Republic of the Philippines
HOUSE OF REPRESENTATIVES.
Quezon City

SIXTEENTH CONGRESS
First Regular Session

House Bill No,__ 2389

2 BY:

g
Introduced by HON. GWENDOLYN F. GARCIA

The Comprehensive Agrarian Reform Project or CARP is one of the most
ambitious socio-economic programs of the government. It was launched in 1988 with
the enactment of R.A. No, 6857 which was hailed as the “centerpiece legislation of the
Aquino administration. Its primary and lofty objectives are:

(1) Increased agricultural productivity

(2) Reduced poverty ‘and enhanced the dignity and quality of the lives of the
farmers and farmworkers.

(3) Promote. rural development and industrialization.

The DAR is the principal agency charged with the implementation of the CARP
which, under Sec. 5 of R.A. No. 6657, is to be completed within a period of Ten (10)
Years from effectively of the Act.

After an implementation period that stretched for Twenty (20) years (the original
10-year period having been extended for another ten (10) years by R.A. No. 8532) and
after spending more than ONE HUNDRED THIRTY BILLION PESOS (130,000,000.00)
the question that may be asked, at this point is: Has actual performance in
implementation of CARP measured up to its lofty ambition?

There is a fmous Latin Maxim: “Res ipsa loquitor’ which means: the thing speaks
for itself’. Perhaps, it would be injudicious or even self-serving for its principal
implementor - the DAR, to speak for CARP. So, let us the FACTS — the uncomfortable
yet undeniable facts speak.

FACT NO. 1

Whether some quarters will like it or not, the fact remains that CARP failed to
meet two (2) self-imposed deadlines. Under R.A. No. 6657, the CARP implementation
was supposed to be completed in Ten (10 Years after the effectivity of Act, or 1998. Its
principal implementor, DAR, failed to meet the deadline. So DAR came to Congress to
ask for an extension of Ten (10) Years for the completion of CARP’s implementation or
until 2008. Congress obliged by passing R.A. 8532 and extended CARP until 2008.
DAR FAILED again to meet this deadline set by R.A. No. 8532. So DAR, after TWO (2)
failures, DAR again asked for another extension of FIVE YEARS from Congress and the
latter granted the request with the enactment of R.A. No. 9700. As a friend of mine put
it: “This is truly one of those very rare instances where a program’s failure is used to
justify its continuation.” By the way, the CARP is the longest running program in the
world

Incidentally, according to the DAR GTZ Report (DAR's study on CARP
implementation funded by the German Technical Corporation — GTZ), of the thirty-three
(33) countries in the world that adopted an agrarian reform program, all failed except
three, namely Japan, Taiwan and Korea. And, in these three countries, their programs

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were implemented in less than 10 years. In thg-Philippines, if you add to 1963, then we
have 45 years of agrarian reform — the longest running agrarian reform program in the
whole world ~ record deserving of entry in the “Guinness Book of World Records”

FACT NO, 2

Agrarian Productivity Has Not Increased with CARP. Instead, It Has
Deteriorated.

Again, according to DAR’s own GTZ-DAR Report, Philippine agriculture is now in
a “state of distress”. The agricultural trade balance has had a clear deteriorating trend
since the enactment of the CARP law, with the country having been transformed from a
net agricultural exporter into a net agricultural importer.

This deterioration has been compounded by the fat of DAR’s erroneous mindset
that agrarian reform consists ONLY in the physical redistribution of lands and the
measure of its advancement is by number of hectares it has physically redistributed
This mindset has resulted in the irrational and indiscriminate fragmentation of
agricultural practices. On this point, the GTZ-DAR Report states:

“a worldwide review of agrarian reform initiatives over the last 50 years
reveals that redistributive land reform has frequently not succeeded in
attaining its prescribed goals. Lands Wistribution patterns unequal and
rural poverty remains unchanged.”

Our country's average agricultural growth rate from 1985 to 1994 was 1.5% the
lowest among 11 countries in Asia. From 1995-2000, it merely increased to almost 2%
making the Philippines 8" among the 11. Our rice yield of 2.5 tons per hectare is the
lowest in Asia, In recent years, we have been the largest single importer of Vietnam's
rice export (Dr. Bolisacan, Economist, poverty export and UP Los Baftos Professor).

FACT NO. 3
CARP Has Not Reduced Rural Poverty Nor Promoted Rural Development.

(a) According to the same GTZ-DAR Report already referred to above despite a
total of 34 years of Agrarian reform ‘it has failed to significantly reduce rural
poverty levels”

(b) In the book: The Anti-Development State: The Political Economy of
Permanent Crisis in the Philippiens, Prof. Walden Bello, et. al., point out:

“according to DAR’s own ARC Level of Development Assessment
(2000), over 80% of agrarian reform communities have average
household incomes below the national average. Clearly despite the
finding that CARP does benefit farmers, it does not raise the
majority of them above the poverty line. CARP beneficiaries cannot
show proof that they are better than majority of the poor in this
country.” :

(c) Recent surveys by the Center for Peasant Education Services (CPES) in
Southern Tagalog and Central Luzon showed that 3 out of 5 beneficiaries of
Certificate of Land Transfer (CLOAS) or Emancipation Patents sold their
rights or mortgage then abandoned their properties because of poverty.

Having said all of the above, the next question that arises is:


2

3)

)

WHAT’S WRONG WITH CARP OR ITS IMPLEMENTATION?
Consider the following:

DAR is implementing CARP in a manner that violates the letter and spirit of the
Constitution and the Rule of Law. Result: widespread of injustice, conflict and
confrontation, illegal and corrupt practices.

DAR's erroneous mindset that Agrarian Reform consists only in the physical
distribution of lands (forgetting that under R.A. No. 6657 there are other lawful
arrangements altemative to physical redistribution of lands) has brought about
the irrational fragmentation of agricultural lands, The average farm-size of the
more than 4 Million ARBs is 1.4 hectares, thereby making it extremely difficult to
modernize and mechanize and apply the economics scale in the operation of
these farms, Results: Decreasing agricultural productive and worsening rural
poverty.

The prohibition against the sale, lease or mortgage of agricultural lands has
unreasonably locked up or frozen hundreds of Billions of Pesos of investible
capital from land assets. This capital could have been used to promote
economic development and create more jobs and economic benefits for our
people, This self-imposed prohibition is simply illogical unrealistic and even,
perhaps, masochistic,

This Bill is intended to correct the ambiguities and inadequacies of R.A. No. 6657

and the errors of its implementation by DAR which have been mainly responsible for the
unfortunate state of CARP in the country today, and in order that the lofty and ambitious
objectives of CARP — increased agricultural productivity, poverty alleviation, rural
development and industrialization may be achieved in a manner consistent with the
Constitution mandate and the Rule of Law.

Hence, early approval of this Bill earnestly and respectfully requested.

<7
HON. GWENDOLYN F. GARCIA


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

SIXTEENTH CONGRESS
First Regular Session

23893

House Bill No,

Introduced by HON. GWENDOLYN F. GARCIA

AN ACT

TO STRENGTHEN AND RATIONALIZE THE IMPLEMENTATION OF THE
COMPREHENSIVE AGRARIAN REFORM PROGRAM SO AS TO CONFORM TO
THE MANDATE OF THE CONSTITUTION AND UPGRADE AGRICULTURAL
MANAGEMENT AND PRODUCTIVITY AND THEREBY CONTRIBUTE TO NATIONAL
ECONOMIC DEVELOPMENT AND THE UPLIFTMENT OF THE ECONOMIC STATUS
OF THE FARMERS AND FARMWORKERS WHO ARE THE LEGITIMATE
BENEFICIARIES OF THE PROGRAM, AMENDING FOR THE PURPOSE R.A. NO.
6657, AS AMENDED.

Be it enacted by the Senate and House of Representatives of the Philippines in
Congress assembled.

SECTION 1. This Act shall be known as the Agrarian Reform Rationalization and
Modernization Act of 2010.

SEC. 2. Paragraph (d) of Section 3 of R.A. No, 6657, as amended, otherwise
known as the Comprehensive Agrarian Reform Law of 1988, is hereby further amended
to read as follows:

“Section 3. Definitions. - For the purpose of this Act, unless the context indicates
otherwise:

"(a) Xxxxx
"(b) xx x xx
"(o) XX XXX

“(d) Agrarian Dispute refers to any controversy relating to tenurial arrangements,
whether leasehold, tenancy, stewardship or otherwise, over lands devoted to
agriculture, including disputes concerning farm workers’ associations or
representation of persons in negotiating, fixing, maintaining, changing or seeking
to arrange terms or conditions of such tenurial arrangements.

“It includes any controversy relating to THE PAYMENT OR AMORTIZATION OF
THE compensation of lands acquired under this Act and other terms and
conditions of transfer of ownership from landowners to farm workers, tenants and
other agrarian reform beneficiaries, whether the disputants stand in the
proximate relation of farm operator and beneficiary, landowner and tenant, or
lessor and lessee.


4) XXxXX"

SEC. 3. Section 6 of R.A. No. 6657, as amended, is hereby further amended to
read as follows:

“SEC. 6. Retention Limits, - WHENEVER ANY PRIVATE AGRICULTURAL
LAND IS EXPROPRIATED BY THE GOVERNMENT FOR REDISTRIBUTION
TO THE FARMERS OR REGULAR FARMWORKERS IN ACCORDANCE WITH
THE PROVISIONS OF THIS ACT, [Except as otherwise provided in this Act, no
person may own or retain, directly, any public or private agricultural land, the size
of which shall vary according to factors governing a viable family-sized farm,
such as commodity produced, terrain, infrastructure, and soil fertility as
determined by the Presidential Agrarian Reform Council (PARC) created
hereunder, but in no case shall the retention by] the landowner SHALL BE
ENTITLED TO RETAIN SUCH PORTION OF THE LAND REMAINING AFTER
THE AWARD TO QUALIFIED BENEFICIARIES OR AT LEAST AN AREA OF
SUCH LAND NOT EXCEEDING [exceed] five (5) hectares[,] AND AN
ADDITIONAL AREA OF THREE [Three] (3) hectares FOR EVERY [may be
awarded to each] child of the landowner, subject to the following qualifications:
(1) that he is at least fifteen (15) years of age; and (2) that he is actually tilling the
land or directly managing the farm. PROVIDED, HOWEVER, THAT IN CASE
THE FARMERS OR REGULAR FARMWORKERS WAIVE OR ARE NOT
INTERESTED TO EXERCISE THEIR RIGHT TO OWN THE LANDS THEY TILL
BUT DECIDE TO CONTINUE TILLING THE LAND AS FARMERS OR
REGULAR FARMWORKERS, THE DAR SHALL RESPECT THEIR DECISION
AND THE LANDOWNER SHALL GUARANTEE THEIR SECURITY OF TENURE
AND SHALL HAVE THE OBLIGATION TO ASSIST THE FARMERS OR
REGULAR FARMWORKERS IN CULTIVATING THE LAND SO AS TO MAKE IT
PRODUCTIVE; PROVIDED, FURTHER, THAT SAID FARMERS OR REGULAR
FARMWORKERS SHALL BE ENTITLED TO RECEIVE ALL THE BENEFITS
DUE THEM UNDER EXISTING LAWS [: Provided, That landowners whose lands
have been covered by Presidential Decree No. 27 shall be allowed to keep the
area originally retained by them thereunder; Provided, further, That original
homestead grantees or direct compulsory heirs who still own the original
homestead at the time of the approval of this Act shall retain the same areas as
long as they continue to cultivate said homestead]

“{The right to choose the area to be retained, which shall be compact or
contiguous, shall pertain, to the landowner: Provided, however, That in case the
area selected for retention by the landowner is tenanted, the tenant shall have
the option to choose whether to remain therein or be a beneficiary in the same or
another agricultural land with similar or comparable features. In case the tenant
chooses to remain in the retained area, he shall be considered a leaseholder and
shall lose his right to be a beneficiary under this Act. In case the tenant chooses
to be a beneficiary in another agricultural land, he loses his right as a leaseholder
to the land retained by the landowner. The tenant must exercise this option
within a period of one (1) year from the time the landowner manifests his choice
of the area for retention.

“In all cases, the security of tenure of the farmers or farm workers on the land
prior to the approval of this Act shall be respected.

“Upon the effectivity of this Act, any sale, disposition, lease, management
contract or transfer of possession of private lands executed by the original
landowner in violation of this Act shall be null and void: Provided, however, That
those executed prior to this Act shall be valid only when registered with the


Register of Deeds within a period of three (3) months after the effectivity of this
Act. Thereafter, all Registers of Deeds shall inform the DAR within thirty (30)
days of any transaction involving agricultural lands in excess of five (5)
hectares.]"

SEC. 4. Paragraph (c) of Section 10 of R.A. No. 6657, as amended, is hereby
further amended to read as follows:

“SEC. 10. Exemptions and Exclusions.-
"(a) xxxxx
"(b) xx xxx

“(c) Lands actually, directly and exclusively used and found to be necessary for
national defense, school sites and campuses, including experimental farm
stations operated by public or private schools for educational purposes, seeds
and seedlings research and pilot production center, church sites and convents
appurtenant thereto, mosque sites and Islamic centers appurtenant thereto,
communal burial grounds and cemeteries, penal colonies and penal farms
actually worked by the inmates, government and private research and quarantine
centers and all lands with eighteen percent (18%) slope and over, except those
already TILLED AND developed BY TENANTS OR LESSEES, shall be exempt
from the coverage of this Act.”

SEC. 5. Section 13 of R.A. No. 6657, as amended, is hereby further amended to
read as follows:

“SEC. 13, Production-Sharing Plan AND LABOR ADMINISTRATION. - Any
enterprise adopting the scheme provided for in Section 32 or operating under a
production venture, lease, management contract or other similar arrangement
and any farm covered by Sections 8 and 11 hereof is hereby mandated to
execute within ninety (90) days from the effectivity of this Act, a production-
sharing plan under guidelines prescribed by the appropriate government agency.

"IN CASE THE FARM IS OPERATED BY THE LANDOWNER OR UNDER
LABOR ADMINISTRATION THROUGH THE EMPLOYMENT OF
FARMWORKERS, THE LANDOWNER SHALL COMPLY WITH THE MINIMUM
WAGE AND LABOR STANDARDS FIXED BY EXISTING LABOR LAWS.

"XXX KX”

SEC. 6. There shall be incorporated a new section under Chapter Ill of Republic
Act No. 6657, as amended, to be known as Section 13-A to read as follows:

“SEC. 13-A. AGRO-INDUSTRIAL ENTERPRISES. IN ORDER TO
ENCOURAGE AND ACCELERATE AGRICULTURAL MODERNIZATION AS
MANDATED BY RA. NO. 8435, OTHERWISE KNOWN AS THE
AGRICULTURAL AND FISHERIES MODERNIZATION ACT, AND TO TAKE
ADVANTAGE OF THE ECONOMIES OF SCALE, MECHANIZATION AND THE
APPLICATION OF NEW TECHNOLOGIES, PRIVATE AGRICULTURAL LANDS
MAY BE OPERATED AS AGRO-INDUSTRIAL ENTERPRISES THROUGH
LABOR ADMINISTRATION AS A MODE OF AGRARIAN REFORM
ALTERNATIVE TO PHYSICAL REDISTRIBUTION, AS PROVIDED UNDER
SEC. 3(A) HEREOF; PROVIDED, THAT THE FARMWORKERS SHALL BE
GRANTED ALL THE MONETARY AND OTHER BENEFITS DUE THEM UNDER
R.A. NO. 3844 AND EXISTING LABOR LAWS.


“IN THE CASE OF AGRICULTURAL LANDS ALREADY DISTRIBUTED IN
ACCORDANCE WITH THE PROVISIONS OF THIS ACT, R.A. NO, 3844 OR
P.D. NO. 27, THE AGRARIAN REFORM BENEFICIARIES MAY POOL AND
CONSOLIDATE THEIR FARM LOTS AND ENTER INTO JOINT-VENTURE
AGREEMENTS WITH THE LANDOWNER OR OTHER AGRO-INDUSTRIAL
INVESTORS FOR THE PRODUCTIVE UTILIZATION AND DEVELOPMENT OF
THEIR CONSOLIDATED FARMS.”

SEC. 7. Section 16 of R.A. No. 6657, as amended, is hereby further amended to
read as follows:

SEC. 16. Procedure for Acquisition and Distribution of Private Lands. - For
purposes of acquisition of private lands, the following procedures shall be
followed

“(a) AS MANDATED BY SECTION 4, ARTICLE XIll OF THE
CONSTITUTION, ONLY FARMERS (TENANTS, LESSEES) AND REGULAR
FARMWORKERS WHO ARE LANDLESS ARE ENTITLED TO OWN THE
LANDS THEY TILL [After having identified the land, the landowners and the
beneficiaries, the DAR shall send its notice to acquire the land to the owners
thereof, by personal delivery or registered mail, and post the same in a
conspicuous place in the municipal building and barangay hall of the place where
the property is located. Said notice shall contain the offer of the DAR to pay a
corresponding value in accordance with the valuation set forth in Sections 17, 18,
and other pertinent provisions hereof]

“(b) UPON WRITTEN APPLICATION BY THE FARMERS OR BY MAJORITY OF
THE REGULAR FARMWORKERS WORKING ON THE LAND FILED WITH
THE DAR SIGNIFYING THEIR INTENTION TO OWN THE LANDS THEY TILL,
THE DAR SHALL SEND ITS NOTICE TO ACQUIRE THE LAND COVERED BY
THE APPLICATION TO THE LANDOWNER THEREOF BY PERSONAL
DELIVERY OR REGISTERED MAIL. SAID NOTICE SHALL CONTAIN A
TECHNICAL DESCRIPTION OF THE LAND OR PORTION THEREOF SOUGHT
TO BE ACQUIRED AND AN OFFER TO PAY THE JUST COMPENSATION
FOR THE LAND [Within thirty (30) days from the date of receipt of written notice
by personal delivery or registered mail, the landowner, his administrator or
representative shall inform the DAR of his acceptance or rejection of the offer].

“(c) WITHIN THIRTY (30) DAYS FROM RECEIPT OF THE NOTICE, THE
LANDOWNER OR HIS REPRESENTATIVE SHALL INFORM THE DAR OF HIS.
ACCEPTANCE OR REJECTION OF THE PROPOSED ACQUISITION OF HIS
LAND OR THE JUST COMPENSATION OFFERED [If the landowner accepts
the offer of the DAR, the LBP shall pay the landowner the purchase price of the
land within thirty (30) days after he executes and delivers a deed of transfer in
favor of the Government and surrenders the Certificate of Title and other
muniments of title).

“(d) IF THE LANDOWNER ACCEPTS THE PROPOSED ACQUISITION AND
THE JUST COMPENSATION OFFERED, THE LBP SHALL PAY THE
LANDOWNER THE PURCHASE PRICE OF THE LAND WITHIN THIRTY (30)
DAYS AFTER THE EXECUTION OF THE DEED OF TRANSFER IN FAVOR OF
THE GOVERNMENT; PROVIDED, HOWEVER, THAT THE TITLE TO THE
LAND SHALL NOT BE TRANSFERRED TO THE GOVERNMENT UNTIL FULL
PAYMENT OF THE PURCHASE PRICE [In case of rejection or failure to reply,
the DAR shall conduct summary administrative proceedings to determine the
compensation of the land by requiring the landowner, the LBP and other


interested parties to summit evidence as to the just compensation for the land,
within fifteen (15) days from the receipt of the notice. After the expiration of the
above period, the matter is deemed submitted for decision. The DAR shall
decide the case within thirty (30) days after it is submitted for decision]

“(e) IN CASE OF OBJECTION TO THE PROPOSED ACQUISITION OR TO THE
PRICE OFFERED OR FAILURE TO REPLY ON THE PART OF THE
LANDOWNER AFTER THIRTY (3) DAYS FROM RECEIPT OF THE NOTICE,
THE DAR, UPON SPECIFIC AUTHORIZATION BY PARC, SHALL PROCEED
TO THE COMPULSARY ACQUISITION OF THE LAND BY FILING THE
NECESSARY EXPROPRIATION PROCEEDING, IN ACCORDANCE WITH
RULE 67 OF THE RULES OF COURT, WITH THE SPECIAL AGRARIAN
COURT [Upon receipt by the landowner of the corresponding payment or in case
of rejection or no response from the landowner, upon the deposit with an
accessible bank designated by the DAR of the compensation in cash or LBP
bonds in accordance with this Act, the DAR shall take immediate possession of
the land and shall request the proper Register of Deeds to issue a Transfer
Certificate of Title (TCT) in the name of the Republic of the Philippines. The DAR
shall thereafter proceed with the redistribution of the land to the qualified
beneficiaries]

“(f) THE CITY OR MUNICIPALITY IN WHICH THE LAND IS LOCATED SHALL
BE NOTIFIED OF THE EXPROPRIATION PROCEEDING AND SHALL BE
ALLOWED TO INTERVENE IN CASE THE INTENDED ACQUISITION IS IN
CONFLICT WITH ITS LAND USE AND DEVELOPMENT PLAN [Any party who
disagrees with the decision may bring the matter to the court of proper
jurisdiction for final determination of just compensation.”

SEC. 8. Section 22 of R.A. No. 6657, as amended, is hereby further amended to
read as follows:

“SEC. 22. Qualified Beneficiaries. - The lands covered by the CARP shall be
distributed as much as possible to landless residents of the same barangay, or in
the absence thereof, landless residents of the same municipality WHO ARE THE
TILLERS OF SAID LANDS in the following order of priority:

SON

“Provided, however, That the children of landowners who are qualified under
Section 6 of this Act shall be given preference in the distribution of the land of
their parents; and: Provided, further, that actual tenant -tillers in the landholding
shall not be ejected or removed therefrom.

“LANDLESS SEASONAL AND OTHER WORKERS ARE ENTITLED TO
RECEIVE A JUST SHARE OF THE FRUITS OF THE LAND BUT THEY MAY BE
RESETTLED AND GIVEN LAND IN LANDS OF THE PUBLIC DOMAIN OR IN
AGRICULTURAL ESTATES OWNED BY THE GOVERNMENT.

“Beneficiaries under Presidential Decree No. 27 who have culpably sold,
disposed of, or abandoned their land are disqualified to become beneficiaries
under their program.

"XXX KX"

SEC. 9. Section 24 of R.A. No. 6657, as amended, is hereby further amended to
read as follows:


“SEC. 24. Award to Beneficiaries. - The rights and responsibilities of the
beneficiaries shall commence from their receipt of a duly registered
emancipation patent or certificate of land ownership award and their actual
physical possession of the awarded land. Such award shall be completed in
not more than one hundred eighty (180) days from the date of registration of
the title in the name of the Republic of the Philippines: PROVIDED, THAT
THE TITLE OF THE EXPROPRIATED LAND SHALL NOT BE
TRANSFERRED TO THE GOVERNMENT UNTIL FULL PAYMENT OF THE
COMPENSATION TO THE LANDOWNER AND PROVIDED FURTHER,
THAT IN TRANSACTIONS DEALING WITH LANDS REGISTERED UNDER
THE LAND REGISTRATION ACT, THE REGISTER OF DEEDS SHALL
OBSERVE STRICTLY THE PROVISIONS OF SAID ACT AND THE
PROPERTY REGISTRATION DECREE. Provided FURTHER, That the
emancipation patents, the certificates of land ownership award, and other
titles issued under any agrarian reform program shall be indefeasible and
imprescriptible after one (1) year from its registration with the Office of the
Registry of Deeds, subject to the conditions, limitations and qualifications of
this Act, the property registration deoree, and other pertinent laws. The
emancipation patents or the certificates of land ownership award being titles
brought under the operation of the torrens system, are conferred with the
same indefeasibility and security afforded to all titles under the said system,
as provided for by Presidential Decree No. 1529, as amended by Republic
Act No. 6732

XXX x”

SEC. 10. Section 50 of R.A. No. 6657, as amended, is hereby further amended
to read as follows:

"SEC. 50. Quasi-Judicial Powers of the DAR. - The DAR is hereby vested
with primary jurisdiction to determine and adjudicate agrarian reform matters
and shall have exclusive original jurisdiction over all AGRARIAN DISPUTES
AS DEFINED IN SECTION 3(D) OF THIS ACT [matters] involving the
implementation of agrarian reform, except those falling under the exclusive
jurisdiction of the SPECIAL AGRARIAN COURTS, Department of Agriculture
(DA) and the DENR

"XXX XX” ra

SEC. 11. Section 57 of R.A. No. 6657, as amended, is hereby further amended
to read as follows:

“SEC. 57. Special Jurisdiction. - The Special Agrarian Courts shall have original
and exclusive jurisdiction over all petitions for EXPROPRIATION FOR THE
COMPULSARY ACQUISITION OF PRIVATE AGRICULTURAL LANDS FOR
THE AGRARIAN REFORM PROGRAM AND the determination of just
compensation to landowners, and the prosecution of all criminal offenses under
this Act, The Rules of Court shall apply to all proceedings before the Special
Agrarian Courts unless modified by this ActJ.] AND ALL OTHER CASES
INVOLVING RIGHTS WHICH ARE LEGALLY DEMANDABLE AND
ENFORCEABLE UNDER RA 6657, RA 3844, AS AMENDED, PRESIDENTIAL
DECREE NOS. 27 AND 266 AND OTHER AGRARIAN LAWS.

“The Special Agrarian Courts shall decide all appropriate cases under their
special jurisdiction within thirty (30) days from submission of the case for
decision.”


SEC. 12. Section 63 of R.A. No. 6657, as amended, is hereby further amended
to read as follows:

"SEC. 63, Funding Source. - The amount needed to further implement the CARP
as provided in this Act, until June 30, 2014, upon expiration of funding under
Republic Act No. 8532 and other pertinent laws, shall be funded from the
Agrarian Reform Fund and other funding sources in the amount of at least One
hundred fifty billion pesos (P150,000,000,000.00).

"Additional amounts are hereby authorized to be appropriated as and when
needed to augment the Agrarian Reform Fund in order to fully implement the
provisions of this Act during the five (5)-year extension period.

“THE ADDITIONAL AMOUNT HEREBY AUTHORIZED TO BE APPROPRIATED
SHALL BE SPREAD OVER A PERIOD OF FIVE (5) YEARS, PROVIDED, THAT
FIFTY PERCENT (50%) OF SAID AMOUNT SHALL BE DEVOTED AND SPENT
FOR SUPPORT SERVICES UNDER CHAPTER IX (SUPPORT SERVICES) OF
THIS ACT AND THE MODERNIZATION OF AGRICULTURE, THE PROVISION
OF SEC. 36 NOTWITHSTANDING; PROVIDED FURTHER, THAT THE
PROVISIONS ON LAND ACQUISITION AND REDISTRIBUTION SHALL BE
DONE ON A PROVINCE-BY-PROVINCE IMPLEMENTATION PURSUANT TO.
SECTION 45 OF THIS ACT AND AS DETERMINED AND DIRECTED BY PARC
AFTER TAKING INTO CONSIDERATION THE INTERESTS OF BOTH THE
BENEFICIARIES AND LANDOWNERS, AGRICULTURAL EFFICIENCY AND.
PRODUCTIVITY AND THE CONCERNS OF THE LOCAL AND NATIONAL
ECONOMY AND; PROVIDED FINALLY, THAT LAND ACQUISITION AND
REDISTRIBUTION AS A MODE OF AGRARIAN REFORM SHALL DEFINITELY
EXPIRE ON JUNE 30, 2014. THEREAFTER, THE CARP SHALL BE PURSUED.
AND IMPLEMENTED UNDER THE TENURIAL OR OTHER ARRANGEMENTS
ALTERNATIVE TO PHYSICAL DISTRIBUTION OF LANDS AS RECOGNIZED
AND AUTHORIZED BY RA 3844 AND RA 6657.

REX

SEC. 13. Section 65 of R.A. No. 6657, as amended, is hereby further amended
to read as follows:

"SEC. 65. Conversion of Lands. - After the lapse of five (5) years from its award,
when the land ceases to be economically feasible and sound for agricultural
purposes, or the locality has become urbanized and the land will have a greater
economic value for residential, commercial or industrial purposes, the DAR, upon
application of the beneficiary or the landowner with respect only to his/her
retained area which is tenanted, with due notice to the affected parties, and
subject to existing laws, may authorize the reclassification or conversion of the
land and its disposition: Provided, That THE BENEFICIARY SHALL HAVE
FULLY PAID HIS OBLIGATION. PROVIDED, HOWEVER, THAT EVEN
BEFORE THE LAPSE OF FIVE (5) YEARS, THE LANDOWNER AND THE
BENEFICIARY MAY, FOR THEIR MUTUAL BENEFIT AND INTERES, AGREE
ON THE RECLASSIFICATION OR CONVERSION OF THE LAND BY MEANS.
OF A PUBLIC INSTRUMENT DULY FILED WITH THE DAR AND REGISTERED
WITH THE REGISTER OF DEEDS, AND PROVIDED, FURTHER, THAT THE
LAND BANK OF THE PHILIPPINES OR THE GOVERNMENT, THROUGH THE
DAR, SHALL BE REIMBURSED FOR WHATEVER AMOUNT BY WAY OF
COMPENSATION THUS FAR PAID FOR THE LAND.

“[if the applicant is a beneficiary under agrarian laws and the land sought to be
converted is the land awarded to him/her or any portion thereof, the applicant,


after the conversion is granted, shall invest at least ten percent (10%)of the
proceeds coming from the conversion in government securities: Provided,
[further] That the applicant upon conversion shall fully pay the price of the land:
Provided, FURTHER| furthermore], That irrigated and irrigable lands, shall not be
subject to conversion: Provided, finally, That the National Irrigation Administration
shall submit a consolidated data on the location nationwide of all irrigable lands
within one (1)year from the effectivity of this Act.

"Failure to implement the conversion plan within five (5) years from the approval
of such conversion plan or any violation of the conditions of the conversion order
due to the fault of the applicant shall cause the land to automatically be covered
by CARP."

SEC. 14. Section 70 of R.A. No. 6657, as amended, is hereby amended to read
as follows:

“SEC. 70. Disposition, LEASE OR MORTGAGE of Private Agricultural Lands. -
The sale AND [or] disposition, LEASE OR MORTGAGE of PRIVATE agricultural
lands FOR WHICH NO EXPROPRIATION PROCEEDING HAS BEEN FILED
WITH THE SPECIAL AGRARIAN COURT BY DAR SHALL BE LAWFUL AND
VALID: PROVIDED, THAT SUCH SALE AND DISPOSITION, LEASE OR
MORTGAGE IS WITH THE CONFORMITY OF THE FARMERS OR REGULAR
FARM WORKERS WORKING ON THE LAND, AND PROVIDED, FURTHER,
THAT THEIR SECURITY OF TENURE AND OTHER RIGHTS UNDER
EXISTING LAWS ARE NOT IMPAIRED. [retained by a landowner as a
consequence of Section 6 hereof shall be valid as long as the total landholdings
that shall be owned by the transferee thereof inclusive of the land to be acquired
shall not exceed the landholdings ceilings provided for in this Act. Any sale or
disposition of agricultural lands after the effectivity of this Act found to be contrary
to the provisions hereof shall be null and void.]

“Transferees, LESSEES OR MOTGAGEES of agricultural lands shall REGISTER
THE SALE, CONVEYANCE, LEASE OR MORTGAGE WITH THE REGISTER
OF DEEDS AND furnish A COPY THEREOF TO THE DAR. THE TRANSFEREE
OR LESSEE SHALL, IN ADDITION, EXECUTE AN AFFIDAVIT TO THE
EFFECT THAT HE, TOGETHER WITH HIS TENANTS OR WITH HIS
FARMWORKERS, THROUGH LABOR ADMINISTRATION, SHALL MAKE THE
LAND PRODUCTIVE. THIS AFFIDAVIT SHALL BE FILED WITH THE
REGISTER OF DEEDS AND COPY FURNISHED TO THE DAR. [the
appropriate Register of Deeds and the BARC with an affidavit attesting that his
total landholdings as a result of the said acquisition do not exceed the
landholding ceiling. The Register of Deeds shall not register the transfer of any
agricultural land without the submission of this sworn statement together with
proof of service of a copy thereof to the BARC, ]”

SEC. 15, Paragraphs (a) and (e) of Section 73 of R.A, No. 6657, as amended,
are hereby amended to read as follows:

“SEC. 73. Prohibited Acts and Omissions. - The following are prohibited:

“(a) The ownership or possession, for the purpose of circumventing the
provisions of this Act, of agricultural lands EXPROPRIATED AND DISTRIBUTED
PURSUANT TO THE PROVISIONS OF THIS ACT, in excess of the total
retention limits or award ceilings ADJUDICATED IN THE CASE by any person,
natural or juridical, except those under collective ownership by farmer-
beneficiaries.


"XX XX

“(e) The sale, transfer, conveyance MORTGAGE or change of the nature of
lands outside of urban centers and city limits either in whole or in part after the
effectivity of this Act FOR THE PURPOSE OF CIRCUMVENTING ITS
PROVISIONS. The date of the registration of the deed of conveyance in the
Register of Deeds with respect to titled lands and the date of the issuance of the
tax declaration to the transferee of the property with respect to unregistered
lands, as the case may be, shall be conclusive for the purpose of this Act;

"XX XXX"

SEC. 16. Any law, decree, executive order, rules and regulations or parts thereof
inconsistent with this Act are hereby repealed or amended accordingly.

SEC. 17. This Act shall take effect immediately after publication in two (2)
newspapers of general circulation in the Philippines.

Approved,