FOURTEENTH CONGRESS OF THE 
)  
REPUBLIC OF THE PHILIPPINES 
) 
Third Regular Session 
) 
9 
SEP -3 PS :06 
SEN~428
S.No. ___ 
Introduced by Senator Richard J. Gordon 
EXPLANATORY NOTE 
Laguna de Bay is the largest inland body of water in the Philippines. Its watershed 
spans 14 cities and 17 municipalities located within the whole province of Laguna and Rizal, 
and parts of Batangas, Cavite, Quezon, and Metro Manila. It is located in the major growth 
corridor of the country. There are about 28,000 fisher folk 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. 
To promote the development of the Laguna de Bay area, the Laguna Lake 
Development Authority (LLDA) was created under Republic Act No. 4850, with the aim of 
promoting the social and economic growth of the surrounding provinces, cities and towns. 
While the LLDA exercises policy and planning, regulatory, coordinative and developmental 
functions, it does not have control over all projects affecting the Laguna de Bay region. 
Overlapping and even conflicting mandates and programs of the many agencies, local 
governments and other entities the LLDA coordinates with have been identified as the 
stumbling block in managing the lake's resource and the intensified conflicts that arise from 
its multiple uses. 
Current problems faced by the LLDA include management of solid waste in the lake, 
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 decline in water quality. 
This proposed measure aims to strengthen the policy-making and regulatory powers 
of the LLDA, in order that it can realize the vision of a self-sufficient and highly dynamic 
integrated water resource management authority, with competent and profeSSional 
personnel who take the lead towards the sustainable development of the Laguna de Bay. In 
view of the foregoing, the passage of this bill is earnestly sought. 
.' 
RICHAR~N 
Senator 


FOURTEENTH CONGRESS OF THE 
} 
REPUBLIC OF THE PHILIPPINES 
} 
Third Regular Session 
) 
9 
SENATE 
S. No. 
3428 
Introduced by Senator Richa'rd J. Gordon 
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 LAKE DEVELOPMENT AUTHORITY ACT OF  
1966, AND FOR OTHER PURPOSES  
Be it enacted by the Senate and the House of Representatives of the 
Philippines in Congress assembled: 
1 
SECTION 1. Short Tif/e. - This Act shall be known as the "Laguna Lake 
2 
Development Authority Act of 2009. JJ 
3 
SEC. 2. Declaration of Policy. ­
It is hereby declared the policy of the State 
4 
to promote and develop Laguna Lake in a sustainable manner along with the 
5 
surrounding areas that comprise its region, hereinafter referred to as the Bay 
6 
Region, with Laguna Lake as its focal point whose water resources must be 
7 
systematically managed and protected for various uses. 
8 
For this purpose, the State hereby adopts an integrated water resources 
9 
management (IWRM) approach, using the lake's watersheds as planning units to 
10 
interconnect and integrate its various ecosystems pursuant to Art. II, Sec. 16 of the 
11 
1987 Constitution: l'The State shall protect and advance the right of the people to a 
12 
balanced and healthful ecology in accord with the rhythm and harmony of nature." 
13 
In accordance with the IWRM approach, any development program in the 
14 
region shall always consider sustainable environmental management and the 
2 


\ 
1 
prevention of any ecological harm, resource deterioration and pollution to allow the 
2 
lake to realize its full potentials including, among other uses, as a major resource in 
3 
fish production of national importance. Under Article XIII, Section 7 of the 1987 
4 
Constitution, the State is mandated to protect, develop, and conserve communal 
5 
marine and fishing resources, both inland and offshore. 
6 
SEC. 3. Definition of Terms. . As us'ed in this Act: 
7 
1) Laguna Lake or Laguna de Bay. - shall refer to that area covered by the 
8 
lake water when it is at the average annual maximum lake level of elevation 12.50 
9 
meters, as referred to a datum 10.00 meters below mean lower low water (M.L.L.W,) 
10 
of Manila de Bay. Lands located at and below such elevation are public lands which 
11 
form part of the bed of said lake. 
12 
2) Integrated Water Resources Management (IWRM) - is a process that 
13 
promotes the coordinated development and management of water, land and related 
14 
resources in order to maximize the resultant economic and social welfare in an 
15 
equitable manner without compromising the sustainability of vital ecosystems. 
16 
3) Watershed· is the term used to describe the geographic area of land that 
17 
drains water to a shared destination or to an area of land that drains down slope to 
18 
the lowest point. The water moves through a network of drainage pathways, both 
19 
underground and on the surface, Other terms used interchangeably with watershed 
20 
include drainage basin or catchment basin. 
21 
4) Environment· means the physical factors of the total surroundings of 
22 
human beings, including but not limited to th'e lakes and other bodies of water, land, 
23 
air, atmosphere, climate, sound, odor, plants, insects, animals, its biological and 
24 
physical, factors, all its life support systems and all other surrounding matters that 
3 


1 
affect directly or indirectly the existence of human life and other life forms in a 
2 
specific area. 
3 
5) Shore/and I Lakeshore areas I Buffer Zone - that part of the lake along tire 
4 
lakeshore lying at elevation 12.50 meters, and below and alternately submerged or 
5 
exposed by the annual or seasonal rising and lowering of the lake levels. This is a 
6 
linear strip of land of approximately 14,000 hectares designed to separate the 
7 
incompatible elements or uses! or to control pollution/nuisance and for identifying 
8 
and defining development areas or zones. 
9 
6) Ground water - means sub-surface water that occurs beneath the water 
10 
table in soils and rocks! or in geological formations.  
11 
7) Aquaculture - fishery operations involving all forms of raising and culturing  
12 
fish and other fishery species in fresh, brackish and marine water areas.  
13 
8) Aqua structure - refers to a structure enclosing a particular area in the lake  
14 
which makes use of poles usually made of bamboo or anahaw and surrounded by  
15 
nets, fastened by a weight of sinkers embedded in the lake bed; may also refer to a  
16 
fish cage which is an inverted mosquito net fastened to poles usually made of  
17 
bamboo or such other structures used for fish or aquatic resource culture.  
18 
9) Effluent - means discharge from' known sources which is passed into a  
19 
body of water or land! or wastewater flowing out of a manufacturing plant or an  
20 
industrial plant including domestic! commercial and recreational facilities,  
21 
10) Pollution - shall mean any alteration of the physical! chemical and  
22 
biological properties of any water! air and land resources of the Philippines or any  
23 
discharge thereto of any liquid! gaseous or solid wastes as will be likely to create or  
24 
to render such resources harmful! detriment'al or injurious to public health, safety or  
4 


1 
welfare or which will adversely affect their utilization for domestic, commercial, 
2 
industrial, agriculture, recreational or other legitimate purposes. 
3 
SEC. 4. Laguna Lake Region. -
For purposes of this Act, the Laguna 
4 
Lake Region shall comprise the 
provinces· of Laguna and Rizal; the cities of 
5 
Calarnba, Sta. Rosa, San Pablo, Pasay, Caloocan, Quezon, Manila, Makati, 
6 
Mandaluyong, San Juan, Pasig, Marikina, Muntinlupa, 
Antipolo, 
Tagaytay, 
7 
Tanauan, Taguig 
and 
Lipa; 
the towns of Silang, Carmona, Dasmarinas and 
8 
General Mariano Alvarez in Cavite Province; the towns of Mauban, Real, Lucban and 
9 
Sampaloc in Quezon Province; the towns of Sto. Tomas and Malvar in Batangas; 
10 
and the town of Pateros in Metro Manila and all areas that drain into the Laguna 
11 
Lake: 
Provided, That any cities or towns that may be subsequently created in the 
12 
future out of the aforementioned municipalities and cities surrounding Laguna Lake 
13 
shall automatically form part of the Laguna Lake Region. 
14 
SEC. 5. Laguna Lake Development Authority. - Pursuant to the original 
15 
mandate of Republic Act No. 4850, as amended, the Laguna Lake Development 
16 
Authority, hereinafter referred to as the LLDA, shall pursue the ecologically 
17 
sustainable development of the Bay Region. It shall maintain its principal office at a 
18 
convenient place within the region, and such branch offices in other places within the 
19 
Bay Region as are necessary for the proper conduct of its business. 
20 
SEC. 6. 
Powers and Functions. - The LLDA shall have the following 
21 
powers and functions: 
22 
(a) 
Periodically conduct, monitor and update a comprehensive survey of 
23 
the Bay Region, including its socio-economic conditions, water quantity and quality in 
24 
the lake proper and all its major tributary rivers, irrigation, water supply, transport 
5 


1 
route, reservoir of floodwater, hydroelectric and other power potentials, scenic and 
2 
tourist spots, state of its watersheds, the tributary rivers and other physical and 
3 
natural resource potentials on the basis of which it shall prepare a sustainable 
4 
regional development master plan. Such plans, projects and programs shall be 
5 
drawn up in close coordination with other concerned government agencies and 
6 
private sector as well as other stakeholders. 
7 
All concerned public and private agencies shall provide the LLDA the 
8 
necessary data for the purposes of the said survey; 
9 
(b) 
Develop a long-term program to attract more private-sector-driven 
10 
investments into the Bay Region in consona~ce with a regional master plan which 
11 
shall be formulated in consultation with stakeholders, concerned government 
12 
agencies, local government units (LGUs), and civil society in the Bay Region; 
13 
(c) 
Review all plans, projects and programs that relate to the development 
14 
of the Bay Region, proposed and submitted by LGUs, public corporations and private 
15 
persons or corporations to ensure that they conform to the environmental standards 
16 . prescribed by the LLDA and other similar laws; 
17 
The LLDA shall collect reasonable fees as may be determined by the Board 
18 
for the processing of such plans, programs or' projects. Any future expansion of such 
19 
plans, programs, or projects shall be again subject to LLDA review and to payment of 
20 
additional fees as may be further determined by the LLDA Board; 
21 
(d) 
Engage, whether by itself or'in cooperation with private persons or 
22 
entities, in agriculture, commerce, industry, or to organize, finance, invest in, and 
23 
operate subsidiary corporations which are in the nature of new ventures or are 
24 
clearly beyond the scope, capacity, or interest of private enterprises by reason of 
6 


5 
10 
15 
20 
25 
1 
geography, technical or capital requirements, returns on investment and risk and 
2 
when public interest so requires; 
3 
(e) 
Implement infrastructure projec\s such as flood control, solid waste 
4 
management, wastewater and sewerage, water supply, roads, ports, irrigation, 
housing, leisure parks and related works, within the context of its development 
6 
master plan, including the readjustment, relocation, or resettlement of human 
7 
population within the Bay Region that may be deemed necessary and beneficial in 
8 
pursuit of the LLDA mandate. Should any of these projects be financed wholly or in 
9 
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 
11 
the projects. For infrastructure projects that' are in the nature of social overhead 
12 
capital projects, it shall be entitled to receive the corresponding financial assistance 
13 
from the government; 
14 
Undertake a massive information campaign among the stakeholders, 
in close coordination with the LGUs and other government agenCies within the 
16 
Laguna de Bay Region to promote better' understanding of the importance of 
17 
environmental protection and conservation of the Laguna Lake and its watersheds; 
18 
(g) 
Implement dredging and/or reclamation projects in close coordination 
19 
with the Philippine Reclamation Authority (PRA)/Public Estates Authority (PEA) and 
LGUs concerned with the end-in-view of facilitating the approval thereof by the 
21 
PRAIPEA pursuant to existing laws, executive orders and other issuances which 
22 
may be necessary to accomplish the aims and purposes of the LLDA; Provided, That 
23 
the land so reclaimed shall become the property of the national government through 
24 
the LLDA; 
(h) 
Determine new areas of fishery development, taking into account the 
7 


1 
overall development plans and programs for Laguna Lake and related bodies of 
2 
water and promulgate rules and regulations governing fisheries development in the 
3 
Bay Region. Accordingly, it shall engage in experimental/pilot fish production such 
4 
as the propagation of ornamental fish and similar aquaculture projects in Laguna 
5 
Lake and other bodies of water within its jurisdiction, in collaboration with the Bureau 
6 
of Fisheries and Aquatic Resources (BFAR). It shall improve present fishery 
7 
techniques and practices to provide equitable" access to its fishery resources for the 
8 
socio-economic amelioration of small fisher folk, improvement of their communal 
9 
fishing grounds, sustainable aquaculture development and operation. In hiring 
10 
laborers for fishery-related projects, there shall be preference for qualified shore land 
11 
residents; 
12 
(i) 
Regulate the use and occupancy of shoreland areas by enjoining 
13 
LGUs within the Bay Region to establish' watershed management councils or 
14 
wetlands whenever suitable and consistent with LLDA policies; 
15 
Develop surface and groundwater supply sources for municipal, 
16 
agricultural, commercial, and industrial use, In close coordination with the National 
17 
Water Resources Board (NWRB), or Local Water Utilities Administration (LWUA), as 
18 
the case may be, pursuant to existing laws, executive orders and other issuances 
19 
which may be necessary to accomplish the aims and purposes of the LLDA; 
20 
(k) 
Enter into agreements with. LGUs, governmental agencies and 
21 
corporations and the private sector for the supply, treatment, distribution and 
22 
marketing of such water; 
23 
(I) Establish and enforce anti-pollution standards on municipal, agricultural, 
24 
commercial and industrial wastewater and effluents being discharged into the lake in 
25 
coordination with appropriate government ag~ncies; 
8 


1 
(m) Conduct a continuing research, development and extension program in 
2 
close coordination with the academe, Department of Environment and Natural 
3 
Resources (DENR), and the Department of Science and Technology (DOST) on lake 
4 
water quantity and quality, integrated watershed management and enterprise 
5 
development and management with the end in view of promoting sustainable 
6 
development in the region; 
7 
(n) 
Adopt rules and regulations governing the approval of sewage works 
8 
and industrial waste disposal system and the issuance of clearance and/or permits in 
9 
accordance with the provisions of this ACt when necessary and inspect the 
10 
construction and maintenance of sewage works and industrial waste disposal 
11 
systems for compliance to clearance and/or permit conditions; 
12 
(0) 
Require all projects or activities in or affecting the Laguna de Bay Region 
13 
to secure Environmental Compliance Certificates (ECCs) required under Presidential 
14 
Decree No. 1586 and grant clearance and/or permits for any projects or activities 
15 
located within or affecting the Bay Region including, but not limited to, industrial and 
16 
commercial activities, navigation, irrigation, power generation, housing, resettlement 
17 
and other forms of land developments, construction and operation of aqua 
18 
structures, aquaculture development, dredging/reclamation and similar or related 
19 
activities and to impose necessary safeguards for lake water quantity and quality 
20 
control and management and to collect necessary fees for said activities and 
21 
projects; 
22 
(p) 
Issue, renew, or deny permits subject to reasonable guidelines for the 
23 
discharge of sewage, industrial waste, or for the installation or operation of sewage 
24 
works and industrial disposal system or parts thereof for the prevention and 
9 


1 
abatement of pollution and require subdivisions, condominiums, clinical and medical 
2 
establishments, mortuaries, public buildings, other similar human settlements, to 
3 
construct appropriate central sewerage system and sewage treatment works. The 
4 
LLDA may impose reasonable fees and other similar charges for the issuance or 
5 
renewal of all permits herein required; . 
6 
(q) Issue orders or decisions to compel' compliance with the provisions of this 
7 
Act and its implementing rules and regulations after proper notice and hearing; 
8 
(r) 
Make, issue, alter, or modify orders or decisions, after notice and 
9 
hearing, requiring the discontinuance of pollution specifying the conditions and the 
10 
time within which such discontinuance must be accomplished; 
11 
(s) 
After due notice and hearing, revoke, suspend or modify any clearance 
12 
and/or permit issued under this Act whenever the same is necessary to prevent or 
13 
abate pollution; 
14 
(t) 
Deputize or request assistance of appropriate government agencies or 
15 
instrumentalities for the purpose of enforcing'ihis Act and its implementing rules and 
16 
regulations and the orders and decisions of the LLDA; 
17 
(u) 
Authorize its bona fide representatives at all reasonable times to enter 
18 
any public and private property devoted to agricultural, commercial and industrial use 
19 
for the purpose of inspecting and investigating conditions relating to pollution and 
20 
existing and/or imminent environmental danger; 
21 
(v) 
Exercise such powers and perform such other functions as may be 
22 
necessary to carry out its duties and responsibilities under this Act. 
23 
SEC. 7. 
Corporate Powers. - The Authority has the following corporate 
24 
powers: 
10 


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a) 
Succeed in its corporate name; 
b) 
Sue and be sued in its corporate.name; 
c) 
Adopt, alter and use acorporate 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 LLOA 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; 
(j) 
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 
11 


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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 anewspaper 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 o~ 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 AgricLllture 
6) 
Sec(etary, National Economic and Development Authority 
7) 
Secretary, Department of Public Works and HiQhways 
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 'fisher folk 
11) 
Representative of the Rizal fisher folk 
The representatives of the Laguna fisher folk and the Rizal fisher folk shall be 
appointed by the President of the Philippines to be chosen from among the 
12 


5 
10 
15 
20 
25 
1 
nominees recommended by the Laguna Governor and the Rizal Governor, 
2 
respectively, upon consultation with the concerned sector. 
The. term of the 
3 
appointive members shall be six (6) years without reappointment, or until their 
4 
successors are duly appointed and qualified. 
Vacancy, other than through the 
expiration of the term, shall be filled for the unexpired term only. 
6 
Ex-officio Cabinet members can designate alternate representatives to the 
7 
Board, given the demands of their Cabinet-level position. 
8 
SEC. 9. Powers and Functions. ­ The Board of Directors shall exercise the 
9 
following powers and functions: 
a. 
Prescribe policies, rules and regulations to govern the conduct of 
11 
business of the LLDA including the procedures of the Authority; 
12 
b. 
Upon the recommendation of the General Manager, approve the 
13 
LLDA's organizational and administrative structures and 
corresponding staffing 
14 
pattern as may be deemed necessary: fix their reasonable compensation, 
allowances and other benefits in accordance with the salary standardization law; 
16 
prescribe their duties and establish such methods and procedures a may be 
17 
necessary to insure the efficient, honest and economical administration of the 
18 
provisions and purposes of this Act; Provided, however, That all personnel of the 
19 
LLDA below the rank of Assistant General Manager shall be appointed by the 
General Manager; Provided, further, That all personnel appointed by the General 
21 
Manager, except those below the rank of Department Heads, and others of 
22 
comparable rank, shall be subject to the confirmation by the Board; Provided, further, 
23 
That the personnel of the LLDA shall be selected only from civil service eligibles and 
24 
be subject to civil service rules and regulations; 
c. 
Upon the recommendation of the General Manager, to approve the 
13 


1 
annual and supplemental budget of receipts and expenditures of the LLDA, and to 
2 
authorize such operating and capital expenditures and disbursements of the LLDA 
3 
as may be necessary or proper for the e~ective management, operation and 
4 
administration of the LLDA; 
5 
d. 
Create and organize a Technical Advisory Council composed of 
6 
representatives from both the government and non-government sectors as the Board 
7 
may determine to assist and advise the Board in the conduct of public consultations 
8 
with Bay Region stakeholders towards a better considered formulation of LLDA plans 
9 
and policies; and 
10 
e. . 
Perform such other functions as may be necessary to carry out the 
11 
provisions of this Act. 
12 
SEC. 10. Board Meetings. ­ The Board shall meet at least once amonth. 
13 
SEC. 11. Per Diems. -
The members of the Board shall each receive per 
14 
diem at a rate in accordance with existing rules and regulations: Provided, however, 
15 
that the total per diem collected each month shall not exceed the equivalent per diem 
16 
for four (4) meetings. 
17 
SEC. 12. Sinking Fund. - A sinking fund shall be established in such 
18 
manner that the total annual contribution thereto accrued at such interests as may be 
19 
determined by the Board of Directors as confirmed by the stockholders representing 
20 
a majority of the subscribed capital stock outstanding and entitled to vote, shall be 
21 
sufficient to redeem at maturity the bonds issued under this Act. 
22 
Such funds shall be under the custody of the treasurer of the authority who 
23 
shall invest the same in such manner as the Board of Directors may direct; charge all 
24 
expenses of investment to said sinking fund, and credit the same with the interest on 
25 
investment and other income belonging to it. 
14 


1 
SEC. 
13. 
General Manager; Powers and Functions. - The General 
2 
Manager shall be the Chief Executive Officer of the LLDA. As such, he/she shall 
3 
have the following powers and functions: 
4 
a. 
Submit for consideration of the B'oard· poHcies and measures which he 
5 
believes to be necessary to carry out the purposes and objectives of this Act; 
6 
b. 
Execute, administer, and implement the policies, plans, programs and 
7 
projects approved by the Board; 
8 
c. 
Manage and supervise the operation and administration of the LLDA; 
9 
d. 
Appoint all officials and employees of LLDA below the rank of Assistant 
10 
General Manager, remove, suspend or otherwise disCipline them for cause, in 
11 
accordance with existing civil service rules and regulations, and submit quarterly 
12 
reports to the Board on personnel selection, placement and training; 
13 
e. 
Render an annual report to the Board and various stakeholders 
14 
regarding the operation of the LLDA, including its latest financial statement; 
15 
f. 
Represent the LLDA in all dealings with offices, agencies and 
16 
instrumentalities of the government and with all persons and other entities, public or 
17 
private, domestic and foreign; and 
18 
g. Perform such other functions as may be provided in the By-Laws and as 
19 
may be vested in him/her by the Board. 
20 
SEC. 14. Qualifications of the Gen,eral Manager. ­ The General Manager 
21 
shall be a citizen and resident of the Philippines. He/She shall have demonstrated 
22 
executive competence and experience in the field of public administration, economic 
23 
planning, environmental and natural resource management, or in the establishment 
24 
and management of large agricultural, commercial or industrial enterprises. No 
15 


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person shall be nominated as General Manager unless he/she is of unquestioned 
2 
integrity and competence. 
3 
SEC. 15. 
Tenure of Office of the General Manager. - The General 
4 
Manager shall be appointed by the President of the Philippines for a fixed term of six 
5 
(6) years. In case of resignation, retirement, separation, transfer, re-assignment, 
6 
removal and other cause of cessation from office, the replacement shall serve only 
7 
for the unexpired portion of the term. 
8 
SEC. 16. 
Compensation. -
The General Manager shall receive 
9 
compensation at rates in accordance with the salary standardization law. 
10 
SEC. 17. Management Structure. - In carrying out the activities of the 
11 
LLDA, the General Manager shall be assisted by two Assistant General Managers ­
12 
one for Operations and another for Administration -
who shall have such powers, 
13 
duties, and functions as the General Manag~r may prescribe and/ or delegate and 
14 
shall act as the General Manager in his/her absence or during his/her temporary 
15 
incapacity of and/or until such time as anew General Manager is duly appointed. 
16 
The Authority shall have the foli?wing departments under the direct 
17 
supervision and control ofthe General Manager; 
18 
a) Corporate Legal Affairs Department which shall provide legal advice and 
19 
support to all the corporate units on the legal implications of the various undertakings 
20 
of the Authority and divided into Litigation Division, and Research and 
21 
Documentation Division. 
22 
b) Administrative Department which shall be responsible for providing 
23 
services relating to human resource management, records management, and 
24 
general services. 
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C) Finance Department which shall be responsible on revenue pl,mning, 
2 
generation and enhancement, assistance on budgetary and financial matters, and 
3 
safekeeping of corporate assets. 
4 
d) Policy Planning and Management Services Department which will 
5 
undertake policy research and development, .and advise the General Manager on 
6 
policy positions and public advocacy measures. for approval of the Board. 
7 
e) Integrated Water Resources Management Services Department which will 
8 
serve as the main technical arm of the Authority and shall integrate the functions of 
9 
lake basin management and development. It shall oversee the management of the 
10 
Laguna Lake and its river systems including the shore lands. 
11 
D Environmental Protection Department which will manage all the 
12 
environmental regulatory functions of the Authority like clearance/permits and 
13 
licensing, 
monitoring 
and surveillance, enforcement and adjudication and 
14 
environmental quality compliance. 
15 
The Board shall periodically review. the appropriateness of the existing 
16 
organizational structure and amend the same whenever it may deem necessary and 
17 
beneficial to achieve the purposes of this Act and to be able to respond efficiently to 
18 
LLDA's mandate as herein provided. Any proposed change in the organizational 
19 
structure of the Authority shall be subject to the approval of the President of the 
20 
Philippines. 
21 
SEC.iS. Annual Fees. - The LLDA is hereby authorized to collect annual 
22 
fees for the use of the lake waters, its tributaries and shoreland areas for all 
23 
beneficial purposes including but not limited to fisheries, aquaculture, municipal, 
24 
agricultural, irrigation, commercial, industrial, hydroelectriC generation and other 
17 


1 
power potential, transport and navigation, waste disposal purposes, recreation and 
2 
dredging/reclamation from all private and public entities whether government or non­
3 
government agencies, among others the water utilities sector. All the fees so 
4 
collected shall be accordingly appropriated for the sustainable development of the· 
5 
lake and its watershed areas. Provided, that the fees collected for fisheries may be 
6 
shared between the Authority and other government agencies and LGUs as follows: 
7 
thirty-five percent (35%) of the 'fish pen fee goes to shore land LGUs, five percent 
8 
(5%) goes to the Project Development Fund and the remaining sixty percent (60%) 
9 
shall be retained by the LLDA. 
10 
SEC. 19. 
Capitalization and Financing. - The LLDA shall have an 
11 
authorized capital of Seven Hundred Million Pesos (P700,OOO,000). The authorized 
12 
capital stock of Seven Hundred Million Pesos (P700,000,000) shall be divided into 
13 
Seven Million (7,000,000) shares of stock with a par value of One Hundred Pesos 
14 
(P100) per share. The National Government shall subscribe to Four Million Two 
15 
Hundred (4,200,000) shares, the province of Laguna to Seven Hundred Thousand 
16 
(700,000) shares, the province of Rizal to Seven Hundred Thousand (700,000) 
17 
shares, and the balance of One Million Four Hundred Thousand (1,400,000) shares 
18 
shall be open for subscription to other government agencies or LGUs and other 
19 
private individuals or corporations within the Bay Region. 
20 
The shares of stock of the LLDA shall be divided into: 
21 
1) 4,900,000 ordinary shares (voting); and 
22 
2) 2,100,000 preferred shares (non-voting). 
23 
SEC 20. 
Funding. - The amount necessary to subscribe and pay for the 
24 
remaining shares of the national government to the capital stock of the LLDA shall be 
18 


1 
included in the annual General Appropriations Act. For LGUs, the funds shall be 
2 
taken from their internal revenue allotment andother local funds. 
3 
SEC.21. Creation of LLDA Environmental Adjudication Panel, - For the 
4 
purpose of effectively carrying out the quasi-judicial powers of the Authority within the 
5 
Bay Region, the LLDA Environmental Adjudication Panel (LEAP) is hereby created to 
6 
be composed of a Chairman and two (2) other members representing the Office of 
7 . the General Manager, the Corporate Legal Affairs Department and the concerned 
8 
department depending on the matter under controversy to be designated by the 
9 
General Manager. The LEAP is hereby mandated to take cognizance and adjudicate 
10 
violations of this Act including all existing and relevant laws, LLDA policies, rules and 
11 
regulations. Any decision, order or resolution must be concurred in by the majority of 
12 
the panel and duly approved by the General Manager. 
13 
The Corporate Legal Affairs Department shall serve as Secretariat of the 
14 
LEAP. 
15 
SEC, 22. 
Creation of a Lake Police Force. - The National Police 
16 
Commission shall constitute and assign a special police force to be known as the 
17 
Laguna Lake Police, exclusively for the Bay Region, trained especially for 
18 
enforcement of laws on fisheries and environmental laws and the rules and 
19 
regulations duly promulgated by the LLDA. 
20 
The extent of operational supervision and control by the General Manager 
21 
over the Laguna Lake Police shall be the same as that of local chief executives over 
22 
police force of LGUs as defined in the Department of Interior and Local Government 
23 
Act of 1990 (R.A. 6975), in relation to Sec. 73 of the Local Government Code of 
24 
1991 (R.A. 7160). The LLDA Board, the local government units (LGUs) and the 
25 
leadership of the Philippine National Police shall within sixty (60) days from the 
19 


5 
10 
15 
20 
25 
1 
passage of this Act constitute a technical working group that will further delineate 
2 
and define the nature and character of this unit in order to avoid any overlap and 
3 
potential conflict with the LGU police units within the Bay Region. 
4 
SEC. 23. Exemption from Tax. -
The Authority shall be exempt from all 
taxes, licenses, fees, imposts, charges, costs and duties except real property tax 
6 
incidental to its operations and service/filing fees in any court or administrative 
7 
proceedings in which it may be a party, restrictions and duties to the Republic of the 
8 
Philippines, its provinces, cities, municipalities and other government agencies and 
9 
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, 
11 
debentures and other obligations issued by the Authority shall be exempt from all 
12 
taxes both as to principal and interest. 
13 
SEC. 24. Fines and Penalties. - The LLDA is authorized to impose 
14 
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 
16 
approved by the Board for non-compliance with permit conditions and for 
17 
undertaking development activities without clearance/permit from the LLDA against 
18 
any person, juridical or otherwise, within the Bay Region who may be found violating, 
19 
or have in fact violated, any of its rules and regulations. 
Likewise, the LLDA is authorized to institute the necessary legal proceedings 
21 
against those who shall commence to implement any development activities within 
the Bay Region not cleared nor approved by the LLDA. 
23 
SEC. 25. 
Dam~ges. - Compensation for any damage to the shore land, 
24 
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 
20 


1 
act or omission of a person, private or public, juridical or otherwise, punishable under 
2 
the law shall be awarded to the LLDA for water quantity/quality control and 
3 
management projects. 
4 
SEC. 26. 
Penal and Civil Liability Clause. - Any person, natural or 
5 
juridical, who shall violate any of the provisions of this Act or any rules and 
6 
regulations promulgated by the Authority pursuant thereto shall be liable to 
7 
imprisonment of not exceeding three· (3) years or to a fine not less than Fifty 
8 
Thousand Pesos (P50,OOO) or both at the discretion of the court. This is without 
9 
prejudice to the imposition of penalties as may be provided under existing and 
10 
relevant laws, rules and regulations. 
11 
If the violator be a corporation, partnership or association, the officer / officers 
12 
of the organization concerned shall be held liable. 
13 
The LLDA is hereby authorized to initiate, file, prosecute and defend all suits, 
14 
actions or to pursue separate civil actions for damages resulting from infractions of 
15 
the provisions of this Act, rules or regulations issued pursuant thereto and/or 
16 
conditions embodied in the clearances or permits issued by the Authority. 
17 
SEC. 27. Auditor. ­ The Chairman of the Commission on Audit shall be the 
18 
ex officio Auditor of the LLDA. 
For this purpose, he/she may appoint a 
19 
representative who shall be the Auditor of the LLDA, and the necessary personnel to 
20 
assist said representative in the performance of his/her duties. 
21 
The Chairman of the Commission on Audit or his/her authorized 
22 
representative shall submit to the Board soon after the close of each calendar year, 
23 
an audited statement showing the financial condition and progress of the LLDA for 
24 
the calendar year just ended. 
21 


1 
SEC. 28. 
Implementing Rules and Regulations. -
The LLDA in 
2 
coordination with the proper standing Committees of both the Senate and tile 
3 
House of Representatives and other concerned agencies shall promulgate the 
4 
implementing rules and regulations (IRR) for this Act,within one (1) year after its 
5 
enactment: Provided, that the rules and regulations issued by other government 
6 
agencies and instrumentalities for the prevention and/or abatement of water 
7 
pollution· not inconsistent with this Act shall supplement the rules and 
8 
regulations issued by the LLDA pursuant to the provisions of this Act. 
9 
SEC. 29. Repealing Clause. -
Republic Act No. 4850 as amended, 
10 
Presidential Decree No. 813, and Executive Order No. 927, and all laws, orders, 
11 
issuance, rules and regulations inconsistent herewith are hereby repealed. 
12 
SEC. 30. Separability Clause, - If any provision of this Act is declared 
13 
unconstitutional, the same shall not affect the validity and effectiveness of the other 
14 
provisions hereof. 
15 
SEC. 31. Effectivity. - This Act shall take effect fifteen (15) days following its 
16 
publication in at least two (2) national newspapers of general circulation. 
17 
Approved, 
22