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UST OF REPRESENTATIVES

SEVENTEENTH CONGRESS OF THE ) RECEIVED
REPUBLIC OF THE PHILIPPINES __) oar, 29 JUL 2016

First Regular Session ) 2 we: TORT
BY:
HOUSE OF REPRESENTATIVES —\

1 94 9 REGISTRATION UNIT
H. No. BILLS AND INDEX SERVICE

Introduced by Representative VILMA SANTOS-RECTO
6th District of Batangas

AN ACT

CONDONING UNPAID AMORTIZATIONS OF LANDS AWARDED TO
COMPREHENSIVE AGRARIAN REFORM BENEFICIARIES ANDFOR OTHER
PURPOSES

Explanatory Note

Financing the Comprehensive Agrarian Reform Program (CARP) is one of the major
challenges in implementing land reform in the country. Apart from meager appropriations for
agrarian reform support services, the program also suffers from low repayment rates from
agrarian reform beneficiaries. The Senate Economic Planning Office (SEPO) estimated that from
1987 to 2004, only P2.5 billion of the projected P14.3 billion collectible land amortization
payments was actually collected'.A Philippine Institute for Development Studies (PIDS) study
revealed that the average land amortization collection rate by Land Bank of the Philippines
(LBP) from 1988 to 2008 was only 22.70%.

The cause for the low collection rate is two-fold. First, an administrative system to collect
amortization was not fully established due to prohibitive administrative costs’. Second, the high
cost of agricultural inputs, low farm outputs.and the onset of devastating meteorological
calamities, among others, have left the agrarian reform beneficiaries bereft of any meansto pay
for the amortization.

This bill seeks to accomplish several undertakings. First, it seeks to further increase the
productivity of agrarian reform beneficiaries by providing them additional financial resources
through the condonation of their annual amortization. Second, it strives to reduce the
administrative cost of implementing the agrarian reform program. Ultimately, it endeavorsto
achieve the original intent of the agrarian reform program, which is to improve the lives of
farmers, reduce rural poverty and accelerate rural development. Such intervention is founded on
the principles of the agrarian reform law, which seek to uphold the welfare of landless farmers
and farmworkers with the goal of promoting social justice, sound rural development and
industrialization. “

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‘Senate Economic Planning Office (2008, July). Broadening and Reinforcing the Benefits of Land Reform in the Philippines.
Policy Brief. Pasay City: Senate of the es.

* Ballesteros, M. (2010 May). The Cost of Redistributive Land Reform in the Philippines: Assessment of PD 27 and RA 6657
(CARL). Discussion Paper Series No. 2010-09. Makati City: Philippine Institute for Development Studies

> Arlanza, R. S., et. al. (2006 April). The Comprehensive Agrarian Reform Program: Scenarios and Options for Future
Development. Quezon City: Department of Agrarian Reform,

To sustain the gains of the agrarian reform progr:

dhe
earnestly sought. 5

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VILMA SANTOS-RECTO
SEVENTEENTH CONGRESS OF THE )

REPUBLIC OF THE PHILIPPINES __)
First Regular Session )

HOUSE OF REPRESENTATIVES

H.No._ 1949

Introduced by Representative Vilma Santos-Recto

AN ACT
CONDONING UNPAID AMORTIZATIONS OF LANDS AWARDED TO
COMPREHENSIVE AGRARIAN REFORM BENEFICIARIES ANDFOR OTHER
PURPOSES

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

SECTION 1. Condonation of Unpaid Amortizations. ~ Allunpaid amortizations due from a
farmer-beneficiary are hereby condoned by the Government, thereby relieving all farmer-
beneficiaries from the payment thereof. The agrarian reform beneficiaries shall be deemed as
rightful owners of the lands awarded to them upon the effectivity of this Act.

SEC.2./mplementing Rules and Regulations. ~ Within thirty (30) days from the effectivity
of this Act, the Department of Agrarian Reform (DAR), in coordination with the Philippine
Agrarian Reform Council and the Land Bank of the Philippines (LBP), shall promulgate the

necessary rules and regulations to effectively implement the provisions of this Act.

Repealing Clause, Section 26 of Republic Act No. 6657, otherwise known as the
“Comprehensive Agrarian Reform Law of 1988,” as amended by Republic Act No. 9700 is
hereby repealed, All laws, decrees, orders, rules and regulations or parts thereof inconsistent with
any of the provisions of this Act are hereby repealed, amended or modified accordingly.

Sec. 4.Effectivity Clause, - This Act shall take effect fifteen (15) days after its complete
publication in the Official Gazette or in at least two (2) newspapers of general circulation.

Approved,

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