FIFTEENTH CONGRESS )
REPUBLIC OF THE PHILIPPINES )
FIRST REGULAR SESSION

HOUSE OF REPRESENTATIVES

Introduced by Representative Rufus B. Rodriguez and
Representative Maximo B. Rodriguez, Jr.

45

House Bill No.
EXPLANATORY NOTE

This bill was originally introduced as House Bill Nos. 2184 and 2189 by the
undersigned Rufus B. Rodriguez during the Fourteenth Congress. It was approved by
the Committee on Natural Resources, Committee on Appropriations and Committee
‘on Ways and Means as substitute House Bill No. 5792 under Committee Report No.
1671, dated January 20, 2009. It was approved on 2 reading on February 24, 2009
and 3rd reading on March 3, 2009. It was transmitted to the Senate on March 11, 2009
where it was not acted upon.

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

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

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


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

1

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

Multi-sectoral participation.- The participation of all sectors of
society in sustainable forestland conservation, management,
and development shall be promoted. Equitable sharing of the
benefits derived from forestlands shall be ensured at all times;
Community-based forest management (CBFM) as a principal
strategy. Vesting access rights and responsibilities to forest
resident families, local communities, and indigenous peoples to
undertake the management and development of appropriate
forestland resources on a sustainable basis shall have
precedence over other strategies;

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

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

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

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

There have been a wide range of players involved in forest rehabilitation in
the Philippines in the last few decades including the national government, NGOs,
private companies, LGUs, local communities and private land owners. Ensuring long-
term sustainability appears to be one of the biggest challenges facing many of the

initiatives.


This proposed measure aims to ensure that our forests meet the needs of the
present generation without compromising the ability of the future generations to meet
their own needs.

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

RUFYS B. RO} UEZ

Why

MAXIMO B. RODRIGUEZ, JR.


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

HOUSE OF REPRESENTATIVES
House Bill No.

Introduced by Honorable Rufus B. Rodriguez and
Honorable Maximo B. Rodriguez, Jr.

AN ACT PROVIDING FOR SUSTAINABLE FOREST
MANAGEMENT

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

CHAPTER I
BASIC FORESTRY POLICIES
SECTION 1. Short Title. - This Act shall be known as the "Sustainable
Forest Management Act of 2010."

SEC. 2. Basic Policies. - In conformity with the provisions of the
Constitution to promote the general welfare and social justice in all phases of
national development, to protect and advance the right of the Filipino people
to a balanced and healthful ecology in accord with the rhythm and harmony
of nature, and to conserve and develop the patrimony of the nation, the State
hereby adopts the following policies relative to the conservation and
management of forests and their resources:
(a) The specific limits of forestlands after these have been fixed and
demarcated shall not be altered except through an Act of Congress;
(b) The use of forest resources shall bear a social function,
responsibility, and accountability to promote the common good;
(©) Integrated and sustainable, focusing on the resource and the people,
who manage, conserve, and benefit from it, shall be the guiding


In

pursued:

principle in the management, protection, conservation, and
development of forest resources.

carrying out the above policies, the following strategies shall be

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

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

iii, Community-based forest management (CBFM) as a principal
strategy. - Vesting access rights and responsibilities to
dependent families, local communities, and indigenous peoples
to undertake the management and development of appropriate
forestland resources on a sustainable basis shall be the principal
strategy;

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

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

the income of communities concerned;


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

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

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

(a) “Agroforestation” shall refer to the planting of trees or the artificial
establishment of a forest in areas that were not previously forested.

(b) "Agroforestry" shall refer to a strategy for the sustainable
management of lands which increases their overall productivity by
properly combining agricultural crops and/or livestock with forest
crops simultaneously or sequentially through the application of
management practices which are compatible with the local climate,
topography, slope, soil, as well as the cultural patterns or
customary laws of the local population.

() “Agricultural Lands" shall refer to lands of the public domain which
have been delimited, classified and declared as such, and are
available for disposition under the provisions of Commonwealth
Act No. 141, as amended, otherwise known as the Public Land Act.

(4) “Ancestral Domain" shall refer to all areas generally belonging to
indigenous cultural communities or indigenous peoples
(ICCs/TPs) as defined in Republic Act No. 8371 or the Indigenous
Peoples Rights Act (IPRA) of 1997.

(e) “Ancestral Lands” shall refer to lands occupied, possessed and
utilized by members of the ICCs/IPs as defined in the IPRA.
("Biological Diversity or Biodiversity" means the variability among

living organisms including, inter alia, terrestrial, marine and other

aquatic ecosystems and the ecological complexes of which they are


part. This includes diversity within and between species and
ecosystems.

(g) “Buffer Zones” shall refer to identified areas outside the boundaries
of and immediately adjacent to protected areas pursuant to Section
8 of Republic Act No. 7586 or the National Integrated Protected
Areas System Act of 1992 (NIPAS Act) that need special
development control in order to avoid or minimize harm to the
protected area.

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

() "Commercial Logging" shall refer to the cutting or felling of trees for
the purpose of disposing of the cut or felled logs for economic
gains beyond survival and livelihood means.

() "Communal Forest" shall refer to a tract of forestland set aside and
established for and under the protection, administration, and
management of a city, municipality, or barangay as a source of
wood material for fuel, shelter, and manufactured products; as
source of water for the community; and area for ecotourism
and/or environmental protection or socio-economic projects of
local government units consistent with sustainable development.

(K) "Community-Based Forest Management Strategy" shall refer to all
organized efforts of government to work with forest dependent
families and communities inside and adjacent to public forestlands
with the intent to empower them and entrust to them the
protection, rehabilitation, management, conservation, and
utilization of the forestlands and their natural resources.

() "Conservation" shall refer to planned protection and management of

forests and their resources so as to prevent waste and ensure future

use.


(m)

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(0)

(P)

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"Conveyance" shall refer to any vehicle, vessel, device or animal

used in gathering or transporting forest products.
"Co-production Agreement" shall refer to an agreement entered
into by and between a qualified person and the government for the
former to develop, utilize, and manage, consistent with the
principles of sustainable development, a private land or portion of
a forestland wherein both parties agree to provide inputs and
share the products or their equivalent cash value.

“Critical Watershed” shall refer to a drainage area of a river system
supporting existing and proposed hydroelectric power, irrigation
works or existing water facilities needing immediate protection
and rehabilitation to minimize erosion and improve water yield.

“Department” shall refer to the Department of Environment and
Natural Resources.

“Denuded Forestlands" shall refer to former forested lands but are
now devoid of trees due to human activities.

"Degraded Forests" shall refer to all forest lands containing less than
five (5) square meters in basal area per hectare of commercial tree
species with diameters at breast height or diameter above buttress
of less than sixty-five (65) centimeters,

“Environmentally Critical Project” shall refer to a project or program
that has high potential for significant negative environmental
impact.

“Environmental Compliance Certificate (ECC)" shall refer to the
document issued by the Department certifying that a proposed
Project or undertaking will not cause a significant negative impact
on the environment; that the proponent has complied with all the
requirements of the Environmental Impact Assessment (EIA)
System in accordance with Presidential Decree No. 1151 or the
Philippine Environment Policy and Presidential Decree No. 1586,
establishing an Environmental Impact Statement System; and that


(u)

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(w)

the proponent is committed to implement its approved
Environment Management Plan found in the Environmental
Impact Statement (EIS) or mitigation measures identified in the
Initial Environmental Examination (IEE).

“Environmental Impact Assessment (EIA)" shall refer to the process
of predicting the likely environmental consequences of
implementing a project or undertaking and designing the
appropriate preventive, mitigating, or enhancement measures.

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

"Forest" shall refer to land with tree crown cover or equivalent
stocking level of more than ten percent (10%) and an area of more
than half a hectare (0.5 ha.). The trees should be able to reach a
minimum height of five meters (5m.) at maturity in sifu. It may
consist either of closed forest formations where trees of various
storeys and undergrowth cover a high proportion of the ground, or
open forest formation with a continuous vegetation cover in which
tree crown cover exceeds ten percent (10%). Young natural stands
and all plantations established for forestry purposes which have
yet to reach a crown density of ten percent (10%) or tree height of
five meters (5 m) are included under forest, as are areas normally
forming part of the forest area which are temporarily unstocked as
a result of human intervention or natural causes but which are
expected to revert to forest. Forests include such stand types as
dipterocarp, pine, mossy, molave, beach, and mangrove. For the

purpose of this Act, natural forests may be classified according to:


yy)

(@

(aa)

(bb)

1) primary use and management, a forest shall be classified as
either protection forest or production forest after its most suitable
and dominant multi-use function has been determined pursuant to
this Act; and 2) growth formation, a forest is classified as either
closed forest or open forest. Closed forests have trees in the
various storeys and the undergrowth that cover a high proportion,
greater than forty percent (40%), of the ground and do not have a
continuous dense grass layer. Closed forests are either managed or
unmanaged forests, primary or in advanced state of reconstitution,
and may have been logged-over one or more times but have kept
their characteristics of forest stands, possibly with modified
structure and composition. Open forests have trees that are of
discontinuous layer, with a coverage of at least ten percent (10%)
and less than forty percent (40%).

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

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

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

“Forestlands" shall refer to lands of the public domain that have been
classified as such and all unclassified lands of the public domain.

"Forest Officer" shall refer to any public officer who by the nature of
his appointment or the functions of the position to which he is


appointed is delegated by law and regulations or commissioned by
competent authorities to execute, implement or enforce the
provisions of this Act and other related laws and regulations.

(cc) "Forest Plantation" shall refer to a forest stand established by
planting and/or seeding in the process of afforestation and
reforestation. The stand is either of introduced species or of any
indigenous species, or both.

(dd) “Forest Products” shall refer to goods and services derived from the
forest such as but not limited to timber, lumber, veneer, plywood,
fiberboard, pulpwood, firewood, bark, tree top, resin gum, wood
oil, honey, beeswax, nipa, rattan, or other forest growth such as
grass, shrub, and flowering plant, the associated water, fish, game,
scenic, historical and educational.

(ce) "Forest Resources" shall refer to all resources whether biomass such
as plants and animals including its by-products and derivatives,
which can be raw materials to produce value added products, or
non-biomass such as soil, water, scenery, as well as the intangible
services and values present in forestlands or in other lands
devoted for forest purposes.

(ff) “Forest-resource Derivatives” shall refer to substances/materials
extracted, or as exudates of the trees or part thereof such as, but
not limited to, resins, gums tanning, beeswax, resin and like.

(gg) "Grazing Land" shalll refer to a portion of the public domain which
has been set aside, in view of the suitability of its topography and
‘vegetation, for the raising of livestock.

(hh) "Indigenous Cultural Community (ICC)" shall refer to a group of
people or homogenous societies as defined in the IPRA Law.
Indigenous cultural community is synonymous with indigenous
people.

(i) | “Industrial Forest Management Agreement (IFMA)” shall refer to a

production-sharing contract entered into by and between the


Department and a qualified person, whether natural or juridical,
wherein the former grants to the latter the exclusive right and
responsibility to invest in, develop, manage, and protect a defined
area of the production forestland, including the establishment,
management and utilization of industrial forest plantation,
consistent with the principle of sustainable development, primarily
to supply the raw material requirements of wood-based processing
and energy-related industries and wherein both parties share in
the benefits therefrom.

(j) “Industrial Forest Plantation or IFP” shall refer to any tract of land,
whether public or private, planted to timber producing species,
including rubber and durian trees and/or non-timber species such
as rattan and bamboo primarily to supply the raw material
requirements of forest-based industries, energy-generating plants,
and related industries.

(kk) “Integrated Forest-based Industry” shall refer to a rationalized forest
resource industry which is characterized by the presence of
complementary timber processing plants such as sawmills,
plywood and veneer mills, , particle board and fiberboard plants,
pulp and paper mills, as well as secondary and/or tertiary wood
processing plants.

(1) “Integrated Wood Processing Plant" shall refer to a combination of
two or more wood-based processing facilities, whether mechanical
or chemical or both such as sawmills, veneer and plywood mills, or
pulp and paper mills, including other facilities in the manufacture
of semi- or completely finished wood products.

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


at a certain percentage mutually agreed upon by and beneficial to
both parties.

(nn) "Kaingin" shall refer to a portion of the forestland, whether occupied
or not, which is subjected to a farming system based on shifting or
slash and burn clearing of forest for the planting of agricultural
and agroforest crops.

(00) "Managed Forest" shall refer to a forestland under a deliberate
system of protection, rehabilitation, development and utilization of
resources, to ensure sustainable production of desired forest
products and/or services as well as the conservation of soil, water,
wildfire and other natural resources.

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

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

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

(ss) "Non-Government Organization (NGO)" shall refer to a non-stock,
non-profit, and voluntary organization established primarily to

provide assistance or service.


(#) “Non-Timber Forest Products” shall refer to all biological materials
and derivatives other than timber, which are extracted from forests
for human use.

(au) "Permit" shall refer to a short-term privilege or authority granted by
the State to a person to utilize limited forest or undertake a limited

activi

within any forest land without any right of occupation or
possession.

(vv) "Person" shall refer to a natural as well as juridical person, including
local forest-based communities or indigenous peoples organized in
accordance with law or custom.

(ww) "Processing Plant or Mill" shall refer to any mechanical set-up,
machine or combination of machines used for the conversion of
logs and other forest raw materials into semi-finished or finished
products.

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

(yy) "Protected Areas" shall refer to identified portions of land and water
set aside pursuant to the NIPAS Act.

(zz) "Reforestation" shall refer to the planting of trees or artificial
establishment of forest in areas that were previously forested.

(aaa) "Reservation" shall refer to a forest land that has been reserved by

the President or by law for any specific purpose.

14


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

(ccc) “Secondary growth forest” shall refer to the status or condition of a
forest subsequent to commercial logging of which there is more or
less sufficient volume of residuals of the desired species of tress for
future harvest. A second-growth forest is synonymous to a
residual forest.

(ddd) "Secretary" shall refer to the Secretary of the Department of
Environment and Natural Resources.

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

(fff) “Silvicultural Practices” shall refer to any scientific intervention to
further improve or enhance the growth of tress or forest as a whole
for future harvest.

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

(hhh) "Sustainable Forest Management and Development" shall refer to
the process of managing a forest to achieve one or more clearly
specified objectives of management with regard to production of a
continuous flow of desired forest products and services without
undue reduction of its inherent values and future productivity and
without undesirable effects on the physical and social
environment.

(iii) "Tenure" shall refer to guaranteed peaceful access to and use of
specific forestland area and the resources found in the area
through an agreement, contract, or grant which cannot be altered

or abrogated without due process.

15


(jj) “Timber License Agreement (TLA)" shall refer to a privilege granted

(kkk)

by the State to a person to utilize forest resources within a
forestland with the right of possession and occupation thereof to
the exclusion of others except the government, but with the
corresponding obligation to develop, protect, and rehabilitate the
same in accordance with the terms and conditions set forth in the
said agreement.

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

(ll) “Urban Forestry” shall refer to the establishment and management

of forest in urban environment for the physiological and

psychological well being of the people.

(mmm) "Watershed" shall refer to a land area drained by a stream or a

(nnn)

(000)

(ppp)

fixed body of water and with tributaries having a common outlet
for surface runoff.

“Watershed Reservation" shall refer to a forestland that has been
proclaimed by the President or by law as such, primarily for water
production purposes although other compatible uses may be
allowed under sustainable and multiple-use management
concepts.

‘Wildlife" shall refer to wild forms and varieties of flora and fauna
in all developmental stages.

"Wood-Based Industries" shalll refer to various industries that use
wood as the principal raw material such as but not limited to
sawmilling, pulp and paper making, and plywood and veneer
manufacturing, the upstream wood-based industries, as well as the
secondary and tertiary wood processing such as but not limited to
moldings and furniture manufacturing.


CHAPTER II
PERMANENT FORESTLANDS

SEC. 4. The Permanent Forestlands. - All lands of the public domain
classified as forestlands under the Department's land classification program,
including the remaining unclassified lands of the public domain shall be

maintained as permanent forest lands.

SEC. 5. Sub-Classification of the Permanent Forestlands. -
The permanent forestlands shall be sub-classified into the following
categories according to primary use:

(a) Protection forestlands. - All areas within the forestlands designated
or set aside as such shall constitute the protection forest lands. All mossy and
primary /old-growth forests and natural beach, all areas one thousand (1,000)
meters above sea level, areas above fifty percent (50%) areas regardless of
slope which are highly erodible or too rocky for establishment of either
production forests or limited productions forests, developed for the principal
objectives of establishing vegetative cover to prevent erosion, conserve water
and nurture wildlife, freshwater, swamps, and marshes, all areas along the
bank of rivers and streams, and the shores of the seas and lakes throughout
their entire length and within a zone of three (3) meters in urban areas,
twenty (20) meters in agricultural areas, and forty (40) meters in forest areas,
along their margins which are subject to the easement of public use in the
interest of recreation, settlements, navigation, floatage, fishing and salvage
shall also be sub-classified as protection forest lands: Provided, That
reclassification shall be approved by an Act of Congress.

(b) Production forestlands. - All forestlands not sub-classified as
protection forestlands defined in this Section shall constitute the production
forestlands to be devoted to the production of timber and/or non-timber
forest products or the establishment of industrial tree plantations, tree farms,
communal forests, agroforestry, grazing, or as multiple-use forests including

water-based energy areas such as but not limited to hydrothermal and

7


geothermal reservations: Provided, That they shall be managed, developed,
and utilized in accordance with a Department-approved management plan

based on sustainable forest management principles.

CHAPTER III
ADMINISTRATION AND MANAGEMENT OF
FORESTLANDS

SEC. 6. Jurisdiction and Control of Forestlands. - The Department
shall be the primary agency responsible for the conservation, management,
development and utilization of all forestlands and the unclassified lands of
the public domain including all the resources found or growing in these
lands. In coordination with LGUs and other government agencies, the
Department shall ensure that forestlands and unclassified lands of the public
domain are managed, conserved, developed, utilized, and protected
consistent with the policies and strategies promulgated in this Act. The
utilization and development of forestlands and unclassified lands of the
public domain including the natural resources therein shall be undertaken in
accordance with Department-approved management plans: Provided, That the
management plan for protected areas shall be prepared in accordance with
the provisions of the NIPAS Act.

Records pertaining to the specific limits of forestlands shall be made
available to the public upon request. Moreover, the Department shall furnish
all provincial, municipal and city government copies of the maps of

permanent forestlands located within their respective territorial jurisdictions.

SEC. 7. Forest Lands Managed by Local Government Units (LGUs). -
Pursuant to the pertinent provisions of Republic Act. No. 7160 or the Local
Government Code, LGUs shall share the responsibility in the sustainable
management and utilization of forest resources within their territorial
jurisdiction including those assigned by law to other government agencies.

Subject to vested rights, LGUs and the Department, in consultation with other


government agencies, local communities, non-government organizations,
academic and research institutions and other sectors shall jointly undertake
the preparation of indicative forestland use and watershed management
plans, particularly the identification of multiple-use areas and production
forestlands within the territorial jurisdiction of each LGU which shall be
made an integral component of the latter's Comprehensive Land Use Plan
(CLUP). The LGUs shall be consulted on all forestry projects to be
implemented in their territorial jurisdiction and shall have equitable share of
incomes derived therefrom. For this purpose, the Department, the
Department of Interior and Local Government (DILG), the leagues of
provinces, cities, municipalities, and barangays shall formulate a joint
strategy and program to implement this provision within one (1) year from

the passage of this Act.

SEC. 8. Forestlands Under Other Government Agencies. - Forestlands
and/or portions thereof which have been assigned by law to the
administration and management of other government agencies for a specific
purpose, including those devolved to the LGUs prior to the passage of this
Act, shall be sub-classified as production forestlands and shall remain under
the administration and management of these government agencies which
shall be responsible for their conservation, protection, rehabilitation, and sub-
classification into forestland and the specific purpose for which the entire area
has been assigned or reserved unless said assignment or reservation is
consistent with the use of such area as protection forestland. The Secretary or
a duly authorized representative shall exercise oversight functions over these
forestlands. Moreover, these forestlands shall be administered in accordance
with a forest management plan, which shall be prepared by the government
agency or concerned LGU in coordination with the Department and local
communities and organizations within one year from the effectivity of this
Act: Provided, That the Department and the LGU or government agency

concerned shall periodically review, monitor, and evaluate the

19


implementation of the said management plan. Provided, further, That the
harvesting of forest resources and building of roads and other infrastructure
therein shall be undertaken only with the prior approval of the Secretary and
after compliance with EIS and ECC requirements: Provided finally, That the
Secretary shall recommend to Congress or the President of the Philippines the
reversion to the Department of the jurisdiction and control over forestlands
that are no longer needed nor used for the purpose by which they have been
constituted or in case the agency or LGU concerned fails to rehabilitate,
protect, and conserve the forestland resources in accordance with the
approved management plan. The Department shall determine the use of the

reverted forestlands.

SEC. 9. Forest Resources Within Alienable and Disposable Lands. -
All forest resources including trees planted or raised within alienable and
disposable lands belong to the owner of the land who shall have the right to
harvest, transport, sell, contract, convey or dispose of the same without the
necessity of any clearance from the Department. The Department shall
encourage and provide incentives to landowners of alienable and disposable
lands to develop, maintain and manage forests on their lands or to develop
and maintain a tree plantation on such lands. Landowners who register their
lands for forestry purposes with the Department shall be assisted by the
Department in the preparation of a management plan and shall be entitled to
appropriate incentives provided under Section 24 herein: Provided, That
agricultural lands devoted to the planting and harvesting of forest resources
shall remain subject to the provisions of Republic Act No. 6657 or the

Comprehensive Agrarian Reform Law.

SEC. 10. Forest Resources within Forest Land. - All forest resources,
including non-timber forest products, its by-products and its derivatives,
whether naturally growing, planted or raised which have been taken of or
have been applied with some silvicultural practices, within forest lands

20


including those forest resources within the areas covered by Certificate Of
Ancestral Domain Title (CADT) or Certificate of Ancestral Land Claim
(CALC), shall be issued with a permit, agreement or clearance that are
deemed necessary and appropriate by the Department, as recommended by
the Forest Management Bureau (FMB). The transport of these forest resources
from forest lands including those from areas of the indigenous cultural
communities or indigenous peoples covered by a CADT or CALC shall be
covered by a separate permit, agreement or clearance duly issued by the
Department.

Any declaration of forest resources as endangered, threatened,
vulnerable and other restriction shall be done in coordination, consultation

and clearance from the FMB.

SEC. 11. Forest Resources within Ancestral Domains. - The recognition,
‘ownership and management of ancestral lands and domains shall be governed by the
provisions of the IPRA but any project of a holder of a CADT or any such similar
instrument to develop or use forest lands or forest resources that would result in
severe soil erosion or environmental degradation shall be subject to the provisions of
Presidential Decree No. 1151 or the Philippine Environment Policy,
Presidential Decree No. 1586, establishing an Environmental Impact
Statement System and this Act. The National Commission on Indigenous
Peoples (NCIP) shall coordinate and consult the Department in providing
assistance to the indigenous peoples in the sustainable management and
development of forest resources within ancestral lands and domains. For this
purpose, a multi-sectoral task force shall be created, to be composed of
representatives from the Department, NCIP, DAR and concerned LGU to
evaluate and validate the authenticity of all CADT/CALC claims and
applications of the IPs prior to the conduct of all survey activities and

issuance of corresponding titles.

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CHAPTER IV
FOREST MANAGEMENT PLANNING,
MONITORING AND ASSESSMENT

SEC. 12. Sustainable Forest Management Planning. - Subject to vested
or prior rights, the Department, in consultation and coordination with LGUs,
other government agencies, local communities, non-government
organizations, individual and corporate entities, private sectors, academic
and research institutions and other concerned sectors shall, within one (1)
year from the effectivity of this Act, develop and adopt a sustainable forest
management strategy for each well-defined watershed or other appropriate
forest management unit based on criteria, indicators, and standards for
sustainable forest management which, at their minimum, address the
following requirements:

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

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

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

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

©) Promotion of closer coordination between and among the
Department, LGUs, other national agencies, non-government organizations,
local communities, the private sector academic and research institution and
other entities in the sustainable management of forestlands;

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

g) Integration of forest management and land use plans at the

Barangay or community level to the CLUPs of cities and municipalities,

22


including the adoption of effective impact monitoring system of forest
management programs.

The Department shall adopt a comprehensive forestry master plan that
shall define the development of the combination of outlooks for the different
forestry land uses, its productivity, demand, supply, human resources policy
and institutional changes.

SEC. 13. Watershed Ecosystem Management Approach. - The
Watershed and Ecosystems Planning Framework in Environment and
Natural Resources Management shall be adopted. The strategy for improved
watershed resources management shall be demand-driven, community-
based, and multiple and sustainable use considering national priorities and
concerns of local stakeholders. Watershed management programs shall be
guided by ecological, socio-cultural, economic, and institutional sustainability
principles. A National Watershed Information System shall be developed to
guide policy formulation, program development, and implementation of
watershed management initiatives.

A system of management prioritization of watersheds shall be pursued
considering the following: a) water supply for domestic, irrigation, power,
industrial, and commercial use; b) contribution to the economy; c)
biodiversity and environmental enhancement; d) cultural and historical value;

and e) effect on downstream areas.

SEC. 14. Forest Information System. - The Department shall establish
a forestry information system, which shall consist of a comprehensive up-to-
date information on the physical, social, economic, biological, and
environmental components of the country's forestlands and forest resources.
It shall include a resource monitoring system to enable the Department and
its field offices to track the utilization, movement or transfer of forest-based

goods and services from the source to their end users. The Department shall

23


conduct and/or update forest resource inventory at least once every five (5)

years to ensure effective management.

SEC. 15. Environmental Impact Assessment, Accounting and
Valuation. - All new critical projects to be implemented in forestlands such as
harvesting, grazing and other special uses, mineral prospecting and
exploration, road, infrastructure, and mill construction shall be subject to the
country’s EIA system. The Department shall design and implement a system
of monitoring and assessment, using the criteria and indicators as framework,
and shall formulate appropriate standards as basis for assessing progress
towards sustainable forest management.

The Department shall formulate an appropriate natural resource

accounting and valuation system for various forestry initiatives.

CHAPTER V
COMMUNITY-BASED FOREST MANAGEMENT

SEC. 16. Community-Based Forest Management Strategy (CBFMS). -
Consistent with the policy of sustainable and multiple use forest
management, forest resident families, communities, and indigenous peoples
whose lives, cultures, and general well-being are intimately linked with the
forests, shall be granted access to forest lands and resources and given the
responsibility to protect, manage, develop, and utilize them through the
issuance of long-term tenure agreement under the principle of stewardship.
The Department shall develop policies, criteria, guidelines, and
tenurial instruments that will simplify, facilitate, and allow their access to
forest land and resources, including the development of policies, guidelines
and incentives for private sector investors to enter into mutually beneficial
relationships with forest-based communities in pursuit of CBFMS on a

sustainable forest management basis.

24


SEC. 17. Areas Available for CBFM. - Subject to vested or prior rights,
CBEM may be implemented in all appropriate public forestlands, including
ancestral domains of ICCs. The Secretary may also allow CBFM in watershed
reservations to promote their protection and rehabilitation: Provided, however,

That the land-use practices and activities are in accordance with a
management plan duly approved by the Secretary and would not induce
severe soil erosion and surface run-off: Provided, further, That no CBFM
agreement shall be issued over areas or portions thereof covered by ancestral
domain titles without the prior informed consent of the concerned indigenous

cultural community.

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

the forestland resources on a sustainable basis.

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

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

a, Members shalll be Filipino citizens; and

b. Members shalll be any of the following:

25


(1). Traditionally utilizing the resource for their
livelihood;

(2). Actually residing within the area to be awarded; or

(). Residing adjacent and actually tilling and developing
the area to be awarded.

CHAPTER VI
REFORESTATION AND AFFORESTATION PROGRAM

SEC. 20. Reforestation/Rehabilitation of Protection Forest Lands. -
The reforestation and rehabilitation of all critical watershed, denuded forest
lands, and degraded forests within protection forest land not otherwise
covered by the CBFM program shall be given top priority and shall be
vigorously pursued’by the Department consistent with the NIPAS Act and
the strategies and management plans therefor. The use of endemic species in
the restoration program for protection forests shall be given primary
consideration to enhance the biological diversity of the area.

The Department, in coordination with LGUs, other government
agencies, NGOs, local residents and communities, and other sectors
concerned, shall identify and prioritize forestlands to be reforested. An
accelerated reforestation program in such identified priority protection
forestlands shall be undertaken to raise the forest cover therein to at least fifty
percent (50%) within five (5) years, and to at least eighty percent (80%) within
ten (10) years from the effectivity of this Act. The Department shall allot
funds to effectively accomplish reforestation either by itself or through
contract. The Department or other agencies responsible for reforestation shall
give priority to local communities in the granting of technical and financial

assistance for reforestation activities.

SEC. 21. Forest Plantation Development in Production Forest Lands. -
In accordance with Section 40, the State through the Department may enter

into joint venture, co-production, or production sharing agreement with

26


qualified forest community organizations, local government units,
government-owned or controlled corporations, private companies,
individuals, and other interested parties concerned in the development of
forest plantations in production forestlands: Provided, That any portion of the
production forest land identified by the Department as needed for protection

and rehabilitation purposes shall not be converted into forest plantations.

SEC. 23. Reforestation in Forest Lands under the Jurisdiction of Other
Government Agencies- Government agencies and institutions having
management control over forest lands pursuant to a law or grant shall be
responsible for the reforestation of denuded and degraded portions of such
forest lands. The reforestation program of these agencies shall aim to increase
the vegetation of the degraded areas, to be identified jointly by the
Department and agency concerned, by fifty percent (50%) within the first five
(8) years and at least eighty percent (80%) within ten (10) years from the
effectivity of this Act. The concerned agency in coordination with the
Department shall prepare the reforestation plan, and determine the ratio of
forested areas at any given time. Failure to reforest denuded and/or
degraded forestland identified in the reforestation plan within the period
herein prescribed shall be sufficient ground to request for reversion of the
said forestlands to the jurisdiction and control of the Department. Provided,
however, That in areas where CBFMS shall be implemented or where there are
existing facilities for basic services such as water and power as allowed by the
Department pursuant to Section 40, the completion of the reforestation
program shall be subject to the conditions provided in the tenurial document
to be awarded by the Department and the agency concerned to the
Participating local community or individual or in the Forest Management
Agreement of contractors operating such facilities for basic services, as

approved by the Department.

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SEC. 23. Reforestation in Alienable and Disposable Lands or Private
Lands. - Reforestation and afforestation or the establishment of tree farms or
forest plantations in alienable and disposable lands or private lands shall be
encouraged. The private landowner(s) shall also be entitled to the incentives
provided for under Section 24 herein, particularly subsections (a), (b), (), (a),
and (e): Provided, That such private forest plantations are duly registered with
the Department.

SEC. 24. Tax Incentives. - The following tax incentives shall be
granted to qualified persons engaged in forest plantation activities:

1. Expenses incurred in complying with the requirements of this
Act shall be allowed as deductible expenses for income tax purposes
subject to provisions of the National Internal Revenue Code of 1997, as
amended: Provided, That the deduction shall only apply to the taxable
period when the expenses were incurred;

2. Incentives granted to registered domestic enterprise under the
Investments Priorities Plan (IPP); and

3. Exemption fro the payment of forest charges imposed under
the provisions of this Act.

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

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

b. Amounts expended by the agreement holder in the
development and operation of a forest plantation prior to the
commercial harvest shall be regarded as ordinary and necessary

expenses or as capital expenditure;

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c. The Board of Investments (BOI) shall classify forest
plantations as pioneer and preferred areas of investment under its
annual priority plan, subject to pertinent rules and regulations;

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

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

f. Exemption from Forest Charges and Expanded Value Added
Tax;

g- Exemption of forest plantation from payment of real
property.

h. No termination of contract or agreement except for cause or
for reason of public interest and only after due process;

i. The agreement holder has the right to transfer, contract, sell,
or convey his rights to any qualified person following the guidelines to
be issued by the Secretary.

‘The Secretary may provide or recommend to the President or to
Congress other incentives in addition to those granted in this Act and in

existing laws in order to promote reforestation and the establishment of forest
plantations.

29


SEC. 25. Voluntary Offer to Reforest. - Private landowners, whether
natural or juridical persons, may participate in reforestation and forest
plantation development or similar programs of the Department, with the
landowner contributing his land and the Department providing funds in
accordance with Section 55 to reforest the area on a co-production agreement:
Provided, That the property shall be exclusively devoted to the planting of
forest species for at least one (1) rotation, which undertaking shall be

annotated at the back of the title of the property.

CHAPTER VIL
URBAN FORESTRY/COMMUNAL FOREST

SEC. 26. Establishment of City or Municipal Parks and/or Communal
Forest. - Every city or municipality shall establish a city or municipal park or
communal forest and shall include in its annual budget the necessary funds
for its establishment and maintenance. Upon request by a city or
municipality concemed, the Department shall set aside an appropriate area of
the public forestlands as city or municipal park and/or communal forest and
shall provide technical assistance to the local government concemed in the

development of the park or communal forest.

SEC. 27. Establishment of Tree Parks in Subdivision and Tree
Planting on Roadsides. - Every subdivision project to be developed after the
passage of this Act shall include the establishment of a tree park of not less
than fifty percent (50%) of the required total open spaces as provided in
Section 2 of Presidential Decree No. 953, requiring the planting of trees in
certain places. The guidelines for the establishment of tree parks within a
subdivision shall be prepared jointly by the subdivision owner concerned, the
Housing and Land Use Regulatory Board (HLURB) and the Department. The
subdivision owner shall provide the funds for this purpose. For every major
public road or irrigation construction project, the Department of Public Works
and Highways (DPWH) shall include the planting and maintenance of trees

30


along the road/highway or irrigation canals as landscaped rest areas every
twenty-five (25) kilometers thereof and shall provide adequate funds for this
purpose. Each city and municipality shall also allocate adequate funds for the
planting, care, and maintenance of trees or perennial shrubs in "greenbelts" or

"green spaces" such as road/street sides, center islands, ete.

CHAPTER VIII
FOREST PROTECTION

SEC. 28. Commercial Logging Ban. - There shall be a permanent ban
on commercial logging activities in all protection forest lands defined,
categorized, and sub-classified in Section 5(a) herein. No licenses, permit, or
agreement to cut any timber within a protection forest land shalll be issued.

Portions of the production forest lands identified by the Department
for protection purposes shall be excluded from any form of logging
operations and the holder of the agreement or license shall establish a buffer
zone and delineate their boundaries with the production forestlands, marking
the same with concrete monuments, road, or infrastructure, or any other
visible, permanent, and practicable signs.

To ensure the conservation and sustainable use of forest resources,
holders of timber licenses, leases, and permits shall submit to the Department
an Integrated Operations Plan (IOP) containing strict environmental
guidelines such as ECC compliance. All forest development activities such as
logging, reforestation, timber stand improvement, forest protection, and
delivery of community service within an area covered by timber concessions
shall be consolidated under the IOP, which shall be prepared by or under the
supervision of an accredited private registered forester whose signature and
dry seal shall appear in the plan and the supporting documents submitted for
the purpose.

Upon its expiration or termination for cause, no extension shall be

made on any TLA and the area covered by the agreement shall be converted

31


into any mode pursuant to Section 40, including degraded areas that may be

subject of a reforestation or tree plantation project.

SEC. 29. Assistance of Law Enforcement Agencies. - The Department
may call upon law enforcement agencies and instrumentalities of the
Government such as the Philippine National Police (PNP), the Armed Forces
of the Philippines (AFP), and the National Bureau of Investigation (NBI) for
the enforcement of the logging ban in all protection forestlands and for the
protection and conservation of forests.

The Secretary of Justice shall designate in every city and province a
special prosecutor who shall immediately file charges against forest violators

to ensure their speedy prosecution.

SEC. 30. Multi-Sectoral Forest Protection Council. - There shall be
created a Multi-Sectoral Forest Protection Council in every province, city and
municipality which shall be responsible for law enforcement, prevention of
forest fires, integrated pest management and protection against forest
invasive species. The council shall be composed of representatives from, but
not limited, to the Department, concerned LGU, NGOs, people’s

organizations, church and local academic institution.

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

SEC. 32. Prevention of Forest Fires and Control of Forest Pests and
Diseases. - In collaboration with concerned LGUs, the Department shall

formulate and implement a fire management and control program. The

32


Department shall likewise formulate and implement a national integrated
forest pest and disease management program including quarantine
procedures for imported seeds, forest plants, and plant products as well as

wildlife to prevent or control forest or wildlife pests and diseases.

SEC. 33. Information and Rewards System. - The Department shall
establish an information and rewards system as part of the community's

participation in the protection of forest resources.

CHAPTER IX
FORESTRY RESEARCH, EDUCATION, TRAINING
AND EXTENSION

SEC. 34. Research and Technology Development Transfer. - Research
and technology development transfer shall be strengthened to support
sustainable management of forest resources. The Department, the
Department of Science and Technology (DOST), the Commission on Higher
Education (CHED), and the colleges of forestry of State universities shall,
within one (1) year from the passage of this Act, prepare a comprehensive
national forestry and environmental research and technology development
and transfer program in furtherance of sustainable forest management which
shall be implemented, monitored, and reviewed in accordance with existing
research management systems. Adequate and sustainable funds to implement
research and technology development plans and transfer program shall be
provided by each of the aforementioned agencies and institutions under the
General Appropriations Act.

SEC. 35, Public Information, Education and Advocacy Campaign. -
With the support from LGUs, NGOs, media and other organizations, the
Department, the Philippine Information Agency (PIA), the Department of
Education (DepEd), CHED, State-owned and private universities and colleges

shall formulate and implement a nationwide program for sustained public

33


information and advocacy campaign for forest and natural resources
conservation and sustainable forest development and management. The
DepEd shall include subjects on forest and natural resources in the curricula
for elementary and high school education. The CHED shall likewise include
ecology and environment courses in the general education curricula. The
Department shall undertake a systematic campaign to promote community
ecological awareness, including the preparation of informational and

educational materials therefor.

SEC. 36. Formal Forestry Education. - The CHED, in collaboration
with the Department, the Board of Examiners for Foresters of the Professional
Regulations Commission (PRC), and the duly accredited national professional
foresters organization shall actively pursue the rationalization of formal
forestry education and the establishment of centers of excellence in forestry
and environmental education to ensure high quality manpower output to

meet the needs of the forestry sector.

SEC. 37. Continuing Education on Forestry. - A non-formal program
of continuing education shall be established to maintain the growth of the
forestry profession. The PRC Board of Examiners for Foresters and the Civil
Service Commission (CSC) shall provide the guidelines for a program in
continuing education in forestry. In cooperation with academic institutions,
the Department shall develop the infrastructures to institutionalize non-
formal continuing education for the forestry sector.

SEC. 38. Training Centers. - In coordination with TESDA, DepEd,
CHED and State universities and colleges (SUCs), the Department shall
establish and institutionalize a network of training centers in strategic parts of
the country to provide regular and up-to-date training on the various aspects
of sustainable forest management, development, and utilization to forest

officers, LGUs, NGOs, local communities, and indigenous peoples.

34


Furthermore, the Department shall ensure that personnel appointed to critical
and sensitive positions undergo training to prepare them to discharge their

duties and responsibilities professionally, efficiently and effectively.

SEC. 39. Forestry Development Center. - The Forestry Development
Center (FDC) based in the College of Forestry and Natural Resources,
University of the Philippines at Los Bafios, shall continue to serve as the
primary policy research and development center for forestry and natural
resources management. The FDC shall perform its functions in close
coordination with the Department and other policy research institutions in
the country. It shall assist the Department in the formulation, review, and
evaluation of proposed and existing policies on forestry and natural resources
management. To enable the Center to carry out its mandated functions, the
Center shall have a share of the Sustainable Forestry Development Fund
pursuant to Section 55 in the conduct of its mandated functions of policy

research.

CHAPTER X
DISPOSITION AND UTILIZATION OF FOREST RESOURCES

SEC. 40. Modes of Forest Management Agreement.- The development,
utilization, and management of forestlands and/or forest resources shall be
undertaken under the full control and supervision of the State through the
Department. The State may directly undertake such activities or it may enter
into co-production, joint venture or production sharing agreement with
qualified Filipino citizens or corporations or associations, subject to relevant
laws, rules and regulations: Provided, That interested local communities and
indigenous peoples through their organized and duly recognized associations
shall be given priority in the grant of appropriate tenurial instruments
implementing the said agreements. Such tenurial instruments and/or
agreements shall have a duration of twenty-five (25) years, renewable for

another twenty-five (25) years, under such terms and conditions as may be

35


provided by the Secretary: Provided, further, That such tenurial instruments
and/or agreements may not be terminated except for cause or if public
interest so requires.

Current valid and subsisting licenses, contracts, or agreements granted
by the government for the development, management, and utilization of
forest resources shall be allowed to continue under the same terms and
conditions until their expiry, or prior to their expiry shall be allowed to be
converted into any mode authorized herein under the guidelines
promulgated by the Secretary: Provided, That no such conversion shall be
allowed in protection forestlands as defined in Section 5 on sub-classification
of forestlands.

The Department is hereby authorized to formulate rules and
regulations covering the relevant terms and conditions thereof including the
determination and collection of the government share, subject to the approval
of Congress.

For watersheds and other areas where existing facilities for basic
services such as water and power are located, the Department may enter into
a forest management agreement with the service contractor in the area. Such
agreement shall have a duration of twenty-five (25) years, renewable for
another twenty-five (25) years, under such terms and conditions agreed upon
by both parties: Provided, That such agreement may not be terminated except

for cause or if public interest so requires or upon mutual agreement by the
parties.

SEC. 41. Transfer of Rights Arising Out of Agreements, Contracts or
Similar Instruments. - The transfer of rights arising out of any forest
management agreement, contract or similar instrument with the government
may be authorized by the Department: Provided, That the agreement, contract
or similar instrument has been in existence and active for at least three
consecutive year from its issuance: Provided, further, That the transferor has

faithfully complied with the terms and conditions of the said agreement,

36


contract or similar instrument; the transferee has all the qualifications and
none of the disqualifications to hold the same; and the transferee shall assume
the obligations of the transferor. Failure to comply with these conditions shall
be sufficient cause for the cancellation of the agreement, contract or similar

instrument,

SEC. 42. Non-timber Forest Products. - Rattan, bamboos, vines, herbs,
exudates and other non-wood forest products are integral parts of the forest
ecosystem. The establishment of plantations of non-timber producing species
shall be encouraged and supported. The development, management and
utilization of non-timber forest products shall be allowed in accordance with
the guidelines to be promulgated by the Department. However, in granting
permits to harvest or utilize non-timber forest products in their natural or
original state from production forestlands, priority shall be given to forest
resident families, local communities, and indigenous peoples living nearest
the subject forestlands.

SEC. 43. Silvicultural and Harvesting System. - The Department shall
formulate the appropriate silvicultural and harvesting system and all
measures shall be taken to achieve an approximate balance between growth
and harvest or use of forest products in production forest land shall be
promoted and prscticed.

SEC. 44. Grazing. - The Department shall identify and delimit areas in
the production forest land suitable for grazing purposes: Provided, That no
forestland fifty percent (50%) in slope or over may be utilized for grazing
purposes: Provided, further, That existing pasture lease agreements or
forestland grazing lease agreements shall be allowed to continue under the
same terms and conditions until their expiry: Provided, finally, That
abandoned or idle, expired, or cancelled grazing or pasture lands shall be

subject to land use capability assessment to determine their best use or

37


combination of uses. No new grazing or pasture permit, lease, or contract
shall be issued, nor existing ones allowed to continue unless covered by

existing rules and regulations governing the Philippine EIS System.

SEC. 45. Mining and Power Generation Operations in Forestlands.-
Forest resources inside mineral lands are under the Department's jurisdiction,
and their management and utilization are subject to the provisions of this Act.
Power generation and small-scale mining operations in forestlands may be
allowed subject to existing rules and regulations governing the Philippine EIS
System.

SEC. 46. Roads and Other Infrastructures. - Roads and other
infrastructure including the development of mineral reservations and energy
resources inside forest lands shall be constructed with the least impairment to
the resource values found in such forest lands. Government agencies and
their contractors undertaking the construction of roads, bridges,
communication and other infrastructure facilities and installations inside
forestlands shall seek prior authority from the Department and shall comply
with existing rules and regulations governing the Philippine EIS System.

CHAPTER XI
FOREST-BASED INDUSTRIES

SEC. 47. Establishment and Operations of Forest-Based Industries. -
To meet the demands for forest-based goods and services of a growing
population the State through the Department shall promote the
establishment, operations, and development of forest-based industries.

SEC. 48. Incentives for Forest-Based Industries. - To enable forest-
based industries to be more efficient, competitive, and economically viable,
the following incentives are hereby granted in addition to those already
provided by existing laws:

38


a. All processing plants or mills shall be assured of their supply of
raw materials, preferably but not exclusively from local sources;

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

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

‘The Department may provide on its own or propose to the President or
to Congress, other incentives to encourage the establishment and
development of corporate, family and community forest-based industries.
Agreements or licenses over forest areas granted to wood-based plants shall
be converted into any mode authorized in this Act. Expansion in capacity of
wood-based plants shall be encouraged and the same shall be given priority
access to production forest lands and other areas available for development as

source of raw materials.

SEC. 49. Export and Sale of Locally Produced Wood Products. - Logs
derived from natural grown trees of whatever species cut, gathered, or
removed from the local natural forest and raw or rough lumber manufactured
from such logs shall not be exported, except finished and semi-finished
lumber products, wood manufactures, wood panels, and other finished wood
products from such logs subject to such guidelines as the Secretary may
promulgate.

No person shall sell or offer for sale any log, lumber, veneer, plywood
or other manufactured wood products in the international or domestic market

without complying with the grading rules established or to be established by

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the government. Failure to adhere to the established grading rules and
standards, or any act of falsification on the volume of logs, lumber, veneer,
plywood or other wood products sold in the international or domestic market
shall be sufficient cause for the cancellation of export license, wood
processing permit, or other license or permit authorizing the manufacture or

sale of such products.

SEC. 50. Importation and Sale of Logs and Other Forest and Wood
Products. - Logs, lumber, and other forest and wood-based products may be
imported to the country subject to the registration requirements of the
Department, payment of tariff and duties imposed under the Tariff and
Customs Code, and quarantine regulations. Any product manufactured or
remanufactured out of imported forest and wood materials may be sold in the
domestic or international market subject to compliance with the grading rules

and standards.

CHAPTER XII
FOREST CHARGES, FEES AND RENTALS

SEC. 51. Fees, and Government Shares for the Utilization,
Exploitation, Occupation, Possession, and Activities within Forest Lands. -
‘The Department shall prescribe appropriate fees and government shares for
the different kinds of utilization, exploitation, occupation, possession, or
activities within forest lands: Provided, That payment of or collection of such
fees and government shares shall be waived for parties or industries
mandated by law to manage, conserve, develop and protect forest lands and
forest resources, except administrative fees for the filing and processing of
applications for the issuance and renewal of licenses, permits, and
agreements: Provided, further, That watershed administrators and/or service
contractors that have forest management agreements with the Department as.
provided for under Section 40 of this Act shall also be entitled to the waiver of

fees, except administrative fees.

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

SEC. 52. Forest Charges. - There shall be collected a forest charge per
cubic meter based on the actual FOB market price based on species and
diameter class by the Department on the following:

a. Timber - twenty five percent (25%)

b. _ Pulpwood and Matchwood - ten percent (10%)

c. Firewood, branches and other recoverable wood
wastes of timber such as timber ends, tops and
stumps when used as raw materials for the
manufacture of finished products - ten percent (10%)

d. _Non-timber forest products - ten percent (10%)

‘These forest charges shall be applied to naturally growing timber and
non-timber forest products gathered within forest lands, alienable and
disposable lands, and private lands.

For the above purpose, the measurement and the actual FOB market
price of forest products shall be justly determined by the Department, which
shall likewise provide for the time, manner and place of payment of such

charges.

SEC. 53. Fees for Administrative Services Rendered by the Department.
- Fees shall be collected for various services rendered by personnel of the
Department in connection with their duties and responsibilities as may be
requested by interested parties, including but not limited, to surveying,
mapping and other similar service activities: Provided, That administrative
fees shall be waived for services rendered to local communities or indigenous

peoples in the preparation of their management plans.

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CHAPTER XIII
APPROPRIATIONS AND FINANCIAL SUPPORT

SEC. 54, Appropriations. - The Secretary of the Department of
Environment and Natural Resources shall include in the Department's
program and issue such rules and regulations for the implementation of the

al funding of which shall be charged against

provisions of this Act, the
the current year's appropriations of the Department and thereafter included
in the annual General Appropriations Act. For local government units, the
funding requirements shall be taken from their internal revenue allotment
(IRA) and other LGU income.

SEC. 55. Sustainable Forestry Development Fund. - A Sustainable
Forestry Development Fund (SFDF) to be administered by the Department as
a special account in the national treasury is hereby established to provide
sustainable funds for forest protection, reforestation, and forest development
and management, including rehabilitation and preservation of watershed
areas, CBFM program, information and educational campaign as well as
scholarship programs and policy research. At least thirty percent (30%) of the
forest charges and government share in all products removed from the forest
lands, rentals, proceeds from sales of confiscated forest products including
conveyances, fines and penalties, and administrative fees collected shalll be set
aside for the buildup of the SFDF. The fund may be augmented by grants,
donations, endowment from various sources, domestic or foreign for
purposes related to their functions and other innovative funding mechanisms
such as securitization of forest assets, among others.

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

A trust fund committee, composed of the Secretary as Chair and the
Secretary of the Department of Budget and Management, the DILG Secretary,

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and the National Treasurer or their representatives shall sit as members and
manage the SFDF, with the Forest Management Bureau as secretariat

CHAPTER XIV
CRIMINAL OFFENSES AND PENALTIES

SEC. 56. Harvesting, Gathering and/or Collecting Timber or Other
Forest Products Without Authority. - Any person who shall harvest, cut,
gather, collect, or remove timber or other forest products from any forest
land, or naturally grown timber inside alienable and disposable public land
except as provided in Section 9, without authority from the Secretary or found
to possess the same without pertinent required legal documents shall be
punished by imprisonment ranging from prision mayor minimum period to
reclusion temporal minimum period and/or a fine equivalent to ten (10) times
the value of the said forest product: Provided, That in the case of partnerships,
associations or corporations, the president, managing partner, and general
manager shall be held liable, and if such officer is an alien, he shall, in
addition to the penalty, be deported without further proceedings on the part
of the Bureau of Immigration and Deportation. Offenders who are public
officials shall be deemed automatically dismissed from office and
permanently disqualified from holding any elective or appointive position.

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

confiscated in favor of the government.

SEC. 57. Ilegal Cutting as an Act of Economic Sabotage. - Any of the
acts enumerated in the preceding section committed by an armed group or by
any group, through organized and systematic manner, for commercial
purposes, shall be considered an act of economic sabotage punishable by

reclusion perpetua.

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

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

SEC. 58. Use of Illegally Cut Timber in Government Infrastructure
Projects. - Contractors of government infrastructure projects are hereby
required to obtain certification from the Department that the logs or lumber to
be used were obtained from legitimate sources. The use of illegally cut
naturally grown timber in government infrastructure projects shall be
sufficient cause for the imposition of penalties provided in Section 56, on
harvesting of forest products without authority, and Section 57, on illegal
cutting as an economic sabotage, including the withholding of the payment to

the contractor.

SEC. 59. Damage to Residual Trees .- To ensure the sustainability of
the natural forests, adequate number of residual trees shall be marked, to be
retained as part of the managed forests and as the future timber crop, before
any harvesting operation shall commence. Any marked residual tree that is

damaged during such operation is subject to a fine equivalent to four (4) times
the regular forest charges.

SEC. 60. Grazing Livestock on Forestlands Without a Permit.- Any
person found to have caused the grazing of livestock in forestlands and
grazing lands without an authority under a lease or permit to graze, upon
conviction, shall be penalized with imprisonment of not less than two (2)
years nor more than four (4) years and a fine equivalent to ten times the

regular shares due in addition to confiscation of the livestock and all

44


improvements introduced in the area in favor of the government: Provided,
That in case the offender is a corporation, partnership, or association, the
officer or director thereof who directly caused or ordered such shall be liable.
In case the offender is a public officer or employee, he shall, in addition to the
above penalties, be deemed automatically dismissed from office and
permanently disqualified from holding any elective or appointive position in

the government service.

SEC. 61. Unlawful Occupation or Destruction of Forestlands. - Any
person who, without authority from the Secretary, enters and occupies or
possesses, or engages in kaingin or slash-and-burn farming and related
activities for his private use or for others, any forest land or grazing land, or
in any manner destroys such forest land or part thereof, or causes any
damage to the timber stands and other forest products, or assists, aids or
abets another person to do so, or sets a fire, or negligently permits a fire to be
set, or refuses lawful orders to vacate the area when ordered to do so shall,
upon conviction, be punished with penalties in the amount of not less than
One Hundred thousand pesos (P*100,000.00) nor more than Five hundred
thousand pesos (P500,000.00) and imprisonment of not less than six (6) years
nor more than twelve (12) years for each offense: Provided, That in the case of
an offender found guilty of making kaingin or slash-and-burn farming, the
penalty shall be imprisonment of not less than ten (10) years nor more than
twelve (12) years and a fine equivalent to ten times the regular forest charges
due on the forest products destroyed without prejudice to payment of the full
cost of rehabilitation of the occupied areas as determined by the Department:
Provided, further, That the maximum of the penalty prescribed shall be
imposed upon the offender who repeats the same offense, and double the
maximum penalty upon the offender who commits the same offense for the
third time or more.

In all cases, the court shall further order the eviction of the offender

from the area occupied and the forfeiture to the government of all

45


improvements introduced, including all vehicles, domestic animals and
equipment of any kind used in the commission of the offense. If not suitable
for use by the Department, said improvements, vehicles, domestic animals
and equipment shall be sold at public auction, the proceeds from which shall
accrue to the SFDF.

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

government service.

SEC. 62. Illegal Conversion of City or Municipal Parks, Communal
Forests, and Tree Parks in Subdivisions. - Any person found to have
converted or caused the conversion of a city or municipal park or communal
forest, or tree parks within subdivisions established pursuant to Section 26
and 27 herein and Section 2 of Presidential Decree No. 953, requiring the
planting of trees in certain places, into other uses including the construction
of permanent buildings, or in any manner destroys or causes any damage to
the timber stands and other forest product, or assists, aids or abets another
person to do so, or sets a fire, or negligently permits a fire to be set, upon
conviction, shall be penalized by imprisonment of six (6) years and one (1)
day to twelve (12) years or a fine of not less than one hundred thousand
(P100,000.00) nor more than five hundred thousand (P500,000.00), or both fine
and imprisonment at the discretion of the Court. The offender shall likewise
be imposed a fine equivalent to eight times the commercial value of the forest
products destroyed without prejudice to payment of the full cost of
rehabilitation of the areas as determined by the Department: Provided, further,
That the maximum of the penalty prescribed herein shall be imposed upon
the offender who repeats the same offense, and double the maximum penalty

upon the offender who commits the same offense for the third time or more.

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The court shall further order the forfeiture to the government of all
improvements made therein, including all vehicles, domestic animals, and
equipment of any kind used in the commission of the offense. If not suitable
for use by the Department, said improvements, vehicles, domestic animals
and equipment shall be sold at public auction, the proceeds from which shall
accrue to the SFDF.

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

the government service.

SEC. 63. Misdeclaration or Falsification of Reports on Forest
Resource Inventory, Scaling, and Survey by a Government Official or
Employee. - Any public officer or employee who knowingly misdeclares or
falsifies reports pertaining to forest resource inventory, scaling, survey, and
other similar activity which are contrary to the criteria and standards
established in the rules and regulations promulgated by the Secretary
therefor, after an appropriate administrative proceeding, shall be dismissed
from the service with prejudice to re-employment. Upon conviction by a
court of competent jurisdiction, the same public officer or employee shall
further suffer an imprisonment of not less than eight (8) years nor more than
twelve (12) years and a fine of not less than One hundred thousand pesos
(P 100,000.00) nor more than Five hundred thousand pesos (P500,000.00). The
inventory, survey, scale, classification, and similar reports referred in this

section shall be rendered null and avoid.

SEC. 64. Unlawful Operation of Wood Processing Plants and
Downstream Forest-Based Industries. - Any person operating a wood
processing plant or downstream forest-based industry without authority from
the Secretary shall be punished by, upon conviction by a court of competent

jurisdiction, imprisonment of not less than eight (8) years nor more than

47


twelve (12) years and a fine of not less than Five hundred thousand pesos
(P500,000.00) and confiscation of the wood processing plant and
complementary equipment in favor of the government. The Department shall
promulgate the necessary guidelines, subject to the provision of this Act, that
will define the terms and conditions including the responsibility for a person
who will operate and operating a wood processing plant and/or other

downstream forest based industries.

SEC. 65. Prohibition on the Issuance of Tax Declaration on Forest
Lands. - Any tax declaration issued over forest land shall be considered null
and void.

Any local government official or employee who issues a tax declaration
for any purpose on any part of forest lands, upon conviction, shall be
penalized with imprisonment for a period of not less than four (4) years nor
more than eight (8) years and a fine of not less than One hundred thousand
pesos (P100,000) nor more than Five hundred thousand pesos (P500,000) and

perpetual disqualification from holding an elective or appointive office.

SEC. 66. Unlawful Possession of Implements and Devices Used by
Forest Officers. - Any person found possessing or using implements and
devices used by forest officers shall be penalized with imprisonment of not
less than eight (8) years nor more than twelve (12) years and a fine of not less
than One Hundred thousand pesos (P100,000.00) nor more than Five hundred
thousand pesos (P500,000.00) in addition to the confiscation of such
implements and devices and the automatic cancellation of any license
agreement, license, lease or permit.

Any forest officer who willingly allowed unauthorized person(s) to use
these implements and devices under his care shall be penalized with
imprisonment of not less six (6) years and one day to no more than twelve
(12) years and a fine of not less than One hundred thousand pesos
(P100,000.00) nor more than Five hundred thousand pesos (P500,000.00). In

48


addition, the convicted forest officer shall be dismissed from the service with
prejudice to reinstatement and with perpetual disqualification from holding

an elective or appointive position.

SEC. 67. Unauthorized Introduction of Logging Tools and Equipment
Inside Forest Lands.- It shall be unlawful for any person or entity to possess,
bring, or introduce any logging tools or equipment inside forest lands
without prior authority from the Secretary or his duly authorized
representative. Any person found guilty of illegal possession of said logging
tools or equipment shalll be liable to imprisonment of six (6) years and one (1)
day to twelve (12) years or a fine of not less than One hundred thousand
pesos (P100,000.00) nor more than Five hundred thousand pesos (P500,000.00)
or both imprisonment and fine, at the discretion of the court, and confiscation

of said logging tools and equipment in favor of the government.

SEC. 68. Non-Payment and Non-Remittance of Forest Charges.- Any
person who fails to pay the amount due and payable as forest charges to the
government shall not be allowed to transport, convey, sell, nor use the timber
or forest product. Moreover, failure to pay within thirty (30) days upon
assessment of forest charges shall be a ground for confiscation of the said
timber or forest product in favor of the government. Any person who fails or
refuses to remit to the proper authorities said forest charges collectible
pursuant to the provisions of this Act or the National Internal Revenue Code,
as amended, or who delays, obstructs or prevents the same, or who orders,
causes or effects the transfer or diversion of the funds for purposes other than
those specified in said Acts shall, upon conviction, be imprisoned for not less
than six (6) years nor more than twelve (12) years and fined from One
hundred thousand pesos (P100,000.00) to Five hundred thousand pesos
(P500,000.00) in addition to the payment of the assessed forest charges. If the

offender is a corporation, partnership, or association, the officers and
directors thereof shall be liable.

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SEC. 69. Institution of Criminal Action by Forest Officers. - Any
forest officer shall arrest even without warrant any person who has
committed or is about to commit, or is committing in his presence any of the
offenses defined in this chapter. The tools, animals, equipment and
conveyances used in committing the offense, and the forest products cut,
gathered, taken or possessed by the offender in the process of committing the
offense shall also be seized and confiscated in favor of the government. The
arresting forest officer shall thereafter deliver within six (6) hours from the
time of arrest or seizure both the offender and the confiscated forest products,
conveyances, tools and equipment, or the documents pertaining to the same,
and file the proper complaint with the appropriate official designated by law
to conduct preliminary investigation and file information in court. If the
arrest and seizure are made in the forest far from authorities designated by
law to conduct preliminary investigations, the delivery to and filing of the
complaint with the latter shall be done within a reasonable time sufficient for
ordinary travel from the place of arrest to the place of delivery. The seized
forest products, materials, conveyances, tools and equipment shall be
immediately disposed of in accordance with the regulations promulgated by
the Secretary.

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

investigation of criminal cases and file the information in court.

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SEC. 72. Liability of Custodian of Confiscated Forest Products. - Any
public officer who fails to produce the timber or forest products, including
tools, conveyances, equipment, and devices in his custody pursuant to a
seizure or confiscation made thereon, or who shall appropriate, take,
misappropriate, or shall permit another person to take such timber forest
products wholly or partially, shall suffer the penalty provided for
malversation of public funds or property under the Revised Penal Code, In
addition, the said public officer shall be dismissed from service with prejudice
to reinstatement and with perpetual disqualification from holding any

elective or appointive office.

CHAPTER XV
ADMINISTRATIVE PROVISIONS

SEC. 71. Strengthening of the Forest Management Sector. - In order to
effectively implement the provisions of this Act, the FMB shall be
transformed into a line bureau with functions clearly defined and enumerated
under the implementing rules and regulations of this Act. To ensure that the
scientific practice of forestry in the country is properly implemented, only
registered foresters shall be appointed to the positions of Director and
Assistant Director and Regional Directors of the FMB as well as to all other
positions where the services of professional foresters are required in
accordance with existing laws and the relevant rules and regulations issued
by the Civil Service Commission (CSC) and the Professional Regulations
Commission (PRC).

SEC. 72. Development of Mechanisms for Private Sector Participation
in Forest Management. - The Secretary is hereby authorized to adopt
appropriate mechanisms to strengthen private sector participation in forest
management, which shall include the accreditation of a national organization
of private investors including for profit non-government organizations and

people's organizations. The accredited national organization shall assist the

51


Department in the formulation and review of relevant policies to ensure the
contribution of the forestry sector to national economy and sustainable
development. It shall also assist the Department in evaluating applications
for forest management agreements; monitoring the performance of holders of
commercial tenurial instruments; ensuring the local supply of timber and
wood products; providing producers with access to local and international
markets; and ensuring the conservation and preservation of protection

forestlands and protected areas under the NIPAS Act.

SEC. 73. Authority of the Secretary on the Use of Forest Resources. -
The utilization of forest resources from natural forests found in forest lands,
government-established reservations, and all other lands including ancestral
domains or under the management of other government agencies shall be
prohibited unless covered by permits issued by the Department: Provided,
‘That in the case of ancestral lands and domains, the terms of the agreement
with the concerned indigenous cultural community shall likewise govern.

SEC. 74, Administrative Authority of the Secretary or his Duly
Authorized Representative to Order Confiscation. - In all cases of violations
of this Act or other forest laws, rules, and regulations, the Secretary or his
duly authorized representative may order the confiscation of forest products
illegally harvested, cut, gathered, removed or possessed or abandoned, and
all conveyances used either by land, water, or air as well as all machinery,
equipment, implements, and tools used in the commission of the offense and
to dispose of the same in accordance with pertinent laws, regulations, or
policies on the matter.

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

await the outcome of the judicial proceedings.

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

authority.

SEC. 75. Administrative Authority of the Secretary to Impose Fines. -
In all cases of violations of this Act and other forest laws, rules and
regulations where fine is the principal penalty, the Secretary, after
consultation with the forest-based industries affected, is hereby authorized to
impose administratively the penalty consisting of the amount and the
schedules of the fine which shall be officially published in a national

newspaper of general circulation.

SEC. 76. Authority of Forest Officers. - When in the performance of
their official duties, forest officers or other government officials or employees
duly authorized by the Secretary shall have free entry into areas covered by a
contract, agreement, license, lease or permit. Forest officers are authorized to
inspect and to open closed vans suspected to contain illegally harvested,
collected or transported forest product: Provided, That it is done in the
presence of the shipper or consignee or two (2) responsible public officials in
the locality. Forest officers are authorized to administer oath, take
acknowledgment in official matters connected with the functions of their
office, or take testimony in official investigations conducted under the
authority of this Act and the implementing rules and regulations issued by

the Secretary pursuant thereof.

SEC. 77. Visitorial Functions. - The Secretary or his duly authorized
representative shall, from time to time, investigate, inspect, and examine
records and other documents except bank records related to the operation of

any person granted the privilege, contract, or agreement to utilize forest

53


resources to determine compliance with the terms and conditions stipulated
in the grant, contract or agreement, this Act, and pertinent laws, rules, and

regulations.

SEC. 78. Other Incentives. - Fifty percent (50%) of the value of
confiscated materials shall be used as incentives to informants and members
of multi-sectoral forest protection councils, including Department personnel.
Additional incentives may be provided to personnel of the Department, in
addition to those provided under the Government Service Insurance System
(GSIS) or Workmen's Compensation Law. They shall also be entitled to free
legal assistance should legal cases be filed against them in the performance of
official duties.

SEC. 79, Protection to Witnesses in Cases Involving Violation of
Forestry Laws. - Witnesses to violations of this Act or other forestry laws and
regulations, including the immediate members of the family of said witnesses
shall be given protection, security and benefit, subject to the provisions of
Republic Act No. 6981, otherwise known as “The Witness Protection, Security
and Benefit Act" and its implementing rules and regulations.

SEC. 80. Rule-Making Authority. - The Department shall promulgate
the implementing rules and regulations within one (1) year from the
effectivity of this Act, in consultation with the NCIP, the DILG, the
Department of Finance, the leagues of provinces, cities, and municipalities,

and other government agencies.

SEC. 81. Congressional Oversight Committee on the Sustainable
Forest Management Act. - There is hereby created a Congressional Oversight
Committee composed of seven (7) members from the Senate Committee on
Environment and Natural Resources and seven (7) members from the House

of Representatives Committee on Natural Resources.

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

SEC. 82. Transitory Provision. - Upon the approval of this Act, the
Department shall evaluate the conditions of all forest lands covered by existing
tenurial instruments, MOAs, and other agreements and contracts which shall be
allowed to continue until their expiry unless terminated for cause.

CHAPTER XVI
FINAL PROVISIONS

SEC. 83. Separability Clause. - Should any provision of this Act be
declared unconstitutional or invalid, the same shall not affect the validity or
legality of the other provisions.

SEC. 88. Repealing Clause. - Subsections (b), (4), (e), (9, (g), and (i) of
Section 4 of Act No. 3915; Republic Act Nos. 460; Presidential Decree Nos.
705, 1153, 1515, 1559, 1775; Letter of Instruction No. 818; Executive Order Nos.
277 and 278, series of 1987, and Executive Order No. 725, series of 1981, are
hereby repealed, and all laws, orders, rules and regulations, or any part
thereof which are inconsistent herewith are likewise hereby repealed or
amended accordingly.

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

newspapers of general circulation.

Approved,

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