SIXTEENTH CONGRESS OI~ THE 
REPUBLIC OF TI-IE PHUJPPINES 
nIsI Regular Session 
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SENATE 
£111''1"'14 
S.B. No. ~i.. r 
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Introduced by Senator LOREN LEGARDA 
EXPLANATORY NOTE 
Laguna de Bay is the largest and most essential inland body of water in the 
country. There are abou t 28,000 fisherfolk families that depend on it for livelihood, 
The lake contributes approximately 85,000 metric tons of fish annually to the fish 
supply of Metro Manila and adjacent provinces. It is a life support system to about 
13 million Filipinos, of whom 3.5 million live along the lakeshore areas, The water 
resources of the lake and its tributary rivers are used for irrig8tion, power 
generation, recreation, domestic water supply, and navigation, among others. 
To protect and accelerate the development of the Laguna de Day and its 
sUlTounding areas, Republic Act 4850 was created which enacted the establishment 
of the Laguna Lake Development Authority (LLDA), 
Through the years, several problems have sprouted whJch imperil the order 
within the Lake. These current issues include management of solid waste in the 18 ke, 
sanitation and public health, congestion of shore land areas, rapid sil tation and 
sedimentation, umniligated input of domestic, agricultural and industrial wastes, 
flooding and loss of biodiversity, and decline in water quality. 
While the LLDA exercises policy and plallning, regulatory, coordinative and 
developmental funclions, 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 LLIJA coordinates vvith 
have been identified as the stumbling block ill managing the lake's resou rce and the 
inlensified conflicls that arise from its multiple uses, 
This proposed measure aims to strengthen the policy-making and regnlatol'Y 
powers of the LLDA, in order to develop, promote, ancl materialize tbe vision of 
suslainability in the Laguna de Bay, 
In view of the foregoing, the passage of this bill is earnestly sought. 
--~~=-.=~~~;~~~:-='~-, 
.c:::..·-raIZEN JGEEfARIJA 
Senator 


SIXTEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
Hl'Bt Regular Session 
) 
) 
) 
SENATE 
SJI. N o. ~G":;J '~, 
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Introduced by Senator LOREN LEGARDA 
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AN ACT 
TO STRENGTHEN THE LAGUNA LAKE DEVELOPMENT AUTHORITY 
(LLDA), REPEALING FOR THIS PURPOSE RIl,PUBUC ACT NO. 4850, AS 
AMENDED, OTHERWISE KNOWN AS TI-IB LAGUNA LAKE DEVELOPMENT 
AUTHORITY ACT OF 1966, AND FOR OTHER PURPOSES 
Be if- enacted by the Senaie and House of Represenialives of the Philippines 1Jl 
Congress assell/bled: 
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SECTION 1. Title. - This Act shall be knQwn as the "Laguna Lake 
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Development Authority Ad of 2013." 
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SEC. 2. Declaration of Policy. - It is hereby declared the policy of the Slate to 
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promote and develop Laguna Lake in a sustainable manner along with the 
6· surrounding areas that comprise its region, hereinafter referred to as the Bay Region, 
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with Laguna Lake as its focal point whose water resources must be systematically 
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managed and protected for various uses. 
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For this purpose, the State hereby adopts an integrated waleI' resources 
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management (IWRM) approach, using the lake's watersheds as planning units to 
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interconnect and integrate its various ecosystems pursuant to Art. n, Sec. 16 of the 
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1987 Constitution: "The State shall protect and advance the righl of the people to a 
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balanced and healthful ecology in accord with the rhythm and harmony of nature." 
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In accordance wiLh the IWRM approach, any developmenl program in the 
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region shall always consider sustainable environmental management and the 
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prevention of any ecological harm, resource deterioration and pollution to allow the 
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lake to realize its full potentials including, among other llses, as a major resource in 
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fish production of national importance. Under Article XlII, Section 7 of the 1987 
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Constitution, the State is mandated to protect, d~velop, and conserve communal 
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marine and fishing resources, both inland and offshore. 
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SEC. 3. 
Definition of Terms . . As used in this Act: 
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1) Laguna Lake or Laguna de Bay. - shall refer to that area covered by the lake 
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water when it is at the average annual maximum lake level of elevation 12.50 
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meters, as referred to a datum 10.00 meters below mean lower low water 
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(M.L.L.W.) of Manila de Bay. Lands located at and below such elevation are 
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public lands, which form part of the bed of said lake. 
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2) Infegmied Water Resources Management (IWRM) - is a process that promotes 
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the coordinated development and management 01 water, land and related 
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resources in order to maximize the resultant economic and social welfare in 
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an equitable manner without compromising the sustainability of vital 
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ecosystems. 
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3) Wafershed - is the term used to describe the geogmphic area of land that 
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drains water to a shared destination or to an area of land that drains down 
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slope to the lowest point. The water moves through a network of drainage 
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pathways, both underground and on the surface. Other terms used 
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interchangeably with watershed include drainage basin or caic/nlleni basin. 
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4) Enviromlleni - means the physical factors of the total surroundings of human 
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beings, including but not limited to the lakes and other bodies of water, land, 
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air, atmosphere, climate, sound, odor, plants, insects, animals, its biological 
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and physical factors, all its life support systems and all other surrounding 
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matters that affect directly or indirectly the existence of human life and other 
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life forms in a specific area. 
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5) Shore/and / Lakeshore areas / Buffer Zone - that part of the lake along the 
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lakeshore lying at elevation 12.50 meters and below and alternately 
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submerged or exposed by the annual or seasonal rising and lowering of the 
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lake levels. This is a linear strip of land of approximately 14,000 hectares 
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designed to separate the incompatible elements or uses, or to control 
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pollution/ nuisance and for identifying and defining development areas or 
zones. 
6) Ground willer - means sub-surface water that occurs beneath the water table in 
soils and rocks, or in geological formations. 
7) AqullculLure - refers to fishery operations involving all forms of raising and 
culturing fish and other fishery species in fresh, brackish and marine water 
areas. 
8) Aqua slruc/ure - 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 the 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) Pollul.iol1 - 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, commercia!, indushial, 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, Dasmal"ifias 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 
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Manila and all areas that drain into the Laguna Lake: Provided, That cities or towns 
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that may be subsequently created in the future out of the aforementioned 
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municipalities and cities surrounding Laguna Lake shall automatically form part of 
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the Laguna Lake Region. 
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SEC. 5. Laguna Lake Development Authority. - Pursuant to the original 
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mandate of Republic Act No. 4850, as amended, the Laguna Lakrc Development 
8 
Authority, hereinafter referred to as the LLDA, shall pursue the ecologically 
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sustainable development of the Bay Region. It shall maintain its principal office at a . 
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convenient place within the region, and such branch offices in other places within 
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the Bay Region as are necessary for tHe proper conduct of its business. 
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SEC. 6. 
Powers and Functions. - The LLDA shall have the following 
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powers and functions: 
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(a) 
Periodically conduct, monitor and update a comprehensive survey of 
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the Bay Region, including its sodo-economic conditions, water quantity and quality 
18 
in the lake proper and all its major tributary rivers, irrigation, water supply, 
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t1'al1Sport route, reservoir of floodwater, hydroelectric and olher power potentials, 
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scenic and tourist spots, state of its watersheds, the tributary rivers a nd other 
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physical and natural resource potentials on the basis of which it shall prepare a 
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sustainable regional development master plall. 
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All concerned public and private agencies shall provide the LLDA the 
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necessary data for the purposes of the said survey; 
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(b) 
Develop a long-term program to attract more private-sector-driven 
28 
investments into the Bay Region in consonance with a regional master plan, which 
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shall be formulated in consultation with stakeholders, concerned government 
30 
agencies, local governrnent units (LGUs), and civil society in the Bay Eegion; 
31 
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(c) 
Review all plans, projects and programs that relate to the development 
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of the Bay Regioll, proposed and submitted by LGUs, public corporations and 
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private persons or corporations to ensure that they conform to the environmental 
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standards prescribed by the LtD A and other similar laws. 
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The LLDA shall coUed reasonable fees as may be determined by the Board 
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for the processing of such plans, programs or project~. Any future expansion of such 
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plans, programs, or projects shall be again subject to LLDA review and 1.0 payment 
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of additional fees as may be further determined by the LLDA Board. 
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(d) 
Engage, whether by itself or in cooperation with private persons or 
7 
entities, in agriculture, commerce, industry, or to organize, finance, invest in, and 
8 
operate subsidiary corporations which are in the nature of new ventures or are 
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clearly beyond the scope, capacity, or interest of private enterprises by reason of 
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geography, technical or capital requirements, returns on investment and risk and 
11 
when public interest so requires; 
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(e) 
Implement infrastructure projects such as flood control, solid waste 
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management, wastewater and sewerage, water supply, roads, ports, irrigation, 
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housing, leisure parks and related works, within the context of its development 
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master plan, including the readjustment, relocation, or resettlement of human 
17 
population within the Bay Region that may be deemed necessary and beneficial in 
18 
pursuit of the LLDA mandate. Should any of these projects be financed wholly or in 
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part by the LLDA, it shall have authority to collect reasonable fees and tolls from 
20 
users or beneficiaries to recover costs of construction, operation and maintenance of 
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the projects. For infrastructure projects that are in the nature of social overhead 
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capital projects, it shall be entitled to receive the corresponding financial assistance 
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from the government; 
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(f) 
Undertake a massive information campaign among the stakeholders, 
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in close coordination with the LGUs and other government agencies within the 
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Laguna de Bay Region to promote better understanding of the irnportance of 
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environmental protection and conservation of the Laguna Lake and its watersheds; 
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(g) 
Implement dredging and/ or reclamation projects in close coordination 
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with the Philippine Reclamation Authority (PRA)/Public Estates Authority (PEA) 
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and LGUs concerned with the end-in-view of facilitating the approval thereof by the 
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PRA/ PEA pursuanl to existing laws, executive orders and other issuances which 
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may be necessmy to accomplish the aims and purposes of the UDA; Provided, That 
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the land so reclaimed shall become the property of the national government through 
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the LLDA; 
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(h) 
Determine new areas of fishery development, taking into account the 
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overall development plans and programs for Laguna Lake and related bodies of 
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water and promulgate rules and regulations governing fisheries development in the 
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Bay Region. Accordingly, it shall engage in experimental! pilot fish production such 
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as the propagalion of ornamental fish and similar aquaculture projects in Laguna 
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Lake and other bodies of water within its jurisdiction, in collaboration with the 
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Bureau of Fisheries and Aquatic Resources (BFAR). It shall improve present fishery 
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techniques and practices to provide equitable access to its fishery resources [or the 
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socio-economic amelioration of small fisher folk, improvement of their communal 
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fishing grounds, sustainable aquaculture development and operation. In hiring 
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laborers for fishery-related projects, there shall be preference for qualified shore land 
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residents; 
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(i) 
Regulate the use and occupancy ofshoreland areas by enjoining LGUs 
within the nay Region to establish watershed management councils or wetlands 
whenever suitable and consistent with LLDA policies; 
0) 
Develop surface and groundwater supply sources for municipal, 
agricultural, cOl1unercial, 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 
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corporations and the private sector for the supply, treatment, distribution and 
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marketing of such water; 
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(1) 
Establish 
and 
enforce 
anti-pollution standards on municipal, 
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agricultural, commercial and industrial wastewater and effluents being discharged 
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into the lake in coordination with appropriate govermllent agencies; 
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(m) 
Conduct a continuing research, development and extension program 
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in close coordination with the academe, Department of Environment and Natural 
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Resources (DENR), and the Department of Science and Technology (DOST) on lake 
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water quantity and quality, integrated watershed management and enterprise 
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development and management with the end 111 View of promoting sustainable 
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development in the region; 
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(n) 
Adopt rules and regulations governing the approval of sewage works 
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and industrial waste disposal system and the issuance of clearance and/ or permits 
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in accordance with the provisions of this Act when necessary and inspect the 
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construction and maintenance of sewage works and industrial waste disposal 
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systems for compliance to clearance and/ or permit conditions; 
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(0) 
Require all projects or activities in or affecting the Laguna de Bay 
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Region to secure Environmental Complia.nce Certificates (ECCs) required under 
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Presidential Decree No. 1586 and grant clearance and/ or permits for any projects or 
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activities located within or affecting the Bay Region including, but not limited to, 
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industrial and commercial activities, navigation, irrigation, power generation, 
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housing, resettlement and other forms of land developments, construction and 
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operation of aqua structures, aquaculture development, dredging/ reclamation and 
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similar or related activities and to impose necessary safeguards for lake water 
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quantity and quality control and management and to collect necessary fees for said 
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activities and projects; 
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(p) 
Issue, renew, or deny permits subject to reasonable guidelines for the 
discharge o[ sewage, industrial waste, or for the installation or operatioI1 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 [or the 
issuance or renewal of all permits herein required; 
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(q) 
Issue orders or decisions to compeJ compliance with the provisions of 
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this Act and its implementing rules and regulations after proper notice and hearing; 
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(r) 
Make, issue, alter, or modify orders or decisions, after notice and 
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hearing, requiring the discontinuance of pollution specifying the conditions and the 
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time within which such discontinuance must be accomplished; 
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(s) 
After due notice and hearing, revoke, suspend or modify any clearance 
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and/ or permit issued under this Act whenever the same is necessary to prevent or 
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abate pollution; 
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(t) 
Deputize or request assistance of appropriate government agencies or 
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instrumentalities for the purpose of enforcing this Act and its implementing rules 
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and regulations and the orders and decisions of the LLDA; 
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(u) 
Authorize its bona fide representatives at all reasonable times to enter 
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any public and private property devoted to agricultural, commercial and industrial 
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use for the purpose of inspecting and investigating conditions relating to pollution 
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and existing and/ or imminent environmental danger; 
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(v) 
Exercise such powers and perform such olller functions as may be 
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necessary to carry out its duties and responsibilities under this Act. 
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SEC. 7. Corporate Powers. - The Authority has the following corporate 
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powers: 
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a) 
b) 
c) 
d) 
(e) 
Succeed in its corporate name; 
Sue and be sued in its corporate name; 
Adopt, alter and use a corporate seal; 
Adopt, amend, or repeal its by-laws; 
Enter into contracts to enable it to carry out its purposes and functions 
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under this Act; 
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(f) 
Acquire, buy, purchase, hold or lease, such personal and real property 
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as it may deem necessary in the transaction of its business or in relation to carrying 
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out its purposes under this Act and to lease, mortgage, sell, alienate, or otherwise 
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encumber, utilize, exploit or dispose any such personal and real property held by it, 
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subject to individual or communal rigl1t of private parties or of the government or 
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any agency or enterprise thereof; 
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(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, securiUes, or other evidence of 
indebtedness created by any othe'r 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; 
G) 
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 
21 
subscribe to its shares of stock; 
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(1) 
Issue such other rules and regulations as may be necessary from time 
24 
to time to achieve the purposes of this Act, the same to take effect thirty (30) days 
25 
after its publication in a newspaper of general circulation, 
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SEC. 8. Board of Directors. ,. The LLDA shall be governed by a Board of 
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Directors who shall be appointed by the President of the Philippines and shall be 
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composed of the following: 
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1) 
2) 
3) 
4) 
5) 
6) 
Secretary of Environment and Natural Resources, Chairman 
General Manager, LLDA, Vice-Chairman 
Governor, Province of Laguna, ex officio 
Governor, Province of Rizal, ex offici a 
Secretary, Department of Agriculture 
Secretary, National Economic and Development Authority 
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7) 
Secrelary, Department of Public Works and Highways 
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8) 
Chairman, Metro Manila Development Authority 
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9) 
Representative of the Bay Region City and Municipal Mayors' 
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Association to be constituted sixty (60) days from the passage of this Act from 
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among the mayors of towns and cities that comprise the Bay Region as defined in 
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Section 3 of this Act 
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10) 
Representative of the Laguna fisherfolk 
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Representative of the Rizal fisherfolk 
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 
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 reappointmenl, 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. 
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Ex-officio Cabinet members can designate alternate representa lives to the 
18 
Board, given the demands of their Cabinet-level position. 
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SEC 9, Powers and Functiolts. - The Board of Directors shall exercise the 
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following powers and functions: 
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a. 
Prescribe policies, rules and regulations to govern the conduct of 
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business of the LLDA including the procedures of the Authority; 
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b. 
Upon the recommendation of the General Manager, approve the 
27 
LLDA's organizational and administrative structures and corresponding staffing 
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pattern as may be deen1.ed necessary; fix their reasonable compensation, allowances 
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and other benefits in accordance with the salary standardization law; prescribe their 
30 
duties and establish such methods and procedures a may be necessary to insure the 
31 
efficient, honest and economical administration of the provisions and pu rposes of 
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this Act; Provided, however, That all personnel of the LLDA below the rank of 
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Assistant General Manager shall be appointed by the General Manager; Provided, 
3/1 
further, That all pers(mnel appointed by the General Manager, except those below 
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the rank of Department Heads, and others of comparable rank, shall be subject to the 
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confirmation by the Board; Provided, further, That the personnel of the LLDA shall be 
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selected only from civil service eligibles and be subject to civil service rules and 
2 
regulations; 
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c. 
Upon the recommendation of the General Manager, to approve the 
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annual and supplemental budget of receipts and expenditures of the LLDA, and to 
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authorize such operating and capital expenditures and disbursements of the LLDA 
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as may be necessary or proper for the effective management, operation and 
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administration of the LLDA; 
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d. 
Create and organize a Technical Advisory Council composed of 
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representatives from both the government and non-government sectors as the Board 
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may determine to assist and advise the Board in the conduct of public consultations 
13 
with Bay Region stakeholders towards a better considered formulation of LLDA 
14 
plans and policies; and 
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e. 
Perform such other [unctions as may be necessary to carry out the 
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provisions of this Act. 
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SEC.lO. Board Meef:iltgs. - The Board shall meet at least once a month. 
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SEC. 11. Per Diems. - The members of the Board shall each receive per diem 
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at a rate in accordance with existing rules and regulations: Provided, however, that the 
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total per diem collected each month shall not exceed the equivalent pel' diem for 
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foUl' (4) meetings. 
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SEC. 12. Sinking Fund. - A sinking fund shall be established in such manner 
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that the total annual contribution thereto accrued at such interests as may be 
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determined by the Board of Directors as confirmed by the stockholders representing 
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a majority of the subscribed capital stock outstanding and entitled to vote, shall be 
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sufficient to redeem at maturity the bonds issued under this Act. 
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Such funds shall be under the custody of the treasurer of the authority who 
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shall invest the same in such manner as the Board of Directors may direct; charge all 
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expenses of investment to said sinking fund, and credit the same with the interest on 
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investment and other income belonging to it. 
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SEC. 13. General Manager; Powers and Functions. - The General Manager 
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shall be the Chief Executive Officer of the LLDA. As such, he/she shall have tbe 
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following powers and functions: 
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5 
a. 
Submit for consideration of the Board policies and measures, which he 
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believes to be necessary to carry out the purposes and objectives of this Act; 
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b. 
Execute, administer, and implement the policies, plans, programs and 
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projects approved by the Board; 
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c. 
Manage and supervise the operation and administration of the LLDA; 
d. 
Appoint all officials and employees of LLDA below the rank of 
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Assistant General Manager, remove, suspend or otherwise discipline them for cause, 
15 
in accordance with existing civil service rules and regulations, and submit quarterly 
16 
reports to the Board on personnel selecti.on, placement and trainine;; 
17 
18 
e. 
Render an annual report to the Board and various stakeholders 
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regarding the operation of the LLDA, including its latest financial statement; 
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f. 
Represent the LLDA in all dealings wi.th offices, agencies and 
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instrumentalities of the government and with all persons and other entities, public 
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or private, domestic and foreign; and 
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25 
g. 
Perform such other functions as may be provided in the By-Laws and 
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as may be vested in him/her by the Board. 
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SEC. 14. Qualifications of the General Manager. - The General Manager shall 
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be a citizen and resident of the Philippines. He/She shall have demonstrated 
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executive competence and experience in the field of public administration, economic 
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planning, environmental and natural resource management, or in the establishment 
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and management of large agricultural, commercial or indusb'ial enterprises. No 
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person shall be nominated as General Manager unless he/she is of unquestioned 
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integrity and competence. 
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SEC. 15. Tenure of Office of the General Manager. - The General Manager 
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shall be appointed by the President of the Philippines for a fixed term of six (6) 
3 
years. In case of resignation, retirement, separation, transfer, re-assignment, removal 
4 
and other cause of cessation from office, the replacement shall serve only for the 
5 
unexpired portion of the term. 
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SEC. 16. COn1pensal:iol1. - The General Manager shall receive compensation at 
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rates in accordance with the salary standardization law. 
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SEC. 17. Management Structure. - In carrying out the activities of the LLDA, 
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the General Manager shall be assisted by two Assistant General Managers - one for 
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Operations and another for Administration - who shall have such powers, duties, 
13 
and functions as the General Manager may prescribe and/ or delegate and shall act 
14 
as the General Manager in his/her absence or during his/her ternporary incapacity 
15 
of and/ or until such time as a new General Manager is duly appointed. 
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17 
The Authority shall have the following departments under the direct 
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supervision and control of the General Manager: 
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a) 
Corporate Legal Affai rs Department, which shall provide legal advice and 
21 
support to all the corporate units on the legal implications of the various 
22 
undertakings of the Authority and divided into Litigation Division, and Research 
23 
and Documentation Division. 
24 
25 
26 
27 
28 
29 
30 
31 
32 
33 
34 
35 
36 
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, 
generation, and enhancement, assistance on budgetary and financial matters, and 
safekeeping of corporate assets. 
d) 
Policy Planning and Managemenl 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. 
12 


1 
e) 
Integrated Waler Resources Management Services Department, which will 
2 
serve as the main technical arm of the Authority and shall integrate the functions of 
3 
lake basin management and development. It shall oversee the management of the 
4 
Laguna Lake and its river systems including the shore lands. 
5 
6 
f) 
Environmental Protection Department, which will manage all the 
'1 
environmeiltal regulatory functions of the Authority like clearance/permits and 
8 
licensing, monitoring and surveillance, enforcement and adjudication and 
9 
environmental quality compliance. 
10 
11 
The Board shall periodically review the appropltiateness of the existing 
12 
organizational structure and amend the same whenever it may deem necessary and 
13 
beneficial to achieve the purposes of this Act and to be able to respond efficiently to 
1'1 
LLDA's mandate as herein provided. Any proposed change in the organiza1ional 
15 
structure of the Authority shall be subject to the approval of the President of the 
16 
Philippines. 
1'1 
18 
SEC. 18. Allnuall1ees. - The LLDA is hereby authorized to colleel: annual fees 
19 
for the use of the lake waters, its tributaries and shoreland areas for all beneficial 
20 
purposes including but not limited to fisheries, aquaculture, municipal, agricultural, 
21 
irrigation, commercial, industrial, hydroelectric generation and other power 
22 
potential, transport and navigation, waste disposal purposes, recreation and 
23 
dredging/reclamation from all private and public entities whether government or 
24 
non-government agencies, among others the water utilities sector. All the fees so 
25 
collected shall be accordingly appropriated for the sustainable development of the 
26 
lake and its watershed areas. Provided, that the fees collected for fisheries may be 
2'1 
shared between the Authority and other government agencies and LGUs as follows: 
28 
thirty-five percent (35%) of the fish pen fee goes to shore land LGUs, five percent 
29 
(5%) goes to the Project Development Fund and the remaining sixty percent (60%) 
30 
shall be retained by the LLDA. 
31 
32 
SEC. 19. Capit:alization and Financing. - The LLDA shall have an authorized 
33 
capital of Seven Hundred Million Pesos (1''100,000,000). The authorized capital stock 
34 
of Seven Hundred Million Pesos (P'l00,000,000) shall be divided into Seven Million 
35 
('1,000,000) shares of stock with a par value of One Hundred Pesos (P100) per share. 
36 
The National Government shall subscribe to Four Million Two Hundred (4,200,000) 
13 


1 
shares, the province of Laguna to Seven Hundred Thousand (700,000) shares, the 
2 
province of Rizal to Sev.en Hundred Thousand (700,000) shares, and the balance of 
3 
One Million Four Hundred Thousand (1 AOO,OOO) shares shall be open for 
4 
subscription to other government agencies or LGUs and other private individuals or 
5 
corporations within the nay Region. 
6 
7 
The shares of slock of the LLDA shall be divided inlo: 
8 
9 
10 
J1 
1) 
2) 
4,900,000 otdinary shares (voting); and 
2,100,000 preferred shares (non-voting). 
12 
SEC. 20. Funding. - The amount necessary to subscribe and pay for the 
13 
remaining shares of the national government to the capital stock of the LLDA shall 
14 
be included in the annual General Appropriations Act. For LGUs, the funds shall be 
15 
taken from their internal revenue allolment and other local funds. 
16 
17 
SEC. 21. Creai"iol1 of LLDA Environmental Adjudication Panel. - For the 
18 
purpose of effectively carrying out the quasi-judicial powers of the Authority within 
19 
the Day Region, the LLDA Environmental Adjudication Panel (LEAP) is hereby 
20 
created to be composed of a Chairman and two (2) other members representing the 
2"1 
Office of the General Manager, the Corporate Legal Affairs Department and the 
22 
concerned department depending on the matter under controversy to be designated 
23 
by the General Manager. The LEAP is hereby mandated to take cognizance and 
24 
adjudicate violations of this Act including all existing and relevant laws, LLDA 
25 
policies, rules and regulations. Any decision, order or resolution must be concurred 
26 
in by the majority of the panel and duly approved by the General Manager. 
27 
28 
The Corporate Legal Affairs Department shall serve as Secretariat of the 
29 
LEAP. 
30 
31 
SEC. 22. Creation of a Lake Police Force. - The National Police Commission 
32 
shall constitute and assign a special police force to be known as the Laguna Lake 
33 
Police, exclusively for the Bay Region, tTained especially for enforcement of laws on 
34 
fisheries and environmental laws and the rules and regulations duly promulgated 
35 
by the LLD A. 
36 
14 


1 
The extent of operational supervision and control by the General Manager 
2 
over the Laguna Lake Police shall be the same as that of local chief executives over 
3 
police force of LGUs as defined in the Department of Interior and Local Government 
4 
Act of 1990 (R.A. 6975), ill relation to Sec. 73 of the Local Government Code of 1991 
5 
(R.i\. 7160). The LLDA Board, the local government units (LGUs) and the leadership 
6 
of the Philippine National Police shall within sixty (60) days from the passage of this 
7 
Act constitute a technical working group that will further delineate and define the 
8 
nature and character of this unit in order to avoid any overlap and potential conflict 
9 
with the LGU police units within the Bay Region. 
10 
11 
SEC. 23. ExempNon from Tax . .. The Authority shall be exempl from all taxes, 
12 
licenses, fees, imposts, charges, costs and duties except real property tax incidental 
13 
to its operations and service/filing fees in any court or administrative proceedings 
14 
in which it may be a party, restrictions and duties to the Republic of the Philippines, 
'] 5 
its 
provinces, cities, municipalities and other government agencies and 
16 
instrumentalities. Such exemption shall include any tax or fee imposed by the 
17 
government on the sale, purchase or transfer of foreign exchange. All notes, bonds, 
18 
debentures and other obligations issued by the Authority shall be exempt from all 
19 
taxes both as to principal and interest. 
20 
21 
SEC. 24. Fines and Penalties. .. The LLDA is authorized to impose 
22 
administrative fines and other penalties it may deem reasonable and appropriate 
23 
within the bounds of existing law on the same 01; simiiar offenses as determined and 
24 
approved by the Board for non .. compliance with permit conditions and for 
25 
undertaking development activities without clearance/permit from the LLDA 
26 
against any person, juridical or otherwise, within the Bay Region who may be found 
27 
violating, or have in fact violated, any of its rules and regulations. 
28 
29 
Likewise, the LLDA is authorized to institute the necessary legal proceedings 
30 
against those who shall commence to implement any development activities within 
3'1 
the Bay Region not cleared nor approved by the LLDA. 
32 
33 
SEC. 25. Damages. - Compensation for any damage to the shore land, waler 
34 
and aquatic resources of Laguna Lake and its tributaries resulting from failure to 
35 
meet established water and effluent quality standards or (rom such other wrongful 
36 
act or omission of a person, private or public, juridical or otherwise, punishable 
15 


1 
under the law shall be awarded to the LLD A for water quantity/quality control and 
2 
management projects. 
3 
4 
SEC. 26. Pellal and Civil Liability Clause. - Any person, natural or juridical, 
5 
who shall violate any of the provisions of this Act or any rules and regulations 
6 
promulgated by the Authority pursuant thereto shall be liable to imprisonment of 
7 
not exceeding three (3) years or to a fine not less than Fifty Thousand Pesos 
8 
(P50,000.00) or both at the discretion of the court. This is without prejudice to the 
9 
imposition of penalties as may be provided under existing and relevant laws, rules 
10 
and regulations. 
11 
12 
If the violator be a corporation, partnership or association, the officer/ officers 
13 
of the organization concerned shall be held liable. 
14 
15 
The LLDA is hereby authorized to initiate, file, prosecute and defend all suits, 
16 
actions or to pursue separate civil actions for damages resulting from infractions of 
17 
the provisions of this Act, rules or regulations issued pursuant thereto and/or 
18 
conditions embodied in the clearances or permits issued by the Authority. 
19 
20 
SEC. 27. Auditor. - The Chairman of the Commission on Audit shall be the ex 
21 
officio Auditor of the LLDA. For this purpose, he/she may appoint a representative 
22 
who shall be the Auditor of the LLDA, and the necessary personnel to assist said 
23 
representative in the performance of his/her duties. 
24 
25 
The Chairman of the Commission on Audit or his/her authorized 
26 
representative shall submit to the Board soon after the close of each calendar year, 
27 
an audited statement showing the financial condition and progress of the LLDA for 
28 
the calendar year just ended. 
29 
30 
SEC. 28. Implementing Rules and Regulations. - The LLDA in coordination 
31 
with the proper standing Committees of both the Senate and the House of 
32 
Representatives and other concerned agencies shall promulgate the implementing 
33 
rules and regulations (IRR) for this 1\ct, within six (6) months after its enactment: 
34 
Provided, That the rules and regulations issued by other government agencies and 
35 
instrumentalities for the prevention and/ or abatement of water pollution not 
16 


1 
inconsistent: with this Act shall supplement the rules and regulations issued by the 
2 
LLDA pursuant to the provisions of this Act. 
3 
4 
SEC 29. Repealing Clause. - Republic Act No. 4850 as amended, Presidential 
5 
Decree No. 813, and Executive Order No. 927, and all laws, orders, issuance, rules 
6 
and regulations inconsistent herewith are hereby repealed. 
7 
8 
SEC 30. Separability Clause. - If any provision of this Act is declared 
9 
unconstitutional, the same shall not affect the validity and effectiveness of the other 
10 
provisions hereof. 
11 
12 
SEC 31. Effedivity. - This Act shall take effect fifteen (15) days following its 
13 
publication in at least two (2) national newspapers of general circulation. 
14 
15 
Approved, 
16 
17