L3th CONGRESS OF THE REPUBLIC ) 
OF THE PHILIPPINES 
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First Regular Session 
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JUL -6 
A11 :4 1 
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Introduced by Senator Ralph G. Recto 
Explanatory Note 
The Deparment of Environment and Natural Resources (DENR) issued a 
Memorandum Order dated August 18, 1998 mandating the Natural Resources Development 
Zorporation (NRDC), the marketing arm of the DENR, to conduct public bidding on all 
zonfiscated forest and mineral products donated to it by the DENR. Memorandum Order 
No. 36, Series of 1988, issued by the same Department prohibits persons from whom the 
forest products were confiscated from participating in the NRDC-sponsored public bidding. 
However, this prohibition is often blatantly ignored. 
Illegal loggers are able to bid and 
Dbtain the timber and other forest products originally confiscated from them. 
This bill seeks to correct this anomalous situation by prohibiting the DENR and the 
NRDC from conducting a public auction on all seized and confiscated illegally cut, gathered, 
removed, and possessed logs, timber, flitches and other forest products. 
Instead, these 
should be apportioned to the local government unit (LGU) with jurisdiction over the origin 
3r area where these were confiscated. 
This scheme is proposed in order to benefit the 
LGU's respective communities by identifying the priority projects where the logs/lurnber 
shall be used. 
These will be distributed according to priority, enhancing the delivery of 
education, housing and infrastructure projects in the territorial jurisdiction of the LGU 
concerned. 
Thus, this system will not only motivate LGUs to participate more vigorously in the 
anti-illegal campaign of the government but wiU also help ease the problem of securing 
lumber for infrastnicture projects faced by many LGUs. 
In view of the foregoing, appr 
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AN ACT 
Introduced by Senator Ralph G. Recto 
PROVIDING FOR A SYSTEM OF DISPOSITION OF SEIZED/CONFISCATED 
ILLEGALLY CUT, GATHERED, REMOVED, AND POSSESSED LOGS, 
LUMBER, FLITCHES AND OTHER FOREST PRODUCTS AND FOR OTHER 
PURPOSES 
Be it enacted b~ the Senate and House of Representatiues ofthe PhiL$pines in Congress assembLecf 
SECTION 1. 
Declaration ofPohy. - It is the policy of the State to make sound 
decisions with respect to the utilization and conservation of natural resources to prevent 
environmental degradation and sustain for this and succeeding generations the natural 
wealth of the nation and to ensure that the country's natural resources axe harnessed to their 
full potential 
SEC. 2. 
Coverage. - This Act shall apply to all seized/confiscated illegally cut, 
gathered, removed,, and possessed logs, lumber, flitches and other forest products or those 
found abandoned within forest areas or elsewhere. 
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SEC. 3. 
Prohibition $Auctioning Seixedl Conjscated IlLegalb Cut, Gathered, Removed, or 
The public auction by the 
Posmsed Lgs, Lumber, Fhtches and Other Forest Products. - 
Department of Environment and Natural Resources (DENR) through the Natural 
Resources Development Corporation (NRDC) of seized/confiscated illegally cut, gathered, 
removed, or possessed logs, lumber, flitches and other forest products is hereby prohlbited. 
SEC. 4. D)prition and Use of ConJscated Forest Products. - The DENR shall dispose 
and apportion the $eized/confiscated illegally cut, gathered, removed, and possessed logs, 
lumber, flitches and other forest products in .the following manner: 
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(a) Fifty Percent (50%) of the total volume shall accrue, share and share 
alike, to the province, municipality or component city having jurisdiction 
over the area of origin of such products: PromZed, however, That the whole 
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fifty percent (50%) shall accrue to the independent city having 
jurisdiction over the area of origin; 
@) Twenty-five percent (25%) of the total volume shall acaue to the 
municipality or city where the forest products were seized/confiscated; 
(c) Twenty-five percent (25yo) of the total volume shall be donated to. 
neighboring provinces, cities or municipalities within the region which 
have no such resource. 
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Only such Arovinces, cities or municipalities that have no record of any infraction of 
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environmental laws) rule's or regulations shall benefit from this Act. 
Seized/conescated or illegally cut, gathered, removed, and possessed logs, lumber, 
flitches, and other forest products that are subject of a pending litigation may be disposed of: 
Provided, That the appropriate bond shall be deposited with the court having jurisdiction over 
the subject of the litigation. 
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Said forest products shall be exclusively used by the recipient local government unit 
(LGU) in the following order of priority: 
(1) for the use of state colleges and universities; 
(2) for the use of other public schools; 
(3) for socialized housing; 
(4) for the construction and rehabilitation of provincial/city and municipal 
bridges; and 
(5) for other infrastructure projects. 
SEC. 5. Efect ofViohii0n. - (a) Any public auction of these confiscated products 
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made in violation hereof shall be null and void and all acts made pursuant thereto on any 
right or benefit derived or arising therefrom shaU be without any force and effect; 
@) Any person violating this Act shall, upon conviction be punished by a fine of not 
less than Ten thousand pesos ~10,000.00) 
nor more than One hundred thousand pesos 
(PlO0,OOO.OO) or kprisonment from six (6) months and one (1) day to six (6) yews or both 
such fine and imprisonment at the discretion of the Court; 
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(c ) If the act or omission penalized by &IS 
Act be committed by an association, 
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partnership, corporation, or any other institution, its managing directors, partners, president, 
general manager, or other persons responsible for the commission of said act shall be liable 
for the penalties provided for in this Act; 
(d) If the offender is a public officer or employee, he shall be additionally dsmissed 
from the service with prejudice to reinstatement and shall be disqualified from holding any 
elective or appointive office. 
SEC. 6. Implementing &des and Regulations. - The DENR Secretary shall promulgate 
the necessary implementing rules and regulations and shall mobilize all available resources to 
assure the effective implementation of this Act. 
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SEC. 7. Sharabilig clause. - If, for any reason or reasons, any part or provision of 
this Act shall be heid to be unconstitutional or invalid, the other parts or provisions hereof 
which are not affected thereby shall continue to be in full force and effect. 
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SEC. 8. Rkpealing Clause. - All laws, decrees, letters of instruction, executive orders, 
ides and regulations, and other issuances or parts thereof in conflict or inconsistent with 
this Act are hereby repealed or modified accordingly. 
SEC. 9. Efectzuig. -This Act shall take effect upon its approval. 
Appmved, 
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