accruing to the hilippines from all sources of official foreign grants an$ concessional financing from all countries' to be use$ for the specific purposes of financing pro$uction cre$its' infrastructures' an$ other support services re)uire$ by this Act9 !e" .ther government fun$s not otherwise appropriate$# All fun$s appropriate$ to implement the provisions of this Act shall be consi$ere$ continuing appropriations $uring the perio$ of its implementation# #ection 64. $inancial ntermediar* for the CARP. The 0an$ +ank of the hilippines shall be the financial interme$iary for the CAR ' an$ shall insure that the social %ustice ob%ectives of the CAR shall

en%oy a preference among its priorities# C(AP!ER 7) %ener/l Pro3isions #ection 65. Conversion of Lands. After the lapse of five !<" years from its awar$' when the lan$ ceases to be economically feasible an$ soun$ for agricultural purposes' or the locality has become urbani&e$ an$ the lan$ will have a greater economic value for resi$ential' commercial or in$ustrial purposes' the 1AR' upon application of the beneficiary or the lan$owner' with $ue notice to the affecte$ parties' an$ sub%ect to e,isting laws' may authori&e the reclassification or conversion of the lan$ an$ its $isposition: provi$e$' that the beneficiary shall have fully pai$ his obligation# #ection 66. "#emptions from Ta#es and $ees of Land Transfers . Transactions un$er this Act involving a transfer of ownership' whether from natural or %uri$ical persons' shall be e,empte$ from ta,es arising from capital gains# These transactions shall also be e,empte$ from the payment of registration fees' an$ all other ta,es an$ fees for the conveyance or transfer thereof9 provi$e$' that all arrearages in real property ta,es' without penalty or interest' shall be $e$uctible from the compensation to which the owner may be entitle$# #ection 67. $ree Registration of Patents and Titles . All Registers of 1ee$s are hereby $irecte$ to register' free from payment of all fees an$ other charges' patents' titles an$ $ocuments re)uire$ for the implementation of the CAR # #ection 6 . mmunit* of 4overnment Agencies from -ndue nterference . 7o in%unction' restraining or$er' prohibition or man$amus shall be issue$ by the lower courts against the 1epartment of Agrarian Reform !1AR"' the 1epartment of Agriculture !1A"' the 1epartment of /nvironment an$ 7atural Resources !1/7R"' an$ the 1epartment of Eustice !1.E" in their implementation of the program# #ection 69. Assistance of +ther 4overnment "ntities. The ARC' in the e,ercise of its functions' is hereby authori&e$ to call upon the assistance an$ support of other government agencies' bureaus an$ offices' inclu$ing government(owne$ or (controlle$ corporations# #ection 70. Disposition of Private Agricultural Lands . The sale or $isposition of agricultural lan$s retaine$ by a lan$owner as a conse)uence of Section @ hereof shall be vali$ as long as the total lan$hol$ings that shall be owne$ by the transferee thereof inclusive of the lan$ to be ac)uire$ shall not e,cee$ the lan$hol$ing ceilings provi$e$ for in this Act# Any sale or $isposition of agricultural lan$s after the effectivity of this Act foun$ to be contrary to the provisions hereof shall be null an$ voi$# Transferees of agricultural lan$s shall furnish the appropriate Register of 1ee$s an$ the +ARC an affi$avit attesting that his total lan$hol$ings as a result of the sai$ ac)uisition $o not e,cee$ the lan$hol$ing ceiling# The Register of 1ee$s shall not register the transfer of any agricultural lan$ without the submission of this sworn statement together with proof of service of a copy thereof to the +ARC# #ection 71. &an5 !ortgages. +anks an$ other financial institutions allowe$ by law to hol$ mortgage rights or security interests in agricultural lan$s to secure loans an$ other obligations of borrowers' may ac)uire title to these mortgage$ properties' regar$less of area' sub%ect to e,isting laws on compulsory transfer of foreclose$ assets an$ ac)uisition as prescribe$ un$er Section 42 of this Act# #ection 71. Lease6 !anagement6 4rower or Service Contracts6 !ortgages and +ther Claims . 0an$s covere$ by this Act un$er lease' management' grower or service contracts' an$ the like shall be $ispose$ of as follows: !a" 0ease' management' grower or service contracts covering private lan$s may continue un$er their original terms an$ con$itions until the e,piration of the same even if such lan$ has' in the meantime' been transferre$ to )ualifie$ beneficiaries# !b" Mortgages an$ other claims registere$ with the Register of 1ee$s shall be assume$ by the government up to an amount e)uivalent to the lan$owner*s compensation value as provi$e$ in this Act# #ection 72. Prohi,ited Acts and +missions. The following are prohibite$:

!a" The ownership or possession' for the purpose of circumventing the provisions of this Act' of agricultural lan$s in e,cess of the total retention limits or awar$ ceilings by any person' natural or %uri$ical' e,cept those un$er collective ownership by farmer(beneficiaries# !b" The forcible entry or illegal $etainer by persons who are not )ualifie$ beneficiaries un$er this Act to avail themselves of the rights an$ benefits of the Agrarian Reform rogram# !c" The conversion by any lan$owner of his agricultural lan$ into any non(agricultural use with intent to avoi$ the application of this Act to his lan$hol$ings an$ to $ispossess his tenant farmers of the lan$ tille$ by them# !$" The willful prevention or obstruction by any person' association or entity of the implementation of the CAR # !e" The sale' transfer' conveyance or change of the nature of lan$s outsi$e of urban centers an$ city limits either in whole or in part after the effectivity of this Act# The $ate of the registration of the $ee$ of conveyance in the Register of 1ee$s with respect to title$ lan$s an$ the $ate of the issuance of the ta, $eclaration to the transferee of the property with respect to unregistere$ lan$s' as the case may be' shall be conclusive for the purpose of this Act# !f" The sale' transfer or conveyance by a beneficiary of the right to use or any other usufructuary right over the lan$ he ac)uire$ by virtue of being a beneficiary' in or$er to circumvent the provisions of this Act# #ection 74. Penalties. Any person who knowingly or willfully violates the provisions of this Act shall be punishe$ by imprisonment of not less than one !4" month to not more than three !2" years or a fine of not less than one thousan$ pesos ! 4';;;#;;" an$ not more than fifteen thousan$ pesos ! 4<';;;#;;"' or both' at the $iscretion of the court# If the offen$er is a corporation or association' the officer responsible therefore shall be criminally liable# #ection 75. Suppletor* Application of "#isting Legislation. The provisions of Republic Act 7o# 26?? as amen$e$' resi$ential 1ecree 7os# 8= an$ 8@@ as amen$e$' /,ecutive .r$er 7os# 886 an$ 885' both Series of 456=9 an$ other laws not inconsistent with this Act shall have suppletory effect# #ection 76. Repealing Clause. Section 2< of Republic Act 7o# 262?' resi$ential 1ecree 7o# 24@' the last two paragraphs of Section 48 of resi$ential 1ecree 7o# 5?@' resi$ential 1ecree 7o# 4;26' an$ all other laws' $ecrees e,ecutive or$ers' rules an$ regulations' issuances or parts thereof inconsistent with this Act are hereby repeale$ or amen$e$ accor$ingly# #ection 77. Separa,ilit* Clause. If' for any reason' any section or provision of this Act is $eclare$ null an$ voi$' no other section' provision' or part thereof shall be affecte$ an$ the same shall remain in full force an$ effect# #ection 7 . "ffectivit* Clause. This Act shall take effect imme$iately after publication in at least two !8" national newspapers of general circulation# Approve$: June 10, 19

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Republic of the Philippines Congress of the Philippines Metro Manila *ourteenth Congress !hir5 Regul/r #ession +egun an$ hel$ in Metro Manila' on Mon$ay' the twenty(seventh $ay of Euly' two thousan$ nine#

Republic Act No. 9700

August 7, 1009

AN AC! #!REN%!(EN"N% !(E C&'PRE(EN#")E A%RAR"AN RE*&R' PR&%RA' :CARP;, E7!EN,"N% !(E AC<$"#"!"&N AN, ,"#!R"=$!"&N &* A++ A%R"C$+!$RA+ +AN,#, "N#!"!$!"N% NECE##AR> RE*&R'#, A'EN,"N% *&R !(E P$RP&#E CER!A"N PR&)"#"&N# &* REP$=+"C AC! N&. 6657, &!(ER?"#E @N&?N A# !(E C&'PRE(EN#")E A%RAR"AN RE*&R' +A? &* 19 , A# A'EN,E,, AN, APPR&PR"A!"N% *$N,# !(ERE*&R Be it enacted by the Senate and House of Representatives of the Philippines in Congress assembled: : #ection1. Section 8 of Republic Act 7o# @@<=' as amen$e$' otherwise known as the Comprehensive Agrarian Reform 0aw of 4566' is hereby further amen$e$ to rea$ as follows: 3S/C# 8# (eclaration of Principles and Policies # ( It is the policy of the State to pursue a Comprehensive Agrarian Reform rogram !CAR "# The welfare of the lan$less farmers an$ farmworkers will receive the highest consi$eration to promote social %ustice an$ to move the nation towar$ soun$ rural $evelopment an$ in$ustriali&ation' an$ the establishment of owner cultivatorship of economic(si&e farms as the basis of hilippine agriculture# 3The State shall promote in$ustriali&ation an$ full employment base$ on soun$ agricultural $evelopment an$ agrarian reform' through in$ustries that make full an$ efficient use of human an$ natural resources' an$ which are competitive in both $omestic an$ foreign markets: Provided' That the conversion of agricultural lan$s into in$ustrial' commercial or resi$ential lan$s shall take into account' tillers* rights an$ national foo$ security# Further' the State shall protect -ilipino enterprises against unfair foreign competition an$ tra$e practices# 3The State recogni&es that there is not enough agricultural lan$ to be $ivi$e$ an$ $istribute$ to each farmer an$ regular farmworker so that each one can own hisHher economic(si&e family farm# This being the case' a meaningful agrarian reform program to uplift the lives an$ economic status of the farmer an$ hisHher chil$ren can only be achieve$ through simultaneous in$ustriali&ation aime$ at $eveloping a self(reliant an$ in$epen$ent national economy effectively controlle$ by -ilipinos# 3To this en$' the State may' in the interest of national welfare or $efense' establish an$ operate vital in$ustries# 3A more e)uitable $istribution an$ ownership of lan$' with $ue regar$ to the rights of lan$owners to %ust compensation' retention rights un$er Section @ of Republic Act 7o# @@<=' as amen$e$' an$ to the ecological nee$s of the nation' shall be un$ertaken to provi$e farmers an$ farmworkers with the opportunity to enhance their $ignity an$ improve the )uality of their lives through greater pro$uctivity of agricultural lan$s# 3The agrarian reform program is foun$e$ on the right of farmers an$ regular farmworkers' who are lan$less' to own $irectly or collectively the lan$s they till or' in the case of other farmworkers' to receive a %ust share of the fruits thereof# To this en$' the State shall encourage an$ un$ertake the %ust $istribution of all agricultural lan$s' sub%ect to the priorities an$ retention limits set forth in this Act' taking into account ecological' $evelopmental' an$ e)uity consi$erations' an$ sub%ect to the payment of %ust compensation# The State shall respect the right of small lan$owners' an$ shall provi$e incentive for voluntary lan$(sharing# 3As much as practicable' the implementation of the program shall be community(base$ to assure' among others' that the farmers shall have greater control of farmgate prices' an$ easier access to cre$it# 3The State shall recogni&e the right of farmers' farmworkers an$ lan$owners' as well as cooperatives an$ other in$epen$ent farmersI organi&ations' to participate in the planning' organi&ation' an$ management of the program' an$ shall provi$e support to agriculture through appropriate technology an$ research' an$ a$e)uate financial' pro$uction' marketing an$ other support services# 3The State shall recogni&e an$ enforce' consistent with e,isting laws' the rights of rural women to own an$ control lan$' taking into consi$eration the substantive e)uality between men an$ women as )ualifie$ beneficiaries' to receive a %ust share of the fruits thereof' an$ to be represente$ in

a$visory or appropriate $ecision(making bo$ies# These rights shall be in$epen$ent of their male relatives an$ of their civil status# 3The State shall apply the principles of agrarian reform' or stewar$ship' whenever applicable' in accor$ance with law' in the $isposition or utili&ation of other natural resources' inclu$ing lan$s of the public $omain' un$er lease or concession' suitable to agriculture' sub%ect to prior rights' homestea$ rights of small settlers an$ the rights of in$igenous communities to their ancestral lan$s# 3The State may resettle lan$less farmers an$ farm workers in its own agricultural estates' which shall be $istribute$ to them in the manner provi$e$ by law# 3+y means of appropriate incentives' the State shall encourage the formation an$ maintenance of economic(si&e family farms to be constitute$ by in$ivi$ual beneficiaries an$ small lan$owners# 3The State shall protect the rights of subsistence fishermen' especially of local communities' to the preferential use of communal marine an$ fishing resources' both inlan$ an$ offshore# It shall provi$e support to such fishermen through appropriate technology an$ research' a$e)uate financial' pro$uction an$ marketing assistance an$ other services# The State shall also protect' $evelop an$ conserve such resources# The protection shall e,ten$ to offshore fishing groun$s of subsistence fishermen against foreign intrusion# -ishworkers shall receive a %ust share from their labor in the utili&ation of marine an$ fishing resources# 3The State shall be gui$e$ by the principles that lan$ has a social function an$ lan$ ownership has a social responsibility# .wners of agricultural lan$ have the obligation to cultivate $irectly or through labor a$ministration the lan$s they own an$ thereby make the lan$ pro$uctive# 3The State shall provi$e incentives to lan$owners to invest the procee$s of the agrarian reform program to promote in$ustriali&ation' employment an$ privati&ation of public sector enterprises# -inancial instruments use$ as payment for lan$s shall contain features that shall enhance negotiability an$ acceptability in the marketplace# 3The State may lease un$evelope$ lan$s of the public $omain to )ualifie$ entities for the $evelopment of capital(intensive farms' an$ tra$itional an$ pioneering crops especially those for e,ports sub%ect to the prior rights of the beneficiaries un$er this Act#3 #ection 1. Section 2 of Republic Act 7o# @@<=' as amen$e$' is hereby further amen$e$ to rea$ as follows: 3S/C# 2# (efinitions# ( -or the purpose of this Act' unless the conte,t in$icates otherwise: 3, , , 3!f" -armer refers to a pro$uction of agricultural the assistance of hisHher another person un$er a thereof# 3, , , 3!4" Rural women refer to women who are engage$ $irectly or in$irectly in farming an$Hor fishing as their source of livelihoo$' whether pai$ or unpai$' regular or seasonal' or in foo$ preparation' managing the househol$' caring for the chil$ren' an$ other similar activities#3 #ection 2. Section ? of Republic Act 7o# @@<=' as amen$e$' is hereby further amen$e$ to rea$ as follows: 3S/C# ?#Scope# (The Comprehensive Agrarian Reform 0aw of 4566 shall cover' regar$less of tenurial arrangement an$ commo$ity pro$uce$' all public an$ private agricultural lan$s as provi$e$ in roclamation 7o# 424 an$ /,ecutive .r$er 7o# 885' inclu$ing other lan$s of the public $omain suitable for agriculture:Provided' That lan$hol$ings of lan$owners with a total area of five !<" hectares an$ below shall not be covere$ for ac)uisition an$ $istribution to )ualifie$ beneficiaries# 3More specifically' the following lan$s are covere$ by the CAR : 3!a" All alienable an$ $isposable lan$s of the public $omain $evote$ to or suitable for natural person whose primary livelihoo$ is cultivation of lan$ or the crops' livestock an$Hor fisheries either by himselfHherself' or primarily with imme$iate farm househol$' whether the lan$ is owne$ by himHher' or by leasehol$ or share tenancy agreement or arrangement with the owner

agriculture# 7o reclassification of forest or mineral lan$s to agricultural lan$s shall be un$ertaken after the approval of this Act until Congress' taking into account ecological' $evelopmental an$ e)uity consi$erations' shall have $etermine$ by law' the specific limits of the public $omain9 3!b" All lan$s of the public $omain in e,cess of the specific limits as $etermine$ by Congress in the prece$ing paragraph9 3!c" All other lan$s owne$ by the :overnment $evote$ to or suitable for agriculture9 an$ 3!$" All private lan$s $evote$ to or suitable for agriculture regar$less of the agricultural pro$ucts raise$ or that can be raise$ thereon# 3A comprehensive inventory system in consonance with the national lan$ use plan shall be institute$ by the 1epartment of Agrarian Reform !1AR"' in accor$ance with the 0ocal :overnment Co$e' for the purpose of properly i$entifying an$ classifying farmlan$s within one !4"year from effectivity of this Act' without pre%u$ice to the implementation of the lan$ ac)uisition an$ $istribution#3 #ection 4. There shall be incorporate$ after Section @ of Republic Act 7o# @@<=' as amen$e$' new sections to rea$ as follows: 3S/C# @(A# )*ception to Retention Limits# ( rovincial' city an$ municipal government 'units ac)uiring private agricultural lan$s by e,propriation or other mo$es of ac)uisition to be use$ for actual' $irect an$ e,clusive public purposes' such as roa$s an$ bri$ges' public markets' school sites' resettlement sites' local government facilities' public parks an$ barangay pla&as or s)uares' consistent with the approve$ local comprehensive lan$ use plan' shall not be sub%ect to the five !<"( hectare retention limit un$er this Section an$ Sections =; an$ =2!a" of Republic Act 7o# @@<=' as amen$e$: rovi$e$' That lan$s sub%ect to CAR shall first un$ergo the lan$ ac)uisition an$ $istribution process of the program: rovi$e$' further' That when these lan$s have been sub%ecte$ to e,propriation' the agrarian reform beneficiaries therein shall be pai$ %ust compensation#3 3S/C# @(+# Revie+ of Limits of Land Si,e # ( Dithin si, !@" months from the effectivity of this Act' the 1AR shall submit a comprehensive stu$y on the lan$ si&e appropriate for each type of crop to Congress for a possible review of limits of lan$ si&es provi$e$ in this Act#3 #ection 5. Section = of Republic Act 7o# @@<=' as amen$e$' is hereby further amen$e$ to rea$ as follows: 3S/C# =# Priorities# ( The 1AR' in coor$ination with the resi$ential Agrarian Reform Council ! ARC" shall plan an$ program the final ac)uisition an$ $istribution of all remaining unac)uire$ an$ un$istribute$ agricultural lan$s from the effectivity of this Act until Eune 2;' 8;4?# 0an$s shall be ac)uire$ an$ $istribute$ as follows: 3 hase .ne: 1uring the five !<"(year e,tension perio$ hereafter all remaining lan$s above fifty !<;" hectares shall be covere$ for purposes of agrarian reform upon the effectivity of this Act# All private agricultural lan$s of lan$owners with aggregate lan$hol$ings in e,cess of fifty !<;" hectares which have alrea$y been sub%ecte$ to a notice of coverage issue$ on or before 1ecember 4;' 8;;69 rice an$ corn lan$s un$er resi$ential 1ecree 7o# 8=9 all i$le or aban$one$ lan$s9 all private lan$s voluntarily offere$ by the owners for agrarian reform: Provided' That with respect to voluntary lan$ transfer' only those submitte$ by Eune 2;' 8;;5 shall be allowe$ Provided' further' That after Eune 2;' 8;;5' the mo$es of ac)uisition shall be limite$ to voluntary offer to sell an$ compulsory ac)uisition: Provided' furthermore' That all previously ac)uire$ lan$s wherein valuation is sub%ect to challenge by lan$owners shall be complete$ an$ finally resolve$ pursuant to Section 4= of Republic Act 7o# @@<=' as amen$e$: Provided' finally' as man$ate$ by the Constitution' Republic Act 7o# @@<=' as amen$e$' an$ Republic Act 7o# 26??'as amen$e$' only farmers !tenants or lessees" an$ regular farmworkers actually tilling the lan$s' as certifie$ un$er oath by the +arangay Agrarian Reform Council !+ARC" an$ atteste$ un$er oath by the lan$owners' are the )ualifie$ beneficiaries# The inten$e$ beneficiary shall state un$er oath before the %u$ge of the city or municipal court that heHshe is willing to work on the lan$ to make it pro$uctive an$ to assume the obligation of paying the amorti&ation for the compensation of the lan$ an$ the lan$ ta,es thereon9 all lan$s foreclose$ by government financial institutions9 all lan$s ac)uire$ by the resi$ential Commission on :oo$

:overnment ! C::"9 an$ all other lan$s owne$ by the government $evote$ to or suitable for agriculture' which shall be ac)uire$ an$ $istribute$ imme$iately upon the effectivity of this Act' with the implementation to be complete$ by Eune 2;' 8;489 3 hase Two: !a" 0an$s twenty(four !8?" hectares up to fifty !<;" hectares shall likewise be covere$ for purposes of agrarian reform upon the effectivity of this Act# All alienable an$ $isposable public agricultural lan$s9 all arable public agricultural lan$s un$er agro(forest' pasture an$ agricultural leases alrea$y cultivate$ an$ plante$ to crops in accor$ance with Section @' Article AIII of the Constitution9 all public agricultural lan$s which are to be opene$ for new $evelopment an$ resettlement: an$ all private agricultural lan$s of lan$owners with aggregate lan$hol$ings above twenty(four !8?" hectares up to fifty !<;" hectares which have alrea$y been sub%ecte$ to a notice of coverage issue$ on or before 1ecember 4.' 8;;6' to implement principally the rights of farmers an$ regular farmworkers' who are lan$less' to own $irectly or collectively the lan$s they till' which shall be $istribute$ imme$iately upon the effectivity of this Act' with the implementation to be complete$ by Eune 2;' 8;489 an$ 3!b" All remaining private agricultural lan$s of lan$owners with aggregate lan$hol$ings in e,cess of twenty(four !8?" hectares' regar$less as to whether these have been sub%ecte$ to notices of coverage or not' with the implementation to begin on Euly 4' 8;48 an$ to be complete$ by Eune 2;' 8;429 3 hase Three: All other private agricultural lan$s commencing with large lan$hol$ings an$ procee$ing to me$ium an$ small lan$hol$ings un$er the following sche$ule: 3!a" 0an$s of lan$owners with aggregate lan$hol$ings above ten !4;" hectares up to twenty( four !8?"hectares' insofar as the e,cess hectarage above ten !4;" hectares is concerne$' to begin on Euly 4'8;48 an$ to be complete$ by Eune 2;' 8;429 an$ 3!b" 0an$s of lan$owners with aggregate lan$hol$ings from the retention limit up to ten !4;" hectares' to begin on Euly 4' 8;42 an$ to be complete$ by Eune 2;' 8;4?9 to implement principally the right of farmers an$ regular farmworkers who are lan$less' to own $irectly or collectively the lan$s they till# 3The sche$ule of ac)uisition an$ re$istribution of all agricultural lan$s covere$ by this program shall be ma$e in accor$ance with the above or$er o f priority' which shall be provi$e$ in the implementing rules to be prepare$ by the ARC' taking into consi$eration the following: the lan$hol$ings wherein the farmers are organi&e$ an$ un$erstan$ 'the meaning an$ obligations of farmlan$ ownership9 the $istribution of lan$s to the tillers at the earliest practicable time9 the enhancement of agricultural pro$uctivity9 an$ the availability of fun$s an$ resources to implement an$ support the program: rovi$e$' That the ARC shall $esign an$ con$uct seminars' symposia' information campaigns' an$ other similar programs for farmers who are not organi&e$ or not covere$ by any lan$hol$ings# Completion by these farmers of the aforementione$ seminars' symposia' an$ other similar programs shall be encourage$ in the implementation of this Act particularly the provisions of this Section# 30an$ ac)uisition an$ $istribution shall be complete$ by Eune 2;' 8;4? on a province(by( province basis# In any case' the ARC or the ARC /,ecutive Committee ! ARC /AC.M"' upon recommen$ation by the rovincial Agrarian Reform Coor$inating Committee ! ARCC.M"' may $eclare certain provinces as priority lan$ reform areas' in which case the ac)uisition an$ $istribution of private agricultural lan$s therein un$er a$vance$ phases may be implemente$ ahea$ of the above sche$ules on the con$ition that prior phases in these provinces have been complete$: rovi$e$' That notwithstan$ing the above sche$ules' phase three !b" shall not be implemente$ in a particular province until at least ninety percent !5;C" of the provincial balance of that particular province as of Eanuary 4' 8;;5 un$er hase .ne' hase Two !a"' hase Two !b"''an$ hase Three !a"' e,clu$ing lan$s un$er the %uris$iction of the 1epartment of /nvironment an$ 7atural Resources !1/7R"' have been successfully complete$# 3The ARC shall establish gui$elines to implement the above priorities an$ $istribution scheme' inclu$ing the $etermination of who are )ualifie$ beneficiaries: rovi$e$' That an owner(tiller may be a beneficiary of the lan$ heHshe $oes not own but is actually cultivating to the e,tent of the

$ifference between the area of the lan$ heHshe owns an$ the awar$ ceiling of three !2" hectares: rovi$e$' further' That collective ownership by the farmer beneficiaries shall be sub%ect to Section 8< of Republic Act 7o# @@<=' as amen$e$: rovi$e$' furthermore' That rural women shall be given the opportunity t o participate in the $evelopment planning an$ implementation of this Act: rovi$e$' finally' That in no case shoul$ the agrarian reform beneficiaries* se,' economic' religious' social' cultural an$ political attributes a$versely affect the $istribution of lan$s#3 #ection 6. The title of Section 4@of Republic Act 7o# @@<=' as amen$e$' is hereby further amen$e$ to rea$ as follows: 3S/C# 4@# Procedure for !c$uisition and (istribution of Private Lands #3 #ection 7. Section 4=of Republic Act 7o# @@<=' as amen$e$' is hereby further amen$e$ to rea$ as follows: 3S/C# 4=# (etermination of -ust Compensation# ( In $etermining %ust compensation' the cost of ac)uisition of the lan$' the value of the stan$ing crop' the current: value of like properties' its nature' actual use an$ income' the sworn valuation by the owner' the ta, $eclarations' the assessment ma$e by government assessors' an$ seventy percent !=;C" of the &onal valuation of the +ureau of Internal Revenue !+IR"' translate$ into a basic formula by the 1AR shall be consi$ere$' sub%ect to the final $ecision of the proper court# The social an$ economic benefits contribute$ by the farmers an$ the farmworkers an$ by the :overnment t o the property as well as the nonpayment of ta,es or loans secure$ from any government financing institution on the sai$ lan$ shall be consi$ere$ as a$$itional factors to $etermine its valuation#3 #ection . There shall be incorporate$ after Section 88 of Republic Act 7o# @@<=' as amen$e$' a new section to rea$ as follows: 3S/C# 88(A# rder of Priority# ( A lan$hol$ing of a lan$owner shall be $istribute$ first to )ualifie$ beneficiaries un$er Section 88' subparagraphs !a" an$ !b" of that same lan$hol$ing up to a ma,imum of three !2" hectares each# .nly when these beneficiaries have all receive$ three !2" hectares each' shall the remaining portion of the lan$hol$ing' if any' be $istribute$ to other beneficiaries un$er Section 88' subparagraphs !c"' !$"' !e"' !f"' an$ !g"#3 #ection 9. Section 8? of Republic Act 7o# @@<=' as amen$e$' is hereby further amen$e$ to rea$ as follows: 3S/C# 8?# !+ard to Beneficiaries# ( The rights an$ responsibilities of the beneficiaries shall commence from their receipt of a $uly registere$ emancipation patent or certificate of lan$ ownership awar$ an$ their actual physical possession of the awar$e$ lan$# Such awar$ shall be complete$ in not more than one hun$re$ eighty !46;" $ays from the $ate of registration of the title in the name of the Republic of the hilippines: Provided' That the emancipation patents' the certificates of lan$ ownership awar$' an$ other titles issue$ un$er any agrarian reform program shall be in$efeasible an$ imprescriptible after one !4" year from its registration with the .ffice of the Registry of 1ee$s' sub%ect to the con$itions' limitations an$ )ualifications of this Act' the property registration $ecree' an$ other pertinent laws# The emancipation patents or the certificates of lan$ ownership awar$ being titles brought un$er the operation of the torrens system' are conferre$ with the same in$efeasibility an$ security affor$e$ to all titles un$er the sai$ system' as provi$e$ for by resi$ential 1ecree 7o# 4<85' as amen$e$ by Republic Act 7o# @=28# 3It is the ministerial $uty of the Registry of 1ee$s to register the title of the lan$ in the name of the Republic of the hilippines' after the 0an$ +ank of the hilippines !0+ " has certifie$ that the necessary $eposit in the name of the lan$owner constituting full payment in cash or in bon$ with $ue notice to the lan$owner an$ the registration of the certificate of lan$ ownership awar$ issue$ to the beneficiaries' an$ to cancel previous titles pertaining thereto# 3I$entifie$ an$ )ualifie$ agrarian reform beneficiaries' base$ on Section 88 of Republic Act 7o# @@<=' as' amen$e$' shall have usufructuary rights over the awar$e$ lan$ as soon as the 1AR takes possession of such lan$' an$ such right shall not be $iminishe$ even pen$ing the awar$ing of the emancipation patent or the certificate of lan$ ownership awar$# 3All cases involving the cancellation of registere$ emancipation patents' certificates of lan$

ownership awar$' an$ other titles issue$ un$er any agrarian reform program are within the e,clusive an$ original %uris$iction of the Secretary of the 1AR#3 #ection 10. Section 8< of Republic Act So# @@<=' as amen$e$' is hereby further amen$e$ to rea$ as follows: 3S/C#8<# !+ard Ceilings for Beneficiaries# ( +eneficiaries shall be awar$e$ an area not e,cee$ing three !2" hectares' which may cover a contiguous tract of lan$ or several parcels of lan$ cumulate$ up to the prescribe$ awar$ limits# The $etermination of the si&e of the lan$ for $istribution shall consi$er crop type' 'soil type' weather patterns an$ other pertinent variables or factors which are $eeme$ critical for the success of the beneficiaries# 3-or purposes of this Act' a lan$less beneficiary is one who owns less than three !2" hectares of agricultural lan$# 3Dhenever appropriate' the 1AR shall encourage the agrarian reform beneficiaries to form or %oin farmers* cooperatives for purposes of affiliating with e,isting cooperative banks in their respective provinces or localities' as well as forming blocs of agrarian reform beneficiaries' corporations' an$ partnerships an$ %oining other farmers* collective organi&ations' inclu$ing irrigators* associations: rovi$e$' That the agrarian reform beneficiaries shall be assure$ of correspon$ing shares in the corporation' seats in the boar$ of $irectors' an$ an e)uitable share in the profit# 3In general' the lan$ awar$e$ to a farmer( beneficiary shoul$ be in the form of an in$ivi$ual title' covering one !4"contiguous tract or several parcels of lan$ cumulate$ up to a ma,imum of three !2" hectares# 3The beneficiaries may opt for collective ownership' such as co(workers or farmers cooperative or some other form of collective organi&ation an$ for the issuance of collective ownership titles: rovi$e$' That the total area that may be awar$e$ shall not e,cee$ the total number of co(owners or members of the cooperative or collective organi&ation multiplie$ by the awar$ limit above prescribe$' e,cept in meritorious cases as $etermine$ by the ARC# 3The con$itions for the issuance of collective titles are as follows: 3!a" The current farm management system of the lan$ covere$ by CAR appropriate for in$ivi$ual farming of farm parcels9 will not be

3!b" The farm labor system is speciali&e$' where the farmworkers are organi&e$ by functions an$ not by specific parcels such as spraying' wee$ing' packing an$ other similar functions9 3!c" The potential beneficiaries are currently not farming in$ivi$ual parcels hut collectively work on large contiguous areas9 an$ 3!$" The farm consists of multiple crops being farme$ in an integrate$ manner or inclu$es non( crop pro$uction areas that are necessary for the viability of farm operations' such as packing plants' storage areas' $ikes' an$ other similar facilities that cannot be sub$ivi$e$ or assigne$ to in$ivi$ual farmers# 3-or i$le an$ aban$one$ lan$s or un$er$evelope$ agricultural lan$s to be covere$ by CAR ' collective ownership shall be allowe$ only if the beneficiaries opt for it an$ there is a clear $evelopment plan that woul$ re)uire collective farming or integrate$ farm operations e,hibiting the con$itions $escribe$ above# .therwise' the lan$ awar$e$ to a farmer(beneficiary shoul$ be in the form of a n in$ivi$ual title' covering one !4" contiguous tract or several parcels of lan$ cumulate$ up to a ma,imum of three !2" hectares# 3In case of collective ownership' title to the property shall be issue$ in the name of the co( owners or the cooperative or collective organi&ation as the case may be# If the certificates of lan$ ownership awar$ are given to cooperatives then the names of the beneficiaries must also be liste$ in the same certificate of lan$ ownership awar$# 3Dith regar$ to e,isting collective certificates of lan$ ownership awar$' the 1AR shoul$ imme$iately un$ertake the parceli&ation of sai$ certificates of lan$ ownership awar$' particularly those that $o

not e,hibit the con$itions for collective ownership outline$ above# The 1AR shall con$uct a review an$ re$ocumentation of all the collective certificates of lan$ ownership awar$# The 1AR shall prepare a prioriti&e$ list of certificates of lan$ ownership awar$ to be parceli&e$# The parceli&ation shall commence imme$iately upon approval of this Act an$ shall not e,cee$ a perio$ of three !2" years# .nly those e,isting certificates of lan$ ownership awar$ that are collectively farme$ or are operate$ in an integrate$ manner shall remain as collective#3 #ection 11. Section 8@ of Republic Act 7o# @@<=' as amen$e$' is hereby further amen$e$ to rea$ as follows: 3S/C# 8@# Payment by Beneficiaries# ( 0an$s awar$e$ pursuant to this Act shall be pai$ for by the beneficiaries to the 0+ in thirty !2;" annual amorti&ations at si, percent !@C" interest per annum# The annual amorti&ation shall start one !4" year from the $ate of the certificate of lan$ ownership awar$ registration# Bowever' if the occupancy took place after the certificate of lan$ ownership awar$ registration' the amorti&ation shall start one !4" year from actual occupancy# The payments for the first three !2" years after the awar$ shall be at re$uce$ amounts as establishe$ by the ARC: rovi$e$' That the first five !<" annual payments may not be more than five percent !<C" of the value of the annual gross pro$uction as establishe$ by the 1AR# Shoul$ the sche$ule$ annual payments after the fifth !<th" year e,cee$ ten percent !4;C" of the annual gross pro$uction an$ the failure to pro$uce accor$ingly is not $ue to the beneficiary*s fault' the 0+ shall re$uce the interest rate an$Hor re$uce the principal obligation to make the repayment affor$able# 3The 0+ shall have a lien by way of mortgage on the lan$ awar$e$ to the beneficiary9 an$ this mortgage may be foreclose$ by the 0+ for non(payment of an aggregate of three !2" annual amorti&ations# The 0+ shall a$vise the 1AR of such procee$ings an$ the latter shall subse)uently awar$ the forfeite$ lan$hol$ing to other )ualifie$ beneficiaries# A beneficiary whose lan$' as provi$e$ herein' has been foreclose$ shall thereafter be permanently $is)ualifie$ from becoming a beneficiary un$er this Act#3 #ection 11. Section 8= of Republic Act 7o# @@<=' as amen$e$' is hereby further amen$e$ to rea$ as follows: 3S/C# 8=# .ransferability of !+arded Lands# ( 0an$s ac)uire$ by beneficiaries un$er this Act or other agrarian reform laws shall not be sol$' transferre$ or conveye$ e,cept through here$itary succession' or to the government' or to the 0+ ' or to other )ualifie$ beneficiaries through the 1AR for a perio$ of ten !4;" years: Provided' ho+ever' That the chil$ren or the spouse of the transferor shall have a right to repurchase the lan$ from the government or 0+ within a perio$ of two !8" years# 1ue notice of the availability of the lan$ shall be given by the 0+ to the +ARC of the barangay where the lan$ is situate$# The ARCC.M' as herein provi$e$' shall' in turn' be given $ue notice thereof by the +ARC# 3The title of the lan$ awar$e$ un$er the agrarian reform must in$icate that it is an emancipation patent or a certificate of lan$ ownership awar$ an$ the subse)uent transfer title must also in$icate that it is an emancipation patent or a certificate of lan$ ownership awar$# 3If the lan$ has not yet been fully pai$ by the beneficiary' the rights to the lan$ may be transferre$ or conveye$' with prior approval of the 1AR' to any heir of the beneficiary or to any other beneficiary who' as a con$ition for such transfer or conveyance' shall cultivate the lan$ himselfHherself# -ailing compliance herewith' the lan$ shall be transferre$ to the 0+ which shall give $ue notice of the availability of the lan$ in the manner specifie$ in the imme$iately prece$ing paragraph# 3In the event of such transfer to the 0+ ' the latter shall compensate the beneficiary in one lump sump for the amounts the latter has alrea$y pai$' together with the value of improvements heHshe has ma$e on the lan$#3 #ection 12. Section 2@ of Republic Act 7o# @@<=' as amen$e$' is hereby further amen$e$ to rea$ as follows: 3S/C# 2@# Funding for Support Services# ( In or$er to cover the e,penses an$ cost of support services' at least forty percent !?;C" of all appropriations for agrarian reform $uring the five !<" year

e,tension perio$ shall be imme$iately set asi$e an$ ma$e available for this purpose: Provided' That the 1AR shall pursue integrate$ lan$ ac)uisition an$ $istribution an$ support services strategy re)uiring a plan to be $evelope$ parallel to the lan$ ac)uisition an$ $istribution process# The planning an$ implementation for lan$ ac)uisition an$ $istribution shall be han$(in(han$ with support services $elivery: Provided' further' That for the ne,t five !<" years' as far as practicable' a minimum of two !8" Agrarian Reform Communities !ARCs" shall be establishe$ by the 1AR' in coor$ination with the local government units' non(governmental organi&ations' *community(base$ cooperatives an$ people*s organi&ations in each legislative $istrict with a pre$ominant agricultural population: Provided' furthermore' That the areas in which the ARCS are to be establishe$ shall have been substantially covere$ un$er the provisions of this Act an$ other agrarian or lan$ reform laws: Provided' finally' That a complementary support services $elivery strategy for e,isting agrarian reform beneficiaries that are not in barangays within the ARCs shall be a$opte$ by the 1AR# 3-or this purpose' an Agrarian Reform Community is compose$ an$ manage$ by agrarian reform beneficiaries who shall be willing to be organi&e$ an$ to un$ertake the integrate$ $evelopment of an area an$Hor their organi&ationsH cooperatives# In each community' the 1AR' together with the agencies an$ organi&ations abovementione$' shall i$entify the farmers* association' cooperative or their respective fe$erations approve$ by the farmers( beneficiaries that shall take the lea$ in the agricultural $evelopment of the area# In a$$ition' the 1AR' in close coor$ination with the congressional oversight committee create$ herein' with $ue notice to the concerne$ representative of the legislative $istrict prior to implementation shall be authori&e$ to package proposals an$ receive grants' ai$s an$ other forms of financial assistance from any source3 #ection 14. Section 2= of Republic Act 7o# @@<=' as amen$e$' is hereby further amen$e$ to rea$ as follows: 3S/C# 2=# Support Services for the !grarian Reform Beneficiaries # ( The State shall a$opt the integrate$ policy of support services $elivery to agrarian reform beneficiaries# To this en$' the 1AR' the 1epartment of -inance' an$ the +angko Sentral ng ilipinas !+S " shall institute reforms to liberali&e access to cre$it by agrarian reform beneficiaries# The ARC shall ensure that support services for agrarian reform beneficiaries are provi$e$' such as: 3!a" 0an$ surveys an$ titling9 3!b" Sociali&e$ terms on agricultural cre$it facilities9 3Thirty percent !2;C" of all appropriations for support services referre$ to in Section 2@ of Republic Act 7o# @@<=' as amen$e$' shall be imme$iately set asi$e an$ ma$e available for agricultural cre$it facilities: Provided' That one(thir$ !4H2" of this segregate$ appropriation shall be specifically allocate$ for subsi$ies to support the initial capitali&ation for agricultural pro$uction to new agrarian reform beneficiaries upon the awar$ing of the emancipation patent or the certificate of lan$ ownership awar$ an$ the remaining two(thir$s !8H2" shall be allocate$ to provi$e access to sociali&e$ cre$it to e,isting agrarian reform beneficiaries' inclu$ing the leasehol$ers: Provided'further' the 0+ an$ other concerne$ government financial institutions' accre$ite$ savings an$ cre$it cooperatives' financial service cooperatives an$ accre$ite$ cooperative banks shall provi$e the $elivery system for $isbursement of the above financial assistance to in$ivi$ual agrarian reform beneficiaries' hol$ers of collective titles an$ cooperatives# 3-or this purpose' all financing institutions may accept as collateral for loans the purchase or$ers' marketing agreements or e,pecte$ harvests: Provided' That loans obtaine$ shall be use$ in the improvement or $evelopment of the farm hol$ing of the agrarian reform beneficiary or the establishment of facilities which shall enhance pro$uction or marketing of agricultural pro$ucts of increase farm income therefrom: Provided' further' That of the remaining seventy percent !=;C" for the support services' fifteen percent !4<C" shall be earmarke$ for farm inputs as re)ueste$ by the $uly accre$ite$ agrarian reform beneficiaries* organi&ations' such as' but not limite$ to: !4" see$s' see$lings an$Hor planting materials9 !8" organic fertili&ers9 !2" pestici$es9 !?"herbici$es9 an$ !<" farm animals'

implementsH*machineries9 an$ five percent !<C" for seminars' trainings an$ the like to help empower agrarian reform beneficiaries# 3!c" /,tension services by way of planting' cropping' pro$uction an$ post(harvest technology transfer' as well as marketing an$ management assistance an$ support to cooperatives an$ farmers* organi&ations9 3!$" Infrastructure such as' but not limite$ to' access trails' mini($ams' public utilities' marketing an$ storage facilities9 3!e" Research' pro$uction an$ use of organic fertili&ers an$ other local substances necessary in farming an$ cultivation9 an$ 3!f" 1irect an$ active 1AR assistance in the e$ucation an$ organi&ation of actual an$ potential agrarian reform beneficiaries' at the barangay' municipal' city' provincial' an$ national levels' towar$s helping them un$erstan$ their rights an$ responsibilities as owner( cultivators $eveloping farm( relate$ trust relationships among themselves an$ their neighbors' an$ increasing farm pro$uction an$ profitability with the ultimate en$ of empowering them to chart their own $estiny# The representatives of the agrarian reform beneficiaries to the ARC shall be chosen from the *nominees of the $uly accre$ite$ agrarian reform beneficiaries* organi&ations' or in its absence' from organi&ations of actual an$ potential agrarian reform beneficiaries as forwar$e$ to an$ processe$ by the ARC /AC.M# 3The ARC shall formulate policies to ensure that support services for agrarian reform beneficiaries shall be provi$e$ at all stages of the program implementation with the concurrence of the concerne$ agrarian reform beneficiaries# 3The ARC shall likewise a$opt' implement' an$ monitor policies an$ programs to ensure the fun$amental e)uality of women an$ men in the agrarian reform program as well as respect for the human rights' social protection' an$ $ecent working con$itions of both pai$ an$ unpai$ men an$ women farmer(beneficiaries# 3The Bagong /ilusang /abuhayan sa /aunlaran !+FFF" Secretariat shall be transferre$ an$ attache$ t o the 0+ ' for its supervision inclu$ing all its applicable an$ e,isting fun$s' personnel' properties' e)uipment an$ recor$s# 3Misuse or $iversion of the financial an$ support services herein provi$e$ shall result in sanctions against the beneficiary guilty thereof' inclu$ing the forfeiture of the lan$ transferre$ to himHher or lesser sanctions as may be provi$e$ by the ARC' without pre%u$ice to criminal prosecution#3 #ection 15. There shall be incorporate$ after Section 2= of Republic Act 7o# @@<=' as amen$e$' a new section to rea$ as follows: 3S/C# 2=(A# )$ual Support Services for Rural %omen# ( Support services shall be e,ten$e$ e)ually to women an$ men agrarian reform beneficiaries# 3The ARC shall ensure that these support services' as provi$e$ for in this Act' integrate the specific nee$s an$ well(being of women farmer( beneficiaries taking into account the specific re)uirements of female family members of farmer( beneficiaries# 3The ARC shall also ensure that rural women will be able to participate in all community activities# To this effect' rural women are entitle$ to self(organi&ation in or$er to obtain e)ual access to economic opportunities an$ to have access to agricultural cre$it an$ loans' marketing facilities an$ technology' an$ other support services' an$ e)ual treatment in lan$ reform an$ resettlement schemes# 3The 1AR shall establish an$ maintain a women*s $esk' which will be primarily responsible for formulating an$ implementing programs an$ activities relate$ to the protection an$ promotion of women*s rights' as well as provi$ing an avenue where women can register their complaints an$ grievances principally relate$ t o their rural activities#3 #ection 16. Section 26 of Republic Act 7o# @@<=' as amen$e$' is hereby further amen$e$ to rea$ as

follows: 3S/C# 26# Support Services for Lando+ners# ( The ARC' with the assistance of such other government agencies an$ instrumentalities as it may $irect' shall provi$e lan$owners affecte$ by the CAR an$ prior agrarian reform programs with the following services: 3!a" Investment information' financial an$ counseling assistance' particularly investment information on government(owne$ an$Hor (controlle$ corporations an$ $isposable assets of the government in pursuit of national in$ustriali&ation an$ economic in$epen$ence: 3!b" -acilities' programs an$ schemes for the conversion or e,change of bon$s issue$ for payment of the lan$s ac)uire$ with stocks an$ bon$s issue$ by the 7ational :overnment' the +S an$ other government institutions an$ instrumentalities9 3!c" Marketing of agrarian reform bon$s' as well as promoting the marketability of sai$ bon$s in tra$itional an$ non(tra$itional financial markets an$ stock e,changes: an$Hor 3!$" .ther services $esigne$ t o utili&e pro$uctively the procee$s of the sale of such lan$s for rural in$ustriali&ation# 3A lan$owner who invests in rural(base$ in$ustries shall be entitle$ to the incentives grante$ to a registere$ enterprise engage$ in a pioneer or preferre$ area of investment as provi$e$ for in the .mnibus Investment Co$e of 456='or to such other incentives as the ARC' the 0+ ' or other government financial institutions shall provi$e# 3The 0+ shall re$eem a lan$owner*s agrarian reform bon$s at face value as an incentive: rovi$e$' That at least fifty percent !<;C" of the procee$s thereof shall be investe$ in a +oar$ of Investments !+.I"(registere$ company or in any agri(business or agro(in$ustrial enterprise in the region where the CAR (covere$ lan$hol$ing is locate$# An a$$itional incentive of two percent !8C" in cash shall be pai$ to a lan$owner who maintains hisHher enterprise as a going concern for five !<" years or keeps hisHher investments in a +.I( registere$ firm for the same perio$: rovi$e$' further' That the rights of the agrarian reform beneficiaries are not' in any way' pre%u$ice$ or impaire$ thereby# 3The 1AR' the 0+ an$ the 1epartment of Tra$e an$ In$ustry shall %ointly formulate the program to carry out these provisions un$er the supervision of the ARC: rovi$e$' That in no case shall the lan$owners* se,' economic' religious' social' cultural an$ political attributes e,clu$e them from accessing these support services#3 #ection 17. Section ?4 of Republic Act 7o# @@<=' as amen$e$' is hereby further amen$e$ to rea$ as follows: 3S/C# ?4# .he Presidential !grarian Reform Council# ( The resi$ential Agrarian Reform Council ! ARC" shall be compose$ of the resi$ent of the hilippines as Chairperson' the Secretary of Agrarian Reform as Gice(Chairperson an$ the following as members: Secretaries of the 1epartments of Agriculture9 /nvironment an$ 7atural Resources9 +u$get an$ Management9 Interior an$ 0ocal :overnment9 ublic Dorks an$ Bighways9 Tra$e an$ In$ustry9 -inance9 an$ 0abor an$ /mployment9 1irector(:eneral of the 7ational /conomic an$ 1evelopment Authority9 resi$ent' 0an$ +ank of the hilippines9 A$ministrator' 7ational Irrigation A$ministration9 A$ministrator' 0an$ Registration Authority9 an$ si, !@" representatives of affecte$ lan$owners to represent 0u&on' Gisayas an$ Min$anao9 si, !@" representatives of agrarian reform beneficiaries' two !8" each from 0u&on' Gisayas an$ Min$anao: Provided' That at least one !4" of them shall be from the in$igenous peoples: Provided' further' That at least one !4"of them shall come from a $uly recogni&e$ national organi&ation of rural women or a national organi&ation of agrarian reform beneficiaries with a substantial number of women members: rovi$e$' finally' That at least twenty percent !8;C" of the members of the ARC shall be women but in no case shall they be less than two !J"#3 #ection 1 . Section <; of Republic Act 7o# @@<=' as amen$e$' is hereby further amen$e$ to rea$ as follows: 3S/C# <;# 0uasi1-udicial Po+ers of the (!R# ( The 1AR is hereby veste$ with primary %uris$iction to $etermine an$ a$%u$icate agrarian reform matters an$ shall have e,clusive original %uris$iction

over all matters involving the implementation of agrarian reform' e,cept those falling un$er the e,clusive %uris$iction of the 1epartment of Agriculture !1A" an$ the 1/7R# 3It shall not be boun$ by technical rules of proce$ure an$ evi$ence but shall procee$ to hear an$ $eci$e all cases' $isputes or controversies in a most e,pe$itious manner' employing all reasonable means to ascertain the facts of every case in accor$ance with %ustice an$ e)uity an$ the merits of the case# Towar$ this en$' it shall a$opt a uniform rule of proce$ure to achieve a %ust' e,pe$itious an$ ine,pensive $etermination of every action or procee$ing before it# 3It shall have the power to summon witnesses' a$minister oaths' take testimony' re)uire submission of reports' compel the pro$uction of books an$ $ocuments an$ answers to interrogatories an$ issuesubpoena' an$ subpoena duces tecum an$ to enforce its writs through sheriffs or other $uly $eputi&e$ officers# It shall likewise have the power to punish $irect an$ in$irect contempts in the same manner an$ sub%ect to the same penalties as provi$e$ in the Rules of Court# 3Responsible farmer lea$ers shall be allowe$ to represent themselves' their fellow farmers' or their organi&ations in any procee$ings before the 1AR rovi$e$' however' That when there are two or more representatives for any in$ivi$ual or group' the representatives shoul$ choose only one among themselves to represent such party or group before any 1A+ procee$ings# 37otwithstan$ing an appeal to the Court of Appeals' the $ecision of the 1AR shall be imme$iately e,ecutory e,cept a $ecision or a portion thereof involving solely the issue of %ust compensation#3 #ection 19. Section <; of Republic Act 7o# @@<=' as amen$e$' is hereby further amen$e$ by a$$ing Section <;(A to rea$ as follows: 3S/C# <;(A# )*clusive -urisdiction on !grarian (ispute# ( 7o court or prosecutor*s office shall take cogni&ance of cases pertaining to the implementation of the CAR e,cept those provi$e$ un$er Section <= of Republic Act 7o# @@<=' as amen$e$# If there is an allegation from any of the parties that the case is agrarian in nature an$ one of the parties is a farmer' farmworker' or tenant' the case shall be automatically referre$ by the %u$ge or the prosecutor to the 1AR which shall $etermine an$ certify within fifteen !4<" $ays from referral whether an agrarian $ispute e,ists: rovi$e$' That from the $etermination of the 1AR' an aggrieve$ party shall have %u$icial recourse# In cases referre$ by the municipal trial court an$ the prosecutor*s office' the appeal shall be with the proper regional trial court' an$ in cases referre$ by the regional trial court' the appeal shall be to the Court of Appeals# 3In cases where regular courts or )uasi(%u$icial bo$ies have competent %uris$iction' agrarian reform beneficiaries or i$entifie$ beneficiaries an$Hor their associations shall have legal stan$ing an$ interest to intervene concerning their in$ivi$ual or collective rights an$Hor interests un$er the CAR # 3The fact of non(registration of such associations with the Securities an$ /,change Commission' or Cooperative 1evelopment Authority' or any concerne$ government agency shall not be use$ against them to $eny the e,istence of their legal stan$ing an$ interest in a case file$ before such courts an$ )uasi(%u$icial bo$ies#3 #ection 10. Section << of Republic Act 7o# @@<=' as amen$e$' is hereby further amen$e$ to rea$ as follows: 3S/C# <<# 2o Restraining rder or Preliminary "n3unction# (/,cept for the Supreme Court' no court in the hilippines shall have %uris$iction to issue any restraining or$er or writ of preliminary in%unction against the ARC' the 1AR' or any of its $uly authori&e$ or $esignate$ agencies in any case' $ispute or controversy arising from' necessary to' or in connection with the application' implementation' enforcement' or interpretation of this Act an$ other pertinent laws on agrarian reform#3 #ection 11. Section @2 of Republic Act 7o# @@<=' as amen$e$' is hereby further amen$e$ to rea$ as follows: 3S/C# @2# Funding Source# ( The amount nee$e$ to further implement the CAR as provi$e$ in this Act' until Eune 2;' 8;4?' upon e,piration of fun$ing un$er Republic Act 7o# 6<28 an$ other pertinent laws' shall be fun$e$ from the Agrarian Reform -un$ an$ other fun$ing sources in the amount of at least .ne hun$re$ fifty billion pesos ! 4<;';;;';;;';;;#;;"#

3A$$itional amounts are hereby authori&e$ to be appropriate$ as an$ when nee$e$ to augment the Agrarian Reform -un$ in or$er to fully implement the provisions of this Act $uring the five !<"(year e,tension perio$# 3Sources of fun$ing or appropriations shall inclu$e the following: 3!a" rocee$s of the sales of the rivati&ation an$ Management .ffice ! M."9 3e"All receipts from assets recovere$ an$ from sales of ill(gotten wealth recovere$ through the C:: e,clu$ing the amount appropriate$ for compensation to victims of human rights violations un$er the applicable law9 3!c" rocee$s of the $isposition an$ $evelopment of the properties of the :overnment in foreign countries' for the specific purposes of financing pro$uction cre$its' infrastructure an$ other support services re)uire$ by this Act9 3!$" All income an$' collections of whatever form an$ nature arising from the agrarian reform operations' pro%ects an$ programs of the 1AR an$ other CAR implementing agencies9 3!e" ortion of amounts accruing to the hilippines from all sources of official foreign# ai$ grants an$ concessional financing from all countries' to be use$ for the specific purposes of financing pro$uctions' cre$its' infrastructures' an$ other support services re)uire$ by this Act: 3!f" Kearly appropriations of no less than -ive billion pesos ! <';;;';;;';;;#;;" from the :eneral Appropriations Act9 3!g" :ratuitous financial assistance from legitimate sources9 an$ 3!h" .ther government fun$s not otherwise appropriate$# 3All fun$s appropriate$ to implement the provisions of this Act shall be consi$ere$ continuing appropriations $uring the perio$ of its implementation: Provided' That if the nee$ arises' specific amounts for bon$ re$emptions' interest payments an$ other e,isting obligations arising from the implementation of the program shall be inclu$e$ in the annual :eneral Appropriations Act: Provided' further' That all %ust compensation payments to lan$owners' inclu$ing e,ecution of %u$gments therefore' shall only be source$ from the Agrarian Reform -un$: Provided' ho+ever' That %ust compensation payments that cannot be covere$ within the approve$ annual bu$get of the program shall be chargeable against the $ebt service program of the national government' or any unprogramme$ item in the :eneral Appropriations Act: Provided' finally' That after the completion of the lan$ ac)uisition an$ $istribution component of the CAR ' the yearly appropriation shall be allocate$ fully to support services' agrarian %ustice $elivery an$ operational re)uirements of the 1AR an$ the other CAR implementing agencies#3 #ection 11. Section @< of Republic Act 7o# @@<=' as amen$e$' is hereby further amen$e$ to rea$ as follows: 3S/C# @<# Conversion of Lands# ( After the lapse of five !<" years from its awar$' when the lan$ ceases to be economically feasible an$ soun$ for agricultural purposes' or the locality has become urbani&e$ an$ the lan$ will have a greater economic value for resi$ential' commercial or in$ustrial purposes' the 1AR' upon application of the beneficiary or the lan$owner with respect only to hisHher retaine$ area which is tenante$' with $ue notice to the affecte$ parties' an$ sub%ect to e,isting laws' may authori&e the reclassification or conversion of the lan$ an$ its $isposition: Provided' That if the applicant is a beneficiary un$er agrarian laws an$ the lan$ sought to be converte$ is the lan$ awar$e$ to himHher or any portion thereof' the applicant' after the conversion is grante$' shall invest at least ten percent !4;C"of the procee$s coming from the conversion in government securities: Provided' further' That the applicant upon conversion shall fully pay the price of the lan$: Provided' furthermore' That irrigate$ an$ irrigable lan$s' shall not be sub%ect to conversion: Provided' finally' That the 7ational Irrigation A$ministration shall submit a consoli$ate$ $ata on the location nationwi$e of all irrigable lan$s within one !4"year from the effectivity of this Act#

3-ailure to implement the conversion plan within five !<" years from the approval of such conversion plan or any violation of the con$itions of the conversion or$er $ue to the fault of the applicant shall cause the lan$ to automatically be covere$ by CAR #3 #ection 12. Section @6 of Republic Act 7o# @@<=' as amen$e$' is hereby further amen$e$ to rea$ as follows: 3S/C# @6# "mmunity of 'overnment !gencies from 4ndue "nterference # ( In cases falling within their %uris$iction' no in%unction' restraining or$er' prohibition or man$amus shall be issue$ by the regional trial courts' municipal trial courts' municipal circuit trial courts' an$ metropolitan trial courts against the 1AR' the 1A' the 1/7R' an$ the 1epartment of Eustice in their implementation of the program#3 #ection 14. Section =2 of Republic Act 7o# @@<=' as amen$e$' is hereby further amen$e$ to rea$ as follows: 3S/C# =2# Prohibited !cts and missions# ( The following are prohibite$: 3!a" The ownership or possession' for the purpose of circumventing the provisions of this Act' of agricultural lan$s in e,cess of the total retention limits or awar$ ceilings by any person' natural or %uri$ical' e,cept those un$er collective ownership by farmer(beneficiaries9 3!b" The forcible entry or illegal $etainer by persons who are not )ualifie$ beneficiaries un$er this Act to avail themselves of the rights an$ benefits of the Agrarian Reform rogram: 3!c" Any conversion by ' any lan$owner of hisHher agricultural* lan$ into any non(agricultural use with intent to avoi$ the application of this Act to hisHher lan$hol$ings an$ to $ispossess hisHher bonafi$e tenant farmers: 3!$" The malicious an$ willful prevention or obstruction by any person' association or entity of the implementation of the CAR 9 3!e" The sale' transfer' conveyance or change of the nature of lan$s outsi$e of urban centers an$ city limits either in whole or in part after the effectivity of this Act' e,cept after final completion of the appropriate conversion un$er Section @< of Republic Act 7o# @@<=' as amen$e$# The $ate of the registration of the $ee$ of conveyance in the Register of 1ee$s with respect to title$ lan$s an$ the $ate of the issuance of the ta, $eclaration to the transferee of the property with respect to unregistere$ lan$s' as the case may be' shall be conclusive for the purpose of this Act9 3!f" The sale' transfer or conveyance by a beneficiary of the right to use or any other usufructuary right over the lan$ heHshe ac)uire$ by virtue of being a beneficiary' in or$er to circumvent the provisions of this Act9 3!g" The un%ustifie$' willful' an$ malicious act by a responsible officer or officers of the government through the following: 3!4" The $enial of notice an$Hor reply to lan$owners9 3!8" The $eprivation of retention rights9 3!2" The un$ue or inor$inate $elay in the preparation of claim fol$ers9 or 3!?" Any un$ue $elay' refusal or failure in the payment of %ust compensation9 3!h" The un$ue $elay or un%ustifie$ failure of the 1AR' the 0+ ' the ARC' the ARCC.M' an$ any concerne$ government agency or any government official or employee to submit the re)uire$ report' $ata an$Hor other official $ocument involving the implementation of the provisions of this Act' as re)uire$ by the parties or the government' inclu$ing the Bouse of Representatives an$ the Senate of the hilippines as well as their respective committees' an$ the congressional oversight committee create$ herein9 3!i" The un$ue $elay in the compliance with the obligation to certify or attest an$Hor falsification of the certification or attestation as re)uire$ un$er Section = of Republic Act 7o#

@@<=' as amen$e$9 an$ 3!%" Any other culpable neglect or willful violations of the provisions of this Act# 3In the case of government officials an$ employees' a conviction un$er this Act is without pre%u$ice to any civil case an$Hor appropriate a$ministrative procee$ings un$er civil service law' rules an$ regulations# 3Any person convicte$ un$er this Act shall not be entitle$ to any benefit provi$e$ for in any agrarian reform law or program#3 #ection 15. Section =? of Republic Act 7o# @@<=' as amen$e$' is hereby further amen$e$ to rea$ as follows: 3S/C# =?# Penalties# ( Any person who knowingly or willfully violates the provisions of this Act shall be punishe$ by imprisonment of not less than one !4" month to not more than three !2" years or a fine of not less than .ne thousan$ pesos ! 4';;;#;;" an$ not more than -ifteen thousan$ pesos ! 4<';;;#;;"' or both' at the $iscretion of the court: rovi$e$' That the following correspon$ing penalties shall be impose$ for the specific violations hereun$er: 3!a" Imprisonment of three !2" years an$ one !4" $ay to si, !@" years or a fine of not less than -ifty thousan$ pesos ! <;';;;#;;"an$ not more than .ne hun$re$ fifty thousan$ pesos ! 4<;';;;#;;"' or both' at the $iscretion of the court upon any person who violates Section =2' subparagraphs !a"' !b"' !f"' !g"' an$ !h" of Republic Act 7o# @@<=' as amen$e$9 an$ 3!b" Imprisonment of si, !@" years an$ one !4" $ay to twelve !48" years or a fine of not less than Two hun$re$ thousan$ pesos ! 8;;';;;#;;" an$ not more than .ne million pesos ! 4';;;';;;#;;"' or both' at the $iscretion of the court upon any person who violates Section =2' subparagraphs !c"' !$"' !e"' an$ !i" of Republic Act 7o# @@<=' as amen$e$# 3If the offen$er is a corporation or association' the officer responsible therefor shall be criminally liable#3 #ection 16. Congressional +versight Committee. ( A Congressional .versight Committee on Agrarian Reform !C.CAR" is hereby create$ to oversee an$ monitor the implementation of this Act# It shall be compose$ of the Chairpersons of the Committee on Agrarian Reform of both Bouses of Congress' three !2" Members of the Bouse of Representatives' an$ three !2" Members of the Senate of the hilippines' to be $esignate$ respectively by the Speaker of the Bouse of Representatives an$ the resi$ent of the Senate of the hilippines# The Chairpersons of the Committees on Agrarian Reform of the Bouse of Representatives an$ of the Senate of the hilippines shall be the Chairpersons of the C.CAR# The Members shall receive no compensation9 however' traveling an$ other necessary e,penses shall be allowe$# In or$er to carry out the ob%ectives of this Act' the C.CAR shall be provi$e$ with the necessary appropriations for its operation# An initial amount of Twenty(five million pesos ! 8<';;;';;;#;;" is hereby appropriate$ for the C.CAR for the first year of its operation an$ the same amount shall be appropriate$ every year thereafter# The term of the C.CAR shall en$ si, !@" months after the e,piration of the e,ten$e$ perio$ of five !<" years# #ection 17. Powers and $unctions of the C+CAR. ( The C.CAR shall have the following powers an$ functions: !a" rescribe an$ a$opt gui$elines which shall govern its work9 !b" Bol$ hearings an$ consultations' receive testimonies an$ reports pertinent to its specifie$ concerns9 !c" Secure from any $epartment' bureau' office or instrumentality of the government such assistance as may be nee$e$' inclu$ing technical information' preparation an$ pro$uction of reports an$ submission of recommen$ations or plans as it may re)uire' particularly a yearly report of the recor$ or performance of each agrarian reform beneficiary as provi$e$ un$er Section 88 of

Republic Act 7o# @@<=' as amen$e$9 !$" Secure from the 1AR or the 0+ information on the amount of %ust compensation $etermine$ to be pai$ or which has been pai$ to any lan$owner9 !e" Secure from the 1AR or the 0+ )uarterly reports on the $isbursement of fun$s for the agrarian reform program9 !f" .versee an$ monitor' in such a manner as it may $eem necessary' the actual implementation of the program an$ pro%ects by the 1AR9 !g" Summon by subpoena any public or private citi&en to testify before it' or re)uire by subpoena duces tecum to pro$uce before it such recor$s' reports' or other $ocuments as may be necessary in the performance of its functions9 !h" /ngage the services of resource persons from the public an$ private sectors as well as civil society inclu$ing the various agrarian reform groups or organi&ations in the $ifferent regions of the country as may be nee$e$9 !i" Approve the bu$get for the work of the Committee an$ all $isbursements therefrom' inclu$ing compensation of all personnel9 !%" .rgani&e its staff an$ hire an$ appoint such employees an$ personnel whether temporary' contractual or on constancy sub%ect to applicable rules9 an$ !k" /,ercise all the powers necessary an$ inci$ental to attain the purposes for which it is create$# #ection 1 . Periodic Reports. ( The C.CAR shall submit to the Speaker of the Bouse of Representatives an$ to the resi$ent of the Senate of the hilippines perio$ic reports on its fin$ings an$ recommen$ations on actions to be un$ertaken by both Bouses of Congress' the 1AR' an$ the ARC# #ection 19. Access to nformation. ( 7otwithstan$ing the provisions of Republic Act 7o# 4?;< an$ other pertinent laws' information on the amount of %ust compensation pai$ to any lan$owner un$er Republic Act 7o# @@<=' as amen$e$' an$ other agrarian reform laws shall be $eeme$ public information# #ection 20. Resolution of Case. ( Any case an$Hor procee$ing involving the implementation of the provisions of Republic Act 7o# @@<=' as amen$e$' which may remain pen$ing on Eune 2;' 8;4? shall be allowe$ to procee$ to its finality an$ be e,ecute$ even beyon$ such $ate# #ection 21. mplementing Rules and Regulations. ( The ARC an$ the 1AR shall provi$e the necessary implementing rules an$ regulations within thirty !2;" $ays upon the approval of this Act# Such rules an$ regulations shall take effect on Euly 4' 8;;5 an$ it shall be publishe$ in at least two !8" newspapers of general circulation# #ection 21. Repealing Clause. ( Section <2 of Republic Act 7o# 26??' otherwise known as the Agricultural 0an$ Reform Co$e' is hereby repeale$ an$ all other laws' $ecrees' e,ecutive or$ers' issuances' rules an$ regulations' or parts thereof inconsistent with this Act are hereby likewise repeale$ or amen$e$ accor$ingly# #ection 22. Separa,ilit* Clause. ( If' for any reason' any section or provision of this Act is $eclare$ unconstitutional or invali$' the other sections or provisions not affecte$ thereby shall remain in full force an$ effect# #ection 24. "ffectivit* Clause. ( This Act shall take effect on Euly 4'8;;5 an$ it shall be publishe$ in at least two !8" newspapers of general circulation# Approve$' !Sg$#" PR&#PER& C. N&%RA+E# Speaker of the Bouse of Representatives !Sg$#" J$AN P&NCE ENR"+E resi$ent of the Senate

This Act which is a consoli$ation of Senate +ill 7o# 8@@@ an$' Bouse +ill 7o# ?;== was finally passe$ by the Senate an$ the Bouse of Representatives on August 2' 8;;5 an$ Euly 85' 8;;5' respectively#

!Sg$#" 'AR"+>N =. =AR$AA>AP Secretary :eneral Bouse of Represenatives Approve$: August 7, 1009

!Sg$#" E''A +"R"&ARE>E# Secretary of Senate

!Sg$#" %+&R"A 'ACAPA%A+AARR&>& President of the Philippines