· . 
FIFTEENTH CONGRESS OF THE REPUBLIC 
OF THE PHILIPPINES 
First Regu/ar Session 
SENATE 
Senate Bill No. 687 
) 
) 
) 
INTRODUCED BY SEN. JINGGOY EJERCITO ESTRADA 
EXPLANATORY NOTE 
.; I 
This measure is a consolidated/substituted bill drafted by the Committees 
on Government Corporations and Public Enterprises, Economic Affairs, Ways 
and Means and Finance during the 14th Congress. 
After more than four (4) decades since the enactment of Republic Act No. 
4850 entitled '}:In Act Creating the Laguna Lake Development Authority, 
Prescribing its Powers, Functions and Duties, Providing Funds Therefor and for 
Other Purposes" in 1966, there is a need to amend and strengthen this law to 
make it more responsive and effective in view of the social, economic and 
political development in the country. 
Laguna de Bay is one of the important water resources in the country. It is 
our largest inland body of water which covers 14 cities and 17 municipalities 
located within the Provinces of Laguna and Rizal and parts of Batangas, Cavite, 
Quezon and Metro Manila. There are about 28,000 fisherfolk families that 
depend on it for livelihood. The water resources of the lake and its tributary rivers 
are used for irrigation, power generation, recreation, domestic water supply and 
navigation, among others. 
However, the protection and conservation of Laguna de Bay is greatly 
affected by unrestrained population growth, deforestation, land conversion, 
extractive fisheries and rapid urbanization. These factors have led to problems 
relating to solid waste management, sanitation and public health, congestion of 
shoreland areas, rapid siltation and sedimentation, unmitigated input of domestic, 
agricultural and industrial wastes, flooding and loss of biodiversity and water 
quality 
This bill seeks to strengthen the policy-making and regulatory powers of 
the LLO.4\ to realize its vision of a self-sufficient and highly dynamic integrated 
water resource management authority, with competent and professional 
personriel who take the lead towards the sustainable development of Laguna de 
Bay .. 
In view of the foregoing, approval of this bill is earnestly sought. 
Senator 


FIFTEENTH CONGRESS OF THE REPUBLIC 
OF THE PHILIPPINES 
First Regular Session 
SENATE 
Senate Bill No._6_B_7_ 
) 
) 
) 
, II 
JUL -7 P 3 :09 
INTRODUCED BY SEN. JINGGOY EJERCITO ESTRADA 
AN ACT 
TO STRENGTHEN THE LAGUNA LAKE DEVELOPMENT AUTHORITY 
(LLDA), REPEALING FOR THIS PURPOSE REPUBLIC ACT NO. 4850, AS 
AMENDED, OTHERWISE KNOWN AS THE LAGUNA DEVELOPMENT 
AUTHORITY ACT OF 1966, AND FOR OTHER PURPOSES 
Be it enacted by the Senate and House of Representatives of the Philippines in 
Congress assembled: 
SECTION 1. Short Title. - This Act shall be known as the "Laguna Lake 
Development Authority Act of 2010. " 
SEC. 2. Declaration of Policy. - It is hereby declared the policy of the 
State to promote and develop 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 as its focal point whose water resources must be 
systematically managed and protected for various uses. 
For this purpose, the State hereby adopts an integrated water resources 
management (IWRM) approach, using the lake's watersheds as planning units to 
interconnect and integrate its various ecosystems pursuant to Art. II, Sec. 16 of 
the 1987 Constitution: "The State shall protect and advance the right of the 
people to a balanced and healthful ecology in accord with the rhythm and 
harmony of nature." 
In accordance with the IWRM approach, any development program in the 
region shall always consider sustainable environmental management and the 
prevention of any ecological harm, resource deterioration and pollution to allow 
,the lake to realize its full potentials including, among other uses, as a major 
resource in fish production of national importance. Under Article XIII, Section 7 of 
the 1987 Constitution, the State is mandated to protect, develop, and conserve 
communal marine and fishing resources, both inland and offshore. 
SEC. 3. Definition of Terms. - As used in this Act: 
1) Laguna Lake or Laguna de Bay. - shall refer to 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) - is a process that 
promotes'the coordinated development and management of water, land and 
related resources in order to maximize the resultant economic and social welfare 
in an. equitable manner without compromising the sustainability of vital 
ecosystems. 
3) Watershed - is the term used to describe the geographic area of land 
that drains water to a shared destination or to an area of land that drains down 
slope to the lowest pOint. The water moves through a network of drainage 
pathways, 
both 
underground 
and 
on 
the 
surface. 
Other terms 
used 
interchangeably with watershed include drainage basin or catchment basin. 
4) Environment - means 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 affect directly or indirectly the existence of human life and other life forms in 
a specific area. 
5) Shoreland / Lakeshore areas / Buffer Zone - that part of the lake along 
tire lakeshore lying at elevation 12.50 meters 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/nuisance and 
for identifying and defining development areas or zones. 
6) Ground water - means sub-surface water that occurs beneath the water 
table in soils and rocks, or in geological formations. 
7) Aquaculture - fishery operations involving all forms of raising and 
culturing fish and other fishery species in fresh, brackish and marine water areas. 
8) Aqua structure - refers to a structure enclosing a particular area in the 
lake which makes use of poles usually made of bamboo or anahaw and 
surrounded by nets, fastened by a weight of sinkers embedded in the lake bed; 
may also refer to a fish cage which is an inverted mosquito net fastened to poles 
usually made of bamboo or such other structures used for fish or aquatic 
resource culture. 
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 or an 
industrial plant, including domestic, commercial and recreational facilities. 
10) Pollution - shall mean 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 will be likely to 
create or to render such resources harmful, detrimental or injurious to public 
health, safety or welfare or which will adversely affect their utilization for 
domestic, commercial, industrial, agriculture, recreational or other 
legitimate purposes. 
SEC. 4. Laguna Lake Region. - For 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 automatically form part of the Laguna Lake 
Region. 
SEC. 5. Laguna Lake DevelopmentAuthority. - Pursuant to the original 
mandate of Republic Act No. 4850, as amended, the Laguna Lake, Development 
Authority, hereinafter referred to as the LLDA, shall pursue the ecologically 
sustainable development of the Bay Region. It shall maintain its principal office at 
a convenient place within the region, and such branch offices in other places 
within the Bay Region as are necessary for the proper conduct 
of its business. 
SEC. 6. Powers and Functions. - The LLDA shall have the following 
powers and functions: 
(a)' Periodically conduct, monitor and update a comprehensive survey of 
the Bay'Region, including its socio-economic conditions, water quantity and 
quality· in the lake proper and all its major tributary rivers, irrigation, water supply, 
transport route, reservoir of floodwater, hydroelectric and other power potentials, 
scenic and tourist spots, state of its watersheds, the tributary rivers and other 
physical and natural resource potentials on the basis of which it shall prepare a 
sustainable regional development master plan. 
All concerned public and private agencies shall provide the LLDA the 
necessary data for the purposes of the said survey; 
(b) Develop a long-term program to attract more private-sector-driven 
investments into the Bay Region in consonance with a regional master plan 
which shall be formulated in consultation with stakeholders, concerned 
government agencies, local government units (LGUs), and civil society in the Bay 
Region; 
(c) Review all plans, projects and programs that relate to the development 
of the Bay Region, proposed and submitted by LGUs, public corporations and 
private persons or corporations to ensure that they conform to the environmental 
standards prescribed by the LLDA and other similar laws; 
The LLDA shall collect reasonable fees as may be determined by the 
Board for the processing of such plans, programs or projects. Any future 
expansion of such plans, programs, or projects shall be again subject to LLDA 
review and to payment of additional fees as may be further determined by the 
LLDA Board; 
(d) Engage, whether by itself or in cooperation with private persons or 
entities, in agriculture, commerce, industry, or to organize, finance, invest in, and 
operate subsidiary corporations which are in the nature of new ventures or are 
clearly beyond the scope, capacity, or interest of private enterprises by reason of 
geography, technical or capital requirements, returns on investment and risk and 
when public interest so requires; 
(e) Implement infrastructure projects such as flood control, solid waste 
management, wastewater and sewerage, water supply, roads, ports, irrigation, 
housing, leisure parks and related works, within the context of its development 
master plan, including the readjustment, relocation, or resettlement of human 


population within the Bay Region that may be deemed necessary and beneficial 
in pursuit of the LLDA mandate. Should any of these projects be financed wholly 
or in part by the LLDA, it shall have authority to collect reasonable fees and tolls 
from users or beneficiaries to recover costs of construction, operation and 
maintenance of the projects. For infrastructure projects that are in the nature of 
social overhead capital projects, it shall be entitled to receive the corresponding 
financial assistance from the government; 
(f) Undertake a massive information campaign among the stakeholders, in 
close coordination with the LGUs and other government agencies within the 
Laguna de Bay Region to promote better understanding of the importance of 
environmental protection and conservation of the Laguna Lake and its 
watersheds; 
(g) Implement dredging and/or reclamation projects in close coordination 
with the Philippine Reclamation Authority (PRA)/Public Estates Authority (PEA) 
and LGUs concemed with the end-in-view of facilitating the approval thereof by 
the PRAIPEA pursuant to existing laws, executive orders and other issuances 
which may be necessary to accomplish the aims and purposes of the LLDA; 
Provided, That the land so reclaimed shall become the property of the national 
government through the LLDA; 
(h) 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/pilot fish production 
such as the propagation of ornamental fish and similar aquaculture projects 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 its fishery 
resources for the socio-economic amelioration of small fisher folk, improvement 
of their communal fishing grounds, sustainable aquaculture development and 
operation. In hiring laborers for fishery-related projects, there shall ,be preference 
for qualified shore land residents; 
(i) Regulate the use and occupancy of shoreland areas by enjoining LGUs 
within the Bay Region to establish watershed management councils or wetlands 
whenever suitable and consistent with LLDA policies; 
U) 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 LLDA; 
(k) Enter into agreements with LGUs, governmental agencies and 
corporations and the private sector for the supply, treatment, distribution and 
marketing of such water; 
(I) 
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; 
(m) 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; 
(n) 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 when necessary and inspect 
the construction and maintenance of sewage works and industrial waste disposal 
systems for compliance to clearance and/or permit conditions; 
(0) Require all projects or activities in or affecting the Laguna de Bay 
Region to secure Environmental Compliance Certificates (ECCs) 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 aqua structures, aquaculture development, dredging/reclamation 
and similar or related activities and to impose necessary safeguards for lake 
water quantity and quality control and management and to collect necessary fees 
for said activities and projects; 
(p) 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 LLDA may impose reasonable fees and other similar 
charges for the issuance or renewal of all permits herein required; 
(q) Issue orders or decisions to compel compliance with the provisions of 
this Act and its implementing rules and regulations after proper notice and 
hearing; 
(r) Make, issue, alter, or modify orders or decisions, after notice and 
hearing, requiring the discontinuance of pollution specifying the conditions and 
the time within which such discontinuance must be accomplished; 
(s) After due notice and hearing, revoke, suspend or modify any clearance 
and/or permit issued under this Act whenever the same is necessary to prevent 
or abate pollution; 
(t) Deputize or request 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 LLDA; 
(u) Authorize its bona fide representatives at all reasonable times to enter 
any public and private property devoted to agricultural, commercial and industrial 
use for the purpose of inspecting and investigating conditions relating to pollution 
and existing and/or imminent environmental danger; 
(v) Exercise such powers and perform such other functions as may be 
necessary to carry out its duties and responsibilities under this Act. 
SEC. 7. 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 LLDA 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 
LLDA shall not invest its funds in any high risk debt instruments issued without 
recourse to commercial banks or investment houses as well as in any highly 
speculative stocks; 
U) Perform any and all acts which a corporation, co-partnership or juridical 
person is authorized to perform under the existing laws or which may be enacted 
hereafter; 
(k) Provide economic incentives to encourage the private sector to fully 
subscribe to its shares of stock; 
(I) 'Issue such other rules and regulations as may be necessary from time 
to time to achieve the purposes of this Act, the same to take effect thirty (30) 
days after its publication in a newspaper of general circulation. 
SEC. 8. Board of Directors. - The LLDA 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 Natural Resources, Chairman 
2) General Manager, LLDA , Vice-Chairman 
3) Governor, Province of Laguna, ex officio 
4) Governor, Province of Rizal, ex officio 
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 
11) Representative of the Rizal fisherfolk 
The representatives of the Laguna fisher folk and the Rizal fisherfolk shall 
be appointed by the President of the Philippines to be chosen from among the 
nominees recommended by the Laguna Governor and the Rizal Governor, 
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. 9. Powers and Functions. - The Board of Directors shall exercise 
, 
the following powers and functions: 
a) Prescribe policies, rules and regulations to govern the conduct of 
business of the LLDA including the procedures of the Authority; 
b) Upon the recommendation of the General Manager, approve the 
LLDA's organizational and administrative structures and corresponding staffing 
pattern as may be deemed necessary: fix their reasonable compensation, 
allowances and other benefits in accordance with the salary standardization law; 
prescribe their duties and establish such methods and procedures a may be 
necessary to insure the efficient, honest and economical administration of the 
provisions and purposes of this Act; Provided, however, That all personnel of the 
LLDA below the rank of Assistant General Manager shall be appointed by the 
General Manager; Provided, further, That all personnel appointed by the General 
Manager, except those below the rank of Department 11eads, and others of 
comparable rank, shall be subject to the confirmation by the Board; Provided, 
further, That the personnel of the LLDA shall be selected only from civil service 
eligibles and be subject to civil service rules and regulations; 
c) Upon the recommendation of the General Manager, to approve the 
annual and supplemental budget of receipts and expenditures of the LLDA, and 
to authorize such operating and capital expenditures and disbursements of the 
LLDA as may be necessary or proper for the effective management, operation 
and administration of the LLDA; 
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 Bay Region stakeholders towards a beUer considered 
formulation of LLDA plans and policies; and 
e. Perform such other functions as may be necessary to carry out the proviSions 
ofthis Act. 
SEC. 10. Board Meetings. - The Board shall meet at least once a month. 
SEC. 11. Per Diems. - The members of the Board shall each receive per 
diem at a rate in accordance with existing rules and regUlations: Provided, 
however,' that the total per diem collected each month shall not exceed the 
equivalElnt per diem for four (4) meetings. 
SEC. 12. Sinking Fund. - A sinking fund shall be established in such 
manner that the total annual contribution thereto accrued at such interests as 
may be determined by the Board of Directors as confirmed by the stockholders 
representing a majority of the subscribed capital stock outstanding and entitled to 
vote, shall be sufficient to redeem at maturity the bonds issued under this Act. 
Such funds shall be under the custody of the treasurer of the authority 
who shall invest the same in such manner as the Board of Directors may direct; 


charge all expenses of investment to said sinking fund, and credit the same with 
the interest on investment and other income belonging to it. 
SEC. 13. General Manager; Powers and Functions. - The General 
Manager shall be the Chief Executive Officer of the LLDA. 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 objectives 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 LLDA; 
d) Appoint all officials and employees of LLDA 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; 
e) Render an annual report to the Board and various stakeholders 
regarding the operation of the LLDA, including its latest financial statement; 
f) Represent the LLDA in all dealings with 'offices, agencies and 
instrumentalities of the government and with all persons and other entities, public 
or private, domestic and foreign; and 
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. 14. Qualifications of the 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 is of unquestioned integrity and competence. 
SEC. 15. Tenure of Office of the 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. 16. Compensation. -
The General Manager shall receive 
compensation at rates in accordance with the salary standardization law. 
SEC. 17. Management Structure. - In carrying out the activities of the 
LLDA, 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 functions as the General Manager may prescribe and/ 
or delegate and shall act as the General Manager in his/her absence or during 
his/her temporary incapacity of and/or 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) Corporate Legal Affairs Department which shall provide legal advice 
and support to all the corporate units on the legal implications of the various 
undertakings of the Authority and divided into Litigation Division, and Research 
and Documentation Division; 
b) 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, 
generatiol'l 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. 
e) Integrated Water Resources Management Services Department which will 
serve as the main technical arm of the Authority and shall integrate the functions 
of lake basin management and development. It shall oversee the management of 
the Laguna Lake and its river systems including the shore lands. 
(f) Environmental Protection Department which will manage all the environmental 
regulatory functions of the Authority like clearance/permits and licensing, 
monitoring and surveillance, enforcement and adjudication and environmental 
quality compliance. 
The Board shall periodically review the appropriateness of the existing 
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 LLDA's mandate as herein provided. Any proposed change in the 
organizational structure of the Authority shall be subject to the approval of the 
President of the Philippines. 
SEC.18. Annual Fees. - The LLDA 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 government agencies and LGUs 
as follows: thirty-five percent (35%) of the fish pen fee goes to shore land LGUs, 
five percent (5%) goes to the Project Development Fund and the remaining sixty 
percent (60%) shall be retained by the LLDA. 
SEC. 19. Capitalization and Financing. - The LLDA shall have an 
, 
authorized capital of Seven Hundred Million Pesos (P700,000,000). The 
authorized capital stock of Seven Hundred Million Pesos (P700,000,000) shall be 
divided into Seven Million (7,000,000) shares of stock with a par value of One 
Hundred Pesos (P100) per share. The National Government shall subscribe to 
Four Million Two Hundred (4,200,000) shares, the province of Laguna to Seven 
Hundred Thousand (700,000) shares, the province of Rizal to Seven Hundred 
Thousand (700,000) shares, and the balance of One Million Four Hundred 
Thousand (1,400,000) shares shall be open for subscription to 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) 4,900,000 ordinary shares (voting); and 
2) 2,100,000 preferred shares (non-voting). 
SEC 20. Funding. - The amount necessary to subscribe and pay for the 
remaining 


shares of the national government to the capital stock of the LLDA shall be 
included in the 
annual General Appropriations Act. For LGUs, the funds shall be taken from' their 
internal 
revenue allotment and other local funds. 
SEC. 21. Creation of LLDA Environmental Adjudication Panel. - For 
the purpose of effectively carrying out the quasi-judicial powers of the Authority 
within the Bay Region, the LLDA Environmental Adjudication Panel (LEAP) is 
hereby created to be composed of a Chairman 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, LLDA poliCies, rules and regulations. Any decision, 
order or resolution must be concurred in by the majority of the panel and duly 
approved by the General Manager. 
, 
The Corporate Legal Affairs Department shall serve as Secretariat of the 
LEAP .. 
SEC. 22. 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 LLDA. 
The extent of operational supervision and control by the 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 (RA 7160). The LLDA Board, the local government 
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. 23. Exemption from Tax. - The Authority shall be exempt from all 
taxes, licenses, fees, imposts, charges, costs and duties except real property tax 
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 government 
agencies and instrumentalities. Such exemption shall include any tax or fee 
imposed by the government on the sale, purchase or transfer of foreign 
exchange. All notes, bonds, debentures and other obligations issued by the 
Authority shall be exempt from all taxes both as to principal and interest. 
SEC. 24. Fines and Penalties. - The LLDA is authorized to impose 
administrative fines and other penalties it may deem reasonable and appropriate 
within the bounds of existing law on the same or similar offenses as determined 
and approved by the Board for non-compliance with permit conditions and for 
undertaking development activities without clearance/permit from the LLDA 
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 LLDA. 
SEC. 25. Damages. - Compensation for any damage to the shore land, 
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. 26. 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 (P50,000.00) 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 LLDA is hereby authorized to initiate, file, 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. 
SEC. 27. Auditor. - The Chairman of the Commission on Audit shall be 
the ex officio Auditor of the LLDA. For this purpose, he/she may appoint a 
representative who shall be the Auditor of the LLDA, and the necessary 
personnel to assist said representative in the performance of his/her duties. 
The Chairman of the Commission on Audit or his/her 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 
LLDA for the calendar year just ended. 
SEC. 28. Implementing Rules and Regulations. - The LLDA in 
coordination with the proper standing Committees of both the Senate and the 
House of Representatives and other concerned agencies shall promulgate the 
implementing rules and regulations (IRR) for this Act, within six (6) months 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 LLDA pursuant to the provisions of this Act. 
SEC. 29. 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. 30. 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. 31. Effectivity. - This Act shall take effect fifteen (15) days following 
its pUblication in at least two (2) national newspapers of general circulation. 


Approved,