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SIXTEENTH CONGRESS OF THE REPUBLIC 
OF THE PHILIPPINES 
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First Regular Session 
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SENATE 
Senate Bill No. 155 3 
INTRODUCED BY SEN. JINGGOY EJERCITO ESTRADA 
EXPLANATORY NOTE 
This measure is a consolidated/substituted bill drafted by the Committees 
on Government Corporations and Public Enterprises, Economic Affairs, Ways 
and Means and Finance during the 14th Congress. 
. 
After more than four (4) decades since the enactment of Republic Act No. 
4850 entitled "An Act Creating the Laguna Lake Development AuthOrity, 
Prescribing its Powers, Functions and Duties, Providing Funds Therefor and for 
Other Purposes" in 1966, there is a need to amend and strengthen this law to 
make it more responsive and effective in view of the social, economic and 
political development in the country. 
Laguna de Bay is one of the important water resources in the country. It is 
our largest inland body of water which covers 14 cities and 17 municipalities 
located within the Provinces of Laguna and Rizal and parts of Batangas, Cavite, 
Quezon and Metro Manila. There are about 28,000 fisherfolk families that 
depend on it for livelihood. The water resources of the lake and its tributary rivers 
are used for irrigation, power generation, recreation, domestic water supply and 
navigation, among others. 
However, the protection and conservation of Laguna de Bay is greatly 
affected by unrestrained population growth, deforestation, land conversion, 
extractive fisheries and rapid urbanization. These factors have led to problems 
relating to solid waste management, sanitation and public health, congestion of 
shoreland areas, rapid siltation and sedimentation, unmitigated input of domestic, 
agricultural and industrial wastes, flooding and loss of biodiversity and water 
quality 
This bill seeks to strengthen the policy-making and regulatory powers of 
the LLDA to realize its vision of a self-sufficient and highly dynamic integrated 
water resource management authority, with competent and professional 
personnel who take the lead towards the sustainable development of Laguna de 
Bay. 
In view of the foregoing, approval of this bill is earnestly sought. 
OY EJERCITO ESTRADA 
Senator 


. , 
. , 
SIXTEENTH CONGRESS OF THE REPUBLIC 
OF THE PHILIPPINES 
First Regular Session 
SENATE 
Senate Bill No, .1553 
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INTRODUCED BY SEN. JINGGOY EJERCITO ESTRADA 
AN ACT 
TO STRENGTHEN THE LAGUNA LAKE DEVELOPMENT AUTHORITY 
(LLDA), REPEALING FOR THIS PURPOSE REPUBLIC ACT NO. 4850, AS 
AMENDED, OTHERWISE KNOWN AS THE LAGUNA DEVELOPMENT 
AUTHORITY ACT OF 1966, AND FOR OTHER PURPOSES 
Be it enacted by the Senate and House of Representatives of the Philippines in 
Congress assembled: 
SECTION 1. Short Title. - This Act shall be known as the "Laguna Lake 
Development Authority Act of 2013". 
SEC. 2. Declaration of Policy. - It is hereby declared the policy of the 
State to promote and develop Laguna Lake in a sustainable manner along with 
the surrounding areas that comprise its region, hereinafter referred to as the Bay 
Region, with Laguna Lake as its focal point whose water resources must be 
systematically managed and protected for various uses. 
For this purpose, the State hereby adopts an integrated water resources 
management (IWRM) approach, using the lake's watersheds as planning units to 
interconnect and integrate its various ecosystems pursuant to Art. II, Sec. 16 of 
the 1987 Constitution: "The State shall protect and advance the right of the 
people to a balanced and healthful ecology in accord with the rhythm and 
harmony of nature." 
In accordance with the IWRM approach, any development program in the 
region shall always consider sustainable environmental management and the 
prevention of any ecological harm, resource deterioration and pollution to allow 
,the lake to realize its full potentials including, among other uses, as a major 
resource in fish production of national importance. Under Article XIII, Section 7 of 
the 1987 Constitution, the State is mandated to protect, develop, and conserve 
communal marine and fishing resources, both inland and offshore. 
SEC. 3. Definition of Terms. - As used in this Act: 
1) 
Laguna Lake or Laguna de Bay. - shall refer to that area covered 
by the lake water when it is at the average annual maximum lake 
level of elevation 12.50 meters, as referred to a datum 10.00 
meters below mean lower low water. (M.L.L.W.) of Manila de Bay. 


, , 
Lands located at and below such elevation are public lands which 
form part of the bed of said lake. 
2) 
Integrated Water Resources Management (IWRM) - is a process 
that promotes the coordinated development and management of 
water, land and related resources in order to maximize the resultant 
economic and social welfare in an equitable manner without 
compromising the sustainability of vital ecosystems. 
3) 
Watershed - is the term used to describe the geographic area of 
land that drains water to a shared destination or to an area of land 
that drains down slope to the lowest point. The water moves 
through a network of drainage pathways, both underground and on 
the surface. Other terms used interchangeably with watershed 
include drainage basin or catchment basin. 
4) 
Environment - means the physical factors' of the total surroundings 
of human beings, including but not limited to the lakes and other 
bodies of water, land, air, atmosphere, climate, sound, odor, plants, 
insects, animals, its biological and physical factors, all its life 
support systems and all other surrounding matters that affect 
directly or indirectly the existence of human life and other life forms 
in a specific area. 
5) 
Shoreland / Lakeshore areas / Buffer Zone - that part of the lake 
along tire lakeshore lying at elevation 12.50 meters and below and 
alternately submerged or exposed by the annual or seasonal rising 
and lowering of the 'lake levels. This is a linear strip of land of 
approximately 
14,000 
hectares 
designed 
to 
separate 
the 
incompatible elements or uses, or to control pollution/nuisance and 
for identifying and defining development areas or zones. 
6) 
Ground water - means sub-surface water that occurs beneath the 
water table in soils and rocks, or in geological formations. 
7) 
Aquaculture - fishery operations involving all forms of raising and 
culturing fish and other fishery species in fresh, brackish and 
marine water areas. 
8) 
Aqua structure - refers to a structure enclosing a particular area in 
the lake which makes use of poles usually made of bamboo or 
anahaw and surrounded by nets, fastened by a weight of sinkers 
embedded in the lake bed; may also refer to a fish cage which is an 
inverted mosquito net fastened to poles usually made of bamboo or 
such other structures used for fish or aquatic resource culture. 
9) 
Effluent - means discharge from known sources which is passed 
into a body of water or land, or wastewater flowing out of a 
manufacturing plant or an industrial plant, including domestiC, 
commercial and recreational facilities. 
10) 
Pollution - shall mean any alteration of the physical, chemical and 
biological properties of any water, air and land resources of the 
Philippines or any discharge thereto of any liquid, gaseous or solid 
wastes as will be likely to create or to render such resources 
harmful, detrimental or injurious to public health, safety or welfare 
or which will adversely affect their utilization for domestic, 


, , 
commercial, industrial, agriculture, recreational or other legitimate 
purposes. 
SEC. 4. Laguna Lake Region. - For purposes of this Act, the Laguna 
Lake Region shall comprise the provinces of Laguna and Rizal; the cities of 
Calamba, Sta. Rosa, San Pablo, Pasay, Caloocan, Quezon, Manila, Makati, 
Mandaluyong, San Juan, Pasig, Marikina, Muntinlupa, Antipolo, Tagaytay, 
Tanauan, Taguig and Lipa; the towns of Silang, Carmona, Dasmariiias and 
General Mariano Alvarez in Cavite Province; the towns of Mauban, Real, Lucban 
and Sampaloc in Quezon Province; the towns of Sto. Tomas and Malvar in 
Batangas; and the town of Pateros in Metro Manila and all areas that drain into 
the Laguna Lake: Provided, That any cities or towns that may be subsequently 
created in the future out of the aforementioned municipalities and cities 
surrounding Laguna Lake shall automatically form part of the, Laguna Lake 
Region. 
' 
SEC. 5. Laguna Lake Development Authority. - Pursuant to the original 
mandate of Republic Act-No. 4850, as amended, the Laguna Lake, Development 
Authority, hereinafter referred to as the LLDA, shall pursue the ecologically 
sustainable development of the Bay Region. It shall maintain its principal office at 
a convenient place within the region, and such branch offices in other places 
within the Bay Region as are necessary for the proper conduct 
of its business. 
" 
SEC. 6. Powers and Functions. - The LLDA shall have the following 
powers and functions: 
(a) 
Periodically conduct, monitor and update a comprehensive survey 
of the Bay Region, including its socio-economic conditions, water 
quantity and quality in the lake proper and all its major tributary 
rivers, irrigation, water supply, transport route, reservoir of 
floodwater, hydroelectric and other power potentials, scenic and 
tourist spots, state of its watersheds, the tributary rivers and other 
physical and natural resource potentials on the basis of which it 
shall prepare a sustainable regional development master plan. 
All concerned public and private agencies shall provide the LLDA 
the necessary data for the purposes of the said survey; 
(b) 
Develop a long-term program to attract more private-sector-driven 
investments into the Bay Region in consonance with a regional 
master plan which shall be formulated in consultation with 
stakeholders, concerned government agencies, local government 
units (LGUs), and civil society in the Bay Region; 
(c) 
Review all plans, projects and programs that relate to the 
development of the Bay Region, proposed and submitted by LGUs, 
public corporations and private persons or corporations to ensure 
that they conform to the environmental standards prescribed by the 
LLDA and other similar laws; 
The LLDA shall collect reasonable fees as may be determined by 
the Board for the processing of such plans, programs or projects. 
Any future expansion of such plans, programs, or projects shall be 


again subject to LLDA review and to payment of additional fees as 
may be further determined by the LLDA Board; 
(d) 
Engage, whether by itself or in cooperation with private persons or 
entities, in agriculture, commerce, industry, or to organize, finance, 
invest in, and operate subsidiary corporations which are in the 
nature of new ventures or are clearly beyond the scope, capacity, 
or interest of private enterprises by reason of geography, technical 
or capital requirements, returns on investment and risk and when 
public interest so requires; 
(e) 
Implement infrastructure projects such as flood control, solid waste 
management, wastewater and sewerage, water supply, roads, 
ports; irrigation, housing, leisure parks and related works, within the 
context of its development master plan, including the readjustment, 
relocation, or resettlement of human population within the Bay 
Region that may be deemed necessary and beneficial in pursuit of 
the LLDA mandate. Should any of these projects be financed 
wholly or in part by the LLDA, it shall have authority to collect 
reasonable fees and tolls from users or beneficiaries to recover 
costs of construction, operation and maintenance of the projects. 
For infrastructure projects that are in the nature of social overhead 
capital projects, it shall be entitled to receive the corresponding 
financial assistance from the government; 
(f) 
Undertake 
a 
massive 
information 
campaign 
among 
the 
stakeholders, in close coordination with the LGUs and other 
government agenCies within the Laguna de Bay Region to promote 
better understanding of the importance of environmental protection 
and conservation of the Laguna Lake and its watersheds; 
(g) 
Implement dredging 
and/or 
reclamation 
projects 
in 
close 
coordination with the Philippine Reclamation Authority (PRA)/Public 
Estates Authority (PEA) and LGUs concemed with the end-in-view 
of faCilitating the approval thereof by the PRAIPEA pursuant to 
existing laws, executive orders and other issuances which may be 
necessary to accomplish the aims and purposes of the LLDA; 
Provided, That the land so reclaimed shall become the property of 
the national government through the LLDA; 
(h) 
Determine new areas of fishery development, taking into account 
the overall development plans and programs for Laguna Lake and 
related bodies of water and promulgate rules and regulations 
governing fisheries development in the Bay Region. Accordingly, it 
shall engage in experimental/pilot fish production such as the 
propagation of ornamental fish and similar aquaculture projects in 
Laguna Lake and other bodies of water within its jurisdictiOn, in 
collaboration with the Bureau of Fisheries and Aquatic Resources 
(BFAR). It shall improve present fishery techniques and practices to 
provide equitablfil acc;ess to its fishery resources for the socio-
economic amelioration of small fisher folk, improvement of their 
communal fishing grounds, sustainable aquaculture development 
and ·operation. In hiring laborers for fishery-related projects, there 
shall be preference for qualified shore land residents; 
(i) 
Regulate the u'se and occupancy of shoreland areas' by enjoining 
LGUs within the Bay Region to establish watershed management 


_. --
(k) 
(I) 
(m) 
(n) 
(0) 
(p) 
councils or wetlands whenever suitable and consistent with LLDA 
policies; 
Develop surface and groundwater supply sources for municipal, 
agricultural, commercial, and industrial use, in close coordination 
with the National Water Resources Board (NWRB), or Local Water 
Utilities Administration ,(LWUA), as the case may be, pursuant to 
existing laws, executive orders and other issuances which may be 
necessary to accomplish the aims and purposes of the LLDA; 
Enter into agreements with LGUs, governmental agencies and 
corporations and the private sector for the supply, treatment, 
distribution and marketing of such water; 
Establish and enforce anti-pollution standards on municipal, 
agricultural, commercial and industrial wastewater and effluents 
being discharged into the lake in coordination with appropriate 
government agencies; 
Conduct a continuing research, development and extension 
program in close coordination with the academe, Department of 
Environment and Natural Resources (DENR), and the Department 
of Science and Technology (DOST) on lake water quantity and 
quality, 
integrated 
watershed 
management 
and 
enterprise 
development and management with the end in view of promoting 
sustainable development in the region; 
Adopt rules and regulations governing the approval of sewage 
works and industrial waste disposal system and the issuance of 
clearance and/or permits in accordance with the provisions of this 
Act when necessary and inspect the construction and maintenance 
of sewage works and industrial waste disposal systems for 
compliance to clearance and/or permit conditions; 
Require all projects or activities in or affecting the Laguna de Bay 
Region to secure Environmental Compliance Certificates (ECCs) 
required under Presidential Decree No. 1586 and grant clearance 
and/or permits for any projects or activities located within or 
affecting the Bay Region including, but not limited to, industrial and 
commercial activities, navigation, irrigation, power generation, 
housing, resettlement and other forms of land developments, 
construction and operation of aqua structures, 
aquaculture 
development, dredginglreclamation and similar or related activities 
and to impose necessary safeguards for lake water quantity and 
quality control and management and to collect necessary fees for 
said activities and projects; 
Issue, renew, or deny permits subject to reasonable guidelines for 
the discharge of sewage, industrial waste, or for the installation or 
operation of sewage works and industrial disposal system or parts 
thereof for the prevention and abatement of pollution and require 
subdivisions, condominiums, clinical and medical establishments, 
mortuaries, public buildings, other similar human settlements, to 
construct appropriate central sewerage system and sewage 
treatment works. The LLDA may impose reasonable fees and other 
similar charges for the issuance or renewal of all permits herein 
required; 


(q) 
Issue orders or decisions to compel compliance with the provisions 
of this Act and its implementing rules and regulations after proper 
notice and hearing; 
(r) 
Make, issue, alter, or modify orders or decisions, after notice and 
hearing, requiring the discontinuance of pollution specifying the 
conditions and the time within which such discontinuance must be 
accomplished; 
(s) 
After due notice and hearing, revoke, suspend or modify any 
clearance and/or permit issued under this Act whenever the same 
is necessary to prevent or abate pollution; 
(t) 
Deputize or request assistance of appropriate government 
agencies or instrumentalities for the purpose of enforcing this Act 
and its implementing rules and regulations and the orders and 
decisions of the LLDA; 
(u) 
Authorize its bona fide representatives at all reasonable times to 
enter any public and private property devoted to agricultural, 
commercial and industrial use for the purpose of inspecting and 
investigating conditions relating to pollution and existing and/or 
imminent environmental danger; 
(V) 
Exercise such powers and perform such other functipns as may be 
necessary to carry out its duties and responsibilities under this Act. 
SEC. 7. Corporate Powers. - The Authority has the following corporate 
powers: 
a) Succeed in its corporate name; 
b) Sue and be sued in its corporate name; 
c) Adopt, alter and use a corporate seal; 
d) Adopt, amend, or repeal its by-laws; 
e) Enter into contracts to enable it to carry out its purposes and functions 
under this Act; 
f) Acquire, buy, purchase, hold or lease, such personal and real property 
as it may deem necessary in the transaction of its business or in 
relation to carrying out its 
purposes under this Act and to lease, 
mortgage, sell, alienate, or otherwise encumber, utilize, exploit or 
dispose any such personal and real property held by it, subject to 
individual or communal right of private parties or of the government or 
any agency or enterprise thereof; 
g) Exercise the right of eminent domain whenever the LLDA deems it 
necessary to achieve the objectives of this Act; 
h) Borrow funds from any local or foreign sources independent of the 
bonds it may issue or may continue to issue to carry out the purposes 
of this Act; 
i) Purchase, hold, alienate, mortgage, pledge or otherwise dispose of the 
shares of the capital stock of, or any bond, securities, or other 
evidence of indebtedness created by any other corporation, co-
partnership, or government agencies or instrumentalities; and while the 
owner of said stock to exercise all the rights of ownership, including the 
right to vote thereon: Provided, That the LLDA shall not invest its funds 
in any high risk debt instruments issued 
without recourse to 


commercial banks or investment houses as well as in any highly 
speculative stocks; 
j) Perform any and all acts which a corporation, co-partnership or 
juridical person is authorized to perform under the existing laws or 
which may be enacted hereafter; 
k) Provide economic incentives to encourage the private sector to fully 
subscribe to its shares of stock; 
I) Issue such other rules and regulations as may be necessary from time 
to time to achieve the purposes of this Act, the same to take effect 
thirty (30) days after its publication in a newspaper of general 
circulation. 
SEC. 8. Board of Directors. - The LLDA shall be governed by a Board of 
Directors who shall be appOinted by the President of the Philippines and shall be 
composed of the following: 
1) 
Secretary of Environment and Natural Resources, Chairman 
2) 
General Manager, LLDA, Vice-Chairman 
3) 
Governor, Province of Laguna, ex officio 
4) 
Governor, Province of Rizal, ex officio 
5) 
Secretary, Department of Agriculture 
6) 
Secretary, National Economic and Development Authority 
7) 
Secretary, Department of Public Works and Highways 
8) 
Chairman, Metro Manila Development Authority 
9) 
Representative of the Bay Region City and Municipal Mayors' 
Association to be. constituted Sixty (60) days from the passage of 
this Act from among the mayors of towns and cities that comprise 
the Bay Region as defined in Section 3 of this Act; 
10) 
Representative of the Laguna fisherfolk; 
11) 
Representative of the Rizal fisherfolk 
The representatives of the Laguna fisher folk and the Rizal fisherfolk shall 
be appointed by the President of the Philippines to be chosen from among the 
nominees recommended by the Laguna Governor and the Rizal Governor, 
respectively, upon consultation with the concerned sector. The term of the 
appointive members shall be six (6) years without reappointment, or until their 
successors are duly appointed and qualified.vacancy, other than through the 
expiration of the term, shall be filled for the unexpired term only. 
Ex-officio Cabinet members can designate alternate representatives to the 
Board, given the demands of their Cabinet-level position. 
SEC. 9. Powers and Functions. - The Board of Directors shall exercise 
the following powers and functions: 
a) 
Prescribe policies, rules and regulations to govern the conduct of 
business of the LLDA including the procedures of the Authority; 
b) 
Upon the recommendation of the General Manager, approve the 
LLDA's 
organizational 
and 
administrative 
structures 
and 
corresponding staffing pattern as may be deemed necessary: fix their 
reasonable compensation, 
allowances and 
other benefits in 
accordance with the salary standardization law; prescribe their duties 
and establish such methods and procedures a may be necessary to 
insure the efficient, honest and economical administration of the 


provisions and purposes of this Act; Provided, however, That all 
personnel of the LLDA below the rank of Assistant General Manager 
shall be appointed by the General Manager; Provided, further, That 
all personnel appointed by the General Manager, except those below 
the rank of Department 11eads, and others of comparable rank, shall 
be subject to the confirmation by the Board; Provided, further, That 
the personnel of the LLDA shall be selected only from civil service 
eligibles and be subject to civil service rules and regulations; 
c) 
Upon the recommendation of the General Manager, to approve the 
annual and supplemental budget of receipts and expenditures of the 
LLDA, and to authorize such operating and capital expenditures and 
disbursements of the LLDA as may be necessary or proper for the 
effective management, operation and administration of the LLDA; 
d) 
Create and organize a Technical Advisory Council composed of 
representatives from both the government and non-government 
sectors as the Board may determine to assist and advise the Board 
in the conduct of public consultations with Bay Region stakeholders 
towards a better considered formulation of LLDA plans and policies; 
and, 
e) 
Perform such other functions as may be necessary to carry out the 
provisions of this Act. 
SEC. 10. Board Meetings. - The Board shall meet at least once a month. 
SEC. 11. Per Diems. - The members of the Board shall each receive per 
diem at a rate in accordance with existing rules and regulations: Provided, 
however, that the total per diem collected each month shall not exceed the 
equivalent per diem for four (4) meetings. 
SEC. 12. Sinking Fund. - A sinking fund shall be established in such 
manner that the total annual contribution thereto accrued at such interests as 
may be determined by the Board of Directors as confirmed by the stockholders 
representing a majority of the subscribed capital stock outstanding and entitled to 
vote, shall be sufficient to redeem at maturity the bonds issued under this Act. 
Such funds shall be under the custody of the treasurer of the authority 
who shall invest the same in such manner as the Board of Directors may direct; 
charge all expenses of investment tO,said sinking fund,and credit the same with 
the interest on investment and other income belonging to it. 
SEC. 13. General Manager; Powers and Functions. - The General 
Manager shall be the Chief Executive Officer of the LLDA. As such, he/she shall 
have the following powers and functions: 
a) 
Submit for consideration of the Board policies and measures which 
he believes to be necessary to carry out the purposes and objectives 
of this Act; 
b) 
Execute, administer, and implement the policies, plans, programs 
and projects approved by the Board; 


c) 
Manage and supervise the operation and administration of the LLDA; 
d) 
Appoint all officials and employees of LLDA below the rank of 
Assistant General Manager, remove, suspend or otherwise discipline 
them for cause, in accordance with existing civil service rules and 
regulations, and submit quarterly reports to the Board on personnel 
selection, placement and training; 
e) 
Render an annual report to the Board and various stakeholders 
regarding the operation of the LLDA, including its latest financial 
statement; 
f) 
Represent the LLDA in all dealings with 'offices, agencies and 
instrumentalities of the government and with all persons and other 
entities, public or private, domestic and foreign; and, 
g) 
Perform such other functions as may be provided in the By-Laws and 
as may be vested in him/her by the Board. 
SEC. 14. Qualifications of. the General Manager. - The General 
Manager shall be a citizen and resident of the Philippines. He/She shall have 
demonstrated executive competence and experience in the field of public 
administration, 
economic planning, 
environmental 
and 
natural 
resource 
management, or in the establishment and management of large agricultural, 
commercial or industrial enterprises. No person shall be nominated as General 
Manager unless he/she is of unquestioned integrity and competence. 
SEC. 15. Tenure of Office of the General Manager. - The General 
Manager shall be appointed by the President of the Philippines for a 'fixed term of 
six (6) years. In case of resignation, retirement, separation, transfer, re-
assignment, removal and other cause of cessation from office, the replacement 
shall serve only for the unexpired portion of the term. 
SEC. 16. Compensation. -
The General Manager shall receive 
compensation at rates in accordance with the salary standardization law. 
SEC. 17. Management Structure. - In carrying out the activities of the 
LLDA, the General Manager shall be assisted by two Assistant General 
Managers - one for Operations and another for Administration - who shall have 
such powers, duties, and functions as the General Manager may prescribe and/ 
or delegate and shall act as the General Manager in his/her absence or during 
his/her temporary incapacity of and/or until such time as a new General Manager 
is duly appointed. 
The Authority shall have the following departments under the direct 
supervision and control of the General Manager: 
a) 
Corporate Legal Affairs Department which shall provide legal advice 
and support to all the corporate units on the legal implications of the 
various undertakings of the Authority and divided into Litigation 
Division, and Research and Documentation Division; 


b) 
c) 
d) 
e) 
f) 
Administrative Department which shall be responsible for providing 
services 
relating 
to 
human 
resource 
management, 
records 
management, and general services; 
Finance Department which shall be responsible on revenue planning, 
generation and enhancement, assistance on budgetary and financial 
matters, and safekeeping of corporate assets; 
Policy Planning and Management Services Department which will 
undertake policy research and development, and advise the General 
Manager on policy positions and public advocacy measures for 
approval of the Board; 
Integrated Water Resources Management Services Department 
which will serve as the main technical arm of the Authority and shall 
integrate the functions of lake basin management and development. 
It shall oversee the management of the Laguna Lake and its river 
systems including the shore lands; 
Environmental Protection Department which will manage all the 
environmental 
regulatory 
functions 
of 
the 
Authority 
like 
clearance/permits and 
licensing, monitoring 
and surveillance, 
enforcement and adjudication and environmental quality compliance. 
The Board shall periodically review the appropriateness of the existing 
organizational structure and amend the same whenever it may deem necessary 
and benefiCial to achieve the purposes of this Act and to be able to respond 
efficiently to LLDA's mandate as herein provided. Any proposed change in the 
organizational structure of the Authority shall be subject to the approval of the 
President of the Philippines. 
SEC.18. Annual Fees. - The LLDA is hereby authorized to collect annual 
fees for the use of the lake waters, its tributaries and shoreland areas for all 
beneficial purposes including but not limited to fisheries, aquaculture, municipal, 
agricultural, irrigation, commercial, industrial, hydroelectric generation and other 
power potential, transport and navigation, waste disposal purposes, recreation 
and dredging/reclamation from all private and public entities whether government 
or non-government agencies; among· others the water utilities sector. All the fees 
so collected shall be accordingly appropriated for the sustainable development of 
the lake and its watershed areas. Provided, that the fees collected for fisheries 
may be shared between the Authority and other government agencies and LGUs 
as follows: thirty-five percent (35%) of the fish pen fee goes to shore land LGUs, 
five percent (5%) goes to the Project Development Fund and the remaining sixty 
percent (60%) shall be retained by the LLDA. 
SEC. 19. Capitalization and Financing. - The LLDA shall have an 
authorized capital of Seven Hundred Million Pesos (P700,OOO,OOO). The 
authorized capital stock of Seven Hundred Million Pesos (P700,OOO,OOO) shall be 
divided into Seven Million (7,000,000) shares of stock with a par value of One 
Hundred Pesos (P100) per share. The National Government shall subscribe to 
Four Million Two Hundred (4,200,000) shares, the province of Laguna to Seven 
Hundred Thousand (700,000) shares, the .province of Rizal to Seven Hundred 
Thousand (700,000) shares, and the balance of One Million Four Hundred 
Thousand (1,400,000) shares shall be open for subscription to other government 


., 
agencies or LGUs and other private individuals or corporations within the Bay 
Region. 
The shares of stock of the LLDA shall be divided into: 
1) 4,900,000 ordinary shares (voting); and, 
2) 2,100,000 preferred shares (non-voting). 
SEC 20. Funding. - The amount necessary to subscribe and pay for the 
remaining shares of the national government to the capital stock of the LLDA 
shall be included in the annual General Appropriations Act. For LGUs, the funds 
shall be taken from their internal revenue allotment and other local funds. 
SEC. 21. Creation of LLDA Environmental Adjudication Panel. - For 
the purpose of effectively carrying out the quasi-judicial powers of the Authority 
within the Bay Region, the LLDA Environmental Adjudication Panel (LEAP) is 
hereby created to be composed of a Chairman and two (2) other members 
representing the Office of the General Manager, the Corporate Legal Affairs 
Department and the concerned department depending on the matter under 
controversy to be designated by. the General Manager. The LEAP is hereby 
mandated to take cognizance and adjudicate violations of this Act including all 
existing and relevant laws, LLDA policies, rules and regulations. Any decision, 
order or resolution must be concurred in by the majority of the panel and duly 
approved by the General Manager. 
The Corporate Legal Affairs Department shall serve as Secretariat of the 
LEAP. 
SEC. 22. Creation of a Lake Police Force. - The National Police 
Commission shall constitute and assign a special police force to be known as the 
Laguna Lake Police, exclusively for the Bay Region, trained especially for 
enforcement of laws on fisheries and environmental laws and the rules and 
regulations duly promulgated by the LLDA. 
The extent of operational supervision and control by the General Manager 
over the Laguna Lake Police shall be the same as that of local chief executives 
over police force of LGUs as defined in the Department of Interior and Local 
Government Act of 1990 (R.A. 6975), in relation to Sec. 73 of the Local 
Government Code of 1991 (RA 7160). The LLDA Board, the local government 
units (LGUs) and the leadership of the Philippine National Police shall within sixty 
(60) days from the passage of this Act constitute a technical working group that 
will further delineate and define the nature and character of this unit in order to 
avoid any overlap and potential conflict with the LGU police units within the Bay 
Region. 
SEC. 23. Exemption from Tax. - The Authority shall be exempt from all 
taxes, licenses, fees, imposts, charges, costs and duties except real property tax 
incidental to its operations and service/filing fees in any court or administrative 
proceedings in which it may be a party, restrictions and duties to the Republic of 
the Philippines, its provinces, cities, municipalities and other government 
agencies and instrumentalities. Such exemption shall include any tax or fee 
imposed by the government on the sale, purchase or transfer of foreign 


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exchange. All notes, bonds, debentures and other obligations issued by the 
Authority shall be exempt from all taxes both as to principal and interest. 
SEC. 24. Fines and Penalties. - The LLDA is authorized to impose 
administrative fines and other penalties it may deem reasonable and appropriate 
within the bounds of existing law on the same or similar offenses as determined 
and approved by the Board for non-compliance with permit conditions and for 
undertaking development activities without clearance/permit from the LLDA 
against any person, juridical or otherwise, within the Bay Region who may be 
found violating, or have in fact violated, any of its rules and regulations. 
Likewise, the LLDA is authorized to institute the necessary legal 
proceedings against those who shall commence to implement any development 
activities within the Bay Region not cleared nor approved by the LLDA. 
SEC. 25. Damages. - Compensation for any damage to the shore land, 
water and aquatic resources of Laguna Lake and its tributaries resulting from 
failure to meet established water and effluent quality standards or from such 
other wrongful act or omission of a person, private or public, juridical or 
otherwise, punishable under the law shall be awarded to the LLDA for water 
quantity/quality control and management projects. 
SEC. 26. Penal and Civil Liability Clause. - Any person, natural or 
juridical, who shall violate any of the proviSions of this Act or any rules and 
regulations promulgated by the Authority pursuant thereto shall be liable to 
imprisonment of not exceeding three (3) years or to a fine not less than Fifty 
Thousand Pesos (P50,OOO.OO) or both at the discretion of the court. This is 
without prejudice to the imposition of penalties as may be provided under existing 
and relevant laws, rules and regulations. 
If the violator be a corporation, partnership or association, the officer / 
officers of the organization concerned shall be held liable, 
The LLDA is hereby authorized to initiate, file, prosecute and defend all 
suits, actions or to pursue separate civil actions for damages resulting from 
infractions of the provisions of this Act, rules or regulations issued pursuant 
thereto and/or conditions embodied in the clearances or permits issued by the 
Authority. 
SEC. 27. Auditor. - The Chairman of the Commission on Audit shall be 
the ex officio Auditor of the LLDA. For this purpose, he/she may appoint a 
representative who shall be the Auditor of the LLDA, and the necessary 
personnel to assist said representative in the performance of his/her duties. 
The Chairman of the Commission on Audit or his/her authorized 
representative shall submit to the Board soon after the close of each calendar 
year, an audited statement showing 'the financial condition and progress of the 
LLDA for the calendar year just ended. 
SEC. 28. Implementing Rules and Regulations. - The LLDA in 
coordination with the proper standing Committees of both the Senate and the 
House of Representatives and other concerned agencies shall promulgate the 


· , 
implementing rules and regulations (IRR) for this Act, within six. (6) months after 
its enactment: Provided, that the rules and regulations issued by other 
government agencies and instrumentalities for the prevention and/or abatement 
of water pollution not inconsistent with this Act shall supplement the rules and 
regulations issued by the LLDA pursuant to the provisions of this Act. 
SEC. 29. Repealing Clause. - Republic Act No. 4850 as amended, 
Presidential Decree No. 813, and Executive Order No. 927, and all laws, orders, 
issuance, rules and regulations inconsistent herewith are hereby repealed. 
SEC. 30. Separability Clause. - If any. provision of this Act is declared 
unconstitutional, the same shall not affect the validity and effectiveness of the 
other provisions hereof. 
SEC. 31. Effectivity. - This Act shall take effect fifteen (15) days following 
its publication in at least two (2) national newspapers of general circulation. 
Approved,