Republic of the Philippines
HOUSE OF REPRESENTATIVES
‘Quezon City

‘SIXTEENTH CONGRESS
First Regular Session

486

House Bill No.

Introduced by Hon. Rodolfo G. Biazon

EXPLANATORY NOTE

‘There already exist rules for most, if not all, issues pertaining to land use, including
land registration, local governance, taxation, agrarian reform, protected areas, ancestral
domain, fisheries, agricultural modemization, mining, and urban development and housing,
among other things. For instance, environmentally critical areas are well defined by
Agricultural and Fisheries Modemization Act. Laws on land classification, such as the Land
Registration Act of 1902 and the Public Land Act of 1936, have long been in place. Among
the more recent laws are the Urban Development and Housing Act, focusing on urban land
development and shelter, and the Indigenous People’s Rights Act covering ancestral domains.

Then, there is the Local Government Code, which grants to municipalities and cities
the power to prescribe limits on the use of property, adopt comprehensive land use plans,
enact zoning ordinances, and reclassify land within their jurisdictions. Numerous functions
formerly lodged with the national government have also been devolved to the local
government units (LGUs), such as the granting of development permits for subdivision
projects and the enforcement of environmental laws.

‘The Comprehensive Land Reform Law also allows the Department of Agrarian
Reform to reclassify land through conversion, giving priority to industrial centers, tourism
development areas and sites for socialized housing. Other laws, such as the Economic Zone
Act, the Fisheries Code, the People’s Small Scale Mining Act and the Tourism Development
‘Act, are also focused on delineating the use of land.

Yet all these laws are, apparently, not enough. Relentless population growth and
numerous priorities such as food production, human settlements, industry and environmental
protection continue to compete over the use and exploitation of limited land resources,
thereby putting more pressure to come up with a more comprehensive system of land use.

Land use is an issue of governance. A comprehensive law should bring together all
the laws and rules that have anything to do with land use. This should lay the foundation for
the efficient management of land and other physical resources without compromising its
future availability. It involves choices — between conflicting uses, opportunities and interests.


Any discussion on land use, therefore, must necessarily seek to resolve and rationalize the
conflicting claims of various stakeholders and interest groups.

The government recognizes the conflicting interests in land use in the context of a
growing national population. For instance, it acknowledges that the conflict generated by the
indiscriminate conversion of agricultural land for other uses redounds to a problem with land
allocation and use.

While government recognizes the existence of various laws on land use that have now
served as the mandate of various government agencies dealing with land concerns, it also
now acknowledges that these laws are not enough to systematize and synchronize
government decisions on where, how and how much land should be used for a particular
need.

This bill aims to provide the overall framework for the rational allocation, disposition,
sustainable use, and management of land resources for a variety of ecological and economic
uses, and to prevent premature conversion of agricultural lands for other uses.

This bill particularly aims to formulate a Physical Framework Plan and to define the
indicative uses of land and other physical resources from the national level down to the cities
and municipalities that shall guide local government units (LGUs) in their planning process.

‘The government strongly believes that there should be an orderly allocation of land
for agricultural, residential, commercial, industrial and tourism purposes. It is for this reason
that passage of this bill is urgently needed.

RODOLFO 6. BIAZON
Representative
Lone District, Muntinlupa City


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

SIXTEENTH CONGRESS

First Regular Session
: 486
House Bill No. __

G

Introduced by Hon. Rodolfo G. Biazon

AN ACT
INSTITUTING A NATIONAL LAND USE POLICY, PROVIDING THE
IMPLEMENTING MECHANISMS THEREFORE, AND FOR OTHER PURPOSES

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

CHAPTER I
INTRODUCTORY PROVISIONS

SECTION 1. Title. ~ This Act shall be known and cited as the “National Land Use
Act of the Philippine

SEC. 2. Declaration of Policies and Principles. — It shall be the policy of the State to
provide for a rational and just allocation, utilization, management and development of the
country's land resources to ensure their optimum use consistent with the principles of
sustainable development.

‘Towards this end, the State shall adopt a land use and allocation pattern that promotes
and ensures:

(a) Protection of prime agricultural lands for food production activities and give
highest priority to the completion of the Comprehensive Agrarian Reform
Program (CARP);

(b) Food security in basic food commodities with emphasis on food self-sufficiency
in rice and com production and through efficient and sustainable use of land
resources consistent with the principles of sound agricultural development, natural
resources development, and agrarian reform;

(©) Sustainable development and management of water resources towards water
security;

(@ Rational population distribution and settlement development;

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(© Equitable and sustainable economic growth, and a balanced and dispersed
industrial and tourism development guided by principles of agrarian reform, urban
land reform and rural development;

(© Sustainable management of natural resources;
(@ Maintenance and preservation of environmental integrity and stability;

(h) Harmony between the rights and the varied interests of every Filipino within the
framework of people empowerment, decentralization, social justice and equity;

(@ Respect to and protection of the sustainable traditional resource rights of the
Indigenous Cultural Communities/Indigenous People (ICCs/IP) to their ancestral
domain to ensure their economic, social and cultural well-being as well as
recognition of the applicability of customary laws and sustainable traditional
resource use and management, knowledge, and practices in ancestral domains;

(i) Protection of the rights of basic sectors to ensure equitable access to the country’s
land and other resources through state regulation of land valuation to prevent
‘uncontrolled land speculation resulting in tremendous increase in land pricing; and

(&) An integrated approach to the utilization, allocation, development and
management of water as a limited resource that will complement and support
sustainable land utilization.

It is also the policy of the State to institutionalize land and water use and physical

planning as a mechanism for identifying, determining and evaluating altemnative land use
patterns consistent with existing laws, decrees, executive orders, rules and regulations. A
national land and water use allocation system and a land and water resources information and
‘management system shall be developed to support this Act.

SEC. 3. Scope. — This Act shall apply to all lands, including the water therein,

whether public or private, owned and/or possessed by any person, communities or groups of
people to guide and/or govern the use, allocation and management of such lands and other
resources, including the activities that bear an impact on said resources.

SEC. 4. Definitions. — As used in and for the purposes of this Act, the following terms

shall mean:

(a) “Administration” refers to the Land Use Policy Administration (LUPA), which is
the administrative, regulatory and quasi-judicial body provided for under this Act
and shall be the final authority in all matters relating to land use planning.

(b) “Agricultural lands” refer to lands devoted to or suitable for the cultivation of the
soil, planting of crops, growing of fruit trees, raising of livestock, poultry, fish or
aqua-culture production, including the harvesting of such farm products, and other
farm activities and practices performed in conjunction with such farming
operations done by persons whether natural or juridical.


(©) “Agricultural land use conversion” refers to the undertaking of any development
activities which modify or alter the physical characteristics of agricultural lands to
render them suitable for non-agricultural purposes with an approved order of
conversion issued exclusively by the Department of Agrarian Reform (DAR).

(@ “Alienable and disposable lands of the public domain” refer to lands of the
public domain which have been delineated, classified and certified as such and
available for disposition under Commonwealth Act No. 141, as amended,
otherwise known as the Public Land Act.

(©) “Ancestral domains” refer to all areas generally belonging to ICCs/IP as defined
in Republic Act No. 8371 or the “Indigenous People’s Rights Act of 1998.”

(®) “Coastal zone” refers to a band of dry and adjacent ocean space (water and
submerged land) in which terrestrial processes and uses directly affect oceanic
processes and uses, and vice versa; its geographic extent may include areas within
a landmark limit of one (1) kilometer from the shoreline to include mangrove
swamp, brackish water ponds, swamps, beaches, foreshore lands and other areas
within a seaward limit of 200 meters isobath to include coral reef, algal flats, sea
grass beds and other soft-bottom areas.

(g) “Customary laws” refer to a body of written and/or unwritten rules, usage,
customs and practices traditionally and continually recognized, accepted, and
observed by respective ICCs/P.

(h) “Development plan” refers to a document that defines the activities or measures
that government intends to implement in order to achieve a defined set of
development goals. A plan may include an analysis of problems and resources,
definition of goals and objectives, policy guidelines, project and target
achievements, and an implementation mechanism that defines the roles and
contribution expected from agencies and the private sector. This also refers to the
socio-economic, the physical framework plan or sectoral plan of the national
government or its instrumentality or a particular local government unit.

(i) “Ecologically fragile agricultural lands” refers to lands within critical watershed,
brackish and freshwater wetlands, pasture lands and croplands that require
rehabilitation and whose continued unsustainable use would adversely affect the
productivity of lowland agricultural areas and the stability of the upland system.

(@ “Environmentally critical areas” refer to areas declared by law as (i) areas for
natural parks, watershed reserves, wildlife preserves, and sanctuaries; (ii) areas set
aside as aesthetic potential tourist spots; (iii) areas that constitute the habitat for
any endangered or threatened species of indigenous Philippine wildlife [flora and
fauna]; (iv) areas of unique historic, archeological, or scientific interests; (v) areas
that are traditionally occupied by the ICCs/IP; (vi) areas with critical slopes; (vii)
areas frequently visited and/or hard hit by natural calamities [geologic hazards,
floods, typhoons and volcanic activities}; (viii) recharge areas of aquifers; (ix)
mangrove areas; (x) coral reefs; (xi)mossy and virgin forests; (xii) rivers and
riverbanks; (xiii) swamp forest and marshlands; and (xiv) foreshore lands.



(kK) “Exhausted mineral lands” refer to specific sites whose mineral deposits are not
long in sufficient quantity or quality to justify additional expenditure for their
extraction and utilization.

(D “Food self-sufficiency” refers to the policy objective of meeting the food
requirements through intensive local food production in a sustainable manner,
based on the country’s existing and potential resource endowments and related
production advantages.

(m) “Food security” refers to the policy objective of meeting the food availability,
accessibility and affordability requirements of present and future generation of
Filipinos in a sustainable manner, through local production, or importation, only
when there is shortage established based on micro-level situation, or both, based
on the country’s existing and potential resources endowments and related
production advantages, and consistent with the overall national development
objectives and policies.

(n) “Forest lands” refers to those lands of the public domain that have been subjected
to land evaluation and classification and have been legally designated as such for
production forest and protection/amenity forest.

(0) “Foreshore Land” refers to a string of land margining a body of water, part of a
seashore between the low-water line usually at the seaward margin of a low tide
terrace and the upper limit of wave wash at high tide usually marked by a beach
scarp or berm.

(p) “Framework for Physical Planning” refers to an indicative plan promoting the
most appropriate and rational use of land and other physical resources. It provides
policy guidelines for all decisions relating to land use and environmental
‘management, to prevent and mitigate the adverse effects of inappropriate resource
utilization of the country’s food security and food self-sufficiency on rice and
corn, the people’s welfare and their environment. It embodies both policies and
Strategies necessary to carry out goals and objectives.

(@) “Geo-hazard and disaster prone areas” refers to areas frequently visited and/or
prone to experience natural calamities — for example, typhoons, flooding, storm
surges, or liquefaction — specifically weather/climatic, hydrologic and geologic.

(®) “Idle lands” refers to (i) agricultural lands more than five (5) hectares in area,
whether contiguous or not, one-half (1/2) of the area in excess of the said five (5)
hectares of which remain uncultivated or unimproved by the owner of the property
or person having legal interest therein for a period exceeding one (1) year.
Agricultural lands planted to permanent or perennial crops with at least fifty (50)
trees to a hectare shall not be considered idle lands. Lands actually used for
grazing purposes shall likewise not be considered idle lands. (ji) Lands other than
agricultural, located in urban and urbanizable areas on which no improvements, as
herein defined, have been made by the owner, as certified by the city, municipality
or provincial assessor.



(S) “Improvements” refers to all types of buildings and residential units, walls,
fences, structures or construction of all kinds of fixed character or are adhered to
the soil but shall not include trees, plants, growing fruits, and other fixtures that
are mere super impositions on the land, and the value of improvements shall not
be less than fifty percent (50%) of the assessed value of the property.

() “Indigenous Cultural Communities/Indigenous People (ICCS/IP)” refer to
‘groups of people or homogenous societies identified in Republic Act No. 8371 or
the “Indigenous People’s Rights Act of 1998”.

(u) “Inland waters” refers to waters that are not coastal and marine waters not subject
to acquisitive prescription and consistent with the provisions of Presidential
Decree No. 1067, otherwise known as the “1976 Water Code of the Philippines”.

(v) “Land” refers to resources, both natural and man-made, found on the surface
below and above the ground including inland waters and the air thereon.

(w) “Land use” refers to the manner of utilization of land, including its allocation,
development, and management.

(x) “Land use plan” refers to a document embodying a set of policies accompanied
by maps and similar illustrations which represent the community-desired pattern
of population distribution and a proposal for the future allocation of land to the
various land using activities. It identifies the allocation, character and extent of the
areas of land resources to be used for different purposes and includes the process
and the criteria employed in the determination of the land use.

()) “Land use planning” refers to the act of defining the allocation, utilization,
development, and management of all land within a given territory or jurisdiction
according to the inherent qualities of the land itself and supportive of sustainable
economic, demographic, socio-cultural and environmental objectives as an aid to
decision-making and legislation.

(2) “Land Classification” refers to the classification of lands of public domain into
agricultural, forest or timber, mineral lands, or natural parks as provided by the
1987 Constitution.

(aa) “Land Sub-classification” refers to the act of determining and assigning the uses
of classified public lands such as forest or timberlands, natural parks and mineral
lands in accordance with existing laws.

(bb) “Land use classification” refers to the act of delineating or allocating lands
according to protection land use, production land use, settlements development,
and infrastructure development as defined and provided for in this Act.

(cc) “Mineral lands” refers to lands in which minerals exist in sufficient quantity or
quality to justify the investment necessary for their extraction and/or
development.


(dd) “Non-agricultural land use conversion” refers to the act of changing the current
use of a piece of non-agricultural land into some other uses.

(ce) “Non-Government Organization (NGO)” refers to a private, non-profit
organization that is committed to the task of political and socio-economic,
physical, cultural and environmental development and established primarily to
provide service to the marginalized sectors in society.

(fi) “People’s Organization (PO)” refers to a private, non-profit, voluntary and
‘community-based organization established primarily to provide service to its
members and the community in general.

(gg) “Physical framework plan” refers to an indicative plan promoting the most
appropriate and rational use of land and other physical resources. It provides
policy guidelines for all decisions relating to land use and environmental
‘management, to prevent or mitigate the adverse effects of inappropriate resource
utilization on the people’s welfare and their environment, It embodies both
policies and strategies necessary to carry out goals and objectives.

(hh) “Premature or illegal conversion” means the undertaking of any activity where
the results will modify or alter the physical characteristics of agricultural lands to
render them suitable for non-agricultural purposes without an approved order of
conversion from the Secretary of Agrarian Reform.

(ii) “Prime agricultural lands” refer to lands that can be used for various or specific
agricultural activities and can provide optimum and sustainable yield with a
minimum of inputs and development costs.

(i) “Production land use” refers to the direct and indirect utilization of land to
generate outputs resulting from the following activities: agricultural, fish farming
or aquaculture, timber or agro-forestry, grazing and pasture, mining, industrial,
and tourism.

(kk) “Protected areas” refers to identified portions of land set aside by reason of their
unique physical and biological significance, managed to enhance biological
diversity, and protected against human exploit

(ll) “Protection land use” refers to the utilization of land primarily for the
rehabilitation, conservation, and protection purposes and the promotion of the
country’s ecological and life-support systems.

(mm) “Public lands or lands of the public domain” refer to lands that have not been
subject to private property rights or subject to sale or other modes of
acquisition of concession, under the general laws, and are devoted to public
use.

(nn) “Reclassification of agricultural lands” refers to the act or process of allocating
the declared alienable or disposable lands of the public domain to specific uses
such as for agricultural, residential, industrial, or commercial.


(00) “Resettlement areas” refers to areas identified by the appropriate national agency
or by the local government unit with respect to areas within its jurisdiction,
which shall be used for the relocation of the underprivileged and homeless.

(pp) “Settlement” refers to the habitat or built-up environment where human beings
preferred to live in.

(qq) “Settlements development” refers to any improvement on existing settlements, or
any proposed development of certain areas for settlement purposes. It also
involves the spatial distribution of population, identification of the roles and
functions of key urban centers and determination of relationships among
settlement areas, and the provision of basic services and facilities of identified
major settlement areas or growth centers.

(f) “Shoreline” refers to a strip of land covering at least one (1) kilometer from the
point where seawater reaches during the highest high tide.

(ss) “Socialized Housing” refers to housing programs and projects undertaken by the
Government or the private sector for the underprivileged and homeless citizens,
which shall include sites and services development, long-term financing,
liberalized terms on interest payments, and such other benefits in accordance
with Republic Act No. 7279 otherwise known as the “Urban Development and
Housing Act (UDHA) of 1992.”

(tt) “Socialized Housing Zones” refers to lands identified and designated by local
government units as sites for socialized housing pursuant to Article IV of
Republic Act No. 7279 and its implementing guidelines; these lands to be
identified and designated shall include areas that are presently occupied by the
urban poor, as well as those identified as resettlement areas as defined herein.

(uu) “Sustainable development” refers to the development objective of meeting the
needs of the present without compromising the ability of future generations to
meet their own needs consistent with the principles of social equity, efficiency
and environmental integrity.

(w) “Urban areas” refer to all cities regardless of their population density and to
municipalities with population density of at least five hundred (500) persons per
square kilometer.

(ww) “Urbanicable areas” refers to the sites and land that, considering. present
characteristics and prevailing conditions, display marked and great potential of
becoming urban areas within a period of five (5) years.

(xx) “Water security” is defined as sufficient access throughout the year to the
minimum daily requirement of clean water to maintain a healthy life.

(yy) “Water use” is defined as the appropriation of water for domestic, municipal,
irrigation, power generation, inland fisheries, poultry and livestock, industrial
and commercial, environmental, and recreational use.


(zz) “Watershed” refers to attachment areas or drainage basin from which the waters
ofa stream or stream system are drawn.

(aaa) “Zoning” refers to the regulatory tool for delineating the specific uses of lands in
accordance with the approved land use plan within the territorial jurisdiction of
a city or municipality and specifying the conditions for their regulation, subject
to the limitation imposed by law and competent authority.

(bbb)“Zoning ordinance” refers to a local legislation passed by the Sangguniang
Pambayan or Panglungsod approving the development control/zoning plan, in
accordance with an approved or adopted land use plan for the city or
municipality, and providing for the regulations and other conditions on the uses
of land including the limitation on the infrastructures that may be placed thereon
within the territorial jurisdiction of a city or municipality.

CHAPTER I
NATIONAL FRAMEWORK FOR LAND USE PLANNING

Article One
Hierarchy of Physical Framework and Land Use Plans

SEC. 5. National land use planning and zoning guidelines and standards, — Within
six (6) months from the effectivity of this Act, the Administration shall, in consultation with
the concerned sectors through mandatory conduct of public hearings, formulate a national
land use planning and zoning guidelines and standards that shall guide all local government
units (LGUs) in formulating their comprehensive land use and zoning plans. Standards and
guidelines on land use shall be set at the national level for major island groupings based on
the data provided by the national base mapping program set forth in Section 26 hereof.
Natural closure areas such as watersheds and ecosystems must also be taken into
consideration in land use planning.

SEC. 6. City and Municipal Land Use Plans. ~ Consistent with nationally prescribed
standards and guidelines pursuant to the preceding section, the cities and municipalities shall,
in consultation with the concerned sectors through mandatory conduct of public hearings,
prepare their respective land use plans to determine the specific uses of their lands and other
physical resources, including the delineation of actual boundaries on the ground within the
territorial jurisdiction of the city or municipality and the translation and integration of
sectoral plans in their respective land use plans.

SEC. 7. Provincial and Regional Physical Framework Plans. — The provinces and the
regional land use committees shall, in consultation with the concerned sectors through
mandatory conduct of public hearings, prepare their respective provincial and regional
physical framework plans that shall define the indicative uses and other physical resources
therein and the delineation of actual boundaries on the ground within the territorial
jurisdiction of the province based on the nationally prescribed standards and guidelines was
well as the city and municipal plans. Provincial Physical Framework Plans (PPFP) shall
consolidate, integrate, harmonize, and reconcile the land use plans of the component cities
and municipalities of respective provinces. Regional Physical Framework Plans (RPFP) shall

8


consolidate, integrate, harmonize, and reconcile the land use plans of respective provinces
and independent and highly urbanized cities located in the concerned regions. Such plans
shall be in consultation with the concemed sectors through mandatory conduct of public
hearings.

SEC. 8. Land Use Plans for Ancestral Domains. — Land use plans for the delineated
and recognized ancestral domains shall be formulated by the ICCs/IP themselves in
accordance with their particular needs and traditional resource and management systems with
the assistance of the National Commission on the Indigenous People (NCIP) and the LGUs
concerned. Such plans shall be recognized and integrated in the local, provincial, regional and
national physical framework plans. Physical framework plans, made prior to delineation of
ancestral domains included in such plans or ordinances shall be without prejudice to the
rights of the ICCs/IP concerned to adopt different land use categories in accordance with their
particular needs and traditional resource and management systems.

SEC. 9. National Physical Framework Plan. ~ There shall be a hierarchy of plans
from the city and municipal, to the provincial, to the regional, and to the national plans.
Based on the completed land use plans at the city and municipal level, the PPEP, and the
RPEP, the Administration shall formulate the National Physical Framework Plan or the
NPFP. The NPFP shall define the objectives, policies and strategies on the indicative uses of
land and other physical resources of the country to guide and support the implementation of
the national development plan. Upon its completion, all planning processes pertaining to the
use of land resources shall conform to the standards and guidelines set forth therein,

Article Two
Local Land Use Planning and Zoning

SEC. 10. Basis of City or Municipal Land Use Plans. ~ The land use plans of cities
and municipalities shall be formulated in consonance with the results of mandatory
consultations of the various sectors in the community and subject to the nationally prescribed
standards and guidelines pursuant to Section 5 hereof.

SEC. 11. Coverage of Zoning. — Zoning shall cover all alienable and disposable lands,
government-owned lands, and private lands in the territorial jurisdiction of the city or
municipality except those declared protected areas under “protection land use” and
“production land use,” as defined under Section 14 herein.

SEC. 12. Period to conduct land use planning and zoning. ~ Within one (1) year from
the promulgation of the standards and guidelines set forth by the Administration pursuant to
Section 5 herein, all cities and municipalities shall prepare their respective land use and
zoning plans. The actual zoning of all communities based on the standards and guidelines
promulgated pursuant to Section 5 of this Act is required prior to the formulation of the
NPEP.


Article Three
Framework for Land Use Planning

SEC. 13. Basic Land Use Planning Considerations. — \n determining the various land
uses as provided in Section 22, the physical characteristics of the land, including the
following, shall be considered:

(a) Geology, geomorphology, geologic hazards (seismic, volcanic, sink holes, and
landslide, among others), soil composition, terrain and slope;

(b) Demography (population size, density, urban and rural areas, ete.);
(©) Economic and related development activities;

(@) Existing and potential use;

(©) Environmental and other natural resource constraints; and

(® Existing government policies on land allocation, utilization, management and
disposition.

SEC. 14. Categories of Land Uses for Planning Purposes. — In determining and
defining the NPFP, RPFPs/PPFPs and the Comprehensive Land Use Plans (CLUPs), land
uses shall be grouped into four major functional uses, as follows:

(@) Protection land use ~ the adoption of which intends to protect, preserve and
enhance critical ecosystems from any human encroachment; regenerate and rehabilitate
degraded land and other physical resources; ensure safeguards against environmental hazards
including those resulting from unregulated activities; and, enhance and sustain the benefits
derived from maintaining the integrity of the nation’s land resources. Areas to be covered
under this category are those under the NIPAS as provided by Republic Act No. 7586 and
those outside the NIPAS that require rehabilitation and protection as identified by the
Department of Environment and Natural Resources (DENR), in coordination the
concemed local government unit, and in consultation with concemed sectors in the
community;

(b) Production land use — the adoption of which aims to determine the most efficient,
sustainable, and equitable manner of utilizing, developing and managing land for productive
purposes. Areas included under this category are agricultural lands, coastal zones excluded by
the DENR that are in environmentally critical conditions, production forest, mineral lands,
industrial and/or commercial development areas, and tourism development areas;

(©) Settlements development — the adoption of which seeks to promote an orderly,
equitable, and sustainable development of human settlements responsive to the needs of its
inhabitants and the environment. Classification shall be made based on the predominant
economic and socio-cultural activities, as urban or rural, and based on the topography and
slope of land as upland, hillside, lowland or coastal. Major uses under this category shall
include: residential — including relocation and resettlement sites for socialized housing as
provided in Republic Act No. 7279 and socialized housing zones; institutional (i.e., sites of
both local and national government offices, education and health facilities); recreational —

10


including parks, urban forests, open and green spaces; and roads and transportation networks
and facilities; and

(d) Infrastructure development — which shall cover areas, identified by LGUs, the
National Economic Development Authority (NEDA) and other concerned government
agencies as sites for priority infrastructure projects that will include, among others: power
plants/stations and major substations; irrigation and flood control; sewerage and drainage
facilities; water supply system and treatment plants; airports, seaports, fishports; major roads,
bridges, and railway trunklines; farm-to-market roads; agricultural research and development
farms and/or stations; waste disposal facilities; telecommunication stations an similar
facilities; disaster mitigation facilities; and market sites.

Provided, that the determination of functional uses of lands within ancestral domains
need not necessarily follow the land use categories provided in this Act. The concerned ICC:
IP may formulate separate land use categories for delineated ancestral domai
accordance with their particular needs and traditional resource and management systems and
through the assistance of the NCIP.

SEC. 15. Categories of Water use for planning purposes. ~ For purposes of this Act,
the categories for water use for planning purposes shall be in accordance with existing laws.
Notwithstanding such laws, the categories to be adopted must complement and support the
foregoing categories for land use planning. With six (6) months from the effectivity of this
Act, after the conduct of public consultations, the National Water Resources Board (NWRB)
and the Administration shall jointly adopt and issue implementing guidelines, rules and
regulations that will promote the integration of sound water resource utilization, allocation,
management and development with the requirements of rational land use planning.

CHAPTER Il
IMPLEMENTING STRUCTURE AND MECHANISM

Article One
Land Use Policy Administration

SEC. 16. Reconstitution of the National Land Use Committee into the Land Use
Policy Administration (LUPA). ~ The National Land Use Committee under the NEDA is
hereby reconstituted into the Land Use Policy Administration (LUPA) or the Administration
as referred to in this Act. The powers and functions vested by law to the Housing and Land
Use Regulatory Board (HLURB) pertaining to land use are hereby transferred to the LUPA.
‘The LUPA shall be the highest policy-making body on land use and shall perform the task of
integration of efforts, monitoring of developments relating to land use, evolution of policies,
regulation and direction.

SEC. 17. Executive Board. - The Administration shall have an Executive Board,
hereinafter referred to as the Board, whose main function is to direct the implementation of
the provisions of this Act, and shall be composed of nineteen (19) members, to wit:

(a) The Executive Secretary as Chairperson;

"


(b) The Director-General of the NEDA as Vice-Chairperson;

(©) The Secretaries of Environment and Natural Resources; Agriculture; Agrarian
Reform; Trade and Industry; Public Works and Highways; Transportation and
Communications; Energy; Science and Technology; Tourism; Interior and Local
Government; and Justice;

(a) The Chairperson of the Housing and Urban Development Coordinating Council
(HUDCC);

(e) Four (4) representatives from basic sectors with direct involvement in sustainable
land use — ie., urban poor, peasants, fisherfolk, and indigenous peoples ~ who
shall be appointed by the President based on the nomination and recommendation
of the sectors they respectively represent; and

(f) The Administrator of the LUPA, as ex-officio member, who shall likewise act as
the Secretary to the Board.

‘A consultative body composed of seven (7) members from the private sector,
particularly the business groups, NGOs and POs, and the academic community shall likewise
be convened twice a year.

SEC. 18. Powers and Functions.
powers and functions:

The Administration shall have the following

(a) Formulate policies on, and promulgate, in consultation with all concerned sectors,
national and regional standards and guidelines on land use and physical planning,
and issue corresponding rules and regulations to enforce compliance thereof;

(b) Formulate a National Physical Framework Plan and its regional counterparts
based on the land use plans at the local levels that shall serve as guide in
translating the National Development Plan into physical and spatial terms;

(©) Establish a National Land Use Information System, which shall integrate and
process information on land use an allocation generated by the various national
government agencies, define information requirements at various levels, and
standardize information inputs/outputs including scales and symbols in the case of
territorial and sectoral maps;

(d) Undertake the gathering of data, the conduct of studies pertaining to land use
planning, including studies on the management of identified lands uses, and such
other studies not undertaken by other government agencies;

(c) Review the physical framework and/or land use plans adopted by provinces and
highly urbanized and independent cities, to ensure consistency with the National
Land Use Planning and Zoning Guidelines and Standards as provided in Section
16, hereof; relative thereto, it may approve any such plans as a whole or in parts,
and require such revision or modification thereof as may be necessary;

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(f Issue the planning guidelines and initiate the preparation of the physical
framework and land use plans at the regional and local levels, respectively. A
mechanism for the translation of sectoral plans into spatial and physical
dimensions for integration into the various local land use plans shall likewise be
formulated.

(g) Oversee and monitor concerned government agencies and entities of the
government in the enforcement and implementation of policies and regulations
related to land use and resources management and development.

(h) Coordinate with, and assist other goverment agencies, LGUs, and
instrumentalities in planning, developing, and implementing their land use
classification programs, and to furnish, to the extent possible, technical assistance
and guidance.

(i) Hear and resolve conflicts in land use planning, classification, and allocation that
may arise between agencies of the national government, between national and
local, national and regional, and/or regional and local planning or development
agencies, including local government units subject to Section 24 and 25, hereof.

@ Call on and deputize any department, bureau, office, agency or instrumentality of
the government, including the police forces, and /or private entities and
organization for cooperation, support and assistance in the performance of its
functions.

(K) Adopt its own organizational plan and staffing pattern, and create central and
regional offices for an effective and efficient way of providing service to the
people.

(@ Perform such other functions, and exercise such other powers as may be
necessarily implied, inherent, incidental to, or related to the foregoing.

SEC. 19. Offices, Units and Staff Support. — The Administration shall be assisted by a
Secretariat under the general supervision and control of the Administrator.

SEC. 20. Powers and Functions of the Administrator. — The Administrator shall have
the following powers and functions:

(a) Act as the Executive Head of the Administration and perform the powers and
funetions incident to said position;

(b) Be responsible for the implementation and overall execution of the policies, rules
and regulations, and decisions adopted by the Board; and as such, the
‘Administrator shall issue the corresponding implementing administrative
issuances, and promulgate opinions and interpretative circulars and rulings to
ensure expeditious and effective implementation thereof; and

(©) Perform such other powers and functions as may be inherent, incidental, or related
to the foregoing.

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Any decision of the Administrator may be appealed to the LUPA Board within thirty
(30) days upon receipt of such decision by the person or party aggrieved therefrom.

SEC. 21. Qualifications of the Administrator. - No person shall be appointed
Administrator of the LUPA unless he or she is a citizen and resident of the Philippines, of
good moral character, and of proven competence in any of the following fields: (a)
environment and/or physical planning; (b) land resources management; or (c) development
planning and management, for a period of ten (10) years. The Administrator shall be
appointed by the President and shall have the rank of a Cabinet Secretary.

‘The Administrator shall be at least thirty-five (35) years of age on the date of their
appointment, of good moral character, and recognized executive ability and competence in
previous public or private employment.

SEC. 22. Qualifications, Rank and Duties of the Deputy Administrators. ~ The
Administrator shall be assisted by a Deputy Administrator who shall be appointed by the
President upon the recommendation of the Board. The Deputy Administrator shall have the
same qualifications as the Administrator and shall have the rank of an Undersecretary.

The Deputy Administrator shall be the operational administrative manager of the
LUPA and shall assist the Administrator in whatever capacity and perform other functions
and duties that may be assigned to him or her by the Administrator.

SEC. 23. Central and Regional Offices. - The Administrator may organize at the
central and regional levels such offices as may be necessary subject to Civil Service rules and
regulations.

Article Two
Adoption, Approval and Review of Land Use Plans

SEC. 24. Component cities and municipalities. - Component cities and municipalities
shall have the power and authority to adopt and approve their respective land use plans
through their respective Sanggunians and the enactment of zoning ordinances but subject to
the power of review of their respective provinces.

SEC. 25. Provinces and independent and highly urbanized cities. — Provinces and
independent and highly urbanized cities shall have the power and authority to adopt and
approve their respective land use plans through their respective Sanggunians and the
enactment of zoning ordinances but subject to the power of review of the Administration,
through its Regional Land Use Committees. Until such time that the Administration shall
have created its counterpart committees at the regional level, the Regional Land Use
Committees under the Regional Development Council shall act as the counterpart of the
Administration and shall perform such functions as defined under this Act.

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Article Three
Responsibilities of the National Government Agencies and Local Government Units

SEC. 26. National Base Mapping Program. — A National Base Mapping Program
shall be implemented, coordinated, and monitored through the creation of an inter-agency
technical committee composed of the LUPA, as the lead agency, the National Mapping and
Resources Information Authority (NAMRIA), the Bureau of Soils and Water Management
(BSWM), the Forest Management Bureau (FMB), the Land Management Bureau (LMB), the
Protected Areas and Wildlife Bureau (PAW), the Philippine Institute of Volcanology and
Seismology (PHIVOLCS), the Department of Agrarian Reform (DAR), the National Water
Resources Board (NWRB), and other concerned government agencies.

For purposes of uniformity and standardization, the LGUs, properly assisted by the
appropriate agencies of the national government, shall likewise prepare their respective
territorial maps using scales, symbols, and other indicators to be prescribed in accordance
with this Act.

SEC. 27. National Geo-hazard Mapping Program. — A Geo-hazard Mapping Program
on a national to regional scale shall be implemented jointly through LUPA, by the
PHIVOLCS, the Philippine Atmospheric Geophysical and Astronomical Services
Administration (PAGASA), and the Mines and Geologic Bureau (MGB), in coordination
with the National Disaster Coordinating Council (NDCC), the Regional Disaster
Coordinating Councils, and other concerned government agencies. The program shall include
the generation of indicative geo-hazard zoning maps that will outline areas in the Philippines
prone to ground rupturing, liquefaction, landslides, flooding, river erosion, coastal erosion,
sinkhole collapse, earthquake, tsunami, lava flows, lahar flows, pyroclastic flows, base surge,
and other similar natural hazards.

For purposes of uniformity and standardization and in order to develop a safe
environment, the LGUs shall incorporate and integrate the generated geo-hazard zoning maps
in the preparation of their respective PPFP, Development Master Plans, and CLUPS. Said
‘geo-hazard maps shall serve as guide for all the LGUs in the preparation of their own
hazards-constrained PPFP, Development Master Plans and Land Use Zoning Plans.

SEC. 28. Scope and Nature of Responsibilities of Other National Government
Agencies. — All concerned national government agencies or bodies shall periodically report to
the Administration on the various activities and accomplishments relative to land use.
Likewise, they shall provide their respective sectoral/development plans and render technical
and administrative support, if called upon by the Administration relative to the
implementation of the provisions of this Act.

SEC. 29. Monitoring the Implementation of the Physical Framework and Land Use
Plans. — The local development councils shall submit an annual report on the implementation
of their land use plans and zoning ordinances to the LUPA through the Sanggunian
Panlalawigan or in the case of highly urbanized and independent cities, through their
respective Sanggunians.

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Article Four
Local Land Use Committee

SEC. 30. Local Land Use Committee. — Local government units without existing
Local Development Councils, as mandated by Republic Act No. 7160 shall create their
respective Local Development Councils (LDCs) within one (1) year from the effectivity of
this Act. Henceforth, existing and newly formed LDCs shall create within one (1) year from
the effectivity of this Act or from their creation, as the case may be, a Local Land and Water
Use Committee to assist them in performing such functions as defined in this Act: Provided,
That membership therein must include representatives from concerned NGOs and POs such
as, but not limited to, peasants, fisherfolk, urban poor, and indigenous cultural communities.
Other concerned sectors shall likewise be invited during committee deliberations and public
hearings.

CHAPTER IV
‘SPECIAL AREAS OF CONCERN

Article One
Agricultural Lands

SEC. 31. Priority Areas for Agricultural Development. ~ Prioritizing areas for
agricultural development must be based on the Strategic Agricultural and Fisheries
Development Zones (SAFDZs) as defined by Republic Act No. $435 or the “Agricultural and
Fisheries Modernization Act of 1997.”

SEC. 32. Conversion of Agricultural Lands, — Agricultural lands are deemed
converted to non-agricultural uses upon approval of the application for conversion by the
DAR. Pending the completion of the mapping, the identification of specific areas under the
NPAAAD and SAFDZs, and the approval of the National Physical Framework Plan, there
shall be a moratorium in all applications for conversion of agricultural lands into non-
agricultural uses commencing from the effectivity of this Act.

‘Thereafter, prime agricultural lands and specific types of lands to the extent necessary
for attaining food self-sufficiency in rice and com; and food security in other basic
commodities — as shall be determined by the Department of Agriculture (DA) with
mandatory consultations with LGUs, private sector, NGOs and POs — shalll be protected from
conversion. Moreover, such protection shall include, but not limited to, areas under the
NPAAAD: Provided, That all irrigated and irrigable lands, all lands with existing or potential
for high value crops and all agricultural lands that are ecologically fragile and whose
conversion will result into serious environmental problems shall be given full protection from
conversion. Such protected agricultural lands and areas, mentioned herein, shall be subject to
review every five (5) years by the DA, after the conduct of mandatory public hearings.

Consistent with the State policy on giving priority to the completion of the CARP,
all the remaining lands under the CARP, including those lands covered under the notice of
compulsory acquisition/voluntary offer to sell, production of profit-sharing, and commercial
farm deferment of the CARP, shall likewise be fully protected from any conversion pendi

16


the distribution and installation of the farmer beneficiaries. Thereafter, Section 65 of
Republic Act No. 6657 shall apply.

The DAR shall not give due course to any application for conversion of these
protected areas, mentioned in this section.

SEC. 33. Land Sub-classification by LGUs. - Sub-classification of agricultural lands
to other uses, which shall exclude the protected agricultural lands, as stated in the preceding
section, by the LGUs shall be governed by Section 20 of Republic Act No. 7160 or the
“Local Government Code of 1991.” The result of such sub-classification shall constitute the
actual plan for allocating the future uses of lands within the territorial jurisdictions of LGUs
and is not synonymous to conversion. After the completion of the mapping, the DA and DAR
shall provide the LGUs with a complete list and maps of protected agricultural lands.

Article Two
Other Land Use Conversion

SEC. 34. Conversion of Non-Agricultural Lands. — The approved land use plans and
zoning ordinance of cities or municipalities shall be the basis for authorizing the change of
non-agricultural lands to other uses, such as from residential to commercial and/or industrial
subject however to national guidelines and standards, and subsequently, the National Physical
Framework Plan upon its approval. A public hearing is required before any land use plan or
zoning ordinance is passed. The Sangguniang Panglungsod or Pambayan shall approve any
application for change of land use of non-agricultural lands based on the recommendation of
local land use committees.

Article Three
Coastal Zones

SEC. 35. Classification of Coastal Zones. ~ All public lands in the coastal zones shall
be sub-classified as fishponds, mangrove, fisherfolk settlement and recreation or tourism
areas.

SEC. 36. Guidelines for the Allocation and Utilization of Lands within the Coastal
Zones. ~ The allocation and utilization of lands within the coastal zones shall be guided by
the following:

(a) Areas vegetated with mangroves species shall be preserved for mangrove
production and will not be converted to other uses.

(b) Areas that meet all accepted criteria on elevation, soil type, soil depth,
topography, supply for successful fishpond development, and devoid of any
mangrove stands may be utilized for aquaculture purposes.

(©) Areas sub-classified as mangrove and still suitable for use as such, or due to
environmental conditions need to be preserved as mangrove but such lands devoid
of mangrove stands will not be converted to other uses. The DENR shall ensure
that these lands are reforested within a given period of time.

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(@) Areas that are neither sub-classified as mangrove or fishpond may be devoted for
recreational and/or tourism purposes, provided such undertaking will not result in
environmental degradation.

(©) Areas that are considered as traditional fishing grounds shall be used primarily for
such purpose.

(f) Areas that are allocated for small infrastructure needed by fisherfolk shall be
allowed.

(g) Areas that form part of foreshore lands as defined in this Act, including those that
are under lease agreements or arrangements shall undergo zoning and evaluation
to determine their boundaries and actual sizes and corresponding uses.

(b) Areas that are classified for fisherfolk settlement and housing shall be allocated to:

(J) traditional fishers who are inhabitants of the coastal communities; and

(2) members of legitimate fisherfolk organizations who participate in coastal
resource management initiatives and/or holders of stewardship, lease contracts
and CADC/CADT or any form of property rights arrangements.

SEC. 37. Coastal Zones Land Sub-classification by LGUs. - Sub-classification of
coastal zones to different uses, which shall exclude the protected areas, as stated in this Act,
may be made by the LGUs with prior consultation with local FARMCs.

SEC. 38. Reversion of Fishponds to Mangrove. ~ Fishponds covered by existing
fishpond lease agreement, but, are abandoned or not operating efficiently, and are found
suitable for mangroves shall be allowed to be reverted back as mangrove forest.

Article Four
Production Forest

SEC. 39. Coverage of Production Forest. — Production forests include the residual
dipterocarp forests; pine forests available for logging; rangelands for grazing; areas under
industrial forest plantation management; areas for community forest program’s integrated
social forestry; and other forestlands for special uses excluding critical watersheds as
identified by the DENR, in coordination with concemed LGUs and national government
agencies, and in consultation with concemed sectors. Based on slope classification,
production forests are those within the eighteen (18) to fifty (50) percent slope regardless of
forest cover.

SEC. 40. Criteria for the Sub-classification of Public Lands for Timber Production,
Agro-forestry, Grazing and Pasture, and other Purposes. ~ The sub-classification of public
lands shall be guided by the following:

(a) Geology, geomorphology, soil and slope;

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(b) Classified public lands within the eighteen (18) to fifty (50) percent slope shall be
sub-classified for timber production, agro-forestry, grazing or pasture land
activities, provided that the use of such areas shall not result in soil degradation or
any adverse ecological condition;

(©) Watershed may be subject to multiple uses, provided that the area is utilized,
managed and developed for the primary purpose by which it has been established,
excluding critical watersheds as identified by the DENR, in coordination with
concerned LGUs and national government agencies, in consultation with
concemed sectors;

(@) All public lands above fifty (50) percent slope shall be sub-classified into
appropriate protection or production land uses, provided that such land use shall
not engender significant adverse environmental effects; and

(©) The overall carrying capacity of classified public lands, including their existing
and potential land uses shall serve as the basis for determining their sub-
classification.

Article Five
Mineral Lands

SEC. 41. Guidelines for the Utilization and Allocation of Lands for Mining Purposes.
~To ensure that the objectives of maintaining ecological balance and maximizing economic
returns to mining operations are realized and consistent with Republic Act No. 7942
otherwise known as the “Philippine Mining Act of 1995”, the allocation and utilization of
lands for mining purposes shall be guided by the following:

(a) Mining operations shall be undertaken with due consideration to the utilization,
development and protection of land and other physical resources;

(b) Small-scale mining shall be allowed provided safeguards are instituted to prevent
environmental degradation of the mining site and adjacent areas; and

(©) Mineral reservations that had become non-operational for more than five (5) years
shall be placed under appropriate surface management by the DENR.

SEC. 42. Reversion of Mineral Lands. — All exhausted mineral lands shall
automatically revert to the category of forest lands, unless otherwise the DENR has classified
such areas for other purposes: Provided, however, that in the case of mineral lands with slope
below eighteen (18) percent and outside the areas under protection land use, the DENR shall
recommend to Congress their further classification as alienable and disposable land of the
public domain.

SEC. 43. Criteria for the Classification of Mineral Lands as Alienable and
Disposable Lands. — Exhausted mineral lands shall be classified as alienable and disposable
lands upon the satisfaction of all of the following conditions:

(a) The slope of the exhausted mineral lands shall not be above eighteen (18) percent;

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(b) The rehabilitation of exhausted mineral lands can be accelerated if such areas are
released for other purposes;

(©) The area can promote and sustain economic activities that would support
development of settlements, without incurring significant environmental
problems. The area shall then be subject to an environmental impact assessment,
the findings of which shall serve as basis for making any recommendation on its
re-classification; and

(@) The land is found to be environmentally safe from natural hazards.

Article Six
Industrial Development Sites

SEC. 44. Designation of Industrial Areas. ~ The identification and establishment of
industrial development areas shall conform to the provisions of Republic Act No. 7916,
otherwise known as the Philippine Economic Zone Authority (PEZA) Law, Republic Act No.
7279, otherwise known as the Urban Development and Housing Act of 1992, Republic Act
No. No. 6657, otherwise known as the Comprehensive Agrarian Reform Law, and Section
32, hereof, taking into consideration the following:

(a) Identified network of areas for agricultural development and protected agricultural
areas pursuant to Sections 32 and 33, hereof;

(b) National policies on the regional dispersal of industries and agri-based industrial
development;

(©) Identified growth areas and corridors in the National Development Plan;

(d) National Integrated Protection Area System and other protected areas;

(€) National Urban Development Framework;

(f) Identified Socialized Housing Zones;

(g) National Settlements Development Plan; and

(h) National Infrastructure Development Plan.

Designated industrial development areas shall become an integral part of the land use
plan and zoning ordinance of the city or municipality where these areas are located.

Article Seven
Tourism Development Areas

SEC. 45. Designation of Tourism Development Areas. - The identification, selection
and development of tourism development areas shall be done in consultation and

20


coordination with concemed LGUs, national government agencies, the private sector, and the
affected communities. Consistent with Section 32 hereof, these areas shall likewise include
those covered by legislation and other executive issuances.

Article Eight
Natural Resources

SEC. 46. Reversion of Alienable and Disposable Lands to Forestlands. — Upon the
recommendation of the Secretary of the DENR, duly reviewed and endorsed by the
Administration, and after due consultations with the concemed LGUs and affected parties,
Congress may authorize the reversion of alienable and disposable lands of the public domain
or portions thereof to forestlands

SEC. 47. Determination of Forest Limit. ~ Within one (1) year after the release of the
budget appropriated for the purpose of classifying, reclassifying and delineating all lands of
the public domain, the DENR shall submit the final inventory of lands after which, Congress
shall within a period of one hundred twenty (120) session days, determine by law the specific
limit of forestlands and national parks. Thereafter, such forestlands and national parks shall
be conserved and may not be diminished, except by law.

SEC. 48. Priority Watershed Areas. ~ The DENR, in coordination with the DA, the
LGUs, and other government agencies, including government-owned and controlled
corporations and in consultation with concerned sectors, shall identify and delineate critical
watershed areas that need to be reforested and/or withdrawn from other uses.

SEC. 49. Management and Development of Inland Water Resources. ~ Management
of inland water shall be at the watershed level. The Municipal Development Council with
assistance from the DENR and other concerned agencies shall undertake the preparation for
an integrated land and water use plan. An authority responsible for the formulation and
implementation of the watershed management plan shall be formed at the watershed level.
‘The watershed authority shall be composed of concerned line agencies and community
stakeholders.

Article Nine
Settlements Development

SEC. 50. Town, City and Settlements Development. — The development of town, city
and settlements through the zoning ordinances of cities and municipalities shall be guided by
zoning standards formulated by the LUPA.

SEC. 51. Settlements with Geo-hazard Areas. — Settlements within geo-hazard areas
may be allowed provided that mitigating and/or protective measures are adopted to address
the potential danger or risk to lives and property within such settlements. In coordination with
the concerned agencies of government, the LUPA shall provide assistance to concerned
LGUs and settlers in instituting safety and corrective measures to address the potential danger
or risk.

2


SEC. 52. Protection of Ecological Harmony. ~ To ensure the ecological harmony of
town, city and settlements, certain projects that can alter the present use of a zoned area shall
not be issued a building permit, business permit, and/or development permit unless approved
by the LUPA. The identification of these projects shall be done in coordination with the LGU
concerned.

SEC. 53. Designation of Waste Disposal Sites. ~ Each city or municipality shall
identify, designate and allocate land within their territorial jurisdiction to serve as waste
disposal site within one (I) year from the effectivity of this Act. The LGUs, in coordination
with the DENR and/or competent authority, shall identify solid waste disposal sites in order
to fast track the conduct of environmental impact assessment study and to facilitate
processing of the environmental compliance certificate. This site or area shall be identified in
the city or municipality's land use plan and zoning ordinance. For this purpose, cities and
municipalities shall establish their solid waste management program. Likewise, as provided
under Section 33 of the Local Government Code, cities and municipalities may, through
appropriate ordinances, bind themselves towards the establishment of a common solid waste
‘management program.

Within ninety (90) days from the effectivity of this Act, the DENR, in coordination
with concerned agencies, shall promulgate the necessary guidelines and standards for the
formulation and establishment of solid waste management program by cities and
municipalities, and shall submit the same to the Administration for review and approval.

SEC. 54. Designation of Socialized Housing Sites in Urban and Urbanizing Areas.
Each city or municipality in urban and urbanizing areas shall identify, designate and allocate
land within their territorial jurisdiction to be used as sites for socialized housing pursuant to
Article IV of Republic Act No. 7279. The local government units, in coordination with the
Administration and the HUDCC, shall identify and designate socialized housing sites to
ensure the availability of adequate land to meet the shelter needs of urban poor residents in
their respective city or municipality. These socialized housing sites shall be identified and
designated as socialized housing zones in the city’s or municipality's land use plan and shall
be established through appropriate zoning ordinances.

Within ninety (90) days from the effectivity of this Act, the Administration, in
coordination with concemed agencies, pursuant to HUDCC Resolution No. 521, Series of
1992, Executive Order No. 124, Series of 1993 and other pertinent guidelines on the matter,
shall promulgate the necessary guidelines for the identification and designation of socialized
housing sites. All cities and municipalities in urban and urbanizing areas shall identify and
designate their socialized housing sites within one (1) year from the effectivity of this Act
and must submit the list of these sites and their respective hectarage to the HUDCC. These
sites shall be used exclusively for housing that qualifies as socialized housing as defined in
Republic Act No. 7279.

SEC. 55. Zonification of the Identified Site for Socialized Housing. ~ The identified
sites for socialized housing shall be located in residential zones, identified by the city or
municipality’s Zoning Ordinance duly approved by the HLURB. However, for cities and
municipalities where the identified sites are not within the said residential zones, the location
shall be within the priority sites and those which conform with the suitability criteria as
defined in Section 6.3 and 6.4 of the Guidelines in HUDCC Resolution No. 521, Series of
1992, The identified sites shall be zoned as socialized housing zones as defined herein.

22


The current Zoning Ordinance of the LGUs therefor shall be reviewed and revised
such that the socialized housing component shall be integrated.

SEC. 56. Valuation of Lands for Socialized Housing. — Equitable land valuation
guidelines for socialized housing shall be set by the Department of Finance (DOF) on the
basis of the market value reflected in the zonal valuation, or in its absence, on the latest real
property tax declaration. For sites already occupied by qualified beneficiaries under Republic
‘Act No. 7279, and sites identified as Socialized Housing Zones as defined in this Act, the
DOF shall factor into the valuation, the blighted status of the land as certified by the local
‘government unit or the National Housing Authority.

SEC. 57. Urban Forest or Green Space. ~ Each city or highly urbanizing municipality
shall identify, designate, and allocate lands owned by the city or municipality as urban forest
or green space, based on the guidelines and standards to be issued by the DENR and
approved by the Administration.

Article Ten
Infrastructure Development

SEC. 58. Allocation and Use of Land for Infrastructure Development. — Land,
whether public or private, shall be allocated and utilized for priority infrastructure projects
that are supportive of national or local development objectives. The NEDA, in consultation
with the concerned national government agencies (NGA), the LGUs and the private sector
shall identify and periodically review, update and/or revise the list of priority infrastructure
projects. In determining and evaluating the list of priority infrastructure projects,
consideration shall be given to those tha

(a) Respond to immediate and vital requirements of the national economy with
priority on food security and self-sufficiency concerns;

(b) Upgrade existing facilities to international standards;
(c) Address the need for sustainable settlements development; and
(d) Help mitigate the destructive effects of natural disaster-causing phenomena or

those that shall serve as alternative to existing infrastructures found in natural
hazard-prone areas.

Provided that, the provision and implementation of infrastructure support shall be made
compatible with existing environmental conditions and the physical, whether natural or man-
‘made, and cultural character of the area. Mandatory public consultations shall be held prior to
the conduct of all infrastructure projects that will necessarily involve dislocation or
displacement of people living in the area; Provided further, that the concerned NGA that will
implement the infrastructure projects in areas occupied by the urban poor and in identified
socialized housing zones shall follow the rules on mandatory consultations, as stated in the
provisions of the “Local Government Code of 1991”, as well as the rules on just and humane
demolitions or evictions under Section 28 of the “Urban Development and Housing Act of

23


1992”and the said NGA shall submit a report complying with the aforementioned provisions
of law to the concerned LGU prior to project implementation

SEC. 59. Infrastructure Projects within Environmentally Critical Areas. —
Construction of priority infrastructure projects within protected, hazard-prone, or
environmentally critical areas shall be allowed provided that mitigating and/or preventive
measures are adopted to address the potential adverse economic, socio-cultural and
environmental impacts that will emanate from these infrastructure projects subject to the
findings and recommendations of a feasibility study and/or and environment impact
assessment in accordance with Presidential Decree Nos. 1586 and 4846 for areas of unique
historical, archaeological, or scientific interest.

Existing infrastructures found to be improperly located as well as those posing threats
to the environment, integrity of historical, archaeological, or scientifically significant areas,
or impinging on critical ecosystems may be terminated immediately, or gradually phased out
and relocated, or maintained up to their life span, subject however to mitigating measures:
Provided, that the concerned NGA that will implement the infrastructure projects in
socialized housing zones are mandated to follow the rules on mandatory consultations, as
stated in the provisions of the Local Government Code, as well as the rules on just and
humane demolitions or evictions under Section 28 of Republic Act No. 7279: Provided
further, that said NGA shall submit a report complying with the aforementioned provisions of
law to the concerned LGU prior to project implementation.

The DPWH, DOE, DOTC, in coordination with the concemed NGAs, the LGUs and
the private sector shall identify and assess all major infrastructure projects in environmentally
critical areas and submit their recommendations to the LUPA within six (6) months from the
effectivity of this Act.

Article Eleven
Fisheries Preservation

SEC. 60. Disposition of Public Lands for Fishpond. — Upon effectivity of this Act, no
fishpond lease agreement (FLA) shall be issued for tidal swamps, mangroves and other
swamps, marshes, ponds, foreshore land and coastal areas within public lands including those
presently declared available for fishpond development; Provided, however, that existing
fishponds covered by FLAs shall be exempted from this provision.

The Administration, in coordination with DENR, DA, FARMCs and LGUs shall set
aside a portion of available public lands for fish propagation, fish sanctuary, conservation and
ecological purposes and fisherfolk settlement areas.

SEC. 61. Immediate Restoration of Converted Mangrove Areas. ~ The
Administration, in coordination with FARMCs and other concerned agencies shall
immediately take steps in the restoration of all abandoned, undeveloped and underutilized
fishponds to their original mangrove state.

SEC. 62. Tourism and Recreation Zone. — The designation of areas for tourism and

resorts near to, or over fishery areas or ports thereof, shall be with the consent of concerned
LGUs and FARMCs, subject to the policies and guidelines of this Act.

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Article Twelve
Education and Value Formation

SEC. 63. Mandatory Curriculum Content. ~ In order to create a well-informed,
responsive and critical citizenry who value the protection, conservation and development of
the country’s limited land and other physical resources, the State shall mandate the inclusion
of sustainable land use education, or any subject related thereto in the curricula of primary,
secondary and tertiary education.

SEC. 64. Information and Education Campaign. — The Administration shall
coordinate a nationwide education information campaign in land use and physical planning to
be implemented by local and national government agencies. The DILG and concerned
agencies shall formulate and implement a land use management capability-building program
for national and local government officials, community leaders, NGOs, POs, religious sector,
and the general public,

CHAPTER V
INCENTIVES, SANCTIONS AND PENALTIES

Article One
Incentives and Awards

SEC. 65. Formulation of a System of Incentives and Awards. ~The Administration
shall come out with a system of incentives and awards to LGUs that regularly update their
Comprehensive Land Use Plans and/or Zoning Ordinances within the prescribed period as
follows:

(a) Provinces, Highly Urbanized Cities, and Independent Cities
years or less; and

once every ten (10)

(b) Component Cities and Municipalities ~ once every five years or less.

SEC. 66. Priority in Giving Technical Assistance to LGUs. ~ National government
agencies shall give priority to cities and municipalities with approved development plans or
zoning ordinances in terms of providing technical assistance and other forms of support as
may be deemed necessary.

Article Two
Sanctions and Penalties

SEC. 67. Fine on Non-completion and Non-commencement of Development of
Agricultural Lands with Approved Order of Conversion. — Any landowner and/or his
designated developer or duly authorized representative, who fails to commence and/or
complete the development of agricultural lands with approved order of conversion shall be
penalized, jointly and severally, with any of the following fines based on the zonal value of
the land at the time the fine is imposed:

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(a) On failure to commence within one (1) year from the date of the order of
conversion:

(1) Six percent (6%) for the first three hectares;
(2) Fifteen percent (15%) for the next three hectares; and
(3) Thirty percent (30%) for the remaining area.

Provided, that in such case, the order of conversion shall be revoked, by operation
of law, and revert back to its original use as agricultural land and shall be covered
by the DAR through compulsory acquisition for distribution to qualified
beneficiaries.

(b) On failure to complete sixty percent (60%) of the approved conversion time with a
specified time frame, the DAR shall automatically issue an order revoking the
conversion plan on the undeveloped portion, which shall revert back to its original
use as agricultural land. The said land shall be covered under the CARP and
processed for land distribution as soon as possible.

SEC. 68. Authority to Impose Fine. — The DAR shall impose the penalty provided
under the preceding section.

SEC. 69. Withdrawal of Local Development Permits and/or Licenses. ~ Upon receipt
of notice from the DAR, the concemed agencies, city or municipality shall withdraw and/or
revoke any development permit and/or other licenses that may be necessary to develop the
agricultural land subject of conversion.

SEC. 70. Utilization of Fines. ~ The fines collected under Section 67 hereof shall
automatically accrue to the Agrarian Reform Fund consistent with the provision of Republic
‘Act No. 6657.

SEC. 71. Failure to formulate, enforce, and/or implement the Comprehensive Land
Use Plans (CLUPs) and Zoning Ordinances (ZOs). — Consistent with due process, the
‘Administration in coordination with the DILG shall investigate, review and recommend the
filing of charges against local chief executives and other local officials and employees
responsible for the formulation, enforcement, and/or implementation of the CLUPs in case of
any of the following:

(@) Failure to implement and enforce the CLUP and/or ZO due to negligence of duty;
(b) Failure to provide appropriate budgetary allocation to effect its implementation;

(©) Failure to complete the preparation of the CLUP despite the availability of funds,
resources, and support by the Sanggunian concerned; and

(d) Failure of the CLUPs and/or ZOs to conform to the prescribed national guidelines

and standards as provided in Section 5, hereof and thereafter, with the National
Physical Framework Plan as stated in Section 9, hereof.

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Any public official or employee, regardless of whether or not elected or appointed or
holding office or employment in a casual, temporary, holdover, permanent or regular
capacity, found to be responsible for any of the foregoing acts, after due notice and hearing
by the appropriate body or agency, shall be punished with forfeiture of salaries and allowance
and suspension from:

(1) Six (6) to nine (9) months, in case of non-implementation of the CLUP and/or ZO;
or

(2) Three (3) to six (6) months, in case of non-completion of the CLUP and/or ZO.

SEC. 72. Premature or Illegal Conversion. ~ Paragraph 2, Section 11 of Republic Act
No. 8435, otherwise known as the “Agricultural and Fisheries Modernization Act of 1997”, is
hereby amended to read as follows:

“Any person found guilty of premature or illegal conversion as defined in this Act
shall be penalized with imprisonment of SEVEN (7) TO TWELVE (12) YEARS or a fine
equivalent to FIFTY PERCENT (0%) OF THE MARKET VALUE OF THE
SUBJECT LAND, or both, at the discretion of the court and accessory penalty of forfeiture
of the land and any improvements thereon: PROVIDED THAT IF THE OFFENDER IS A
JURIDICAL PERSON, THE PENALTY SHALL BE IMPOSED ON THE
RESPONSIBLE OFFICER THEREOF.”

In addition, the DAR may impose the following penalties, after determining, in an
administrative proceeding, that violation of this Act has been committed:

(a) Cancellation or withdrawal of the authorization for land use conversion; and

(b) Blacklisting or automatic disapproval of pending and subsequent conversion
applications that may be filed with the DAR by the same persons, natural or
juridical.

SEC. 73. Person(s) abetting illegal conversion. - Any person initiating, causing,
inducing, or abetting illegal conversion shall, upon conviction, be imprisoned for not less
than seven (7) years but not more than twelve (12) years and pay a fine of not less than two
hundred fifty thousand (P250,000.00) pesos, or both at the discretion of the court: Provided,
that if the offender is a public official or employee, the penalty shall, in addition thereto,
include perpetual disqualification to hold public office and forfeiture of all his/her benefits
and entitlements accruing to his public position

SEC. 74. Imposition of Penalty for Reclassification of Protected Agricultural Lands. ~
Any person initiating, causing, inducing, or abetting the reclassification of protected
agricultural areas as defined in Section 32 hereof, into non-agricultural uses shall be punished
with imprisonment of not less than seven (7) years but not more than twelve (12) years and a
fine of not less than two hundred fifty thousand (P250,000.00) pesos, or both at the discretion
of the court: Provided, that if the offender is a public official or employee, the penalty shall,
in addition thereto, include perpetual disqualification to hold public office and forfeiture of
all his/her benefits and entitlements accruing to his public position; Provided, further, that if
the offender is a juridical person, the penalty shall be imposed on the responsible officers
thereof.

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CHAPTER VI
MISCELLANEOUS, TRANSITORY AND FINAL PROVISIONS.

Article One
Mandatory Review

SEC. 75. Mandatory Review Every Seven Years. — Congress shall undertake a
mandatory review of this Act at least once every seven (7) years from the effectivity of this
Act, or as often as it may deem necessary to ensure that land use policies and guidelines
remain responsive to changing circumstances. For this purpose, Congress may call on the
Administration to undertake the necessary researches, consultations and public hearings.

Article Two
Transitory Provisions

SEC. 76. Convening of the Administration. ~ Within thirty (30) days after the
effectivity of this Act, the Executive Secretary, as Chairman, shall convene the LUPA, The
Deputy Director General for Land Use of the NEDA and the Chief Executive Officer of the
HLURB shall sit temporarily as ex-officio members of the LUPA Executive Board until such
time that a regular Administrator shall have been appointed by the President.

SEC. 77. Preparation of Implementing Rules and Regulations and other immediate
tasks. — Within one hundred twenty (120) days from the effectivity of this Act, the
Administration, in coordination with the Senate and House Committees on Natural
Resources, Agriculture, Agrarian Reform, Housing and Urban Development, Rural
Development, National Cultural Communities, Appropriations and Ways and Means, shall
undertake the preparation of the implementing rules and regulations of this Act with
mandatory consultations with social development NGOs and POs and the private sector.

Within the same period, the Administration shall also review existing rules and
regulations on land use, and based therefrom, revise such rules and regulations, or cause
concemed agencies to revise them for the efficient and effective implementation of the
provisions of this Act. All concerned national government agencies and bodies shall inform
the Administration of the status of the implementation of such rules and regulations.

‘The Administration shall likewise undertake the organization of its units and create
special task forces and committees to assist it in its undertakings.

Within one (1) year from the effectivity of this Act, the Administration shall review
and revise, if appropriate, all existing national planning guidelines and standards to facilitate
the exercise of land use planning and zoning functions of local government units.

All existing rules and regulations shall be in force and effect unless revoked by the
Administration or other competent authorities.

SEC. 78. Effectivity of the Reconstitution of the National Land Use Committee

(NLUC) into the LUPA. — Until such time that the LUPA has been organized and fully
operational, the NLUC and the HLURB shall continue exercising their powers and functions

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and their personnel shall receive the same salary, emoluments and privileges. Hiring,
separation, replacement and appointment of personnel shall be in accordance with exi
Civil Service rules and regulations: Provided, however, that preferential consideration shall
be given to existing officers and employees of the NLUC and HLURB who possess the
appropriate and necessary skills and eligibility and meets the qualification standards for the
positions.

SEC. 79. Appropriations. — The amount necessary to carry out the provisions of this
‘Act shalll be included in the General Appropriations Act of the year following its enactment
into law and thereafter.

In case such amount is insufficient, the Administration may request for augmentation
of funds from the Department of Budget and Management (DBM). Thereafter, the
Administration shall be included in the General Appropriations for the next year.

Congress shall appropriate an amount to the DENR necessary for it to conduet the
classification and demarcation activities needed in the final inventory of all lands as provided
herein.

SEC. 80. Review of existing land use plans. — Provinces, cities and municipalities with
existing land use plans shall review, revise, reconcile and harmonize the same with the
guidelines and standards set forth under this Act.

Article Three
Final Provisions

SEC. 81. Repealing Clause. — Section 9 of Republic Act No. 8435 and all other laws
and administrative issuances are hereby modified by Section 32 hereof. All other general and
special laws, acts, decrees, executive orders, proclamations, administrative rules and
regulations, or part thereof, inconsistent with the provisions of this Act are hereby repealed or
modified accordingly.

SEC. 82. Separability Clause. — If for any reason any section or provision of this Act,
or any portion thereof, or the application of such section, provision or portion to any person,
group or circumstances is declared invalid or unconstitutional, the remainder of this Act or
the application of such section, provision or portion thereof to other persons, groups or
circumstances shall continue to be in full force and effect.

SEC. 83. Effectivity Clause. ~ This Act shall take effect fifteen (15) days after its
publication in at least two (2) newspapers of general circulation.

Approved.

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