Fifteenth Congl'ess of the Republic 
of the Philippines 
Second Regular Session 
) 
) 
) 
SENATE 
S.B.No. 2963 
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Jilhff of I'll' ~i,,·r-(rfnry 
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SEP 13 
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Introduced by Senator Ramon Bong Revilla, Jr. 
EXPLANATORY NOTE 
Laguna Lake Development Authority (LLDA) was established in 1966 as a quasi-
government agency that leads, promotes, and accelerates sustainable development in the Laguna 
de Bay Region of the Philippines. Regulatory and law-enforcement functions are carried out with 
provisions on environmental management, particularly on water quality monitoring, conservation 
of natural resources, and community-based natural resource management. 
Laguna de Bay is the largest inland water body in the Philippines covering about 900 
square kilometers. 
The Lake Region straddles the country's most highly urbanized areas 
including six provinces, twelve cities, and 49 municipalities of which 29 are lakeshore towns. 
The lake is considered a major lifeline for most of the countryside folks. Fisheries is still 
the lake's most dominant use with an estimated annual potential yield of 80,000 to 90,000 MT of 
both fishpens and open water fisheries. Croplands in the lakeshore towns, aside from providing 
food to the local population - contribute significantly to the food supply of Metropolitan Manila. 
Laguna de Bay provides resources and services such as food, power, domestic water supply, 
habitat for a variety of living organisms, and a means of mobility of the lakeshore dwellers. It is 
thus considered a major lifeline of many countryside people. 
Laguna de Bay, however, is in a critical condition. It has been cited in the 2007 Laguna 
Lake Monitor that 70 percent of the pollution in the lake comes from uncontrolled solid and 
liquid wastes from domestic sources. Unlike industries which are point sources of wastes, 
domestic sources (also called non-point sources) are more difficult to regulate - much more 
control. There is, thus, a need for a shift in attitude and behavior among the lake stakeholders. 
Behavioral change among lake stakeholders can be best achieved through awareness raising and 
education by experiential learning. 
What is clearly of the most urgent necessity is to have a body specially tasked to create 
and manage an overarching conservation policy. For this reason, this bill will be a decisive first 
step in a new direction of rational and people-centered conservation. 
Early passage of this bill is earnestly sought. 
G REVILLA, JR. 


Fifteenth Congress of the Republic 
of the Philippines 
Second Regular Session 
) 
) 
) 
SENATE 
S.B.No. 2963 
'1' 
SEP 13 
I~O :33 
Introduced by Senator Ramon Bong Revilla, Jr. 
AN ACT 
CREATING THE LAGUNA LAKE CONSERVATION AUTHORITY (LLCA), THEREBY 
REPEALING REPUBLIC ACT NO. 4850, AS AMENDED, OTHERWISE KNOWN AS 
THE LAGUNA LAKE DEVELOPMENT AUTHORITY ACT OF 1966, AND FOR 
OTHER PURPOSES 
Be it enacted by the Senate and House of Representatives of the Philippines Tn Congress 
assembled: 
SEC. 1. Short Title. - This Act shall be known as the "Laguna Lake Conservation 
Authority Act of 2011 ". 
SEC. 2. Declaration of Policy. - It is hereby declared the policy of the State to conserve 
and promote Laguna Lake in a sustainable manner along with the surrounding areas that 
comprise its region, hereinafter referred to as the Bay Region, with Laguna Lake and the 
systematic management and protection of its water resource as the focal point. 
For this purpose, the State hereby adopts a participatory integrated water resources 
management (IWRM) approach to the interconnection and integration of its various ecosystems, 
using the Lake's watersheds as planning units, and involving the stakeholders in the planning and 
execution process, 
In accordance with the IWRM approach, and to allow the lake to realize its various 
potentials including that of being a fish production resource of national importance, any 
development program in the region shall always consider the Precautionary Principle in 
protecting the health of the people, the sustainable management of the environment and the 
prevention of any ecological harm, resource deterioration or pollution. 
SEC. 3. Definition o/Terms. - As used in this Act: 
I) Laguna Lake or Laguna de Bay - that area covered by the lake water when it is at the 
average annual maximum lake level of elevation 12.50 meters, as referred to a datum 
10.00 meters below mean lower low water (M.L.L.w.) of Manila de Bay. Lands 
located at and below such elevation are public lands which form part of the bed of said 
lake. 
2) Integrated Water Resources Management (IWRM) - a process that promotes the 
coordinated conservation and management of water, land and related resources in 
order to maximize the resultant economic and social welfare considerations in an 
equitable manner without compromising the sustainability of vital ecosystems. 
3) Watershed - the geographic area of land that drains water to a shared destination or to 
an area ofland that drains down slope to the lowest point. The water moves through a 
1 


network of drainage pathways, both underground and on the surface. Other tenns used 
interchangeably with watershed include drainage basin or catchment basin. 
4) Environment - the physical factors of the total surroundings of human beings, 
including but not limited to the lakes and other bodies of water, land, air, atmosphere, 
climate, sound, odor, plants, insects, animals, its biological and physical factors, all its 
life support systems and all other surrounding matters that affects directly or indirectly 
the existence of human life and other life fonns in a specific area. 
5) Shoreland / Lakeshore areas / Bziffer Zone -
that part of the lake along the entire 
lakeshore lying at elevation 12.50 m. and below and alternately submerged or exposed 
by the annual or seasonal rising and lowering of the lake levels. This is a linear strip of 
land of approximately 14,000 hectares designed to separate the incompatible elements 
or uses or to control pollution or nuisance and for identifYing and defining 
development areas or zones and area for fisherfolk settlement. 
6) Groundwater - sub-surface water that occurs beneath a water table in soils and rocks, 
or in geological formations. 
7) Aquaculture - fishery operations involving all fonns of raising and culturing fish and 
other fishery species in fresh, brackish and marine water areas. Areas for aquaculture 
in Laguna Lake shall not exceed 6000 hectares. 
8) Aquastructure - also refers to a fish pen, which is a structure enclosing a particular 
area in the lake which makes use of bamboos or anahaw poles surrounded by nets, 
fastened by a weight of sinkers embedded in the lake bed; and fish cage, which is an 
inverted mosquito net fastened to bamboos or such other structures used for culturing 
fishery/aquatic resources. 
9) Effluent - means discharge from known sources which is passed into a body of water 
or land, or wastewater flowing out of a manufacturing plant, industrial plant including 
domestic, commercial and recreational facilities. 
10) Municipal Fisherfolk - persons who are directly or indirectly engaged in fishing and 
other fishery-related activities whose income from such activities do not exceed three 
thousand pesos (Php 3,000) a month. 
11) Pollution - any alteration of the physical, chemical and biological properties of any 
water, air and land resources of the Philippines, or any discharge thereto of any liquid, 
gaseous or solid wastes as are likely to render such water, air and land resources 
hannful, detrimental or injurious to the public health, safety or welfare, or which will 
adversely affect their utilization for domestic, commercial, industrial, agriCUlture, 
recreational or other legitimate purposes. 
12) Precautionary Principle - the principle stating that lack offul! scientific certainty shall 
not be used as a reason for postponing cost-effective measures to prevent 
environmental degradation, where there are threats of serious or irreversible damage. 
13) Conservation - an ethic of resource use, allocation, and protection which has as its 
primary focus the maintenance of the health and biological diversity of the natural 
2 


world, such that management of the environment does not despoil, exhaust or 
extinguish. 
SEC. 4 .Danger Zone/High Risk Areas - Danger ZonelHigh Risk Areas are areas with 
high level of threat to the lives and well-being of people that cannot be addressed through 
scientific, physical and engineering methods, and thus not suitable for settlement and permanent 
structures. Areas can only be declared as Danger ZonelHigh Risk Area after conducting proper 
technical study and public consultations with affected families. 
SEC. 5. Laguna Lake Region. -
For the purposes of this Act, the Laguna Lake 
Region, shall comprise the provinces of Laguna and Rizal; the cities of Calamba, Sta. Rosa, 
San Pablo, Pasay, Caloocan, Quezon, Manila, Makati, Mandaluyong, San Juan, Pasig, Marikina, 
Muntinlupa, Antipolo, Tagaytay, Tanauan, Taguig and Lipa; the towns of Silang, Carmona, 
Dasmariiias and General Mariano Alvarez in Cavite Province; the towns of Mauban, Real, 
Lucban and Sampaloc in Quezon Province; the towns of Sto. Tomas and Malvar in Batangas; and 
the town of Pateros in Metro Manila and all areas that drain into the Laguna Lake: 
PrOVided, 
That any cities or towns that may be subsequently created in the future out of the aforementioned 
municipalities and cities surrounding Laguna Lake shall form part of the Laguna Lake Region. 
SEC. 6. Users of Laguna Lake - All fishery related activities in Laguna Lake shall be 
utilized by municipal fisherfolk and their cooperatives/organizations who are listed as such in the 
Registry of Municipal Fisherfolk; prOVided that organized municipal fisherfolk shall have 
preferential rights in the utilization of Laguna Lake. 
SEC. 7. Fisherfolks Settlement Site/Area - The LLCA shall establish and create 
fisherfolk settlement areas in coordination with concerned agencies of the government, where 
certain areas of the public domain, specifically near the fishing grounds, shall be reserved for the 
settlement of the municipal fisherfolk. Nothing in this section shall be construed to vest 
ownership of any resettlement area to a municipal fisherfolk for whom said areas may have been 
reserved for or had been actually granted to. 
The LLCA in coordination with Department of Agrarian Reform (DAR), DILG and other 
agencies concerned, shall establish a fisherfolk settlement area that shall be seen in the context of 
an integrated, holistic and self-reliant community to include alternative source of income. 
SEC. 8. 
Laguna Lake Conservation Authority. - The Laguna Lake Conservation 
Authority, hereinafter referred to as LLCA, is hereby created to replace the Laguna Lake 
Development Authority (LLDA). It shall pursue the conservation and management of the Bay 
Region and shall maintain its principal office at a convenient place within the Bay Region, and 
its branch offices in such places within the Bay Region as are necessary for the proper conduct of 
its business. 
SEC. 9. 
Powers and Functions. - The LLCA shall have the following powers and 
functions: 
(a) 
Periodically conduct a comprehensive survey of the Bay Region, and monitor and 
update the same, on the basis of which it shall prepare a sustainable regional 
development master plan to be drawn up with accredited municipal fisherfolk 
organizations, other concerned government agencies, the private sector as well as 
other stakeholders. 
3 


Such survey includes but is not limited to a study of the Region's water supply, 
water quantity and quality in the Lake as well as in all its major tributary rivers, the state 
of its watersheds, irrigation, transport route, reservoir of floodwater, hydroelectric and 
other power potentials, scenic and tourist spots, and other physical and natural resource 
potentials, taking into account the socio-economic conditions prevailing in the 
area. 
All concerned public and private agencies shall provide the LLCA the necessary 
data for the purposes of the said survey; 
(b) 
Develop a long-term conservation and management program of the Bay Region in 
consonance with a regional master plan which shall be formulated in consultation 
with all stakeholders, concerned government agencies, local government units 
(LGUs), private and civil society in the Bay Region; 
(c) 
Review all plans, projects and programs that relate to the development of the Bay 
Region that are proposed and submitted by LGU s, public corporations and private 
persons or corporations to ensure that they confonn to the enviromnental 
standards prescribed by the LLCA and other environmental laws and standards; 
The LLCA shall collect reasonable fees as may be determined by the Board for 
the 
processing of such plans, programs or projects. ProVided that any future 
expansion of such 
plans, programs, or projects shall be subjected to review and 
to payment of additional fees as may be detennined by the LLCA Board; 
(d) 
Implement infrastructure projects within the context of its conservation and 
management master plan, such as for flood control, irrigation, water supply, solid 
waste management, wastewater and sewerage, roads, housing, including the 
readjustment, relocation, or resettlement of the fisherfolk population within the 
l2.S-meter lakeshore area as may be deemed necessary and beneficial. 
Should any of these projects be financed wholly or in part by the LLCA, it shall 
have the authority to collect reasonable fees and tolls from users or beneficiaries 
to recover the costs of construction, operation and maintenance of the projects. 
For infrastructure projects that 
are in the nature of social overhead capital 
projects, the LLCA shall be entitled to receive the corresponding financial 
assistance from the government to be appropriated out of the funds of the national 
treasury not otherwise appropriated; 
(e) 
Undertake massive information, education campaign among the stakeholders, in 
close coordination with the LGUs and other government agencies within the 
Laguna de Bay Region to better understand the importance of enviromnental 
protection and conservation of the Laguna Lake and its watersheds; 
(f) 
Determine new areas of fishery development, taking into account the overall 
development plans and programs for Laguna Lake and related bodies of water, 
and promulgate rules and regulations governing fisheries development in the Bay 
Region. Accordingly, it shall engage in experimental or pilot fish production in 
Laguna Lake and other bodies of water within its jurisdiction, in collaboration 
with the Bureau of Fisheries and Aquatic Resources (BFAR). It shall improve 
present fishery techniques and practices to provide equitable access to the Lake's 
fishery resources for the socio-economic amelioration of small fisherfolk, the 
improvement of their communal fishing grounds, and sustainable aquaculture 
development and operation. In hiring laborers for fishery-related projects, there 
shall be preference for qualified shore land residents; 
4 


(g) 
Regulate the use of shoreland areas by enjoining LGUs within the Bay Region to 
establish watershed management councils or wetlands whenever suitable and 
consistent with LLCA policies; 
(h) 
Develop surface and groundwater supply sources for municipal, agricultural, 
commercial, and industrial use, in close coordination with the National Water 
Resources Board (NWRB) or Local Water Utilities Administration (LWUA), as 
the case may be, pursuant to existing laws, executive orders and other issuances 
which may be necessary to accomplish the aims and purposes of the LLCA; 
(i) 
Enter into agreements with LGUs, governmental agencies and corporations and 
the private sector for the supply, treatment, distribution and marketing of such 
water; 
U) 
Establish and enforce anti-pollution standards on municipal, agricultural, 
commercial and industrial wastewater and effluents being discharged into the lake 
in coordination with appropriate government agencies; 
(k) 
Conduct a continuing research, development and extension program, in close 
coordination with the academe, Department of Environment and Natural 
Resources (DENR) and the Department of Science and Technology (DOST), on 
lake water quantity and quality, integrated watershed management, and enterprise 
development and management with the end in view of promoting sustainable 
development in the region; 
(I) 
Adopt rules and regulations governing the approval of sewage works and 
industrial waste disposal system and the issuance of clearance and/or permits in 
accordance with the provisions of this Act where necessary; and inspect the 
construction and maintenance of sewage works and industrial waste disposal 
systems for compliance with the conditions of the clearance and/or permit; 
(m) 
Require all projects or activities in or affecting the Laguna de Bay Region to 
secure Environmental Compliance Certificates (ECCs) as required under 
Presidential Decree No. 1586, and grant clearance and/or permits for any projects 
or activities located within or affecting the Bay Region including, but not limited 
to, industrial and commercial activities, navigation, irrigation, power generation, 
housing, resettlement and other forms of land developments, construction and 
operation of aquastructures, aquaculture development, dredging or reclamation 
and similar or related activities, and to impose necessary safeguards for lake water 
quantity and quality control and management and to collect the necessary fees for 
said activities and projects; 
(n) 
Issue, renew, or deny permits subject to reasonable guidelines for the discharge of 
sewage, industrial waste, or for the installation or operation of sewage works and 
industrial disposal system or parts thereof for the prevention and abatement of 
pollution; and require subdivisions, condominiums, clinical and medical 
establishments, mortuaries, public buildings, other similar human settlements, to 
construct appropriate central sewerage system and sewage treatment works. The 
LLCA may impose reasonable fees and other similar charges for the issuance or 
renewal of all permits herein required; 
(0) 
Issue orders or decisions to compel compliance with the provisions of this Act and 
its implementing rules and regulations only after proper notice and hearing; 
(p) 
Make, issue, alter, or modify orders or decisions, after notice and hearing, 
requiring the discontinuance of pollution specifying the conditions and the time 
5 


within which such discontinuance must be accomplished; 
(q) 
Revoke, suspend or modifY any clearance and/or permit issued under this Act, 
after due notice and hearing, whenever the same is necessary to prevent or abate 
pollution; 
(r) 
Deputize or request the assistance of appropriate government agencies or 
instrumentalities for the purpose of enforcing this Act and its implementing rules 
and regulations and the orders and decisions of the LLCAAND LGU'S; 
(s) 
Inspect, and investigate and monitor conditions relating to pollution and existing 
or imminent environmental dangers; and to authorize a representative to enter any 
public and private property devoted to agricultural, commercial and industrial use 
for this purpose; 
(t) 
Extract janitor fish and other harmful and invasive species that pose a danger to 
productivity of the lake and to small fisherfolk's livelihood; 
(u) 
Exercise such powers perform such other functions as may be necessary to carry 
out its duties and responsibilities under this Act. 
SEC. 10. Corporate Powers. - The Authority has the following corporate powers: 
a) 
Succeed in its corporate name; 
b) 
Sue and be sued in its corporate name; 
c) 
Adopt, alter and use a corporate seal; 
d) 
Adopt, amend, or repeal its by-laws; 
e) 
Enter into contracts to enable it to carry out its purposes and functions under this 
Act; 
f) 
Acquire, buy, purchase, hold or lease, such personal and real property as it may 
deem necessary in the transaction of its business or in relation to carrying out its 
purposes under this Act and to lease, mortgage, sell, alienate, or otherwise 
encumber, utilize, exploit or dispose any such personal and real property held by 
it, subject to individual or communal right of private parties or of the government 
or any agency or enterprise thereof; 
g) 
Exercise the right of eminent domain whenever the LLCA deems it necessary to 
achieve the objectives of this Act; 
h) 
Borrow funds from any local or foreign sources independent of the bonds it may 
issue or may continue to issue to carry out the purposes of this Act; 
i) 
Purchase, hold, alienate, mortgage, pledge or otherwise dispose of the shares of 
the capital stock of, or any bond, securities, or other evidence of indebtedness 
created by any other corporation, co-partnership, or government agencies or 
instrumentalities; and while the owner of said stock to exercise all the rights of 
ownership, including the right to vote thereon: PrOVided, That the LLCA shall not 
invest its funds in any high risk debt instrnments issued without recourse to 
commercial banks or investment houses as well as in any highly speculative 
stocks; 
6 


j) 
Perform any and all acts which a corporation, co-partnership or jnridical person is 
authorized to perform under the existing laws or which may be enacted hereafter; 
k) 
Provide incentives to encourage the private sector to enforce conservation 
activities. 
I) 
Issue such other rules and regulations as may be necessary from time to time to 
achieve the pnrposes of this Act, the same to take effect thirty (30) days after its 
publication in a newspaper of general circulation. 
SEC. 11. 
Board of Directors. - The LLCA shall be governed by a Board of Directors 
who shall be appointed by the President of the Philippines and shall be composed of 
the 
following: 
1) Secretary of Environment and Natnral Resources, Chairman 
2) General Manager, LLCA, Vice-Chairman 
3) Governor, Province of Laguna 
4) Governor, Province of Rizal 
5) Secretary, Department of Agriculture 
6) Secretary, National Economic and Development Authority 
7) Secretary, Department of Public Works and Highways 
8) Chairman, Metro Manila Development Authority 
9) Representative of the Bay Region City and Municipal Mayors' Association to be 
constituted sixty (60) days from the passage of this Act from among the mayors of towns 
and cities that comprise the Bay Region as defined in Section 3 of this Act 
10) Representative of the Laguna Fisherfolk Federation 
11) Representative of the Rizal Fisherfolk Federation 
12) Representative of the NCR Fisherfolk Federation 
13) Representative of women fisherfolk federation 
The representatives of the Laguna Fisherfolk, Rizal fisherfolk and NCR fishefolk shall be 
appointed by the President of the Philippines to be chosen from among the nominees 
recommended by the Laguna, Rizal, NCR Fisherfolk Coalition respectively, upon consultation 
with the concerned sector. The term of the appointive members shall be six (6) years without 
reappointment, or until their successors are duly appointed and qualified. Vacancy, other than 
through the expiration of the term, shall be filled for the unexpired term only. 
Ex-officio Cabinet members can designate alternate representatives to the Board, given 
the demands of their Cabinet-level position. 
SEC. 12. Powers and Functions. - The Board of Directors shall exercise the following 
powers and functions: 
7 


a. 
Prescribe policies, rules and regulations to govern the conduct of business of the 
LLCA including the rules and procedures of the Authority; 
b. 
Upon the recommendation of the General Manager, to approve the LLCA's 
organizational and administrative structures and corresponding staffing pattern as 
may be deemed necessary: fix their reasonable compensation, allowances and 
other benefits; prescribe their duties and establish such methods and procedures as 
may be necessary to insure the efficient, honest and economical administration of 
the provisions and purposes of this Act; Provided, however, That the personnel of 
the LLCA below the rank of Assistant General Manager shall be appointed by the 
LLCA General Manager; PrOVided, further, That the personnel appointed by the 
LLCA General Manager, except those below the rank of Department Heads, and 
others of comparable rank, shall be subject to the confirmation by the Board; 
PrOVided, further, That the personnel of the LLCA shall be selected only from 
civil service eligibles and be subject to Civil Service rules and regulations; 
PrOVided, finally, That the LLCA shall be exempt from Republic Act No. 6758, 
otherwise known as the Salary Standardization Law; 
c. 
Upon the recommendation of the General Manager, to approve the annual and 
supplemental budget of receipts and expenditures of the LLCA, and to authorize 
such operating and capital expenditures and disbursements of the LLCA as may 
be necessary or proper for the effective management, operation and administration 
of the LLCA; 
d. 
Create and organize a Technical Advisory Council composed of representatives 
from both the government and non-government sectors as the Board may 
determine to assist and advise the Board in the conduct of public consultations 
with all Bay Region stakeholders towards a better considered formulation of 
LLCA plans and policies. 
e. 
Perform such other functions as may be necessary to carry out the provisions of 
this Act. 
SEC. 13. Board Meetings. - The Board shall meet at least once a month. 
SEC. 14. Per Diems and Allowances. -
The members of the Board shall receive a per 
diem for every meeting not exceeding the sum of Php 10,000.00 per month. 
SEC. 15. General Manager; Powers and Functions. - The General Manager shall be 
the Chief Executive Officer of the LLCDA. As such, he/she shall have the following powers and 
functions: 
a. 
Submit for consideration of the Board policies and measures which he believes to 
be necessary to carry out the purposes and obj ectives of this Act; 
b. 
Execute, administer, and implement the policies, plans, programs and projects 
approved by the Board; 
c. 
Manage and supervise the operation and administration of the LLCA; 
d. 
Appoint all officials and employees of LLCA below the rank of Assistant General 
Manager, remove, suspend or otherwise discipline them for cause, in accordance 
with existing Civil Service rules and regulations, and submit quarterly reports to 
the Board on personnel selection, placement and training; 
8 


e. 
Render an annual report to the Board and various stakeholders regarding the 
operation of the LLCA including its latest financial statement; 
f 
Represent the LLCA in all dealings with offices, agencies and instrumentalities of 
the government and will all persons and other entities, public or private, domestic 
and foreign; 
g. 
Perform such other functions as may be provided in the By-Laws and as may be 
vested in him/her by the Board. 
SEC. 16. 
Qualifications of tlte General Manager. - The General Manager shall be a 
citizen and resident of the Philippines. He/She shall have demonstrated executive competence 
and experience in the field of public administration, economic planning, environmental and 
natural resource management, or in the establishment and management of large agricultural, 
commercial or industrial enterprises. No person shall be nominated as General Manager unless 
he/she be of unquestioned integrity and competence. 
SEC. 17. Tenure of Office of tlte General Manager. - The General Manager shall be 
appointed by the President of the Philippines for a fixed term of six (6) years. 
In case of 
resignation, retirement, separation, transfer, re-assignment, removal and other cause of cessation 
from office, the replacement shall serve only for the unexpired portion of the term. 
SEC. 18. Compensation. - The General Manager shall receive such compensation as 
may be determined by the Board with the approval of the President of the Philippines which shall 
be chargeable against the annual appropriation of the LLCA. 
SEC. 19. Management Structure. - In carrying out the activities of the LLCA, the 
General Manager shall be assisted by two Assistant General Managers (one for Operations and 
another for Administration) who shall have such powers, duties, and ftmctions as the General 
Manager may prescribe andl or delegate and shall act as the General Manager in the absence of 
or during the temporary incapacity of andlor until such time as a new General Manager is duly 
appointed. 
The Authority shall have the following departments under the direct supervision and 
control of the General Manager; 
a) 
b) 
Corporate Legal Affairs Department which shall provide legal advice and support 
to all the corporate units on legal implications of the various undertakings of the 
Authority and divided into Litigation Division, and Research and Documentation 
Division. 
Administrative Department which shall be responsible for providing services 
relating to human resource management, records management, and general 
servICes. 
c) 
Finance Department which shall be responsible on revenue planning, generation 
and enhancement, assistance on budgetary and financial matters, and safekeeping 
of corporate assets. 
d) 
Policy Planning and Management Services Department which will undertake 
policy research and development, and advise the General Manager on policy 
positions and public advocacy measures for approval of the Board. 
9 


e) 
Integrated Water Resources Management Services Department which will serve 
as the main technical ann of the Authority and shall integrate the functions of 
Lake basin management and conservation. It shall oversee the management of the 
Laguna Lake and its river systems including the shorelands. 
f) 
Environmental Protection Department which will manage all the environmental 
regulatory functions of the Authority like c1earance/pennits and licensing, 
monitoriug and surveillance, enforcement and adjudication and environmental 
quality compliance. 
The Board shall periodically review the appropriateness of the eXlstmg 
organizational structure and amend the same whenever it may deem necessary and 
beneficial to achieve the purposes of this Act and to be able to respond efficiently 
to LLCA's mandate as herein provided. 
SEC.20. Annual Fees. - The LLCA is hereby authorized to collect annual fees for the 
use of the lake waters, its tributaries and shoreland areas for all beneficial purposes including but 
not limited to fisheries, aquaculture, municipal, agricultural, irrigation, commercial, industrial, 
hydroelectric generation and other power potential, transport and navigation, waste disposal 
purposes, recreation and dredging/reclamation from all private and public entities whether 
government or non-government agencies, among others the water utilities sector. All the fees so 
collected shall be accordingly appropriated for the sustainable development of the lake and its 
watershed areas. PrOVided, that the fees collected for fisheries may be shared between the 
Authority and other govenunent agencies and LGUs as follows: thirty-five (35) percent of the 
fish pen fee goes to shore land LGUs, five (5) percent goes to the Project Development Fund 
and the remaining sixty (60) percent shall be retained by LLDA; PrOVided, however, that the 
share of LLDA shall form part of its corporate funds and shall not be remitted to the National 
Treasury as an exception to the provisions of Presidential Decree No. 1234. 
SEC. 21. Capitalization and Financing. - The LLCA shall have an authorized capital of 
ONE BILLION PESOS. The authorized capital stock of One Billion Pesos (PI, 000,000,000.00) 
shall be divided into Ten Million Pesos (PIO, 000,000.00) shares of stock with a par value of One 
Hundred Pesos (100) per share. The National Govermnent shall subscribe to Six Million Shares, 
the province of Laguna to One Million shares, the province of Rizal to One Million shares and 
the balance of Two Million Shares shall be open for subscription of other government agencies 
or LGUs and other private individuals or corporations within the Bay Region. 
The shares of stock of the LLDA shall be divided into: 
1) 7,000,000.00 common shares (voting); and 
2) 3,000,000.00 preferred shares (non-voting) with such fixed rates of return as shall be 
determined by the Board. 
Provided, however, That preferred shares shall enjoy preference with respect to 
distribution of dividends and assets in case of dissolution. 
SEC. 22. 
Appropriations. - The amount of Three Hundred Million Pesos (Php 
300,000,000.00) is hereby appropriated to carry out the provisions of this Act which shall be 
included in the General Appropriations Act of the year following its enactment. 
The additional amount of Three Hundred Million Pesos (Php 300,000,000.00) shall be 
divided to shares of stock in accordance with the proportion provided in the preceding paragraph. 
10 


SEC. 23. Domestic and Foreign Borrowing Authority. - The Administration shall have 
the authority to borrow money from all domestic and foreign loan sources whether government 
or private: Provided, that its loan outstanding both from domestic and foreign sources shall not 
exceed an aggregate ceiling of Nine Hundred Million U.S. Dollars (US$900, 000, 000.00): 
Provided, that all domestic and foreign borrowings of LLCA shall be approved by the 
Department of Finance (DOF), Bangko Sentral ng Pilipinas (BSP) and other entities as required 
by pertinent laws and regulations. 
SEC. 24 Authority to Contract Foreign Loan.- The Administration is hereby authorized 
to contract loans, credits, in any convertible foreign currency or capital goods, and to incur 
indebtedness from time to time with foreign governments, or any international financial 
institutions or fund sources, including supplier's credits or deferred payment arrangements, the 
total outstanding amount of which, excluding interests, shall not exceed its aggregate domestic 
and foreign borrowing authority of Nine Hundred Million US Dollars (US$900, 000, 000.00) or 
the equivalent thereof in other currencies, on terms and conditions promulgated by the Secretary 
of Finance and the Monetary Board for the accomplishment of its objectives; and to enter into 
and execute contracts and other documents specifying such terms and conditions. 
"The President of the Philippines, his or her duly authorized representative, is hereby 
authorized to negotiate and contract with foreign governments or any international financial 
institution or fund sources in the name and on behalf of the administration, one or several loans, 
for the purpose of implementing the Administration's program for the promotion and 
development of local water utilities through the Administration's financing or lending operations. 
"The President of the Philippines, his or her duly authorized representative, is hereby 
further authorized to guarantee, absolutely and unconditionally, as primary obligor and not as 
mere surety, in the name and on behalf of the Republic of the Philippines, the payments of the 
loans, credits and indebtedness up to the amount herein authorized, over and above the amounts 
which the President of the Philippines pursuant to loan agreements entered into with foreign 
governments or any international financing institution or fund sources. 
"The loan credits and indebtedness contracted under this section shall be in accord with 
the provisions of Republic Act No. 4860, or the Foreign Borrowing Act as amended. The 
provisions of Section 123 of RepubJic Act No. 7653, otherwise known as the New Central Bank 
Act; The provisions of Section 23 of Central Bank Circular No. 1389, as amended; Section 20, 
Article VII and Section 21, Article XII of the 1987 Constitution and other pertinent laws and 
regulations". 
SEC. 25. Creation of LLCA Environmental Adjudication Panel. - For the purpose of 
effectively carrying out the quasi-judicial powers of the Authority within the Bay Region, the 
LLCA Environmental Adjudication Panel (LEAP) is hereby created composed of a Chainnan 
and two (2) other members representing the Office of the General Manager, the Corporate Legal 
Affairs Department and the concerned department depending on the matter under controversy to 
be designated by the General Manager. The LEAP is hereby mandated to take cognizance and 
adjudicate violations of this Act including all existing and relevant laws, LLCA policies, rules 
and regulations. Any decision, order or resolution must be concurred by the majority member of 
the panel and duly approved by the General Manager. 
The Corporate Legal Affairs Department shall serve as Secretariat of the LEAP. 
SEC. 26. 
Creation of a Lake Police Force. The National Police Commission shall 
constitute and assign a special police force, to be known as the Laguna Lake Police, exclusively 
for the Bay Region, trained especially for enforcement of laws on fisheries and environmental 
laws and the rules and regulations duly promulgated by the LLCA. 
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The extent of operational supervision and control by the LLCA General Manager over the 
Laguna Lake Police shall be the same as that of local chief executives over police force of LGUs 
as defined in the Department of Interior and Local Government Act of 1990 (R.A. 6975), in 
relation to Sec. 73 of the Local Government Code of 1991 (R.A. 7160). The LLCA Board, the 
local govermnent units (LGUs) and the leadership of the Philippine National Police shall within 
sixty (60) days from the passage of this Act constitute a technical working group that will further 
delineate and define the nature and character of this unit in order to avoid any overlap and 
potential conflict with the LGU police units within the Bay Region. 
SEC. 27. Exemption/rom Tax. - The LLCA shall be exempt from: 
a) 
all taxes, licenses, fees, imposts, charges costs, duties, incidental to its operations and 
service/filing fees in any court or administrative proceedings in which it may be a 
party, restrictions and duties to the Republic of the Philippines, its provinces, cities, 
municipalities and other govermnent agencies and instrumentalities; and 
b) 
all income taxes, franchise taxes and realty taxes to be paid to the National 
Government, its provinces, cities, municipalities and other government agencies and 
instrumentalities. 
SEC. 28. Fines and Penalties. - The LLCA is authorized to impose administrative fines 
and other penalties it may deem reasonable and appropriate as determined and approved by the 
Board for non-compliance with permit conditions and for undertaking development activities 
without clearance/petroit from the LLCA against any person, juridical or otherwise, within the 
Bay Region who may be found violating, or have in fact violated, any of its rules and 
regulations; 
Likewise, the LLDA is authorized to institute the necessary legal proceedings against 
those who shall commence to implement any development activities within the Bay Region not 
cleared nor approved by the LLCA. 
SEC. 29. Damages. - Compensation for any damage to the shoreland, water and aquatic 
resources of Laguna Lake and its tributaries resulting from failure to meet established water and 
effluent quality standards or from such other wrongful act or omission of a person, private or 
public, juridical or otherwise, punishable under the law shall be awarded to the LLDA for water 
quantity/quality control and management projects. 
SEC. 30. Penal and Civil Liability Clause. - Any person, natural or juridical, who shall 
violate any of the provisions of this Act or any rules and regulations promulgated by the 
Authority pursuant thereto shall be liable to imprisonment of not exceeding three (3) years or to a 
fine not less than Fifty Thousand Pesos (Php50, 000.00) or both at the discretion of the court. 
This is without prejudice to the imposition of penalties as may be provided under existing and 
relevant laws, rules and regulations. 
If the violator be a corporation, partnership or association, the officer / officers of the 
organization concerned shall be held liable. 
The LLCA is hereby authorized to initiate, tile, prosecute and defend all suits, actions or 
to pursue separate civil actions for damages resulting from infractions of the provisions of this 
Act, rules or regulations issued pursuant thereto and/or conditions embodied in the clearances or 
permits issued by the Authority 
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SEC. 31. Auditor. - The Chainnan of the Commission on Audit shall be the ex officio 
Auditor of the LLCA. 
For this purpose, he may appoint a representative who shall be the 
Auditor of the LLCA, and the necessary personnel to assist said representative in the 
performance of his duties. 
The Chairman of the Commission on Audit or his authorized representative shall submit 
to the Board soon after the close of each calendar year, an audited statement showing the 
financial condition and progress of the LLCA for the calendar year just ended. 
SEC. 32. Implementing Rules and Regulations. - The LLCA in coordination with the 
proper standing Committees of both the Senate and the House of Representatives 
and other 
concerned agencies and fisherfolk federation shall promulgate the implementing rules and 
regulations (IRR) for this Act, within one (1) year after its enactment: Provided. That the 
rules and regulations issued by other government agencies and instrumentalities for the 
prevention and/or abatement of water pollution 
not inconsistent with this Act shall 
supplement the rules and regulations issued by the LLCA pursuant to the provisions of this Act. 
SEC. 33. Repealing Clause. - Republic Act No. 4850 as amended, Presidential Decree 
No. 813 and Executive Order No. 927 and all laws, orders, issuance, rules and regulations 
inconsistent herewith are hereby repealed. 
SEC. 34. Separability Clause. - If any provision of this Act is declared unconstitutional, 
the same shall not affect the validity and effectiveness of the other provisions hereof 
SEC. 35. Effectivity. - This Act shall take effect fifteen (15) days following its 
publication in at least two (2) national newspapers of general circulation. 
Approved. 
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