SIXTEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
First Regular Session 
SENATE 
) 
) 
) 
SENATE BILL NO. 1096 
'13 
JUL{'ll p·1:36 
INTRODUCED BY SENATOR JOSEPH VICTOR G. EJERCITO 
EXPLANATORY NOTE 
Mter 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 that 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 fisher folk 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 shore land 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. 
JOSEPH VICTOR G. EJERCITO 


SIXTEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
First Regular Session 
SENATE 
) 
) 
) 
SENATE BILL NO. 
"13 
JUL 24 
;> 11 :36 
1096 
INTRODUCED BY SENATOR JOSEPH VICTOR G. EJERCITO 
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 that 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) Shore land I Lakeshore areas I 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. 
following powers and functions: 
The LLDA shall have the 
(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 that 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; 
(I) 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 
(PRAJ/Public Estates Authority (PEA) and LGUs concerned with the 
end-in-view of facilitating the approval thereof by the PRA/PEA 
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 equitable access 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 use and occupancy of shore land areas by 
enjoining LGUs within the Bay Region to establish watershed 
management councils or wetlands whenever suitable and 
consistent with LLDA policies; 
(j) 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; 
. 
. 
. 
(k) Enter into agreements with LGUs, governmental agencies 
and corporations and the private sector for the supply, treatment, 
distribution and marketing of such water; 
(I) 
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; 
(m) 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; 
(n) 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; 
(0) 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, dredging/reclamation 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; 
(p) 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; 
(tl 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 functions 
as may be necessary to carty 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; 
dl 
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; 
U) 
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 fisher 
folk 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 
lleads, 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 eligible 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 that 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) Administrative Department which shall be responsible for 
providing services relating to human resource management, 
records management, and general services; 
c) Finance Department that shall be responsible on revenue 
planning, generation and enhancement, assistance on budgetary 
and fInancial matters, and safekeeping of corporate assets. 
d) 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. 
e) 
Integrated 
Water 
Resources 
Management 
Services 
Department that 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. 
(f) Environmental Protection Department that will manage all 
the· environmental regulatory functions of the Authority like 


clearance / permits 
enforcement 
and 
compliance. 
and licensing, monitoring and surveillance, 
adjudication 
and 
environmental 
quality 
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.IS. Annual Fees. - The LLDA is hereby authorized to collect 
annual fees for the use of the lake waters, its tributaries and shore land 
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 (P700,000,000). 
The authorized capital stock of Seven Hundred Million 
Pesos 
(P700,000,000) shall be divided into Seven Million (7,000,000) shares of 
stock with a par value of One Hundred Pesos (PlOO) 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 internalrevenue allotment 
and other local funds. 
SEC. 21. Creation of LLDA Environmental Ac{judication 
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 LGDs 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 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,