COMPREHENSIVE AGRARIAN REFORM LAW OF 1988 REPUBLIC ACT NO. 6657 CHAPTER I PRELIMINARY CHAPTER SECTION 1. Title.

- This Act shall be known as the Comprehensive Agrarian Reform Law of 1988. SECTION 2. Declaration of Principles and Policies. - It is the policy of the State to pursue a Co prehensi!e A"rarian #efor $ro"ra %CA#$&. The welfare of the lan'less far ers an' far workers will recei!e the hi"hest consi'eration to pro ote social (ustice an' to o!e the nation towar's soun' rural 'e!elop ent an' in'ustriali)ation* an' the establish ent of owner culti!atorship of econo ic-si)e' far s as the basis of $hilippine a"riculture. To this en'* a ore e+uitable 'istribution an' ownership of lan'* with 'ue re"ar' to the ri"hts of lan'owners to (ust co pensation an' to the ecolo"ical nee's of the nation* shall be un'ertaken to pro!i'e far ers an' far workers with the opportunity to enhance their 'i"nity an' i pro!e the +uality of their li!es throu"h "reater pro'ucti!ity of a"ricultural lan's. The a"rarian refor pro"ra is foun'e' on the ri"ht of far ers an' re"ular far workers* who are lan'less* to own 'irectly or collecti!ely the lan's they till or* in the case of other far workers* to recei!e a share of the fruits thereof. To this en'* the State shall encoura"e the (ust 'istribution of all a"ricultural lan's* sub(ect to the priorities an' retention li its set forth in this Act* ha!in" taken into account ecolo"ical* 'e!elop ental* an' e+uity consi'erations* an' sub(ect to the pay ent of (ust co pensation. The State shall respect the ri"ht of s all lan'owners an' shall pro!i'e incenti!es for !oluntary lan'-sharin". The State shall reco"ni)e the ri"ht of far ers* far workers an' lan'owners* as well as cooperati!es an' other in'epen'ent far ers, or"ani)ation* to participate in the plannin"* or"ani)ation* an' ana"e ent of the pro"ra * an' shall pro!i'e support to a"riculture throu"h appropriate technolo"y an' research* an' a'e+uate financial* pro'uction* arketin" an' other support ser!ices.chan robles !irtual law library The State shall apply the principles of a"rarian refor or stewar'ship* whene!er applicable* in accor'ance with law* in the 'isposition or utili)ation of other natural resources* inclu'in" lan's of the public 'o ain* un'er lease or concession* suitable to a"riculture* sub(ect to prior ri"hts* ho estea' ri"hts of s all settlers an' the ri"hts of in'i"enous co unities to their ancestral lan's. The State ay resettle lan'less far ers an' far 'istribute' to the in the anner pro!i'e' by law. workers in its own a"ricultural estates* which shall be

-y eans of appropriate incenti!es* the State shall encoura"e the for ation an' fa ily far s to be constitute' by in'i!i'ual beneficiaries an' s all lan'owners.

aintenance of econo ic-si)e'

The State shall protect the ri"hts of subsistence fisher en* especially of local co unities* to the preferential use of co unal arine an' fishin" resources* both inlan' an' offshore. It shall pro!i'e support to such fisher en throu"h appropriate technolo"y an' research* a'e+uate financial* pro'uction an' arketin" assistance an' other ser!ices* The State shall also protect* 'e!elop an' conser!e such resources. The protection shall e.ten' to offshore fishin" "roun's of subsistence fisher en a"ainst forei"n intrusion. /ishworkers shall recei!e a (ust share fro their labor in the utili)ation of arine an' fishin" resources. The State shall be "ui'e' by the principles that lan' has a social function an' lan' ownership has a social responsibility. Owners of a"ricultural lan' ha!e the obli"ation to culti!ate 'irectly or throu"h labor a' inistration the lan's they own an' thereby ake the lan' pro'ucti!e. The State shall pro!i'e incenti!es to lan'owners to in!est the procee's of the a"rarian refor pro"ra to pro ote in'ustriali)ation* e ploy ent an' pri!ati)ation of public sector enterprises. /inancial instru ents use' as pay ent for lan's shall contain features that shall enhance ne"otiability an' acceptability in the arketplace. The State ay lease un'e!elope' lan's of the public 'o ain to +ualifie' entities for the 'e!elop ent of capitalintensi!e far s* tra'itional an' pioneerin" crops especially those for e.ports sub(ect to the prior ri"hts of the beneficiaries un'er this Act. SECTION 0. Definitions. - /or the purpose of this Act* unless the conte.t in'icates otherwise1 %a& Agrarian Reform eans the re'istribution of lan's* re"ar'less of crops or fruits pro'uce'* to far ers an' re"ular far workers who are lan'less* irrespecti!e of tenurial arran"e ent* to inclu'e the totality of factors an' support ser!ices 'esi"ne' to lift the econo ic status of the beneficiaries an' all other arran"e ents alternati!e to the physical re'istribution of lan's* such as pro'uction or profit-sharin"* labor a' inistration* an' the 'istribution of shares of stock which will allow beneficiaries to recei!e a (ust share of the fruits of the lan's they work. %b& Agriculture Agricultural !nterprise or Agricultural Activit" eans the culti!ation of the soil* plantin" of crops* "rowin" of fruit trees* inclu'in" the har!estin" of such far pro'ucts* an' other far acti!ities an' practices

perfor e' by a far er in con(unction with such far in" operations 'one by persons whether natural of (uri'ical. %As a en'e' by #. A. 2331&chan robles !irtual law library %c& Agricultural Land refers to lan' 'e!ote' to a"ricultural acti!ity as 'efine' in this Act an' not classifie' as ineral* forest* resi'ential* co ercial or in'ustrial lan'. %'& Agrarian Dispute refers to any contro!ersy relatin" to tenurial arran"e ents* whether leasehol'* tenancy* stewar'ship or otherwise* o!er lan's 'e!ote' to a"riculture* inclu'in" 'isputes concernin" far workers, associations or representation of persons in ne"otiatin"* fi.in"* aintainin"* chan"in" or seekin" to arran"e ter s or con'itions of such tenurial arran"e ents. It inclu'es any contro!ersy relatin" to co pensation of lan's ac+uire' un'er this Act an' other ter s an' con'itions of transfer of ownership fro lan'owners to far workers* tenants an' other a"rarian refor beneficiaries* whether the 'isputants stan' in the pro.i ate relation of far operator an' beneficiary* lan'owner an' tenant* or lessor an' lessee. %e& #dle or A$andoned Land refers to any a"ricultural lan' not culti!ate'* tille' or 'e!elope' to pro'uce any crop nor 'e!ote' to any specific econo ic purpose continuously for a perio' of three %0& years i e'iately prior to the receipt of notice of ac+uisition by the "o!ern ent as pro!i'e' un'er this Act* but 'oes not inclu'e lan' that has beco e per anently or re"ularly 'e!ote' to non-a"ricultural purposes. It 'oes not inclu'e lan' which has beco e unpro'ucti!e by reason of force ma%eure or any other fortuitous e!ent1 Provided that prior to such e!ent* such lan' was pre!iously use' for a"ricultural or other econo ic purposes. %f& &armer refers to a natural person whose pri ary li!elihoo' is culti!ation of lan' or the pro'uction of a"ricultural crops either by hi self* or pri arily with the assistance of his i e'iate far househol'* whether the lan' is owne' by hi * or by another person un'er a leasehol' or share tenancy a"ree ent or arran"e ent with the owner thereof. %"& &armwor'er is a natural person who ren'ers ser!ice for !alue as an e ployee or laborer in an a"ricultural enterprise or far re"ar'less of whether his co pensation is pai' on a 'aily* weekly* onthly or (pa'"aw( basis. The ter inclu'es an in'i!i'ual whose work has cease' as a conse+uence of* or in connection with* a pen'in" a"rarian 'ispute who has not obtaine' a substantially e+ui!alent an' re"ular far e ploy ent. %h& Regular &armwor'er is a natural person who is e ploye' on a per anent basis by an a"ricultural enterprise or far . %i& )easonal &armwor'er is a natural person who is e ploye' on a recurrent* perio'ic or inter ittent basis by an a"ricultural enterprise or far * whether as a per anent or a non-per anent laborer* such as (dumaan( (sacada( an' the like. %(& *ther &armwor'er is a far worker who 'oes not fall un'er para"raphs %"&* %h& an' %i&. %k& Cooperatives shall refer to or"ani)ations co pose' pri arily of s all a"ricultural pro'ucers* far ers* far workers* or other a"rarian refor beneficiaries who !oluntarily or"ani)e the sel!es for the purpose of poolin" lan'* hu an* technolo"ical* financial or other econo ic resources* an' operate' on the principle of one e ber* one !ote. A (uri'ical person ay be a e ber of a cooperati!e* with the sa e ri"hts an' 'uties as a natural person. C4A$TE# II CO5E#A6E SEC. 7. )cope. - The Co prehensi!e A"rarian #efor 8aw of 1933 shall co!er* re"ar'less of tenurial arran"e ent an' co o'ity pro'uce'* all public an' pri!ate a"ricultural lan's as pro!i'e' in $rocla ation No. 101 an' E.ecuti!e Or'er No. 229* inclu'in" other lan's of the public 'o ain suitable for a"riculture. :ore specifically* the followin" lan's are co!ere' by the Co prehensi!e A"rarian #efor $ro"ra 1

%a& All alienable an' 'isposable lan's of the public 'o ain 'e!ote' to or suitable for a"riculture. No reclassification of forest or ineral lan's to a"ricultural lan's shall be un'ertaken after the appro!al of this Act until Con"ress* takin" into account ecolo"ical* 'e!elop ental an' e+uity consi'erations* shall ha!e 'eter ine' by law* the specific li its of the public 'o ain; b& All lan's of the public 'o ain in e.cess to the specific li its as 'eter ine' by Con"ress in the prece'in" para"raph; c& All other lan's owne' by the 6o!ern ent 'e!ote' to or suitable for a"riculture; an'chan robles !irtual law library '& All pri!ate lan's 'e!ote' to or suitable for a"riculture re"ar'less of the a"ricultural pro'ucts raise' or that can be raise' thereon. SEC. <. )chedule of #mplementation. - The 'istribution of all lan's co!ere' by this Act shall be i ple ente' i e'iately an' co plete' within ten %1=& years fro the effecti!ity thereof.

SEC. >. Retention Limits. + E.cept as otherwise pro!i'e' in this Act* no person ay own or retain* 'irectly* any public or pri!ate a"ricultural lan'* the si)e of which shall !ary accor'in" to factors "o!ernin" a !iable fa ily-si)e' far * such as co o'ity pro'uce'* terrain* infrastructure* an' soil fertility as 'eter ine' by the $resi'ential A"rarian #efor Council %$A#C& create' hereun'er* but in no case shall the retention by the lan'owner e.cee' fi!e %<& hectares. Three %0& hectares ay be awar'e' to each chil' of the lan'owner* sub(ect to the followin" +ualifications1 %1& that he is at least fifteen %1<& years of a"e; an' %2& that he is actually tillin" the lan' or 'irectly ana"in" the far 1 Provided That lan'owners whose lan's ha!e been co!ere' by $resi'ential ?ecree No. 22 shall be allowe' to keep the area ori"inally retaine' by the thereun'er; Provided further That ori"inal ho estea' "rantees or 'irect co pulsory heirs who still own the ori"inal ho estea' at the ti e of the appro!al of this Act shall retain the sa e areas as lon" as they continue to culti!ate sai' ho estea'. The ri"ht to choose the area to be retaine'* which shall be co pact or conti"uous* shall pertain* to the lan'owner1 Provided however That in case the area selecte' for retention by the lan'owner is tenante'* the tenant shall ha!e the option to choose whether to re ain therein or be a beneficiary in the sa e or another a"ricultural lan' with si ilar or co parable features. In case the tenant chooses to re ain in the retaine' area* he shall be consi'ere' a leasehol'er an' shall lose his ri"ht to be a beneficiary un'er this Act. In case the tenant chooses to be a beneficiary in another a"ricultural lan'* he loses his ri"ht as a leasehol'er to the lan' retaine' by the lan'owner. The tenant ust e.ercise this option within a perio' of one %1& year fro the ti e the lan'owner anifests his choice of the area for retention. In all cases* the security of tenure of the far ers or far shall be respecte'. workers on the lan' prior to the appro!al of this Act

@pon the effecti!ity of this Act* any sale* 'isposition* lease* ana"e ent contract or transfer of possession of pri!ate lan's e.ecute' by the ori"inal lan'owner in !iolation of this Act shall be null an' !oi'1 Provided however That those e.ecute' prior to this Act shall be !ali' only when re"istere' with the #e"ister of ?ee's within a perio' of three %0& onths after the effecti!ity of this ActThereafter* all #e"isters of ?ee's shall infor the ?A# within thirty %0=& 'ays of any transaction in!ol!in" a"ricultural lan's in e.cess of fi!e %<& hectares. SEC. 2. Priorities. - The ?A#* in coor'ination with the $A#C shall plan an' pro"ra the ac+uisition an' 'istribution of all a"ricultural lan's throu"h a perio' of ten %1=& years fro the effecti!ity of this Act. 8an's shall be ac+uire' an' 'istribute' as follows1 $hase One1 #ice an' corn lan's un'er $resi'ential ?ecree No. 22; all i'le or aban'one' lan's; all pri!ate lan's !oluntarily offere' by the owners for a"rarian refor ; all lan's foreclose' by "o!ern ent financial institution; all lan's ac+uire' by the $resi'ential Co ission on 6oo' 6o!ern ent %$C66&; an' all other lan's owne' by the "o!ern ent 'e!ote' to or suitable for a"riculture* which shall be ac+uire' an' 'istribute' i e'iately upon the effecti!ity of this Act* with the i ple entation to be co plete' within a perio' of not ore than four %7& years; $hase two1 All alienable an' 'isposable public a"ricultural lan's; all arable public a"ricultural lan's un'er a"ro-forest* pasture an' a"ricultural leases alrea'y culti!ate' an' plante' to crops in accor'ance with Section >* Article AIII of the Constitution; all public a"ricultural lan's which are to be opene' for new 'e!elop ent an' resettle ent; an' all pri!ate a"ricultural lan's in e.cess of fifty %<=& hectares* insofar as the e.cess hectara"e is concerne'* to i ple ent principally the ri"ht of far ers an' re"ular far workers* who are lan'less* to own 'irectly or collecti!ely the lan's they till* which shall be 'istribute' i e'iately upon the effecti!ity of this Act* with the i ple entation to be co plete' within a perio' of not ore than four %7& years. $hase Three1 All other pri!ate a"ricultural lan's co encin" with lar"e lan'hol'in"s an' procee'in" to e'iu an' s all lan'hol'in"s un'er the followin" sche'ule1 a& 8an'hol'in"s abo!e twenty-four %27& hectares up to fifty %<=& hectares* to be"in on the fourth %7th& year fro the effecti!ity of this Act an' to be co plete' within three %0& years; an' b& 8an'hol'in"s fro the retention li it up to twenty-four %27& hectares* to be"in on the si.th %>th& year fro the effecti!ity of this Act an' to be co plete' within four %7& years; to i ple ent principally the ri"ht of far ers an' re"ular far workers who are lan'less* to own 'irectly or collecti!ely the lan's they till. The sche'ule of ac+uisition an' re'istribution of all a"ricultural lan's co!ere' by this pro"ra shall be a'e in accor'ance with the abo!e or'er of priority* which shall be pro!i'e' in the i ple entin" rules to be prepare' by the $resi'ential A"rarian #efor Council %$A#C&* takin" into consi'eration the followin"1 the nee' to 'istribute lan's to the tiller at the earliest practicable ti e; the nee' to enhance a"ricultural pro'ucti!ity; an' the a!ailability of fun's an' resources to i ple ent an' support the pro"ra . In any case* the $A#C* upon reco en'ation by the $ro!incial A"rarian #efor Coor'inatin" Co ittee %$A#CCO:&* ay 'eclare certain pro!inces or re"ions as priority lan' refor areas* in which case the ac+uisition an' 'istribution of pri!ate a"ricultural lan's therein ay be i ple ente' ahea' of the abo!e sche'ules. In effectin" the transfer within these "ui'elines* priority ust be "i!en to lan's that are tenante'. The $A#C shall establish "ui'elines to i ple ent the abo!e priorities an' 'istribution sche e* inclu'in" the 'eter ination of who are +ualifie' beneficiaries1 Provided That an owner-tiller ay be a beneficiary of the lan' he 'oes not own but is actually culti!atin" to the e.tent of the 'ifference between the area of the lan' he owns an' the awar' ceilin" of three %0& hectares. SEC. 3. ,ultinational Corporations. - All lan's of the public 'o ain lease'* hel' or possesse' by ultinational corporations or associations* an' other lan's owne' by the "o!ern ent or "o!ern ent-owne' or controlle'

corporations* associations* institutions or entities* 'e!ote' to e.istin" an' operational a"ribusiness or a"roin'ustrial enterprises* operate' by ultinational corporations an' associations* shall be pro"ra e' for ac+uisition an' 'istribution i e'iately upon the effecti!ity of this Act* with the i ple entation to be co plete' within three %0& years. 8an's co!ere' by the para"raph i e'iately prece'in"* un'er lease* an' the like* shall be 'ispose' of as follows1 ana"e ent* "rower or ser!ice contracts*

%a& 8ease* ana"e ent* "rower or ser!ice contracts co!erin" such lan's co!erin" an a""re"ate area in e.cess of 1*=== hectares* lease' or hel' by forei"n in'i!i'uals in e.cess of <== hectares are 'ee e' a en'e' to confir with the li its set forth in Section 0 of Article AIII of the Constitution. %b& Contracts co!erin" areas not in e.cess of 1*=== hectares in the case of such in'i!i'uals shall be allowe' to continue un'er their ori"inal ter s an' con'itions but not beyon' Au"ust 29* 1992* or their !ali' ter ination* whiche!er co es sooner* after which* such a"ree ents shall continue only when confir e' by the appropriate "o!ern ent a"ency. Such contracts shall likewise continue e!en after the lan' has been transferre' to beneficiaries or awar'ees thereof* which transfer shall be i e'iately co ence' an' i ple ente' within the perio' of three %0& years entione' in para"raph 1 hereof. %c& In no case will such leases an' other a"ree ents now bein" i ple ente' e.ten' beyon' Au"ust 29* 1992* when all lan's sub(ect hereof shall ha!e been 'istribute' co pletely to +ualifie' beneficiaries or awar'ees. Such a"ree ents can continue thereafter only un'er a new contract between the "o!ern ent or +ualifie' beneficiaries or awar'ees* on the one han'* an' sai' enterprises* on the other.chan robles !irtual law library 8an's lease'* hel' or possesse' by ultinational corporations* owne' by pri!ate in'i!i'uals an' pri!ate non"o!ern ental corporations* associations* institutions* an' entities* citi)ens of the $hilippines* shall be sub(ect to i e'iate co pulsory ac+uisition an' 'istribution upon the e.piration of the applicable lease* ana"e ent "rower of ser!ice contract in effect as of Au"ust 29* 1932* or otherwise* upon its !ali' ter ination* whiche!er co es sooner* but not later than after ten %1=& years followin" the effecti!ity of this Act4owe!er* 'urin" the sai' perio' of effecti!ity* the "o!ern ent shall take steps to ac+uire these lan's for i e'iate 'istribution thereafter. In "eneral* lan's shall be 'istribute' 'irectly to the in'i!i'ual worker-beneficiaries. In case it is not econo ically feasible an' soun' to 'i!i'e the lan'* then they shall for a workers, cooperati!e or association which will 'eal with the corporation or business association or any other proper party* for the purpose of enterin" into a lease or "rowers a"ree ent an' for all other le"iti ate purposes. @ntil a new a"ree ent is entere' into by an' between the workers, cooperati!e or association an' the corporation or business association or any other proper party* any a"ree ent e.istin" at the ti e this Act takes effect between the for er an' the pre!ious lan'owner shall be respecte' by both the workers, cooperati!e or association an' the corporation* business association or such other proper party. In no case shall the i ple entation or application of this Act (ustify or result in the re'uction of status or 'i inution of any benefits recei!e' or en(oye' by the worker-beneficiaries* or in which they ay ha!e a !este' ri"ht* at the ti e this Act beco es effecti!e. The pro!ision of Section 02 of this Act* with re"ar' to pro'uction an' inco e-sharin" shall apply to far s operate' by ultinational corporations. ?urin" the transition perio'* the new owners shall be assiste' in their efforts to learn o'ern technolo"y in pro'uction. Enterprises which show a willin"ness an' co it ent an' "oo' faith efforts to i part !oluntarily such a'!ance' technolo"y will be "i!en preferential treat ent where feasible. In no case shall a forei"n corporation* association* entity or in'i!i'ual en(oy any ri"htr or pri!ile"es better than those en(oye' by a 'o estic corporation* association* entity or in'i!i'ual. SEC. 9. Ancestral Lands. - /or purposes of this Act* ancestral lan's of each in'i"enous cultural co unity shall inclu'e* but not be li ite' to* lan's in the actual* continuous an' open possession an' occupation of the co unity an' its e bers1 Provided That the Torrens Syste shall be respecte'. The ri"ht of these co unities to their ancestral lan's shall be protecte' to ensure their econo ic* social an' cultural well-bein". In line with the other principles of self-'eter ination an' autono y* the syste s of lan' ownership* lan' use* an' the o'es of settlin" lan' 'isputes of all these co unities ust be reco"ni)e' an' respecte'. Any pro!ision of law to the contrary notwithstan'in"* the $A#C ay suspen' the i ple entation of this Act with respect to ancestral lan's for the purpose of i'entifyin" an' 'elineatin" such lan's1 Provided That in the autono ous re"ions* the respecti!e le"islatures ay enact their own laws on ancestral 'o ain sub(ect to the pro!isions of the Constitution an' the principles enunciate' in this Act an' other national laws. SEC. 1=. !-emptions and !-clusions.+ %a& 8an's actually* 'irectly an' e.clusi!ely use' for parks* wil'life* forest reser!es* reforestation* fish sanctuaries an' bree'in" "roun's* watershe's an' an"ro!es shall be e.e pt fro the co!era"e of this Act. %b& $ri!ate lan's actually* 'irectly an' e.clusi!ely use' for prawn far s an' fishpon's shall be e.e pt fro the co!era"e of this Act1 Provided That sai' prawn far s an' fishpon's ha!e not been 'istribute' an' Certificate of 8an' Ownership Awar' %C8OA& issue' un'er the A"rarian #efor $ro"ra .

In cases where the fishpon's or prawn far s ha!e been sub(ecte' to the Co prehensi!e A"rarian #efor 8aw* by !oluntary offer to sell* or co ercial far s 'efer ent or notices of co pulsory ac+uisition* a si ple an' absolute a(ority of the actual re"ular workers or tenants ust consent to the e.e ption within one %1& year fro the effecti!ity of this Act. Bhen the workers or tenants 'o not a"ree to this e.e ption* the fishpon's or prawn far s shall be 'istribute' collecti!ely to the worker-beneficiaries or tenants who shall for cooperati!e or association to ana"e the sa e. In cases where the fishpon's or prawn far s ha!e not been sub(ecte' to the Co prehensi!e A"rarian #efor 8aw* the consent of the far workers shall no lon"er be necessary; howe!er* the pro!ision of Section 02-A hereof on incenti!es shall apply. %c& 8an's actually* 'irectly an' e.clusi!ely use' an' foun' to be necessary for national 'efense* school sites an' ca puses* inclu'in" e.peri ental far stations operate' by public or pri!ate schools for e'ucational purposes* see's an' see'lin"s research an' pilot pro'uction center* church sites an' con!ents appurtenant thereto* os+ue sites an' Isla ic centers appurtenant thereto* co unal burial "roun's an' ce eteries* penal colonies an' penal far s actually worke' by the in ates* "o!ern ent an' pri!ate research an' +uarantine centers an' all lan's with ei"hteen percent %13C& slope an' o!er* e.cept those alrea'y 'e!elope'* shall be e.e pt fro the co!era"e of this Act.%As a en'e' by #. A. 2331& SEC. 11. Commercial &arming. + Co ercial far s which are pri!ate a"ricultural lan's 'e!ote' to salt be's* fruit far s* orchar's* !e"etable an' cut-flower far s* an' cacao* coffee an' rubber plantations* shall be sub(ect to i e'iate co pulsory ac+uisition an' 'istribution after ten %1=& years fro the effecti!ity of this Act. In the case of new far s* the ten-year perio' shall be"in fro the first year of co ercial pro'uction an' operation* as 'eter ine' by the ?A#. ?urin" the ten-year perio'* the 6o!ern ent shall initiate steps necessary to ac+uire these lan's* upon pay ent of (ust co pensation for the lan' an' the i pro!e ents thereon* preferably in fa!or of or"ani)e' cooperati!es or associations* which shall thereafter ana"e the sai' lan's for the workersbeneficiaries.%As a en'e' by #. A. 2331&

C4A$TE# III I:$#O5E:ENT O/ TEN@#IA8 AN? 8A-O# #E8ATIONS SEC. 12. Determination of Lease Rentals . - In or'er to protect an' i pro!e the tenurial an' econo ic status of the far ers in tenante' lan's un'er the retention li it an' lan's not yet ac+uire' un'er this Act* the ?A# is an'ate' to 'eter ine an' fi. i e'iately the lease rentals thereof in accor'ance with Section 07 of #. A. No. 0377 as a en'e' 1 Provided That the ?A# shall i e'iately an' perio'ically re!iew an' a'(ust the rental structure for 'ifferent crops* inclu'in" rice an' corn* of 'ifferent re"ions in or'er to i pro!e pro"ressi!ely the con'itions of the far er* tenant or lessee. SEC. 12-A. #ncentives. - In'i!i'uals an' entities ownin" or operatin" fishpon' an' prawn far s are hereby an'ate' to e.ecute within si. %>& onths fro the effecti!ity of this Act* an incenti!e plan with their re"ular fishpon' or prawn far workers or fishpon' or prawn far workers, or"ani)ation* if any* whereby se!en point fi!e percent %2.<C& of their net profit before ta. fro the operation of the fishpon' or prawn far s are 'istribute' within si.ty %>=& 'ays at the en' of the fiscal year as co pensation to re"ular an' other pon' workers in such pon's o!er an' abo!e the co pensation they currently recei!e. In or'er to safe"uar' the ri"ht of the re"ular fishpon' or prawn far workers un'er the incenti!es plan* the book of the fishpon' or prawn far owners shall be sub(ect to perio'ic au'it or inspection by certifie' public accountants chosen by the workers. The fore"oin" pro!ision shall not apply to a"ricultural lan's subse+uently con!erte' to fishpon's or prawn far s pro!i'e' the si)e of the lan' con!erte' 'oes not e.cee' the retention li it of the lan'owner. %As a''e' by #. A. 2331& SEC. 10. Production+)haring Plan. + Any enterprise a'optin" the sche e pro!i'e' for in Section 02 or operatin" un'er a pro'uction !enture* lease* ana"e ent contract or other si ilar arran"e ent an' any far co!ere' by Sections 3 an' 11 hereof is hereby an'ate' to e.ecute within ninety %9=& 'ays fro the effecti!ity of this Act* a pro'uction-sharin" plan un'er "ui'elines prescribe' by the appropriate "o!ern ent a"ency. Nothin" herein shall be construe' to sanction the 'i inution of any benefits such as salaries* bonuses* lea!es an' workin" con'itions "rante' to the e ployee-beneficiaries un'er e.istin" laws* a"ree ents* an' !oluntary practice by the enterprise* nor shall the enterprise an' its e ployee-beneficiaries be pre!ente' fro enterin" into any a"ree ent with ter s ore fa!orable to the latter.chan robles !irtual law library

C4A$TE# I5 #E6IST#ATION SEC. 17. Registration of Landowners. - Bithin one hun're' ei"hty %13=& 'ays fro the effecti!ity of this Act* natural or (uri'ical* inclu'in" "o!ern ent entities* that own or clai to own a"ricultural lan's* whether in their na es or in the na e of others* e.cept those who ha!e alrea'y re"istere' pursuant to E.ecuti!e Or'er No. 229*

who shall be entitle' to such incenti!es as ay be pro!i'e' for by $A#C* shall file a sworn state ent in the proper assessors office in the for to be prescribe' by the ?A#* statin" the followin" infor ation1 %a& The 'escription an' area of the property; %b& The a!era"e "ross inco e fro the property for at least three %0& years; %c& The na es of the tenants an' far workers therein; %'& The crops plante' in the property an' the area co!ere' by each crop as of Dune 1*1932; %e& The ter s of ort"a"es* leases* an' ana"e ent contracts subsistin" as of Dune 1* 1932; an' %f& The latest 'eclare' arket !alue of the lan' as 'eter ine' by the city or pro!incial assessor. SEC. 1<. Registration of .eneficiaries. - The ?A# in coor'ination with the -aran"ay A"rarian #efor Co ittee %-A#C& as or"ani)e' in this Act* shall re"ister all a"ricultural lessees* tenants an' far workers who are +ualifie' to be beneficiaries with the assistance of the -A#C an' the ?A# shall pro!i'e the followin" 'ata1 Na es an' e bers of their i e'iate 8ocation an' area of the lan' %c& Crops plante'; %'& Their share in the har!est or a ount of rental pai' or wa"es recei!e'. %a& %b& far househol'; they work; an'

A copy of the re"istry or list of all potential CA#$ beneficiaries in the baran"ay shall be poste' in the baran"ay hall* school or other public buil'in"s in the baran"ay where it shall be open to inspection by the public at all reasonable hours.

C4A$TE# 5 8AN? ACE@ISITION

SEC. 1>. Procedure for Ac/uisition of Private Lands.+ /or purposes of ac+uisition of pri!ate lan's* the followin" proce'ures shall be followe'1 %a& After ha!in" i'entifie' the lan'* the lan'owners an' the beneficiaries* the ?A# shall sen' its notice to ac+uire the lan' to the owners thereof* by personal 'eli!ery or re"istere' ail* an' post the sa e in a conspicuous place in the unicipal buil'in" an' baran"ay hall of the place where the property is locate'. Sai' notice shall contain the offer of the ?A# to pay a correspon'in" !alue in accor'ance with the !aluation set forth in Sections 12* 13* an' other pertinent pro!isions hereof. %b& Bithin thirty %0=& 'ays fro the 'ate of receipt of written notice by personal 'eli!ery or re"istere' ail* the lan'owner* his a' inistrator or representati!e shall infor the ?A# of his acceptance or re(ection of the offer. %c& If the lan'owner accepts the offer of the ?A#* the 8-$ shall pay the lan'owner the purchase price of the lan' within thirty %0=& 'ays after he e.ecutes an' 'eli!ers a 'ee' of transfer in fa!or of the 6o!ern ent an' surren'ers the Certificate of Title an' other uni ents of title. %'& In case of re(ection or failure to reply* the ?A# shall con'uct su ary a' inistrati!e procee'in"s to 'eter ine the co pensation of the lan' by re+uirin" the lan'owner* the 8-$ an' other intereste' parties to su it e!i'ence as to the (ust co pensation for the lan'* within fifteen %1<& 'ays fro the receipt of the notice. After the e.piration of the abo!e perio'* the atter is 'ee e' sub itte' for 'ecision. The ?A# shall 'eci'e the case within thirty %0=& 'ays after it is sub itte' for 'ecision. %e& @pon receipt by the lan'owner of the correspon'in" pay ent or in case of re(ection or no response fro the lan'owner* upon the 'eposit with an accessible bank 'esi"nate' by the ?A# of the co pensation in cash or 8-$ bon's in accor'ance with this Act* the ?A# shall take i e'iate possession of the lan' an' shall re+uest the proper #e"ister of ?ee's to issue a Transfer Certificate of Title %TCT& in the na e of the #epublic of the $hilippines. The ?A# shall thereafter procee' with the re'istribution of the lan' to the +ualifie' beneficiaries. %f& Any party who 'isa"rees with the 'ecision ay brin" the atter to the court of proper (uris'iction for final 'eter ination of (ust co pensation.

C4A$TE# 5I CO:$ENSATION SEC. 12. Determination of 0ust Compensation. - In 'eter inin" (ust co pensation* the cost of ac+uisition of the lan'* the current !alue of like properties* its nature* actual use an' inco e* the sworn !aluation by the owner* the ta. 'eclarations* an' the assess ent a'e by "o!ern ent assessors* shall be consi'ere'. The social an' econo ic benefits contribute' by the far ers an' the far workers an' by "o!ern ent to the property as well as the non-pay ent of ta.es or loans secure' fro any "o!ern ent financin" institution on the sai' lan' shall be consi'ere' as a''itional factors to 'eter ine its !aluation. SEC. 13. 1aluation and ,ode of Compensation . - The 8-$ shall co pensate the lan'owner in such a ount as ay be a"ree' upon by the lan'owner an' the ?A# an' 8-$ or as ay be finally 'eter ine' by the court as (ust co pensation for the lan'.

The co pensation shall be pai' in one of the followin"

o'es at the option of the lan'owner1

%1& Cash pay ent* un'er the followin" ter s an' con'itions1 %a& &or lands a$ove fift" 2345 hectares insofar as the e-cess hectarage isconcerned - Twenty-fi!e percent %2<C& cash* the balance to be pai' in "o!ern ent financial instru ents ne"otiable at any ti e. %b& &or lands a$ove twent"+four hectares and up to fift" 2345 hectares - Thirty percent %0=C& cash* the balance to be pai' in "o!ern ent financial instru ents ne"otiable at any ti e. %c& &or lands twent"+four 2675 hectares and $elow - Thirty-fi!e percent %0<C& cash* the balance to be pai' in "o!ern ent financial instru ents ne"otiable at any ti e. %2& Shares of stock in "o!ern ent-owne' or controlle' corporations* 8-$ preferre' shares* physical assets or other +ualifie' in!est ents in accor'ance with "ui'elines set by the $A#C; %0& Ta. cre'its which can be use' a"ainst any ta. liability; %7& 8-$ bon's* which shall ha!e the followin" features1 %a& ,ar'et interest rates aligned with 91+da" treasur" $ill rates. Ten percent %1=C& of the face !alue of the bon's shall ature e!ery year fro the 'ate of issuance until the tenth %1=th& year1 Provided That shoul' the lan'owner choose to fore"o the cash portion* whether in full or in part* he shall be pai' correspon'in"ly in 8-$ bon's; %b& Transfera$ilit" and negotia$ilit". Such 8-$ bon's ay be use' by the lan'owner* his successors-ininterest or his assi"ns* up to the a ount of their face !alue for any of the followin"1 %i& Ac+uisition of lan' or other real properties of the "o!ern ent* inclu'in" assets un'er the Assets $ri!ati)ation $ro"ra an' other assets foreclose' by "o!ern ent financial institution in the sa e pro!ince or re"ion where the lan's for which the bon's were pai' are situate'; %ii& Ac+uisition of shares of stock of "o!ern ent-owne' or controlle' corporations or shares or stock owne' by the "o!ern ent in pri!ate corporations;chan robles !irtual law library %iii& Substitution for surety or bail bon's for the pro!isional release of accuse' persons* or for perfor ance bon's; %i!& Security for loans with any "o!ern ent financial institution* pro!i'e' the procee's of the loans shall be in!este' in an econo ic enterprise* preferably in a s all an' e'iu -scale in'ustry* in the sa e pro!ince or re"ion as the lan' for which the bon's are pai'; %!& $ay ent for !arious ta.es an' fees to the "o!ern ent1 Provided That the use of these bon's for these purposes will be li ite' to a certain percenta"e of the outstan'in" balance of the financial instru ent1 Provided further That the $A#C shall 'eter ine the percenta"es entione' abo!e; %!i& $ay ent for tuition fees of the i e'iate fa ily of the ori"inal bon'hol'er in "o!ern ent uni!ersities* colle"es* tra'e schools an' other institutions; %!ii& $ay ent for fees of the i e'iate fa ily of the ori"inal bon'hol'er in "o!ern ent hospitals; an' %!iii& Such other uses as the $A#C ay fro ti e to ti e allow. In case of e.traor'inary inflation* the $A#C shall take appropriate easures to protect the econo y. SEC. 19. #ncentives for 1oluntar" *ffers for )ale. - 8an'owners other than banks an' other financial institutions who !oluntarily offer their lan's for sale shall be entitle' to an a''itional fi!e percent %<C& cash pay ent. SEC. 2=. 5oluntary Land Transfer. - 8an'owners of a"ricultural lan's sub(ect to ac+uisition un'er this Act ay enter into a !oluntary arran"e ent for 'irect transfer of their lan's to +ualifie' beneficiaries sub(ect to the followin" "ui'elines1 %a& All notices for !oluntary lan' transfer ust be sub itte' to the ?A# within the first year of the i ple entation of the CA#$. Ne"otiations between the lan'owners an' +ualifie' beneficiaries co!erin" any !oluntary lan' transfer which re ain unresol!e' after one %1& year shall not be reco"ni)e' an' such lan' shall instea' be ac+uire' by the "o!ern ent an' transferre' pursuant to this Act. %b& The ter s an' con'itions of such transfer shall not be less fa!orable to the transferee than those of the "o!ern ent ,s stan'in" offer to purchase fro the lan'owner an' to resell to the beneficiaries* if such offers ha!e been a'e an' are fully known to both parties. %c& The !oluntary a"ree ent shall inclu'e sanctions for non-co pliance by either party an' shall be 'uly recor'e' an' its i ple entation onitore' by the ?A#. SEC. 21. Pa"ment of Compensation $" .eneficiaries 8nder 1oluntar" Land Transfer.+ ?irect pay ent in cash or in kin' ay be a'e by the far er-beneficiary to the lan'owner un'er ter s to be utually a"ree' upon by both parties* which shall be bin'in" upon the * upon re"istration with an' appro!al by the ?A#. Sai' appro!al shall be consi'ere' "i!en* unless notice of 'isappro!al is recei!e' by the far er-beneficiary within 0= 'ays fro the 'ate of re"istration.In the e!ent they cannot a"ree on the price of the lan'* the proce'ure for co pulsory ac+uisition as pro!i'e' in Section 1> shall apply. The 8-$ shall e.ten' financin" to the beneficiaries for purposes of ac+uirin" the lan'. C4A$TE# 5II 8AN? #E?IST#I-@TION SEC. 22. 9ualified .eneficiaries. - The lan's co!ere' by the CA#$ shall be 'istribute' as uch as possible to lan'less resi'ents of the sa e baran"ay* or in the absence thereof* lan'less resi'ents of the sa e unicipality in the followin" or'er of priority1

a"ricultural lessees %b& re"ular %c& seasonal %'& other %e& actual tillers or %f& collecti!e or cooperati!es %"& others 'irectly workin" on the lan'.

%a&

an' far far far occupants of the

share

of abo!e

tenants; workers; workers; workers; public lan's; beneficiaries; an'

Provided however That the chil'ren of lan'owners who are +ualifie' un'er Section > of this Act shall be "i!en preference in the 'istribution of the lan' of their parents; an'1 Provided further that actual tenant -tillers in the lan'hol'in" shall not be e(ecte' or re o!e' therefro . -eneficiaries un'er $resi'ential ?ecree No. 22 who ha!e culpably sol'* 'ispose' of* or aban'one' their lan' are 'is+ualifie' to beco e beneficiaries un'er their pro"ra . A basic +ualification of a beneficiary shall be his willin"ness* aptitu'e an' ability to culti!ate an' ake lan' as pro'ucti!e as possible. The ?A# shall a'opt a syste of onitorin" the recor' or perfor ance of each beneficiary* so that any beneficiary "uilty of ne"li"ence or isuse of the lan' or any support e.ten'e' to hi shall forfeit his ri"ht to continue as such beneficiary. The ?A# shall sub it perio'ic reports on the perfor ance of the beneficiaries to the $A#C. If* 'ue to lan'owner,s retention ri"hts or to the nu ber of tenants* lessees* or workers on the lan'* there is not enou"h lan' to acco o'ate any or so e of the * they ay be "rante' ownership of other lan's a!ailable for 'istribution un'er this Act* at the option of the beneficiaries. /ar ers alrea'y in place an' those not acco o'ate' in the 'istribution of pri!ately-owne' lan's will be "i!en preferential ri"hts in the 'istribution of lan's fro the public 'o ain. SEC. 20. Distri$ution Limit. + No +ualifie' beneficiary ay own ore than three %0& hectares of a"ricultural lan'.

SEC. 27. Award to .eneficiaries. + The ri"hts an' responsibilities of the beneficiary shall co ence fro the ti e the ?A# akes an awar' of the lan' to hi * which awar' shall be co plete' within one hun're' ei"hty %13=& 'ays fro the ti e the ?A# takes actual possession of the lan'. Ownership of the beneficiary shall be e!i'ence' by a Certificate of 8an' Ownership Awar'* which shall contain the restrictions an' con'itions pro!i'e' for in this Act* an' shall be recor'e' in the #e"ister of ?ee's concerne' an' annotate' on the Certificate of Title. SEC. 2<. Award Ceilings for .eneficiaries. - -eneficiaries shall be awar'e' an area not e.cee'in" three %0& hectares* which ay co!er a conti"uous tract of lan' or se!eral parcels of lan' cu ulate' up to the prescribe' awar' li its. /or purposes of this Act* a lan'less beneficiary is one who owns less than three %0& hectares of a"ricultural lan'. The beneficiaries ay opt for collecti!e ownership* such as co-workers or far ers, cooperati!e or so e other for of collecti!e or"ani)ation1 Provided That the total area that ay be awar'e' shall not e.cee' the total nu ber of co-workers or e bers of the cooperati!e or collecti!e or"ani)ation ultiplie' by the awar' li it abo!e prescribe'* e.cept in eritorious cases as 'eter ine' by the $A#C. Title to the property shall be issue' in the na e of the co-owners or the cooperati!e or collecti!e or"ani)ation as the case ay be. SEC. 2>. Pa"ment $" .eneficiaries. - 8an's awar'e' pursuant to this Act shall be pai' for by the beneficiaries to the 8-$ in thirty %0=& annual a orti)ations at si. percent %>C& interest per annu . The pay ents for the firs three %0& years after the awar' ay be at re'uce' a ounts as establishe' by the $A#C 1 Provided That the first fi!e %<& annual pay ents ay not be ore than fi!e percent %<C& of the !alue of the annual "ross pro'uction is pai' as establishe' by the ?A#. Shoul' the sche'ule' annual pay ents after the fifth year e.cee' ten percent %1=& of the annual "ross pro'uction an' the failure to pro'uce accor'in"ly is not 'ue to the beneficiary,s fault* the 8-$ ay re'uce the interest rate or re'uce the principal obli"ation to ake the pay ent affor'able. The 8-$ shall ha!e a lien by way of ort"a"e on the lan' awar'e' to beneficiary an' this ort"a"e ay be foreclose' by the 8-$ for non-pay ent of an a""re"ate of three %0& annual a orti)ations. The 8-$ shall a'!ise the ?A# of such procee'in"s an' the latter shall subse+uently awar' the forfeite' lan'hol'in" to other +ualifie' beneficiaries. A beneficiary whose lan' as pro!i'e' herein has been foreclose' shall thereafter be per anently 'is+ualifie' fro beco in" a beneficiary un'er this Act. SEC. 22. Transfera$ilit" of Awarded Lands. - 8an's ac+uire' by beneficiaries un'er this Act ay not be sol'* transferre' or con!eye' e.cept throu"h here'itary succession* or to the "o!ern ent* or to the 8-$* or to other +ualifie' beneficiaries for a perio' of ten %1=& years1 Provided however* That the chil'ren or the spouse of the transferor shall ha!e a ri"ht to repurchase the lan' fro the "o!ern ent or 8-$ within a perio' of two %2& years. ?ue notice of the a!ailability of the lan' shall be "i!en by the 8-$ to the -aran"ay A"rarian #efor Co ittee %-A#C& of the baran"ay where the lan' is situate'. The $ro!incial A"rarian Coor'inatin" Co ittee %$A#CCO:&* as herein pro!i'e'* shall* in turn* be "i!en 'ue notice thereof by the -A#C. If the lan' has not yet been fully pai' by the beneficiary* the ri"ht to the lan' ay be transferre' or con!eye'* with prior appro!al of the ?A#* to any heir of the beneficiary or to any other beneficiary who* as a con'ition for such transfer or con!eyance* shall culti!ate the lan' hi self. /ailin" co pliance herewith* the lan' shall be transferre' to the 8-$ which shall "i!e 'ue notice of the a!ailability of the lan' in the anner specifie' in the

i e'iately prece'in" para"raph. In the e!ent of such transfer to the 8-$* the latter shall co pensate the beneficiary in one lu p su a ounts the latter has alrea'y pai'* to"ether with the !alue of i pro!e ents he has a'e on the lan'.

for the

SEC. 23)tanding Crops at the Time of Ac/uisition. - The lan'owner shall retain his share of any stan'in" crops unhar!este' at the ti e the ?A# shall take possession of the lan' un'er Section 1> of this Act* an' shall be "i!en a reasonable ti e to har!est the sa e.

C4A$TE# 5III CO#$O#ATE /A#:S SEC. 29. &arms *wned or *perated $" Corporations or *ther .usiness Associations. + In the case of far s owne' or operate' by corporations or other business associations* the followin" rules shall be obser!e' by the $A#C. In "eneral* lan's shall be 'istribute' 'irectly to the in'i!i'ual worker-beneficiaries. In case it is not econo ically feasible an' soun' to 'i!i'e the lan'* then it shall be owne' collecti!ely by the worker-beneficiaries who shall for a workers, cooperati!e or association which will 'eal with the corporation or business association. @ntil a new a"ree ent is entere' into by an' between the workers, cooperati!e or association an' the corporation or business association* any a"ree ent e.istin" at the ti e this Act takes effect between the for er an' the pre!ious lan'owner shall be respecte' by both the workers, cooperati!e or association an' the corporation or business association. SEC. 0=. :omelots and &armlots for ,em$ers of Cooperatives. - The in'i!i'ual e bers of the cooperati!es or corporations entione' in the prece'in" section shall be pro!i'e' with ho elots an' s all far lots for their fa ily use* to be taken fro the lan' owne' by the cooperati!e or corporation. SEC. 01. Corporate Landowners. - Corporate lan'owners ay !oluntarily transfer ownership o!er their a"ricultural lan'hol'in"s to the #epublic of the $hilippines pursuant to Section 2= hereof or to +ualifie' beneficiaries* un'er such ter s an' con'itions consistent with this Act* as they ay a"ree upon* sub(ect to confir ation by the ?A#. @pon certification by the ?A#* corporations ownin" a"ricultural lan's ay "i!e their +ualifie' beneficiaries the ri"ht to purchase such proportion of the capital stock of the corporation that the a"ricultural lan'* actually 'e!ote' to a"ricultural acti!ities* bears in relation to the co pany,s total assets* un'er such ter s an' con'itions as ay be a"ree' upon by the . In no case shall the co pensation recei!e' by the workers at the ti e the shares of stocks are 'istribute' be re'uce'. The sa e principle shall be applie' to associations* with respect to their e+uity or participation. Corporations or associations which !oluntarily 'i!est a proportion of their capital stock* e+uity or participation in fa!or of their workers or other +ualifie' beneficiaries un'er this section shall be 'ee e' to ha!e co plie' with the pro!isions of this Act1 Provided That the followin" con'ition are co plie' with1 %a& In or'er to safe"uar' the ri"ht of beneficiaries who own shares of stocks to 'i!i'en's an' other financial benefits* the books of the corporation or association shall be sub(ect to perio'ic au'it by certifie' public accountants chosen by the beneficiaries; %b& Irrespecti!e of the !alue of their e+uity in the corporation or association* the beneficiaries shall be assure' of at least one %1& representati!e in the boar' of 'irectors* or in a ana"e ent or e.ecuti!e co ittee* if one e.ists* of the corporation or association; %c& Any shares ac+uire' by such workers an' beneficiaries shall ha!e the sa e ri"hts an' features as all other shares; an' %'& Any transfer of shares of stocks by the ori"inal beneficiaries shall be !oi' a$ initio unless sai' transaction is in fa!or of a +ualifie' an' re"istere' beneficiary within the sa e corporation. If within two %2& years fro the appro!al of this Act* the lan' or stock transfer en!isione' abo!e is not a'e or reali)e' or the plan for such stock 'istribution appro!e' by the $A#C within the sa e perio'* the a"ricultural lan' of the corporate owners or corporation shall be sub(ect to the co pulsory co!era"e of this Act. SEC. 02. Production+)haring. - $en'in" final lan' transfer* in'i!i'uals or entities ownin"* or operatin" un'er lease or ana"e ent contract* a"ricultural lan's are hereby an'ate' to e.ecute a pro'uction-sharin" plan with their far workers or far workers, or"ani)ation* if any* whereby three percent %0C& of the "ross sales fro the pro'uction of such lan's are 'istribute' within si.ty %>=& 'ays at the en' of the fiscal year as co pensation to re"ular an' other far workers in such lan's o!er an' abo!e the co pensation they currently recei!e1 Provided* That these in'i!i'uals or entities reali)e "ross sales in e.cess of fi!e illion pesos per annu unless the ?A#* upon proper application* 'eter ines a lower ceilin".chan robles !irtual law library In the e!ent that the in'i!i'ual or entity reali)es a profit* an a''itional ten percent %1=C& of the net profit after ta. shall be 'istribute' to sai' re"ular an' other far workers within ninety 'ays at the en' of the fiscal year. To forestall any 'isruption in the nor al operation of lan's to be turne' o!er to the far worker-beneficiaries entione' abo!e* a transitory perio'* the len"th of which shall be 'eter ine' by the ?A#* will be establishe'.

?urin" this transitory perio'* at least one percent %1C& of the "ross sales of the entity shall be 'istribute' to the ana"erial* super!isory an' technical "roup in place at the ti e of the effecti!ity of this Act* as co pensation for such transitory ana"erial an' technical function it will perfor * pursuant to an a"ree ent that the far workerbeneficiaries an' the ana"erial* super!isory an' technical "roup ay conclu'e* sub(ect to the appro!al of the ?A#. SEC. 00. Pa"ment of )hares of Cooperative or Association . - Shares of a cooperati!e or association ac+uire' by far ers-beneficiaries or workers-beneficiaries shall be fully pai' for in an a ount correspon'in" to the !aluation as 'eter ine' in the i e'iately succee'in" section. The lan'owner an' the 8-$ shall assist the far erbeneficiaries an' worker-beneficiaries in the pay ent for sai' shares by pro!i'in" cre'it financin". SEC. 07. 5aluation of Lands. - A !aluation sche e for the lan' shall be for ulate' by the $A#C* takin" into account the factors enu erate' in Section 12* in a''ition to the nee' to sti ulate the "rowth of cooperati!es an' the ob(ecti!e of fosterin" responsible participation of the workers-beneficiaries in the creation of wealth. In the 'eter ination of a price that is (ust not only to the in'i!i'ual but to society as will* the $A#C shall consult closely with the lan'owner an' the workers-beneficiaries. In case of 'isa"ree ent* the price 'eter ine' by the $A#C* if accepte' by the workers-beneficiaries* shall be followe'* without pre(u'ice to the lan'owner,s ri"ht to petition the Special A"rarian Court to resol!e the issue of !aluation.

C4A$TE# IA S@$$O#T SE#5ICES SEC. 0<. Creation of )upport )ervices *ffice . - There is hereby create' the Office of Support Ser!ices un'er the ?A# to be hea'e' by an @n'ersecretary. The office shall pro!i'e "eneral support an' coor'inati!e ser!ices in the i ple entation of the pro"ra * particularly in carryin" out the pro!isions of the followin" ser!ices to far er beneficiaries an' affecte' lan'owners1 %1& Irri"ation facilities* especially secon' crop or 'ry season irri"ation facilities; %2& Infrastructure 'e!elop ent an' public works pro(ects in areas an' settle ent that co e un'er a"rarian refor * an' for this purpose* the preparation of the physical 'e!elop ent plan of such settle ents pro!i'in" suitable baran"ay sites* potable water an' power resources* irri"ation syste s* see's an' see'lin" banks* post har!est facilities* an' other facilities for a soun' a"ricultural 'e!elop ent plan. /or the purpose of pro!i'in" the aforecite' infrastructure an' facilities* the ?A# is authori)e' to enter into contracts with intereste' pri!ate parties on lon" ter basis or throu"h (oint !enture a"ree ents or buil'-operate-transfer sche e1 %0& 6o!ern ent subsi'ies for the use of irri"ation facilities %7& $rice support an' "uarantee for all a"ricultural pro'uce; %<& E.ten'in" to s all lan'owners* far ers an' far ers, or"ani)ations the necessary cre'it* like concessional an' collateral-free loans* for a"ro-in'ustriali)ation base' on social collaterals like the "uarantees of far ers, or"ani)ations; %>& $ro otin"* 'e!elopin" an' e.ten'in" financial assistance to s all an' e'iu -scale in'ustries in a"rarian refor areas; %2& Assi"nin" sufficient nu bers of a"ricultural e.tension workers to far ers, or"ani)ation; %3& @n'ertake research* 'e!elop ent an' 'isse ination of infor ation on a"rarian refor * plants an' crops best suite' for culti!ation an' arketin"* an' low cost an' ecolo"ically soun' far inputs an' technolo"ies to ini i)e reliance on e.pensi!e an' i porte' a"ricultural inputs; %9& ?e!elop ent of cooperati!e ana"e ent skills throu"h intensi!e trainin";chan robles !irtual law library %9& Assistance in the i'entification of rea'y arkets for a"ricultural pro'uce an' trainin" in the other !arious aspects of arketin"; %1=& Con'uct an' effecti!e infor ation 'isse ination syste throu"h the ?epart ent of A"riculture to pro ote arketin" an' ini i)e spoila"e of a"ricultural pro'uce an' pro'ucts; %11& Create a cre'it "uarantee fun' for a"ricultural lan'owners that will enhance the collateral !alue of a"ricultural lan's that are affecte' or will be affecte' by co!era"e un'er the a"rarian refor pro"ra ; an' %12& A' inistration* operation* ana"e ent an' fun'in" of support ser!ices pro"ra s an' pro(ects inclu'in" pilot pro(ects an' o'els relate' to a"rarian refor as 'e!elope' by the ?A#. %As a en'e' by #. A. 29=<& SEC. 0>. &unding for )upport )ervices. - In or'er to co!er the e.penses an' cost of support* at least twenty-fi!e percent %2<C& of all appropriations for a"rarian refor shall i e'iately be set asi'e an' a'e a!ailable for this purpose1 Provided That for the ne.t fi!e %<& years* a ini u of one %1& A"rarian #efor Co unity %A#C& shall be establishe' by the ?A#* in coor'ination with the local "o!ern ent units* non-"o!ern ental or"ani)ations an' people,s or"ani)ations in each le"islati!e 'istrict with a pre'o inant a"ricultural population1 Provided further* That the areas in which the A#Cs are to be establishe' shall ha!e been fully sub(ecte' un'er this law.

/or this purpose* an A"rarian #efor Co unity shall be 'efine' as a baran"ay or a cluster of baran"ays pri arily co pose' an' ana"e' by A"rarian #efor -eneficiaries who shall be willin" to be or"ani)e' an' un'ertake the inte"rate' 'e!elop ent of an area an'For their or"ani)ationsFcooperati!es. In each co unity* the ?A#* to"ether with the a"encies an' or"ani)ations abo!e entione'* shall i'entify the far ers, association* cooperati!e or their respecti!e fe'erations appro!e' by the far ers-beneficiaries that shall take the lea' in the a"ricultural 'e!elop ent of the area. In a''ition* the ?A# shall be authori)e' to packa"e proposals an' recei!e "rants* ai's an' other for s of financial assistance fro any source. %As a en'e' by #. A. 29=<& SEC. 02. )upport )ervices to the .eneficiaries . - The $A#C shall ensure that support ser!ices to far erbeneficiaries are pro!i'e'* such as1 %a& 8an' sur!eys an' titlin"; %b& 8iberali)e' ter s of cre'it facilities an' pro'uction loans; %c& E.tension ser!ices by way of plantin"* croppin"* pro'uction an' post-har!est technolo"y transfer as well as arketin" an' ana"e ent assistance an' support to cooperati!es an' far er or"ani)ation; %'& Infrastructure such as access trails* ini-'a s* public utilities* arketin" an' stora"e facilities; an' %e& #esearch* pro'uction an' use of or"anic fertili)ers an' other local substances necessary to far in" an' culti!ation. The $A#C shall for ulate policies to ensure that support ser!ices to far er-beneficiaries shall be pro!i'e' at all sta"es of lan' refor . The .agong ;ilusang ;a$uha"an sa ;aunlaran %-GGG& Secretariat shall be transferre' an' attache' to the 8-$* for its super!ision* inclu'in" all its applicable an' e.istin" fun's* personnel* properties* e+uip ent an' recor's. :isuse or 'i!ersion of the financial an' support ser!ices herein pro!i'e' shall result in sanction a"ainst the beneficiary "uilty thereof* inclu'in" the forfeiture of the lan' transferre' to hi or lesser sanctions as ay be pro!i'e' by the $A#C* without pre(u'ice to cri inal prosecution. SEC. 03. )upport )ervices to Landowners. - The $A#C* with the assistance of such other "o!ern ent a"encies an' instru entalities as it ay 'irect* shall pro!i'e lan'owners affecte' by the CA#$ an' proper a"rarian refor pro"ra s with the followin" ser!ices1 %a& In!est ent infor ation* financial an' counselin" assistance; %b& /acilities* pro"ra s an' sche es for the con!ersion or e.chan"e of bon's issue' for pay ent of the lan's ac+uire' with stocks an' bon's issue' by the National 6o!ern ent* the central bank an' other "o!ern ent institutions an' instru entalities; %c& :arketin" of 8-$ bon's* as well as pro otin" the tra'itional financial arkets an' stock e.chan"es; arketability of sai' bon's in tra'itional an' non-

%'& Other ser!ices 'esi"ne' to utili)e pro'ucti!ely the procee's of the sale of such lan's for rural in'ustriali)ation. A lan'owner who in!ests in rural-base' in'ustries shall be entitle' to the incenti!es "rante' to a re"istere' enterprise en"a"e' in a pioneer or preferre' area of in!est ent as pro!i'e' for in the O nibus In!est ent Co'e of 1932* or to such other incenti!es as the $A#C* the 8-$* or other "o!ern ent financial institutions ay pro!i'e. The 8-$ shall re'ee a lan'owner,s 8-$ bon's at face !alue1 Provided that the procee's thereof shall be in!este' in a -OI- re"istere' co pany or in any a"ri-business or a"ro-in'ustrial enterprise in the re"ion where the lan'owner has pre!iously a'e in!est ents* to the e.tent of thirty percent %0=C& of the face !alue of sai' 8-$ bon's* sub(ect to "ui'elines that shall be issue' by the 8-$. SEC. 09. Land Consolidation. - the ?A# shall carry out lan' consoli'ation pro(ects to pro ote e+ual 'istribution of lan'hol'in"s* to pro!i'e the nee'e' infrastructure in a"riculture* an' to conser!e soil fertility an' pre!ent erosion.

C4A$TE# A S$ECIA8 A#EAS O/ CONCE#N SEC. 7=. )pecial Areas of Concern. - As an inte"ral part of the Co prehensi!e A"rarian #efor followin" principles in these special areas of concern shall be obser!e'1 $ro"ra * the

%1& )u$sistence &ishing. - S all fisher folk* inclu'in" seawee' far ers* shall be assure' of "reater access to the utili)ation of water resources; %2& Logging and ,ining concessions. - Sub(ect to the re+uire ent of a balance' ecolo"y an' conser!ation of water resources* suitable areas* as 'eter ine' by the ?epart ent of En!iron ent an' Natural #esources %?EN#&* in lo""in"* inin" an' pasture areas* ust be opene' up for a"rarian settle ents

whose beneficiaries will be re+uire' to un'ertake reforestation an' conser!ation of pro'ucts etho's. Sub(ect to e.istin" laws* rules an' re"ulation* settlers an' e bers of tribal co unities ust be allowe' to en(oy an' e.ploit the pro'ucts of the forests other than ti ber within the lo""in" concessions. %0& )parsel" *ccupied Pu$lic Agricultural lands. - Sparsely occupie' a"ricultural lan's of the public 'o ain will be sur!eye'* proclai e' an' 'e!elope' as far settle ents for +ualifie' lan'less people base' on an or"ani)e' pro"ra to ensure their or'erly an' early 'e!elop ent A"ricultural lan' allocations will be a'e for i'eal fa ily-si)e' far s as 'eter ine' by the $A#C. $ioneers an' other settlers will be treate' e+ually in e!ery respect. Sub(ect to the prior ri"hts of +ualifie' beneficiaries* unculti!ate' lan's of the public 'o ain shall be a'e a!ailable on a lease basis to intereste' an' +ualifie' parties. $arties who will en"a"e in the 'e!elop ent of capital-intensi!e* tra'itional or pioneerin" crops will be "i!en priority. The lease perio'* which shall not be ore than a total of fifty %<=& years* shall be proportionate to the a ount of in!est ent an' pro'uction "oals of the lessee. A syste of e!aluation an' au'it will be institute'. %7& #dle a$andoned foreclosed and se/uestered lands. - I'le* aban'one'* foreclose' an' se+uestere' lan's shall be planne' for 'istribution as ho elots an' fa ily-si)e' far lots to actual occupants. If lan' area per its* other lan'less fa ilies will be acco o'ate' in these lan's. %<& Rural <omen. - All +ualifie' wo en e bers of the a"ricultural labor force ust be "uarantee' an' assure' e+ual ri"hts to ownership of the lan'* e+ual shares of the far ,s pro'uce* an' representation in a'!isory or appropriate 'ecision- akin" bo'ies.chan robles !irtual law library %>& 1eterans and Retirees. - In accor'ance with Section 2 of Article A5I of the Constitution* lan'less war !eterans an' !eterans of ilitary ca pai"ns* their sur!i!in" spouse an' orphans* retirees of the Ar e' /orces of the $hilippines %A/$& an' the Inte"rate' National $olice %IN$&* returnees* surren'erees* an' si ilar beneficiaries shall be "i!en 'ue consi'eration in the 'isposition of a"ricultural lan's of the public 'o ain. %2& Agriculture =raduates. - 6ra'uates of a"ricultural schools who are lan'less shall be assiste' by the "o!ern ent* throu"h the ?A#* in their 'esire to own an' till a"ricultural lan's.

C4A$TE# AI $#O6#A: I:$8E:ENTATION SEC. 71. The Presidential Agrarian Reform Council. - The $resi'ential A"rarian #efor Council %$A#C& shall be co pose' of the $resi'ent of the $hilippines as Chair an* the Secretary of A"rarian #efor as 5ice-Chair an an' the followin" as e bers1 Secretaries of the ?epart ents of A"riculture; En!iron ent an' Natural #esources; -u'"et an' :ana"e ent ; 8ocal 6o!ern ent; $ublic Borks an' 4i"hways; Tra'e an' In'ustry; /inance; 8abor an' E ploy ent; ?irector-6eneral of the National Econo ic an' ?e!elop ent Authority; $resi'ent* 8an' -ank of the $hilippines; A' inistrator* National Irri"ation A' inistration; an' three %0& representati!es of affecte' lan'owners to represent 8u)on* 5isayas an' :in'anao1 Provided that one of the shall be fro the cultural co unities. SEC. 72. !-ecutive Committee. - There shall be an E.ecuti!e Co ittee %EACO:& of the $A#C co pose' of the Secretary of the ?A# as Chair an* an' such other e bers as the presi'ent ay 'esi"nate* takin" into account Article AIII* Section < of the Constitution. @nless otherwise 'irecte' by the $A#C* the EACO: ay eet an' 'eci'e on any an' all atters in between eetin"s of the $A#C1 Provided however That its 'ecisions ust be reporte' to the $A#C i e'iately an' not later than the ne.t eetin". SEC. 70. )ecretariat. - A $A#C Secretariat is hereby establishe' to pro!i'e "eneral support an' coor'inati!e ser!ices such as inter-a"ency linka"es; pro"ra an' pro(ect appraisal an' e!aluation an' "eneral operations onitorin" for the $A#C. The Secretariat shall be hea'e' by the Secretary of A"rarian #efor who shall be assiste' by an @n'ersecretary an' supporte' by a staff whose co position shall be 'eter ine' by the $A#C E.ecuti!e Co ittee an' whose co pensation shall be char"eable a"ainst the A"rarian #efor /un'. All officers an' e ployees of the Secretariat shall be appointe' by the Secretary of A"rarian #efor . SEC. 77. Provincial Agrarian Reform Coordinating Committee 2PARCC*,5 . - A $ro!incial A"rarian #efor Coor'inatin" Co ittee is hereby create' in each pro!ince* co pose' of a Chair an* who shall be appointe' by the $resi'ent upon the reco en'ation of the EACO:* the $ro!incial A"rarian #efor Officer as E.ecuti!e Officer* an' one %1& representati!e each fro the ?epart ent of A"riculture* ?epart ent of En!iron ent an' Natural #esources an' fro the 8-$; one %1& representati!e each fro e.istin" far ers, or"ani)ations* a"ricultural cooperati!es an' non-"o!ern ental or"ani)ations in the pro!ince; two %2& representati!es fro lan'owners at least one %1& of who shall be a pro'ucer representin" the principal crop of the pro!ince; an' two %2& representati!es fro far ers an' far workers or beneficiaries* at least one %1& of who shall be a far er or far worker representin" the principal crop of the pro!ince* as e bers1 Provided* That in areas where there are cultural co unities* the latter shall likewise ha!e one %1& representati!e. The $A#CCO: shall coor'inate an' onitor the i ple entation of the CA#$ in the pro!ince. It shall pro!i'e infor ation on the pro!isions of the CA#$* "ui'elines issue' by the $A#C an' on the pro"ress of the CA#$ in the pro!ince. In a''ition* it shall1 %a& #eco en' to the $A#C the followin" 1

%1& :arket price to be use' in the 'eter ination of the profit-sharin" obli"ation of a"ricultural entities in the pro!ince; %2& A'option of the 'irect pay ent sche e between the lan'owner an' the far er an'For far workerbeneficiary1 Provided* that the a ount an' ter s of pay ent are not ore bur'enso e to the a"rarian refor beneficiary than un'er the co pulsory co!era"e pro!ision of the CA#81 Provided* further That the a"rarian refor beneficiary a"rees to the a ount an' the ter s of pay ent 1 Provided furthermore That the ?A# shall act as e'iator in cases of 'isa"ree ent between the lan'owner an' the far er an'For far worker-beneficiary1 Provided finall" That the far er an'For far er-beneficiary shall be eli"ible to borrow fro the 8-$ an a ount e+ual to ei"hty-fi!e percent %3<C& of the sellin" price of the lan' that they ha!e ac+uire'; %0& Continuous processin" of applications for lease-back arran"e ents* (oint !enture a"ree ents an' other sche es that will opti i)e the operatin" si)e for a"riculture pro'uction an' also pro ote both security of tenure an' security of inco e to far er beneficiaries1 Provided That lease-back arran"e ents shoul' be the last resort. %As a en'e' by #. A. 29=<& SEC. 7< Province+$"+Province #mplementation. - The $A#C shall pro!i'e the "ui'elines for the pro!ince-bypro!ince i ple entation of the CA#$* takin" into account peculiarities an' nee's of each place* kin' of crops nee'e' or suite'* lan' 'istribution workloa'* beneficiaries, 'e!elop ent acti!ities an' other factors pre!alent or obtainin" in the area. In all cases* the i ple entin" a"encies at the pro!incial le!el shall pro ote the 'e!elop ent of i'entifie' A#Cs without ne"lectin" the nee's an' proble s of other beneficiaries. The ten-year pro"ra of 'istribution of public an' pri!ate lan' in each pro!ince shall be a'(uste' fro year to year by the pro!ince,s $A#CCO: in accor'ance with the le!el of operations pre!iously establishe' by the $A#C* in e!ery case ensurin" that support ser!ices are a!ailable or ha!e been pro"ra e' before actual 'istribution is effecte'. %As a en'e' by #. A. 29=<& SEC. 7> .aranga" Agrarian Reform Committee %-A#C&. - @nless otherwise pro!i'e' in this Act* the pro!isions of E.ecuti!e Or'er No. 229 re"ar'in" the or"ani)ation of the -aran"ay A"rarian #efor Co ittee %-A#C& shall be in effect. SEC. 72. &unctions of the -A#C. - In a''ition to those pro!i'e' in E.ecuti!e Or'er No. 229* the -A#C shall ha!e the followin" function1 %a& :e'iate an' conciliate between parties in!ol!e' in an a"rarian 'ispute inclu'in" atters relate' to tenurial an' financial arran"e ents; %b& Assist in the i'entification of +ualifie' beneficiaries an' lan'owners within the baran"ay; %c& Attest to the accuracy of the initial parcellary appin" of the beneficiary,s tilla"e; %'& Assist +ualifie' beneficiaries in obtainin" cre'it fro len'in" institutions; %e& Assist in the initial 'eter ination of the !alue of the lan'; %f& Assist the ?A# representati!e in the preparation of perio'ic reports on the CA#$ i ple entation for sub ission to the ?A#; %"& Coor'inate the 'eli!ery of support ser!ices to beneficiaries; an' %h& $erfor such other functions as ay be assi"ne' by the ?A# %2& The -A#C shall en'ea!or to e'iate* conciliate an' settle a"rarian 'isputes lo'"e' before it within thirty %0=& 'ays fro its takin" co"ni)ance thereof. If after the lapse of the thirty 'ay perio'* it is unable to settle the 'ispute* it shall issue a certification of its procee'in"s an' shall furnish a copy thereof upon the parties within se!en %2& 'ays fro the e.piration of the thirty 'ays perio'. SEC. 73. Legal Assistance. - The -A#C or any e ber thereof ay* whene!er necessary in the e.ercise of any of its functions hereun'er* seek the le"al assistance of the ?A# an' the pro!incial* city* or unicipal "o!ern ent. SEC. 79. Rules and Regulations. - The $A#C an' the ?A# shall ha!e the power to issue rules an' re"ulations* whether substanti!e or proce'ural* to carry out the ob(ects an' purposes of this Act. Sai' rules shall take effect ten %1=& 'ays after publication in two %2& national newspapers of "eneral circulation.

C4A$TE# AII A?:INIST#ATI5E A?D@?ICATION SEC. <=. 9uasi+0udicial Powers of the ?A#. - The ?A# is hereby !este' with pri ary (uris'iction to 'eter ine an' a'(u'icate a"rarian refor atters an' shall ha!e e.clusi!e ori"inal (uris'iction o!er all atters in!ol!in" the i ple entation of a"rarian refor * e.cept those fallin" un'er the e.clusi!e (uris'iction of the ?epart ent of A"ricultural %?A& an' the ?epart ent of En!iron ent an' Natural #esources %?EN#&. It shall not be boun' by technical rules of proce'ure an' e!i'ence but shall procee' to hear an' 'eci'e all cases* 'isputes or contro!ersies in a ost e.pe'itious anner* e ployin" all reasonable eans to ascertain the facts of e!ery case in accor'ance with e+uity an' the erits of the case. Towar' this en'* it shall a'opt a unifor rule of proce'ure to achie!e a (ust* e.pe'itious an' ine.pensi!e 'eter ination of e!ery action or procee'in" before it. It shall ha!e the power to su on witnesses* a' inister oaths* take testi ony* re+uire sub ission of reports* co pel the pro'uction of books an' 'ocu ents an' answers to interro"atories an' issue subpoena* an' su$poena duces tecum an' to enforce its writs throu"h sheriffs or other 'uly 'eputi)e' officers. It shall likewise ha!e the power to punish 'irect an' in'irect conte pt in the sa e anner an' sub(ect to the sa e penalties as pro!i'e' in the #ules of Court

#epresentati!es of far er lea'ers shall be allowe' to represent the sel!es* their fellow far ers or their or"ani)ations in any procee'in"s before the ?A#1 Provided however that when there are two or ore representati!es for any in'i!i'ual or "roup* the representati!es shoul' choose only one a on" the sel!es to represent such party or "roup before any ?A# procee'in"s.chan robles !irtual law library Notwithstan'in" an appeal to the Court of Appeals* the 'ecision of the ?A# shall be i e'iately e.ecutory.

SEC. <1. &inalit" of Determination. - Any case or contro!ersy before it shall be 'eci'e' within thirty %0=& 'ays after it is sub itte' for resolution. Only one %1& otion for consi'eration shall be allowe'. Any or'er* rulin" or 'ecision shall be final after the lapse of fifteen %1<& 'ays fro receipt of a copy thereof. SEC. <2. &rivolous Appeals. - To 'iscoura"e fri!olous or 'ilatory appeals fro the 'ecisions or or'ers on the local or pro!incial le!els* the ?A# ay i pose reasonable penalties* inclu'in" but not li ite' to* fines or censures upon errin" parties. SEC. <0. Certification of -A#C. - The ?A# shall not take co"ni)ance of any a"rarian 'ispute or contro!ersy unless a certification fro the -A#C that the 'ispute has been sub itte' to it for e'iation an' conciliation without any success of settle ent is presente'1 Provided however that if no certification is issue' by the -A#C within thirty %0=& 'ays after a atter or issue is sub itte' to it for e'iation or conciliation* the case or 'ispute ay be brou"ht before the $A#C.

C4A$TE# AIII D@?ICIA8 #E5IEB SEC. <7. Certiorari. + Any 'ecision* or'er* awar' or rulin" of the ?A# on any a"rarian 'ispute or on any atter pertainin" to the application* i ple entation* enforce ent* or interpretation of this Act an' other pertinent laws on a"rarian refor ay be brou"ht to the Court of Appeals by certiorari e.cept as otherwise pro!i'e' in this Act within fifteen %1<& 'ays fro receipt of a copy thereof. The fin'in"s of fact of the ?A# shall be final an' conclusi!e if base' on substantial e!i'ence. SEC<<. >o Restraining *rder or Preliminar" #n%unction .- No court in the $hilippines shall ha!e (uris'iction to issue any restrainin" or'er or writ of preli inary in(unction a"ainst $A#C or any of its 'uly authori)e' or 'esi"nate' a"encies in any case* 'ispute or contro!ersy arisin" fro * necessary to* or in connection with the application* i ple entation* enforce ent* or interpretation of this Act an' other pertinent laws on a"rarian refor . SEC. <>. )pecial Agrarian Court. + The supre e Court shall 'esi"nate at least one %1& branch of the #e"ional Trial Court %#TC& within each pro!ince to act as a Special A"rarian Court. The Supre e Court ay 'esi"nate ore branches to constitution such a''itional Special A"rarian Courts as ay be necessary to cope with the nu ber of a"rarian cases in each pro!ince. In the 'esi"nation* the Supre e Court shall "i!e preference to the #e"ional Trial Courts which ha!e been assi"ne' to han'le a"rarian cases or whose presi'in" (u'"es were for er (u'"es of the 'efunct Court of A"rarian #elations. The #e"ional Trial Court %#TC& (u'"es assi"ne' to sai' courts shall e.ercise sai' special (uris'iction in a''ition to the re"ular (uris'iction of their respecti!e courts. The Special A"rarian Courts shall ha!e the power an' prero"ati!es inherent in or belon"in" to the #e"ional Trial Courts. SEC. <2. )pecial 0urisdiction - The Special A"rarian Courts shall ha!e ori"inal an' e.clusi!e (uris'iction o!er all petitions for the 'eter ination of (ust co pensation to lan'owners* an' the prosecution of all cri inal offenses un'er this Act. The #ules of Court shall apply to all procee'in"s before the Special A"rarian Courts unless o'ifie' by this Act. The Special A"rarian Courts shall 'eci'e all appropriate cases un'er their special (uris'iction within thirty %0=& 'ays fro sub ission of the case for 'ecision. SEC. <3. Appointment of Commissioners. + The Special A"rarian Courts* upon their own initiati!e or at the instance of any of the parties* ay appoint one or ore co issioners to e.a ine* in!esti"ate an' ascertain facts rele!ant to the 'ispute* inclu'in" the !aluation of properties* an' to file a written report thereof with the court. SEC. <9. *rders of the )pecial Agrarian Courts. - No or'er of the Special A"rarian Courts on any issue* +uestion* atter or inci'ent raise' before the shall be ele!ate' to the appellate courts until the hearin" shall ha!e been ter inate' an' the case 'eci'e' on the erits. SEC. >=. Appeals.- An appeal ay be taken fro the 'ecision of the Special A"rarian Courts by filin" a petition for re!iew with the Court of Appeals fifteen %1<& 'ays fro receipt of notice of the 'ecision; otherwise* the 'ecision shall beco e final.

An appeal fro the 'ecision of the Court of Appeals* or fro any or'er* rulin" or 'ecision of ?A#* as the case ay be* shall be by a petition for re!iew with the Supre e Court within a non-e.ten'ible perio' of fifteen %1<& 'ays fro receipt of a copy of sai' 'ecision. SEC. >1. Procedure on Review. + #e!iew by the Court of Appeals or the Supre e Court* as the case ay be* shall be "o!erne' by the #ules of Court. The Court of Appeals* howe!er* ay re+uire the parties to file si ultaneous e oran'a within a perio' of fifteen %1<& 'ays fro notice* after which the case is 'ee e' sub itte' for 'ecision. SEC. >2. Preferential Attention in Courts. + All courts in the $hilippines* both trial an' appellate* are hereby en(oine' to "i!e preferential attention to all cases arisin" fro or in connection with the i ple entation of the pro!isions of this Act. All cases pen'in" in court arisin" fro or in connection with the i ple entation of this Act shall continue to be hear'* trie' an' 'eci'e' into their finality* notwithstan'in" the e.piration of the ten-year perio' entione' in Section < hereof.

C4A$TE# AI5 /INANCIN6 SEC. >0. &unding )ource.+ The initial a ount nee'e' to i ple ent this Act for the perio' of ten %1=& years upon appro!al hereof shall be fun'e' fro the A"rarian #efor /un' create' un'er Sections 2= an' 21 of E.ecuti!e Or'er No. 229.A''itional a ounts are hereby authori)e' to be appropriate' as an' when nee'e' to au" ent the A"rarian #efor /un' in or'er to fully i ple ent the pro!isions of this Act. Sources of fun'in" or appropriations shall inclu'e the followin"1 %a& $rocee's of the sales of the Assets $ri!ati)ation Trust; %b& All receipts fro assets reco!ere' an' fro ission on 6oo' 6o!ern ent; sale of ill-"otten wealth reco!ere' throu"h the $resi'ential

Co

%c& $rocee's of the 'isposition of the properties of the 6o!ern ent in forei"n countries; %'& $ortion of a ounts accruin" to the $hilippines fro all sources or official forei"n ai' "rants an' concessional financin" fro all countries* to be use' for the specific purposes of financin" pro'uction cre'its* infrastructures* an' other support ser!ices re+uire' by this Act; %e& Other "o!ern ent fun's not otherwise appropriate'.chan robles !irtual law library All fun's appropriate' to i ple ent the pro!isions of this Act shall be consi'ere' continuin" appropriations 'urin" the perio' of its i ple entation. SEC. >7. &inancial #ntermediar" for the CA#$. - The 8an' -ank of the $hilippines shall be the financial inter e'iary for the CA#$* an' shall insure that the social (ustice ob(ecti!es of the CA#$ shall en(oy a preference a on" its priorities.

C4A$TE# A5 6ENE#A8 $#O5ISIONS SEC. ><. Conversion of Lands+ After the lapse of fi!e %<& years fro its awar'* when the lan' ceases to be econo ically feasible an' soun' for a"ricultural purposes* or the locality has beco e urbani)e' an' the lan' will ha!e "reater econo ic !alue for resi'ential* co ercial or in'ustrial purposes* the ?A#* upon application of the beneficiary or the lan'owner* with 'ue notice to the affecte' parties* an' sub(ect to e.istin" laws* ay authori)e the reclassification or con!ersion of the lan' an' its 'isposition1 Provided That the beneficiary shall ha!e fully pai' his obli"ation. SEC. ><-A Conversion into &ishpond and Prawn &arms. + No con!ersion of public a"ricultural lan's into fishpon's an' prawn far s shall be a'e e.cept in situations where the pro!incial "o!ern ent with the concurrence of the -ureau of /isheries an' A+uatic #esources %-/A#& 'eclares a coastal )one as suitable for fishpon' 'e!elop ent. In such case* the ?epart ent of En!iron ent an' Natural #esources %?EN#& shall allow the lease an' 'e!elop ent of such areas1 Provided That the 'eclaration shall not apply to en!iron entally critical pro(ects an' areas as containe' in Title %A& sub-para"raph two* %--<& an' %C& an' Title %-&* nu ber ele!en %11& of $rocla ation No. 217>* entitle' (Proclaiming Certain Areas and T"pes of Pro%ects as !nvironmentall" Critical and <ithin the the )cope of the !nvironmental #mpact )tatement 2!#)5 )"stem !sta$lished under Presidential Decree >o. 138?( to ensure the protection of ri!er syste s* a+uifers an' an"ro!e !e"etations fro pollution an' en!iron ental 'e"ra'ation1 Provided further That the appro!al shall be in accor'ance with a set of "ui'elines to

be 'rawn up an' pro ul"ate' by the ?A# an' the -/A#1 Provided furthermore That s all-far er cooperati!es an' or"ani)ations shall be "i!en preference in the awar' of the /ishpon' 8ease A"ree ents %/8As&. No con!ersion of ore than fi!e %<& hectares of pri!ate lan's to fishpon's an' prawn far s shall be allowe' after the passa"e of this Act* e.cept when the use of the lan' is ore econo ically feasible an' soun' for fishpon' an'For prawn far * as certifie' by the -ureau of /isheries an' A+uatic #esources %-/A#& * an' a si ple an' absolute a(ority of the re"ular far workers or tenants a"ree to the con!ersion. The ?epart ent of A"rarian #efor ay appro!e applications for chan"e in the use of the lan'1 Provided finall" That no piece eal con!ersion to circu !ent the pro!isions of this Act shall be allowe'. In these cases where the chan"e of use is appro!e'* the pro!isions of Section 02-A hereof on incenti!es shall apply. %As a''e' by #. A. 2331& SEC. ><--. #nventor". - Bithin one %1& year fro the effecti!ity of this Act* the -/A# shall un'ertake an' finish an in!entory of all "o!ern ent an' pri!ate fishpon's an' prawn far s an' un'ertake a pro"ra to pro ote the sustainable ana"e ent an' utili)ation of prawn far s an' fishpon's. No lease un'er Section ><-A hereof ay be "rante' until after the co pletion of the sai' in!entory. The sustainable ana"e ent an' utili)ation of prawn far s an' fishpon's shall be in accor'ance with the efflue stan'ar's* pollution char"es an' other pollution control easures such as* but not li ite' to* the +uantity of fertili)ers* pestici'es an' other che icals use' that ay be establishe' by the /ertili)er an' $estici'e Authority %/$A&* the En!iron ent :ana"e ent -ureau %E:-&* an' other appropriate "o!ern ent re"ulatory bo'ies* an' e.istin" re"ulations "o!ernin" water utili)ation* pri arily $resi'ential ?ecree No. 1=>2* entitle' (A Decree #nstituting a <ater Code There$" Revising and Consolidating the Laws =overning the *wnership Appropriation 8tili@ation !-ploitation Development Conservation and Protection of <ater Resources.( %As a''e' by #. A. 2331& SEC. ><-C. Protection of ,angrove Areas. + In e.istin" /ishpon' 8ease A"ree ent %/lAs& an' those that will be issue' after the effecti!ity of this Act* a portion of the fishpon' area frontin" the sea* sufficient to protect the en!iron ent* shall be establishe' as a buffer )one an' be plante' to specifie' an"ro!e species to be 'eter ine' in consultation with the re"ional office of the ?EN#. The Secretary of En!iron ent an' Natural #esources shall pro!i'e the penalties for any !iolation of this un'ertakin" as well as the rules for its i ple entation. %As a''e' by #. A. 2331& SEC. ><-?. Change of Crops. -The chan"e of crops to co ercial crops or hi"h !alue crops shall not be consi'ere' as a con!ersion in the use or nature of the lan'. The chan"e in crop shoul'* howe!er* not pre(u'ice the ri"hts of tenants or leasehol'ers shoul' there be any an' the consent of a si ple an' absolute a(ority of the affecte' far workers* if any* shall first be obtaine'. %As a''e' by #. A. 2331& SEC. >>. !-emptions from Ta-es and &ees of Land Transfers. + Transactions un'er this Act in!ol!in" a transfer of ownership* whether for natural or (uri'ical persons* shall be e.e pte' for ta.es arisin" fro capital "ains. These transactions shall also be e.e pte' fro the pay ent of re"istration fees* an' all other ta.es an' fees for the con!eyance or transfer thereof1 Provided That all arreara"es in real property ta.es* without penalty or interest* shall be 'e'uctible fro the co pensation to which the owner ay be entitle'. SEC. >2. &ree Registration of Patents and Titles. + All #e"isters of ?ee's are hereby 'irecte' to re"ister* free fro pay ent of all fees an' other char"es* patents* titles an' 'ocu ents re+uire' for the i ple entation of the CA#$. SEC. >3. #mmunit" of =overnment Agencies from 8ndue #nterference. + No in(unction* restrainin" or'er* prohibition or an'a us shall be issue' by the lower courts a"ainst the ?epart ents of A"rarian #efor %?A#&* ?epart ent of A"riculture %?A&* the ?epart ent of En!iron ent an' Natural #esources %?EN#&* an' the ?epart ent of Dustice %?OD& in their i ple entation of the $ro"ra . SEC. >9. Assistance of *ther =overnment !ntities.+ The $A#C* in the e.ercise of its functions* is hereby authori)e' to call upon the assistance an' support of other "o!ern ent a"encies* bureaus an' offices* inclu'in" "o!ern ent-owne' an' controlle' corporations. SEC. 2=. Disposition of Private Agricultural Lands. + The sale or 'isposition of a"ricultural lan's retaine' by a lan'owner as a conse+uence of Section > hereof shall be !ali' as lon" as the total lan'hol'in"s that shall be owne' by the transferee thereof inclusi!e of the lan' to be ac+uire' shall not e.cee' the lan'hol'in"s ceilin"s pro!i'e' for in this Act. Any sale or 'isposition of a"ricultural lan's after the effecti!ity of this Act foun' to be contrary to the pro!isions hereof shall be null an' !oi'. Transferees of a"ricultural lan's shall furnish the appropriate #e"ister of ?ee's an' the -A#C with an affi'a!it attestin" that his total lan'hol'in"s as a result of the sai' ac+uisition 'o not e.cee' the lan'hol'in" ceilin". The #e"ister of ?ee's shall not re"ister the transfer of any a"ricultural lan' without the sub ission of this sworn state ent to"ether with proof of ser!ice of a copy thereof to the -A#C. SEC. 21. .an' ,ortgages. - -anks an' other financial institutions allowe' by law to hol' ort"a"e ri"hts or security interests in a"ricultural lan's to secure loans an' other obli"ations of borrowers* ay ac+uire title to these ort"a"e' properties* re"ar'less of area* sub(ect to e.istin" laws on co pulsory transfer of foreclose' assets an' ac+uisition as prescribe' un'er Section 1> of this Act.

SEC. 22 Leases ,anagement =rower or )ervices Contracts ,ortgages and *ther Claims. + 8an's co!ere' by this Act un'er lease* ana"e ent* "rower or ser!ice contracts* an' the like shall be 'ispose' of as follows1 %a& 8ease* ana"e ent* "rower or ser!ice contracts co!erin" pri!ate lan's ay continue un'er their ori"inal ter s an' con'itions until the e.piration of the sa e e!en if such lan' has* in the eanti e* been transferre' to +ualifie' beneficiaries. %b& :ort"a"es an' other clai s re"istere' with the #e"ister of ?ee's will be assu e' by the "o!ern ent up to an a ount e+ui!alent to the lan'owner,s co pensation !alue as pro!i'e' in this Act. SEC. 20. Prohi$ited Acts and *missions. + The followin" are prohibite'1 %a& The ownership or possession* for the purpose of circu !entin" the pro!isions of this Act* of a"ricultural lan's in e.cess of the total retention li its or awar' ceilin"s by any person* natural or (uri'ical* e.cept those un'er collecti!e ownership by far er-beneficiaries. %b& The forcible entry or ille"al 'etainer by persons who are not +ualifie' beneficiaries un'er this Act to a!ail the sel!es of the ri"hts an' benefits of the A"rarian #efor $ro"ra ; %c& The con!ersion by any lan'owner of his a"ricultural lan' into non-a"ricultural use with intent to a!oi' the application of this Act to his lan'hol'in"s an' to 'ispossess his tenant far ers or the lan' tille' by the ; %'& The willful pre!ention or obstruction by any person* association or entity of the i ple entation of the CA#$; %e& The sale* transfer* con!eyance or chan"e of the nature of lan's outsi'e of urban centers an' city li its either in whole or in part after the effecti!ity of this Act. The 'ate of the re"istration of the 'ee' of con!eyance in the #e"ister of ?ee'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 unre"istere' lan's* as the case ay be* shall be conclusi!e for the purpose of this Act; %f& The sale* transfer or con!eyance by a beneficiary of the ri"ht to use or any other usufructuary ri"ht o!er the lan' he ac+uire' by !irtue of bein" a beneficiary* in or'er to circu !ent the pro!isions of this Act. SEC. 20-A. !-ception. - The pro!isions of Section 20* para"raph %e& to the contrary notwithstan'in"* the sale an'For transfer of a"ricultural lan' in cases where such sale* transfer or con!eyance is a'e necessary as a result of a bank,s foreclosure of the ort"a"e' lan' is hereby per itte'.% As a''e' by #. A. 2331& SEC. 27Penalties. - Any person who knowin"ly or willfully !iolates the pro!isions of this Act shall be punishe' by i prison ent of not less than one %1& onth to not ore than three %0& years or a fine of not less than one thousan' pesos %$1*===.==& an' not ore than fifteen thousan' pesos %$1<*===.==&* or both* at the 'iscretion of the court. If the offen'er is a corporation or association* the officer responsible therefor shall be cri inally liable SEC. 2<. )uppletor" Application of !-isting Legislation. + The pro!isions of #epublic Act Nu ber 0377* as a en'e'* $resi'ential ?ecree Nu bers 22 an' 2>> as a en'e'* E.ecuti!e Or'er Nu bers 223 an' 229* both Series of 1932* an' other laws not inconsistent with this Act shall ha!e suppletory effect. SEC. 2>. Repealing Clause. - Section 0< of #epublic Act Nu ber 0377* $resi'ential ?ecree Nu ber 01>* the last two para"raphs of Section 12 of $resi'ential ?ecree Nu ber 1=03* an' all other laws* 'ecrees* e.ecuti!e or'ers* rules an' re"ulations* issuances or parts thereof inconsistent with this Act are hereby repeale' or a en'e' accor'in"ly. SEC. 22. )epara$ilit" Clause. - If* for any reason* any section or pro!ision of this Act is 'eclare' null an' !oi'* no other section* pro!ision or part thereof shall be affecte' an' the sa e shall re ain in full force an' effect. SEC. 23. !ffectivit" Clause. - This Act Shall take effect i newspapers of "eneral circulation. e'iately after publication in at least two %2& national Appro!e'1 Dune 1=* 1933 .