Republic of the Philippines 3

House of Representatives ar) 40 om
Queson City, Metro Manila ost

NINETEENTH CONGRESS . G
First Regular Session 4

HOUSE BILL NO. 1 83 wt

INTRODUCED BY REPRESENTATIVE AURELIO "DONG" D. GONZALES, JR.

AN ACT AMENDING, AMONG OTHERS, SECTIONS 4, 5, AND 6 OF REPUBLIC ACT NO. 10752
OTHERWISE KNOWN AS “THE RIGHT-OF-WAY ACT

EXPLANATORY NOTE

Timely completion of infrastructure projects is important. Delay in the implementation of
construction, for most part, adds in the congestion of traffic, which the Government sought to address,
This detay does not only hamper national growth and development but exposes the government to
unnecessary expenses which can be avoided, otherwise prevented. Construction laws, therefore, are
needed to be responsive for the prompt accomplishment of Infrastructure Projects throughout the
country,

The enactment of Republic Act No. 10752 or the Right-of-Way Act was expected to address
most, if not all right-of-way concerns for timely completion/implementation of government's
infrastructure projects. The law was supposed to cut-short the process of acquisition by introducing
major changes from RA No. 8974. For instance, the present law allows payment of current market
value, rather than zonal value, as determined by a Government Financial Institution or an independent
appraiser, duly accredited by the Bangko Sentral ng Pilipinas (BSP) or a professional association of
appraisers recognized by the BSP, procured by the implementing agency through a competitive
bidding,

While the purpose of RA No. 10752 is novel, some provisions thereof are not responsive to
the need of the Implementing Agency for the immediate delivery of construction site. After the law was
approved on March 7, 2016, a slow progress in ROW acquisition was presently experienced due to
the difficult compliance of the strict requirements of the law.

As stated, the engagement of appraisal services requires the observance of RA No. 9184.
Under the said law, the recommended earliest possible time for procurement of consulting services is
at least thirty-six (36) days. The period required by the procurement law is seen to be an additional
burden to the ROW acquisition which must be immediately rectified at the early stage of the effectivity
‘of RA No. 10752, not to mention other flaws and issues arising from the new law such as appraisal
results lower than zonal value based from the new standards set by the new amendment, which do
not serve the purpose thereof.

Compensation of owners of public utilities (electric, water, telephone, etc.) is also sought to be
resolved by the author, considering that its relocation is a primary ROW problem causing undue delay
in the implementation of infrastructure projects.

Since ROW acquisition is crucial for timely completion of infrastructure projects, there is aneed
to amend RA No. 10752 to cary out the government’s need to fully acquire project sites within the
shortest possible time.

In view thereof, the passage of this bill is earnestly fequested

DONG” GONZALES, JR.
3" District, Pampanga


CONGRESS OF THE PHILIPPINES
NINETEENTH CONGRESS
First Regular Session

HOUSE BILL NO.

INTRODUCED BY REPRESENTATIVE AURELIO "DONG" D. GONZALES, JR.

AN ACT AMENDING, AMONG OTHERS, SECTIONS 4, 5, AND 6 OF REPUBLIC ACT NO.
10752 OTHERWISE KNOWN AS “THE RIGHT-OF-WAY ACT

SECTION 1. The provisions of Section 4 (a) and (b) of Republic Act NO. 10752 relative to
compensation of lands registered under the Commonwealth Act No. 141 are hereafter repealed
and Section 29, and Chapters XI and XII of said Commonwealth Act is hereby reinstated,

SEC. 2. Section 5(a) is hereby amended and shall read by omitting the provision for independent
appraiser as stated as follows:

SEC. 5, Rules on Negotiated Sale. - The implementing agency may offer to
acquire, through negotiated sale, the right-of-way site or location for a national
government infrastructure project, under the following rules

(a) The implementing agency shall offer to the property owner concerned, as
‘compensation price, the sum of.

(1) The current market value of the land or its zonal valuation
whichever is higher;

(2) The replacement cost of structures and improvements therein;
and

(3) The current market value of crops and trees therein.

To determine the appropriate price offer, the implementing agency may
engage the services of a government financial institution with adequate
experience in property appraisal.

if the property owner does not accept the price offer, the implementing agency
shall initiate expropriation proceedings pursuant to Section 6 hereof

The property owner is given thirty (30) days to decide whether or not to accept
the offer as payment for his property. Upon refusal or failure of the property
‘owner to accept such an offer or fails anchor refuses to submit the documents
necessary for payments, the implementing agency shall immediately initiate
expropriation proceedings as provided in Section 6 herein

YOK XXX XXX,

(c) With regard to the taxes and fees of the transfer of title of the property to
the Republic of the Philippines through negotiated sale, the implementing
agency shall pay, forthe account of the seller, documentary stamp tax, transfer
tax and registration fees, while the owner shall pay any unpaid real property
tax. The seller or owner of the property shall be exempted from payment
of Capital Gains Tax as to the affected portion of the property subject of
acquisition.

XO XX XXX


SEC. 3. Section 6 (a)(2) and (a)(3) providing the replacement cost of the improvements and
market value of crops and trees as jurisdictional requirements for filing of expropriation cases are
hereby repealed accordingly.

SEC. 4. Compensation of Utilities Affected by Right-of-Way Acquisition. — Utility Companies
shall not be entitled to recover compensation in the event of relocation of Electric, Water and
Communication Facilities including cable lines and similar public utilities affected by the
acquisition of right-of-way unless otherwise provided by law.

SEC. 5. Implementing Rules and Regulations. - The Committee for the issuance of
Implementing Rules and Regulations as stated in Section 13 of RA 10752 is hereby directed to
amend the IRR within thirty (30) days upon the effectivity hereof to incorporate the changes stated
in this Act.

SEC. 6. Separability Clause. — The provisions of this Act are hereby declared to be separable
and if any clause, sentence, provision or section of this Act or its application thereof to any person
or circumstance should, for any reason, be held invalid or unconstitutional, such invalidity or
unconstitutionality shall not affect the other provisions or application of this Act which can be given
force and effect.

‘SEC. 7. Repealing Clause. - All laws, decrees, charters, executive orders, administrative orders,
proclamations, rules and regulations, or parts thereof insofar as they are inconsistent with the
provision of this Act are hereby repealed or modified accordingly.

SEC. 8. Effectivity. - This Act shall take effect fifteen (15) days after its complete publication in
the Official Gazette and in at least two (2) newspapers of general circulation.

Approved,