REPUBLIC OF THE PHILIPPINES
HOUSE OF REPRESENTATIVES
Quezon City

SEVENTEENTH CONGRESS
Second Regular Session

7090

House Bill N

Introduced by MAGDALO Party-List Representative
HON. GARY C. ALEJANO

EXPLANATORY NOTE

The failure to protect the forest lands and forest resources from timber companies’ exploitation
has been leading to the denudation of our forests and the consequent suffering of the entire
country caused by natural disasters. This scenario demonstrates a serious problem related to
public goods.

As a response to the problem of denuded forests, the total log ban has been advocated. However,
a total log ban is clearly not an optimum nor an effective response because it does not provide

sufficient incentives that are consistent with the preservation of forest resources.

This bill proposes a system of private land forestry, defining special agricultural lands and
permanent agro-forestry zones, and vesting in private individuals the property rights to such
lands. Private individuals exercising limited property rights over these lands under the
supervision of local government units (LGUs) will constitute the more effective enforcers of
practices that will contribute towards the renewal and preservation of our forest lands and

resources.

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

Representative
Magdalo Para sa Pilipino Party-List


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REPUBLIC OF THE PHILIPPINES
HOUSE OF REPRESENTATIVES
Quezon City

SEVENTEENTH CONGRESS
Second Regular Session

House Bill No. 7090

“Introduced by MAGDALO Party-List Representative
HON. GARY C. ALEJANO

AN ACT
INSTITUTIONALIZING PRIVATE LAND FORESTRY TO ENHANCE
REFORESTATION AND ENVIRONMENTAL PROTECTION AND PROVIDING
INCENTIVES THEREOF, AND FOR OTHER PURPOSES

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

SECTION 1. Short Title. - This Act shall be known as the "Private Land Forestry and
Incentive Act."

SEC. 2 Declaration of Policy. - \t is declared policy of the State to protect and advance
the right of the people to a balanced and healthful ecology through forest conservation and
reforestation. The State also recognizes the indispensable role of the private sector in
reforestation.

SEC. 3. Coverage. - This Act shall cover social forestry areas, alienable/disposable land,
and privately owned lands engaged in agro-forestry activities.

SEC. 4. Special Agricultural Lands and Permanent Agro-Forestry Zones. - Ail land
areas covered by the integrated social forestry program of the Department of Environment and
Natural Resources (DENR) pursuant to Letter of Instruction No. 1260 and such other areas as
may be determined by the DENR are hereby classified as special agricultural lands declared as
"Permanent Agro-Forestry Zones" and shall be available for land ownership or title by qualified
beneficiaries. As special agricultural lands such areas shall continue to be farmed with at least
twenty percent (20%) of the land planted to the trees or reforestation species and with
environmental protection measures.

SEC. 5. Application. —

A) All individuals qualified to be beneficiaries of the integrated social forestry program
of the DENR as provided in Administrative Order No. 4 dated February 27, 1991 are
hereby declared qualified to apply for the titling of a forestland of not exceeding
seven (7) hectares of Permanent Agro-Forestry Zone.

B) Alll individual forestland occupants awarded with certificates of stewardship contracts
under the integrated social forestry program of DENR as of the effectivity of this Act
are hereby qualified to apply for the corresponding land titles.

It is hereby provided that the qualifications to be beneficiaries of the integrated social
forestry program of government are as follows: Must be of legal age; Must be a citizen of the
Philippines; Must be actual tillers or cultivators of the land to be allocated; and Must be living
within the project area or adjacent barangay/sitio.


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SEC. 6. Conditions for the Grant. - The grant of certificates of land ownership or titles
to qualified beneficiaries under this Act shall be subject to the following conditions:

A) At least twenty percent (20%) of the social forestry area awarded to the occupant
shall be devoted to tree farming of suitable species to contribute to the reforestation
efforts of the government;

B) Trees and other vegetation along the banks of rivers and streams, bordering or passing
through the allocated areas, shall be protected and preserved: Provided, That if the
channel is at least five (5) meters wide, the protected strip, perpendicular to the edge
of the normal high waterline shall be twenty (20) meters. In case of rivers or
waterways less than five (5) meters in width, the strip shall be ten (10) meters on each
side;

C) The allocated land shall be developed, consistent with scientific and environmental
protection practices, into productive farms which are economically viable and enable
the occupant and his family to be self-reliant; and

D) Regardless of transfer of ownership, the area shall not be converted to uses other than
agro-forestry, except as determined by scientific/technical studies and expressly
allowed by law.

SEC. 7. Jurisdiction over Agro-Forestry Zones. - Consistent with Section 17 of
Republic Act No. 7160 or the Local Government Code, the local governments shall have primary
jurisdiction over agro-forestry zones for purposes of the implementation and enforcement of the
provisions of this Act.

SEC. 8. Transferability of Ownership. - Social forestry areas acquired by beneficiaries
under this Act may not be sold, transferred or conveyed except through hereditary succession or
to other qualified beneficiaries for a period of five (5) years from date of issuance of the original
certificate of land ownership or title.

SEC. 9. Private Forestry Areas. - The following shall be considered as private forestry
areas: (a) agricultural or alienable/disposable lands at least twenty percent (20%) of which area is
devoted to tree farming of reforestation species; (b) private lands converted to farms at least
twenty percent (20%) of which area is planted to reforestation species; and (c) social forestry or
agro-forestry zone areas covered by this Act.

SEC. 10. Incentives. - The following incentives are given to owners and
cultivators/developers of private forestry areas:

A) Exemption from payment of all taxes and agricultural forest charges including tariffs
or import duties on agricultural forestry equipment, machinery and farm processing
and other inputs, except net income tax;

B) Permission to sell, trade, dispose or export agro-forestry produce even in raw form;

C) Permission to sell or dispose of the land area and assets thereof in secondary markets
subject to the restriction in Section 8 of this Act;

D) Government guarantee of up to ninety percent (90%) of the amount loaned from local
or foreign sources for private forestry operations: Provided, however, That the
property and assets therein are mortgaged to the government as collateral; and

E) Preferential technical and administrative assistance from government agencies.


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SEC. 11. Disposal of Foreclosed Private Forestry Areas. - All private forestry areas or
lands foreclosed or acquired by the government through default of loans or violation of law shall,
within one (1) year after their titles are transferred in favor of the government, to be disposed to
qualified persons or entities.

SEC. 12. Economies of Scale. - \ndividual owners of private forestry areas may form
federations for purposes of economies of scale of operations; Provided, however, that individual
land ownership or title is preserved, and that twenty percent (20%) of the total land area, thus
pooled, is devoted to tree farming of reforestation species and the remaining areas subjected to
adequate environmental protection.

SEC. 13. Penal Provisions. - Social forestry areas which have not adequately
accomplished agro-forestry activities after five (5) years of ownership shall be forfeited in favor
of the government. Other violations of forestry, land and environment and other laws shall be
punished accordingly with respect to such codes or laws.

SEC. 14. Implementing Guidelines. - The Department of Interior and Local Government
(DILG), in consultation with the Department of Environment and Natural Resources, Agriculture
and Agrarian Reform, the Land Bank and other agencies concerned shall formulate the necessary
implementing rules and regulations within ninety (90) days after effectivity of this Act:
Provided, That such regulations include the creation of interagency Oversight Committee at the
appropriate field levels.

SEC. 15. Separability Clause. - \f any section or provision of this Act shall be declared
unconstitutional or invalid, the other sections or provisions not affected thereby shall remain in
full force and effect.

SEC. 16. Repealing Clause. - All laws, decrees, orders, rules and regulations and other
issuances inconsistent with the provisions of this Act are deemed modified, revoked or repealed
accordingly.

SEC. 17. Effectivity. - This Act shall take effect fifteen (15) days after its publication in
the Official Gazette or in at least two (2) national newspapers of general circulation.

Approved,