Republic of the Philippines
HOUSE OF REPRESENTATIVES,
Quezon City

EIGHTEENTH CONGRESS
First Regular Session

House Bill No. 6106

Introduced by Rep. LAWRENCE LEMUEL H. FORTUN

EXPLANATORY NOTE

This bill seeks to set a clear and concrete policy direction in the formulation of
programs for the protection and sustainable management of our forests ecosystems.

Philippine forests are among the world’s most diverse and richest source of plant
and animal species, but they are also considered among the most threatened. Our forest
covers been reduced to an alarming 18.3% as early as 1999 and estimated to be
shrinking by at least 2% every year. The major causes have been attributed to
commercial and illegal logging, forest conversion, population growth, migration and fuel
wood harvesting.

It is crucial that the country adopt a systematic, coherent and responsive forest
management system to restore the integrity of our forest ecosystem. This bill recognizes
the Sustainable Forest Ecosystems Management (SFEM) strategy as the principal policy
framework for all programs in the forestry sector. The bill prioritizes the protection and
rehabilitation of our forest systems through regeneration or restoration of natural
forests. It likewise recognizes the indispensable role and respects the rights of
stakeholders such as the local government units, the local community and the
indigenous peoples.

Certain versions of this bill have been filed in the 14*, 15%, 16% Congresses in
cognizance of the exigency of addressing the immediate need for effective, efficient and
sustainable management of all forest ecosystems in the country. The bill, however,
languished in the committee.

In the 17% Congress, the bill saw some light of day as it was approved by the
House on Third and Final Reading and transmitted to the Senate. It is earnestly hoped
that in the 18% Congress, the measure is finally enacted into law,



Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

EIGHTEENTH CONGRESS
First Regular Session

House Bill No. 0106

Introduced by Rep. LAWRENCE LEMUEL H. FORTUN

AN ACT
PROVIDING FOR THE SUSTAINABLE MANAGEMENT OF FOREST AND
FOREST LANDS AND FOR OTHER PURPOSES

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

ARTICLE I
GENERAL PROVISIONS

Section 1. Short Title. - This Act shall be known as the “Sustainable
Forest Management Act”

Section 2. Declaration of Policy. - It is the policy of the State to promote
social justice and the general welfare in all phases of national development;
protect and advance the right of the Filipino people to a balanced and healthful
ecology in accord with the rhythm and harmony of nature; and to conserve and
develop the patrimony of the nation. Therefore, the State hereby adopts the
following policies for the sustainable management and conservation of forest
lands and forest resources found therein:

a. The specific limits of forest lands, after these have been fixed and
demarcated, shall not be altered, except through an act Congress;

b. The use and conservation of forest lands and forest resources found
therein shall bear a social, cultural, ecological, biological, and
economic functions, responsibility and accountability to promote the
common good of present and future generations;

c. The protection of forest ecosystem, as well as rehabilitation through
reforestation and afforestation of the degraded forest ecosystem shall
be given priority to mitigate climate change, improve and conserve
biodiversity, enhance ecosystem functions and services and provide
long-term economic benefits;

d. Forest lands shall be partitioned and planned into forest management
units (FMUs) based on natural topographic and hydrologic boundaries
and shall consider the watershed continuum approach which adopts
a holistic inter-relationship between the rational ecological treatment
of the entire landscape from the mountain down to the coast;

e, The management, protection, conservation and development of forest
resources shall be done in an integrated, inclusive, developmental, and
sustainable manner, focusing on the forest resource and the people
who manage, conserve and benefit from it.



Section 3. Objectives. The general objective of this bill is to optimize the
utilization of forest resources to support sustainable development of the country
by providing equitable access and benefit sharing to stakeholders. The specific
objectives are:

a. To deregulate the management of forest lands and forest resources;

b. To provide sustainable livelihood and enterprises especially among

those depending and temporarily residing in forest lands;

¢. To strengthen institutional mechanism to respond to forest

management concerns namely, development of the forest industry; law
enforcement; and management of watershed;

d. To create the Sustainable Forest Development Fund as a support

mechanism for funding requirements of forest management units;

e. To reorient the role of the Forest Management Bureau to be more

responsive and pro-active consistent with the objectives of this Act;

f. To ensure that required forest cover is achieved to maintain the

provision of ecological services.

Section 4. Scope and Coverage.- The provisions of this Act shall apply
to all forest lands and all forest resources in lands over which the Philippines
has sovereignty and jurisdiction: Provided, That all forest lands and forest
resources found in protected areas established under the National Integrated
Protected Areas System (NIPAS) shall be sustainably managed and developed
following the principles of this Act and consistent with the provisions of Republic
Act No. 7586, or the “National Integrated Protected Areas System act of 1992”,
as amended by Republic Act No. 10629, and Republic Act No. 11038, or the
“Expanded National Integrated System Act of 2018”; Provided further, That all
wildlife resources and critical habitats found in forest lands, including alienable
and disposable lands, shall be governed by Republic Act. 9147, or the “Wildlife
Resources Conservation and Protection Act”, Provided furthermore, that the
rights of indigenous cultural communities and indigenous peoples to their
ancestral forest lands shall be respected, as provided for in Republic Act No.
8371 or the “Indigenous Peoples’ Rights Act of 1997”; Provided finally, that all
forest lands under the management or administration of local government units
and other government agencies or instrumentalities shall be managed in
accordance with their duly legislated charter and the principles and provisions
of this Act.

Section 5. Definition of Terms. - As used in this Act:

a. Biodiversity refers to the variability among living organisms from all
sources, including, inter alia, terrestrial, marine, and other aquatic
ecosystems in the ecological complexes of which they are part of;

b. Climate Change refers to a change in climate that can be identified
by changes in the mean and/or variability of its properties and that
persists for an extended period, typically decades or longer whether
due to natural variability or as a result of human activity;

¢. Climate Change Adaptation refers to the adjustment in natural or
human systems in response to actual or expected climatic stimuli or
their effects, which moderates harm or exploits beneficial
opportunities;

d. Climate Change Mitigation refers to human intervention to reduce
anthropogenic emissions by sources and removals by sinks of all
greenhouse gases including ozone depleting substances and their
substitutes;

e. Ecosystem refers to a community of living organisms interacting with
each other and with their physical environment;


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m.

Ecotourism refers to a form of sustainable tourism within a natural
and/or cultural heritage area where community participation,
protection and management of natural resources, culture, and
indigenous knowledge and practices, environmental education and
ethics, as well as economic benefits are fostered and pursued for the
enrichment of host community and satisfaction of visitors;

. Forest refers to an ecosystem or an assemblage of ecosystems

dominated by trees and other natural vegetation; a community of
plants and animals interacting with one another and its natural
environment;

. Forestland refers to land of the public domain classified as needed

for forest purposes, including both production and protection. They
shall include all forest reserves of the public domain;

Forest Management Unit (FMU) refers to a clearly defined forest area
assigned for management based on a set of objectives and a long-
term watershed-based management plan. All current forest tenurial
instruments may be considered FMUs;

Forest-Based Industries refer to various industries that are
dependent on raw materials or products derived from forests such
as, but not limited to, wood, rattan, bamboo, vines, latex, resins,
saps, essences, fruits, flowers, or wild flora and fauna;

. Forest Resources refer to all products and resources whether

biomass such as plants and animals including its by-products and
derivatives, which can be a raw material, or non-biomass such as
soil, water, scenery, as well as the intangible services and values
present in forest lands or in other lands devoted for forest purposes;
Forest Reforestation refers to a management strategy applied in
degraded primary forest to enhance and accelerate natural
processes of forest ecosystem;

Indigenous species refer to species or genotypes that have evolved in
the same area, region or biotope and are adapted to the specific
predominant ecological conditions at the time of establishment;

. Multiple-Use refers to the harmonized utilization of land, soil, water,

wildlife, recreation value, grass and timber of forest lands;

. Natural Forest refers to a forest composed of naturally growing

indigenous trees, not planted by man, whose structure, composition,
and dynamics have been largely the result of natural succession
process;

. Non-Timber Forest Products refer to all biological materials and

derivatives other than timber;

|. Plantation refers to forest stand established by planting and/or

seeding in the process of afforestation or reforestation. The stand is
of either introduced species (all planted stands), or an intensively
managed stand of any indigenous species, which meets all the
following criteria: one or two species at plantation, even-aged class,
and regular spacing;

. Processing Plant refers to any establishment or infrastructure

housing any mechanical set-up, device, machine, or combination of
machines used for the conversion of logs and other forest raw
materials into lumber, fiberboard, pulp, papers, or other finished
wood products;

. Reforestation refers to the establishment of forest plantations on

temporarily un-stocked lands that are considered as forests;
Sustainable Forest Management refers to the process of watershed-
based management of forest land and resources to achieve one or
more clearly specified objectives of management with regard to the


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continuous production of desired forest products and the delivery of
ecosystem services without undue reduction of its inherent values,
biodiversity and future productivity without undesirable effects on
the physical and social environment; and

u. Watershed refers to the land area drained by a stream or fixed body
of water and its tributaries having a common outlet for surface
runoff. A watershed can be part of a larger landscape that includes
connections from the headwaters to the reef.

ARTICLE IT
ADMINISTRATION, DEVELOPMENT, MANAGEMENT AND UTILIZATION OF
FOREST LANDS AND FOREST RESOURCES

Section 6. Administration, Development, Management and
Utilization of Forestiands. - Forestlands and forest resources shall be under
the full supervision and control by the State. The development and utilization
thereof shall be under the State’s full control and supervision. The State may
directly undertake such activities or may enter into agreements with qualified
persons in order for these persons to receive technical assistance and
appropriate incentives.

The Forest Management Bureau, hereinafter referred to as the FMB, shall
be the primary government agency responsible for the administration,
development, management and utilization of forest lands as defined in this Act.
It shall have the authority to enter into management agreements or issue tenure
instruments on behalf of the Government, promulgate rules and regulations for
the effective enforcement of this Act, and administratively adjudicate offenses
provided for in this Act in order to facilitate the speedy resolution of forestry-
related cases.

Section 7. Categories of Forestlands. - For the purpose of
administration, development, management and utilization, forest lands in the
Philippines shall be categorized into ancestral forest lands, private forest lands,
and public forest lands.

a. Ancestral forestlands are ancestral lands and domains defined as such

under Republic Act No, 8371, otherwise known as the “Indigenous
Peoples Rights Act of 1997”.

b. Private forests are alienable and disposable lands registered under the
current land registration system of the country which are devoted for
forestry purposes.

¢. Public forestlands shall include all lands of the public domain that have
not been declared as a National Park under Section 5 of Republic Act
No. 7586, otherwise known as the “National Integrated Protected Areas
System Act of 1992”, as amended by Republic Act No. 11038; mineral
lands pursuant to Republic Act No. 11038; mineral lands pursuant to
Republic Act No. 7942 otherwise known as the “Philippine Mining Act
of 1995”, and those lands not classified as agricultural based on the
maps developed by the National Mapping and Resources Information
Authority (NAMRIA).

Section 8. Demarcation and Delimitation. - Within five (5) years from
the approval of this Act, the DENR shall demarcate on the ground the actual
land classification lines, in coordination with LGUs and agencies assigned by law
to administer and manage forestlands or parts thereof; Provided, That the DENR
Secretary, upon completion of the actual assessment of the demarcated land


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classification lines, shall recommend to Congress the delimitation of the
forestlands fund to be suitable and capable for its purpose.

Public forest lands shall not be reclassified, except through an act of
Congress.

Section 9. Management of Forest Lands. - For purposes of
management and planning, all forest lands shall be managed for protection or
production purposes only.

a. Protection Forest Lands. All areas within the forest lands designated or set
aside as such shall constitute the protection forest lands. They shall
consist of the following:

1. Virgin forest and old-growth, dipterocarp forest;

2. All areas one thousand (1,000) meters above sea level;

3. All areas with a slope of fifty percent (50%) or more;

4. Allareas along the bank of rivers and streams, and the shores
of the seas and lakes throughout entire length and within a
zone of three (3) meters in urban areas, twenty (20) meters in
agricultural areas and forty (40) meters in forest areas, along
their margins which are subject to the easement of public use.

All extractive activities, including harvesting, gathering, and collection of
forest resources except planted mangrove species and non-timber forest
Products are prohibited within forest lands for protection purposes. However,
the sustainable traditional resource rights of indigenous peoples shall be
respected. Only indigenous species shall be planted or introduced within
protection forest lands.

b. Production Forest Lands. All public forest lands not classified as protection
forest lands, pursuant to this Section, shall constitute the production
forest lands of the country. Theses lands shall be devoted for the
production or timber and non-timber forest products to supply the
domestic forest resource demand of the country and facilitate international
trade of forest resources.

Section 10, Forest Management Units, - For Purposes of assigning
respective areas of operations and management, all public forest or timber land
shall be assigned and registered as “Forest Management Units” (FMUs) with the
DENR: Provided, That all areas under an existing and valid tenure agreement or
management with the DENR before the passage of this Act shall be considered
as FMUs.

The FMU shall be managed for protection and/or production purposes.
Protection FMUs shall have the primary function of protecting life support
systems to regulate water, prevent flooding, control erosion, prevent seawater
intrusion, maintain soil fertility, and of conserving plant and wildlife biodiversity
and their ecosystem. Production FMU shall have the primary function of
producing forest products, food, energy and/or fresh water among others.

Section 11. Qualified managers of FMUs. - ‘To ensure effective
management of forest lands, managers of FMUs shall be confined to qualified
and capable persons, or entities which include indigenous and local households,
civil society organizations, business organizations, forest land use tenure
holders, and dedicated national and local government units including
government-owned and controlled corporations subject to the requirements to
be provided in the implementing rules and regulations of this Act.


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Section 12, FMU Development and Management Planning. - Every FMU
shall have a management plan, formulated by the FMU Manager that were
reviewed and concurred by a Registered Professional Forester which shall be
approved by the DENR. The FMU management plan shall contain the following:

a. FMU management objective;

b. Description of the physical, environmental, socio-economic, and
administrative profile of the FMU;

c. Mapping and zoning of the FMU into production and high conservation
value-forest zones;

d. Management prescriptions to be applied in each zone to meet the FMU
management objectives;

e. Implementation plan; and

f. Expected benefits and impacts of the plan.

Section 13. Sustainable Management of Mangrove Resources. -
Mangrove species planted within protection or production forest lands can be
harvested, gathered or collected, taking into consideration the basic forestry
policies and strategies provided for in this Act. The harvesting, gathering, and
collection of mangrove species shall be upon the authority provided for by the
Bureau.

Section 14. Mined-Out Areas and Abandoned Fishpond Areas. - The
management and administration of all forest lands that are considered as either
mined-out areas or abandoned fishpond lease areas shall be reverted back to the
FMB.

Section 15. Utilization of Forest Resources. - The harvesting,
gathering and collection of all planted forest resources within production forest
lands and private forests, including its by-products and derivatives, shall not
require any clearance from the DENR: Provided, That any request for clearances
for domestic transport of forest resources submitted to the DENR shall be acted
within seven (7) days from the date of its submission with the proper office. After
a lapse of seven (7) days and no action has been taken by the DENR, the
clearance of transport is deemed approved.

‘The harvesting, gathering, collection and transport of non-timber forest
products within production forest lands shall be exempt from any clearance from
any government institution.

All timber and non-timber forest products planted within private lands
shall belong to the owner of the land who shall have the right to harvest, gather,
and collect the same without any clearance from any government institutions.

Section 16. Regulation and Utilization of Forest Resources within
Ancestral Forest Lands. - The rights of the indigenous cultural communities
or indigenous peoples over their ancestral forest lands shall be respected:
Provided, That management of forest resources within those lands shall be
regulated by the DENR as provided for by laws, rules, and regulations.

ARTICLE Il
FOREST-BASED INDUSTRIES

Section 17. Development of an Open and Competitive Market for
Forest Resources. - To meet the demands for forest goods and services of the
country, the State, through the DENR shall promote and rationalize the


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establishment, operations, and development of forest-based industries. The
DENR shall institute measures to develop an open and competitive market for
forest products including among others the liberalization of forest products
harvesting, transport, and marketing.

Section 18. Export of Certified Forest Products. - No person shall sell
or offer for sale any forest resources in the international market without
complying with the certification system establishment by the Government.
Failure to adhere to the established standards, or any act of falsification shall be
sufficient cause for the cancellation of export licenses and other permits
authorizing the manufacture or sale of such resources.

Section 19. Regulation of Forest-Based Industries. - All processing
plants using forest resources as raw materials shall be subject to existing
regulations prescribed by law, including the Environmental Impact Assessment
(EIA) System: Provided, That these processing plants are registered with the
Department of Trade and Industry as well as clearance from the Local
Government Unit to operate.

Section 20. Enhance Private Investments and Economic
Contribution. - Forest-based industries shall be supported to promote global
competitiveness, support demands for wood and other products, and enhance
economic contribution to the country. Appropriate incentives shall be provided
such as establishment of agroforestry economic zones in order to ease the
conduct of business and attract local and foreign investments that are mutually
beneficial to the government, concerned communities, partner organizations and
the investors concerned.

Section 12. Community-Based Forest Enterprises.- Economic activities
and practices of local communities, including indigenous cultural communities,
and indigenous peoples, on forest-based enterprises, including non-timber forest
products, that promote the sustainable use of forest resources shall be
supported and promoted to address food security and improve quality of life.

ARTICLE IV
EMPOWERING AND ENABLING CONDITIONS FOR SUSTAINABLE FOREST
MANAGEMENT

Section 22, Forest Land Use and Tenure Instruments. - The State,
represented by the DENR, may undertake the exploration, development, and
Utilization of forest lands and forest resources found therein with qualified
persons, whether natural or juridical, through tenure instruments.

Section 23. Forest Management Agreement.- The State, through the
DENR and a qualified person, whether natural or juridical, may enter into a
Forest Management Agreement for the exploration, development, and utilization
of forest lands and forest resources found therein. The Forest Management
Agreement shall have a duration of twenty-five (25) years and may be extended
for another twenty-five (25) years.

Section 24. Scope of Forest Management Agreement. - The Forest
Management Agreement may be entered into for the following purposes:
a. Agroforestry plantation (in accordance to the standards of the
DENR Forest plantation development:
b. Forest plantation development with processing plant;
c. Ecotourism development; and


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d. Special uses for forest lands;

A Forest Management Agreement may be entered into for a single purpose
or a combination of any of the abovementioned purposes.

Section 25. Special Uses of Forest Lands. A Forest Management
Agreement may be entered into for a special use of forest land which shall include
the following:

. Dry Dock Site;
. Industrial Processing Site;
. Herbal or Medicinal Plantation;
. Fish Drying Site;
Communication Station Site;
Public Landing Site or Airstrip;
Log Pond or Log Depot;
. Lumber Yard;
Motor Pool Site;
Power Station Site;
Transmission Line Site;
Right-of-Way;
. Farm-to-Market Roads;
. Government Facility Site (e.g. schools, clinics, satellite offices
among others);
. Water Reservoir;
. Renewable energy projects;

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Provided, That for government facilities or infrastructures like farm-to-
market roads, public school sites, public hospitals or clinics, etc. free from any
fee, charge, or other pecuniary obligations under the Forest Management
Agreement.

Section 26. Qualified Persons. - The following person are qualified to
enter into a Forest Management Agreement with the State:

a. Filipino citizens;

b. Corporations or associations at least sixty (60%) percent of whose
capital is owned by Filipinos;

¢, Local government units, when the purpose of the Forest Management
Agreement is for public use or the establishment of government center
and facilities; or

d. Other National Government Agencies or Government-Owned or
Controlled Corporations, when the purpose of the Forest Management
Agreement is for national interest, like transmission lines, water
reservoirs, or distribution lines for electricity.

Section 27. Production Sharing. - The following schemes shall be
observed by the Parties to a Forest Management Agreement in relation to the
sharing of benefits derived from the agreement:

a. Forest Plantations, Forest Plantations with Processing Plants. The
sharing of outputs from Forest Management Agreements entered into
for the purpose of developing and managing forest plantations, and
forest plantations with processing plants shall be based on the total
gross output of the plantation harvests. Said sharing shall be based
on the total gross output of the plantation harvests. Said sharing shall


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be done in a manner advantageous to national interest without
prejudice for incentives that may be described by the DENR.

b. For ecotourism purposes, the person who entered into a Forest
Management Agreement with the State for the purpose of ecotourism
or other special uses for forest lands shall have the obligation to pay an
annual user’s fee equivalent to five percent (5%) of the nearest
commercial zonal value per square meter or a fraction thereof.

c. Government facilities or Infrastructures. Non-income generating
government facilities such as public school sites, public hospitals or
clinics, government center or offices, roads, farm-to-market access
roads, and public buildings are exempt from paying any fee or other
pecuniary obligation with the Sate. Provided, that the use of these
establishments or infrastructures shall not be subject to privatization.

Section 28. Forestry Research, Education, Training, and Extension.
- __ Research and technology development of the Ecosystems Research and
Development Bureau, Forest Products Research and Development Institute,
Universities, and other research institutions shall be strengthened to support
sustainable management of forest resources. For this reason, Forestry
Development Center of the University of the Philippines Los Bafos shall lead in
forest policy research in collaboration with schools, universities, and colleges
(SUCs) as well as other stakeholders.

The DENR, the Department of Science and Technology, the Commission
on Higher Education, and Universities, within one (1) year from the passage of
this Act, shall prepare a comprehensive sustainable national forestry and
environmental research and technology development and transfer program in
furtherance of sustainable forest management, which shall be implemented,
monitored, and reviewed in accordance with existing research management
systems.

The Continuing Professional Development shall be promoted and upheld
through selected universities and training institutions on forestry and natural
resources management subject of the Professional Regulation Commission’s
accreditation system. Forestry education in the Philippines shall be rationalized
to ensure the quality of formal forestry education and establish, support and
sustain the national and regional centers of development and excellence in
forestry and environmental education to develop high quality human resources
and promote global competitiveness. The Commission on Higher Education shall
include forest ecology and environment courses in general education curricula.
The DENR shall formulate a nationwide program for sustained public
information and advocacy campaign for forests and natural resources
conservation sustainable forest management, and climate change.

Section 29. The Sustainable Forest Development Fund. A Sustainable
Forest Development Fund (SFDF) is hereby established to provide concessional
financing particularly for forest development projects proposed by qualified
managers of FMUs. Said Fund shall be administered by government financial
institution as a trust account managed under the “capital preservation”
principle.

The preferred government financing institution (GFl), together with the
DENR, shall invest at most seventy-five percent (75%) of the net interest income
from loans to forest development- support facilities including road networks,
seedling nurseries, water supply systems, and research facilities subject to
recommendation by the FMB.


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The SFDF may be augmented by grants, donations, and endowment from
various local and international sources.

In addition, at least seventy percent (70%) of forest charges and
government share collected, including proceeds from sale of confiscated forest
Tesources, machinery, equipment, and tools, fined and penalties shall be set
aside for the SFDF.

Moreover, securitization payment for ecosystem services and collaborative
investments shall be encouraged to support sustainable forest management and
enterprises and the conservation of forest-based biodiversity in the Philippines.

The DENR shall include in the implementing rules and regulations of this
Act the guidelines for the management, development, and operationalization of
the SFDF, in coordination with other concerned agencies civil service
organizations.

Section 30. Importation and Sale. - Forest resources may be imported
into the country, subject to existing laws, rules, and regulations. All imported
forest resources shall comply with the Philippines National Standards to be
developed by the Department of Trade and Industry in coordination with the
Forest Products Research and Development Institute and the DENR.
Compliance with the standards shall be a precondition for the sale or disposition
of these products in the Philippines.

ARTICLE VI
ORGANIZATIONS AND GOVERNANCE

Section 31. Creation of the Position of the Undersecretary for
Forestry. - There is hereby created in the DENR the position of Undersecretary
for Forestry who shall perform the following functions:

a. Oversee the provision of technical, marketing, financial, tenurial
and infrastructure support to persons and entities engaged in FMU
management;

b. Ensure watershed-based planning and monitoring processes are
observed in forestry-related developments;

¢. Facilitate institutional linkages and convergence initiatives among
forestry stakeholders in support of effective development and
management of forest lands consistent with its protection and
production uses;

d. Provide scientific information-based policy recommendation in
aide sustainable forest management; and

e. Promote cost-effectiveness of forestry investments among local
and international investors and donors in line with sustainable
forest management.

The Undersecretary shall be appointed by the President of the Republic of
the Philippines whose office, structure and staffing, shall be determined by the
Secretary subject to existing laws, rules and regulations.

Section 32. Reconstitution of the Forest Management Bureau. - The
Forest Management Bureau is hereby reconstituted as a line bureau under the
DENR, which shall be responsible for the administration, management,
development, and protection of forest lands and forest resources of the country,
which functions specifically as follows:


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a. Implementation of all policies, plans, programs, project and
activities concerning forest lands with provision for effective
feedbacking and reporting mechanisms;

b. Ensure sufficient provision of technical, marketing, financial
tenurial and infrastructure support to persons and entities
engaged in FMU management;

c. Enforce watershed-based planning approaches in all forest-land
development and management endeavors;

d. Encourage the participation of forestry stakeholders thru multi-
sectoral consultative bodies in all forestry-related consultative
process;

e. Develop and implement an effective geographical information
system in aide of forestry planning, monitoring and policy
formulation;

f Monitor and evaluate the physical, environmental and socio-
economic outcomes in the management of all FMUs; and

g. Formulate and publish periodic reports informing stakeholders of
the status Philippine forest lands using both qualitative and
quantitative methods.

Section 33. Composition of the Forest Management Bureau. - As a
line bureau, the FMB shall be headed by a Director and assisted by two (2)
Assistant Directors who shall supervise the administrative and technical services
of the Bureau respectively. There shall be a FMB Regional Director in such
administrative region with corresponding offices and positions.

Section 34. Assistance of Law Enforcement Agencies. - Local
Government Units, the Department of Interior and Local Government, and the
DENR, may, when they deemed necessary, call upon law enforcement agencies
and instrumentalities of the Government such as the Philippine National Police
(PNP), the Armed Forces of the Philippines (AFP), the Philippine Coast Guard
(PCG) and the National Bureau of Investigation (NBI) for the enforcement of
environmental laws, executive orders, and their implementing rules and
regulations.

Section 35. Creation of Community-based Law Enforcement Team.
- The Community-based Forest Law Enforcement Team (CFLET) shall be
organized with members composed of representatives from direct stakeholders
in a particular watershed. Said Team shall be deemed as quick responders on
complaints to be augmented or reinforced by the Forest Ranger. Funding for
CFLET’s operational requirements shall be sourced from agreed contributions
from FMU Managers agreed with the DENR, proceeds from sale of confiscated
forest products, donations from various sources.

Section 36. Local Government Units. - Enabling mechanisms shall be
developed to enhance the participation of the local government units in the
sustainable management and utilization of forest resources within their
territorial jurisdiction, including those assigned by law to other government
agencies.

LGUs with forest lands inside their jurisdiction shall align their CLUPs,
local development plans, disaster risk reduction management plans and other
required plans according to the objectives specified herein and in protected area
management plans.


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Section 37. Other Government Agencies. - Forest lands or portions
thereof, which have been placed under the administration and management of
other government agencies, shall remain under the administration and
management of the said government agencies; with the DENR exercising
oversight power these areas: Provided, That their administration and
management shall be based on the policies, strategies, and programs that are
consistent with the provision of this Act; Provided, further, That the concerned
agencies shall submit an annual accomplishment report to the DENR.

Section 38. Multi-Sectoral Consultative Bodies in Relation to
Natural Resources Governance. ~ A technical and multi-sectoral consultative
body involving all stakeholders concerned within a watershed shall be convened
by the DENR pursuant to this Act, specifically for each FMU and cluster of FMUs
as appropriate and shall be consulted at least once a year to review and make
recommendations on watershed-based management related policies at the local
and regional level. Further, the DENR shall extend technical assistance to multi-
sectoral bodies organized for the purpose of policy making in relation to
environment and natural resources governance specifically on forest governance
issues.

Section 39. Function of Multi-sectoral Consultative Bodies. — The
body shall be responsible for the over-all policy direction in the management of
the forest lands and forest resources found within their respective jurisdiction in
accordance with the provision of this Act. Specifically, (a) it shall review and
recommend implementation of programs and projects, (b) perform oversight
functions on matter pertaining to environment and natural resources, and (c)
participate in the review and recommend relevant policies for the protection,
conservation and restoration efforts within the watershed in ensuring significant
contribution of the forestry sector to national economy, ecological sustainability
and sustainability development closely adhering to the principles and priority
programs of the Government. Said body may also facilitate the initiation of the
LGU’s participation in the devolution program and monitoring the transfer and
implementation of devolved functions to the LGUs.

Section 40. Power and Water Utility Service Providers. - Forest lands
or portion thereof, which have been placed by law or agreement under the
administration and management of government and private power and water
utilities service providers, shall be included in the partitioning of forest lands
into appropriate categories consistent with the purpose of the assigned forest
land, and shall remain under the administration and management of the said
utilities service providers concerned; Provided, That the DENR shall exercise
oversight power on the planning, management, utilization, and assessment of
all forest resources in these areas.

Section 41. Governance Mechanism. - The following mechanisms shall
be developed, established and used for the sustainable forest management:

a. The principles and practices of transparency, accountability, and
participatory decision-making, in transactions, decision, and
actions affecting forestry, in all level, and the policy of streamlining,
decentralization, devolution, and deregulation shall be adopted,
promoted, and institutionalized in the DENR.

b. Updating and preparation of forest land use plans shall be integrated
with updating and preparation of comprehensive land use plans of
local government units.

c. Networks and linkages with local and international institutions, civil
society organization, local government units and industries involved


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in the promotion and practice of sustainable forest management
shall be strengthened.

d. The DENR shall prescribe appropriate fees and government shares
for different kinds of utilization, exploitation, occupation,
possession, or activities within forest lands, as well as the
corresponding administrative fees for permits, agreements, and
other services.

e. The DENR shall have the authority to impose other fees for payment
for ecosystem services and forest protection, management,
reforestation, and development. In addition, the DENR may waive
frees and charges on government activities within forest lands that
supports public utility, social welfare, national security, or national
interest.

f. The DENR shall undertake the monitoring and control of forest
management and utilization through a third-party audit and
certification, A National Forest Certification System shall be
established which will outline the policy, rules, procedures, and
management for implementing forest management certification and
chain-of custody certification in the country. The DENR shall
develop pertinent guidelines, in coordination with all stakeholders,
for the implementation of this provision subsequent to the effectivity
of this Act.

g. The DENR shall establish a forest management information system
which consists of comprehensive up-to-date information on the
physical, social, financial, economic, biological, and environmental
components of the country’s forest lands and forest resources. It
shall include a continuous monitoring system to track the utilization
and movement or transfer of forest-based goods and services, the
changes in the state of forest resources and ecosystem services, and
its drivers. It shall include further a ground-based validation system
as basis for assessing progress towards sustainable forest
management.

h. It shall be the priority of the State to ensure that government
employees involved in the implementation of the sustainable forest
management law are properly trained, sufficiently equipped,
adequately compensated, and given ample opportunities to
participate in its implementation. The DENR and other agencies
involved shall appropriately provide funding for the same.

ARTICLE VII
OFFENSES AND PENALTIES

Section 42. Harvesting, Gathering, Collection, or Possession of
Forest Resources from Protection Forest Lands. - Any person who shall
harvest, gather, collect, or possess any forest resources from protection forest
lands shall be punished with imprisonment ranging from six (6) years and one
(1) day to twelve (12) years and one (1) day and/or fine equivalent to ten (10)
times the value of the said forest resource. The Forest Protection Officers shall
have the authority to estimate the present market value of the forest resources
of the illegal harvest, gathering, collection or possession based on the guidelines
promulgated by the DENR.

In case of partnerships, associations, or corporations, the president,
managing partner or general manager shall be held liable.


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In case of aliens, the Bureau of Immigrations shall deport them without
further proceedings after paying the fine imposed.

Section 43. Illegal Harvesting, Gathering, Collection, or Possession
of Forest Resource as an Act of Economic Sabotage. - Any of the acts
enumerated in the proceeding section shall be considered as an economic
sabotage when committed by:

a. At least tow or more persons through an organized and systematic
manner; and

b. Any person when the amount of forest resources harvested, gathered,
collected, or possessed amounts at least One million pesos
(P1,000,000).

The penalty of imprisonment for twenty (20) years and one (1) day to forty
(40) years shall be imposed

Section 45. Grazing Livestock in Forest Lands without Authority. -
Any

person found to have caused the grazing of livestock in forest lands without an
authority from the DENR shall be punished with the imprisonment of two (2)
years, four (4) months, and one (1) day to four (4) years and two (2) months. The
livestock shall be confiscated in favor of the Government.

Section 45. Unlawful Occupation of Forest Lands. - Any person who,
without the authority from the DENR, possesses or occupies any parcel of forest
lands shall be punished with a penalty of imprisonment of six (6) year and one
(1) day to twelve (12) years and a fine of not less than One hundred thousand
pesos (P100,000.00) but not more than Five hundred thousand pesos
(P500,000.00) .

Section 46. Destruction of Forest Lands. - Any person who shall
destroy or cause destruction within forest lands or assist, aids, or abets another
person to do so, shall be punished with a penalty of imprisonment of six 296)
years and one (1) day to twelve (12) years, and a fine of not less than One hundred
thousand pesos (P100,000.00) but not more than Five hundred thousand pesos
(P500,00.00).

Section 47. Unlawful Operations of Sawmills, Wood Processing
Plants, and Forest-Based Industries. - Any person operating sawmills, wood
processing plants, and forest-based industries without any authority from the
DENR, shall be punished with a penalty of imprisonment for six (6) years and
one (1) day to twelve (12) years and a fine of not less than Five hundred thousand
pesos (500,000.000).

If the offender is a public official or employee, the accessory penalty of
disqualification from holding any public office imposed for a period of twelve (12)
years and one (1) day. If the offender is an official or an employee of the DENR,
the accessory penalty of permanent disqualification shall be imposed.

All forest resources, machinery, equipment, and tools pertinent to the
operation of the abovementioned establishments shall be confiscated in favor of
the Government.

Section 48. Prohibition on the Issuance of Land Titles or Tax
Declaration of Forest Lands. - All land titles and tax declaration issued over


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forest lands shall be deemed void ab initio. Any person who shall issue land titles
and tax declarations over any forest land or a parcel thereof shall be punished
with imprisonment of six (6) and one (1) day to twelve (12) years a fine not less
than One hundred thousand pesos (P100,000.00) nor more than Five hundred
thousand pesos (P500,000.00) the accessory penalty of disqualification shall be
imposed for a period for twelve (12) years and one (1) day.

Section 49. Non-Payment and Non-Remittance of Forestry Fees and
Charges. - Any person who fails to pay the amount due and payable as forestry
fees or charges to the government or remit the same to the proper authorities
shall be punished with a penalty of imprisonment for a period of six (6) years.
and one (1) day to twelve (12) years with a fine of not less than One hundred
thousand pesos (P100,000.00) no more than Five hundred thousand pesos
(P500,000.00).

Section 50.. Non-Establishment of Tree Parks and Green Spaces.-
Every local government unit shall establish and maintain tree parks and green
spaces pursuant to their comprehensive land use plans. Funds for the
establishment and maintenance of the same shall form part of the local
government unit’s annual budget.

Every owner of land subdivided into residential, commercial, or industrial
lots shall reserve, establish and maintain at least thirty percent (30%) of the total
land area of the subdivision, exclusive roads, service streets and alleys as green
space for tree parks.

No subdivision plan shall be approved by the Housing and Land Use
Regulatory Board unless at least thirty percent (30%) of the total area of the
subdivision has been reserved as green space. The owner must develop the green
space within three (3) years from the approval of the subdivision plan.

Any local government unit or owner of a parcel of land subdivided into
residential, commercial, or industrial lots who fails to establish green spaces or
tree parks as provided in the preceding paragraphs shall be penalized with a fine
of not less than Five hundred thousand pesos (P500,000.00) nor more than One
million pesos (P1,000,000,00)

Section 51. Illegal Conversion of Tree Parks and Green Spaces. — Any
person who shall convert or cause to convert any tree park or green space for a
purpose inconsistent with that which is provided for by this Act shall be
punished with a penalty imprisonment for six (6) years and one (1) day to twelve
(12) years and/or a fine not less than Five hundred thousand pesos
(P500,000.00) nor more than One million pesos (P1,000,000.00).

If the offender is a public official or employee, the accessory penalty of
disqualification is imposed for a period of twelve (12) years and one (1) day. If
offender is an official or an employee of the DENR, the accessory penalty of
permanent disqualification shall be imposed.

Section 52. Arrest and Detention. - If the apprehension was conducted
in remote areas far from the place where person authorized to conduct inquest
proceedings are located, the delivery to the proper judicial authorities shall be
done within a reasonable time period, taking into consideration the ordinary
travel time from the place of arrest to the place of delivery.


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In order to facilitate the delivery of arrested persons for violations of this
Act, the Department of Justice shall designate in every city and province a special
prosecutor who shall be responsible for filing appropriate charges against
arrested offenders.

Section 53. Public Auction of Forest Resources. - If the confiscated
forest resources are in danger of deteriorating, the DENR may order that the
same be sold at public auction even before the termination of the judicial
proceedings, with the proceeds kept in trust to await the outcome of the judicial
proceedings.

Section 54. Authority of Forest Protection Officers. - When in the
performance of their official duties, forest protection officers or other public
officials or employees authorized by the DENR, shall have free access into forest
lands or any parcel thereof.

They are also authorized to search the exterior and interior of all vehicles
suspected to contain illegally harvested, collected or gathered forest resources:
Provided, That the search is done in the presence of the apprehended person and
two (2) public local officials.

Finally, forest protection officers are authorized to administer oaths, take
acknowledgements in official matters connected under the authority of this Act
and implementing rules and regulations.

ARTICLE VII
ADMINISTRATIVE PROVISIONS

Section 55. Administrative Authority of the Secretary or his Duly
Authorized Representative to Order Confiscation. — In all cases of violations
this Act or other forest laws, rules and regulations, the Secretary or the duly
authorized representative may order the confiscation of forest resources illegally
harvested, collected, gathered, possessed and of forest resources illegally
harvested, collected, gathered, possessed and those that are abandoned. This
authority shall extend to all conveyances used either on land, water or air as well
as machinery, equipment, implements, and tools used in the commission of the
offense and to dispose of the same in accordance with pertinent laws, rules and
regulations.

Section 56. Administrative Authority of the Secretary to Impose
Fines. - In all cases of violations of this Act and other forest laws, rules, and
regulations where fine is the principal penalty, the Secretary or the duly
authorized representative, after the consultation with the forest-based industries
affected, is hereby authorized to impose administratively the penalty consisting
of the amount and the schedules of the fine which shail be officially published
in a national newspaper of general circulation.

Section 57. Fines Escalation Clause. ~The fines herein prescribed shall
be increased by at least ten percent (10%) every three (3) years to compensate
for inflation and to maintain the deterrent function of such fines.

Section 58. Informant’s Incentive.- Twenty percent (20%) of the value of
confiscated materials shall be used as incentives to informants including forest
management councils, forest management councils, forest management boards.


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improperly performs the duties under this law or its
implementing rules and regulations.

However, no suit can be filed until after a notice of violation is sent to the
alleged offender within thirty (30) days starting from the date of the occurrence
of the violation.

Section 61. Implementing Rules and Regulations.- The DENR, in
consultation with other government agencies and relevant stakeholders charged
with the administration and enforcement of this Act shall promulgate the
necessary implementation rules and regulations within one (1) year from the
effectivity of this Act.

Section 62. Transitory Provisions. - Upon the approval of this act, the
DENR shall evaluate the conditions of all forest lands covered by existing tenure
instruments, agreements or contracts, permits, and the like, which shall; be
allowed to continue until their expiry unless otherwise earlier terminated for
cause.

Section 63. Separability Clause. - Should any provision of this Act be
subsequently declared not constitutional, such declaration shall not affect the
validity or the legality of other provisions.

Section 64. Repealing Clause. - All laws, decrees, executive orders,
rules and regulations, issuance or parts thereof inconsistent with the provisions
of this Act are hereby repealed or modified accordingly.

Section 65. Effectivity.- This Act shall take effect fifteen (15) days after
its publication in the Official Gazette or in a newspaper of general circulation.

Approved,