,i 
UlCi c 
CfFfir;< 138- IS6 SECRETARY 
FOURTEENTH CONGRESS OF THE REPUBLIC 
) 
) 
8 YiR 13 rjl! 
OF THE PHILIPPINES 
First Regular Session 
) 
Explanatory Note 
Almost 21 years after the issuance of Proclamation No. 131 entitled 
“Instituting a Comprehensive Agrarian Reform Program” by President Corazon C. 
Aquino on 22 July 1987, many realities have changed which necessitate adjustments 
or amendments in various policies and laws. 
In Republic Act No. 6657 or the Comprehensive Agrarian Reform Law 
(CARL) of 1988, at least 25 percent of the appropriations for agrarian reform should 
be utilized for support services. But with the Department of Agrarian Reform’s 
present estimates that three-fourths of land acquisition and distribution has been 
accomplished, this bill proposes that half of its budget be devoted instead to support 
services. In other words, when before the social justice aspect of agrarian reform 
was emphasized by focusing on land acquisition and distribution, today the highlight 
must be on poverty reduction and rural development. 
This bill also seeks, among other things, to ensure that the program is funded 
“more seriously and generously” for the next 10 years, even as it sets seven (7) 
years as the time frame for completing land acquisition and distribution. Further, it 
seeks to give life to Section 5, Article XIII, of the Constitution by giving priority to 
working with farmers’ organizations in implementing the program. 
The other highlights of this bill are the following: 
1. It discourages but does not disallow voluntary land transfers and leaseback 
schemes; 
2. It makes Emancipation Patents and Certificates of Land Ownership Award 
indefeasible and imprescriptible one year after registration; 
3. It reallocates agrarian reform budgets so that land tenure improvement will be 
assigned 50% (to include agrarian justice delivery), while program 
beneficiaries’ development will likewise receive 50%, with one third of this 
being assigned to production credit; 
4. It includes assistance in the education and organization of actual and 
potential beneficiaries among the support services, for as long as these are 
geared toward helping farmers appreciate their rights and responsibilities as 
new landowners, developing farm-related trust relationships (social capital), 
and increasing farm production and profitability; 
5. It provides that landowners who invest 50% or more of their compensation in 
enterprises where the land is located may receive their full compensation in 
cash and be given a 2% bonus if the enterprise they set up is still a going 
concern after five years; 
1 


6. It expands the membership in the Presidential Agrarian Reform Council to 
include some commodity-oriented agencies of the Department of Agriculture 
to emphasize the importance of helping farmers improve production and 
profitability; 
7. It expands the DAR Adjudication Board's composition, clarifies the legal 
standing of farmers and farm groups, limits the judiciary's role in settling 
agrarian and agrarian-related disputes, and allows DAR lawyers to render 
free legal representation for beneficiaries facing AR-related criminal cases, 
and: 
8. It further restricts land conversion 
Lastly, inasmuch as the so-called stock distribution option which was 
implemented in less than a dozen corporate farms pursuant to Sections 29 to 34 has 
not led to an improvement in the life of agrarian reform beneficiaries comparable to 
those whose lands were covered by compulsory acquisition, these sections are 
sought to be repealed. This will have the effect of mandating the coverage of these 
corporate farms under compulsory acquisition. 
A true agrarian reform law has always been the centerpiece program for 
genuine rural development. But in order to succeed, social justice must be its 
foundation. To this, a more liberal approach has been seen as a viable route with 
some radical measures taken into consideration. After all, if we are truly after 
meaningful reforms, we must be able to transcend ideological differences in pursuit 
of common goals. 
In view hereof, passage of this bill is earnestly sought. 
Senator 
2 


, ,  
( ~ i  , , 
, .  ,. 
?);. ; 
,Ak &LalE-cAav 
FOURTEENTH CONGRESS OF THE REPUBLIC 
First Regular Session 
) 
8 MAR 13 Rl? 30 
. ) 
OF THE PHILIPPINES 
) 
..I 
AN ACT 
STRENGTHENING THE COMPREHENSIVE AGRARIAN REFORM PROGRAM 
(CARP) BY AMENDING CERTAIN SECTIONS OF REPUBLIC ACT NO. 6657, AS 
AMENDED, OTHERWISE KNOWN AS THE COMPREHENSIVE AGRARIAN 
REFORM LAW OF 1988, PROVIDING FUNDS THEREFOR, AND FOR OTHER 
PURPOSES. 
Be it enacted by the Senate and House of Representatives of the Philippines in 
Congress assembled: 
SECTION ONE. Declaration of Policy. - It is hereby reiterated as a policy of 
the State to pursue a Comprehensive Agrarian Reform Program (CARP) where the 
welfare of the landless farmers and farm workers with due regard to the rights of 
landowners shall be upheld and instituted. To give flesh to this, putting up support 
services should be given equal attention as land distribution. It also means providing 
assistance not only to beneficiaries but also to landowners. 
The agrarian reform program should be founded on the right of farmers and 
regular farm workers, who are landless, to own directly or collectively the lands they 
till or, in the case of other farm workers, to receive a share of the fruits thereof. To 
this end, the State shall encourage the just distribution of all agricultural lands, 
subject to the priorities and retention limits set forth in R. A. No. 6657 as amended, 
having taken into account ecological, developmental, and equity considerations, and 
subject to the payment of just compensation. The State respects the right of small 
landowners and encourages the organization of agrarian reform communities. 
Section 2. Section 7 of Republic Act No. 6657, as amended, is hereby 
amended to read as follows: 
x x x  
"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 NECESSITY OF 
GIVING PRIORITY TO COVERING LANDHOLDINGS WHERE THE 
FARMERS ARE ORGANIZED; the need to distribute lands to the tillers 
at the earliest practicable time; the need to enhance agricultural 
productivity; and the availability of funds and resources to implement 
and support the program; PROVIDED, THAT LAND ACQUISITION 
AND DISTRIBUTION SHALL BE COMPLETED WITHIN SEVEN (7) 
YEARS FROM THE PASSAGE OF THIS ACT. 
3 


AGRARIAN 
REFORM 
COVERED 
LANDS 
SHALL 
BE 
DISTRIBUTED 
DIRECTLY 
TO 
AGRARIAN 
REFORM 
BENEFICIARIES. STOCK DISTRIBUTION OPTION AND OTHER 
DISTRIBUTION SHALL BE PROHIBITED. LEASEBACK SHALL BE 
ALLOWED ONLY UPON OBTAINING PRIOR APPROVAL FROM THE 
DEPARTMENT, PROVIDED THAT IT SHALL ONLY BE FOR A 
PERIOD OF FIVE (5) YEARS AND RENEWABLE EVERY FIVE (5) 
YEARS. 
NON-DISTRIBUTIVE SCHEMES AND AGREEMENT OF LAND 
LANDHOLDINGS 
COVERED 
BY 
EXISTING 
NON- 
DISTRIBUTIVE SCHEMES AND 
AGREEMENTS 
SHALL 
BE 
REVIEWED BY THE DEPARTMENT FOR THE PURPOSE OF 
DIRECT AND PHYSICAL DISTRIBUTION TO THE FARMER 
BENEFICIARIES. ALL AGRARIAN REFORM COVERED LANDS 
BE DISTRIBUTED TO THE FARMER BENEFICIARIES NOT LATER 
THAN ONE (1) YEAR FROM THE EFFECTIVITY OF THIS LAW. 
PENDING APPLICATIONS BEFORE THE DEPARTMENT FOR NON- 
DISTRIBUTIVE SCHEMES AND AGREEMENTS SHALL BE DENIED 
AND 
THE 
SUBJECT 
LAND 
SHALL 
BE 
DISTRIBUTED 
IMMEDIATELY. 
UNDER A NON-DISTRIBUTIVE SCHEME OR AGREEMENT SHALL 
VOLUNTARY LAND TRANSFER ARRANGEMENTS SHALL 
BE STRICTLY REVIEWED AND MONITORED BY THE PARC TO 
ENSURE THAT ONLY QUALlffED BENEFlClARlES SHALL 
BENEFIT FROM THE AGRARIAN REFORM PROGRAM. ALL 
VOLUNTARY LAND TRANSFER ARRANGEMENTS SHALL BE 
SUBJECT TO THE APPROVAL OF THE PARC." 
x x x  
Section 3. Section 17 is hereby amended to read as follows: 
"Section 17. Determination of Just Compensation -- In 
determining just compensation, the cost of acquisition of the land, 
INCLUDING THE STANDING CROPS PLANTED BY THE FORMER 
LANDOWNER AT THE TIME OF VALUATION, the current value of 
like AGRICULTURAL properties regardless of potential or future use, 
its nature, actual use and income, the sworn valuation by the owner, 
the tax declarations, and the assessment made by the government 
assessors shall be considered ON THE DATE OF RECEIPT BY THE 
LANDOWNER OR THE LAST DAY OF POSTING OR PUBLICATION 
IN AT LEAST TWO (2) NATIONAL NEWSPAPER OF THE NOTICE 
OF COVERAGE ISSUED BY THE DAR, WHICHEVER IS EARLIER. 
THE VISIBLE CROPS IF CONSIDERED AS PART OF THE 
VALUE OF THE LAND SHALL BE VALUATED ONLY ONCE. IN NO 
CASE SHALL THE DETERMINATION OF THE VALUATION OF THE 
STANDING CROPS BE USED TO HINDER THE INSTALLATION OF 
ARBS. 
THE SOCIAL AND ECONOMIC BENEFITS CONTRIBUTED 
BY THE FARMERS AND THE FARMWORKERS AND BY THE 
PAYMENT OF TAXES OR 
LOAN SECURED FROM ANY 
GOVERNMENT TO THE PROPERTY AS WELL AS THE NON- 
A 


GOVERNMENT FINANCING INSTITUTION ON THE SAID LAND 
SHALL BE CONSIDERED AS ADDITIONAL FACTORS TO 
DETERMINE ITS VALUATION.” 
Section 4. Section 24 is hereby amended to read as follows: 
“Section 24. Award to Beneficiaries - The rights and 
responsibilities of the beneficiary shall commence from the time the 
DAR makes an award of the land. Such award shall be completed 
within one hundred eighty (180) days from the time the DAR takes 
actual possession of the land. Ownership of the beneficiary shall be 
evidenced by a Certificate of Land Ownership Award, which shall 
contain the restriction and conditions provided for in this Act, and shall 
be recorded in the Register of Deeds concerned and annotated on the 
Certificate of Title. THE CLOA AND OTHER TITLES ISSUED UNDER 
ANY AGRARIAN REFORM PROGRAM SHALL BE INDEFEASIBLE 
AND IMPRESCRIPTIBLE AFTER ONE (1) YEAR FROM THE 
REGISTRATION THEREOF WITH THE REGISTRY OF DEEDS. 
ALL 
CASES 
INVOLVING 
THE 
CANCELLATION 
OF 
REGISTERED CLOAS AND OTHER TITLES ISSUED UNDER ANY 
AGRARIAN REFORM PROGRAM ARE WITHIN THE JURISDICTION 
OF THE DARAB. 
Section 5. Section 26 is hereby amended to read as follows: 
“Section 26. Payment by Beneficiaries. - Lands awarded 
pursuant to this Act shall be paid for by the beneficiaries to the LBP in 
thirty (30) annual amortizations at six percent (6%) interest per 
annum[.] WHICH WILL START ONE (1) YEAR FROM THE DATE OF 
ACTUAL, PHYSICAL AND CONTINUOUS POSSESSION OF THE 
AWARDED LAND BY THE BENEFICIARIES. The payments for the 
first three (3) years after the award may be at reduced amounts as 
established by the PARC; Provided, That the first five (5) annual 
payments may not be more than five percent (5%) of the value of the 
annual gross production is paid as established by the DAR. Should the 
scheduled annual payments after the fifth year exceed ten percent (IO) 
of the annual gross production and the failure to produce accordingly is 
not due to the beneficiary’s fault, the LBP may reduce the interest rate 
or reduce the principal obligation to make the payment affordable.” 
x x x  
Section 6. Section 27 is hereby amended to read as follows: 
“Section 27. Transferability of Awarded Lands. - Lands acquired 
by beneficiaries under this Act may not be sold, transferred or 
conveyed except through hereditary succession, or to the government, 
or to the LBP, or to other qualified beneficiaries THROUGH THE DAR 
for a period of ten (IO) years: Provided, however, That the children or 
the spouse of the transferor shall have a right to repurchase the land 
from the government or LBP within a period of two (2) years. Due 
notice of the availability of the land shall be given by the LBP to the 
Barangay Agrarian Reform Committee (BARC) of the barangay where 
the land is situated. The Provincial Agrarian Coordinating Committee 
(PARCCOM), as herein provided, shall, in turn, be given due notice 
thereof by the BARC. If the land has not yet been fully paid by the 
5 


beneficiary, the right to the land may be transferred or conveyed, with 
prior approval of the DAR, to any heir of the beneficiary or to any other 
beneficiary who, as a condition for such transfer or conveyance, shall 
cultivate the land himself. Failing compliance herewith, the land shall 
be transferred to the LBP which shall give due notice of the availability 
of the land in the manner specified in the immediately preceding 
paragraph. In the event of such transfer to the LBP, the latter shall 
compensate the beneficiary in one lump sum for the amounts the latter 
has already paid, together with the value of improvements he has 
made on the land. 
THE TITLE OF THE LAND AWARDED UNDER THE 
AGRARIAN REFORM MUST INDICATE THAT IT IS AN EP OR CLOA 
AND SUBSEQUENT TRANSFER TITLE MUST ALSO INDICATED 
THAT IT IS AN EP OR CLOA. 
IF THE LAND HAS NOT YET BEEN FULLY PAID BY THE 
BENEFICIARY, 
THE 
RIGHTS 
TO 
THE 
LAND 
MAY 
BE 
TRANSFERRED OR CONVEYED, WITH PRIOR APPROVAL OF THE 
DAR, TO ANY HEIR OF THE BENEFICIARY OR TO ANY OTHER 
BENEFICIARY WHO AS A CONDITION FOR SUCH TRANSFER OR 
CONVEYANCE, SHALL CULTIVATE THE LAND HIMSELF. FAILING 
COMPLIANCE HEREWITH, THE LAND SHALL BE TRANSFERRED 
TO THE LBP WHICH SHALL GIVE DUE NOTICE OF THE 
AVAILABILITY OF THE LAND IN THE MANNER SPECIFIED IN THE 
IMMEDIATELY PRECEDING PARAGRAPH. 
IN THE EVENT OF SUCH TRANSFER TO THE LBP, THE 
LATTER SHALL COMPENSATE THE BENEFICIARY IN ONE LUMP 
SUM FOR THE AMOUNTS THE LATTER HAS ALREADY PAID, 
TOGETHER WITH THE VALUE OF IMPROVEMENTS HE HAS MADE 
ON THE LAND.” 
Section 7. Sections 29, 30, 31, 32, 33 and 34 are hereby repealed. All 
corporate farms previously covered by the repealed provisions shall be dealt with 
under compulsory acquisition pursuant to Section 16 thereof. 
Section 8. Section 36 is hereby further amended to read as follows: 
“Section. 36. Funding for Supporf Services. - In order to cover 
the expenses and cost of support, at least [twenty-five] FIFTY percent 
([25]50%) of all appropriations for agrarian reform shall immediately be 
set aside and made available for this purpose: PROVIDED, THAT 
ONE-THIRD 
(1/3) 
OF 
THIS 
APPROPRIATION 
SHALL 
BE 
SPECIFICALLY ALLOCATED FOR SUBSIDIES TO SUPPORT THE 
INITIAL CAPITALIZATION FOR AGRICULTURAL PRODUCTION 
UPON THE AWARDING OF THE EP OR CLOA TO A NEW 
AGRARIAN REFORM BENEFICIARY AND SUBSIDIZED CREDIT 
FACILITIES IN THE CASE OF EXISTING ARB’S; PROVIDED 
FURTHER, THAT THE LAND BANK AND OTHER CONCERNED 
GOVERNMENT FINANCIAL INSTITUTIONS SHALL PROVIDE THE 
FACILITIES FOR DISBURSEMENT OF THE ABOVE FINANCIAL 
ASSISTANCE TO THE ARB’S. IN ADDITION, THE DAR SHALL BE 
AUTHORIZED TO PACKAGE PROPOSALS AND RECEIVE GRANTS, 
AID AND OTHER FORMS OF FINANCIAL ASSISTANCE FROM ANY 
SOURCE; PROVIDED FURTHERMORE, THAT THE FORMATION OF 
[Provided, That for the next five (5) years, a minimum of one (I)] 
6 


Agrarian Reform Communit[y]lES (ARC’S) shall be [established] 
CONTINUED by the DAR, in coordination with the local government 
units, non-governmental organizations and people’s organizations in 
each legislative district with a predominant agricultural population: 
Provided, further, That the areas in which the ARCS are to be 
established shall have been fully subjected under this law. 
AFTER THE COMPLETION OF THE LAND ACQUISITION AND 
DISTRIBUTION 
COMPONENT 
OF 
CARP, 
THE 
YEARLY 
APPROPRIATION SHALL BE ALLOCATED FULLY TO SUPPORT 
SERVICES AND AGRARIAN JUSTICE DELIVERY. 
For this purpose, an Agrarian Reform Community shall be 
defined as a barangay or a cluster of barangays primarily composed 
and managed by Agrarian Reform Beneficiaries who shall be willing to 
be organized and undertake the integrated development of an area 
and/or their organizations/cooperatives. In each community, the DAR, 
together with the agencies and organizations above mentioned, shall 
identify the farmers’ association, cooperative or their respective 
federations approved by the farmers-beneficiaries that shall take the 
lead in the agricultural development of the area. [In addition, the DAR 
shall be authorized to package proposals and receive grants, aids and 
other forms of financial assistance from any source.]” 
Section 9. Section 37 is hereby amended to read as follows: 
“Sec. 37. Suppotf Services [to] FOR the Beneficiaries. - The 
PARC shall ensure that support services to farmer-beneficiaries are 
provided, such as: 
a. Land surveys and titling; 
b. Liberalized terms of credit facilities and production loans; 
c. Extension services by way of planting, cropping, production 
and post-harvest technology transfer as well as marketing and 
management assistance and support to cooperatives and farmer 
organization; 
d. Infrastructure such as access trails, mini-dams, public utilities, 
marketing 
and 
storage 
facilities; 
[andl 
e. Research, production and use of organic fertilizers and other 
local substances necessary to farming and cultivation; AND[.] 
F. ASSISTANCE IN THE EDUCATION AND ORGANIZATION 
OF 
ACTUAL 
AND 
POTENTIAL 
AGRARIAN 
REFORM 
BENEFICIARIES TOWARDS HELPING THEM UNDERSTAND THEIR 
RIGHTS AND RESPONSIBILITIES AS OWNER-CULTIVATORS, 
DEVELOPING FARM-RELATED TRUST RELATIONSHIPS AMONG 
THEMSELVES AND THEIR NEIGHBORS, AND INCREASING FARM 
PRODUCTION AND PROFITABILITY. 
The PARC shall formulate policies to ensure that support 
services FOR AGRARIAN REFORM [to farmer-]beneficiaries shall be 
7 


provided 
at 
all 
stages 
of 
[land 
reform] 
PROGRAM 
IMPLEMENTATION.” 
x x x  
Section IO. Section 38 is hereby amended to read as follows: 
“Section 38. Support Services FOR [to] Landowners. - The 
PARC, with the assistance of such other government agencies and 
instrumentalities as it may direct, shall provide landowners affected by 
the CARP and proper agrarian reform programs with the following 
services: 
a. Investment information, financial and counseling assistance; 
b. Facilities, programs and schemes for the conversion or 
exchange of bonds issued for payment of the lands acquired with 
stocks and bonds issued by the National Government, the central bank 
and other government institutions and instrumentalities: 
c. Marketing of LBP bonds, as well as promoting the 
marketability of said bonds in traditional and non-traditional financial 
markets and stock exchanges; 
d. Other services designed to utilize productively the proceeds of 
the sale of such lands for rural industrialization. 
A landowner who invests in rural-based industries shall be 
entitled to the incentives granted to a registered enterprise engaged in 
a pioneer or preferred area of investment as provided for in the 
Omnibus Investment Code of 1987, or to such other incentives as the 
PARC, the LBP, or other government financial institutions may provide. 
The LBP shall redeem a landowner’s LBP bonds at face value, 
provided, that AT LEAST FIFTY PERCENT (50%) OF the proceeds 
thereof shall be invested in a BOI-registered company or in any agri- 
business or agro-industrial enterprise in the region where CARP- 
COVERED LANDHOLDING IS LOCATED [the landowner has 
previously made investments, to the extent of thirty percent (30%) of 
the face value of said LBP bonds, subject to guidelines that shall be 
issued by the LBP]. AN INCENTIVE OF TWO (2) PERCENT IN CASH 
SHALL BE PAID TO A LANDOWNER WHO MAINTAINS HIS 
ENTERPRISE AS A GOING CONCERN FOR FIVE YEARS OR 
SAME PERIOD. 
KEEPS HIS INVESTMENTS IN A BOI-REGISTERED FIRM FOR THE 
THE LBP AND THE DEPARTMENT OF TRADE AND 
INDUSTRY SHALL FORMULATE THE PROGRAM TO CARRY OUT 
THESE PROVISIONS UNDER THE SUPERVISION OF THE PARC.” 
Section 11. Section 41 is hereby amended to read as follows: 
“Section 41. The Presidential Agrarian Reform Council. - The 
Presidential Agrarian Reform Council (PARC) shall be composed of the 
President of the Philippines as Chairman, the Secretary of Agrarian 
Reform as Vice-chairman and the following as members: Secretaries of 
the Departments of Agriculture; Environment and Natural Resources; 
8 


Budget and Management; THE INTERIOR AND Local Government; 
Public Works and Highways; Trade and Industry; Finance; AND Labor 
and Employment; Director-General of the National Economic and 
Development Authority; President, Land Bank of the Philippines; 
Administrator, National Irrigation Administration; ADMINISTRATOR, 
SUGAR 
REGULATORY 
ADMINISTRATION; 
ADMINISTRATOR, 
PHILIPPINE COCONUT AUTHORITY; ADMINISTRATOR, NATIONAL 
FOOD AUTHORITY; DIRECTOR, PHILIPPINE RICE INSTITUTE; 
ADMINISTRATOR, NATIONAL DAIRY AUTHORITY; and three (3) 
representatives of affected landowners to represent Luzon, Visayas and 
Mindanao: Provided, that AT LEAST one of them shall be from the 
INDIGENOUS PEOPLES [cultural communities].” 
Section 12. A new section shall be inserted after Section 49 and under 
Chapter XII, which section shall read as follows: 
“SECTION 49-A. AGRARIAN JUSTICE DELIVERY AND 
STRENGTHENING THE DARAB -- THE DARAB SHALL BE 
COMPOSED OF THE SECRETARY AS CHAIRMAN, THREE (3) 
UNDERSECRETARIES OR ASSISTANT SECRETARIES AS MAY BE 
DESIGNATED BY THE SECRETARY, AND EIGHT (8) OTHERS TO 
BE APPOINTED BY THE PRESIDENT. 
AGRARIAN 
REFORM BENEFICIARIES OR 
IDENTIFIED 
BENEFICIARIES AND/OR THEIR ASSOCIATIONS MAY FILE A CASE 
OR CASES BEFORE JUDICIAL COURTS CONCERNING THEIR 
INDIVIDUAL 
OR 
COLLECTIVE 
RIGHTS 
UNDER 
THE 
COMPREHENSIVE AGRARIAN REFORM PROGRAM. 
THE 
FACT 
OF 
NON-REGISTRATION 
OF 
SUCH 
ASSOClATlONlS BEFORE THE SECURITIES AND EXCHANGE 
COMMISSION OR COOPERATIVE DEVELOPMENT AUTHORITY OR 
ANY CONCERNED GOVERNMENT AGENCY MAY NOT BE USED 
AGAINST THEM TO DENY THE EXISTENCE OF THEIR LEGAL 
STANDING AND INTEREST IN A CASE FILED BEFORE THE 
JUDICIAL COURTS. 
IDENTIFIED 
AND 
APPROVED 
AGRARIAN 
REFORM 
BENEFICIARIES, BASED ON SECTION 22 OF THIS RA 6657, SHALL 
HAVE USUFRUCTUARY RIGHTS OVER THE AWARDED LAND AND 
SUCH RIGHT SHALL NOT BE DIMINISHED EVEN PENDING THE 
AWARDING OF THE CLOA. 
THE PARTIES OR THEIR REPRESENTATIVES AND THE 
WITNESSES SHALL BE ALLOWED TO TESTIFY OR PARTICIPATE 
IN THE PROCEEDINGS OR SUBMIT PLEADINGS USING THE 
LANGUAGE KNOWN TO BOTH PARTIES OR LOCAL DIALECTS 
PREVAILING IN THE COMMUNITY. 
NO COURT SHALL TAKE COGNIZANCE OF CASES 
PERTAINING 
TO 
THE 
IMPLEMENTATION 
OF 
THE 
COMPREHENSIVE AGRARIAN REFORM PROGRAM EXCEPT 
THOSE PROVIDED UNDER SECTION 57 OF THIS ACT. ALL CASES 
FILED IN REGULAR COURTS OR OFFICE OF THE PROSECUTOR 
WHERE ONE OF THE PARTIES IS A FARMER, FARMWORKER OR 
TENANT, SHALL BE AUTOMATICALLY REFERRED TO THE DAR IF 
THERE IS AN ALLEGATION FROM ANY OF THE PARTIES THAT 
9 


THE CASE IS AGRARIAN IN NATURE. IF IT IS CLEAR FROM THE 
COMPLAINT THAT THE CASE IS AGRARIAN IN NATURE, THE 
COURT SHALL MOTU PROP10 DISMISS THE CASE. UPON 
REFERRAL OF A CASE BY A REGULAR COURT OR THE 
PROSECUTOR TO THE DAR, THE DAR SHALL, WITHIN THIRTY 
(30) DAYS FROM RECEIPT OF THE COURT'S OR PROSECUTOR'S 
REFERRAL, DETERMINE IF THE CASE IS AGRARIAN IN NATURE. 
SUCH FINDING SHALL BE CONCLUSIVE UPON THE REGULAR 
COURT OR PROSECUTOR, AND THE COURT OR PROSECUTOR 
SHALL THEREAFTER DISMISS THE CASE ON THE BASIS OF 
SUCH FINDINGS OF THE DAR. 
NO COURT OR ANY OTHER TRIBUNAL SHALL TAKE 
COGNIZANCE OF EJECTMENT, ESTAFA, QUALIFIED THEFT, AND 
OTHER SIMILAR CASES FILED AGAINST AN AGRARIAN REFORM 
BENEFICIARY, A FARMER, FARMWORKER OR A TENANT, THE 
RESOLUTION OF WHICH REQUIRES THE PRIOR DETERMINATION 
OF TENANCY RELATIONS, AGRARIAN DISPUTES, OR THE 
APPLICATION OF AGRARIAN LAWS WITHIN THE PROPER 
JURISDICTION OF THE DAR OR THE DARAB, OR WHERE SUCH 
CASES ARE FILED TO HARASS OR REMOVE THE SAID 
AGRARIAN REFORM BENEFICIARY, FARMER, FARMWORKER OR 
TENANT. UPON FILING OF ANY SUCH CASE, SUCH JUDGE OF 
ANY COURT OR TRIBUNAL OR PROSECUTOR SHALL REFER THE 
SAME TO THE DIVISION OR PROVINCIAL AGRARIAN REFORM 
ADJUDICATOR (PARAD) FOR DETERMINATION OF TENANCY 
RELATIONS OR ADJUDICATION OF ANY AGRARIAN DISPUTE 
BETWEEN THE PARTIES. ONLY UPON CERTIFICATION ISSUED 
BY THE PARAD THAT THE CASE IS NOT AGRARIAN IN NATURE 
CAN THE JUDGE OR PROSECUTOR PROCEED WITH THE CASE. 
THE DAR SHALL RENDER FREE LEGAL REPRESENTATION 
FOR 
AGRARIAN 
REFORM 
BENEFICIARY, 
FARMER, 
FARMWORKER OR TENANT WHO ARE FACING AGRARIAN 
REFORM RELATED CRIMINAL CASES." 
Section 13. Section 65 is hereby amended to read as follows: 
"Section 65. Conversion of Lands . - [After the lapse of five (5) 
years from its award, when] WHEN the land ceases to be economically 
feasible and sound for agricultural purposes, or the locality has 
become urbanized and the land will have greater economic value for 
residential, commercial or industrial purposes, the DAR, upon 
application of the beneficiary or [the] ANY OTHER landowner, with due 
notice to the affected parties, and subject to existing laws, may 
authorize the reclassification or conversion of the land and its 
disposition: Provided, THAT IF THE APPLICANT IS A BENEFICIARY 
UNDER AGRARIAN LAWS AND THE LAND SOUGHT TO BE 
CONVERTED IS THE LAND AWARDED TO HIM OR ANY PORTION 
THEREOF, IT MUST BE SHOWN THAT the beneficiary shall have 
fully paid his obligation; PROVIDED FURTHER, THAT IRRIGATED 
AND 
IRRIGABLE 
LANDS, 
REGARDLESS 
OF 
FUNDING 
COMMITMENT FOR IRRIGATION, SHALL NOT BE SUBJECT TO 
CONVERSION NOTWITHSTANDING ITS CLASSIFICATION. 
FAILURE TO IMPLEMENT THE CONVERSION PLAN WITHIN 
FIVE (5) YEARS FROM THE APPROVAL OF SUCH CONVERSION 
10 


PLAN SHALL CAUSE THE LAND TO BE AUTOMATICALLY BE 
UNDER THE COVERAGE OF CARP." 
Section 14. Section 55 is hereby amended to read as follows: 
"Section 55. No Restraining Order or Preliminary Injunction .- 
No court in the Philippines shall have jurisdiction to issue any 
restraining order or writ of preliminary injunction against THE PARC, 
DAR or any duly authorized or designated agencies in any case, 
dispute or controversy arising from, necessary to, or in connection with 
the application, implementation, enforcement, or interpretation of this 
Act and other pertinent laws on agrarian reform." 
Section 15. Section 63 is hereby repealed and a new Section 63 will be 
inserted which will read as follows: 
"SECTION 63. FUNDING SOURCES. - THE INITIAL AMOUNT 
NEEDED TO IMPLEMENT THIS ACT UNTIL THE YEAR 2018, OR AN 
ADDITIONAL 
PERIOD OF 
TEN 
(IO) YEARS 
FROM THE 
EXPIRATION OF THE PERIOD UNDER THE AMENDATORY 
REPUBLIC ACT NO. 8532, SHALL BE FUNDED BY THE AGRARIAN 
REFORM FUND. 
ADDITIONAL AMOUNTS NECESSARY FOR THIS PURPOSE 
ARE HEREBY AUTHORIZED TO BE APPROPRIATED IN EXCESS 
OF THE PREVIOUS INITIAL AND AUGMENTATION FUNDS 
AMOUNTING 
TO 
ONE 
HUNDRED 
BILLION 
PESOS 
(P100,000,000,000.00). 
THE ADDITIONAL INITIAL AMOUNTS 
HEREBY AUTHORIZED TO BE APPROPRIATED HEREUNDER 
PESOS (P162,000,000,000.00). 
SHALL IN NO CASE EXCEED ONE HUNDRED SIXTY-TWO BILLION 
SOURCES OF FUNDING OR APPROPRIATION SHALL 
INCLUDE THE FOLLOWING: 
(A) 
PROCEEDS 
OF 
THE 
SALES 
OF 
THE 
PRIVATIZATION MANAGEMENT OFFICE (PMO), FORMERLY 
ASSETS PRIVATIZATION TRUST (APT); 
(B) ALL RECEIPTS FROM ASSETS RECOVERED AND 
THROUGH THE PRESIDENTIAL COMMISSION ON GOOD 
GOVERNMENT (PCGG); 
FROM SALES OF ILL-GOTTEN WEALTH RECOVERED 
(C) PROCEEDS FROM THE DISPOSITION OF THE 
PROPERTIES OF THE 
GOVERNMENT 
IN 
FOREIGN 
COUNTRIES, FOR THE SPECIFIC PURPOSES IF FINANCING 
PRODUCTION CREDITS, INFRASTRUCTURE AND OTHER 
SUPPORT SERVICES REQUIRED BY THIS ACT; 
(D) ALL INCOME AND COLLECTIONS OF WHATEVER 
KIND AND NATURE ARISING FROM THE AGRARIAN 
REFORM OPERATIONS, PROJECTS AND PROGRAMS OF 
THE DAR AND OTHER IMPLEMENTING AGENCIES OF THE 
COMPREHENSIVE 
AGRARIAN 
REFORM 
PROGRAM, 
PROVIDED, THAT AMORTIZATION PAYMENTS SHALL BE 
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ALLOCATED AS PART OF THE FUNDING FOR SUPPORT 
SERVICES FOR THE BENEFICIARIES: 
(E) PORTION OF AMOUNTS ACCRUING TO THE 
PHILIPPINES FROM ALL SOURCES OF OFFICIAL FOREIGN 
AID 
GRANTS, 
DEBT 
SWAPS 
AND 
CONCESSIONAL 
FINANCING FROM ALL COUNTRIES, PRODUCTION CREDIT, 
INFRASTRUCTURE, AND OTHER SUPPORT SERVICES 
REQUIRED BY THIS ACT; 
(F) YEARLY APPROPRIATIONS OF NOT LESS THAN 
THREE BILLION PESOS (P3,000,000,000.00) FROM THE 
GENERAL APPROPRIATIONS ACT; 
(G) OTHER GOVERNMENT FUNDS NOT OTHERWISE 
APPROPRIATED.” 
Section 16. Agrarian Reform Oversight Cornrniffee. -- An Agrarian Reform 
Oversight Committee is hereby created to review program implementation every two 
(2) years. The Committee shall be headed by the chairperson of the Senate Agrarian 
Reform Committee and co-chaired by the chairperson of the House of 
Representatives Agrarian Reform Committee, with members from each House to be 
named by the Senate President and the Speaker of the House. 
Section 17. All laws, decrees, executive orders, rules and regulations, or 
parts thereof, inconsistent herewith are hereby repealed or modified accordingly. 
Section 18. 
This Act shall take effect fifteen (15) days following the 
completion of its publication in at least two (2) newspapers of general circulation 
which should not, however, be later than the first day of the expiration of the 
extended existence of CARP guaranteed funding. 
Approved. 
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