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Republic of the Philippines
HOUSE OF REPRESENTATIVES
Constitution Hills, Quezon City

SEVENTEENTH CONGRESS
First Regular Session

HOUSE BILL No, 5946

Introduced by Hon, Jesulito “Jess” A, Manalo

EXPLANATORY NOTE

2 highly focused implementing agency withthe appropriate and agile organizational structure
is needed for the sustainable nationwide administration and implementation of the country’s Master

The FMDA shall also conduct performance reviews of Industrial Tree Plantations and provide
technical expertise, training, and other forms of assistance to local government units, forest
Piet committees, city/municipal environment and natural resources offices, and. the
Philippine National Police.

The proposed Forest Management and Developmem Authority (FMDA) is given corporate
Powers, the status of a government-owned and controlled corporation, and is attached to the
Department of Environment and Natural Resources for its dedicated nationwide mission,

The FMDA will not absorb existing offices and their personne! wholesale as has been the
Practice in the past whenever the government creates a new agency. It will accept applicants and

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Republic of the Philippines
HOUSE OF REPRESENT. ATIVES
Constitution Hills, Quezon City

SEVENTEENTH CONGRESS
First Regular Session

HOUSE BILL NO. 5946

Introduced by: Hon. Jesulito “Jess” A. Manalo

AN ACT
PROVIDING FOR THE EFFECTIVE IMPLEMENTATION AND COORDINATION
OF SUSTAINABLE FOREST MANAGEMENT LAWS, POLICIES, PROGRAMS,

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

Section 1. Short Title. - This Act shall be known as the “Charter of the Forest
Management and Development Authority”.

Section 2. Declaration of Policy. - It is the declared policy of the State:

'- To promote industralization and full employment based on sound agricultural
development and agrarian reform, through industries that make full and efficient
tse of human and natural resources, and which are competitive in both domestic
and foreign markets;

To protect Filipino enterprises against unfair foreign competition and trade
Practices;

5 To ensure the exploration, development, and utilization of natural resources shall
be under the full control and supervision of the State and that the State may
directly undertake such activities, or it may enter into co-production, joint venture,
or Production-sharing agreements with Filipino citizens, or corporations or
‘sssociations at least sixty per centum of whose capital is owned by such citizens,


conditions as may be provided by law.

4. To protect the rights of indigenous cultural Communities to their ancestral lands to
ensure their economic, social, and cultural well-being, subject to the provisions of
this Constitution and national development policies and Programs;

5. To provide for the applicability of customary laws governing property rights or
relations in determining the ownership and extent of ancestral domaia, and

6. To promote the use of property cognizant of its social function, and mobilize all
Sconomic agents to contribute to the common good.

Section 3. Forestlands Management and Development Authority. - There is hereby

nable it to attain its objectives, including the following powers:

2 fromulgate such rules and regulations necessary for the attainment of its mandate
in this Act;

3. Enter into, make and execute contracts of any kind with any person, firm or
corporation, with the Philippine Government or with any foreign government, subject
to existing laws;

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4. Form, establish, organize and operate and/or contract to operate such subsidiaries,
divisions, functional units, offices and departments of the FMDA as it may deem
necessary or useful for the furtherance of the purpose of this Act;

6. Obtain funds to support or carry out its objectives and purposes and/or to invest idle
funds or income derived from marketing, contributions, etc, in any authorized
government depository banks;

8. Secure any or all of its obligations or liability by any guarantee or counter:

creating or suffering to exist, a charge, lien, or encumbrance, general or special, upon
its assets as the FMDA Board may deem reasonable and proper;

10. Accept and/or grant donations, in any form, from/to any entity, private or
government, domestic or foreign.

U1. Acquire equipment and/or raw materials and supplies by outright purchase or
lease or rent from, as well as contract services or the undertaking or development
Projects 10, any person or entity, domestic or foreign, private or government, with or
without bidding, as the FMDA Board may deem reasonable and proper;

12. Exercise the power of eminent domain as may be necessary in carrying out the
Purposes of this Act.

Section 5. Board of Directors. The FMDA shall be governed by a Board of Directors
composed of the following or their duly-designated permanent representatives:

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Chairman: Secretary of Environment and Natural Resources
Members:

Secretary of Interior and Local Government;

Secretary of Trade and Industry;

Secretary of Science and Technology:

Director-General of the National Economic and Development Authority;
Chairman of the National Commission on Indigenous Peoples:
Chairman of the Housing and Land Use Regulatory Board;
Director-General of the Philippine National Police;
‘Chancellor of the University of the Phi ippines in Los Banos;
President of the Society of Filipino Foresters; and

President of the Philippine Wood Producers Association.

Section 6. Powers/Functions of the Board. The Board of Directors of the FMDA shall
exercise/perform the following powers/functions.

|. Prescribe and amend the By-Laws of the FMDA;

2. Formulate policies, plans, Projects, rules and regulations to effectively carry out
functions of the FMDA;

3. Direct the management, Operations and administration of the FMDA;

4. Create committees and/or Positions necessary for the efficient operation of the
FMDA; fix and authorize payment of salaries, allowances, per diems, honoraria and
other renumeration or emoluments of the members of the FMDA Board, President,
other officers and _ personnel, including personnel of the government
agencies/instrumentalities, who may be designated to work for the FMDA by detail or
designation in concurrent capacity;

5. Fix the term of office of executive officers of the FMDA:

6. Submit to the President of the Republic of the Philippines the annual report of
operations and condition of the FMDA;

7. Exercise such other powers as may be necessary to accomplish the
Purposes/objectives of the FMDA; and

8. Delegate any or all of its power and functions to the officer/s of the FMDA.

Section 7. Management of the FMDA. The management of the FMDA shall be
headed by a President and Chief Executive Officer who shall be appointed by the Board of

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Directors. Other officer positions may be created by the Board as it shall deem fit. The
Powers, duties, term and compensation of the officers shall be determined by the Board.

Section 8. Qualifications of the President and Chief Executive Officer. The President
and Chief Executive Officer of the FMDA shall chosen from among a shortlist of five
hominated by the Caucus of Development NGO Networks (CODE-NGO) based on these
qualifications:

|. a highly-respected expert in the fields of environmental law and sustainable
development;

2 with at least five years of hands-on top management experience in the running of a
business, foundation, or government agency;

3, hot convicted of any crime or have any pending graft and corruption case before
the Sandiganbayan;

4 at least thirty years old, a Filipino citizen, an active registered voter; and resident
of the Philippines within seven (7) years from the date of nomination; and

5. of sound mind and body as certified by a licensed practicing physician.

Section 9. Powers and Duties of the President. The President shall have the following
powers and duties:

|. To manage the operations of the FMDA as its Chief Executive Officer;

> To prepare the agenda for mectings of the Board and to submit for the
Consideration of the Board proposed policies and measures necessary to carry out

3 To recommend, and execute and administer the policies and measures approved
by the Board;

‘ To represent the FMDA in all dealings with offices, agencies, and
instrumentalities of the government and other entities, public or private, domestic
or foreign;

5 To appoint the other executive officers of the FMDA according to guidelines and
Parameters approved by the Board; and

6. To exercise such other powers as may be delegated/vested in him by the Board.

Section 10. Capitalization. The FMDA shall have an authorized capital stock of One
Billion Pesos (P1,000,000,000.00) divided into Ten (10) Million Shares having a par value
of one hundred (P100.00) pesos each. The entire amount shall be subscribed by the National
Government and to be paid up in accordance with the project funding requirements to be

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Jointly approved by the Secretary of the Department of Budget and Management and the
Secretary of the Department of Finance.

Section 11. Organizational and Staffing Structure. The FMDA shall fill its plantilla
Positions with new recruits and applicants from the general public, civil society, government
service, and private business sector, and returning overseas Filipinos.

The Department of Environment and Natural Resources, in coordination with the
Department of Budget and Management shall formulate and establish the organizational
structure and staffing pattem of the FMDA composed of such administrative and technical
Personnel as may be deemed necessary to efficiently and effectively carry out the functions
and duties prescribed herein, subject to the approval of the Department of Environment and
Natural Resources.

Section 12. Separability. - If any provision or part of this Act is declared invalid or
unconstitutional, the remaining parts or provisions not affected shall continue to be in full
force and effect.

Section 13. Repealing Clause. - All laws, executive orders, and administrative orders
or parts thereof inconsistent with any provision of this Act are hereby repealed or amended
accordingly.

Section 14, Effectivity Clause. - This Act shall take effect fifteen (15) days after its
Publication in the online version of the Official Gazette or in two (2) newspapers of general
circulation or with established internet website presence.

Approved.

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