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Republic of the Philippines TIME: iu
HOUSE OF REPRESENTATIVES

Quezon City, Metro Manila

EIGHTEENTH CONGRESS
First Regular Session

House Bill No. 5508

Introduced by Representative GERALDINE B. ROMAN

EXPLANATORY NOTE

The bill seeks to accelerate the implementation of agrarian reform program
by commencing the second phase of program implementation in collaboration with
rural development programs on Land Acquisition and Distribution (LAD) free areas.
The legislative measure is premise on poverty alleviation thru asset reform,
institutional and capacity building, establishment of linkages, and infrastructure
projects in identified rural communities as part of the overall efforts to intensify total
rural development with the end view of empowering and capacitating people in rural
communities.

Preserving and sustaining the gains derived from the implementation of
agrarian reform program is utilized as a launching pad in introducing rural
development in LAD-free barangays or municipalities or a cluster thereof. The gains
from agrarian reform will facilitate rural development implementation in view of the
existing institutionally and strategically placed government agency, the DAR, which
to further operationalize therefore shall be transformed into a body that shall
implement the final completion of land acquisition and distribution aspect of agrarian
reform program, and shall thereafter or hand-in-hand introduce rural development
in identified areas.

Among others, the salient features of the proposed HB are the following:

14. Transforming the Department of Agrarian Reform into Department of Agrarian
Reform and Rural Development, without emasculating its primary mandates
as the lead agency in agrarian reform program implementation, strengthening
and expanding the powers and functions as a transformed body that will
introduce rural development programs;

2. Re-instituting the authority of the Department to issue Notices of Coverage to
private agricultural lands which are qualified for agrarian reform coverage;

3. Expanding the scope of private agricultural lands to cover friar lands and
those under Universities and colleges, and automatic coverage of lands
issued with land use conversion order where the development plan was not
complied;



4. Inclusion of Government Owned Lands, foreclosed lands by government
financing institution, lands under proprietary holdings of LGUs and other
government agencies;

5. Providing that the lands is awarded to qualified beneficiaries for free;

6. Expanding the support services component and inclusion of housing for
ARBs as part of thereof;

7. Capacitating the farmland or Title of ownership as loan collateral;

8. Providing that the decision of the DAR Secretary on cases within its
jurisdiction shall be final and executory except when an injunction is issued
by Court of competent jurisdiction;

9. Vesting upon the quasi-judicial power of the DAR the authority to reconstitute
lost or destroyed CLOAs/EPs and other Title issued under agrarian reform
program as well as TCTs/OCTs of lands which are identified for coverage;

10. Reinstituting PARC as Presidential Agrarian Reform and Rural Development
Council (PARRDC), vesting upon thereof the authority to declare a particular
area as LAD-free and renaming the BARC to BARRDC and providing funds
for allowances/honoraria of its members;

11. Prohibition against land reclassification and land use conversion of awarded
land; and

12. Creation of additional offices and staff complements in order to further carry-
out its objectives, particularly on rural development implementation.

In view of the timely and laudable intentions of the proposed legislative measure,
we earnestly seek support for its prompt approval.

Pa Bho


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City, Metro Manila

EIGHTEENTH CONGRESS
First Regular Session

House Bill No. _°908

Introduced by Representative GERALDINE B. ROMAN

“AN ACT
TRANSFORMING THE DEPARTMENT OF AGRARIAN REFORM INTO
“DEPARTMENT OF AGRARIAN REFORM AND RURAL DEVELOPMENT”
MANDATING ITS FUNCTIONS, OPERATIONALIZING THE 2"° PHASE OF
CARP IMPLEMENTATION, PROVIDING FUNDS THEREFOR AND FOR
OTHER PURPOSES”

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

Section 1. — Chapter Ili, Republic Act 6398, Book IV, Title XI, of Executive
Order No. 292, (The Administrative Code of 1987) and Executive Order No.
129-A, is hereby amended to read as “Agrarian Reform and Rural
Development”. All reference under this law pertaining to the Department of
Agrarian Reform shall henceforth be transformed into the “Department of
Agrarian Reform and Rural Development” (DRD).

Section 2. — Section 2 of Republic Act No. 6657, as amended, is hereby
further amended to read:

“Section 2. Declaration of Principles and Policies — The
promotion of social justice in all phases of national development is the
primordial responsibility of the State, which includes the commitment
to create economic opportunities based on freedom of initiative and
self-reliance. Corollary thereto, the State is cognizant that a large
portion of agricultural lands are still subject for coverage and
distribution was halted due to the limited time frame impose in the
completion of land acquisition and distribution and the termination of
the issuance of Notice of Coverage (NOC) on June 30, 2014.

In line with this, the State recognizes that the agrarian reform
program is an effective tool for social equity strategy in ensuring
participative and broad-based growth among the marginalized and
rural sector. It promotes optimizing the productive potentials of the


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agricultural sector and in alleviating poverty and curtailing
lawlessness in the countryside through equal access to productive
assets like land, provisions for necessary support services packages
to its beneficiaries and marketing assistance of produce from
awarded lands. The gains and momentum so far achieved in the
implementation of the agrarian reform program is stymied and would
be rendered nugatory considering that the vital component in its
implementation ceased due to the statutory timeline imposed on the
issuance of Notice of Coverage (NOC) and where the remaining
substantial area of agricultural lands, other than private agricultural
lands, have not yet been covered by the program. Thus, and as
mandated by the Constitution, the State is duty-bound to take an
aggressive stance in the continued implementation of the agrarian
reform program. Accordingly, it is imperative to statutorily
institutionalize a mandate for the continued issuance of Notices of
Coverage and the inclusions of other agricultural lands which are
actually and directly cultivated by landless farmers.

The State further recognize the diminishing area of private
agricultural lands for coverage under the agrarian reform program,
accordingly and invoking the inherent power of the State, it is
imperative to extend and broaden the scope of coverable agricultural
lands for distribution under this Act, particularly the inclusion for
coverage and distribution of government-owned lands and such other
similar types of lands where there are actual and direct cultivators
therein and whose rights have not yet been recognized and had not
been confirmed accordingly.

In realization therefore, a second phase of the implementation
of agrarian reform program should be institutionalized statutorily by
mandating the issuance of Notice of Coverage on all remaining
private agricultural lands in excess of five (5) hectares until fully
completed, and to include in the acquisition and distribution pursuant
to this Act other qualified government owned lands which are devoted
to or suitable for agricultural production and where there are actual
cultivators therein.

The rights of landowners to just and fair compensation of their
lands covered under this Act, as well as investment assistance and
provisions of incentives towards entrepreneurship, shall at all times
be given utmost consideration in the implementation of this Act.

The State is cognizant of the indispensable role of the
Barangay Agrarian Reform Council (BARC) which shall henceforth be
named Barangay Agrarian Reform and Rural Development Council
(BARRDC) as the basic unit equipped with institutional information at
the grassroots or local level. The role of the BARRDC in the entire
process of the implementation of this Act as well as in the alternative

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resolution of agrarian-related conflict is imperative to accelerate the
commencement and completion of the second phase of agrarian
reform program. Hence, there is a need to revitalize and strengthen
the BARRDC by enabling it with corresponding organizational role,
function and authority and the provision of budgetary allocation for its
operation, as may be determined by the Presidential Agrarian Reform
Council (PARC), which shall henceforth be named Presidential
Agrarian Reform and Rural Development Council (PARRDC).

The State moreover recognize the indispensable role of the
private sector, encouragement of private enterprise, provision of
incentives for necessary investments requirements, and trade policies
that serves the general welfare and utilization. In pursuance
therefore, all forms of agribusiness arrangements or agreements of
exchange with private enterprises, investors, Provided, it is based on
equality and reciprocity that is aimed for increased agricultural
productivity and income of all stakeholders of agrarian reform
program, as may be approved and determined by the DARRD, are
sanctioned by the State. The potential produce of the lands awarded
to beneficiaries of agrarian reform program or the Title of ownership
may be the subject of collateral for loans with private financing
institution subject to certain limitations as may be provided by law.

The State acknowledge that the provision of support services to
agrarian reform beneficiaries is critical to the success and
sustainability of the program. The incorporation in the mandate on the
provision of social protection services, health insurance, educational
assistance and housing facilities to qualified agrarian reform
beneficiaries were identified as among the component provisions of
support services to ARBs beneficiaries.

The success and sustainability of the agrarian reform program
is determined by the increased productivity and economic growth of
beneficiaries, and the maintenance of awarded land ownership within
the beneficiaries or its immediate family members subject to
qualification criteria set forth under applicable laws. The
transferability of awarded lands outside of the immediate family
members of the beneficiary, is restricted.

It is further the mandates of the State to sustain rural
development along with the implementation of agrarian reform
program. Corollary therefor, the mandates of the DARRD needs
parallel track geared towards rural development, particularly on areas
where land distribution are completed.

Incorporating rural development on Land Acquisition and

Distribution (LAD) free area is primarily the key component in
preserving the gains that were derived in the implementation of

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agrarian reform program. Towards this end, the State shall utilize
such tangible gains as platform to rural development.

In realization, the DAR shall be transformed into a body that
shall lead in the implementation of agrarian reform program in
conjunction with rural development on LAD-free declared areas.

The State furthermore recognizes the manpower resources
required to fully accelerate the completion of the agrarian reform
program and subsequent infusion of rural development. In recognition
therefore, there is a need to strengthen and expand the Department
of Agrarian Reform and Rural Development (DARRD) by
complementing strategic offices that are vital and necessary to carry-
out the implementation of this Act.

Thus, it is imperative to transform and strengthen the DAR into
Department of Agrarian Reform and Rural Development.

Section 3. - Section 4 of Republic Act No. 6657, as amended, is

hereby further amended to read:

“Section 4. Scope - The second phase of agrarian reform
program shall cover all private agricultural lands and public
agricultural lands with actual cultivators. It shall include:

4.1 GOVERNMENT OWNED LANDS

(a)All alienable and disposable lands of public domain
devoted to or suitable for agriculture.

(b)All lands of the public domain in excess of the specific limits
granted by this Act.

(c)All lands or portions thereof reserved by virtue of
Presidential Decrees and Proclamations, other laws and
issuances for specific public uses by the government, its
agencies and instrumentalities, including government-
owned or controlled corporations suitable for agriculture
and no longer actually, directly and exclusively used or
necessary for the purposes for which they have been
reserved, as determined by the DAR in coordination with
the government agency or instrumentality concerned in
whose favor the reservation was established.

In the case of military reservations, the determination of
areas suitable for agriculture and no longer actually, directly
and exclusively used or necessary for the purposes for


which they have been reserved shall be based on the
actual use for the military installations or facilities.

In the case of lands affected by public sector development
projects located in the reservations of special economic
zones, where such development projects have not started
within the period of five (5) years from the grant of its use,
such land or portion thereof not developed shall be covered
by this Act.

(d)All agricultural land acquired by Government Financial
Institution (GFI) through sale or foreclosure proceedings
which have been occupied and cultivated by tillers and not
have been used or remained idle for a period of more than
ten (10) years or abandoned as such.

(e)All public agricultural lands granted by Congress to natural
or juridical persons for specific purposes and which are no
longer being used for the purposes for which it was granted
and when the same are occupied and cultivated by tillers
and/or when the same have remained idle for a period of
more than ten (10) years or abandoned as such.

(f) All agricultural lands held by the government in a
proprietary capacity and which are no longer used for the
proprietary purposes for which it is being held and which
are occupied and cultivated by tillers.

(g)All agricultural lands acquired by the government thru
donation from private individuals, where the terms and/or
conditions of the donation have not been complied by the
government, when the ownership and possession thereof
still remains with the government.

(h)All government lands devoted to or suitable for agriculture
which are in the possession of government departments,
agencies, bureaus, offices and other instrumentalities, and
which are no longer actually, directly and exclusively used
or necessary for the purpose for which they have been
reserved or acquired and have remained idle for a period of
more than ten (10) years or abandoned as such

(i) All lands of public schools, state university and colleges,
presently occupied and cultivated by tillers, which are no
longer actually, directly and exclusively used for
educational purposes and have remained undeveloped or
idle for a period of more than ten (10) years and/or
abandoned as such.


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(j) All other lands owned by government devoted to or suitable
for agriculture.

4.2 PRIVATE AGRICULTURAL LANDS

(a)All private agricultural lands in excess of the five (5)
hectares ownership as provided for by RA 6657.

(b)All private agricultural lands identified by PD 27 and RA
6657, as amended by RA 9700, but was not covered and
distributed to farmer-beneficiaries in accordance with said
laws.

(c)All private agricultural lands that have been reclassified as
commercial, industrial or residential lands by local
government units or other agencies of government but
remained undeveloped according to their reclassification
program or when such reclassification is in violation of RA
6657, as amended.

(d) All. private agricultural lands with approved land use
conversion Order, but which lands was never used for the
purposes for which conversion was granted or that such
conversion was in violation of RA 6657, as amended.

In case of the foregoing, this Act hereby declares the
revocation of their Conversion Order. If the development of
the land has not started, the entire landholding shall be
covered by this Act; otherwise only the undeveloped portion
shall be covered.

(e)All lands of private schools colleges and universities as well
as Friar lands or lands owned by religious or charitable
institutions, presently occupied and cultivated by tillers,
which are no longer actually, directly and exclusively used
for educational, religious or charitable purposes and have
remained undeveloped or idle for a period of more than ten
(10) years and/or abandoned as such.

(f) All private lands devoted to or suitable for agriculture
regardless of the agricultural products raised or that can be
raised thereon.

4.3 ANCESTRAL LANDS

(a) Ancestral lands of Indigenous Cultural
Communities/Indigenous Peoples (ICCs/IPs) shall be

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covered by this Act, Provided, that their rights will be
protected to ensure their economic, social and cultural well-
being.

Section 4. — There shall be incorporated after Section 6 of Republic
Act No. 6657, as amended, new sections to read as follows:

“SECTION 6-C. Identification of Private
Agricultural Lands. —- The DARRD shall identify all covered
private agricultural lands after the effectivity of this Act and
shall ascertain the following:

(a)The description and location of the land;

(b)Proof of ownership;

(c) The names of the tenants/farmworkers therein; and

(d)The latest market value of the land as determined by the
municipal or provincial assessor.

SECTION 6-D. Identification and Inventory of
Government-Owned Agricultural Lands. — All department,
bureaus, offices and instrumentalities of the government
shall identify their lands devoted to or suitable for agriculture
and no longer actually, directly and exclusively used or
necessary for the purpose which they have been reserved or
acquired, and thereafter submit a list thereof to the DARRD,
indicating the location and area of the said lands, actual use
and legal basis of ownership.

Section 5. — The title of Section 16 of Republic Act No. 6657, as
amended, is hereby further amended to read:

“SECTION 16. Procedure for acquisition and distribution
of private lands. - For purposes of acquisition and distribution of
private lands, the following procedures shall be followed:

(a) After having identified the covered private agricultural
lands pursuant to Section 4 hereof, the DAR shall send a Notice of
Coverage of the land for acquisition thereof to the owners/s
thereof, by personal delivery or registered mail, and post the same
in conspicuous place in the municipal building and barangay hall
of the place where the property is located. Said notice shall also
contain the offer of the DAR to pay a corresponding value in
Section 17, 18 and other pertinent provisions hereof.

The issuance of Notice of Coverage shall serve as the
formal notice to the owner/s of the subject private agricultural land
which initiates the process of land acquisition.


(b) xxxx xxxx
(c) xxxx xXxxx
(d)xxxx xXxxx
(@) XXXxX XXXX
(f) xxxx xxxx

SECTION 16-A. Procedure for acquisition and
distribution of government-owned lands. — For purposes of
acquisition and distribution of government-owned lands (GOLs),
the following procedures shall be followed:

(a) All department, bureaus, offices and instrumentalities
of the Government shall identify their coverable GOLs, and
thereafter submit a list thereof to the DARRD, indicating the
location and area of the said lands, actual use and legal basis of
ownership.

(b) The DARRD, in coordination with the DENR, shall
cause the preparation of the total inventory of the coverable
GOLs, which includes the list of lands submitted by the concerned
departments, agencies and instrumentalities and those identified
by the DARRD.

(c) The DARRD, in coordination with the DENR and the
DA, shall undertake the validation of the lands listed in the
inventory, taking into consideration their suitability for agricultural
use, limitations on their use under existing laws and issuances,
their respective metes and bounds, and such other relevant
criteria.

(d) The DARRD shall issue a Request for Execution of a
Deed of Transfer (DOT) for validated coverable GOL to the
department, bureau, office or instrumentality concerned.

(e) In case the department, bureau, office or
instrumentality concerned refuses or fails to execute a DOT within
fifteen (15) days from receipt of the request, the DAR shall issue a
Notice to Proceed Acquisition (NTPA).

(f) Upon receipt of the duly executed DOT from the
DARRD or upon issuance of NTPA, the DARRD shall proceed
with the process of land acquisition, and distribution of the subject
landholding in accordance with R.A. No. 6657, as amended, other
pertinent polices, rules and issuances.


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(g) All transferred GOLs which were acquired by a
department, bureau, office or instrumentality of the government
through purchase shall be subject to payment of compensation or
reimbursement in accordance with the rules and guidelines to be
formulated by the Department of Budget and Management,
Department of Finance and the Land Ban of the Philippines.

(h) In case of dispute, the Secretary of the DARRD shall
exercise exclusive jurisdiction over all disputes, claims, and
controversies involving the coverability of GOLs in accordance
with Section 50 of R.A. No. 6657, as amended.

Section 6. — There shall be incorporated after Section 26 of Republic
Act No. 6657, as amended, new sections to read as follows:

Section 26-A. Moratorium on the payment of
amortization. — There shall be a land amortization moratorium for a
period of three (3) years from effectivity of this Act affecting new
ARBs that would be identified and awarded lands covered by the
program. This period is granted to provide support to newly identified
and awarded ARBs to aid them in their investment/s, facilities and
production over the awarded agricultural land.

Section 7. - Additional Section after Section 35 of Republic Act
No. 6657, as amended, is hereby added to read:

“Section 35-A. - Expanded Support Services Component — The
provisions of support services shall not be limited to agrarian reform
beneficiaries (ARBs), it shall also extend to the small-farmers in the
Agrarian Reform Communities (ARCs) and non-ARCs where the LAD
component is almost completed, by providing the ARBs therein the support
services needed to ensure that the lands awarded to them become as
productive as possible. For this purpose, the Agrarian Reform Community
Connectivity and Economic Support Services (ARCCESS) is hereby
institutionalized. Along this thrust, the ARCCESS shall be operationalized
to address the support services needed by the ARBs, strengthen their
organizations, enable them to consolidate their production, post-harvest,
processing, logistics and marketing activities, and address problems of
economies of scale through the provision of rural infrastructure, innovative
financing and investment and credit support, value-adding agri-extension
and agri-technology services,
business development services, and common service facilities or farm
equipment, and deployment of community-based enterprise organizers.


Section 8. - Section 37 of Republic Act No. 6657, as amended,
is hereby further amended to read:

“SECTION 37. Additional Support Services for the
Beneficiaries — The DARRD and program implementing
agencies shall ensure that support services to farmers-
beneficiaries are provided, and shall include:

37.1 Provisions of socialized housing projects at reasonable
cost for agrarian reform beneficiaries;

The DARRD shall establish and institutionalize parallel
linkages and intermediaries with private financing institution
allowing or accepting the produce or Title of ownership of
awarded lands as the subject of collateral to secure a loan.
Provided that, the proceeds from loan shall be utilized for
farming and production inputs on the awarded land.

37.2 Provision of Social Protection Services for ARBs and
their qualified immediate dependents.

37.3 Health Insurance — The DARRD in coordination with
the DOH shall ensure that all ARBs and their dependents
shall be among the priority recipients of the Universal Health
Care/Insurance.

37.4 Education Assistance. The DARRD in collaboration
with the CHED shall facilitate the provision of free
educational support to qualified children of ARBs in the
tertiary level (Senior High School and College)

Section 9. - Section 41 of Republic Act No. 6657, as amended,
is hereby further amended to read:

“Section 41. - Presidential Agrarian Reform and Rural
Development Council - The Presidential Agrarian Reform Council (PARC)
is hereby renamed as Presidential Agrarian Reform and Rural
Development Council (PARRDC). The PARRDC shall continue to perform
and exercise its mandate and powers pursuant to the provisions of
Republic Act No. 6657, as amended by Republic Act No. 9700, and shall
further be vested with additional function as hereinafter provided.

Section 41-A. — Power to Declare LAD-Free Area — The PARRDC.
shall have the exclusive authority to declare thru a Resolution a certain
barangay, municipality or a cluster thereof as LAD-free. A particular
barangay, municipality or cluster thereof shall be considered LAD-free if all
agricultural land which are qualified for coverage by the agrarian reform
program have been fully and completely issued with Titles under agrarian

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reform program and the land distributed to Agrarian Reform Beneficiaries,
notwithstanding any post LAD issues attending thereof.

Section 10. - Section 50 of Republic Act No. 6657, as

amended, is hereby further amended to read:

“Section 50. Quasi-Judicial Powers of the DARRD - The
DARRD is vested with primary and exclusive jurisdiction to
determine and adj te agrarian reform matters and shall have
exclusive original jurisdiction over all matters involving the
implementation of agrarian reform, except those falling under the
exclusive jurisdiction of the Department of Agriculture and the
Department of Environment and Natural Resources.

The rules of procedure and evidence in courts of law and
equity shall not be controlling and the DARRD shall use every and
all reasonable means to ascertain facts speedily and objectively,
hear and decide all cases, disputes and controversies in
accordance with justice and equity and the merits of the case, all
in the interest of due process. Toward this end, it shall adopt a
uniform rule of procedure to achieve a just, expeditious and
inexpensive determination of every action or proceeding before it.

It shall have the power to summon witnesses, administer
oaths, take testimony, require submission of reports, compel the
production of books and documents and answers to
interrogatories and issue subpoena, and ‘subpoena duces tecum
and to enforce writs through sheriffs and other deputized officers.
It shall likewise have the power to punish direct and indirect
contempt in the same manner and subject to the same penalties
provided for the Rules of Court.

Responsible farmer leaders shall be allowed to represent
themselves or their fellow farmers or organization of farmers, if
duly authorized as such by the farmer/s-organization/s in any
proceedings before the DAR: Provided, however, that when there
are two or more representatives for any individual or group, the
representatives should choose only one among themselves to
represent such party or group before any DAR proceedings.

Motion for reconsideration of any decision, resolution or
order of the DARRD Secretary shall not be entertained except
when based on palpable or patent errors; provided that the motion
is filed within Ten (10) calendar days from receipt of decision,
resolution or order, with proof of service that a copy of the same
has been furnished, within the reglementary period, the adverse
party; and provided further, that only one such motion from the
same party shall be entertained.

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Any order, ruling or decision shall be final after the lapse of
ten (10) days from receipt of a copy thereof by all of the parties to
the case or their representatives.

The Decision of the DARRD is final and immediately
executory notwithstanding appeal, except when an injunction is
issued by Court of competent jurisdiction”

“Section 50-A. Reconstitution of Titles — The reconstitution
of lost or destroyed registered owner's duplicate copy of Original
Certificate of Title/Transfer Certificate of Title (OCT/TCT) of lands
which are identified for coverage under this Act, as well as Certificate
of Land Ownership Award (CLOA) or Emancipation Patent (EP), and
other titles of ownership issued under the agrarian reform program,
shall be vested under the exclusive and primary jurisdiction of the
DARRD Adjudication Board (DARRDAB)

Section 11.- | Section 53 of Republic Act No. 6657, as amended,
is hereby further amended to read:

“Section 53. Re-institutionalization of the Barangay
Agrarian Reform Council — The PARRDC and the DARRD shall
re-institutionalize the BARRDC by establishing operational
structure that would provide its role and functions in_ initial
identification of potential and qualified beneficiaries and vesting
upon the primary jurisdiction in settlement of agrarian disputes
within Barangay level. It shall likewise institutionalize the provision
of incentives to BARRDC officers in a form of honoraria or
allowances, as may be determined accordingly. As such,
provisions for major implementing mechanism for the program and
appropriate funding for its members and regular operations shall
be provided by the DARRD. The BARRDC shall assist in the full
implementation of this Act.

Section 53-A. - Certification of the BARRDC - The
DARRD shall not take cognizance of any agrarian dispute or
controversy unless a certification has been issued by the
Barangay Agrarian Reform and Rural Development Council that
the dispute has been submitted to it for mediation and conciliation
without any success of settlement. Provided, however, that if no
certification is issued by the BARRDC within thirty (30) days after
a matter or issue is submitted to it for mediation or conciliation, the
proper DARRD office may take cognizance on the issue or
dispute.”

Section 12.- Section 54 of Republic Act No. 6657, as amended,
is hereby further amended to read:


“Section 54. Special Civil Action on Certiorari — Any
decision, order, award or ruling of the DARRD on any agrarian
dispute or any matter pertaining to the application,
implementation, enforcement, or interpretation of this Act and
other pertinent laws on agrarian reform may be brought to the
Court of Appeals by way of Certiorari under Rule 65 of the Rules
of Court.

The findings of fact of the DARRD shall be final and
conclusive if based on substantial evidence.”

Section 13. - Section 65 of Republic Act No. 6657, as amended,
is hereby further amended to read:

“SECTION 65. Prohibition Against Land
Reclassification and Land Use Conversion. — The lands
covered by this Act shall not be subjected to conversion and
reclassification by any government unit, agency, institutions or
instrumentality.”

Section 14.- Sections 30 of Republic Act No. 9700, is hereby
further amended to read:

Section 30. Resolution of Cases — Any case and/or
proceeding involving the implementation of the provisions of
Republic Act No. 6657, as amended, which remains pending until
the approval of this Act shall be allowed to proceed to its final
determination and executed even beyond such date.”

Section 15.- The Powers and Mandates of the Department of
Agrarian Reform and Rural Development — The powers, functions and
mandates of the Department of Agrarian Reform (DAR) under Chapter Ill,
Republic Act No. 6389, Executive Order No. 292, Executive Order No. 129-
A and other related laws and issuances shall henceforth be vested upon
the DARRD which shall maintain and continue to perform its mandates,
powers, functions as provided by laws for purposes of carrying out the
objectives and purposes of this Act.

Section 16. — Strengthening and Expanding the Functions and
Mandates of the Department of Agrarian Reform and Rural
Development - The Department shall be headed by a Secretary who shall
be appointed by the President with the confirmation of the Commission on
Appointments. In correlation with its existing functions and mandates in
agrarian reform implementation, it shall lead, along with line agencies, in
infusing rural development programs, specifically prioritizing in LAD-free
declared areas. The rural development program hereinafter referred to is a

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post-LAD programs which shall include, but not limited, to the following
projects and service facilities:

(a) Infrastructure development, which includes the construction
and maintenance of barangay roads and farm-to-market
roads, bridges and culverts, multi-purpose pavements,
irrigation and drainage, village water supply and sanitation,
post-harvest storage facilities, food processing plants, and
buildings and community facilities;

(b)Agricultural development, which includes farmers’ training,
farm extension services, and the establishment of rural
market centers;

(c)Agricultural credit and cooperative development, which
includes credit extension program and the promotion of
farmers’ cooperatives;

(d)Rural electrification, which calls for the intensification of
barangay electrification;

(e)Rural health service facilities, which includes the
establishment of barangay health centers;

(f) Barangay education and __ information disseminations
facilities;

(g) Land and forest development, which includes _ soil
conversion and reforestation; and

(h)Land settlement.

Section 17 — Office of Undersecretary for Rural Development -
There is hereby created an Office of Undersecretary for Rural Development
with staff complement. The office shall be headed by an Undersecretary
who shall assist the Secretary in implementing the mandates and functions
of the Department of Rural Development. The Undersecretary shall be
appointed by the President upon the recommendation of the Secretary. The
Secretary is hereby authorized to delineate, assign and/or reassign the
respective functional areas of responsibility of the Undersecretaries,
provided, That such responsibility shall be with respect to the mandate and
objectives of the Department; and provided, Further, that the
Undersecretary assigned to rural development shall possess the
competence and technical expertise relevant to the mandates and
functions required by the office. Furthermore, that no Undersecretary shall
be assigned primarily administrative responsibilities.

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The Undersecretary for Rural Development shall be responsible for
the overall direction in the implementation of rural development and shall
ensure that all policy directives of the Secretary are fully implemented.

Section 18 — Rural Development Service Office — There is hereby
created a Rural Development Service Office (RDSO) with staff
complement, which shall be headed by a Director III, who shall assist the
Undersecretary in rural development program implementation. The Director
Ill shall be appointed by the President upon the recommendation of the
Secretary. Provided that, the Director Ill for RDSO shall possess the
required competence and technical skills in the field of rural development.
The RDSO shall be responsible in planning, policy development,
coordination, implementation, and monitoring in order to carry-out rural
development in identified areas.

The RDSO shall be complemented by two (2) Divisions, the Program
Implementation Division and the Monitoring and Evaluation Division, which
shall be headed each by a Division Chief (SG 24). The respective Divisions
shall be complemented each by one (1) Supervising Rural Development
Officer (SG 22), two (2) Senior Rural Development Officers (18), three (3)
Rural Development Officers Il (SG 15), and two (2) Administrative
Assistants (SG 8). Provided that, the two (2) Division Chiefs and respective
technical staff shall possess the required competence and relevant
qualification standard as prescribed in the implementing guidelines of this
Act.

Section 19-— Policy Development, Research and Legislative
Liaison Service — There is hereby created a Policy Development,
Research and Legislative Liaison Service (PDRLLS) which shall be headed
by Director IV and assisted by Director Il, both shall be appointed by the
President upon the recommendation of the Secretary. The PDRLLS shall
be complimented by three (3) Divisions, the Policy Division, Research
Division, and Legislative Liaison and External Affairs Division, with
respective staff complements. The PDRLLS shall be responsible for policy
formulation and monitoring, conduct of research, studies, and coordination
with legislative bodies and stakeholders on all matters pertaining to the
mandates and objectives of the Department.

Section 20. — Section 63 of Republic Act No. 6657, as amended, is
hereby further amended to read:

“Section 63. Funding Source — The initial amount needed
to implement this Act shall be funded from the Agrarian Reform
Fund created under Sections 20 and 21 of Executive Order No.
229.

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Additional amounts are hereby authorized to be
appropriated as and when the needed to augment the Agrarian
Reform Fund in order to fully implement the provisions of this Act.

Sources of funding or appropriations shall include the following:

a) Proceeds of the sales of the Privatization and Management
Office (PMO);

b) All receipts from assets recovered and from sale of ill-gotten
wealth recovered through the Presidential Commission on
Good Government excluding the amount appropriated for
human rights violations under applicable law;

c) Proceeds of the disposition and development of properties of
the Government in foreign countries, for the specific purposes
of financing production credits, infrastructure and other
support services required by this Act;

d) All income and collections of whatever form and nature arising
from the agrarian reform operations, projects and programs of
the DAR and other agrarian reform implementing agencies;

e) Portion of amounts accruing to the Philippines from all sources
of official foreign aid grants and concessional financing from
all countries, to be used for the specific purposes of financing
production credits, infrastructures, and other support services
required by this Act;

f) Yearly appropriations of no less than
Billion pesos from the General Appropriations Act;

g) Gratuitous financial assistance from legitimate sources; and
h) Other government funds not otherwise appropriated.

All funds appropriated to implement the provisions of the Act
shall be considered continuing appropriations; Provided, that if the
need arises, specific amounts for bond redemptions, interest
payments and other existing obligations arising from the
implementation of the program shall be included in the annual
General Appropriations Act: Provided, further, That all just
compensation payments to landowners, including execution
judgments therefore, shall only be sourced from the Agrarian
Reform Fund; Provided, however, that just compensation
payments that cannot be covered within the approved annual
budget of the program shall be chargeable against the debt
service program of the national government, or any

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unprogrammed item in the General Appropriations Act: Provided,
finally, that after the completion of the land acquisition and
distribution component of this Act, the yearly appropriation shall be
allocated fully to support services, agrarian justice delivery and
operational requirements of the DAR and other agrarian reform
implementing agencies.”

Section 21.- Section 64 of Republic Act No. 6657, as amended,
is hereby further amended to read:

“Section 64. Financial Intermediary for the Second
Phase of Agrarian Reform — The Land Bank of the Philippines
shall continue to the financial intermediary for this second phase
of agrarian reform program in the Philippines, and shall insure that
the social justice objectives of this Act shall enjoy preference
among its priorities.”

Section 22. - Sections 31 of Republic Act No. 9700, is hereby further
amended to read:

“Section 31. Implementing Rules and Regulations —
The PARRDC and the DARRD shall formulate and provide the
necessary implementing rules and regulations within One Hundred
and Eighty (180) days from approval of this Act. Such rules and
regulations shall take effect ten (10) days after its publication in a
newspaper of general circulation.”

Section 23. - Repealing Clause- Republic Act No. 3844, as
amended and Republic Act No. 6657, as amended, and all laws, decrees,
executive orders, issuances, rules and regulations, or parts thereof
inconsistent with this Act are hereby repealed or amended accordingly.

Section 24. - Separability clause — \f for any reason any section or
provision of this Act is declared unconstitutional or invalid, the other
sections or provision hereof not affected thereby shall remain in full force
and effect.

Section 25.- Effectivity clause- This Act shall take effect upon
approval hereof and shall be published in at least two (2) newspapers of
general circulation.

Approved:

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