Republic of the Philippines
= OF REPRESENTATIVES
Quezon City

HO!

FIFTEENTH CONGRESS
First Regular Session

oe 487

H. B. No.

Introduced by HONORABLE JUAN EDGARDO “SONNY” M. ANGARA

EXPLANATORY NOTE

This bill mandates the development and adoption of a sustainable forest management
strategy based on rational allocation of forestland uses and promotion of land use practices that
increase productivity and conserve soil, water, and other forestland resources, protection of
existing forest resources and conservation of biodiversity, rehabilitation or development of
denuded areas to expand the forest resource base and promote food production activities.

As of December 31 2004, the Philippines have a total land area of 30,000,000 hectares,
52.8% of which, or 15,851,473 hectares classified as forest land. The Southern ‘Tagalog Region
has the biggest area of forest land, with 2,178,871 hectares or 7% of total forest land found in
said area, The province of Palawan having the biggest area of forest land among all provinces in
the Philippines, with 1,057,499 hectares or 3.5% of the total forest land found in said province.

As of year 2000, the leading cause of forest disturbance is illegal cutting, with a total of
4,920 hectares of land destroyed, the highest incidence since the 1990s. There were two major
causes in the decline of stocks of forest resources during the period 1988 to 1994. ‘The country
lost resources worth P48.6 billion to harvesting and other logging activities, while the conversion
of forestland to non-forest use accounted for P20.4 billion in losses. Also cdntributing to the
decline in stocks were forest fires, accounting for P439.7 million, and the natural death of trees
(stand mortality) which accounted for P5.9 billion. Demand for agricultural land is also one of
the main reasons that forests continue to be erased at the rate of 13 million hectares a year. By
2005, forests were estimated at 47 % of the total land, from 51% in 1990. From 1990 until 2000,
the rate of deforestation of the Philippines is 1.4%. The Philippines is the highest among the
Southeast Asian Nations together with Myanmar with the same rate.

Clearly, there is therefore a need to ensure that our forests are restored to its old grandeur
and richness. This bill aims to address such need by implementing a plan for sustainable forest
management guided by the following principles:

1. Watershed as the basic forestland management unit.- Forestlands shall be conserved,
developed, and managed utilizing watershed as the basic management unit and under the
concepts of sustainable and multiple-use management, including the conservation of
biodiversity

2. Multi-sectoral participation.- The participation of all sectors of society in sustainable
forestland conservation, management, and development shall be promoted. Equitable
sharing of the benefits deriv24 from forestlands shall be ensured at all times;



3. Community-based forest management (CBFM) as a principal strategy.- Vesting access
rights and responsibilities to forest resident families, local communities, and indigenous
peoples to

undertake the management and development of appropriate forestland resources on a
sustainable basis shall have precedence over other strategies;

4. Protection of forestlands and natural resources as priority concem.- The protection of
forestlands, especially protected areas and the natural resources therein shall be given
priority concern in order to cnsure- environmental stability, enhance biological diversity,
increase productivity, and provide economic benefit

Reforestation as a priority measure.- Economic and ecological reforestation shall be
given priority emphasis in order to rehabilitate and restore the usefulness or productivity
of denuded and degraded forestlands as well as increase the income of communities
concerned;

6. Security of tenure of stakeholders- In pursuance of the principles of sustainable and
multi-use forest management and equitable access to forest resources, a secured tenure
shall be guaranteed to stakeholders concerned; and

7. Professionalism in forest service.- A dynamic, professional and people-oriented forest
service shall be established and fully supported by the government.

There have been a wide range of players involved in forest rehabilitation in the

Philippines in the last few decades including the national government, NGOs, private companies,
LGUs, local communities and private land owners. Ensuring long-term sustainability appears to
be one of the biggest challenges facing many of the initiatives.

generation without compromising the ability of the future generations to meet their own needs

This proposed measure aims to ensure that our forests mect the needs of the present

In view of the foregoing, immediate passage of this bill is earnestly requested.

JUAN EDG.
Representative
Lone DistrictProvince of Aurora


FIFTEENTH CONGRESS OF THE )
REPUBLIC OF THE PHILIPPINES )
First Regular Session )

UBNo__ 487

Introduced by Honorable JUAN EDGARDO “SONNY” M. ANGARA

AN ACT PROVIDING FOR SUSTAINABLE FOREST MANAGEMENT

Be if enacted by the Senate and the House of Representatives of the Philippines in
Congress assembled,

CHAPTERI
BASIC FORESTRY POLICIES

SECTION 1. Short Title.- This Act shall be known as the "Sustainable Forest
Management Act of 2010.”

SEC. 2. Basic Policies.- In conformity with the provisions of the Constitution to promote
the general welfare and social justice in all phases of national development, to protect and
advance the right of the Filipino people to a balanced and healthful ecology in accord with the
rhythm and harmony of nature, and to conserve and develop the patrimony of the nation, the
State hereby adopts the following policies relative to the conservation and management of forests
and their resources:

(a) The specific limits of forestlands after these have been fixed and demarcated shall not
be altered except through an Act of Congress;

(by The use of forest resources shall bear a social function, responsibility, and
accountability to promote the common good;

(c) Integrated and sustainable, focusing on the resource and the people, who manage,
conserve, and benefit from it, shall be the guiding principle in the management, protection,
conservation, and development of forest resources.

In carrying out the above policies, the following strategies shall be pursued:

(i) Watershed as the basic forestland management unit.- Forestlands shall be conserved,
developed, and managed utilizing watershed as the basic management unit and under the
concepts of sustainable and multiple-use management, including the conservation of bio-
diversity;

(ii) Multi-sectoral participation.- The participation of all sectors of society in sustainable
forestland conservation, management, and development shall be promoted.

Equitable sharing of the benefits derived from forestlands shall be ensured at all times;

(iii) Community-based forest management (CBFM) as a principal strategy.-

Vesting access rights and responsibilities to forest resident families, local communities, and
indigenous peoples to undertake the management and development of appropriate forestland
resources on a sustainable basis shall have precedence over other strategies;

(iv) Protection of forestlands and natural resources as priority concern.- The protection of
forestlands, especially protected areas and the natural resources therein shall be given priority
concern in order to ensure environmental stability, enhance biological diversity, increase
productivity, and provide economic benefits;



(v) Reforestation as a priority measure Economie and ecological reforestation
shall be given priority emphasis in order to rehabilitate and restore the usefulness or
productivity of denuded and degraded forestlands as well a2 increase the income of
communities concemed;

(vi) Security of tenure of stakeholders- In pursuance of the principles of
sustainable and multi-use forest management and equitable access to forest resources, a
secured tenure shall be guranteed to stakeholders concerned; and

i professional and people-
orted by the government.

SEC. 3. Definition of Terms As used in this Act, the term:

@) "Agroforestry" shall refer to a strategy for the sustainable management of lands
which increases their overall productiv combining agricultural crops
and/or livestock with forest crops cimullanecusly or sequentially through the
application of management practices which are compatible with the local climate,
topography, slope, soil, as welll as the cultural patterns or customary Jaws of the local
population.
(b) “Agricultural Lands" shail refer to lands of the public domain which have been
delimited, classified and declared as such, and are available for disposition under the
provisions of Commonwealth Act No. 141, as amends
Land Act.

(c) “Ancestcal Domain® shall refer to all lands and natural resources occupied or
possessed by indigenous cultural communities as recognized and delineated pursuant
to Republic Act No. 8371 or the Indigenous Peoples Rights Act (IPRA).

(d) “Ancestral Lands” shall refer to Jands recognized and delineated pursuant to
the IPRA.

(2) Annual Allowable Harvest” shall refer to the amount or volume of maierials,
‘whether of timber, non-timber, or other forest producis, authorized by the government
to be harvested within each year from forests.

® “Biological Diversity or Biodiversity’ means the variability among living
organisms including, inter alia, terrestrial, marine and other aquatic ecosystems and the
ecological complexes of which they are part. This includes diversity within and
belween species and ecosystems.

(g) “Brashlands” shall refer to areas characterized by discontinuons cover of
shrubby and non-wood vegetation including grasses usually as a result vf repeated
clearing and burning of the original forest cover.

{h) “Buffer Zones” shall refer to areas outside the boundaries of and iminediately
adjacent to protected areas designated as such pursuant to Section 8 of Republic Act No.
7885 or the National Integrated Protected Areas System (NIPAS) Act that need special
development control in order to avoid or minimize harm to the protected area.

( “By-Product” shall zefer to any part taken from wildlife species such as hides,
antlers, feathers, fur, internal organs, roots, trunk, branches, leaves, stems, flowers and
the like,

() "Cornmexcial Logging" shall refer to the cutting or

purpose of disposing of the cut or
livelihood means.
) "Communal Forest" shall refer to a tract of forestland set aside and established
for and under the protection, administration, ar agement of a city, municipality,
or barangay as a source of wood material for fuel, shelien, and manufactured producis;
as source of water for the community; and area for ecotourism and/or environmental
protection or socio-economic projects of local government units consistent with
sustainable development.

ing of trees for the
led logs for monetary profits beyond survival and



() "Community-Based Forest Management Strategy" shall refer to all exganized
efforts of government to work with forest resident femnilies and communities inside and
adjacent to public forestlands with the intent to empower them and entrust to them the
protection, rehabilitation, management, conservation, and utilization of the forestlands
and tesourcas therein.

(2) Conservation” shalt refer to piarmed protection and management of forests
and their resources so as to prevent waste and ensure future use.

(a) "Conveyance" shail refer to any vehicle, vessel, device or animal used in
gathering or transporting forest products,

(k) "Co-production Agreement” shall refer to an agreement entered into by and
between a qualified person and the government for the fermer to develop, utilize, and
manage, consistent with the principles of sustainable development, a private Jand or
portion of a forestland wherein both parties agree to provide inputs and share the
products or thelr equivalent cash value.

(p) “Critical Watershed” shell refer to that portion of a watershed reservation
which has been classified as a strict protection zone pursuant to the NIPAS Law and its
implementing rules and regulations.

(q) “Department* shall refer to the Department of Environment and Natural
Resources.

() "Denuded Forestlands" shall refer to forestlands that are devoid of forest tree
cover,

(8) "Degraded Forests” shall refer to natural forests containing Jess than five (6)
square meters in basal area per hectare of commercial tree species with diameters at
breast height or diameter above buttress of less than sixty-five (65) centimeters, An area
could be considered degraded if it has been cleared of vegetation and could ino longer
support life as habitat for wildlife

(® "Environmental Impaci Assessment (BIA)" shall refer to the process of
predicting the likely environmental consequences of implementing a priject or
undertaking and designing the appropriate preventive, mitigating, or enhancement
measuttes.

(s) "Snvironmental Compliance Certificate (ECC)" shall refer to the document
issued by the Department certifying that a proposed project or undertaking will not
cause a significant negative impact on the environment; that the proponent ‘has
complied with all the requirements of the Environmental Impact Assessment (EVA)
System; and that the proponent is committed to implement its approved Environment
Management Plan found in the Bavironmental impact Statement (EIS) or mitigation
measures identified in the Initial Environmental Hxamination (128),

(v) “Environmental Impact Statement (EIS) System” shall refer to the organization,
administration, and procedures that have been institutionalized pursuant to
Presidential Decree No. 1586 for parposes of assessing the significance of the effects of
any project or undertaking on the quality of the physical, biological, and social-
economic environment and designing the appropriate mitigating and enhancement
measures.

tw) {9 "Forest" shall refer to land with tree crown cover or equivalent stocking level
of more than ten percent (10%) and afi area of more than half a hectare (0.5 ha.). The
trees should be able to reach a minimum height of five meters (Sm.) at maturity in situ.
it may consist either of closed forest formations where irees of various storeys and
undergrowth cover a high proportion of the ground, or open forest formation with a
continuous vegetation cover in which tree crown cover exceeds wn percent (10%).
‘Young natural stands and all plantations established for forestry purposes which have
-yet to reach a crown densily of ten percent (10%) or tree height of five meters (6 mu) are
included under forest, as are ateas normally forming, part of the forest area which are
temporarily unstocked as a result of human intervention or natural causes but which



are expected to revert to forest. Porests include such stand types ae dipterocarp, pine,
mossy, molave, beach, and mangrove. For the purpose of this Act, natural forests may
be classified according to: 1} primary use and management, a forest shall be classified as.
either: a) protection forest, or b) production forest after its most suitable and dominant
multicuse function has been determined pursuant te this Act. In terms of growth
formation, a forest is classified as either closed forest ot open forest. Closed forests have
‘trees in the various storeys and the undergrowth that cover a high proportion, greater
than forty percent (>40%), of the ground and do net have a continuous dense grase
layer. Closed forests are either managed or unmanaged forests, primary or in advanced
atate of reconstitution, and may have been leggec-ove: one or more times bat have kept
their characteristics of forest stands, possibly with modified structure and composition,
Open forests have trees that are of discontinuous layer, with a coverage of at least ten
parcent (10%) and less than forty percent (40%). Generally, there is a continuous grags
layer allowing grazing and spreading of fires,

(%) “Forest Charges" shall refer to the levy imposed and collected by the
government on naturally growing timber and other forest products cut, harvested, or
gathered from the forestlands and from “alienable and disposable" (AécD) lands in
accordarice with Republic Act No. 7161.

(y) Forest-Based Industries” shall refer to various industries that are dependent on
raw materials or products derived from forests such as, but not limited to, wood, rattan,
bamboo, vines, latex, resins, saps, essences, fruits, flowers, or wild flore and feuna.

(2) "Porest/Forest-Based Community" shall refer to a group of people residing
inside or immediately adjacent to a particular forestland who are largely or partly
dependent on the forest resources found therein for their ivelihood.

(aa) "Forestlands” shall refer ta lands of the public domain that have been
classified as such and all unclassified lands of the public domain.

(bb) “Forest Officer" shall refer to any public officer who by the nature of his
appointment or the functions of the position to which he is appointed is delegated by
law and regulations or commissioned by competent authorities to execuie, implernent
ox enforce the provisions of this Act and cther related laws and regulations.

(ec) "Porest Plantation" shail refer to 2 forest stand established by planting and/or
seeding in the process of afforestation and reforestation, The stand is either of
introduced species (all planted stands), or an intensively managed stand of any
indigenous species, which meets all the following criteria: one or two species at
plantation, even-aged class, and regular spacing. .

(dd) "Forest Resources” shall refer to all resources whether biomass such as plants
and animals or nion-biomass such as soil, water, scenery, as well as the intangible
services and values present in forestlands or in other Sands devoted for forest purposes.

{ee) "Grazing Land” shail refer to a part of the forestland designated and
managed for the raising of livestock.

(& "Indigenous Cultural Community {CC)" shall refer to a group of people or
tribe of indigenous Filipinos as defined or described under the IPRA Law. As used in
this Act, indigenous cultural community is synonymous with indigenous people.

(gg) “Industrial Forest Management Agreement (FMA)” shall refer to a
production-sharing contract entered into by and between the Department and a
qualified person, whether natural or juridical, wherein the former grants to the latter
the exclusive tight arid responsibility to invest in, develop, manage, and protect a
defined area of the production forestland, including the establishment, management
and utilization of industrial forest plantation, consistent with the principle of
sustainable development, primarily io supply the raw material requirements of wood-
based processing and energy-telated industries and wherein both parties share in the
benelits therefrom.



(hh) “Industrial Forest Piantation or IMP’ shall refer to any tract of either public
ot private lands planted to timber producing epecics, -g rubber and durian trees
and/or non-timber species sach as rattan and bemboo primarily to supply the raw

5 plants, and related

i) "ntegrated Porest-based Indusiey” sholl refer to 2 rationalized forest resource
industry which is characterized by the complementary presence of timber processing
plants (sawmills), plywood and veneer manufacturing plants, particle board and

sboard plants, pulp and paper plants, and other secondary and tertiary wood
processing plants, ete. in major forest resource producing regions, provinces or cities of
the country io ensure optimum efficiency in forest resource

§j) "Integrated Wood Processing Plant” shail refer to a combination of two or more
up-stream wood-based processing facilities such as sawmills, veneer and plywood
plants, or pulp and paper plants, and downstream plants of semi- or completely
manufactured wood products.

(kk) “Joint Venture Agreement" shall refer to an agreement wherein the
government and a qualified person organize a joint-venture company, with both parties
having equity shases, to develop and manage a portion of forestland. Aside from
earnings on the equity, the Government chall be entitled to a share in the output

computed at a certain percentage mutually agreed upon by and beneficidl to both
parties,
(I) "Kaingin’ shall refer to areas inside forestlands tilied or being tilled by upland

dwellers who practice slash-and-burn or shifting cultivation.

{mm) “Managed Forest” shall refer to 2 forestland under a deliberate aystem of
protection, rehabilitation, and development, which include utilization of resources, to
ensure the continuous production of desired forest producis and/or services and the
conservation of soil, water, wildlife, and other natural resources there’

{on) "Multiple Use” shall refer to the harmonized utilization, development, and
management of forestlands for the production cf two or more products, goods and/or
services in conformity with the principle of sustainable development.

(00) "National Park" shall refer to an area of the public domain essentially natural
‘wilderness, scenic, or historic in character which has been withdrawn from settlement,
occupancy, or any form of exploitation exceot in conformity with an approved
management plan and set aside exclusively to conserve the area or preserve the scenery,
the natural and historic objects, wild animals, and plants therein mainly for the purpose
of biodiversity conservation and/ or human enjoyment.

(ep) “Natural Forest” shall refer to forests composed of indigenous trees, not
planted by man, whose structure, functions, and dynamics have been largely the result
of natural succession processes.

(aq) "Non-Government Organization (NGO) shall refer to a nom-stock, non-
profit, and voluntary organization established primarily to provide assistance or
service.

(x) "Pexmit” shail refer to the ge gianted by the government to a person to
‘utilize mited forest and wildlife resources; to undertake specified forestry activity
inside forestlands which may or may not include any tight of possession thereof and
occupation therein; or to establich and operate a plant or mill ie processing timber,
non-tiniber, or other forest products.

(2 "Peraon’ shell zefer to a natural ag well as ji

complement of machinery and equioment, seed in the processing of timber or logs,
oI 33 2 2


other raw wood, non-timber, or other forest products into semi-finished or finished
forms.

(vv) "Production Sharing Agreement” shall refer to a contract between the
government and a person, whether natural or juridical, wherein both parties exercise
the right to manage, develop, and utilize forest resources within a specific area of
production forestlands and period of time with the person providing the financing,
technology, management, personnel, marketing, and other inputs necessary to
implement the agreement and both parties sharing the benefits under the terms and
conditions set forth in said agreement.

(ww) "Protected Areas" shall refer to areas defined and designated as such
pursuant to Republic Act No. 7586 or the NIPAS Act,

(6x) "Reforestation" shell refer to the artificial establishment of forest on lands that
carried forest before.

(yy) "Reservation" shall refer to an area of the public domain reserved by law for a
specific purpose. .

(2) "Rotation" shall refer to the number of years between the initial establishment
ofa plantation and the time when it is considered teady for harvesting.

(aaa) “Secondary growth or residual forest” shall refer either to the vegetation ina
forestland that has been logged-over in the past or whose original forest cover has been
eubstantially or totally removed through logging, mining, forest fire, kaingin, or other
human activity.

(bbb) "Secretary" shail refer to the Secretary of the Department of Environment
and Natural Resources.

(ccc) "Semi-Finished Wood Products" shall refer to wood products requiring final
stages of manufacture and/or assembly such as, but not limited to, window
components, iabletops, veneer and other similar wood product,

(ddd) "Sustainable Development" means meeting the needs of the present
generation without compromising the ability of the future generations to rivet their
own needs.

(eee) "Sustainable Forest Management and Development" shail refer to the process
of conserving, protecting, developing, and utilizing forestiand resources to achieve the
production of desired products or services without impairing the inherent productivity
of the forest thereby ensuring the continuous flow of these products or services,

(ff) “Tenure shall refer to guaranteed peaceful access to and use of specific
forestland area and the resources found therein through an agreement, contract, or
grant which cannot be eltered or abrogated without due process.

(ggg) "Timber Licenee Agreement or TLA" shall refer to a privilege granted by the
State to a person to utilize forest resources within a forestland with the right of
possession and occupation thereof to the exclusion of others except the government, but
with the corresponding obligation to develop, protect, and rehabilitate the same in
accordance with the terms and conditions set forth in the said agreement.

(bhh) "Trade" shall refer to the act of engaging in the exchange, purchase, or sale
of forest products locally or internationally.

ii) "Watershed" shall refer fo a land area drained by a stream or a fixed body of

water and with tribniaries having a common outlet for surface runoff.
“Watershed Reservation” shal! refer to a forestland that has heen proclaimed
by law as such, primarily for water production purposes although other compatible
uses may be allowed by law or by the Secretary under sustainable and muitiple-use
management concepts.

(kick) Wildlife” shall refer to wild forms and varieties of flora and fauna.

(ill) "Wood -Rased Industries" shall refer fo various industries that use wood as the
principal raw material including but not limited to sawmilling, pulp and paper making,
and plywood and veneer manufacturing or the upstream wood-based industries, as



well as the secondary and tertiary wood processing or downstream industry such as
moldings and farniture manufacturing, among ather things.

CHAPTER il
PERMANENT FORESTLANDS

SEC. 4, Permanent Forestlands— The permanent forestlands are those lands of
the public domain classified and delimited by law as forestiands, areas classified as
forestlands under the Department's land classification program, and all unclassified
lands of the public domain.

SEC, 5, Additional Areas to be included as Permanent Forestlands- The
following lands, which may be below eighteen percent (18%) in elope, are needed for
environmental protection and forestry purposes and shal! not therefore be classified as
agricultural ands:

(a) Areas less than two hundred fifty (250) hectares which are far from or not
contiguous with eny certified agricultural lands;

(b) Isolated patches of forest of at least five (5) hectares in area with rocky terrain
ot which protect a spring for communal use;

(c) All mangroves and ewamplands, including, twenty-meter wide strips thereof
facing oceans, lakes and other bodies of water not yet classified as alienable and
disposable lands;

(d) Ridge tops and plateaus regardless of size found within or surrounded
wholly or partially by forestlands where headwaters emanate;

(c) Twenty-meter wide strips of land from the edge of the normal high waterline
of rivers and streams witlr channels of at least five (6) meters wide which are not yet
classified as alienable and disposable;

@® Areas needed for other purposes of public interést such as research or
experimental purposes and others; and, .

(g) Areas considered environmentally critical because of their vulnerability to
damage from landslides, volcanic eruptions, and other natural causes.

‘Owners who have acquired vested rights over Jands enumerated above are
required to implement soi) and water conservation measures, in coordination with the
Department and the appropriate local government unit. An Environmental Compliance
Certificate (ECC) shall be required in these environmentally critical areas én accordance
with existing law: Provided, That the Department or the concerned local government
‘unit (LGU) shall immediately take the necessary steps to expropriate the said property
or cause the cancellation or amendment of any titles issued thereon or impose fines
ander any of the follewring conditions:

(a) Failure of the owner, after due notice, to implement appropriate soil and
water conservation;

(b) Failure of the ownez/s to comply with ECC requirements when required;

(c) The issuance of titles over such ateas was accomplished through fraud, deceit,
misrepresentations or other anomalies; or

(a) When public interest so tequires.

SEC. 6 Sub-Classification of the Permanent Forestlands.. The permanent
forestlands shall be sub-classified into the following categories according to primary
use:

(a) Protection forestiands.- All areas within the forestlands designated or set
aside as such shall constitzie the protection forests. All mossy and primary/virgin
forests and natural beach, mangrove forests, all areas above one thousand (1,000)
meters above sea level, areas above 50% slope, freshwater, swamps, end matshes, all


areas along the bank of rivers and streams, and the shores of the scas and lakes
throughont their entire length and within a zone of three (3) meters in urban axeas,
twenty (20) meters in agricutharal areas, and forty (40) metera in forest areas, along their
margins which are subject to the easement of public use in the interest of recreation,

ion, floatage, fishing and salvage shall also be sub-classified as protection

forests.

(b) Production forestlands- AD forestlands not sub-classified as protection

forestlands defined in this Section shall be sub-classified as production forestlands to be
devoted to the production of timber and/or non-forest products or the establishment of

industrial tree plantations, tree farms, communal forests, agroforestry, grazing, or as
multiple-vse forests including water-based energy areas such as but not limited to
hydro and geothermel-reservations: Provided, That they shall be managed, developed,
and utilized in accordance with a Department-approved management plan based on
sustainable forest management principles: Provided, further, That the cepartment may
change the sub-lassification of specific areas of production forestlands into protection
forestlands and recommend to Congress their establishment as part of the integrated
protected area systems in accordance with the NIPAS Act.

CHAPTER Tit
ADMINISTRATION AND MANAGEMENT Of FORESTLANDS

SHC. 7. Jurisdiction and Control of Forestlands. The Departinent shall be the
primary agency responsible for the conservation, management, end utilization of all
forestlands and the unclassified lands of the public domain. In coordination with LGUs
and other government agerwies, it shall ensure that forestlands and unclassified lands of
the public domain are managed, conserved, developed, utilized, and protected
consistent with the policies and strategies promulgated in this Act. The utilization and
development of forestlands and unclassified lands of the public domain inclading the
natural resources therein shall be undertaken in accordance with Department-approved
management plans: Provided, That the management plan for protection forestlands and
protected areas shall be prepared in accordance with the provisions of the NIPAS Act.

Records pertaining to the specific limits of forestlands shail be made available to
the public upon request. Moreover, the Department shall furnish all provincial,
municipal and city government copies of the maps of permanent forestlands located
within their respective territorial jurisdictions, E

SEC, 8. Participation of LGUs in Forest Management Pursuant to the
pertinent provisions of Republic Act. No. 7160 or the Local Government Code, LGUs
shall share the responsibility in the sustainable management and utilization of forest
resources within their territorial jurisdiction including those assigned by law to other
government agencies. Subject to vested rights, LGUs and the Department, in
consultation with other government agencies, local communities, non-government
organizations, and other sectors shall jointly undertake the preparation of indicative
forestland use and watershed management plans, particularly the identification of
mutltiple-use areas and production forestlands within the territorial jurisdiction of each
LGU which shall be made an integral component of the latter's Comprehengive Land
‘Use Plan (CLUP). The LGUs shall be consulted on all forestry projects to be
implemented in their territorial jurisdiction and shall have equitable share of incomes
derived therefrom. For this purpose, the Department, the Department of Interior and
Local Government (DILG), the leagues of provinces, cities, municipalities, and
bararigays shall formulate a joint strategy and program to implement this provision
within one (1) year from the passage of this Act.


SEC. 9. Forestlands Under Other Government Agencies- Vorestlands and/or
portions thereof which have been assigned by law to the administration and
management of other gevernment agencies for a specific purpose, including those
devolved to the LGUs prior to the passage of this Act, shall remain under the
administration and management of these government agencits which shall be
responsible for their conservation, protection, rehabilitation, and sub-classification into
protection forestland and the specific purpose for which the entive avea has been
avsigned or reserved unless said assignment or reservation is consistent with the use of
such area as protection forestland. The Secretary or a duly authorized representative
shall exercise visitorial powers over these forestlands. Moreover, these forestlands shall
be administered in accordance with a forest management plan, which shall be prepared
by the government agency or concerned LGU in coordination with the Department and
local communities and organizations within one year from the effectivity of this Act:
Provided, That the Department and the LGU or government agency concerned shail
periodically review, monitor, and evaluate the implementation of the said management
plan. Provided, further, ‘That the harvesting of forest resources and building of roads and
other infrastructure therein shall be undertaken only with the prior approval of the
Secretary and after compliance with EIS and ECC requirements: Provided finally, That
the Secretary shall recommend to Congress or the President of the Philippines the
reversion to the Department of the jurisdiction and contro} over forestlands that are no
jonger needed nov used for the purpose by which they have been constituted or in case
the agency or LGU concerned fails to rehabilitate, protect, and conserve the forestland

resources in accordance with the approved management plan. The Department shail
determine the use of the reverted forestlands,

SEC. 10, Forest Resources Within Alienable and Disposable Lands. ~All forest
resources planted or raised within alienable and disposable lends belong to the owner
who shail have the right to sell, contract, convey or ispose of the same without the
necessity of any clearance from the Department. The Department shall encourage and
provide incentives to Jandowners of alienable and disposable lands to develop,
maintain and manage forests on their lands or to develop and maintain a tree plantation
on such lands. Landéwners who register their lands for forestry purposes with the
Department shall be assisted by the Department in the preparation of a management
plan and shall be entitled to appropriate incentives provided under Section 24 herein,
on reforestation in private lands: Provided, That alienable and disposable lands devoted.
to the planting and harvesting of forest resources shall remain subject to the provisions
of Republic Act No. 6657 or the Comprehensive Agrarian Reform Law.

CHAPTER IV
SUSTAINABLE FOREST MANAGEMENT

BEC. 11. Sustainable Forest Management Planning. Subject to vested or priot
rights, the Department, in consultation and coordination with LGUs, other government
agencies, local communities, non-government organizations, individual and ‘corporate
entities, private sectors, and other concerned sectors shall, within one (1) year from the
effectivity of this Act, develop and adopt a sustainable forest management strategy for
each well-defined watershed or other appropriate forest management unit based on
criteria, indicators, and standards for sustainable forest menagement which, at their
minimum, address the following requirements:

a) Rational allocation of forestland uses and promotion of land use practices that
increase productivity and conserve soil, water, and other foresiland resources;

b) Protection of existing forest resources and conservation of biodiversity;


©) Rehabilitation or development of denuded areas to expand the forest resource
base and promote food production activities;

d) Enhancement of the socio-economic well-being of local communities including
indigenous peoples who are largely dependent on the forest for their livelihood;

e) Promotion of closer coordination between and among the Department, L.GUs,
other national agencies, non-government organizations, local communities, the private
sector and other entities in the sustainable management of feresilands;

1) Adoption of community-based forest management as a principal strategy in
the management of forestlands and rescureea; and

g) Integration of forest management plans at the Barangay or community level
to the CLUPs of cities and municipelities, including the adoption of effective impact
monitoring system of forest management programs,

SHC. 12, Watershed Management Strategy The Department shall adopt a
Watershed and Ecosystems Planning Framework in Environment and Natural
Resources Management. The strategy for improved watershed resources management
shall be demand-driven, community-based, and multiple and sustainable use
considering national priorities. and concerns of local stakeholders. Watershed
management programs shall be guided by ecological, socio-cultural, economic, and
institutional sustainability principles. A National Watershed Information System shall
be developed to guide policy formulation, program development, and implementation
of watershed management initiatives.

SEC. 13, Priority Watersheds. A system of prioritization of watersheds shall be
pursued considering the following: 2) water supply for domestic, irrigation, power,
industrial, and’ commercial use; b) contribution to the economy; ¢) biodiversity and
environmental enhancement; d) cultural and historical value; and e) effect on
downstream areas.

SEC, 14, Forest Resource Database and Monitoring System. - The Department
shall establish a forestland resource database which shall consist of a comprehensive
up-to-date information on the physical, social, economic, biological, and environmental
components of the country's forestlands and shall include a log control monitoring or
timber identification systerh to enable the Department and its field offices to track the
movement or transfer of timber and other forest products from a forestland source io
their end users. The Department shall conduct and/or update forest resource inventory
at least once every five (8) years to ensure effective managesnent. 5

SUC. 15. Environmental Impact Assessment, Monitoring, and Accounting. All
new critical projects to be implemented in forestlands such as harvesting, grazing and
other special uses, mineral prospecting and exploration, road, infrastructure, and mill
construction shall be subject to Hnvironmental Impact Assessment (E(A) in accorclance
with Presidential Decree Ne. 1151 or the Philippine Environmental Policy, and
Presidential Decree No. 1586, Esiablishing an Environmental impact Statement System.
‘The Department shall design and implement a sysiem of environmental monitoring and
evaluation system as well as environmental and natural resources accounting for
various forestry management plans and projects.

CHAPTER Y
COMMUNITY-BASED FOREST MANAGEMENT

BEC. 16, Community-Based Forest Management Strategy (CBFMS)- Whenever
they ate present, forest resident families, communities, and indigenous peoples whose


lives, cultures, and general well-being are intimately linked with the foresta, shall be
given priority access to forest resources and shall be entrusted with the responsibility to
protect, manage, develop, and utilize said forest resources under the principle of
stewardship. The Department shall develop policies, criteria, guidelines, and tenutial
instruments that will simplify, facilitate, and allow access of forest resident families,
local communities, and indigenous peoples to forestland resouzces. The Department
shall furthermore develop policies, guidelines and incentives for private sector
investors to enter info mutually beneficial relationships with forest-basec! communities
‘in pursuit of CBFMS on a sustainable forest management basis.

SEC. 17, Avens Available for CBFM. ~ Subject to vested or prior rights, CHFM
may be implemented in ali appropriate public forestlands, including ancestral domains
of ICCs, The Secretary may also allow CBFM in watershed reservations to promote
their protection and rehabilitation: Provided, however, That the land-use practices and
activities therein are in accordance with a management plan duly approved by the
Secretary and would not intiuce severe soil erosion and surface run-off Provided, further,
‘That no CBPM agreement shall be issued over areas or portions thereof covered by
ancesiral domain titles without the prior informed consent of the concerned indigenous
cultural comununity.

BEC. 18, Community Resource Management in CBYM Areas. - ‘The management
of forestland resources in CBEM areas shall be embodied in a community reeource
management plan, which shall contain the community's vision, aspirations, and
strategies in the management of forestland resources. The Department, LGUs, other
government agencies, non-government organizations, private companies, individuals,
and other sectors concerned shal! provide these communities with appropriate long-
term security of tenure, technical, managerial and financial assistance, training; and
other assistance, as the case may be, to empower them to manage and benefit from the
forestland resources on a sustainable basis.

SEC. 19, Qualified Participants. Organized forest communities shall be given
priority to participate in the CBFM program. Indigenous peoples shall also be
encouraged to actively participate in the implementation of CBIM activities in
recognition of their rights td their ancestral domains and lands.

Organizations eligible to participate in CBFM shall have tHe following
qualifications:

a. Members shail be Filipino citizens; and

‘b. Members shall be any of the following:

4. Actually tiiking portions of the area to be awarded;

2. Traditionally utilizing the resource for all or a substantial portion of
their livelihood; or

3. Actually residing within or adjacent to the areas to be awarded.

SEC. 20, Recognition and Management of Ancestral Domains. - The recognition,
ownership, and management of ancestral lands and domains shall be governed by the
provisions of the IPRA but any project of a holder of a Certificate of Ancestral Domain
‘Title or any stich similar instrument to develop or use forestlands or forest resources
therein that would result in severe soil erosion or environmental degradation shall be
subject to the provisions of fnvironmenial Impact Assessment (RIA) in accordance with
Presidential Decree No. 1181 or the Philippine Environmental Policy, and Presidential
Decree No, 1586, Establishing an Environmental Impact Statement System, and this Act
‘The National Commission’ on Indigenous Peoples (NCIP) shall coordinate with the


Departinent in providing assistance to the indigenous peoples in the sinmeiael
management of forest resources within ancestral lands and domains.

CHAPTER VI
REFORES' TATION AND RESTORATION PROGRAM

SEC. 21, Reforestation in Protection Forestiands. - The reforestation of all
critical, denuded, and degraded forests within protection forestland not otherwise
covered by the CBFM program shall be given top priority and shall be vigorously
pursued by the Department consistent with the NiPAS Act and the strategies and
amanagement plans therefor. The use of endemic species in the restoration program for
protection forests shall be given primary consideration to enhance the biological
diversity of the area.

‘The Department, in coordination with LGUs, other government agencies, NGOs,
local residents and communities, and other sectors concerned, shall identify and
prioritize forestlands to be reforested. An accelerated reforestation program in such
identified priority protection forestlands shall he undertaken to zaise the foyest cover
therein to at least fifty percent (50%) within five (5) years, and to at Jeast eighty percent
(0%) within ten (10) years from the effectivity of this Act. The Department shall allot
funds to effectively accomplish reforestation either by ite own or through contract in
protection forestland. The Department or other agencies responsible for reforestation
shall give priority to locel communities in the granting of techmical and financial
assistance for reforestation activities. No commercial catting, harvesting, or logging of
Himber or gathering of forest products shal! be allowed in protection forestlands.

SEC. 22. Reforestation or Forest Plantation Development in Production
Forestiands.- In accordance with Section £0 herein, on modes of forest management
agreement, the State through the Department may enter into joint venture, co-
production, or production sharing agreement with qualified forest community
organizations, local government units, government-owned or controlled corporations,
private companies, individuals, and other interested parties concerned in the
development of forest plantations in production forestlands: Provided, however, That
endangered forests found inside production forestlands, as categorized in Section 6(b),
herein and residual forests, unless in degraded condition as determined by the
Department, shall not be converted into forest plantations,

SEC. 23. Reforestation i Forestlands under the Jurisdiction of Other
Government Agencies. Goveenment agencies and institutions having management
control over forestlands pursuant to a law or grant ghall be responsible for the
reforestation of denuded and degraded portions of such forestlands. The reforestation
program of these agencies shall aim to increase the vegetation of the degraded areas, to
be identified jointly by the Department and agency concerned, by fifty percent (50%)
within the first five (5) years and at least eighty pescent (80%) within ten (10) years frorn
the effectivity of this Act: The Depariment shail provide the reforestation plan, ratio of
forested areas at any given time, and technical assistance upon request by the concerned
agencies. Tailure to reforest denuded and/or degraded forestiand identified in the
reforestation plan within the period herein prescribed shall be sufficient ground to
request for reversion of the said forestlands to the jurisdiction and control of the
Department. Provided, however, That in arees where CBFMS shall be implemented ov
where there are existing facilities for basic services such as water and power as allowed
by the Department pursuant to Section 49 hereof, the completion of the reforestation
‘program shall be subject to the conditions provided in the tenurial document to be



awarded by the Department and the agency concerned to the participating local
comerunity or individual or in the Fores: Management Agreement of contractors
operating such facilities for basic services, as approved by the Department,

SEC. 24, Reforestation in Alienable and Disposable Lande or Private Lands.
Reforestation or the establishment of tree farms or forest plantations in private lands
shall be encouraged: Provided, That such private lands and other alienable and
disposable lands are not prime agricaltaral lands 2s determined or certified by the
Department of Agriculture (DA). The private landowner(s) shall also be entitled to the
incentives provided for under Section 25 herein, particularly subsections (a), (b), (c), (2),
and (e): Provided, That such private forest plantations are duly registered with the
Department.

SEC. 25. Incentives. To encourage qualified persons to engage in forest
plantation activities, the following incentives shall be granted, in addition to those
already provided by existing lawe:

a. The agreement holder shall not be subject to any obligation prescribed or
arising out of the provisions of the National Internal Revenue Code on withholding tax
at source on interest paid on a loan/s incurred for the development of forest plantation;

b. Amounts expended by the agreement holder in the development and
operation of a forest plantation prior io the commercial harvest shall be regarded as
ordinary and necessary expenses or as capital expenditure;

¢. The Board of Investments (BO!) shall classify forest plantations as pioneer and
preferred areas of investment under its annual priority plan subject to the rules and
regulations of the said Board;

d. The agreement holder shall be given priority to access credit assistance being
granted by Government-owned, -controlled and/or -supported financial institutions;

e. Upon the premature termination of the agreement at no fault of the holder, all
depreciable permanent and semi-permanent improvernents such as roads, buildings,
and nurseries including the planted and standing trees and other forest crops
introduced and to be retained in the area shall be properly evaluated and the holder
shall be entitled to a fair compensation thereof, the amount of which shall be mutually
agreed upon by both the Department and the agreement holder, and in case of
disagreement between them, by arbitration through a mutually acceptable and
impartial third party adjudicator; :

£ No contract or agreement shail be terminated except for cause or for reason of
public interest and only after due process; and

g The agreement holder has the right to transfer, contract, sell, or convey his
tights to any qualified person following the guidelines to be iaswed by the Secretary.

The Secretary may provide or recommend to the President or to Congress other
incentives in addition to those granted herein and in exieting laws in order to promote
reforestation and the establishment of forest plantations,

BEC. 26, Voluntary Offer to Reforest.- Private landowners, whether natural ot
juridical ‘persons, may pacticipate in reforestation and plantation development or
similar programs of the Department, with the landowner contributing his land and the
Depattment furnishing fumde to reforest the ctea on a co-production agreement:
Provided, That the property shall be exclusively devoted to the planting of forest species
for at least one {1) rotation, which undertaking shall be annotated at the back of the title
of the property: Provided, further, That prime agricultural lande as determined or
certified by the DA shall not be the subject of a voluntary offer to reforest.


CHAPTER VIL
URBAN FORESTRY

SRC. 27, Establishment of City or Municipal Parks or Communal Forest. Bvery
city or municipality shall establish a city or municipal park or communal forest and
shall include in its yearly budget the necessary funds for its establishment and
maintenance, Upon request by a city or municipality concerned, the Department shall
set aside an appropriate area of the public forestlands as city or municipal park ot
communal forest and shall provide technical assistance to the local government
concerned in the development of the park or comznunal forest.

SEC. 28, Establishment of Tree Paris in Subdlvision and Tree Planting on
Roadsides.- Every subdivision project to be developed after the passage of this Act
shall include the establishment of a tree park of not less than fifty percent (50%) of the
required total open spaces as provided in Section 2 of Presidential Decree No. 953,
requiring the planting of trees in certain places, Guidelines for the establishment of tree
parks within a subdivision shall be prepared jointly by the subdivision owner
concerned, the Housing and Land Use Regulatory Board (HLURB) and the Department.
‘The subdivision owner shall provide the funds for this purpose. For every major public
road or ierigation construction project, the Department of Public Works and Highways
(DPWAH) ofall include the planting and maintenance of trees along the road /highway
or irrigation canola as Jandscaped rest areas every twenty-five (25) kilometers thereof
and shall provide adequate funds for this purpose. Each city and municipality shall
also allocate adequate funde for the planting, care, and maintenance of trees or

perennial shrubs in "greenbelts' or "green apeces" such as road/street sides, center
islands, etc.

CHAPTER VIC .
FOREST PROTECTION

SEC. 29. Commercial Logging Ban There shall be a permanent ban on
commercial logging activities in all protection forestlands defined, categorized, and sub-
classified in Section 6(a) herein. No licenses, permits, or agreements to cut ahy timber
therein shall be issued.

Protection forestlands found inside an agreement or licensed area shali be
excluded from any logging operation and the holder of the agreement or license shall
establish a buffer zone and, delineate their boundaries with the production forestlands,
marking the same with concrete monuments, road, or infrastracture, or any other
visible, permanent, and practicable signs. Pending the constitution of a Protected Area
Management Board (PAMB) pursuant to the NIPAS Act, the agreement- or license
holders shall protect and conserve such protection forestland following 2 plan
approved by the Department. ‘The agreement- or license-holder concerned shail be
accountable for the destruction of such protection forestlands that did not result from
(force majeure, and such destruction shali serve as basis, in addition to the other
violations enumerated in Section 86 hereof, transitory provision, for the termination of
the agreement, license, or permit, and the filing of proper charges under the NIPAS Act
and pertinent forestry laws, rules and regulations, In the absence of a contractor or
agreement holder over such production forestlands, the delineation of said boundary
shali be wadertaken and prioritized by the Department.

To ensure the conservation and sustainable use of forest resources, holdere of
timber licenses, leases, and permits shall submit to the Department an Integrated
Operations Plan (IOP) containing strict environmental guidelines such as ECC
compliance. All forest development activities such as logging, reforestation, timber


stand improvement, forest protection, and delivery of community service within an
area covered by timber concessions shall be consolidated under the JOP, which shal! be
prepared by or under the supervision of an accredited private registered forester whose
signature and dry seal shall appear in the plan and the supporting documents
submitted for the purpose.

Upon its expiration or termination for cause, no extension shall be made on any
TLA and the area covered by the agreement shall be sub-classified as protection
forestland after the Department had excluded degraded areas that may be subject of a
reforestation project.

SEC. 30. Assistance of Law Enforcement Agencies.. The Department may call
upon law enforcement agencies and instrumentalities of the Government such as the
Philippine National Police (PNP), the Armed Forces of the Philippines (AFF), and the
National Bureau of Investigation (NBI) for the enforcement of the logging ban in all
protection forestlands and for the protection and conservation of forests. The assistance
of LGUs, NGOs, citizen groups, and community organizations may also be utilized for
the same purpose.

‘The Secretary of Justice shall designate in every city and province a special
prosecutor who shall immediately file charges against forest violators to ensure their
speedy prosecution.

SEC. 31. Role of LGUs and Local Residents. \t shail be incumbent upon LGUs
concerned to render assistance in protecting and conserving forestlands within their
respeciive territorial jorisdiction. Qualified local residents shall be deputized by the
Department to assist in the drive against illegal logging, kaingin-making and forestland
occupation. These deputized residents shall likewise be authorized to arrest forest
violators within their communities subject to existing laws and regudations on arrest
and detention. .

SEC. 32. Prevention of Forest Fires and Control of Forest Ps and Diseases.-
In collaboration with concerned LGUs, the Department shall formulate and implement
a fire prevention and control program, providing incentives to LGUs, community
organizations, or individuals who participate in preventing and controlling forest or

ass fire.

eee the Department shall likewise formulate and implement 2 national integrated
forest pest and disease management program including quarantine procedures for
imported seeds, plants, atl plant products as well as wildlife to prevent or control
forest or wildlife pests and diseases.

SEC. 33. Information and Rewards System,- The Department shell establish an
information and rewards system a5 part of the community's participation in the
protection of forest resources. The rewards shell be payable immediately upon the
establishment of prima facie proof of violation. When ah information given leads to the
seizure of logs or timber and other forest product and results in a conviction, the
informer shall algo be entitled to twenty percent (20%) of the gross value of the
recovered or seized forest resource.

CHAPTER IX
FORESTRY RESEARCH, EDUCATION, TRAINING
AND EXTENSION

SEC. 34, Research and Technology Development Transfer- Research and
technology development transfer shail be strengthened to support sustainable
management of forest resources, The Department, the Department of Science and


Technology (DOST), the Commission on Higher Education (CHED), and the colleges of
forestry of State univereities shall, within one (1) year from the passage of this Act,
prepare a comprehensive national forestry and environmental research and technology
development and transfer program in furtherance of sustainable forest management
which hall be implemented, monitored, and reviewed in accordance with existing
research management systems, Adequate and sustainable funds to implement research
and technology development plans and transfer program shall be provided by each of
the aforementioned agencies and institutions under the General Appropriations Act.

SEC. 35, Public Information, Education and Adoocacy Campaign With the
support from LGUs, NGOs, media and other organizations, the Department, the
Philippine Information Agency (P1A), the Department of Education (DepRd), CHED,
State-owned and private universities and colleges shall formulate and implement a
nationwide program for sustained public information and advocacy campaign for forest
and natural resources conservation and sustainable forest development and
management. ‘the Deplid shall include subjecte on forest and natural resources in the
curricula for elemertary and high school education. The CHED shall likewise include
ecology and environment courses in the general education curricula. Congyess shall
allocate funds to the Deparimont for the purpose of coordinating 2 systematic campaign
to promote community ecological awareness, including the preparation of
informational and educational materials therefor.

SEC. 36, Formal Forestry Education ‘The CHIED, in collaboration with the
Department, the Board of Bxaminers for Foresters of the Professional Regulations
‘Commission (PRC), and the duly accredited national professional foresters organization
shall actively pursue the rationalization of formal forestry education and the
establishment of centers of excellence in forestry and environmental edacation to ensare
high quality manpower output to meet the needs of the forestry sector.

SEC. 97, Continuing Education on Forestry A non-formal program of
continuing education shall be established to maintain the growth of the forestry
professton. ‘The PRC Board of Examiners for Forestera and the Civil Service
Commission (CSC) shall provide the guidelines for a program in continuing education
in forestry. In cooperation with academic institutions, the Department shall develop the
infrastructures to institztionalize non-formal continuing education for the forestry
sector.

SHC. 38. ‘Training Centers.~ In coordination with TESDA, DepEd, CHED and
State universities and colleges (SUCs), the Department shall establish and
institutionalize a network of training centers in strategic paris of the country to provide
reguiar anc up-to-date training on the various aspects of sustainable forest
management, development, and utilization to forest officers, LGUs, NGOs, local
conununities, and indigenous peoples. Furthermore, the Department shall ensure that
personnel appointed to critica and sensitive positions undergo training to prepare them
to discharge their duties and responsibilities professionally, efficiently and effectively.

SEC. 39. Forestry Development Center~ The Forestry Development Center
(EDC) based in the College of Forestry and Natural Resources, University of the
Philippines at Los Bafios, shall continue to serve as the primary policy research and
development center for forestry and natural resources management, ‘The FDC shail
perform its functions in close coordination with the Depariment and other policy
research institutions in the country. It shall assist the Department in the formulation,


review, and evaluation of proposed and existing policies on forestey and natural
resources management.

CHAPTER X
DISPOSITION AND UTHIZATION OF FOREST RESOURCES

SEC, 40, Modes of Forest Management Agreement- The development,
utilization, and management of forestlands and/or forest resources shall be undertaken
under the full control and supervision of the State through the Department. The State
may directly undertake such activities or it may enter inte co-production, joint venture
or production charing agreement with qualified Filipino citizens or corporations or
associations, subject to relevant laws, rules and regulations; Provided, That interested
local communities and indigenous peoples through their organized and duly
recognized associations shall be given priority in the grant of appropriate tenurial
instruments implementing the said agreements. Such tenurial instruments and/or
agreements shall have a duration of twenty-five (25) years, renewable for another
twenty-five (25) years, ander such terms and conditions as may be provided by the
Secretary: Provided, firrther, That such tenurial instruments and/or agreements may not
be terminated except for cause or if public interest so requires,

Current valid and subsisting licenses, contracts, or agreements granted by the
government for the development, management, and utilization of forest resources shail
be allowed to continue under the same terms and conditions atil their expiry, or prior
to-their expiry shall be allowed to be converted into any mode authorized herein under
the guidelines promulgated by the Secretary: Provided, That no such conversion shall be

allowed! in protection forestlands as defined in Section 6 herein, on sub-classification of
forestlands,

The Department is hereby authorized to formulate rales and regulations

covering the relevant terms and conditions thereof including the determination and
collection of the government share, subject to the approval of Congress.

For watersheds and other areas where existing facilities for basic services such as
water and power are located, the Department may enter into a forest maiiagement
agreement with the service contractor in the area, Such agreement shail have a duration
of twenty-five (25) years, renewable for another twenty-five (25) years, under such
terms and conditions agreed upon by both parties: Provided, That such agreement may
niot be terminated except for cause or if public interest so requires or upon mutual
agreement by the parties.

SEC. 41, Transfer» No holder of a co-production, joint venture, or production
sharing agreement or contract sHall sub-contract, transfer, exchange, sell or convey the
same or any of his sight or interests therein without a written authority from the
Secretary. Moreover, no transfer shall be authorized unless the agreement or contract
has been in existence and active for at least three consecutive years from issuance
thereof: Provided, That the transferor has faithfully complied with the terms and
conditions of the said agreement or contract; the transferee has ali the qualifications and
none of the disqualifications to hold the same; and the transferee shail assume the
obligations of the transferor. Failure to comply with these conditions shail be sufficient
cause for the cancellation of the agreement or coniract.

SEC. 42. Non-timber Forest Products Raitan, bamboos, vines, herby; exudates
and other non-timber forest products are integral parts of the forest ecosystem. The


establishment of plantations of non-timber producing species shall be encouraged and
supported. The development, management and utilization of nor-timber forest
products shall be allowed in accordance with the gnidelines to be promulgated by the
Department. However, in granting permits to harvest or utilize non-timber forest
products in their natura! or original state from production forestlands, priority shall be
given to forest resident families, local communities, and indigenous peoples living
nearest the eubject forestlands,

SHC, 43. Grazing... The Department shall identify and delimit areas in the
production forestland suitable for geazing purposes: Provided, That no forestland fifty
percent (50%) in slope or over may be utilized for graving purposes: Provided, further,
‘That existing pasture lease agreements or forestland grazing lease agreements shall be
allowed to continue under the same terms and conditions until their expiry: Provided,
finally, That. abandoned or idle, expired, or cancelled grazing or pastuse lands shall be
subject to land use capability assessment to determine their best use or combination af
uses, No new grazing or pasture permit, lease, or cont-act shall be issued, nor existing
ones allowed ts continue unless covered by existing rules and regulations governing
the Philippine BIS System.

SEC. 44, Mining and Power Generation Operations in Torestlande. Forest
resources insicle mineral lands are under the Department's jurisdiction, and thelr
management and utilization are subject to the provisions of this Act. Power generation
and small-scale mining operations in forestlands may be allowed subject to existing
rales and regulations governing the Philippine EIS System.

SEC. 48, Roads and Other Infrastructures. Roads and other infrastructure
including the development of mineral reservations and energy resources inside
forestlands shall be constructed with the least impairment to the resource values found
in such forestlands. Government agencies and their contractors undertaking the
construction of roads, bridges, communication and other infrastructure facilities and
installations inside forestlands chal seek prior authority from the Department and shall
comply with existing rules and regulations governing the Philippine EIS System,

CHAPTER XI
FOREST-BASED INDUSTRIES .

SEC. 46, Establishment and Operations of Forest-Based Insustries.- ‘To meet the
demands for forest-based goods and services of a growing population the State through
the Department shall promote the establishment, operations, and development of
forest-based industries.

SEC. 47, Incentives for Yorest-Based Industries To enable forest-based
industries to be more efficient, competitive, and economically viable, the following
incentives are hereby granted in addition to those already provided by existing laws:

a, Ail processing planta or mills shall be assured of their supply of raw materials,
preferably bat not exclusively from local sources;

b, All processing plants or mills shall be granted operating permits for five (6)
years renewable for another five (5) years: Provided, That permits for processing plants
‘owned or operated by holders of forest management agreements or contracts shall be
co-terminus with said agreements or contracts; and

c. The Department shall promote and strengthen the linkages among corporate,
family-based, and community-based industries.


‘The Department may provide on its own or propose to the President or to
‘Congress, other incentives to encourage the establishment and development of
integrated forest-based, particularly wood-based planis, Warranties to and agreements
with existing integrated forest-based plants to ensure the availability of raw materials
shall be automatically extended for 2s long as such integrated plants are operating.
‘Agreements ot licenses over forest areas granted to wood-based plants shall be
converted into any mode atithorized in this Act. Expansion in capacity of wood-based
plants shall be encouraged and the same shall be given priority access to production
forestlands and other areas available for development as source of raw materials. Any
order suspending or canceling a contract or permit pertaining to the development and
operation of an integrated forest-based or wood-based plant including its access to
production forestlands shall take effect only upon prior consultation with: the
Congressional Oversight Committee established pursuant to this Act.

SEC. 48, Export anil Sale of Locally Produced Wood Products. Logs derived
from natural grown trees of whatever species cut, gathered, or removed frora the local
nataral forest and raw or rough lumber manufactured from such logs shall not be
exported. Only finished and semi-finished lumber products, wood manufactures,
‘wood panels, and other finished wood products from such logs may be exported.

Logs, lumber and other finished products from forest plantations shall be
exported only under such guidelines as the Secretary may promulgats,

No person shail sell or offer for sale amy Jog, lumber, veneer, plywood or other
manufactured wood products in the international or domestic market without
complying with the gradinig rules established or to be established by the government.
Failare to adheve to the established grading rules and standards, or any act of
falsification on the volume of logs, lumber, veneer, plywood or other wood products
sold in the inteznational or domestic market shall be sufficient catise for the cancellation
of export license, wood processing permit, or other license or permit authorizing the
manufacture or sale of such products.

SEC. 49, Importation and Sale of Logs and Other Forest and Wood Products.-

JLogs, lumber, and other forest- and wood-based products may be imported to the
country subject to the authorization of the Secretary and to the tariff and duties under
Presidential Decree No-i464 as well as quarantine regulations. Any product
roanufactued or remanufactured out of imported forest and wood materiale shall be
allowed to be sold in the domestic or international market: Provided, That the grading
rules and standards therefor are complied with, otherwise the sanctions in Section 48
hereof shall be imposed,

CHAPTER XI
FOREST CHARGES, FEES AND RENTALS

SEC. 50. Fees and Rentale for the Utilization, Exploitation, Occupation,
Possession of, and Activities within Forestiands.- Subject to the approval of Congress,
the Department shall prescribe appropriate fees and rentals for the different kinds of
utilization, exploitation, occupation, possession, or activities within forestlands:
Provided, That payment of or collection of such fees and rentals shall be waived for
parties/industries mandated by law to manage, conserve, develop’ and protect
forestiands and forest resources found therein, except administrative fees for the filing
and processing of applications for the issuance end renewal of licenses, permits, and
agreements: Provided, further, That watershed administrators and/or service contractors
that have forest management agreements with the Department as provided for under



Section 40 of this Act shall also be entitled to the waiver of fees, except administrative
fees,

‘The Department shall recommend to Congress appropriate and equitable fees for
the use of water and forest for power generation, izrigation, domestic and industrial,
and fer carbon sequestretian and biodiversity benefits respectively, by
parties/ industries concerned,

SEC. 81. Forest Charges. There shall be collected charges on each cubic meter of
timber cut in forestland, whether belonging to the first, second, third or fourth group,
twenty-five percent (25%) of the actual FOS market price based on species and gracling:
Provided, however, That, in the case of pulpwood and matchwood cut in forestland,
forest charges on each cubic meter shall be ten percent (10%) of the actual FOB market
price.

SEC. 52. Charges on Flrewood, Branches, and Other Recoverable Wood Wastes
of Timber.- Except for all mangrove species whose cutting shall be banned, there shall
be collected forest charges of Ten pesos (10.00) on each cubic meter of firewood cut in
forestland, branches and other recoverable wood wastes of timber, such as timber ends,
tops and stumps, when used as raw materials for the manufacture of finished products.

Only third or fourth group wood can be taken for fizewood. However, if jointly
authorized by the Secretaries of both the Department of Environment and Natural
Resources and the Department of Agriculture, fixst and second group woods may be
removed for firewood peponen from jand which is more valuable for agriculturas than
for forest purposes.

SEC. 53. Charges on Minor Forest Products All other forest products of
forestland which are not covered by the preceding section shall be exempt from any or
all forest charges, except rattans, gums and resins, beeswax, gutapercha, almaciga resin
and bamboo which shali be charged at ten percent (10%) of the actual FOB market price.

SEC, 54, Determination of Market Price of Forest Products.- The actual FOR
market price of forest products shall be jastly determined once a year by the Secretary:
Provided, That he or she shall cause the creation of a committee to be composed of
representatives of the Department, the National Economic and Developmerit Authority,
the Department of Trade and Industry, the Bureau of Internal Revenue and the wood
and furniture industry and consumers sectors which shail formulate the criteria and/or
guidelines in the determination of the actual FOB market price to be used as the basis
for the assessment of the ad valorem tax, taking into consideration production cost
{developing cost, contingencies, and miscellaneous cost), species and grade of timber,
government share, reforestation, tariff duties, taxes, risk involved, and a reasonable
‘margin of profit for domestic and export market prices for wood and wood products,

‘These forest charges shall be applied to naturally growing timber and forest
products gathered within public forestlands, alienable and disposable lands, and
private lands. Forest charges collected shall be in Hen of the administrative charge on
environment and other fees and charges imposed thereon: Provided, That planted trees
and other forest products harvested from industrial troe plantations and private lands
covered by existing tiller or by approved land application are exempted from payment
of forest charges.

‘The duties incident to the measuring of forest products and the invoicing and
collection of the charges thereon shail be discharged by the Forest Management Burean


under regulations of the Secretary, who shall likewise provide for the time, marmer, and
place of payment of such charges,

SEC, 55, Fees for Administrative Seroices Rendered by the Department. Fees
shall be collected for various services rendered by personnel of the Department in
connection with their duties and responsibilities as may be requested by interested
parties, including but not limited, to surveying, rapping and other similar service
activities: Provided, That administrative fees chall be waived for services rendered to
local communities or indigenovs peoples in the preparation of their management plans.

CHAPTER XE
APPROPRIATIONS AND FINANCIAL SUPPORT

SEC. 56. Appropriations. The Secretary of the Department of Environment and
Natural Resources shall inchide in the Department's program and issue such rules and
regulations for the implementation of the provisions of this Act, the initial funding of
which shall be charged against the current year's appropriations of the Department and
thereafter included in the annua! General Appropriations Act. For local government
units, the funding requirements shall be taken from their internal revenue allotment
(IRA) and other LGU income.

SEC. 87. Sustainable Forestry Development Fund~ A Sustainable Forestry
Development Fund (SFDF) to be administered by the Department as a special account
in the national treasury is"hereby established to provide sustainable funds for forest
protection, reforestation, and forest development and management, including
rehabilitation and preservation of watershed areas, CBFM program, information and
educational campaign as well as scholarship programs and policy zesearch, At least
thirty percent (30%) of the forest charges and government ‘share in all products
removed from the forestlands, rentals, proceeds from sales of confiscated forest
products including conveyences, fines and penalties, and administrative fees collected
shall be set aside for the buildup of the SFDF, The fund may be augmented by grants,
dona‘ions, endowment from various sources, domestic or foreign for purposes related
to their functions.

Disbursements from the fund shall be subject to the usual accounting and
budgeting rules and regulations: Provided, That no amount shalll be disbursed to cover
the operating expenses of the Department and other concerned agencies.

A trust fund committee, composed of the Secretary as Chair and the Secretary of
the Department of Budget and Management, the DILG Secretary, and the National
‘Treasurer or their representatives shall sit as members and manage the SFDE, with the
forest Management Bureau as secretariat.

. CHAPTER XIV
CRIMINAL OFFENSES AND PENALTIES

SEC. 58, Harvesting, Gathering and/or Collecting Timber or Other Forest
Products Without Asthority Any person who chell harvest, cut, gather, collect, or
remove timber or other forest products from any forestland, or timber from natural
forest inside alienable and disposable public land except as provided in Section 10
hereof, on Sorest resources in alienabie and disposable lands, without authority from the
Secretary or found to possess’ the same without pertinent required legal documents
shall be punished by imprisonment ranging from prision mayor minimum period to
reclusion imporal minimum period and/or a fine equivalent to ten (30) times the value
of the said forest product but not less than fifty thousand pesos (P50,000.00): Provided,


‘That in the case of partnerships, associations or corpotations, the president, managing
partner; and general manager shall be held liable, and if such officer is an alien, he shall,
in addition to the penalty, be deported without farther proceedings on the part of the
Bureau of Immigration and Deportation. Offenders who are public officials shall be
deemed automatically dismissed from office end permanently disqualified from
holding any elective or appointive position.

All timber or any forest products cut, gathered, collected, removed, or possessed
and all the conveyances, machinery, equipment, implements, work animals, and tools
used in connection with this violation shall be seized and confiscated in favor of the
government.

SEC. 59, IMlegal Cutting as an Act of Economic Sabotage. Any of the acts
enumerated in the preceding section committed by an armed group or by any group,
through organized and systematic manner, for commercial purposes, shall be
consicleced an act of economic sabotage punishable by reclusion perpetua.

‘The commission of any of the prohibited acts by two or more individuals with or
without the aid of any mechanical device shall constitute a prima facie evidence that the
act is organized and aystematic,

Any licensed timber concessionaire who shal! buy logs from unlicensed loggers
or loggers operating without permits shall be considered in violation of this Act and,
upon conviction, shall also be punished with reclusion perpetua.

SEC, 60. Use of Megally Cut Timber in Government Infrastructure Projects.
Contractors of government infrastructure projects are hereby required to obtain
certification from the Department that the loge or lumber to be used therein were
obtained from legitimate sources. The use of illegally cut naturally grown timber in
government infrastructure projécts shall be sufficient cause for the imposition of
penalties provided in Section 58, on harvesting of forest products without authority,
and Section $9, on iliegal cutting as an economic sabotage, including the withholding of
the payment to the contractor.

SHC. 61. Damage to Resisual Trees To eneure the sustainability of the natural
forests, adequate number of residaal trees shall be marked, to be retained as part of the
managed forests and as the future timber crop, before any harvesting operation shall
commence, Any marked residual tree that is damaged during such operation is subject
toa fine equivalent to four (d) times the regular forest charges.

SEC. 62. Grazing Livestock on Forestlande Without a Permit. Any person
found to have caused the grazing of livestock in forestlands and grazing lands without
an authority under a lease or permit to graze, upon conviction, shall be penalized with
imprisonment of not less than two (2) years nor more than four (4) years and a fine
equivalent to ten times the regular rentals due in addition te confiscation of the
livestock and all improvements introduced in the area in favor of the government:
Provided, That in cage the offender is a corporation, partnetship, or aesociation, the
officer or director thereof who directly caused or ordered such shall be liable, In case
the offender is a public officer or employee, he shall, in addition to the above penaities,
be deemed automatically dismissed from office and permanently disqualified from
holding any elective or appointive position in the government service.

SEC, 63. Lnlazoful Occupation or Destruction of Forestlands- Any person who,
without authority from the Secretary, onters and cecupies or possesses, or makes
‘kaingin for his own private use or for others, any forestland or grazing land, or in any
mmanner destroys such forestland or part thereof, or causes any damage to the timber



stands and other forest product found therein, or assisis, aids or abels another person to
do so, or sets a fire, or negligently permits a fire to be set therein, or refuses lawful
orders to vacate the area when ordered to do so shall, upon conviction, be punished
with penalties in the atnount of not less than Twenty thousand pesos (P20,000.00) nor
more than One hundred thousand pesos (P100,000.00) and imprisonment of not less
than two (2) years nor more thant six (6) years for each offense: Provided, That in the case
of an offendér found guilty of making kaingin, the penalty shall be imprisonment of not
less than ten (10) years noz more, than twelve (12) years and a fine equivalent to eight
times the zegular forest charges due on the forest products destroyed without prejudice
to payment of the fl} cost of rehabilitation of the occupied areas as determined by the
Department: Provided, further, That the maximum of the penalty prescribed herein shall
bbe imposed upon the offender who repeats the same offense, and double the maximum,
penalty upon the offender who commits the same offense for the third dime or more.

Inall cases, the court ehall further order the eviction of the offender from the area
occupied and the forfeiture to the government of ail improvemenis made therein,
including all vehicles, domestic animals and equipment of any kind used in the
commission of the offense. If not suitable for use by the Department, s
improvements, vehicles, domestic animals and equipment shall be sold at public
auction, the proceeds fom which shall accrue to the SFDF.

If the offender is an alien, he shall be deported after serving his sentence and
payment of Sines, without any further proceedings. An offender who is a government
officer or employee, shall, in addition to the above penalties, be deemed automatically
dismissed from office and permanently disqualified from holding any clective or
appointive position in the government service.

SEC. 64, egal Conversion of City or Municipal Parks, Communal Forests, ant
‘Tree Parks in Subsivisions Any person found to have converted or caused. the
conversion of a city or municipal park or communal forest, or tree parks~ within
subdivisions established pursuant to Section 27 and 28 herein and Section 2 of
Presidential Decree No. 953, requiring the planting of irees in certain places, into other
uses including the construction of permanent buildings therein, or in any manner
destroys or causes any damage to the timber stands and other forest product found
therein, or assists, aids or abets another person to do so, or sets a fire, or negligently
permits a fire to be set therein, upon conviction, shall be penalized by imprisonment of
six (6) yeats and one {1) day to twelve (12) years or a fine of not less than éne hundred
thousand (P100,000.00) nor more than five hundred thousand {P500,000.00), or both fine
and imprisonment at the discretion of the Court. The offender shall likewise be
imposed 2 fine equivalent to eight times the commercial value of the forest products
destroyed without prejudice to payment of the full cost of rehabilitation of the areas as
determined by the Department: Provided, further, That the maximura of the penalty
prescribed herein shall be imposed upon the offender who repeats the samk offense,
and double the maximum penalty upon the offender who commits the same offense for
the third me or more. The court shall further order the forfeiture to the government
of all improvemenis made therein, including all vehicles, domestic animals, and
equipment of any kind used in the commission of the offense. If not suitable for use by
the Department, said improvements, vehicles, domestic animals and equipment shall be
sold at public auction, the proceeds from which shall accme tc the SFDF.

An offender who is a government officer or employee, in addition to the above
penalties, shall be deemed automatically dismissed from office and permanently
disqualified from holding any elective or appointive position in the government service.

SEC. 68. Miedecloration or Polsification of Reports om Forest Resource
Inventory, Seating, ond Survey by a Government Official or Employee. - Any publ



officer or employee who knowingly misdeclares or falsifies reports pertaining to forest
resource inventory, scaling, survey, and other similar activity which are contrary to the
criteria and standards established in the rules and regulations promulgated by the
Secretary therefor, afier an appropriate administrative proceeding, shall be dismissed
from the service with prejadice to re-employment. Upon conviction by a courl of
competent jurisdiction, the same public officer or employee shail farther suffer an
imprisonment of not less than eight @) years aor sore than twelve (12) years and a fine
of not less than Twenty thousand pesos (P20,000.00) nor moze than One hundved
thousand pesos (P'100,000.00). Provided, That the inventory, survey, scale, classification,
and similar reports referred herein shall be rendered nul! and avoid.

SEC. 66. Uslawful Operation of Sawmills Any person operating a sawmill or
mini-sawsnlll without authority from the Secretary, shall be punished by a fine of not
less ¢han one hundred thousand pesos (100,000.00) and confiscation of the sawznill or
mini-sawmill and complementary equipment in favor of the government.

SEC. 67. Prohibition on the Issuance of Tax Declaration on Forestlands» Any
public officer or employee who issues a tax declaration for any purpose on any part of
forestlands, upon conviction, shall be penalized with imprisonment for a period of not
less than four (4) years nor more than eight (8) years and perpetual disqualification
from holding an elective or appointive office. The tax declaration shall be considered
nul and void.

SEC, 68. Unlawful Possession of turplements and Devices Used by Forest
Officers~ Any person found possessing or using implements and devices used by
forest officers shall be penalized with imprisonment of not less than four (4) years nor
more than eight (8) years and a fine of not less than Twenty thousand pesos (P20,000.00)
nor more than One hundred: thousand pesos (P100,000.00) in addition to the
confiscation of such implements and devices and the automatic cancellation of any
license agreement, license, lease or permit.

Any forest officer yho willingly allowed unauthorized person(s) to use these
implements and devices under his care shall be penalized with imprisonment of not less
four (4) years to no more than eight (8) years and a fine of not ‘ess than Twenty
thousand pesos (P20,000.00) nor more than One hundred thousand pesos (P100,000.00).
‘In addition, the said forest officer shall be dismissed from the service with prejudice to
reinstatement and with perpetual disqualification from holding an elective o:
appointive position,

SEC. 69. Unauthorized Introduction of Logging Tools and Equipment Inside
Foreotlands,- it shall be unlawful for any person or entity to possess, bring, ot introduce
any logging tools or equipment inside forestlands without prior authority from the
Secretary or his duly authorized representative, Any person found guilty of illegal
possession of said logging tools or equipment shall be liable to imprisonment of six (6)
years and one (1) day to eight (8) years oz a fine of not less than Thirty thousand pesos
{P30,000,00) nor more than Fifty thousand pesos (P50,000.00) or both imprisonment and
fine, and confiscation of said logging tools and equipment in favor of the government,

SEC. 70. Non-Payment and Non-Remitiance of Forest Charges Any person
who fails to pay the amonat dite and payable as forest charges to the government shall
not be aliowed to transport, convey, sell, nor use the timber or forest product.
Moreover, failure to pay within thirty (80) days upon assessment of forest charges shall
be a ground for confiscation of said timber or forest product in favor of the
government. Any person who fails or refuses to remit io the proper authorities said



forest charges collectible pursuant io the provisions of this Act of the National intetnal
Revenue Code, as amended, or who delays, obstructs or prevents the same, or who
orders, causes or effects the transfer or diversion of the funds for purposes other than
those epecified in said Acts shall, upon conviction, be imprisoned for not less than six
(6) yeare nor more than ten (10) years and fined from Twenty thousand pesos
(P20,000.00) to One hundred thousand pesos (P100,000,00). If the offender is a
* corporation, partnership, or association, the officers and directors thereof shall be liable.

SEC. 71. Instituiion of Criminal Action by Forest Officers. Any forest officer
shall arrest even without warrantany person who has committed or is about to commit,
or is conumitting in his presence any of the offenses defined in this chapter. The tools,
animals, equipment and conveyances used in committing the offense, and the forest
products cut, gathered, taken or possessed by the offender in the process of committing
the offense shalj also be seized and confiscated in favor of the government. The
arresting forest officer shall thereafter deliver within six (6) hours from the time of
arrest or seizure both the offender and the confiscated forest products, conveyances,
tools and equipment, or the documents pertaining to the same, and file the proper
complaint with the appropriate official designated by law to conduct preliminary
investigation and file information in court. If the arrest and seizure are made in the
forest far from anthorities designated by law to conduct preliminary investigations, the
delivery to and filing of the complaint with the latter shall be done within a reasonable
time sufficient for ordinary travel from the place of arrest to the place of delivery. The
seized forest products, materials, conveyances, tools and equipment shall be
immediately disposed of in accordance with the regulations promulgated by the
Secretary.

‘The Secretary may deputize any agency, barangay or barrio official, or any
qualified person to protect the forest and exercise the powers or authority provided for
in the preceding paragraph. Reports and complaints regarding the commission of any
of the offenses defined in this chapter not committed in the presence of any forest
officer or any of the deputized officers shalj immediately be reported to the forest
officer assigned in the area where the offense was allegedly committed. Therenpon, the
investigating officer shall receive the evidences supporting the report or complaint and
submit the same with the appropriate official authorized by law to conduct a
preliminary investigation of criminal cases and file the information in court,

SEC. 72. Liability of Confiscating Officers. Any public officer who fails to
produce the timber or forest products, including tools, conveyances, equipment, and
devices in his custody pursuant to a seizure or confiscation made thereon, or who shall
appropriate, take, misappropriate, or shall permit another person to take such timber
forest products wholly or partially, shall suffer the penalty provided for in Article 217,
on Malversation of Public Funds or Property, of the Revised Penal Cotle. In addition,
the said public officer shall be dismissed from service with prejudice to reinstatement
and with perpetual! disqualification from holding any elective or appointive office.

CHAPTER XY
ADMINISTRATIVE PROVISIONS

SEC. 72, Strengthentng of the Forect Management Sector~ tn order to effectively
implement the provisions of this Act, the Forest Management Sureau (FMB) shall be
transformed into a line bureau with fimetions clearly defined and enumerated under
the implementing rules and regulations of this Act. To ensure that the scientific practice
of forestry in the country is properly implemented, only registered foresters shall be


appointed to the positions of Director and Assistant Director end Regional Directors of
the FMB as well as to all other positions where the services of professional foresters are
required in accordance with existing laws and the relevant roles and regulations issued
by the Civil Service Commission (CSC) and the Professional Regulations Commission

(PRO).

SEC. 74, Development of Mechanisms for Private Sector Participation in Forest
Management. The Secretary is hereby authorized to ras appropriat
strengthen private sector partic
accreditation national organization ‘of alate inv: vestors including for profit non-
government organizations and people's organizati The aowredited national
organization shall assist the Department in the formulation and review of relevant
policies to ensure the contribution of the forestry sector to national economy and
sustainable development. it shall also assist the Department in evaluating applications
for forest management agreements; monitoring the performance of holders of
commercial tenurial instruments; ensuring the local supply of timber and wood
products; providing producers with access to local and international markets; and
ensuring the conservation and preservation of protection forestlands and protected
areas under the NIPAS.

SEC. 8, Authority of the Secretary on the Use of forest Resources. The
utilization of forest resources from natural forests found in forestlands, government-
established reservations, and all other lands including ancestral domains or under the
management of other government agencies shall be prohibited unless covered by
permits issued by the Department: Provided, That in the case of ancestral lands and
domains, the terms of the agreement with the concerned indigenous cultural
community shail likewise govern.

SEC: 76, Administrative Authority of the Secretary or Iie Duly Authorized
Representative to Order Confiscation. - In all cases of violations of this Act or other
forest laws, rules, and regulations, the Secretary or his duly authorized representative
may order the confiscation of forest products illegally harvested, cut, gathered,
removed! or possessed or abandoned, and all conveyances used either by land, water, ot
air as well as ail machinery, equipment, implements, and tools used in the commission
of the offense and to dispose of the same in accordance with pertinent laws, regulations,
or policies on the znatler.

Tf the confiscated forest products are in danger of deteriorating, the Secretary
may order that the same be sold at public auction even before the termination of the
judicial proceedings, with the proceeds kept in trust to await the outcome of the judicial
proceedings. ; -

No court of the Philippines shall have jurisdiction to issue any Writ uf Replevin,
restraining order, or preliminary mandatory injunction in any case involving or
growing out of any action by the Secretary or his duly authorized representative in the
‘exercise of the foregoing administrative author

SEC. 77. Administrative Authority of the Secretary to Impose Fines.
cases of violations of this Act arid other forest laws, rules and regulations where
the principal penalty, the Secretary, after consultation with the forest-based industries
affected, is hereby authorized to impose administratively the penalty consisting of the
atnount and the schedules of the fine which shall -Eficialiy published in a national
newspaper of general circulation.



SEC. 78. Authority of Forest Officers. - When in the performance of their official
duties, forest officers or other government officials or employees duly authorized by the
Secretary shall have free entry into areas covered by a contract, agreement, license, lease
or permit, Forest officers are authorized to inspect and to open closed vans suspected
to contain illegally harvested, collected or transported forest product: Provided, That it is
done in the presence of the shipper or consignee or two (2) responsible public officials
in the locality. Forest officers are amthorized to administer oath, take acknowledgment
in official matters connected with the functions of their office, or take testimony in
official investigations conducted under the authority of this Act and the implementing
rules and regulations issued by the Secretary pursuant thereof,

SEC. 79. Visttorial Powers. - The Secretary or his duly authorized representative
shall, from time to time, investigate, inspect, and examine records and other documents
except bank records related to the operation of any person granted the privilege,
contract, or agreement to utilize forest resources to determine compliance with the
terms and conditions etipulated in the grant, contract or agreement, this Act, and
pertinent laws, rules, and regulations,

SEC, 80, Other Incentives. Twenty percent (20%) of the value of confiscated
materials shall be used as incentives to informants and members of multi-sectoral forest
management councils, including Department personnel. Additional incentives may be
provided to personnel of the Department, in addition to those provided under the
Government Service Insurance System (GSIS) or Workmen's Compensation Law. ‘They
shall also be entitled to free legal assistance should legai cases be filed against them in
the performance of official duties.

SEC. BL, Citizens’ Suite. - For purposes of enforcing the provisions of this Act or
its implementing rules and regulations, any citizen may file an eppropriate civil,
criminal or administrative action in the proper court against: (a) any person who
violates or fails to cornply with the provisions of this Act or its implementing rules and
regulations; or (b) the Department or other implementing agencies with respect to
orders, rules and regulations issued inconsistent with this Act; and (c) any public officer
who wilifully or grossly neglects the performance of an Act specifically enjoined as a
duty by this Act or its implementing rules and regulations, or abuses his authority in
the performance of his duty, or in any manner, improperly performs his duties under
this Act or its implementing rules and regulations: Provided, however, That no suit can be
filecl until after a thirty-day notice has been given to the public officer and the alleged
violator concerned and no appropriate action has been taken thereon.

The court shall exempt such action from the payment of filing fees, and chal,
tikewise, upon facie showing of the non-enforcement or violation complained of,
exempt the plaintiff from the filing of an injunction bond for the issuance of a
preliminary injunction,

In the event that the citizen should prevail, the Court shall award reasonable
attorney’s fees, moral damages, and litigation costs as appropriate.

SEC. 82. Suite Against Public Participation and the Enforcement of this Act~
Where a suit is brought against a person who filed an action as provided in Section 80
hetein, or against any person, institution or government agency that implements this
Act, it shall be the duty of the investigating prosecutor or the Court, as the case may be,
to Iminediately make a determination not exceeding thirty (20) days whether said legal
action has been filed to harass, vex, exert undue pressure, or stifle such legal actions of
the person complaining for the enforcement of the provisions of this Act. Upon


determination thereof, evidence warranting the same, the Court shall dismies the case
and award attorney’s fees and double damages.

‘This provision shall also apply and benefit public officers who are sued for acts
committed in their official capacity, there being no grave abuse of authority, and done
in the couse of enforcing this Act.

SEC, 83. Protection to Witnesses in Cases Involving Violation of Foreatry
Laws. Witnesses to violations of this Act or other forestry laws and regulations,
including the immediate members of the family of said witnesses shall be given
protection, security and benefit, subject to the provisions of Republic Act No. 6981,
otherwise known as “The Witness Protection, Security and Benefit Act and its
implementing rules and regulations.

SEC. 64, Rulle-Making Authority~ In coordination with the NCIP, the DILG, the
Department of Finance, the leagues of provinces, cities, and municipalities, and other
government agencies mentioned herein, the Department shall promulgate the
implementing rules and regulations within one (1) year from the effectivity of this Act.

SEC. 85, Congressional Oversight Committee on the Sustainable Yorest
Management Act» There is hereby created a Congressional Oversight Committee
composed of seven (7) members from the Senate Commitiee on Environment and
Natural Resources and seven (7) members from the House of Representatives
Comittee on Natural Resources.

“The eecretariat of the Oversight Committee shall be drawn from the existing
secretariat personnel of the committees comprising the oversight and the funding shali
be taken from the appropriations of both the House of Representatives and the Senate.

SEC. 86. Transitory Provieion~ Upon the approval of this Act, the Department
shall evaluate the conditions of all forestlands covered by existing TLAs, licenses, or
permits and the like, whith shall be allowed to continue until thelr expiry unless
terminated for cause, stich as:

(a) when the licensee has been found to be a dummy;

(b) farming out the license or receiving royalty of any kind;

(©) cutting or operating outside the limits of the license or within an area
specifically designated or sub-classified by the Department as protection forest;

(a) allowing legally cut timber to be invoiced under the license of inducing any
other person to log in other areas in violation of the Department's regulations;

(e) failure to submit to the Department the required copies of auxiliary invoices
covering timber manifested under the license;

(6 failure to leave undamaged an adequate stand of young, trees for residual
growing stock or for seeding purposes and to employ the necessary numiber of laborers
needed for timber management work;

(g) when the licensee hag, for the third time after written warning, intentionally
cat, injured or destroyed trees mazked by forest officers and unmarked poles and
saplings for future growing stock, seeding, or protection;

(h) failure to employ the required number of concession guards as determined
by the Department;

(i) failure to protect the concession or license atea or parts thereof from being
converted into kaingin, or frorn illegal timber cutting, and other forms of trespass;

{) when made a condition in the award of the area and the grant of the license,
to put up the processing plant for the area within the required period; .

(k) failure to pay pending forest accounts;


() failure to maintain and make conspicuous the approved and established
boundaries of his concession or license area;

(m) failure to suspend operations within a conflicted area when 90 reyuired by
the Department or its authorized representatives, pending final decision of the conflict;

(n) when the license is found to have been obtained through fraud or
misrepresentation or by false, misleading statements;

() allowing a contractor to operate the license area or concession; and

(p) violation of any of the terms and conditions of the license or any of the
provisions of the internal vevenue, labor, and NIPAS Jaws and Department regulations.

Any of the violations enumerated above will be cause for the immediate
cancellation of the permit o1 timber license agreement,

CHAPTER XVI
FINAL PROVISIONS

SEC. 87. Separability Clause. - Should any provision herein be declared
unconstitutional or invalid, the same shall not affect the validity or legality of the other
provisions,

BEC. 88. Repealing Clause. - Subsections (b), (8), (@), (9, (@), and (1) of Section 4
of Act No. 3918; Republic Act Nes, 460 and 7161; Presidential Decree Nos. 705, 1153,
1515, 1589, 1775 and 1998; Letter of instruction No. 818; Executive Order Nos. 277 and
278, series of 1987, and Executive Order No. 725, series of 1981, are hereby repealed, and
all laws, orders, rules and regulations, or any part thereof which are inconsistent
herewith are likewise hereby repealed or amended accordingly: Provided, That this Act
shal not in any manner amend the IPRA and the NIPAS law.

SEC. 89, Effectivity. - This Act shail take effect thirty (30) days from the date of
its publication in the Official Gazette or in at least two (2) national newspapers of
general circulation.

Approved,