EXPLANATORY NOTE
The  coconut  industry  is  a  top  dollar earner chalking  $900  million  to  about $1  billion,
and a potential annual earner of $2 billion if rehabilitated. As a dollar earner, the coconut and
all  its by-products surpass other export products,  as it requires no import casts.  In fact,  the
Philippines  is  one  of the  world's  biggest  exporters  of coconut  oil,  which  is  either  used  for
food or other industries.
Unfortunately,  unstable trends in production and world  market prices lead observers
to view the industry as a sunset industry, which will eventually die and stop bringing  income
to those who depend  on  it for a  living.  The  number one  problem  is the dwindling  supply of
coconut.  Coconut trees are cut down for lumber, while some cocolands are being converted
to avoid the operation of land reform. Thus, the marginal coconut farmer is now in quandary.
Most of them are seriously thinking of selling their cocolands, or of converting it, and leaving
coconut farming  in favor of promising  opportunities  in  other areas of endeavor.  Hence,  it is
incumbent upon Congress to address these conditions afflicting the coconut industry, which
comprises  a  substantial  sector of  Philippine  agriculture  and  a  major  source  of our export
earnings.
This  bill  seeks,  therefore,  to  alleviate  the  present  condition  of the  coconut  industry
and ensure its continuity and substantially by classifying it as last priority for coverage in the
Comprehensive  Agrarian  Reform   Program  of  the  government  so  as  not  to  discourage
coconut farmers  in  investing  further  in  coconut farming.  This  measure  also  provides  for a
stricter or higher  penalty for violations  of the  prohibited  acts  and  omission  under  Republic
Act No. 6657.
Early approval of this bill is earnestly requested.


NINETEENTH CONGRESS   )
REPUBLIC OF THE PHILIPPINES    )
First Regular session                            )
HOUSE OF REPRESENTATIVES
Introduced by Representative Rufus a. Rodriguez
House Bill No.  5343
AN ACT
AMENDING  CERTAIN  SECTIONS  OF  REPUBLIC  ACT  NUMBER  SIX  THOUSAND  SIX
HUNDRED  FIFTY  SEVEN  (R.A.  6657),  AS  AMENDED,  OTHERWISE  KNOWN  AS  THE
``COMPREHENSIVE    AGRARIAN    REFORM    LAW    OF    1998",    AND    FOR    OTHER
PURPOSES
Be it erl?ct.ed  by the  Senate and  House of Representatives of the  Philippines in  Congress
assembled:
SECTION  1.   Section  7  of Republic Act  Numbered  Six Thousand  Six  Hundred  Fifty Seven
(R.A. 6657), as amended, otherwise known as the "Comprehensive Agrarian Reform Law of
1998" is hereby amended to read as follows:
Section 7. Prr.ort.fy. The Department of Agrarian Reform (DAR) in coordination
with  the  Presidential  Agrarian  Reform  Council  (PARC)  shall  plan  and  program  the
acquisition and  distribution of all agricultural  lands through a  period of ten (10) years
from effectivity of this Act.   Lands shall be acquired and distributed as follows:
Phase One:  Rice and corn lands under Presidential Decree No. 27; All idle or
abandoned  lands;  all  private  lands  voluntarily  offered  by  the  owners  for  agrarian
reform; all lands foreclosed by government financial institutions; all lands acquired by
the  Presidential  Commission  on  Good  Government  (PCGG);  and  all  other  lands
owned  by  the  government  devoted  to  or  suitable  for  agriculture,  which  shall  be
acquired   and   distributed   immediately   upon   the   effectivity   of  this   Act,   with   the
implementation to be completed within the period of not more than four (4) years.
Phase  Two:  all  alienable  and  disposable  public  agriculture  lands;  all  arable
public  agricultural  lands  under  agro-forest,  pasture  and  agricultural  leases  already
cultivated   and   planted   to   crop   in   accordance   with   Section,   Article   XIIl   of  the
Constitution;    all    public   agricultural    lands   which    are   to    be    opened    for   new
development and resettlement; and all private agricultural lands in excess of fifty (50)
hectares,  insofar as the excess hectarage is concerned, to implement principally the
rights  of  farmers  and  regular  farm  workers,  who  are  landless,  to  own  directly  or
collectively   the   lands   they  till,   which   shall   be   distributed   immediately   upon   the
effectivity of this Act, with the  implementation to be completed within  a  period of not
more than four (4) years.
Phase Three:  all other privated agricultural  lands with  large landholdings and
proceeding to medium and small under the following schedule:
(a)::nt::°f':|nrtghs(2tB)°¥:aTf::#i::re(ff2e4c)t[Cjetyct:fr::[suR;tot:fge(:#e:teadrewsi'tht:nE:rg::
(3) years; and
(b)tLhaen8:x#{%#;;re°aTft:remr:ieen:a::{#[j;uopftt°hjg\#afn°du:o(2b4e)::;t:,reet:'dt°wR:jgnjnfo°unr
(4) years;  to  implement  principally the  right of farmers  and  regular farmworkers
who are landless, to own directly or collectively the lands they till.


The schedule of acquisition and  redistribution of all agricultural  lands covered  by
this program shall be made in accordance with the above order of priority, which shall be
provided  in  the  implementing  rules to  be  prepared  by the  Presidential  Agrarian  Reform
Council    (PARC),    taking    into   consideration   the   following:    The    need    to   enhance
agricultural  productivity;  and  the  availability  of funds  and  resources  to  implement  and
support the  program;  PROW/DED,  ALL  LANDS  DEVOTED  PRIMARILY TO  COCONUT
FARMING  SHALL  BE  GIVEN  LAST  PRIORITY  IN  THE  SCHEDULE  OF ACQUISITION
AND    REDISTRIBUTION    WHETHER    THE    SAME    BE    PUBLIC    OR    PRIVATED,
TENANTED OR UNTENANTED.
In any case, the PARC, upon recommendation by the Provincial Agrarian Reform
Coordination  Committee  (PARCCOM),   may  declare  certain   provinces  or  regions  as
priority  land  reform  areas,   in  which  cases  the  acquisition  and  distribution  of  private
agricultural lands therein may be implemented ahead of the above schedules.
In  effecting  the  transfer within  these  guidelines,  priority  must  be  given  to  lands
that are tenanted.
The   PARC   shall   establish   guidelines   to   implement  the   above   priorities   and
distribution   scheme,   including   the   determination   of  who   are   qualified   beneficiaries:
Provt.ded fhaf,  an  owner-tiller may  be  a  beneficiary of the  land  he does  not own  but is
actually cultivating to the extent of the difference between the area of the land  he owns
and the award ceiling of three (3) hectares.
SEC 2.  Section 74 of the same Act is hereby amended to read as follows:
Section  74.  Pena/f/.es.  Any person who  knowingly or willfully violates the  provisions
of this Act shall  be punished  by imprisonment of not less than tone (1 ) month  not more that
three (3) or a fine of not less than one thousand pesos (P1,000.00) and not more than fifteen
thousand  pesos  (15,000.00),I  SIX  (6)  MONTHS  TO  NOT  MORE  THAN  FOUR (4) YEARS
OR A FINE OF NOT LESS THAN FIVE THOUSAND.
SEC 3.  Separab/.//.fy c/at/se.   If any provision of this Act shall  be  held to be unconstitutional,
the remainder of the Act not otherwise affected shall remain in full force and effect.
SEC 4.   Repea/i.ng c/ause. All laws, orders, rules and regulations, parts thereof,  inconsistent
with this Act are hereby repealed or modified accordingly.
SEC 5. Effecfi.vt.fy c/ause.  This Act shall take effect 30 days after its complete publication in
two (2) national newspapers of general circulation or in the Official gazette.
Approved,