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

NINETEENTH CONGRESS
First Regular Session

House Bill No. 223

Introduced by Representative GERALDINE B. ROMAN

EXPLANATORY NOTE

The Regalian Doctrine asserts that all-natural resources belong to the State. With the
exception of agricultural lands, all forms of natural resources cannot be alienated. While
agricultural lands may be the subject of transfer actions, the exercise of the attributes of
‘ownership over such lands is limited by law. The use of property bears a social function and
this is emphatically asserted in the paramount law. Article XIII, Section 4 of the 1987
Constitution of the Republic of the Philippines mandates that the State shall carry out an
agrarian reform program founded on the right of farmers and regular farmworkers, who are
landless, to own directly or collectively the lands they till or, in the case of other
farmworkers, to receive a just share of the fruits thereof. The ownership, use, and disposition
of agricultural lands is not just a matter of property rights. It goes beyond agricultural
productivity or food sufficiency. It is about social justice.

While the Constitutional mandate on agrarian reform is clear, the actions of the Government
is not unambiguous.

‘The agrarian reform program provides for stock distribution as an option to the landowners in
lieu of actual land distribution. The practice not only dilutes the concept of an authentic
agrarian reform program. It negates it. The farmer beneficiary ends up as a mere stockholder
subject to the manipulative control of the governing body of a hacienda corporation, The
farmer beneficiary is also vulnerable to the dictates of an agrarian reform cooperative. A
cooperative is viewed under the law as enjoying the status of an agrarian reform beneficiary.
Thus, there are cooperatives which will argue that expulsion of a member from the
‘cooperative results in the removal of that beneficiary from the program.

‘The beneficiaries are made to pay for their awarded lands under a thirty-year amortization
schedule and subject to a six percent annual interest. The arrangement ignores the continuing
need to emancipate the Filipino farmer from the bondage to the soil. It cruelly implies that the
Filipino Farmer, after being subjected to centuries of oppression, has not yet paid the price
for the land he has tilled. It degrades the agrarian reform program as a mere purchase on


installment program. It loses sight of the true essence of the program. It is not a mere transfer of
ownership of land subject to a monetary consideration. It is about transformation of the serf to
master.

‘The agrarian reform program has been called a “revolutionary form of expropriation.” However,
program implementation has been seen subjected to a deadline. This revolution was supposed to
adhere to a schedule. Thus, the issuance and service of the Notice of Coverage (NOC) to the
landowner, which is the first legal step to cover the landholding, came to a halt on 30 June
2014. This is despite the failure of the Presidential Agrarian Reform Council (PARC) to
perform its supposed statutory obligation to craft the blueprint to ensure that the program is
fully implemented within the five-year period leading to the deadline. There is a simple
explanation for such failure. The PARC was never convened. It was in hiatus from 2006 to
2016.

The full implementation of the Agrarian Reform Program came to a halt with the advent of the
2014 deadline. This is despite the fact that more than sixty thousand hectares of agricultural
lands are still to be covered under the program through the issuance of the NOC. This is over
and above the agricultural landholdings covering 561,000 hectares which have cases or
proceedings under the program prior to the deadline of 30 June 2014. These cases or
proceedings are not covered by the said deadline.

In addition to the deadline imposed in the issuance and the service of the NOC which decreased
the area available for acquisition and distribution, a large area of agricultural lands has also been
shut out of the program because such parcels are currently owned by government agencies and
instrumentalities. These parcels of land remain with the government despite the fact that they
are no longer being actually, directly, and exclusively used for the public purpose for which
such lands have been reserved. There have been several executive orders issued in the past that
order the transfer of these agricultural lands to the DAR for acquisition and distribution but to
no avail.

‘The implementation of the Agrarian Reform Program cannot be seen as successful or complete
until and unless adequate support services are given to the Agrarian Reform Beneficiary (ARB).
However, the support services available to ARBs under the current law is limited to land
surveys, titling, access to credit, infrastructures, services related to agrarian reform bonds,
research and education and other related forms of assistance. The current law ignores support
services which are directly needed by the family. Support under the Family Code is everything
that is indispensable for sustenance, dwelling, clothing, medical attendance, education, and
transportation. An ARB should also be assisted by the State in ensuring that the needs of the
families are immediately or simultaneously addressed as soon as the farmer or farm worker is
enrolled under the program. There is reason to believe that a significant number of ARBs
resorted to illegally leasing or selling their awarded lands to businessmen or to the original
haciendero out of the desperate need to raise funds for the support of the family.

The policy on agrarian reform is to encourage the landowner to use the amount received as just
compensation from the State as part of his or her capital for an industrial venture. The expected
surge in industrialization fueled by the efforts of the landowners to transfer their capital and
invest it in other productive pursuits is expected to stimulate national development. In a parallel
movement, we see the ARB as the owner of the land he or she tills earning income as a result of
his or her efforts to make the awarded land productive. The ARB as a productive member of
society becomes a partner of the former landowners in national development.


But this partnership is difficult to achieve. The law fails to provide a definite standard and
formula for the determination of the just compensation of the property. The initial and
preliminary determination of just compensation due a landowner before the Land Bank of the
Philippines (LBP) and the DAR Adjudication Board (DARAB) immediately fails because the
award does not even approximate the fair market value of the landholding. The Special
Agrarian Reform Courts (SACs) are left to formulate on their own what they deem as just
compensation. Landowners instead opt to elevate the findings of the SAC to the Court of
Appeals and/or the Supreme Court. The latest jurisprudence points towards the identification
of a common formula for all SACs in the determination of just compensation.

There are success stories in the implementation of the Comprehensive Agrarian Reform
Program (CARP). After all, a total of 4.79 million hectares of agricultural lands have been
covered and a total of 2.84 million ARBs have received their Emancipation Patents or
CLOAS under the Program since the Comprehensive Agrarian Reform Law became effective
on 15 June 1988,

The status of the CARP has been viewed as one which has already been terminated as a result
of the deadline for the issuance of the NOC. Yet it remains as a constitutionally-mandated
program.

Agriculture continues to be one of the weakest links in our economy. A higher incidence of
poverty is prevalent in the farming sector particularly among the landless farmers and the
farm workers.

Much has been said and done about the agrarian reform program in the Philippines.

Much is still to be said. Much is still to be done.

The call of the times is not to end the Agrarian Reform Program. The challenge of the times
is to ensure its continuation as an integral component of our national development and social
justice programs. Mindful of the gaps and the inadequacies of the previous manner of

program implementation, we commence the second phase of Agrarian Reform.

In view of the foregoing, the passage of this bill is being urgently sought.

7 GERALDINE B. ROMAN


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

NINETEENTH CONGRESS
First Regular Session

House Bill N6. 223

Introduced by Representative GERALDINE B. ROMAN

AN ACT
PROVIDING FOR THE COMPLETION OF THE COMPREHENSIVE
AGRARIAN REFORM PROGRAM, INSTITUTING FOR THE
PURPOSE ITS SECOND PHASE, GIVING SUBSIDY IN THE
ACQUISITION AND DISTRIBUTION OF AGRICULTURAL LANDS
TO BENEFICIARIES AND APPROPRIATING FUNDS THEREFOR

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

SECTION |. Agrarian Reform’s Second Phase. — The second phase of
the comprehensive agrarian reform program shall be instituted which includes
the distribution of fully-subsidized agricultural lands to qualified agrarian
reform beneficiaries and they are no longer required to pay any amortization for
their awarded lands. The beneficiaries shall benefit from the government
subsidy to the extent of the unpaid amortizations and interest charges which are
due.

SEC. 2. Distribution Preference. — Agrarian reform beneficiaries who
have completely paid the thirty-year amortization schedule and interest charges

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shall be given preference in the award of the new package of support services
from the National Government which includes initial capital upon issuance of
the Certificate of Land Ownership Award (CLOA), access to credit facilities
and automatic qualification to various support services including availments for
housing, education, and other loans.

SEC. 3. Notice of Coverage in Private Agricultural Lands. — The
Department of Agrarian Reform (DAR) shall issue and serve the Notice of
Coverage to all landowners of private agricultural lands whose ownership
exceeds the five-hectare ceiling imposed by Section 6 of Republic Act (RA) No.
6657, otherwise known as the “Comprehensive Agrarian Reform Law of 1988,”
as amended, including the distribution of individual CLOAs to agrarian reform
beneficiaries, except to retention areas of landowners who exercised such right
under Presidential Decree No. 27, entitled “Decreeing the Emancipation of
Tenants from the Bondage of the Soil, Transferring to Them the Ownership of
the Land They Till and Providing the Instruments and Mechanism Therefor,”
which granted retention areas exceeding five hectares and to landholdings
covered by ancestral domain titles and claims.

For purposes of this Act, private lands which are over 18 percent in slope
and are devoted for agricultural development or where agricultural activity
exists are hereby classified as agricultural, and alienable and disposable, and

shall be placed under the coverage of the agrarian reform program.


Any issue, dispute, or controversy arising from the issuance of the Notice
of Coverage shall be resolved by the DAR subject to existing rules and
regulations, without prejudice to the continuation of the land acquisition and
distribution process despite the pendency of any such issue, dispute, or
controversy.

SEC. 4. Acquisition of Unused Government-Owned Lands. — The DAR
shall issue and serve the “Notice to Proceed with the Acquisition” (NTPA) to all
government agencies, departments, bureaus, offices, and instrumentalities
which own or are in possession of agricultural lands that are no longer actually,
directly, and exclusively used or necessary for the purpose for which such lands
have been reserved, including all patrimonial lands of the State which are
agricultural or arable and all such lands which are more than 18 percent slope
but are agriculturally developed for the last two (2) years as determined by the
DAR.

For the purpose of this Section, a landholding is deemed actually,
directly, and exclusively used for the purpose of a government agency,
department, bureau, office, or an instrumentality concerned when it is
immediately occupied, utilized, and applied for the purpose for which it was
reserved or acquired,or when the land is necessary for the attainment of the
mandate or the purpose of the said department, bureau, office, or instrumentality
by virtue of a presidential proclamation, executive fiat or legislative grant, or

otherwise acquired through other modes of transferring ownership.


Any issue, dispute, or controversy arising from the issuance of the NTPA
shall undergo the process prescribed under Joint DOJ-DAR Administrative
Order No. 7, Series of 2008. In the event that the settlement is not reached, the
affected agency may file a verified petition opposing the coverage before the
Secretary of Department of Agrarian Reform.

SEC. 5. Determination of Just Compensation Due to Landowners. —
The just compensation to the landowner shall be broken down into the
following, regardless of the area of the landholding acquired from the
landowner:

(a) 30% Cash, and

(b) 70% Agrarian Reform Bond with interest aligned with 91-day
Treasury Bills rate.

The just compensation shall be initially determined by the DAR, with the
technical assistance of the Land Bank of the Philippines which will devise a
valuation guideline in accordance with Section 17 of RA 6657, as amended.
Just compensation should be the fair market value at the time of the taking but
the amount to be paid must be the present value of the amount that should have
been paid taking into consideration inflation, among other pertinent factors. In
the event that the amount is rejected by the landowner, an original action for the
determination of the amount of the just compensation may be commenced
within one (1) year from receipt by the landowner of the Notice of the Initial
Determination by the DAR before the proper Regional Trial Court designated as

“f


Special Agrarian Court: Provided, That the filing and pendency of such an
action shall not adversely affect the registration of the CLOA by their respective
agrarian reform beneficiaries.

Unpaid taxes incurred by the landowner relative to the land subject of a
CLOA shall not be included, or added to, or charged against the just
compensation contemplated in this Section.

SEC. 6. Department of Agrarian Reform Exclusive Jurisdiction. — The
DAR exercises exclusive jurisdiction in cases involving agrarian matters or
disputes which shall refer to controversies involving any of the following:

(a) Tenurial arrangements, whether leasehold, tenancy, stewardship or
otherwise, over lands devoted to agriculture;

(b) Dispute concerning farmworkers’ associations or representation of
persons in negotiating, fixing, maintaining, changing, or seeking to arrange
terms or conditions of such tenurial arrangements;

(c) The terms and conditions of transfer of ownership from landowners
to farmworkers, tenants and other agrarian reform beneficiaries, whether the
disputants stand in the proximate relation of farm operator and beneficiary,
landowner and tenant, or lessor and lessee;

(d) Cases when the DAR exercises quasi-judicial power as provided
under Section 50 and Section 50-A of RA 6657, as amended;

(e) Final resolution of issues, disputes, and controversies arising out of

Agribusiness Venture Arrangements (AVAs); and


(f) Any matter, dispute, or controversy arising from agrarian reform
issues and implementation of agrarian reform programs.

Within One hundred eighty (180) days after the effectivity of this Act,
any Court shall, without prejudice, dismiss any case not yet submitted for
decision or resolution of the main issues involving an agrarian dispute, pending
before their office, and automatically refer the case to the DAR.

SEC. 7. Duty of the Presidential Agrarian Reform Council. — The
Presidential Agrarian Reform Council (PARC) shall conduct a continuing study
to determine the allowable ceiling of ownership for the awarded lands, as well
as for the retention areas in each region taking into consideration the peculiar
features of the land, the nature of the crops and the manner by which the
agricultural activities in the area are being conducted. The PARC shallsubmit its
findings and recommendations to the Congressional Oversight Committee of
the Agrarian Reform (COCAR) for the purpose of amending the statutory
ownership ceiling for awarded lands and for the retention areas.

SEC. 8. Scope of Exemption. — Landholdings which are exempted from
the coverage of the Comprehensive Agrarian Reform Program as provided
under Section 10 of RA 6657, as amended, is supplemented by the inclusion of
landholdings which have been reclassified for any type of use that is not
agricultural are also exempted from the coverage provided that the landholding

has been reclassified before 15 June 1988. The landholding is exempted from


the Comprehensive Agrarian Reform Program when the following conditions
are met:

(a) For lands exempted due to its being used for a public purpose, they
shall remain exempted provided that they continue to be actually, directly, and
exclusively used and found to be necessary for those uses cited under Section
10 of RA 6657, as amended. The exemption grant is revoked once said use has
ceased or is proven to be non-existent;

(b) For lands exempted due to having more than 18 percent slope and
being undeveloped, they shall remain exempted provided that they are not
agriculturally developed, or no agricultural activity exist therein. The exemption
grant is revoked once there is agricultural development in the area; and

(c) For lands exempted for having been reclassified as non-agricultural
before 15 June 1988, they shall remain exempted provided that they areneither
irrigated nor irrigable. The exemption grant is revoked once there is irrigation in
the area, or it is determined that the area is irrigable as certified by the National
Irrigation Administration.

SEC. 9. Scope of Exclusion of Landholdings. — Landholdings which
have been excluded from the Comprehensive Agrarian Reform Program due to
activities such as prawn farming, fish farming, aquaculture, livestock, poultry
and other similar business undertakings shall be placed under the
Comprehensive Agrarian Reform if such activities are no longer the main or
dominant activity therein after due coordination with the Department of

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Agriculture (DA) and in conformity with RA 8435 otherwise known as the
“Agriculture and Fisheries Modernization Act of 1997.”

SEC. 10. Scope of Conversion of Agricultural Lands. — Conversion
grant from the DAR shall be secured even if the agricultural landholding to be
converted for a commercial, residential, or industrial purpose is not an awarded
land or part of the retention area.

If the landholding is within the Strategic Agriculture and Fisheries
Development Zone (SAFDZ), only 5% of the said area is eligible for
conversion.

The maximum of 5% equivalent to the total area determined to be eligible
for conversion to non-agricultural use shall be jointly determined by the DA and
the DAR, subject to existing laws and regulations.

SEC. 11. Exclusion from Qualified Beneficiaries. — Agrarian reform
collective or cooperatives are excluded from the qualified beneficiaries under
the Comprehensive Agrarian Reform Program, without prejudice to the agrarian
reform beneficiaries’ option for co-ownership.

SEC. 12. Support Services to Agrarian Reform Beneficiaries. — The
DAR shall, together with the PARC, ensure that the agrarian reform
beneficiaries receive support services and assistance indispensable for
agricultural productivity, enterprise development, financial literacy, sustenance,
dwelling, clothing, medical assistance, education, and transportation. Any form
of support services rendered by any banking or financial institution for the

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benefit of an agrarian reform beneficiary is considered a form of support under
the agrarian reform program implementation.

This section is without prejudice to the support services available to agrarian
reform beneficiaries from other national government agencies.

SEC. 13. Prohibition on the Issuance of Restraining Order or
Preliminary Injunction. — Except for the Supreme Court, no other court in the
Philippines including those courts designated as Special Agrarian Courts, can
issue any prohibitive or mandatory form of injunction whether preliminary or
final, to affect in any manner any function of the Department of Agrarian
Reform or any stage of the land acquisition and distribution process.

SEC. 14. Illegal Conversion. — The conversion of any agricultural land to
non-agricultural use without approval from the DAR is prohibited and
landowners who violate this provision shall be penalized in accordance with
Section 74 of RA 6657, as amended.

SEC. 15. Congressional Oversight Committee. — The Congressional
Oversight Committee on Agrarian Reform (COCAR) shall continue to perform
the duties and responsibilities as provided under Sections 26, 27, and 28 of RA
9700, entitled “An Act Strengthening the Comprehensive Agrarian Reform
Program (CARP), Extending the Acquisition and Distribution of All
Agricultural Lands, Instituting Necessary Reforms, Amending for the Purpose
Certain Provisions of Republic Act No. 6657, Otherwise, Known as the
Comprehensive Agrarian Reform Law of 1988, as amended, and Appropriating
Funds therefor.”

SEC. 16. Appropriations. — The amount necessary for the initial

implementation of this Act shall be charged against the Agrarian Reform Fund.

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Thereafter, such sum as may be necessary for its continued implementation
shall be included in the annual General Appropriations Act.

SEC. 17. Implementing Rules and Regulations. — Within sixty (60) days
from the effectivity of this Act, the Secretary of Agrarian Reform shall, in
coordination with the Secretary of Environment and Natural Resources,
Secretary of Agriculture, Secretary of National Defense, Secretary of Justice,
Secretary of Budget and Management, Secretary of Interior and Local
Government, Secretary of Public Works and Highways, Secretary of Trade and
Industry, Secretary of Finance, Secretary of Labor and Employment, Secretary
of Social Welfare and Development, Secretary of Human Settlements and
Urban Development, Secretary of National Economic and Development
Authority, Administrator of the National Irrigation Administration, Chairman of
Land Bank of the Philippines, Chairperson of Commission on Higher
Education, Chairperson of National Commission on Indigenous Peoples,
Chairperson of Cooperative Development Authority, Agrarian Reform
Beneficiaries Organizations, and Peoples and Non-Government Organizations
with concentration in agrarian reform and rural development, promulgate the
necessary rules and regulations for the effective implementation of this Act.

SEC. 18. Repealing Clause. — Any provision of RA 6657, otherwise
known as the “Comprehensive Agrarian Reform Law of 1988,” as amended,
and any other law, decree, executive order, or rules and regulations inconsistent
with the provisions of this Act are hereby repealed or modified accordingly.

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SEC. 19. Separability Clause. — If any provision of this Act is declared
unconstitutional or invalid, the provisions not affected shall remain in full force
and effect.

SEC. 20. Effectivity. — This Act shall take effect fifteen (15) days after its
publication in the Official Gazette or in a newspaper of general circulation.

Approved

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