Republic of the Philippines
HOUSE 0F REPRESENTATIVES
Quezon City, Metro Manila
Nineteerith Congress
TirstQ§gudrSession
House Bill No.            5445
DATE:qCT06
fa  T"E:-
Introduced by Honorable Roy ME Loyola
EXPLANATORY NOTE
It  is  a   policy  of  the   State  to  provide  for  rational,   holistic,   and  just
allocation, utilization, management and development of the country's land and
water  resources  so  that  their  use  is  consistent with  the  principles  Of equity,
social  justice,  environmental  integrity,  and  sustainable  development  for  the
common good.
It is  becoming  evident that the  Metro Manila Area  is  increasingly being
too  congested.  According  to  Demographia  World  Urban  Areas  in  2021,  the
Manila urban area is estimated to have a population of 24.0 million. This makes
it the fourth largest urban area in the world (only Tokyo, Jakarta, and Delhi have
larger urban populations) and the home of less than a fourth of the Philippine's
total population.
But rapid urbanization and development pushed for further expansion of
the  Metro  Manila  Area.   It  follows  the  general  world  trend  of  urbanization
common   throughout   the   rich   West,    Japan,    and   South    Korea    namely
suburbanization.
This  means that  as  Metro  Manila  Area  welcomes  migrants who  seek
better lives  coming from  other parts  of the  nation,  suburban  areas  (or those
areas from  urban  peripheries where cost of living  is more affordable) expand
and in the process need development of amenities and areas that will provide
both social services and economic opportunities.
Now,  as the  Greater Manila Area  continues to  expand  to the  National
Capital    Region's    (NCR's)    adjacent    provinces    namely    Cavite,    Laguna,
Batangas,   Rizal,   Bulacan,   and   Pampanga,   there   is   also   a   need  for  the
government to aid  in the creation or further expansion of existing metropolitan
areas.
Section 20 of Republic Act 7160 or the Local Government Code of 1991
provides an authority for a city or municipality to reclassify agricultural lands, as
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well as the manner of its utilization or disposition provided that either of these
two conditions is present:
1.)  When  the  land  ceases  to  be  economically feasible  and  sound  for
agricultural purposes as determined by the Department of Agriculture; or,
2.) Where the  land  shall  have substantially greater economic value for
residential,    commercial,    or    industrial    purposes,    as    determined    by   the
Sanggunian concerned.
The  same  section  also  imposed  limits  on  the  percentage  of the  total
agricultural land that can be reclassified based on the income classification of
the local government unit, to wit:
a,   Highly urbanized cities and independent component cities -15%
b.   Component cities and first to third class municipalities -10%
c.   Fourth to sixth class municipalities - 5°/o
This bill seeks to amend the above-mentioned provision  of the LGC by
providing for an  exemption to the  limit on  the  percentage  of total agricultural
land that can  be reclassified to further aid  in the suburbanization  of the urban
peripheries not only of the Greater Manila Area but also of other metropolitan
areas in the country.
Thus, immediate approval of this bill is earnestly sought.
Fifth  District,  Cavite
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Republic of the Philippines
HOUSE 0F REPRESENTATIVES
Quezon City,  Metro Manila
Nineteeuth Congress
First R&gutir S ession
House Bill No.
54¢5
Introduced by Honorable Roy M. Loyola
AN ACT AMENDING REPUBLIC ACT NO. 7160, OTHERWISE KNOWN AS
THE LOCAL GOVERNMENT CODE 0F 1991  BY PROVIDING AN
EXEMPTION TO THE LIMIT ON THE PERCENTAGE OF TOTAL
AGRICULTURAL LAND THAT CAN BE RECLASSIFIED, AND FOR OTHER
PURPOSES
Be  it  e.n.ac.ted  by  the  Senate  and  House  of  Representatives  in  Congress
assembled:
SECTION   1.  Section  20  of  Republic  Act  No.  7160,  otherwise
known as the "Local Government Code of 1991" is hereby amended to
read as follows:
Section 20. Reclassification of Lands. -
(a) A city or municipality may,  through  an  ordinance  passed  by
the   Sanggunian   after   conducting   public   hearings   for  the   purpose,
authorize  the  reclassification  of agricultural  lands  and  provide  for the
manner of their utilization or disposition in the following cases:  (1 ) when
the  land  ceases to be economically feasible and  sound for agricultural
purposes as determined by the Department of Agriculture; or, (2) where
the land shall have substantially greater economic value for residential,
commercial,  or  industrial  purposes,  as  determined  by the  Sanggunian
concerned:  Provided,  That such  reclassification  shall  be  limited  to the
following percentage of the total agricultural land area at the time of the
passage of the ordinance:
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[1]   For   highly   urbanized   and   independent   component   cities,
fifteen percent (15%);
[2]  For component cities;  and first and third  class  municipalities,
ten percent (10o/o);
[3] For fourth to sixth class municipalities, five percent (5%) xxx;
HOWEVER,    MUNICIPALITIES    AND    CITIES    WITHIN    THE
TH.RTY  KILOMETER  (30KM)     RADIUS  FROM  THE  OUTERMOST
POINT OF THE  NATIONAL CAPITAL  REGION  SHALL BE  EXEMPT
FROM    THE    ABOVE-MENTIONED    RECLASSIFICATION    LIMITS,
PROVIDED THAT THE  FOLLOWING  CONDITIONS ARE  PRESENT:
(1) WHEN THE LAND CEASES TO BE ECONOMICALLY FEASIBLE
AND  SOUND  FOR  AGRICULTURAL  PURPOSES;   (2)  WHEN  THE
LAND  IS  NOT  IRRIGATED;  (3)  WHERE  THE  LAND  SHALL  HAVE
SUBSTANTIALLY        GREATER        ECONOMIC        VALUE        FOR
RESIDENTIAL,  COIVIMERCIAL,  OR  INDUSTRIAL  PURPOSES;  AND
(4)  THAT  AGRICULTURAL  LANDS  DISTRIBUTED  TO  AGRARIAN
REFORM   BENEFICIARIES   PURSUANT  TO   REPUBLIC   ACT   NO.
6657,      OTHERWISE      KNOWN      AS      ''THE      COMPREHENSIVE
AGRARIAN  REFORM  LAW",  SHALL  NOT  BE  AFFECTED  BY THE
SAID RECLASSIFICAT.ON.
Xxx"
SECTION 2. Separability clause. -lf any provision or part of this
Act is held  invalid  or unconstitutional, the remaining  parts or provisions
hereof, not otherwise affected, shall remain in full force and effect.
SECTION 3. Repealing Clause. -Any law, presidential decree or
issuance, executive order, letter of instruction, administrative order, rule
or regulation contrary to or inconsistent with the provisions of this Act is
hereby repealed, amended or modified accordingly.
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SECTION 4.  Effectivity. This Act shall take effect fifteen (15) days
after its publication  in the Official Gazette or in a newspaper of general
circulation.
Approved,
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