ee

Senate

SIXTEENTH CONGRESS OF THE) Gite ofthe Seeeelary

REPUBLIC OF THE PHILIPPINES —_)
First Regular Session )

13 JUL -9 A920
SENATE

8.B. No. 675 :

RECERY OD BY: t

Introduced by Senator LOREN LEGARDA

EXPLANATORY NOTE

‘This bill mandates the planting of one billion trees all over the Philippines to address
the depletion of the forests in our country.

‘The rate of deforestation in the Philippines has reached an alarming rate. Of the total
Jand area of the Philippines of 30 million’ hectares, the forest area has decreased to 7.2
million hectares, Even Conservation International ranked the Philippines fourth in 2011, as
one of the world’s ten most threatened forest hotspots.

The proposed measure enlists the participation of different sectors of society in the
task of restoring the grandeur of our forest lands. Various government agencies, local
government units; non-government organizations, private landowners, corporations,
indigenous peoples, individual families and government personnel who form themselves
into cooperatives, the upland, lowland and coastal communities, and interested individuals
are in partnership to plant forest and fruit tree species in private lands, in idle portions of
alienable and disposable lands (A & D), and open and denuded public forest lands.

Groups and individuals who participate in this program are given benefits and
incentives. For instance, those who planted and maintained the trees along highways,
roadsides, and other vacant portions of public A & D land shall have exclusive right to
harvest and utilize the trees when they mature. Moreover, community-based forest
managers shall have the right to make the reforested and protected area an eco-tourism
spot. They can collect entrance fees and put up income-generating auxiliary services for the
maintenance and conservation of the area. They are also exempted from forest charges and
real property tax. Finally, this bill makes it illegal for any person who is not a member of the
community or cooperative that planted the trees to cut or gather trees from reforested areas.
It will also prohibit the conversion of forestlands into agricultural, pasture and mining and
other non-forest uses.

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

“man

Senator



Beep eee eee
SRE VRGEESHASE

Cann aane ON KR

ee

Seuate

SIXTEENTH CONGRESS OF THE) 016. of the Seoetary

REPUBLIC.OF THE PHILIPPINES —_)
First Regular Session )

13° JUL -9 A920
SENATE

s.6.No. 875 RECEIVED me ‘

Introduced by Senator LOREN LEGARDA_

‘
AN ACT

ve) SPUR THE PLANTING OF A. BILLION TREES THROUGH

COMPLEMENTARY TREE PLANTING PROGRAMS OF THE DENR AND
VARIOUS GOVERNMENT AGENCIES, LOCAL GOVERNMENT UNITS AND
COMMUNITIES, SCHOOLS AND UNIVERSITIES, AND CIVIC AND NON-
GOVERNMENTAL ORGANIZATIONS, PROTECTING THE REMAINING
NATURAL FORESTS AND FOREST PLANTATIONS, AND CREATING A
FUND THEREFOR, AND FOR OTHER PURPOSES

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

CHAPTER 1
BASIC POLICIES, OBJECTIVES, COVERAGE
AND IMPLEMENTING AGENCIES INVOLVED

SECTION 1. Title. - This Act shall be known as the "Billion Trees Act of
2013.”

SECTION 2. Declaration of Policy. - 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. The protection and rehabilitation of forest lands shall be

given the highest priority to ensure environmental stability of the nation.

The State shall adopt and implement a sustainable forest development and
management program. It shall promote the participation of all sectors of society,
particularly national government agencies, the upland, lowland, and coastal
cominunities, local government units (LGUs), non-governmental organizations
(NGOs), schools, colleges and universities, private landowners and corporations and
indigenous people in replanting denuded forest land and idle and disposable land.

“The State shalll likewise promote community-based forest management

1



SECTION 3. Objectives. - The Billion Trees Program aims to improve the

country's ecology and the forest regeneration capacity. More specifically, it intends:

(a) To significantly increase reforestation efforts in upland, lowland and coastal
communities in a more efficient manner;

(b) To reverse the deteriorating effects of soil erosion, flash flooding, siltation of
rivers and dams, drought and other negative consequences of denuded
upland;

(0) To make forest and fruit tree seedlings available and more accessible to all
cities and municipalities in the country;

(@)To promote forest diversity by planting dipterocrap, pine, mossy and
mangrove forest species in portions of the plantation whenever feasible;

(e) To help rehabilitate wildlife habitat through effective forest protection
strategy;

(6) To ensure adequate supply of forest and agricultural products in the future;

(g) To generate employment opportunities and provide additional income to the
countryside and rural communities.

. 1
SECTION 4. Coverage. - At least one million (1,000,000) hectares of open and
denuded public forest lands, private lands, and idle portions of alienable and
disposable (A & D) lands are targeted for the for the first five (5) years to be planted
to both forest and fruit tree species.

SECTION 5. Definition of Terms. - As used in this Act, the following terms
shall mean:

(a) "Critical watershed” refers to a drainage area of a river system, lake or water
reservoir supporting existing and proposed hydroelectric power plants,
domestic water supply, and irrigation works needing immediate
rehabilitation and protection to minimize soil erosion and improve water
yield.

(b) “Community” is a group people who may or may not shake common
interests, needs, visions, goals, and beliefs, occupying a particular territory

inside or adjacent to forest land or national park.



wo awaagk ON

ou
12
13
14
15
16
7
18
19

22

24

27

29
30
31
32
33

(0) “Eco-tourism spot” is a plantation. site developed for biodiversity
conservation, cultural, and human enjoyment such as a forest park, bird, and
some wildlife sanctuary, and where sound tourism activities are
sustainability implemented, yielding socio-economic benefits. The developer
can put up auxiliary services, collect appropriate fees, for his/her income and
for the maintenance of the area.

(€) “Forest diversity” is the variety and vatiability of forest species growing in
the forest land. In the plantation, at least three (3) different species, including
fuelwood species, and other species such as banana, bamboo, and the like,
should be planted every ten (10) hectares, with the least planted species
occupying at least one-fifth (1/3) of the ten-hectare area.

(@) “Forest charges” refer to the charges imposed and collected by the
government on forest products cut, harvested or gathered from forest lands
as specifically provided for under Republic Act No. 7161.

() "Forest lands' are those lands of the public domain, which have been
classified into production forest lands and protection forest. Forest

reservation refers to forest lands, which have been set aside by the law for a

specific purpose, such as watershed reservation, military or civil reservation.

(g) "Community-based Forest Management and Agreement (CBFMA)" refers to
an agreement between ‘the Department of Environment and Natural
Resources (DENR) and an organized community acting through its duly
authorized forest manager, known as community-based forest manager
(CBEM), for the management by said community of a specified area in the
public domain according to a comprehensive management and development
plan and, in consideration therefore and certain other obligation, grants, said
community the right to harvest, process, sell or otherwise utilize the trees and
other products grown by them or from the residual forest within their
specified area. The agreement is granted for fifteen (15) year, renewable for
another fifteen (15)years.
All references to "Forest Land Management Agreement (FLMA)" and "Forest
Land Manager (PLM)" are likewise hereby amended as "Community-based
Forest Management Agreement (CBFMA), and Community-based Forest
Manager (CBEM)" and Community-based Forest Manager (CBFM)",
respectively.



eonrruanckr ene

(h) "Fuelwood species" are species of high caloric value and are suitable for
fuelwood or firework such as, but not limited to ipil-ipil, kakawate, agoho,

kamachile, gmelina, acacia, bakaua, and neem tree.

"Industrial Forest Plantation Management Agreement (IFPMA)! is a contract
entered into by and between a qualified person and the government for the
former to occupy and possess for a definite period of time in consideration of
a specified rental a specific area of the production forest land, in order to

establish an industrial forest plantation.

) "Indigenous peoples" refer to a tribe or indigenous F
continuously..lives as communities on communally bounded and defined
land since time immemorial and have succeedéd in preserving, maintaining
and sharing common bonds or languages, customs, traditions, and other
distinctive cultural traits.

(&) "Military reservation" reférs to forestland, which have been proclaimed by the
President of the Philippines for military purposes such as air bases,

_ campsites, docks and harbors, firing ranges, naval bases, target rangers, and
wharves.

(I) "National Park" refers to a land of the public domain essentially of natural,
wilderness, scenic or historic character which has been withdrawn from
settlement, occupancy, or any form. of development, except in conformity
with an approved management plan, and set aside such to conserve the area
and to preserve the scenery, the natural and historic objects, wild animals and
plants therein mainly for biodiversity and/or human enjoyment.

(m) "People-oriented forestry" is.a program democratizing access and
management of forest land to poor upland and coastal dwellers. Aside from
CBFMA, this may include Integrated Social Forestry Program (ISFP),
Community Forestry Program (CEP), and Ancestral Land Management.

(n) "Silviculture" refers to: scientific method ‘of growing forest trees, their
management and harvest. This includes such practices as assisted natural
regeneration (ANR), timber stand improvement (ISI), and selective cutting
method.

(0) "Private lands" refers to lands covered by either administrative or judicial
titles such as free patent, homestead, and sales patent, torrens title obtained
under the Land Registration Act (Act No. 49), as amended.



SECTION 6. Implementing Agencies Involved. - The following departments

shall perform major roles:

(a) The Department of Environmental and Natural Resources (DENR) and its
network of Provincial/Community Environment and Natural Resources
Offices (PENROs/CENROs) shall be the overall coordinating and monitoring
agency of the Program, particularly in the identification, selection and
allocation of sites, making available quality planting materials, using
recyclable potting materials whenever possible, the planting of the right
species in particular areas, prioritization of critical watersheds, application of
efficient reforestation technologies like cover cropping prior to plantation, the
planting of fuelwood species in specific areas, the necessary steps to protect
the remaining natural forests and national parks, and information and
campaign drive
It shall ensure that the permit to cut and transport trees from plantation shall
be issued within thirty (80) working days from the date the application is

‘filed. :

(b) The Department of Interior and Local Government (DILG) and local
government units (LGUs) shall mobilize the police and help organize
communities and other sectors of society to participate in the Program.

(e) The Department of National Defense (DND) shall organize a special unit
whose main responsibility is reforesting denuded portions of military
reservations and other areas designated by the DENR, and protecting
forested areas, both natural and plantation. It shall also assign DND
personnel on a full-time basis in protecting forest areas, in accordance with
Section 24 hereof. .

(d) The Department of Agriculture shall assist upland communities raise fruit
tree seedling, and provide them knowledge on- proper and sustainable
agricultural technologies and practices.

(6) The Department of Education (DepEd) shall strengthen environmental
education and mobilize the students to plant trees and take care of them in
appropriate vacant areas in their localities. ~

(0) The Department of Public Works and Highways (DPWH) shall organize
special units to plant appropriate and available species on strips of land along
national and arterial roads and maintain and protect them.

(g) The Department of Tourism (DOT) shall identify and promote eco-tourism
plantation in coordination with the DENR.



oC aN ankr one

(h) Other government agencies and state colleges and universities with
administrative jurisdiction over tracts of public lands shall, as necessary, also
rehabilitate and reforest said lands.

CHAPTER 2
REFORESTATION BY UPLAND COMMUNITIES

SECTION 7. Community Reforestation with Community-Based Forest
Management Agreement (CBFMA). - New reforestation, assisted natural
regeneration (ANR), and related programs shall be awarded mainly to upland and
coastal communities. Individuals, families, police, military, and other government
personnel who wish to participate shall form themselves into cooperatives. The
agreement shall be granted for twenty-five (25) years, subject to the terms and
conditions in the CBFMA and subsequent rules and regulations promulgated.

SECTION 8. Role of Non-governmental Organizations (NGOs) and
Academic Institutions. - The NGOs and academic institutions shall be tapped to
handle relevant services, especially social and technical training and monitoring and
evaluation of the reforested area: Provided, That the NGOs and academic institutions
that handled the training will not be the same ones that will conduct the monitoring
and evaluation of the reforested area.

SECTION 9. Rights and Obligations of the Community-Based Forest
Manager (CBFM). - The CBEM can harvest, process, sell or otherwise utilize the
products grown by him/her on land covered by the CBFMA, or make portions of
the contracted area into an eco-tourism spot. The CBFM shall have the following
obligations:

(a) Practice appropriate silvicultural system or cutting regimes for mature trees
in accordance with management plans; cleared areas shall be immediately
replanted within one (1)year after cutting;

(b) Promote forest biodiversity by planting indigenous forest species and
conserving natural forest species in contracted forest areas. Fuelwood trees

| can be planted to add to species diversity and to eliminate the community's

need to cut prime wood species for fuel and charcoal purposes.



wean ank ene

(©) Pay the government through the DENR, a production share out of income
from sales of products harvested from the CBFMA areas in an amount
equivalent to the real value of government investment in the area;

(d) The awarded groups shall ensure high survival rate of planted seedlings,
maintain and protect trees until maturity, in exchange for their right to
harvest and utilize and trees after sometime.

SECTION 10. Additional Area for Fruit Trees Plantation. - For every six (6)
hectares of area planted to forest species, the community is allowed to plant one (1)
hectare to fruit trees and other agricultural crops. The land tenure shall be co-
terminus with the terms of the CBFMA.

The DA and developed extension workers. shall assist the community
contracts raise’ fruit tree seedlings. They shall also train the communities proper

agricultural technologies and practices.
SECTION 11. Other Incentives.,- CBFMs shall enjoy the following benefits:

(a) Reforested area as an eco-tourism spot. Community forest managers and
CBEMs shall have the right to make the reforested and protected area an eco-
tourism spot. They can collect gate/entrance fees and -put up income-
generating, auxiliary services for the maintenance and conservation of the
area. Operation of the area shall be coordinated with the Department of
Tourism (DOT) for tourism promotion, and the LGUs for infrastructure
support and collection of appropriate taxes.

(b) Market linkage for the agricultural output. The DA, in coordination with
agribusiness research organizations of the private sector shail update upland
farmers of market prices of fruits and other agricultural products, and assist
them in identifying buyers and marketing outlets.

(c) Market linkage for their forest products. The DENR and other concerned
agencies and groups, shall update upland forest managers and CBFMs of
domestic buyers of particular forest products, including the specified product
quality.

(4) Option to turn over the management and right to harvest the reforested land
to the DENR after five (5) years of the CBFMA. This is particularly applicable

in plantations and ecotourism spots where the trees are better left to grow



ward na wen

11
12
13
4
15
16
17
18
19
20
2

24

26

8B

30
31
32

34
35

and mature beyond the fifty (50) year constitutional limit. The government,
through the DENR, shall compensate the CBFM the amount equivalent to the
stumpage value of standing trees minus real investment of the government in
the area.

(e) Priority to be granted additional area for ‘reforestation with CBEMA, or
through an Industrial Forest Plantation Management Agreement (IEPMA) of
purely plantation establishment type.

() Exemption from forest charges and real property tax. CBFMs and awardees
of other people-oriented forestry programs shall be exempted form paying
taxes on revenue from reforested and protected areas,

(g) Right to secure the growing trees. CBFMs may use the plantation of at least
five (5) years old with adequate forest stand, in the issuance of asset-backed
securities, such as bonds and stocks, to finance the reforestation of another
area. Said asset-backed securities shall enjoy tax breaks and other incentives

whenever possible, as already provided under existing, laws.

CHAPTER 3
REFORESTATION BY AFP/PNP PERSONNEL

SECTION 12. Reforestation of Denuded Military Reservation Areas. -
Spearheaded by the organized special units, all units of the Armed Forces of the
Philippines (AFP) stationed in the military reservation area, whether temporarily or
permanently, shall be involved in reforesting denuded portions of the area not
utilized for military and training purposes. They and the succeeding units shall
maintain and protect the trees until maturity. Reforestation costs for three (3) years
shall be funded by the DND. Likewise, maintenance costs shall be shouldered by the
DND. .

SECTION 13. Incentives. - The military and police personnel participating in

the reforestation shall be entitled to the following incentives.

(a) Additional allowance in compensation for the particular task or phase of the
contract they have completed; ‘

(b) Rights and obligations of the Community-based Forest Manager under
Sections 9 and 11 above;



Con aanek ene

n
12
13
4
15
16
WV
18
‘19
20
2
22
23
24

26

29

31

32
33

36

(c) Acquisition of the shares of stock of the cooperative/ corporation to be formed
representing the economic value of trees planted;
. (d) Earning from said stocks and revenue shares from the sale of forest products
yielded by the plantation as their retirement credits in the future

SECTION 14. Report to the DENR. - The AFP and the PNP shail submit an
annual report to the DENR on the progress of their projects including the area they
have reforested, and the fesults of their operations in forest protection as mandated
in Chapter 6 of this Act.

CHAPTER 4
PRIVATE INDIVIDUALS AND CORPORATIONS’ INVOLVEMENT

SECTION 15. Adoption of a Reforestation Project. - Private corporations,
foundations, foreign and local NGOs, and similar institutions ‘shall be invited by the
DENR and local government officials to adopt and finance a denuded area for
reforestation and protect trees. The assistance can bé channeled directly from the
donor to the upland implementers and beneficiaries and assisting local NGOs, The
DENR shall be informed of such arrarigement for assistance in identifying priority
areas of reforestation. If funds are channeled through the DENR, the latter shall
enter into a Memorandum of Agreement (MOA) with the donor to account for wise

and proper spending of the donated funds.

SECTION 16. Adoption of a Forested Area for Protection. - The private
sector, in.coordination with the DENR, may adopt a particular forested area, like
portions of a national park, for protection and biodiversity conservation through
MOA with the DENR. The mechanics for the channeling of funds as specified in
Section 15 above shall be adopted. The DENR shall be identify and publish area

available for adoption.

SECTION 17. Development of Private Forestry and Incentives. - Private
landowners who shall plant forest trees in their lands shall enjoy the following
incentives:

(a) Technical assistance from the DENR on proper silvicultural practices;
(b) Update of forest products. market and prices by the DENR and wood

producers’ groups or association;



we eXdNaankone

0
i
12
B
4
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32

133
34
35
36

(c) Exemption from forest charges under Republic Act No. 7161 and value-added
tax (VAT) for the sale, barter or exchange of timber and forest products, and
from real property tax under Republic Act No. 7160;

(A) Priority in credit assistance granted by the government-owned and controlled
corporations at reasonable interest rates; and ‘

(e) No restriction in exporting timber and other forest products grown in the

Tand.

For certification purposes, tree plantations shall be registered with the

barangays and municipal offices, which shall maintain permanent registry books.

SECTION 18. Planting of Fuelwood Species. - The DENR shall disseminate
technology on the planting of fuelwood species for firewood purposes to lessen the

pressure on the cutting and harvesting of prime wood species for firewood

purposes.

SECTION 19. Ownership of Planted Trees Along Highways. - Those who

‘planted and maintained the trees along highways, roadsides, and other vacant

portions of public act A é& D Jand shall have exclusive right to harvest and utilize the
trees when they mature. The local City Environment Natural Resources Office
(CENRO) shall allocate among interested individuals and/or groups the space
available for, this arrangement, and issue the necessary papers granting such

exclusive rights and ownership to the awarded party.

Should the local DENR office and the local government unit decide to keep
the trees for ecological and beautification purposes, they shall compensate the
parties who planted and protected the trees the value equivalent to the market value

of the trees at the time the turn-over is made.

SECTION 20. Recognition Award. ~,In recognition, the DENR, the
Department of Trade and Industry (DTI) and the Philippine Information Agency

* (PIA) shall, advertise the names of participating corporations, agencies and NGOs

and their environmental projects. Awards and recognition shall be determined by

-the DENR in collaboration with other government agenciés in the implementing

tules and regulations (IRR) to be promulgated pursuant to this Act.

10



wo eN ane wn ee

CHAPTER 5.
REFORESTATION BY LOCAL GOVERNMENT UNITS

SECTION 21. Seedling Nursery in Every City/Municipality. - Pursuant to
Section 17b (i, Siii) of the Local Government Code, seedling nurseries shall be
established in every city or municipality, for this purpose, local governments shall
be allowed to enter into contract with private enterprises. Nursery supervisors
whose positions shall be created by LGUs shall be hired and designated by LGUs to
establish and oversee such nurseries containing both forest and fruit tree species,
though mainly the former, seeds shall be sourced from certified Seed Production
Areas (SPAs) certified by the DENR.

SECTION 22. Establishment of | Mini-Forest Parks in Every
City/Municipality, - Every city or municipality shall establish a mini-forest park or
multi-purpose park such as a botanical garden at a ration of not less than one (1)
park per fifty thousand (50,000) population, each park to be at least half a hectare or
five thousand square meters (5,000 sq.m.) in area whenever practicable or to the
extent possible. Fach city or municipality shall submit to the DENR the list of
available lands for such purpose and include in its yearly budget the necessary
funds for the establishment and maintenance of the urban forest parks. The
Secretaries of the DENR and DILG shall coordinate closely to ensure compliance
with this provision, and shall coordinate with various agencies of the national

government and the private sector to enhance the implementation of urban forestry.

Roadsides and islands, school campuses, office compounds, cemeteries,
riverbanks, shorelines and other areas shall also be planted with trees. Students,
employees, members of civic and people's organizations shall be invited to
undertake the activity. The maintenance and protection of the trees shall be closely
coordinated by the LGUs, the DENR and all other concerned agencies.

Every subdivision project to be developed after the promulgation of this Act
shall be included the establishment of parks not less than twenty five percent (25%)
of the required open space in accordance with Presidential Decree No. 953.
Guidelines for the establishment: and maintenance of these parks within
subdivisions shall be prepared jointly by the Housing and Land Use Regulatory
Board (HLURB) and the Department of Environment and Natural Resources,

11



CaN anak One

in

12
13
4
15
16
7
18
19.

21

24

26
7

29

31
32

ae 8

SECTION 23. Recognition of Outstanding of "Greenest" City or
Municipality. - - Three (3) years after the effectivity of this Act, the outstanding city or
municipality in each province having the best mini-forest parks and reforested idle
portions of A & D land shall be given recognition and awards by the DENR and
promoted by the DOT as among the priority eco-tourism destination areas in the
country: Provided, That the necessary infrastructure and tourism services must

already be in place before the area is promoted as an ecotourism attraction.

CHAPTER 6
FOREST PROTECTION

SECTION 24. Forest Protection Teams. - The Secretary of DENR shall
enforce forestry laws to protect the remaining natural forests and plantation forests
from illegal loggers, poachers, kaingin farmers, pests and diseases, fires and other
forest destroyers. Forest protection teams under the DENR shall be organized
consisting of personnel drawn from the DENR, the AFP, and the PNP on a full-time
basis. They shall be assisted by personnel from other government agencies, civilian
volunteers, and concerned NGOs. Equipments shall be aeauieed by the DENR aside

from equipment support provided by other units.

SECTION 25. Incentives. - Members of the teams shall be granted incentives
to include higher base pay, hazard pay, uniform allowance, group issuance, and a
reward system of twenty percent (20%) of the value of the forfeited materials
pursyant to Section 34 of this Act. .

SECTION 26. Forest Protection Equipment. - The DENR, as lead agency, the
DILG, and the DND, shall provide the teams with primary equipment such as
aircraft, global positioning systerhs, land transportation, communication facilities,
ground fire fighting equipment, and basic pesticides against common forest pests

and insects.

SECTION 27. Control of Forest Conversion to Agricultural Use. - The DENR,
the DA, and the Department of Agrarian Reform (DAR) shall stop illegal conversion
of forest lands into agricultural, mining, pasture, and other non-forest uses of the
land, The DENR shall cause the cancellation of instructions issued such lands and

12



we aXnankr one

repossesses said lands for reforestation purposes, and the farmers shall be organized
to regenerate the land through people-friendly forestry

“SECTION 28. Sloping Agricultural Land Technology (SALT). - In direct
support to this reforestation program, the DENR, the DA, and the DAR shall
implement the Sloping Agricultural Land Technology (SALT) and other applicable
technology in all upland areas cultivated by their respective program
clientele/ beneficiaries for agricultural purposes.

CHAPTER 7
FINANCING THE PROGRAM
SECTION 29. Program Cost. ~- The cost of the Billion Trees Program shall not
exceed Seven Hundred Fifty Million Pesos (P750,000,000.00) per year for a period of
five (5) years Two Hundred Fifty Million Pesos (P250,000,000.00) of which shall be
appropriated. The sources of the other Five Hundred Million Pesos (P500,000,000.00)
are hereby identified. .

SECTION 30. Forest Management Fund. - The Forest Management Fund
(FMB) is hereby created for the plantation, protection and management of the billion
trees. For this ptirpose, fifty percent (50%) of the forest charges collected under
Republic Act No. 7161 under the Timber License Agreement (TLA) , or in the case of
Timber Production Sharing Agreement (TPSA),: fifteen percent (15%) of the
government share therefrom; forest users fees; silvicultural fees; rentals for special
use of forest lands; all proceeds froin disposition of illegal cut forest products and
timber and penalties and fines, shall go to the Fund.

‘The Fund shall be administered by a body created by the DENR which shall
include but shall not be limited to representatives from the wood industry, a
nongovernmental organization, the duly accredited forestry professional
association, the Department of Budget and’ Management, the DILG' and local
government units and the DENR itself. The body shall establish the necessary
operating guidelines of allocation, use and safeguarding of the Fund.

SECTION 31. Other Sources of Funds. -

13,



we aenaak one

11
12
13
4
15
16
17
18
19
20
21
22

24

26
27

29

30°

31
32
33

35

(a) At least one percent (1%) of the Countrywide Development Fund of Senators

_ and Congressmen, which shall be managed by them in coordination with
local government units;

(b) Securitization of the grown trees which are at least five (5) years old which

may be used as asset-backed securities, such as bonds and stocks, to finance

the reforestation of other areas, whether by upland communities, AFP/PNP

personnel, or the private sector.

SECTION 32. Fund Management. - In the case of the contract reforestation,
the fisnds shall be channeled by the Department of Budget and Management (DBM)
through the Land Bank of the Philippines (LBP), the Development Bank of the
Philippines (DBP), or the LBP/DBP accredited rural banks. Funding shall be
discontinued if found misused and scheduled activities not followed. The DENR
shall be advise the banks the amount and the period of release of funds to the

community contractors.

CHAPTER 8
CRIMINAL OFFENSE AND PENALTIES

SECTION 33. Misuse of Funds. - Any contractor, officer of a cooperative,
government official including a local official, or an employee, who shall unlawfully
and maliciously divert funds under this Act for purposes other than intended, shall
be criminally prosecuted and, if found guilty, shall be punished with imprisonmeht
of not less than four (4) months but not more than four (4) years.

SECTION 34. Illegal Cutting of Planted Trees. Any person who is not a
member of the community or cooperative who planted the trees who shall cut or
gather trées from reforested areas, shall be fined with twice the current market value
of the trees removed, and/or imprisoned for not less than four (4) months but not
more than four (4) years. Ilegally cut trees shall be subject to forfeiture by the

appropriate authorities,

SECTION 35. Premature Cutting of the Planted Trees and Noncompliance
with Other terms of CBFMA. - CBEMs who shall prematurely cut the trees up to
one-fifth (1/5) of the area without any authority from the PENRO or CENRO, or

replant dipterocatp and other endemic’ species, not in accordance with sound

4



COUNanae one

36

forestry management practice, shall be disqualified from their tights under the
CBFMA and shall not be compensated for the value of the remaining standing trees.
The jurisdiction of the reforested area shall revert to the DENR. In addition, if the
estimated value of the felled trees is larger than the real investment of the
government in the area, such guilty party shall pay the difference in value; shall not
be eligible for future government reforestation and other forestry-related activities;
and shall be criminally prosécuted and imprisoned for a period of not less than four

(4) months but not more than four (4) years.

CHAPTER 9
ADMINISTRATIVE PROCEDURES AND SPECIAL CLAUSES
SECTION 36: Monitoring and Evaluation. - Periodic monitoring and
evaluation of reforestation contract, other people-oriented forestry, urban
reforestation, and forest protection activities shall be conducted by the
CENRO/PENRO or an independent entity contracted for the purpose, whichever is
practical, to ensuré that proper use of resources and desired targets are

accomplished on time.

SECTION 37. Promiulgation of Rules and Regulations. - The Secretary of the
DENR, in coordination with the Secretaries of the DILG and the DND, shall prepare
and publish the rules and regulations implementing this Act within sixty (60) days
from the date of its effectivity.

SECTION 38. Separability Clause. - If any provisions of this Act shall be held
unconstitutional, the remaining portions not otherwise affected shall remain in full

force and effect.
SECTION 39. Repealing Clause. - All laws, executive orders, rules and
regulations, or parts thereof inconsistent with any of the provisions of this Act are

hereby amended, repealed or modified accordingly.

SECTION 40. Effectivity. -.This Act shall take effect after its complete

publication in at least two (2) newspapers of general circulation.

Approved,

15