Republic of the Philippines

HOUSE OR REPRESENTATIVES RECEIVED
Quezon City, Metro Manila ff yyig. MAR.O7 2017
i

Seventeenth Congress
First Regular Session

? BILL NO. 5206

HOUS!

Introduced by Representative Sharon S. Garin

EXPLANATORY NOTE

The National Irrigation Administration (NIA) is authorized to collect
irrigation service fees (ISF) pursuant to the following laws: (a) RA 3601,
Section 2, Paragraph C; (b) PD 552, Section 2, Paragraph B; and (c) PD 1702,
Section 1, Paragraph B. Such fees are used for the operation and maintenance of
all existing national irrigation systems, pump irrigation systems, and communal
irrigation systems, It is also used to defray the NIA’s corporate operating budget
for personal services, maintenance and other operating expenses (MOOB) and
capital outlay requirements.

According to the farm

group Kilusan Mangbubukid ng Pilipinas
(KMP), NIA charges farmers from P1,300 to more than P6,000 per hectare per
cropping, And although the fees may not be very high, it is nevertheless a huge
burden for the farmer beneficiaries, particularly the small and marginalized
farmers who are dependent on small-scale subsistence farming as their primary
source of income.

According to the NIA, the ISF ra
3.4% to 6.1% pr in turn leads to an incre:
agricultural goods and mak:
other South East Asian nations like Vietnam and Thailand, which heavily
subsidize their agricultural sector. With the inevitability of ASEAN integration
ahead, the Philippine market will be open to the influx of cheaper products from
neighboring countries. The government must then do everything in its power to
protect the interests of the Filipino farmer and shield them from the incoming
shift to regional economic integration.

s the cost of production of farmer
in the price of loca



Greater emphasis is placed upon the small and marginalized farmers for
they are the ones that truly need the government’s full assistance. Of lesser
concern are large farming corporations and other entities that have more than
cnough resources and sufficient capacity to pay the corresponding fees. This bill
merely asks for selective exemption, and not total abolition, so as not to
completely deprive the NIA of revenues, thereby crippling its operations.

Granting exemptions can also ease the NIA’s work in collecting fees,
letting it focus more on its other duties like the construction, restoration, and
rehabilitation of national irrigation systems, and the provision of technical

assistance in the planning, design, and in the operation and maintenance of
communal irrigation systems.

The issue of irrigation service fees has been brought up and hotly debated
upon, numerous times in the past. It is high time that the government take
serious steps to address this issue and provide an equitable solution that would
benefit the proper parties without compromising the viability of the country’s
irrigation systems.

For the foregoing reasons, the passage of this bill is earnestly sought.

SHA » GARIN
AAMBIS-Owa Party-list


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Republic of the Philippines
HOUSE OR REPRESENTATIVES
Quezon City, Metro Manila

Seventeenth Congress
First Regular

HOUSE BILL NO. 5206

Introduced by Representative Sharon S. Garin

AN ACT
EXEMPTING QUALIFIED BENEFICIARIES PARTICULARLY
SMALL AND MARGINALIZED FARMERS FROM PAYING
IRRIGATION SERVICE FEES AND OTHER SIMILAR OR RELATED
FEES

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

SECTION 1. Declaration of Policy — It is the policy of the State to
pursue a comprehensive agricultural program to enhance agricultural produetion
and improve the national economy. In line with this, the State shall ensure that
small and marginalized farmers have a greater participation and contribution to
the country’s agricultural output. It is therefore the duty of the State to exempt
them from paying irrigation service fees and other such collections to allow

them to fully optimize their agricultural and economic potential.

SEC 2. Exemptions — Qualified beneficiaries shall be exempt from the

collection of irrigation service fees (ISF) and such other similar or related fees

for the usage of irrigation systems built, operated and maintained by the


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Nauonal Jrigation Administration (NIA), the Department of Agriculture (DA),
or any other government agencies, or those turned over and maintained or
operated by farmer’s organizations, irrigators’ associations or Local
Government Units (LGUs). ‘This exemption shall also apply to the collection of
back accounts and the corresponding penalties thereof,

SEC 3. Duty of the National Irrigation Administration (NIA) ~ The

National Irrigation Administration (NIA), in coordination with the Department

of Agriculture (DA), is hereby mandated to create a system to determine
qualified beneficiaries that shall be granted exemption from the payment of
irrigation service fees (ISF). In determining qualified beneficiaries, preference
shall be given to small and marginalized farmers, Small and marginalized
farmers, as used in this Act, shall refer to natural persons dependent on small-

scale subsistence farming as their primary source of income.

4. Disqualified entities — Multinational companies and large farming
businesses, according to the standards set by the National Irrigation

Administration (NIA) shall not be selected as qualified beneficiaries.

SEC 5. Implementing Rules and Regulations — Within sixty (60) days
from the effectivity of this Act, the National Irrigation Administration (NIA), in
coordination with the Department of Agriculture (DA) and after consultations

with directly affected stakeholders, shall promulgate the necessary rules and

regulations to effectively implement the provisions of this Act.


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SEC 6. Appropriations — Additional funding shall be allocated to the
National Irrigation Administration (NIA) to be used for personal services and

maintenance and other operating expenses, and shall be sourced from the

General Appropriations Act to offset the loss of income from the granting of

exemptions in accordance to this Act.

SEC 7. Repealing Clause — All other laws, decrees, executive ordet

ssuances, rules and regulations, or part thereof inconsistent with this Act are
hereby likewise repealed or amended accordingly.

SEC 8. Separability Clause ~ If, for any reason, any section or provision
of this Act is declared unconstitutional or invalid, the other sections or
provisions not affected thereby shall remain in full force and effect.

SEC 9. Effectivity - This Act shall effect fifteen (15) days after its
publication in the Official Gazette or in at least two (2) newspapers of general
circulation.

Approved,