24 LGC, IRR

ARTICLE 24. Devolution. (a) Consstent wth oca autonomy and decentrazaton, the provson for the devery of
basc servces and factes sha be devoved from the Natona Government to provnces, ctes, muncpates, and
barangays so that each LGU sha be responsbe for a mnmum set of servces and factes n accordance wth
estabshed natona poces, gudenes, and standards.
(b) For purposes of ths Rue, devouton sha mean the transfer of power and authorty from the Natona
Government to LGUs to enabe them to perform specfc functons and responsbtes.
(c) Any subsequent change n natona poces, gudenes, and standards sha be sub|ect to pror consutaton
wth LGUs.
Laws Startng Page 5
Power to Generate Revenue, 18
To be dscussed as part of Part II
Section 18. Power to Generate and Apply Resources. - Loca government unts sha have the power and authorty to
estabsh an organzaton that sha be responsbe for the effcent and effectve mpementaton of ther deveopment
pans, program ob|ectves and prortes; to create ther own sources of revenues and to evy taxes, fees, and charges
whch sha accrue excusvey for ther use and dsposton and whch sha be retaned by them; to have a |ust share n
natona taxes whch sha be automatcay and drecty reeased to them wthout need of any further acton; to have
an equtabe share n the proceeds from the utzaton and deveopment of the natona weath and resources wthn
ther respectve terrtora |ursdctons ncudng sharng the same wth the nhabtants by way of drect benefts; to
acqure, deveop, ease, encumber, aenate, or otherwse dspose of rea or persona property hed by them n ther
propretary capacty and to appy ther resources and assets for productve, deveopmenta, or wefare purposes, n the
exercse or furtherance of ther governmenta or propretary powers and functons and thereby ensure ther
deveopment nto sef-reant communtes and actve partcpants n the attanment of natona goas.
Eminent Domain, 1
Section 1. Eminent Domain. - A oca government unt may, through ts chef executve and actng pursuant to an
ordnance, exercse the power of emnent doman for pubc use, or purpose or wefare for the beneft of the poor and
the andess, upon payment of |ust compensaton, pursuant to the provsons of the Consttuton and pertnent aws:
Provded, however, That the power of emnent doman may not be exercsed uness a vad and defnte offer has been
prevousy made to the owner, and such offer was not accepted: Provded, further, That the oca government unt may
mmedatey take possesson of the property upon the fng of the expropraton proceedngs and upon makng a
depost wth the proper court of at east ffteen percent (15%) of the far market vaue of the property based on the
current tax decaraton of the property to be exproprated: Provded, fnay, That, the amount to be pad for the
exproprated property sha be determned by the proper court, based on the far market vaue at the tme of the
takng of the property.
See Ru!e "#, 1# Ru!e$ o% Civi! Proce&ure
Section 1. The complaint. The rght of emnent doman sha be exercsed by the fng of a verfed compant whch
sha state wth certanty the rght and purpose of expropraton, descrbe the rea or persona property sought to be
exproprated, and |on as defendants a persons ownng or camng to own, or occupyng, any part thereof or nterest
theren, showng, so far as practcabe, the separate nterest of each defendant. If the tte to any property sought to
be exproprated appears to be n the Repubc of the Phppnes, athough occuped by prvate ndvduas, or f the tte
s otherwse obscure or doubtfu so that the pantff cannot wth accuracy or certanty specfy who are the rea owners,
averment to that effect sha be made n the compant. (1a)
Section 2. Entry of plaintiff upon depositing value with authorized government depositary. Upon the fng of the
compant or at any tme thereafter and after due notce to the defendant, the pantff sha have the rght to take or
enter upon the possesson of the rea property nvoved f he deposts wth the authorzed government depostary an
amount equvaent to the assessed vaue of the property for purposes of taxaton to be hed by such bank sub|ect to
the orders of the court. Such depost sha be n money, uness n eu thereof the court authorzes the depost of a
certfcate of depost of a government bank of the Repubc of the Phppnes payabe on demand to the authorzed
government depostary.
If persona property s nvoved, ts vaue sha be provsonay ascertaned and the amount to be deposted sha be
prompty fxed by the court.
After such depost s made the court sha order the sherff or other proper offcer to forthwth pace the pantff n
possesson of the property nvoved and prompty submt a report thereof to the court wth servce of copes to the
partes. (2a)
Section '. Defenses and obections. If a defendant has no ob|ecton or defense to the acton or the takng of hs
property, he may fe and serve a notce of appearance and a manfestaton to that effect, specfcay desgnatng or
dentfyng the property n whch he cams to be nterested, wthn the tme stated n the summons. Thereafter, he
sha be entted to notce of a proceedngs affectng the same.
If a defendant has any ob|ecton to the fng of or the aegatons n the compant, or any ob|ecton or defense to the
takng of hs property, he sha serve hs answer wthn the tme stated n the summons. The answer sha specfcay
desgnate or dentfy the property n whch he cams to have an nterest, state the nature and extent of the nterest
camed, and adduce a hs ob|ectons and defenses to the takng of hs property. No countercam, cross-cam or
thrd-party compant sha be aeged or aowed n the answer or any subsequent peadng.
A defendant waves a defenses and ob|ectons not so aeged but the court, n the nterest of |ustce, may permt
amendments to the answer to be made not ater than ten (10) days from the fng thereof. However, at the tra of the
ssue of |ust compensaton whether or not a defendant has prevousy appeared or answered, he may present
evdence as to the amount of the compensaton to be pad for hs property, and he may share n the dstrbuton of the
award. (n)
Section 4. !rder of e"propriation. If the ob|ectons to and the defenses aganst the rght of the pantff to
exproprate the property are overrued, or when no party appears to defend as requred by ths Rue, the court may
ssue an order of expropraton decarng that the pantff has a awfu rght to take the property sought to be
exproprated, for the pubc use or purpose descrbed n the compant, upon the payment of |ust compensaton to be
determned as of the date of the takng of the property or the fng of the compant, whchever came frst.
A fna order sustanng the rght to exproprate the property may be appeaed by any party aggreved thereby. Such
appea, however, sha not prevent the court from determnng the |ust compensaton to be pad.
After the rendton of such an order, the pantff sha not be permtted to dsmss or dscontnue the proceedng except
on such terms as the court deems |ust and equtabe. (4a)
Section (. Ascertainment of compensation. Upon the rendton of the order of expropraton, the court sha appont
not more than three (3) competent and dsnterested persons as commssoners to ascertan and report to the court
the |ust compensaton for the property sought to be taken. The order of appontment sha desgnate the tme and
pace of the frst sesson of the hearng to be hed by the commssoners and specfy the tme wthn whch ther report
sha be submtted to the court.
Copes of the order sha be served on the partes. Ob|ectons to the appontment of any of the commssoners sha be
fed wth the court wthn ten (10) days from servce, and sha be resoved wthn thrty (30) days after a the
commssoners sha have receved copes of the ob|ectons. (5a)
Section ". Proceedings by commissioners. Before enterng upon the performance of ther dutes, the
commssoners sha take and subscrbe an oath that they w fathfuy perform ther dutes as commssoners, whch
oath sha be fed n court wth the other proceedngs n the case. Evdence may be ntroduced by ether party before
the commssoners who are authorzed to admnster oaths on hearngs before them, and the commssoners sha,
uness the partes consent to the contrary, after due notce to the partes, to attend, vew and examne the property
sought to be exproprated and ts surroundngs, and may measure the same, after whch ether party may, by hmsef
or counse, argue the case. The commssoners sha assess the consequenta damages to the property not taken and
deduct from such consequenta damages the consequenta benefts to be derved by the owner from the pubc use or
purpose of the property taken, the operaton of ts franchse by the corporaton or the carryng on of the busness of
the corporaton or person takng the property. But n no case sha the consequenta benefts assessed exceed the
consequenta damages assessed, or the owner be deprved of the actua vaue of hs property so taken. (6a)
Section #. Report by commissioners and udgment thereupon. The court may order the commssoners to report
when any partcuar porton of the rea estate sha have been passed upon by them, and may render |udgment upon
such parta report, and drect the commssoners to proceed wth ther work as to subsequent portons of the property
sought to be exproprated, and may from tme to tme so dea wth such property. The commssoners sha make a fu
and accurate report to the court of a ther proceedngs, and such proceedngs sha not be effectua unt the court
sha have accepted ther report and rendered |udgment n accordance wth ther recommendatons. Except as
otherwse expressy ordered by the court, such report sha be fed wthn sxty (60) days from the date the
commssoners were notfed of ther appontment, whch tme may be extended n the dscreton of the court. Upon
the fng of such report, the cerk of the court sha serve copes thereof on a nterested partes, wth notce that they
are aowed ten (10) days wthn whch to fe ob|ectons to the fndngs of the report, f they so desre. (7a)
Section 8. Action upon commissioners' report. Upon the expraton of the perod of ten (10) days referred to n the
precedng secton, or even before the expraton of such perod but after a the nterested partes have fed ther
ob|ectons to the report or ther statement of agreement therewth, the court may, after hearng, accept the report and
render |udgment n accordance therewth, or, for cause shown, t may recommt the same to the commssoners for
further report of facts, or t may set asde the report and appont new commssoners; or t may accept the report n
part and re|ect t n part and t may make such order or render such |udgment as sha secure to the pantff the
property essenta to the exercse of hs rght of expropraton, and to the defendant |ust compensaton for the property
so taken. (8a)
Section . #ncertain ownership; conflicting claims. If the ownershp of the property taken s uncertan, or there are
confctng cams to any part thereof, the court may order any sum or sums awarded as compensaton for the property
to be pad to the court for the beneft of the person ad|udged n the same proceedng to be entted thereto. But the
|udgment sha requre the payment of the sum or sums awarded to ether the defendant or the court before the
pantff can enter upon the property, or retan t for the pubc use or purpose f entry has aready been made. (9a)
Section 1). Rights of plaintiff after udgment and payment. Upon payment by the pantff to the defendant of the
compensaton fxed by the |udgment, wth ega nterest thereon from the takng of the possesson of the property, or
after tender to hm of the amount so fxed and payment of the costs, the pantff sha have the rght to enter upon the
property exproprated and to approprate t for the pubc use or purpose defned n the |udgment, or to retan t shoud
he have taken mmedate possesson thereof under the provsons of secton 2 hereof. If the defendant and hs counse
absent themseves from the court, or decne to receve the amount tendered, the same sha be ordered to be
deposted n court and such depost sha have the same effect as actua payment thereof to the defendant or the
person utmatey ad|udged entted thereto. (10a)
Section 11. Entry not delayed by appeal; effect of reversal. The rght of the pantff to enter upon the property of
the defendant and approprate the same for pubc use or purpose sha not be deayed by an appea from the
|udgment. But f the appeate court determnes that pantff has no rght of expropraton, |udgment sha be rendered
orderng the Regona Tra Court to forthwth enforce the restoraton to the defendant of the possesson of the
property, and to determne the damages whch the defendant sustaned and may recover by reason of the possesson
taken by the pantff. (11a)
Section 12. $osts% by whom paid. The fees of the commssoners sha be taxed as a part of the costs of the
proceedngs. A costs, except those of rva camants tgatng ther cams, sha be pad by the pantff, uness an
appea s taken by the owner of the property and the |udgment s affrmed, n whch event the costs of the appea sha
be pad by the owner. (12a)
Section 1'. Recording udgment, and its effect. The |udgment entered n expropraton proceedngs sha state
defntey, by an adequate descrpton, the partcuar property or nterest theren exproprated, and the nature of the
pubc use or purpose for whch t s exproprated. When rea estate s exproprated, a certfed copy of such |udgment
sha be recorded n the regstry of deeds of the pace n whch the property s stuated, and ts effect sha be to vest n
the pantff the tte to the rea estate so descrbed for such pubc use or purpose. (13a)
Section 14. Power of guardian in such proceedings. The guardan or guardan ad litem of a mnor or of a person
|udcay decared to be ncompetent may, wth the approva of the court frst had, do and perform on behaf of hs
ward any act, matter, or thng respectng the expropraton for pubc use or purpose of property beongng to such
mnor or person |udcay decared to be ncompetent, whch such mnor or person |udcay decared to be
ncompetent coud do n such proceedngs f he were of age or competent. (14a)
Rec!a$$i%ication o% Lan&$, 2)
Section 2). Reclassification of &ands. -
(a) A cty or muncpaty may, through an ordnance passed by the sanggunan after conductng pubc
hearngs for the purpose, authorze the recassfcaton of agrcutura ands and provde for the manner of ther
utzaton or dsposton n the foowng cases: (1) when the and ceases to be economcay feasbe and sound
for agrcutura purposes as determned by the Department of Agrcuture or (2) where the and sha have
substantay greater economc vaue for resdenta, commerca, or ndustra purposes, as determned by the
sanggunan concerned: Provded, That such recassfcaton sha be mted to the foowng percentage of the
tota agrcutura and area at the tme of the passage of the ordnance:
(1) For hghy urbanzed and ndependent component ctes, ffteen percent (15%);
(2) For component ctes and frst to the thrd cass muncpates, ten percent (10%); and
(3) For fourth to sxth cass muncpates, fve percent (5%): Provded, further, That agrcutura ands
dstrbuted to agraran reform benefcares pursuant to Repubc Act Numbered Sxty-sx hundred ffty-
seven (R.A. No. 6657). otherwse known as "The Comprehensve Agraran Reform Law", sha not be
affected by the sad recassfcaton and the converson of such ands nto other purposes sha be
governed by Secton 65 of sad Act.
(b) The Presdent may, when pubc nterest so requres and upon recommendaton of the Natona Economc
and Deveopment Authorty, authorze a cty or muncpaty to recassfy ands n excess of the mts set n the
next precedng paragraph.
(c) The oca government unts sha, n conformty wth exstng aws, contnue to prepare ther respectve
comprehensve and use pans enacted through zonng ordnances whch sha be the prmary and domnant
bases for the future use of and resources: Provded. That the requrements for food producton, human
settements, and ndustra expanson sha be taken nto consderaton n the preparaton of such pans.
(d) Where approva by a natona agency s requred for recassfcaton, such approva sha not be
unreasonaby wthhed. Faure to act on a proper and compete appcaton for recassfcaton wthn three (3)
months from recept of the same sha be deemed as approva thereof.
(e) Nothng n ths Secton sha be construed as repeang, amendng, or modfyng n any manner the
provsons of R.A. No. 6657.
A&mini$trative *r&er +o. '"' ,1#-

PRESCRI.I+G G/IDELI+ES 0*R T1E PR*TECTI*+ *0 AREAS +*+2+EG*TIA.LE 0*R C*+3ERSI*+ A+D
4*+IT*RI+G C*4PLIA+CE 5IT1 SECTI*+ 2) *0 T1E L*CAL G*3ER+4E+T C*DE

WHEREAS, Secton 21, Artce II of the 1987 Consttuton provdes that "the State sha promote comprehensve rura
deveopment and agraran reform";
WHEREAS, Secton 1, Artce XII of the Consttuton provdes that "the State sha promote ndustrazaton and fu
empoyment based on sound agrcutura deveopment and agraran reform, through ndustres that make fu and
effcent use of human and natura resources";
WHEREAS, Secton 9, Artce XIII of the Consttuton provdes that "the State sha, by aw, and for the common good,
undertake, n cooperaton wth the prvate sector, a contnung program of urban and reform and housng whch w
make avaabe at affordabe cost decent housng and basc servces to underprveged and homeess ctzens n urban
centers and resettement areas";
WHEREAS, t s necessary to ratonaze the pocy of government n protectng prme agrcutura ands and n
provdng areas for ndustry, housng and commerce;
WHEREAS, the Presdent s empowered to ssue gudenes to Executve Agences to further defne the roes they are to
undertake n pursung the mandate of ther respectve agences and n accordance wth the prortes of government.
NOW, THEREFORE, I, FIDEL V. RAMOS, Presdent of the Phppnes, by vrtue of the powers vested n me by aw, do
hereby drect the observance of the foowng gudenes:
SECTI*+ 1. Declaration of Principles and Governing Policies
A. General Principles
1. The State sha gve prorty to the provson for a ratona and sustanabe aocaton, utzaton,
management and deveopment of the country's and resources.
2. The State sha protect prme agrcutura ands for food producton actvtes, and gve hghest prorty to
the competon of the Comprehensve Agraran Reform Program (CARP).
3. The State sha ensure food sef-suffcency and food securty through effcent and sustanabe use of
and resources, consstent wth the prncpes of sound agrcutura deveopment, natura resources deveopment
and agraran reform.
4. The State sha promote the dspersa of ndustres natonwde to catayze countrysde deveopment
through the Regona Growth Centers (RGCs), economc zones, and growth networks/corrdors.
5. The State sha promote and encourage the deveopment of economc and socazed housng pro|ects n
order to make avaabe adequate economc and socazed housng unts for average and ow-ncome earners n
urban and rura areas.
6. The State sha nsttutonaze the partcpaton of peope's organzatons, non-government
organzatons, and oca communtes n the formuaton of a natona and use pan.
B. Governing Policies
1. The foowng areas sha not be sub|ect to or non-negotabe for converson:
a. Protected areas desgnated under the Natona Integrated Protected Areas (NIPAS), ncudng
watershed and recharge areas of aqufers, as determned by the Department of Envronment and Natura
Resources (DENR), pursuant to RA 7586 (1992);
b. A rrgated ands, as deneated by the Department of Agrcuture (DA) and/or the Natona
Irrgaton Admnstraton (NIA) and approved by the Presdent, where water s avaabe to support rce
and other crop producton, and a rrgated ands where water s not avaabe for rce and other crop
producton but are wthn areas programmed for rrgaton facty rehabtaton by the DA and the NIA,
pursuant to Presdenta Admnstratve Order 20 (1992); and
c. A rrgabe ands aready covered by rrgaton pro|ects wth frm fundng commtments, as
deneated by the DA and/or NIA and approved by the Presdent.
For ths purpose, the Network of Protected Areas for Agrcuture (as of 1991), as determned by
the DA and/or NIA sha serve as gude n determnng non-negotabe areas. The Network may
ony be revsed upon the approva of the Presdent, upon favorabe recommendaton by the
Cabnet Custer on Agro-Industra Deveopment.
In a cases, appcatons for converson nvovng ands protected from and non-negotabe for
converson sha not be gven due course by the DAR.
2. The foowng areas sha be hghy restrcted from converson:
a. Lands cassfed as 'Hghy Restrcted from Converson' n the Network of Protected Areas for
Agrcuture as deneated by the DA, as foows:
a.1 Irrgabe ands not covered by rrgaton pro|ects wth frm fundng commtments;
a.2 Agro-ndustra cropands, or ands presenty panted to ndustra crops that support the
economc vabty of exstng agrcutura nfrastructure and agro-based enterprses; and
a.3 Hghands, or areas ocated n eevatons of 500 meters or above and have the potenta for
growng sem-temperate and usuay hgh vaue crops.
b. Lands ssued a Notce of Acquston/Vauaton under the agraran reform program or sub|ect of a
perfected agreement between the andowner and the benefcares under Vountary Land Transfer (VLT)
or Drect Payment Scheme (DPS) under CARP, as determned by the DAR; and
c. Areas dentfed as envronmentay crtca as determned by the DENR, pursuant to PD 1586
(1978) and ts mpementng rues and reguatons;
Lands cassfed as hghy restrcted from converson may be converted ony upon
compance wth exstng aws, rues and reguatons. An addtona requrement of the
soca beneft cost anayss approved by the DA sha aso be requred before these ands
may be approved for converson.
Appcatons for converson coverng areas under 2 (c) above sha be sub|ect to the
Envronmenta Impact Assessment (EIA) and/or Envronmenta Compance Certfcate (ECC)
of the DENR.
3. Converson of prorty areas under Executve Order 124 (1993), as dentfed beow, fang wthn the
areas hghy restrcted from converson may be aowed and the soca beneft cost anayss for these areas may
be waved; PROVIDED that the requrement of an EIC or ECC sha aways be requred; PROVIDED FURTHER that
n no case sha converson be aowed f these stes fa under those cassfed as non-negotabe areas:
a. specfc stes n regona agr-ndustra centers/regona ndustra centers (RAICs/RICs) dentfed
by the Department of Trade and Industry (DTI) and the Department of Agrcuture (DA), attached as
Annex A;
b. toursm deveopment areas (TDAs) dentfed by the Department of Toursm (DOT), attached as
Annex B; and
c. stes dentfed by the oca government unts (LGUs) for socazed housng.
4. In a cases, farmers or prospectve benefcares of the agraran reform program affected by the
converson sha be pad suffcent dsturbance compensaton. In addton, the owners and or deveopers of the
and sha be encouraged to provde capta whch w enabe the affected farmers and other egtmate
stakehoders to shft to another vehood, sks tranng, reocaton stes, and prorty n empoyment for them
and ther chdren. Investment arrangements whch gve affected farmers and other egtmate stakehoders a
stake n the deveopment of the and, such as, but not mted to, |ont ventures and partnershps, sha aso be
encouraged.
5. No appcaton for recassfcaton by LGUs sha be gven due course by HLURB wthout the approved
Comprehensve Land Use Pan approved by the HLURB for provnces, hghy urbanzed ctes, ndependent
component ctes and the ctes and muncpates of Metropotan Mana, or the Sanggunang Panaawgan for
component ctes and muncpates, after 1 |anuary 1989. The foowng requrements or certfcatons from
varous agences sha aso be requred:
a. Certfcaton from the oca HLURB specfyng the tota area of zoned agrcutura ands n the oca
government concerned based on the approved Comprehensve Land Use Pan or Zonng Ordnance pror
to the appcaton for converson;
b. Certfcaton from the NIA that the area to be recassfed s not covered under Presdenta A.O.
20, s. 1992;
c. Certfcaton from the DAR ndcatng that such ands are not dstrbuted or covered by a Notce of
Vauaton under CARP; and
d. Certfcaton from DENR that the area apped for recassfcaton has been cassfed as aenabe
and dsposabe, and s not needed for forestry purposes n case the area apped for fas wthn pubc
ands.
6. No appcaton for converson sha be gven due course by DAR wthout the foowng certfcatons from
varous agences:
a. Certfcaton of the Vabty or Non Vabty of Agrcutura Land from the DA and that the and s
not part of the area dentfed as non-negotabe for converson or a certfcaton as to whether the and s
cassfed as hghy restrcted from converson or not;
b. Certfcaton that the and does not fa under the NIPAS area or s not cassfed as
envronmentay crtca from the DENR. For appcatons for converson nvovng envronmentay crtca
areas, the DAR may ssue an Order of Converson, sub|ect to the ssuance of an ECC by the DENR.
The DENR, n coordnaton wth the DAR, sha nsttute an Envronmenta Guarantee Fund to
ensure envronment protecton and to provde government the fnanca capabty to hande
negatve mpacts of the converson;
c. Certfcaton from the NIA statng that the area s not covered under Presdenta A.O. 20, S. 1992;
and
d. Certfcaton from the HLURB that the and has been recassfed and that sad recassfcaton s
wthn or outsde the maxmum aowabe mts set by aw.
7. In a cases, the decson of the DAR Secretary sha be appeaabe to the Offce of the Presdent. The
Presdent may aow the converson of areas consdered non-negotabe for converson ony upon the favorabe
recommendaton of the Cabnet Custer on Agro-Industra Deveopment; PROVIDED that where ands affected
are rrgated, the owner/deveoper sha be requred to repace the areas affected by an equa area of rrgated
ands, whether wthn or outsde the area/ocaty beng apped for converson; and PROVIDED FURTHER that
such converson sha not adversey affect the rrgaton system.
SECTI*+ 2. Definition of Terms. As used n and for purposes of ths Memorandum Crcuar, the foowng terms
sha mean:
Agricultural &ands refer to ands devoted to agrcutura actvty and not cassfed as mnera, forest, resdenta,
commerca or ndustra and (Sec. 3 (c), RA 6657).
A'uifer Recharge Areas refer to sources of water repenshment where ranwater or seepage actuay enters the
aqufers. Aqufers are sources of water from the ground.
Environmentally $ritical Areas refer to areas decared by aw as: a) areas for natura parks, watershed reserves,
wdfe preserves, and sanctuares; b) areas set asde as aesthetc potenta tourst spots; c) areas whch consttute the
habtat for any endangered or threatened speces of ndgenous Phppne wdfe (fora and fauna); d) areas of unque
hstorc, archeoogca, or scentfc nterests; e) areas whch are tradtonay occuped by cutura communtes and
trbes; f) areas wth crtca sopes; g) areas frequenty vsted and/or hard ht by natura caamtes (geoogc hazards,
foods, typhoons and vocanc actvtes); h) areas cassfed as prme agrcutura ands; () recharge areas of aqufers;
|) water bodes; k) mangrove areas; ) cora reefs; m) mossy and vrgn forests; n) rver banks; and o) swamp forests
and marshands.
(ighly Restricted Areas )ithin *etwor+ of Protected Areas for Agricultural Development refers to the most effcent
agrcutura and that can be grown to a wde range of crops wth mnmum to moderate eve of farm management
requrement.
&and #se refers to the manner of utzaton of and, ncudng ts aocaton, deveopment and management.
&and #se $onversion refers to the act or process of changng the current use of a pece of agrcutura and nto some
other use.
&and #se Plan refers to a document embodyng a set of poces accompaned by maps and smar ustratons whch
represent the communty-desred pattern of popuaton dstrbuton and a proposa for the future aocaton of and to
the varous and-usng actvtes. It dentfes the aocaton, character and extent of the area's and resources to be
used for dfferent purposes and ncudes the process and the crtera empoyed n the determnaton of the and use.
*etwor+ of Protected Areas for Agriculture (NPAA) refers to and reserved for agrcutura actvtes. The specfc types
of and reserved for agrcutura actvtes covered by the NPAA are:
a. A rrgated and potentay rrgabe and;
b. A auva, pan and that are hghy sutabe for agrcutura producton and/or can be devoted to food
producton;
c. A sustanabe and that are tradtona sources of food;
d. A crop and that support the exstng economc scae of producton requred to sustan the economc
vabty of exstng agrcutura nfrastructure and agro-based enterprses n the provnce or regon;
e. A productve and n the ow-caamty rsk areas that are sutabe for the producton of economc trees
and other cash crops; and
f. A agrcutura and that are ecoogcay frage and whose converson w resut n serous
envronmenta probems.
*ational ,ntegrated Protected Areas -ystem s the cassfcaton and admnstraton of a desgnated protected areas to
mantan essenta ecoogca processes and fe-support systems, to preserve genetc dversty, to ensure sustanabe
use of resources found theren, and to mantan ther natura condtons to the extent possbe.
Premature $onversion of Agricultural &and means the undertakng of any deveopment actvtes whose resuts w
modfy or ater the physca characterstcs of the agrcutura ands to render them sustanabe for non-agrcutura
purposes wthout an approved order of converson from the DAR.
Prime Agricultural &ands refer to ands that can be used for varous or specfc agrcutura actvtes and can provde
optmum and sustanabe yed wth a mnmum of nputs and deveopment cost as determned by the DA.
Protected Areas refer to dentfed portons of and and water set asde by reason of ther unque physca and
boogca sgnfcance, managed to enhance boogca dversty, and protected aganst destructve human
expotaton.
Reclassification of Agricultural &ands refers to the act of specfyng how agrcutura ands sha be utzed for non-
agrcutura uses such as resdenta, ndustra, commerca, as emboded n the and use pan, sub|ect to the
requrements and procedure for converson. It aso ncudes the reverson of non-agrcutura ands to agrcutura use
(|ont HLURB, DAR, DA, DILG Memorandum Crcuar, s. 1995).
Regional Agri.,ndustrial Growth $enters are specfc ocatons n each of the country's regons outsde the Natona
Capta Regon (NCR) dentfed for deveopment by provdng t wth the fu range of nfrastructure/uttes needed by
ndustres to estabsh operatons n the countrysde. The RGCs are growth centers envsoned to strengthen
compementary nkages between agrcuture and ndustry; between urban centers and rura areas; and ther
ntegraton nto a mutuay renforcng natona system of producton, dstrbuton and exchange, and nto the hghy
compettve nternatona market.
Regional Growth *etwor+s/$orridors are neghborng provnces/regons whch are nked together and are dentfed
through the coaboraton and cooperaton of varous oca government unts. The nkng of these areas permts the
comparatve advantages/strengths of each area to be shared wth one another, thereby ensurng the optmum
utzaton of resources and the deveopment of networks/corrdors and ts radaton areas.
-ocialized (ousing refers to housng programs and pro|ects coverng houses and ots or homeots ony undertaken by
the government or the prvate sector for the underprveged and homeess ctzens whch sha ncude stes and
servces deveopment, ong-term fnancng, berazed terms on nterest payments, and such other benefts n
accordance wth RA 7279.
-pecial Economic 0ones refer to seected areas wth hghy deveoped or whch have the potenta to be deveoped nto
agro-ndustra, ndustra, tourst/recreatona, commerca, bankng, nvestment and fnanca centers. An ecozone may
contan any or a of the foowng: ndustra estates, export processng zones, free trade zones, and
tourst/recreatona centers.
Tourism Development Areas refer to specfc stes for toursm deveopment ocated n areas dentfed as prortes n
the natona and regona toursm master pans as we as those desgnated through egsatve and executve
ssuances as tourst spots and tourst zones whch can be deveoped nto toursm estates or ntegrated resort, esure
and recreaton compexes, and other toursm reated factes.
)atershed refers to a catchment area or dranage basn from whch the waters of a stream or stream system are
drawn.
0oning refers to the deneaton/dvson of a cty/muncpaty nto functona zones where ony specfc and uses are
aowed. It drects and reguates the use of a ands n the communty n accordance wth an approved or adopted and
use pan for the cty/muncpaty. It prescrbes setback provsons, mnmum ot szes, budng heghts and buk.
0oning !rdinance refers to a oca egsaton approvng the deveopment contro/zonng pan and provdng for the
reguatons and other condtons, on the uses of and ncudng the mtaton on the nfrastructures that may be paces
thereon wthn the terrtora |ursdcton of a cty or muncpaty.
SECTI*+ '. Monitoring Compliance with Sec. 20 of RA !"0. The mpementaton of Sec. 20 of R.A. No. 7160
authorzng ctes and muncpates to recassfy agrcutura ands nto non-agrcutura uses sha observe the
gudenes set by the |ont HLURB, DAR, DA and DILG Memorandum Crcuar, s. 1995, pursuant to M.C. 54, s. 1993 from
the Offce of the Presdent.
SECTI*+ 4. Penalties and Sanctions. The foowng prohbted acts, defned and penazed n reated aws and
admnstratve ssuances, specfcay: RA 6657 (Comprehensve Agraran Reform Law), RA 7586 (Natona Integrated
Protected Areas System Law), Executve Order 184 (Creaton of Socazed Housng One-Stop Processng Centers),
Executve Order 648. (Reorganzng the Human Settements Reguatory Commsson, now the Housng and Land Use
Reguatory Board), DAR Admnstratve Order 12 (1994), DAR-DO| Admnstratve Order 4 (1993) and 5 (1994), DA
Admnstratve Order 2 (1992), and DENR Admnstratve Order 96-37 (1996) sha appy to ths Admnstratve Order:
1. The converson by any andowner of hs agrcutura and nto non-agrcutura use wth the ntent to
avod the appcaton of RA 6657 to hs andhodngs and to dspossess the tenant farmers of the and ted by
them;
2. The sae, transfer, conveyance or change of the nature of ands outsde of urban centers and cty mts
ether n whoe or n part after the effectvty of RA 6657;
3. Squattng, mnera exporaton, or otherwse egay occupyng any and nsde protected areas;
4. Constructng or mantanng any knd of structure, fence, or encosures and conductng any busness
enterprse wthout permt nsde protected areas;
5. Faure of the deveoper/proponent to compy wth hs undertakng or socazed housng pro|ect;
6. Msrepresentaton or conceament of matera facts n the appcaton for and use converson, and any
other voatons of the rues and reguatons whch are matera to the grant of the converson;
7. Faure to mpement and compete the and deveopment of the area approved for converson wthn the
specfed tme;
8. Knowngy or wfuy convertng any agrcutura and wthout the approva of the DAR;
9. Msrepresentaton or conceament of matera facts for the ssuance of the Certfcate of Egbty for
Converson (CEC) by the DA, or any attempt to msrepresent or concea any matera fact for the ssuance of a
CEC;
10. Any pro|ect or actvty whch has been cassfed as envronmentay crtca and/or ocated n an
envronmentay crtca area estabshed and/or operatng wthout a vad Envronmenta Compance Certfcate
(ECC) from the DENR;
11. Pro|ects voatng ECC condtons, envronmenta management pans (EMP) or rues and reguatons
pertanng to the envronmenta mpact statement (EIS) system; and
12. Msrepresentatons n EIS/IEE (Inta Envronment Examnaton) or any other documents submtted by
the proponent pursuant to DENR A.O. 96-37.
SECTI*+ (. Transitor# Provisions. The pertnent government agences are hereby drected to harmonze and
amend ther procedures and gudenes on and use and and use converson based on the prncpes enuncated heren
wthn sxty (60) days from the effectvty of ths Order.
The foowng agences are aso mandated to perform the foowng functons towards the fu mpementaton of ths
Order wthn sx (6) months from the effectvty hereof:
1. The Department of Agrcuture sha:
a. Update and revse the Network of Protected Areas for Agrcuture, ncudng the maps, takng nto
account the provsons of ths Order;
b. Identfy crtera for certfyng that the and has ceased to be economcay sound and sutabe for
agrcuture;
c. Desgn, n consutaton wth DAR, DENR, NEDA, HLURB, DTI and DOT, the soca beneft cost
anayss whch w be used n evauatng ands pror to the ssuance of the CEC; and
d. The Natona Irrgaton Admnstraton of the DA sha prepare and update maps of rrgated and
rrgabe ands that sha be protected from and non-negotabe for converson.
2. The Department of Envronment and Natura Resources sha:
a. Prepare and/or vadate maps of the nta components of the NIPAS, ncudng watershed and
aqufer areas, n consutaton wth and actve support from oca government unts; and
b. Identfy and map envronmentay crtca areas sub|ect of an EIA or ECC, n consutaton wth and
actve support from oca government unts.
3. The Department of Agraran Reform sha dentfy ands aready ssued a: 1) Notce of Vauaton under
the Compusory Acquston (CA), or 2) Vountary Offer to Se (VOS) process, or 3) ands sub|ect of a perfected
agreement between the andowner and the benefcares under Vountary Land Transfer (VLT) or Drect Payment
Scheme (DPS) under CARP.
4. The Housng and Land Use Reguatory Board sha, pursuant to M.C. 54 (1993) from the Offce of the
Presdent and n coordnaton wth DA, DAR, DILG, NEDA, League of Provnces, League of Ctes and League of
Muncpates, n consutaton wth Peope's Organzatons and NGOs, desgn and nsta a montorng and
evauaton system for the recassfcaton of agrcutura ands nto non-agrcutura uses.
5. The Department of Interor and Loca Government sha, n coordnaton wth HLURB, cause the LGUs'
mmedate compance wth the provsons for the formuaton and updatng of ther respectve comprehensve
and use pans, to be revewed and approved by the HLURB or the Sanggunang Panaawgan, pursuant to EO
72 (1993).
In the absence of a Presdenta Approva of the deneaton of rrgated and rrgabe ands non-negotabe for
converson, the DA's Network of Protected Areas for Agrcuture sha govern.
SECTI*+ ". Repealing Clause. A other ssuances nconsstent herewth are hereby repeaed or modfed
accordngy.
SECTI*+ #. $ffectivit# Clause. Ths Admnstratve Order sha take effect ten (10) days after ts pubcaton n
two (2) natona newspapers of genera crcuaton.
DONE n the Cty of Mana, ths 9th day of October n the year of Our Lord, Nneteen Hundred and Nnety-Seven.
A++E6 A
REGI*+AL AGRI2I+D/STRIAL GR*5T1 CE+TERS ,RGC7$-
SPECI0IC SITE
A++E6 .
ATTAC14E+T
October 17, 1997
HON. ERNESTO D. GARILAO
Secretary of Agraran Reform and Member
Cabnet Custer "A"
Ouezon Cty
S r:
I have the honor to transmt herewth for your nformaton and gudance, a certfed copy of Admnstratve Order
No. 363 dated October 9, 1997 entted "PRESCRIBING GUIDELINES FOR THE PROTECTION OF AREAS NON-
NEGOTIABLE FOR CONVERSION AND MONITORING COMPLIANCE WITH SECTION 20 OF LOCAL GOVERNMENT
CODE."
Pease be nformed that the above Admnstratve Order was pubshed n today's ssues of MALAYA and
CHRONICLE.
Very truy yours,
For the Executve Secretary
,SGD.- A/R*RA T. A8/I+*
Director ,1
SALIE+T 0EAT/RES *0 A* '"'
PRESCRI.I+G G/IDELI+ES 0*R T1E PR*TECTI*+ *0 AREAS +*+2+EG*TIA.LE 0*R C*+3ERSI*+
A+D 4*+IT*RI+G C*4PLIA+CE 5IT1 SEC. 2) *0 T1E LGC
Consodates exstng aws protectng areas non-negotabe for converson, and expands the coverage of
Presdenta AO 20 (1992)
Focuses on the and converson process wth genera prncpes to harmonze/modfy gudenes and procedures
of dfferent agences
Decares areas under Pres. AO 20 (1992), RA 7586 (1992) and PD 1586 (1978) as non-negotabe for
converson (tota of 2.92 mon has.):
Protected areas desgnated under the NIPAS (1.48 has.), ncudng watershed and aqufers
Irrgated ands (1.32 mon has.)
Irrgabe ands wth fundng commtments (112,355 has.)
SALIENT FEATURES OF AO 363
Further sub-cassfes areas as HIGHLY RESTRICTED FROM CONVERSION (convertbe ony upon strct
compance wth exstng aws/procedures, and satsfacton of soca beneft cost anayss approved by the DA,
or the EIA/ECC requrement of the DENR):
Lands cassfed as Hghy Restrcted from Converson n the DA's Network of Protected Areas
for Agrcuture
DAR's ands wth notce of acquston/vauaton, under VOS or VLT/DPS
DENR's envronmentay crtca areas
Provdes dsturbance compensaton for affected tenants and farmers, and encourages provson of reocaton
stes
SPECIAL ZONES
Regona Agro-Industra Centers (RICs/RAICs)
Toursm Deveopment Areas
Socazed Housng Areas
E"empted from -ocial 2enefit $ost Analysis re'uirement% Provided3 that the re'uirement of an E,A and/or E$$
shall always be complied with
Decsons of the DAR Secretary sha be appeaabe to the Offce of the Presdent upon favorabe
recommendaton of Cabnet Custer A
SALIE+T 0EAT/RES *0 A* '"'
Requres LGUs to foow the gudenes/procedures n recassfyng ands (Sec. 20, RA 7160)
Requres DA and DENR, among other agences, to prepare or update maps of areas dentfed as non-
negotabe for converson
Drects pertnent government agences to harmonze and amend ther procedures and gudenes on and use
and and use converson based on ths AO wthn 60 days from ts effectvty
Reterates penates and sanctons under exstng aws, such as: canceaton or wthdrawa of the converson
order, permts and censes, and permanent or mted suspenson of operatons of the appcant/deveoper
09 February 1998
HON. ERNESTO D. GARILAO
Secretary
Department of Agraran Reform
Eptca Road, Dman 1104,
Ouezon Cty
Dear Secretary Garao:
Ths concerns Admnstratve Order No. 363 dated 09 October 1997 entted "Prescribing Guidelines for the
Protection of Areas *on.negotiable for $onversion and 4onitoring $ompliance with -ection 56 of the &ocal
Government $ode."
May we nform you that shoreand areas of Laguna de Bay are not sub|ect to converson but sub|ect aways to the
Envronmenta Impact Assessment Process. Shoreand areas are those ands measured from Eevaton 12.50
meters and beow based from a datum 10.00 meters beow the Mean Lower Low Water (MLLW) eve at Mana Bay.
We are currenty undertakng the demarcaton of the shoreand areas of Laguna de Bay wth assstance from the
Natona Mappng and Resources Informaton Authorty (NAMRIA). Agences concerned w be furnshed wth a set
of maps of the shoreand areas after the Demarcaton Pro|ect s competed and the report s approved by the LLDA
Board of Drectors. We have gven NAMRIA unt 31 March 1998 to compete the pro|ect.
Very truy yours,
,SGD.- CARL*S C. T*4.*C
Acting General 4anager
Re9u:!ic Act +o. 84'( ,1#-, , 11
A+ ACT PRESCRI.I+G /RGE+T RELATED 4EAS/RES T* 4*DER+I;E T1E AGRIC/LT/RE A+D 0IS1ERIES
SECT*RS *0 T1E C*/+TR< I+ *RDER T* E+1A+CE T1EIR PR*0ITA.ILIT<, A+D PREPARE SAID
SECT*RS 0*R T1E C1ALLE+GES *0 T1E GL*.ALI;ATI*+ T1R*/G1 A+ ADE8/ATE, 0*C/SED A+D
RATI*+AL DELI3ER< *0 +ECESSAR< S/PP*RT SER3ICES, APPR*PRIATI+G 0/+DS T1ERE0*R A+D 0*R
*T1ER P/RP*SES
2e it enacted by the -enate and (ouse of Representatives of the Philippines in $ongress assembled3:
Section 1. Short Title. - Ths act sha be known as the %Agriculture and &isheries Moderni'ation Act of
!(()%
Section . Delineation of Strategic Agriculture and &isheries Development *ones. - The Department, n
consutaton wth the Department of Agraran Reform, the Department of Trade and Industry, the Department of
Envronment and Natura Resources, Department of Scence and Technoogy, the concerned LGU's, the organzed
farmers and fsher fok groups, the prvate sector and communtes sha, wthout pre|udce to the deveopment of
dentfed economc zones and free ports, estabsh and deneate based on sound resource accountng, the SAFDZ
wthn one (1) year from the effectvty of ths Act.
A rrgated ands, rrgabe ands aready covered by rrgaton a pro|ects wth frm fundng commtments, and
ands wth exstng or havng the potenta for growng hgh-vaue crops so deneated and ncuded wthn the
SAFDZ sha not be converted for a perod of fve (5) years front the effectvty for ths Act: Provided% however% That
not more than fve percent (5%) of the sad ands ocated wthn the SAFDZ may be converted upon compance
wth exstng aws, rues, reguatons, executve order and ssuances, and admnstratve orders reatng to and use
converson: Provided% further, That thereafter 1) a revew of the SAFDZ, specfcay of the productvty of the areas,
mprovement of the quaty of fe of farmers and fsher fok, and effcency and defectveness of the support
servces sha be conducted by the Department and the Department of Agraran Reform, n coordnaton wth the
Congressona Oversght Commttee on Agrcutura Commttee and Fsheres Modernzaton; 2) converson may be
aowed, f at a, on a case-to-case bass sub|ect to exstng aws, rues, reguatons, executve orders and
ssuances, and admnstratve orders governng and use converson; 3) n case of converson, the and owners w
pay the Department the amount equvaent to the government's nvestment cost ncudng nfaton.
Section 11. Penalt# for Agricultural +nactivit# and Premature Conversion. - Any person or |urdca entty
who knowngy or deberatey causes any rrgated agrcutura ands seven (7) hectares or arger, whether
contguous for not, wthn the protected areas for agrcutura deveopment, as specfed under Secton 6 n reaton
to Secton 9 of ths Act, to e de and unproductve for a perod exceedng one (1) year, uness due to force
ma|eure, sha be sub|ect to an de and tax of Three Thousand Pesos (P3,000.00) per hectare per year. In addton,
the voator, sha be requred to put back such ands to productve agrcutura use. Shoud the contnued
agrcutura nactvty, uness due to force ma|eure, exceed a perod of two (2) years, the and sha be sub|ect to
escheat proceedngs.
Any person found guty of premature or ega converson sha be penazed wth mprsonment of two (2) to sx
(6) years, or a fne equvaent to one hundred percent (100%) of the government's nvestment cost, or both, at the
dscreton of the court, and an accessory penaty of forfeture of the and and any mprovement thereon.
In addton, the DAR may mpose the foowng penates, after determnng, n an admnstratve proceedngs, that
voaton of ths aw has been commtted:
a. Consoaton or wthdrawa of the authorzaton for and use converson; and
b. Backstng, or automatc dsapprova of pendng and subsequent converson appcatons that they may
fe wth the DAR.
De9artment o% A=rarian Re%orm A&mini$trative *r&er +o. 1 ,1-, III ,%- an& ,>-, 1)
+AR '8

S/.?ECT @ Revised Rules and Regulations on the Conversion of Agricultural ,ands to -on.
Agricultural /ses

Pursuant to Secton 65 and 49 of Repubc Act (RA) No. 6657, the ''Comprehensve Agraran Reform Law of 1988",
Sectons 4 (|) and 5 () of Executve Order (EO) No. 129-A, the "Reorganzaton Act of the Department of Agraran
Reform", and the pertnent provsons of RA 8435, the "Agrcuture and Fsheres Modernzaton Act", and n
compance wth the Presdent's drectve on December 28, 1998, the revsed rues and reguatons on the
converson of agrcutura ands to non-agrcutura uses are hereby promugated as foows:
ARTICLE I
Preliminary Provisions
SECTI*+ 1. Statement of Policies. The converson of agrcutura ands to non-agrcutura uses sha be
governed by the foowng poces:
(a) The State sha preserve prme agrcutura ands to ensure food securty, ncudng suffcency n our
stape food, namey rce and corn; Cdpr
(b) The State sha ensure that a sectors of the economy and a regons of the country are gven
optmum opportunty to deveop through the ratona and sustanabe use of resources pecuar to each area
n order to maxmze agrcutura productvty, promote effcency and equty, and acceerate the
modernzaton of the agrcuture and fsheres sectors of the country; and
(c) Converson of agrcutura ands to non-agrcutura uses sha be strcty reguated and may be
aowed ony when the condtons prescrbed under RA 6657 and/or RA 8435 are present.
SECTI*+ 2. Definition of Terms. As used n ths Order, the terms are defned as foows:
(a) Agricultural &ands refer to ands devoted to or sutabe for the cutvaton of the so, pantng of
crops, growng of trees, rasng of vestock, poutry, fsh or aquacuture producton, ncudng the harvestng
of such farm products, and other farm actvtes and practces performed n con|uncton wth such farmng
operatons by persons whether natura or |urdca, and not cassfed by aw as mnera and, forest or
tmber, or natona park, nor recassfed as resdenta, commerca, ndustra or other non-agrcutura uses
before |une 15, 1988.
(b) Areas (ighly Restricted from $onversion refer to agrcutura ands enumerated n Secton 5 of these
Rues whose converson, f at a, sha be sub|ect to certan addtona requrements as prescrbed theren
and to the Secretary's approva regardess of the area.
(c) Areas *on.*egotiable for $onversion refer to agrcutura ands not egbe for converson as
enumerated n Secton 4 of these Rues.
(d) $omprehensive &and #se Plan refers to a document accompaned by maps and smar ustratons
whch represent the communty-desred pattern of popuaton dstrbuton and a proposa for the future
aocaton of and to the varous and-usng actvtes. It dentfes the aocaton, character and extent of the
area's and resources to be used for dfferent purposes and ncudes the process and the crtera empoyed
n the determnaton of the and use.
(e) $onversion 4oratorium refers to the pocy enuncated n RA 8435 whch prohbts the converson of
rrgated ands, rrgabe ands aready covered by rrgaton pro|ects wth frm fundng commtments, and
ands wth exstng or havng the potenta for growng hgh-vaue crops so deneated and ncuded wthn
the Strategc Agrcuture and Fsheres Deveopment Zones (SAFDZ) for the perod startng 10 February 1998
to 9 February 2003.
(f) Environmentally $ritical Areas 7E$As) refer to areas whch are ecoogcay, socay, or geoogcay
senstve as decared by aw such as:
(1) Areas decared by aw as natona parks, watershed reserves, wdfe preserves and
sanctuares;
(2) Areas set asde as potenta tourst spots;
(3) Areas whch are the habtats of endangered or threatened speces of ndgenous Phppne
pants and anmas;
(4) Areas of unque hstorc, archeoogca or scentfc nterest;
(5) Areas whch are tradtonay occuped by ndgenous peope or cutura communtes;
(6) Areas frequenty ht by natura caamtes (geoogc hazards, foods, typhoons and vocanc
actvtes);
(7) Areas wth crtca sopes;
(8) Areas cassfed as prme agrcutura ands;
(9) Recharged areas of aqufers;
(10) Water bodes whch are used for domestc suppy, or support fsheres and wdfe;
(11) Mangrove areas whch have crtca ecoogca functons or on whch peope depend for
vehood;
(12) Cora reefs;
(13) Mossy and vrgn forests;
(14) Rver banks; and
(15) Swamp forests and marshands.
(g) ,llegal $onversion s the converson by any andowner of hs agrcutura and nto any non-
agrcutura use wth ntent to avod the appcaton of RA 6657 to hs andhodng and to dspossess hs
tenant farmers of the and ted by them; or the change of the nature of ands outsde urban centers and
cty mts ether n whoe or n part after the effectvty of RA 6657, as provded n Sec. 73 (c) and (e)
respectvey of the sad Act. cdph
(h) ,rrigable &ands refer to ands whch dspay marked characterstcs |ustfyng the operaton of an
rrgaton system;
() ,rrigated &ands refer to ands servced by natura rrgaton or rrgaton factes. These ncude ands
where water s not ready avaabe as exstng rrgaton factes need rehabtaton or upgradng or where
rrgaton water s not avaabe year-round;
(|) &and #se refers to the manner of utzaton of and, ncudng ts aocaton, deveopment and
management;
(k) &and #se $onversion refers to the act or process of changng the current use of a pece of
agrcutura and nto some other use as approved by DAR
() *etwor+ of Protected Areas for Agricultural and Agro.industrial Development 7*PAAAD8 refers to
agrcutura areas dentfed by the Department of Agrcuture through the Bureau of Sos and Water
Management n coordnaton wth the Natona Mappng and Resources Informaton Authorty n order to
ensure the effcent utzaton of and for agrcuture and agro-ndustra deveopment and promote
sustanabe growth. The NPAAAD covers a rrgated areas, a rrgabe ands aready covered by rrgaton
pro|ects wth frm fundng commtments; a auva pans hghy sutabe for agrcuture, whether rrgated
or not; agro-ndustra cropands or and presenty panted for ndustra crops that support the vabty of
exstng agrcutura nfrastructure and agro-based enterprses; hghand or areas ocated at an eevaton of
fve hundred (500) meters or above and have the potenta for growng sem-temperate and hgh-vaue
crops; a agrcutura ands that are ecoogcay frage, the converson of whch w resut n serous
envronmenta degradaton, and mangrove areas and fsh sanctuares; a fshery areas as defned pursuant
to the Fsheres Code of 1998;
(m) *ational ,ntegrated Protected Areas -ystem 7*,PA-8 refers to the cassfcaton and admnstraton of
a desgnated protected areas to mantan essenta ecoogca processes and fe-support systems, to
preserve genetc dversty, to ensure sustanabe use of resources found theren, and to mantan ther
natura condtons to the greatest extent possbe. NIPAS ncudes areas desgnated as nta components of
the system under Sec. 5(a), RA 7586 and those procamed as part of the system n accordance wth the
procedure estabshed under the sad Act such as strct nature reserve, natura park, natura monument,
wdfe sanctuary, protected andscapes and seascapes; resource reserve; natura botc areas; and, other
categores estabshed by aw, conventons or nternatona agreements wheren the Phppne Government
s a sgnatory;
(n) Premature $onversion of Agricultural &and refers to the undertakng of any deveopment actvty, the
resuts of whch modfy or ater the physca characterstcs of the agrcutura ands to render them sutabe
for non-agrcutura purposes wthout an approved order of converson from the DAR;
(o) Prime Agricultural &ands refers to ands that can be used for varous or specfc agrcutura actvtes
and can provde optmum and sustanabe yed wth a mnmum of nputs and deveopment costs as
determned by the Department of Agrcuture (DA). LLpr
(p) Private Agricultural &ands refer to agrcutura ands as defned heren and owned by natura or
|urdca persons or by the government n ts propretary capacty;
(q) Proect 9easibility -tudy nvoves the nvestgaton of the market, technca, fnanca, economc, and
operatona vabty of the pro|ect. Specfcay, t ooks nto aternatve technca schemes to attan the
pro|ect's ob|ectves ncudng possbe sze, ocaton, producton process, and physca and fnanca resource
requrements. The study aso determnes whether the pro|ect woud generate suffcent benefts to offset
estmated nvestment and operatng costs. Smary, t ascertans whch of the aternatves woud yed the
argest postve returns to the economy that woud |ustfy the aocaton of resources. Fnay, t seeks the
most sutabe ega, admnstratve and organzatona arrangements to ensure that mpementaton woud
proceed as panned and that competed factes woud be propery mantaned operated.
(r) Reclassification of Agricultural &ands refers to the act of specfyng how agrcutura ands sha be
utzed for non-agrcutura uses such as resdenta, ndustra, commerca, as emboded n the and use
pan, sub|ect to the requrements and procedure for and use converson. It aso ncudes the reverson of
non-agrcutura ands to agrcutura use;
(s) -trategic Agriculture and 9isheries Development 0ones 7-A9D08 refer to areas wthn the NPAAAD
dentfed for producton, agro-processng and marketng actvtes to hep deveop and modernze, wth the
support of the government, the agrcuture and fsheres sectors n an envronmentay and soco-cuturay
sound manner;
(t) -ocio.Economic 2enefit $ost -tudy s an assessment of the pro|ect's net contrbuton to the natona
economc and soca wefare whch s done through a comparson of the economc and soca benefts
expected to be generated from the pro|ect wth the soca and economc costs of ts mpementaton and
operaton.
(u) -ocialized (ousing refers to housng programs and pro|ects coverng houses and ots or homeots
undertaken by the government or the prvate sector for the underprveged and homeess ctzens where
the maxmum cost per unt does not exceed the maxmum amount as prescrbed by the Housng and Urban
Deveopment Coordnatng Counc (HUDCC) whch sha ncude stes and servces deveopment, ong-term
fnancng, berazed terms on nterest payments, and such other benefts n accordance wth RA 7279;
(v) -pecial Economic 0one or E$!0!*E refers to seected areas whch are hghy deveoped or whch
have the potenta to be deveoped nto agro-ndustra, tourst, recreatona, commerca, bankng,
nvestment and fnanca centers whose metes and bounds are demted by Presdenta
Procamaton; LbLex
(w) #nauthorized $onversion s the act of changng the current use of the and from agrcutura (e.g.
rceand) to another agrcutura use the effect of whch s to exempt the and from CARP coverage (e.g.
vestock) wthout an order of converson from DAR, or changng the use of the and other than that aowed
under the order of converson ssued by DAR;
(x) )atershed refers to a catchment area or dranage basn from whch the waters of a stream or stream
system are drawn;
(y) 0oning s the deneaton/dvson of a cty/muncpaty nto functona zones where ony specfc and
uses are aowed. It drects and reguates the use of a ands n the communty n accordance wth an
approved or adopted and use pan for the cty/muncpaty. It prescrbed setback provsons, mnmum ot
szes, budng heghts and buk;
(z) 0oning !rdinance refers to a oca egsaton approvng the comprehensve and use pan and
provdng for the reguatons and other condtons, on the uses of and ncudng the mtaton on the
nfrastructures that may be paced thereon wthn the terrtora |ursdcton of a cty or muncpaty.
ARTICLE II
$overage
SECTI*+ '. Applica0ilit# of Rules. These Rues sha appy to the foowng agrcutura ands:
(a) Those to be converted to resdenta, commerca, ndustra, nsttutona and other non-agrcutura
purposes;
(b) Those to be devoted to another type of agrcutura actvty such as vestock, poutry, and fshpond
the effect of whch s to exempt the and from CARP coverage;
(c) Those to be converted to non-agrcutura use other than that prevousy authorzed; and
(d) Those recassfed to resdenta, commerca, ndustra, or other non-agrcutura uses on or after the
effectvty of RA 6657 on |une 15, 1988 pursuant to Secton 20 of R.A. 7160 and other pertnent aws and
reguatons, and are to be converted to such uses. However, for those recassfed pror to |une 15, 1998, the
gudenes on securng exempton cearance sha appy. prLL
SECTI*+ 4. Areas -on.-egotia0le for Conversion. The foowng areas sha not be sub|ect to converson:
(a) Agrcutura ands wthn protected areas desgnated under the Natona Integrated Protected Areas
System (NIPAS), ncudng watershed and recharged areas of acqufers, as determned by the Department of
Envronment and Natura Resources (DENR);
(b) A rrgated ands, as deneated by the Department of Agrcuture (DA) and/or the Natona Irrgaton
Admnstraton (NIA), where water s avaabe to support rce and other crop producton, and a rrgated
ands where water s not avaabe for rce and other crop producton but are wthn areas programmed for
rrgaton facty rehabtaton by the DA and/or the NIA; prcd
(c) A rrgabe ands aready covered by rrgaton pro|ects wth frm fundng commtments, as
deneated by DA and/or NIA; and
(d) A agrcutura ands wth rrgaton factes operated by prvate organzatons.
Appcatons for converson nvovng areas non-negotabe for converson sha not be gven due course, regardess
of whether a or some portons thereof are wthn areas hghy restrcted from converson or wthn prorty
deveopment areas for converson.
SECTI*+ (. Areas 1ighl# Restricted from Conversion. The foowng areas sha be cassfed as hghy
restrcted from converson:
(a) Irrgabe ands not covered by rrgaton pro|ects wth frm fundng commtment;
(b) Agro-ndustra cropands, or ands presenty panted to ndustra crops that support the economc
vabty of exstng agrcutura nfrastructure and agro-based enterprses;
(c) Hghands or areas ocated n eevatons of 500 meters or above and have the potenta for growng
sem-temperate and usuay hgh-vaue crops;
(d) Lands ssued wth notce of and vauaton and acquston, or sub|ect of a perfected agreement
between the andowner and the benefcares under the vountary and transfer/drect payment scheme
(VLT/DPS) under the Comprehensve Agraran Reform Program (CARP); and
(e) Envronmentay crtca areas (ECAs) as determned by the DENR n accordance wth aw.
Appcatons for converson nvovng areas hghy restrcted from converson sha requre apart from the standard
requrements, a pro|ect feasbty study and envronmenta compance certfcate (ECC) f wthn ECAs; The
appcaton sha be deberated upon by the PARC Land Use Technca Commttee (PLUTC) and sha be approved
by the Secretary regardess of the area.
SECTI*+ ". Priorit# Development Areas. In accordance wth EO 124, s. 1993 E.O. 184 s. 1994 and RA
7916, the foowng are consdered prorty deveopment areas for and converson:
(a) Specfc stes n regona agr-ndustra centers/regona ndustra centers (RAICs/RICs) dentfed by
the Department of Trade and Industry (DTI) and the DA;
(b) Toursm deveopment areas (TDAs) dentfed by the Department of Toursm (DOT) as ndcated n the
current Medum Term Phppne Deveopment Pan;
(c) Stes dentfed and proposed to be deveoped by oca government unts (LGUs) nto socazed
housng pro|ects whch are presenty used for agrcutura purposes;
(d) Stes ntended for Socazed Housng Pro|ects under EO 184 s. 1994;
(e) Agrcutura areas ntended for ECOZONE Pro|ects pursuant to RA 7916.
In prorty deveopment areas, an ECC sha not be a pre-condton to the approva of the converson appcaton;
nstead, t sha form part of the condtons thereof where appcabe. cdrep
SECTI*+ #. ,ands within SA&D*s. In accordance wth Secton 9 of RA 8435, the foowng rues sha govern
converson of ands wthn SAFDZs:
(a) A rrgated ands, rrgabe ands aready covered by rrgaton pro|ects wth frm fundng
commtments, and ands wth exstng or havng the potenta for growng hgh-vaue crops ncuded wthn
the SAFDZs sha be sub|ect to a converson moratorum for a perod of fve (5) years from 10 February 1998
to 9 February 2003.
(b) Durng the effectvty of the moratorum, converson may be aowed wth respect to ony 5% of sad
ands wthn SAFDZs upon compance wth exstng aws, rues and reguatons.
(c) The maxmum of 5% equvaent to the tota area of and egbe for converson to non-agrcutura
use sha be |onty determned by the DA and the DAR, upon the recommendaton of the Regona and
Natona SAFDZ Commttees pursuant to Rue 9.5.2 of DA Admnstratve Order No. 6, Seres of 1998, or the
mpementng rues and reguatons for RA 8435.
(d) After the expraton of the converson moratorum, converson may be aowed, f at a, on a case to
case bass, sub|ect to exstng aws, rues and reguatons on and use converson.
ARTICLE III
$onversion Procedures
SECTI*+ 8. Criteria for Conversion. The foowng crtera sha gude the resouton of appcatons for
converson:
(a) Converson may be aowed f the and sub|ect of appcaton s not among those consdered non-
negotabe for converson as provded n Secton 4 of these Rues;
(b) Converson may be aowed, n accordance wth Secton 65 of RA 6657, when the and has ceased to
be economcay feasbe and sound for agrcutura purposes; or the ocaty has become urbanzed and the
and w have greater economc vaue for resdenta, commerca, ndustra or other non-agrcutura
purposes;
(c) Converson of ands wthn SAFDZs, as provded n Rue 9.5.2 of DA Admnstratve Order No. 6, Seres
of 1998, sha take nto account the foowng factors:
(1) The converson of and use s consstent wth the natura expanson of the muncpaty or
ocaty, as contaned n the approved physca framework and and use pan;
(2) The area to be converted n use s not the ony remanng food producton area of the
communty;
(3) The and use converson sha not hamper the avaabty of rrgaton to nearby farmands;
(4) The areas wth ow productvty w be accorded prorty for use converson; and
(5) Suffcent dsturbance compensaton sha be gven to the farmers whose vehoods are
negatvey affected by the and use converson as provded for by exstng aws and reguatons. cdt
(d) Converson may be aowed when the envronmenta mpact assessment or nta envronmenta
examnaton, as may be approprate, sha have determned that t sha not adversey affect ar and water
quaty and the ecoogca stabty of the area.
SECTI*+ . 2ho Ma# Appl# for Conversion. The foowng persons may appy for converson:
(a) Owners of prvate agrcutura ands or other persons duy authorzed by the andowner;
(b) Benefcares of the agraran reform program after the apse of fve (5) years from award, reckoned
from the date of the ssuance of the Certfcate of Land Ownershp Award (CLOA), and who have fuy pad
ther obgatons and are quafed under these Rues, or persons duy authorzed by them; or,
(c) Government agences, ncudng government-owned or controed corporatons, and oca government
unts, whch own agrcutura and as ther patrmona property.
SECTI*+ 1). Documentar# Re3uirements. The documents requred of appcants for converson are as
foows:
(a) -tandard Re'uirements
(1) Duy accompshed appcaton for converson subscrbed and sworn to before a notary pubc;
(2) Speca power of attorney f appcant s not the regstered owner, or board resouton
authorzng appcant f the owner s a corporaton;
(3) True copy of OCT or TCT as certfed by the Regster of Deeds not ater than thrty (30) days
pror to fng. In case of untted and, the foowng sha be requred n eu of tte:
() Certfcaton from the DENR Communty Envronment and Natura Resources Offcer
(CENRO) that the andhodng has been cassfed as aenabe and dsposabe; and asadc
() Certfcaton from the DENR CENRO (for admnstratve confrmaton of mperfect tte) or
the Cerk of Court (for |udca confrmaton of mperfect tte) that the ttng
process/proceedngs has commenced and there are no adverse camants.
(4) Recent 5R photographs of the property duy certfed by the photographer/appcant; cd
(5) Soco-economc beneft cost study ncusve of detaed ste deveopment pan and work and
fnanca pan;
(6) Proof of fnanca and organzatona capabty to deveop and to ncude: profe of deveoper,
fnanca statement duy authentcated by a certfed pubc accountant, and artces of ncorporaton
or partnershp f appcant/deveoper s a corporaton or partnershp: Provided, That f the and s to be
used for socazed housng by the LGU under EO 124, s. 1993, a sanggunian resouton appropratng
funds for the pro|ect and authorzng the LGU to undertake the same sha be requred: Provided%
further, That f the socazed housng sha be undertaken by other government agences such as the
Natona Housng Authorty and the ke, a board resouton approvng the pro|ect and appropratng
funds therefor sha kewse be submtted.
(7) Lst of tenants/farmworkers/bona fide occupants who w be affected by the and use
converson and proof of payment or agreement to pay dsturbance compensaton, duy attested to by
the MARO. 2ona fide occupants sha refer to those authorzed by the andowner to stay n the
property;
(8) Certfcaton from the HLURB Regona Offcer or the Deputzed Zonng Admnstrator on the
actua zonng or cassfcaton of the and based on the approved Comprehensve Land Use Pan ctng
the Muncpa or Cty Zonng Ordnance and the date of ts approva by the HLURB or the Sanggunang
Panaawgan, as the case may be;
(9) Certfcaton from the authorzed DA offca statng, among others, the cassfcaton of the
property under the NPAAAD; ts convertbty status whether non-negotabe or hghy restrcted from
converson; and ts rrgaton coverage and sutabty for agrcuture;
(10) Certfcaton from the DENR Regona Executve Drector that the area sub|ect of appcaton for
converson s not wthn the NIPAS, not wthn envronmentay crtca areas, and w not nvove the
estabshment of an envronmentay crtca pro|ect (ECP); and
(11) Offca recept showng proof of payment of fng fee.
(b) -pecial Re'uirements
,f applicant is beneficiary of agrarian reform program:
(1) Certfcaton from the Provnca Agraran Reform Offcer (PARO) that at east fve (5) years
have apsed snce the award of the and;
(2) Certfcaton from the oca offce of Land Bank of the Phppnes (LBP) that the benefcary has
fuy pad hs obgatons wth the LBP: Provided, That f the and nvoves anded-estate or those
acqured under vountary and transfer/drect payment scheme (VLT/DPS), the certfcaton of the
PARO that the same has been fuy pad by the appcant sha be requred n eu of that of the LBP;
(3) |ont venture agreement or any other busness arrangement on the use of the and between
the EP/CLOA hoders and the deveoper where the and was awarded under the agraran reform
program;
,f application involves priority development areas:
(4) Endorsement from the concerned government agences n case of prorty deveopment areas
pursuant to Sec. 6 hereof: Provided, That an endorsement from the HLURB s needed f the pro|ect to
be undertaken s for socazed housng: Provided% further, That a board resouton approvng the
pro|ect from Phppne Economc Zone Authorty (PEZA) sha be requred f the area s ntended for
ECOZONE pro|ects. cdta
,f area is highly restricted from conversion:
(5) Pro|ect feasbty study.
,f application involves E$As or E$Ps:
(6) Envronmenta Compance Certfcate.
SECTI*+ 11. &iling of Application. The procedures n appyng for converson are as foows:
(a) The appcant secures appcaton form ether from the DAR Regona Offce or the DAR Centra Offce.
(b) The appcant accompshes the appcaton and secures/prepares the documents requred under
Secton 10 hereof.
(c) The appcant fes three (3) sets of the appcaton under oath (ncusve of orgna) together wth the
requred documents before the Regona Offce or the Centra Offce.
(d) The recevng offce sha revew the competeness of the appcaton. If found compete, the appcant
sha be advsed to pay the fng fee and post the cash bond prescrbed heren. Appcatons wth ncompete
requrements sha not be accepted.
SECTI*+ 12. &iling &ees. The fng fees for appcaton for converson sha accrue to the Agraran Reform
Fund pursuant to Secton 1 RA 8532. The rates are as foows:
Applied Area 9i"ed 9ee ,nspection 9ee
Fve (5) hectares or P1,000.00 P10,000.00
beow
More than fve (5) P2,000.00 P10,000.00
hectares
SECTI*+ 1'. Processing of Application.
(a) Posting of *otice
(1) Upon recept of the appcaton, the Regona Offce/Centra Offce sha mmedatey prepare
the Notce of Appcaton for Land Use Converson on the same day the appcaton s receved and
sha transmt the same to the DAR Muncpa Offce for postng.
(2) The MARO sha, wthn two (2) days from recept of the Notce of Appcaton, post the same n
two (2) conspcuous paces n the muncpaty, n the barangay(s) where the property s ocated, and
n the property tsef for a perod of ffteen (15) days.
(3) The MARO sha ssue a Certfcate of Postng of Appcaton wthn one (1) day from the apse
of the prescrbed perod for postng.
(b) 9ield ,nvestigation
(1) Wthn two (2) days from recept of the appcaton, a brefer sha be prepared by the Regona
Offce/Centra Offce for the fed nvestgaton and ocuar nspecton.
(2) The fed nvestgaton and ocuar nspecton sha be conducted on the property on the eghth
day from postng of the notce of appcaton.
(3) The team desgnated to conduct the fed nvestgaton sha verfy, among others, the
foowng:
() Veracty of nformaton contaned n the appcaton for and use converson;
() Coverage under CARP;
() Whether or not the and fas wthn the approprate zone n the and use pan of the cty
or muncpaty; cdasa
(v) Exstence of tenant/farmworkers/bona fide occupants;
(v) Whether or not the tenants/farmworkers /bona fide occupants have been pad or have
agreed to the terms of the dsturbance compensaton; and
(v) Other nformaton reevant and usefu n decdng whether to approve/dsapprove the
converson.
(4) The nvestgaton sha be competed wthn seven (7) days from start of the nspecton and the
report sha be submtted wthn three (3) days from competon thereof.
(c) Deliberation and Approval of Application
(1) On the twenteth day from postng of the notce and after competon of nspecton, the
Regona Offce/Centra Offce sha deberate on the merts of the appcaton and recommend
approprate acton thereon. The deberatng body at the Regona Offce/Centra Offce may ca the
appcant and/or the oppostors, f any for carfcatory questonng n order to |udcousy resove the
appcaton for converson.
(2) The recommendaton on the appcaton for converson sha be forwarded to the Regona
Drector, the Undersecretary concerned, or the Secretary, as the case may be, wthn ten (10) days
from the date of deberaton.
(3) Wthn ten (10) days from the submsson of the recommendaton, the approvng authorty
sha resove the appcaton furnshng copes thereof to the appcant and the oppostors, f any.
(d) Reimbursement for Government ,nvestment
Pursuant to DA Admnstratve Order No. 6, Seres of 1998, n case of approved
converson of and wthn SAFDZs, the regstered owner w pay the Government, through
the Treasurer of the Phppnes, the amount equvaent to the government's nvestment
cost ncudng nfaton, estmated to ncude a expendtures for capta goods expended
by any and a agences. fnanced from pubc, natona or oca budget resources,
whether sourced from domestc or foregn, on the and apped for and use
converson: Provided, That
(1) The vauaton of such nvestments w be equvaent to the tota government expendture
made on the and n queston, ad|usted for average nfaton over the perod snce the begnnng of
nvestment up to the month of approva of converson;
(2) The vauaton sha be determned |onty by the Muncpa Assessor and Muncpa Treasurer, n
consutaton wth those agences whch have made pubc nvestments n the area, and revewed by
the Provnca Assessor; and
(3) The payment by the andowner sha be made n a snge ump sum payment to the Treasurer
of the Phppnes, through the Muncpa Treasurer of the Muncpaty where the farmand concerned
s ocated.
SECTI*+ 14. Processing of Applications +nvolving Priorit# Development Areas. The foowng steps sha
be observed n the processng of appcatons nvovng RAICs/RICs, socazed housng, toursm deveopment, and
PEZA-approved ECOZONES:
(a) The appcant submts the duy accompshed appcaton form together wth the supportng
documents to the Regona Offce/Centra Offce. Ony appcatons wth compete requrements sha
be accepted and gven due course.
(b) The Regona Offce/Centra Offce sha mmedatey prepare the Notce of Appcaton and
transmt the same to the DAR Muncpa Offce for postng.
(c) The MARO posts the Notce of Appcaton wthn three (3) days from recept thereof n two (2)
conspcuous paces n the muncpaty, n the barangay(s) where the property s ocated, and n the
property tsef.
(d) An ocuar nspecton sha be conducted by a team assgned for the purpose wthn fve (5)
days from acceptance of the appcaton. The nspecton sha be competed wthn three (3) days.
(e) The team sha submt ts report together wth a draft order nvovng the appcaton wthn
three (3) days from nspecton.
(f) The approvng authorty sha resove the appcaton wthn two (2) days from recept of the
draft order.
SECTI*+ 1(. Cash 4ond and Performance 4ond. (a) To guarantee that the appcant sha not undertake
premature converson pendng consderaton of the appcaton and ensure fathfu compance wth the condtons
of the converson order by the appcant/deveoper, a cash bond and a performance bond sha be requred
pursuant to Secton 35, Chapter 6, Book IV of theAdmnstratve Code of 1987. ph
(b) The cash bond sha be posted upon fng of the appcaton equvaent to two pont fve percent
(2.5%) of the tota zona vaue of the and. It sha be refundabe upon ssuance of the order of converson or
convertbe nto performance bond at the appcant's opton. The cash bond sha be forfeted n favor of the
government n the event actua converson actvtes are conducted by the appcant pror to approva of the
appcaton. The forfeture sha be wthout pre|udce to the fng of crmna charges aganst those
responsbe for the premature converson.
(c) On the other hand, the performance bond sha be posted wthn fve (5) days from ssuance of the
order of converson n the form of ether of the foowng:
() Cash, manager's check, casher's check, rrevocabe etter of credt, bank draft equvaent to
two pont fve percent (2.5%) of the tota zona vaue of the and; or
() Bank guarantee equvaent to fve percent (5%) of the tota zona vaue of the and; or
() Surety equvaent to ffteen percent (15%) of the tota zona vaue of the and.
The performance bond sha be n favor of DAR to guarantee the payment of the amount of securty as penaty
n the event t s estabshed that the appcant/deveoper s n defaut of ther obgatons under the order of
converson. It sha be co-termnous wth the fna competon of the pro|ect and sha be forfeted n favor of the
government n case of voaton of any of the condtons of the converson order.
SECTI*+ 1". Distur0ance Compensation. (a) Dsturbance compensaton, n cash or n knd or both, sha be
pad by the andowner or the deveoper, as may be approprate, to tenants, farmworkers, or bona fide occupants to
be affected by the converson n such amounts or under such terms as may be mutuay agreed upon between
them and the andowner or the deveoper, but whch sha not be ess than fve (5) tmes the average of the gross
harvests on ther andhodng durng the ast fve (5) precedng caendar years, pursuant to Secton 36 of RA 3844,
as amended by Secton 7 of RA 6389, partcuary n the case of tenants.
(b) Compensaton n knd may consst of free housng, homeots, empoyment, and other benefts. The DAR
sha approve the terms of any agreement for the payment of dsturbance compensaton and montor compance
therewth. In no case sha compance wth the terms and condtons thereof extend beyond sxty (60) days from
the date of approva of the appcaton for converson.
(c) In the event the partes do not agree on the amount of dsturbance compensaton, the ssue may be
brought by ether of them before the DAR Ad|udcaton Board for resouton pursuant to exstng rues.
SECTI*+ 1#. Role of PARC ,and /se Technical Committee. the PARC Land Use Technca Commttee
(PLUTC) sha assst n resovng appcatons for converson partcuary n cases where nter-agency nputs are
cruca to the |udcous dsposton thereof. For ths purpose, the Secretary or hs duy authorzed representatve
may endorse to the PLUTC for nspecton and deberaton appcatons for converson such as, but not mted to,
those nvovng areas hghy restrcted from converson.
ARTICLE I3
Protests and !ppositions
xxx
ARTICLE 3
Approving Authorities
xxx
ARTICLE 3I
Appeals
xxx
ARTICLE 3II
$ancellation or )ithdrawal of $onversion !rders
xxx
ARTICLE 3III
4onitoring of &and $onversions
xxx
ARTICLE I6
,nvestigation and Prosecution of ,llegal% Premature% or #nauthorized $onversions
xxx
ARTICLE 6
Penalties and -anctions
xxx
ARTICLE 6I
Transitory Provisions
xxx
ARTICLE 6II
9inal Provisions
xxx
C!o$ure an& *9enin= o% Roa&$, 21
Section 21. $losure and !pening of Roads. -
(a) A oca government unt may, pursuant to an ordnance, permanenty or temporary cose or open any
oca road, aey, park, or square fang wthn ts |ursdcton: Provded, however, That n case of permanent
cosure, such ordnance must be approved by at east two-thrds (2/3) of a the members of the
sanggunan, and when necessary, an adequate substtute for the pubc facty that s sub|ect to cosure s
provded.
(b) No such way or pace or any part thereof sha be permanenty cosed wthout makng provsons for the
mantenance of pubc safety theren. A property thus permanenty wthdrawn from pubc use may be used
or conveyed for any purpose for whch other rea property beongng to the oca government unt
concerned may be awfuy used or conveyed: Provded, however, That no freedom park sha be cosed
permanenty wthout provson for ts transfer or reocaton to a new ste.
(c) Any natona or oca road, aey, park, or square may be temporary cosed durng an actua
emergency, or festa ceebratons, pubc raes, agrcutura or ndustra fars, or an undertakng of pubc
works and hghways, teecommuncatons, and waterworks pro|ects, the duraton of whch sha be
specfed by the oca chef executve concerned n a wrtten order: Provded, however, That no natona or
oca road, aey, park, or square sha be temporary cosed for athetc, cutura, or cvc actvtes not
offcay sponsored, recognzed, or approved by the oca government unt concerned.
(d) Any cty, muncpaty, or barangay may, by a duy enacted ordnance, temporary cose and reguate
the use of any oca street, road, thoroughfare, or any other pubc pace where shoppng mas, Sunday,
fea or nght markets, or shoppng areas may be estabshed and where goods, merchandse, foodstuffs,
commodtes, or artces of commerce may be sod and dspensed to the genera pubc.

Cor9orate Power$, 22
Section 22. $orporate Powers. -
(a) Every oca government unt, as a corporaton, sha have the foowng powers:
(1) To have contnuous successon n ts corporate name;
(2) To sue and be sued;
(3) To have and use a corporate sea;
(4) To acqure and convey rea or persona property;
(5) To enter nto contracts; and
(6) To exercse such other powers as are granted to corporatons, sub|ect to the mtatons
provded n ths Code and other aws.
(b) Loca government unts may contnue usng, modfy, or change ther exstng corporate seas: Provded,
That newy estabshed oca government unts or those wthout corporate seas may create ther own
corporate seas whch sha be regstered wth the Department of the Interor and Loca Government:
Provded, further, That any change of corporate sea sha aso be regstered as provded hereon.
(c) Uness otherwse provded n ths Code, no contract may be entered nto by the oca chef executve n
behaf of the oca government unt wthout pror authorzaton by the sanggunan concerned. A egbe
copy of such contract sha be posted at a conspcuous pace n the provnca capto or the cty, muncpa
or barangay ha.
(d) Loca government unts sha en|oy fu autonomy n the exercse of ther propretary functons and n
the mtatons provded n ths Code and other appcabe aws,
AutAoritB to +e=otiate an& Secure Grant$, 2'
Section 2'. Authority to *egotiate and -ecure Grants. - Loca chef executves may, upon authorty of the
sanggunan, negotate and secure fnanca grants or donatons n knd, n support of the basc servces or factes
enumerated under Secton 17 hereof, from oca and foregn assstance agences wthout necessty of securng
cearance or approva therefor from any department, agency, or offce of the natona government of from any
hgher oca government unt: Provded, That pro|ects fnanced by such grants or assstance wth natona securty
mpcatons sha be approved by the natona agency concerned: Provded, further, That when such natona
agency fas to act on the request for approva wthn thrty (30) days from recept thereof, the same sha be
deemed approved.
The oca chef executve sha, wthn thrty (30) days upon sgnng of such grant agreement or deed of donaton,
report the nature, amount, and terms of such assstance to both Houses of Congress and the Presdent.
Lia:i!itB %or Dama=e$, 24
Section 24. &iability for Damages. - Loca government unts and ther offcas are not exempt from abty for
death or n|ury to persons or damage to property.
+ew Civi! Co&e, Artic!e$ '4, 218), an& 218
Artic!e '4. When a member of a cty or muncpa poce force refuses or fas to render ad or protecton to any
person n case of danger to fe or property, such peace offcer sha be prmary abe for damages, and the cty or
muncpaty sha be subsdary responsbe therefor. The cv acton heren recognzed sha be ndependent of
any crmna proceedngs, and a preponderance of evdence sha suffce to support such acton.
Artic!e 218). The obgaton mposed by artce 2176 s demandabe not ony for one's own acts or omssons, but
aso for those of persons for whom one s responsbe.
The father and, n case of hs death or ncapacty, the mother, are responsbe for the damages caused by the
mnor chdren who ve n ther company.
Guardans are abe for damages caused by the mnors or ncapactated persons who are under ther authorty and
ve n ther company.
The owners and managers of an estabshment or enterprse are kewse responsbe for damages caused by ther
empoyees n the servce of the branches n whch the atter are empoyed or on the occason of ther functons.
Empoyers sha be abe for the damages caused by ther empoyees and househod hepers actng wthn the
scope of ther assgned tasks, even though the former are not engaged n any busness or ndustry.
The State s responsbe n ke manner when t acts through a speca agent; but not when the damage has been
caused by the offca to whom the task done propery pertans, n whch case what s provded n artce 2176 sha
be appcabe.
Lasty, teachers or heads of estabshments of arts and trades sha be abe for damages caused by ther pups
and students or apprentces, so ong as they reman n ther custody.
The responsbty treated of n ths artce sha cease when the persons heren mentoned prove that they
observed a the dgence of a good father of a famy to prevent damage. (1903a)
Artic!e 218. Provnces, ctes and muncpates sha be abe for damages for the death of, or n|ures suffered
by, any person by reason of the defectve condton of roads, streets, brdges, pubc budngs, and other pubc
works under ther contro or supervson. (n)
Re9u:!ic Act +o. 8#4, 4'
A+ ACT PR*3IDI+G 0*R A C*4PRE1E+SI3E AIR P*LL/TI*+ C*+TR*L P*LIC< A+D 0*R *T1ER
P/RP*SES
2e it enacted by the -enate and (ouse of Representatives of the Philippines in $ongress assembled3:
CAa9ter 1
Genera! Provi$ion$
Artic!e *ne
.a$ic Air 8ua!itB Po!icie$
Section 1. Short Title. - Ths Act sha be known as the CPhilippine Clean Air Act of !(((.C
Section 4'. Suits and Strategic ,egal Actions Against Pu0lic Participation and the $nforcement of This
Act. - Where a sut s brought aganst a person who fed an acton as provded n Sec. 41 of ths Act, or aganst any
person, nsttuton or government agency that mpements ths Act, t sha be the duty of the nvestgatng
prosecutor or the court, as the case may be, to mmedatey make a determnaton not exceedng thrty (30) days
whether sad ega acton has been fed to harass, vex, exert undue pressure or stfe such ega recourses of the
person companng of or enforcng the provsons of ths Act. Upon determnaton thereof, evdence warrantng the
same, the court sha dsmss the case and award attorney's fees and doube damages.
Ths provson sha aso appy and beneft pubc offcers who are sued for acts commtted n ther offca capacty,
ther beng no grave abuse of authorty, and done n the course of enforcng ths Act.