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

NINETEENTH CONGRESS
First Regular Session

1214

HOUSE BILL NO.

Introduced by REP. FAUSTINO ‘INNO’ A. DY V

EXPLANATORY NOTE

Along the eastern coast of Luzon looms the Sierra Madre mountain range. Known
for its biodiversity and natural resources, the range spans 500 kilometers; it covers three
regions and ten provinces — Cagayan, Isabela, Nueva Vizcaya, Quirino, Nueva Ecija,
Aurora, Rizal, Bulacan, Laguna and Quezon; and — as the storm barrier of Luzon — it
helps protect the lives of more than 50 million Filipinos,

Super Typhoon Lawin in 2016 — a signal no. 5 storm — was weakened to signal
no. 3 after crashing into the Sierra Madre. In 2018, Sierra Madre slowed down typhoon
Ompong’s winds from 200 kilometers per hour to only 160 kilometers per hour? The
‘mountain range also helped weaken Typhoon Ulysses in 2020 from 155 kilometers per
hour to 130 kilometers per hour.

But continued deforestation will weaken Sierra Madre, a danger that is only
worsened by outdated forestry laws. Current laws cannot fully stop illegal logging and
slash-and-burn practices in the area. Moreover, its location across several LGUs Pose a
real challenge in the creation of a unified, long-term plan to conserve and develop the
mountain range. These circumstances will endanger the lives of millions of Filipinos
who live in the shadow of the Sierra Madre if the government will not take decisive
action now.

Needless to say, there is an urgent need to enact measures that will address the
unique challenges in conserving and protecting the Sierra Madre mountain range.

Hence, this Bill.

‘The Sierra Madre Is Luzon’s Strongest Defense Against Typhoons, So Why Is It in Danger?”

https: //www.esquiremag ph /long-reads /features /sierra-madre-typhoon-200304-20201 113.

2 Sierra Madre stifles world's fiercest typhoon this year”
hhttps://businessmirror.com.ph/2018/10/01 /sierra-madre-stifles-worlds-fiercest-typhoon-this-year/.


This Bill seeks to create the Sierra Madre Conservation and Development
Authority. The Authority will take the lead in the formulation and implementation of a
comprehensive long-term plan designed to conserve and protect the resources within the
Sierra Madre region within the framework of sustainable development. As the lead
agency for the Sierra Madre, the Authority will be uniting and coordinating the efforts of
various LGUs and government agencies.

By creating the Sierra Madre Conservation and Development Authority,
Congress helps the State comply with the Constitutional duty to ensure the right of
Filipinos to a healthful and balanced ecology in accordance with the rhythm and harmony
of nature, The aftermath of Typhoon Ulysses has shown us the importance of conserving
the forest cover of the Sierra Madre and further strengthening the storm barrier of
Luzon not only for the present times but also for the future generations.

A similar version of this bill has been approved at the committee level in the 18th
Congress.

In view of the foregoing, the immediate passage of this measure in the 19th
Congress is earnestly sought.

c
(24

ISTINO ‘INNO’ A. DY V


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

NINETEENTH CONGRESS
First Regular Session

HOUSE BILL NO. 1214
SSS
Introduced by REP. FAUSTINO ‘INNO’ A. DY V
SS

AN ACT
ENHANCING THE PROTECTION AND DEVELOPMENT OF THE
SIERRA MADRE RANGE IN THE ISLAND OF LUZON, CREATING FOR
THE PURPOSE THE SIERRA MADRE CONSERVATION AND
DEVELOPMENT AUTHORITY, DEFINING ITS POWERS AND
FUNCTIONS, AND PROVIDING FUNDS THEREFOR

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

CHAPTER I
TITLE, DECLARATION OF POLICY, AND CREATION OF AUTHORITY

SECTION 1. Title. — This Act shall be known as the “Sierra Madre Conservation
and Development Authority Act”.

SECTION 2. Declaration of Policy. — It is hereby declared to be the policy of
the State to promote and accelerate the development and balanced growth of the Sierra
Madre Mountain Range in the Island of Luzon and its surrounding areas, hereinafter
referred to as the Sierra Madre Region, within the context of national and regional goals
and policies for social and economic development, and with due regard for
environmental management and protection, preservation of the quality of human life and
ecological systems, and the prevention of undue ecological disturbances, deterioration,
and illegal activities.

It is likewise the declared policy of the State to enhance the benefits to be derived
from the natural and indigenous resources in the Sierra Madre Region to promote the
economic and social development of the area in particular and the country in general.


For the purpose of this Act, the Sierra Madre Region shall refer to the Sierra
Madre Range and its surrounding areas, straddling the territorial jurisdiction of the
provinces of Cagayan, Isabela, Nueva Vizcaya, Quirino, Nueva Ecija, Aurora, Bulacan,
Rizal, Laguna, and Quezon.

SECTION 3. Creation of the Sierra Madre Conservation and Development
Authority. - There is hereby created a government corporation to be known as the
Sierra Madre Conservation and Development Authority, hereinafter referred to as the
Authority, which shall be organized within ninety (90) days after the approval of this Act
under the Office of the President of the Philippines.

The Authority shall execute the powers and functions herein vested and conferred
upon it in such a manner as will, in its judgment, aid to the fullest possible extent in
carrying out the aims and purposes set forth below.

SECTION 4. Purposes and Functions of the Authority. - The Authority shall
have the following purposes and functions:

(a) To establish the boundary and make a comprehensive survey of the physical and
natural resources and potentialities of the Sierra Madre Region, particularly its
social and economic conditions, hydrologic characteristics, power potentials,
scenic and tourist spots, regional problems, and on the basis thereof, to draft a
comprehensive and detailed plan designed to conserve and utilize optimally the
resources within the Sierra Madre Region to promote its rapid social and
economic development and, upon approval by the National Economic and
Development Authority (NEDA) of such plan, to implement the same including
projects in line with said plan: Provided, That the implementation of all energy
resources development programs shall require the prior consent of the
Department of Energy (DOE) to ensure that such plans and programs are
consistent with the National Energy Program and the Philippine Development
Plan: Provided, further, That the management of protected areas defined under
existing laws within the Sierra Madre Region shall be subject to the monitoring
and supervision of the Authority;

(b) To provide the machinery for extending the necessary planning, management,
and technical assistance to prospective and existing investors in the Sierra
Madre Region;

(c) To make recommendations to the proper agencies on the peso or dollar
financing, technical support, physical assistance, and generally, the level of
priority to be accorded the agricultural, industrial, and commercial projects,
soliciting or requiring direct help from or through the government or any of its
instrumentalities;

(d) To pass upon and approve or disapprove all plans, programs and projects
proposed by local government offices or agencies within the region, public
corporations, and private persons or enterprises where such plans, programs or
projects are related to those of the Authority as envisioned in this Act. In this
connection, the Authority shall issue the necessary clearance for approved


plans, programs, and projects within thirty (30) days from submission thereof
unless the proposals are not in consonance with those of the Authority or shall
cause deforestation or other adverse impacts in the Sierra Madre Region:
Provided, That the Authority is hereby empowered to institute necessary legal
proceedings against any person who shall commence to implement or continue
the implementation of any project, plan, or Program within the Sierra Madre
Region without clearance from the Authority: Provided, further, That any local
government unit, office, agency, public corporation, Private person, or
enterprise whose plans, projects, or programs have been disapproved by the
Authority may appeal the decision of the Authority to the NEDA within fifteen
(15) days from receipt of such disapproval, whose decision on the matter shall
be final. Reasonable processing fees, as may be fixed by the Authority’s Board
of Directors, shall be collected by the Authority for the processing of such
plans, programs, or projects: Provided, furthermore, That expansion plans shall
be considered as new plans subject to review of the Authority and to the
payment of processing fees: Provided, finally, That the Authority and all
national and local government offices, agencies, and public corporations shall
coordinate their plans, programs, and projects, including licensing procedures,
with respect to the Sierra Madre Region for the purpose of drawing up a Sierra
Madre regional development plan which shall be binding upon all parties
concerned upon approval of the NEDA;

(e) To engage in agriculture, industrial, or other activities which may be necessary
or contribute directly to the socio-economic development of the Sierra Madre
Region, and for this purpose, whether by itself or in consideration with private
Persons or entities, to organize, finance, invest in, and operate subsidiary
corporations: Provided, That the Authority shall engage only, unless public
interest requires otherwise, in those activities as are in the nature of new
ventures or are clearly beyond the scope, capacity, or interest of public
enterprises due to consideration of geography, technical or capital
requirements, returns on investment, and risk;

(f) To plan, program, finance, or undertake infrastructure projects such as river,
flood and tidal control works, wastewater and sewerage works, dams and water
supply, roads, irrigation, housing and related works, when so required within the
context of its development plans and programs including the readjustment,
relocation or settlement of the population within the Sierra Madre Region as
may be deemed necessary and beneficial by the Authority: Provided, That
should any project be financed wholly or in part by the Authority, it is hereby
authorized to collect reasonable fees and tolls as may be fixed by the
Authority's Board of Directors, subject to the approval of the NEDA, from
users or beneficiaries thereof to recover costs of construction, operation, and
maintenance of such projects: Provided, further, That if the Authority should
find it necessary to undertake such infrastructure projects which are classified
as social overhead capital projects as determined by the NEDA, the Authority
shall be authorized to receive financial assistance from the government in such
amount as may be necessary to carry out the said projects, subject to such
terms and condition that may be imposed by the government, upon


recommendation of the NEDA: Provided, finally, That such amount necessary
for the purpose is hereby authorized to be appropriated out of the funds of the
National Treasury not otherwise appropriated;

(g) To lend or facilitate the extension of financial assistance or act as surety or
guarantor to worthwhile agricultural, industrial, and commercial enterprises;
(h) To require the cities and municipalities embraced within the Sierra Madre
Region to pass appropriate zoning ordinances and other regulatory measures
necessary to carry out the objectives of the Authority and enforce the same

with the assistance of the Authority;

(i) The provisions of existing laws to the contrary notwithstanding, to exercise
water rights over public waters within the Sierra Madre Region whenever
necessary to carry out the Authority’s projects; and

(j) Undertake studies on the conservation, improvement, exploration, development
and maintenance of the Sierra Madre Region, subject to the approval of the
NEDA, which the Authority shall carry out with the assistance and support of
all national and local government units involved in natural resources
conservation, exploration and development.

SECTION 5. Regulatory Fees. — The Authority is hereby empowered to collect
fees for the use of all resources for beneficial purposes including recreation, resource
extraction, energy development, and disposal of all types of wastes. All the fees so
collected shall be used for the management and development of the Sierra Madre
Region, its forest covers and its watershed areas: Provided, That the rates of the fees to
be collected shall be subject to the approval of the President of the Philippines.

CHAPTER II
CORPORATE POWERS

SECTION 6. The Corporate Powers of the Authority. — The Authority shall
have the following powers and functions:

(a) To succeed on its corporate name;

(b) To sue and be sued in such corporate name;

(c) To adopt, alter, and use a corporate seal;

(4) To adopt, amend, and repeal its by-laws:

(e) To enter into contracts of any kind and description to enable it to carry out its
purposes and functions under this Act:

(f) To acquire, buy, purchase, hold or lease, such personal and real property as it
deems necessary or convenient in the transaction of its business or in relation
with 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 prior or existing individual or communal
right of private parties or of the government or any agency or enterprise
thereof;

(g) To exercise the right of eminent domain whenever the Authority deems it
necessary for the attainment of the objectives of the Authority under this Act;


(h) To borrow funds from any local or foreign financial institutions independent of
the bonds it may issue or may continue to issue, to carry out the purposes of
the Authority under this Act;

(i) To purchase, hold, alienate, mortgage, pledge, or otherwise dispose of, the
shares of the capital stock or any bond, securities, or other evidence of
indebtedness created by any other corporation, co-partnership, or government
agencies or instrumentalities; and while being the owner of said stock, to
exercise all the rights of ownership, including the right to vote thereon:
Provided, That the Authority shall not invest its funds in any highly risky debt
instruments issued without recourse to commercial banks or investment
houses as well as in any highly speculative stocks;

(j) To carry on its business, or for the Purpose of attaining or furthering any of its
objectives, to perform any and all acts which a corporation, co-partnership, or
natural person is authorized to perform under the laws now existing or which
may be enacted hereafter; and

(k) To issue such rules and regulations as may be necessary to effectively carry out
the powers and purposes provided including the plans, programs, and projects
of the Authority. subject to the approval of the NEDA, the same to take effect
thirty (30) days after publication thereof, in a newspaper of general circulation.

SECTION 7. Capitalization and Financing. ~ The Authority shall have an
authorized capital of One billion pesos (P1,000,000,000.00) which shall be fully
subscribed by the Republic of the Philippines: Provided, That an initial operating capital
in the amount of One hundred million pesos (P100,000,000.00) is hereby authorized to
be appropriated out of any funds in the National ‘Treasury not otherwise appropriated.

SECTION 8. Operating Expenses. — For the operating expenses of the Authority,
the sum of One hundred million pesos (P100,000,000.00) is hereby appropriated
annually for five (5) years from the general fund of the National Government not
Otherwise appropriated from the date of approval of this Act, unless the NEDA may
recommend a higher amount.

SECTION 9. Tax Subsidy. — The Authority may avail of the tax expenditure
subsidy administered by the Fiscal Incentives Review Board (FIRB), subject to the
Provisions of Title XIII (Tax Incentives) of the National Internal Revenue Code of 1997,
as amended, Executive Order No. 93, as amended, and the General Appropriations Act.

SECTION 10. Guarantee by the Government. — The Republic of the Philippines
hereby guarantees the payment by the Authority of both the principal and the interest of
the bonds, debentures, collaterals, notes or such other obligations issued by the
Authority by virtue of this Act, and shall pay such principal and interest in the event that
the Authority fails to do so. In case the Authority shall be unable to pay the said principal
and interest, the Secretary of Finance shall pay the amount thereof which is hereby
appropriated out of any funds in the National Treasury not otherwise appropriated, and
thereupon, to the extent of the amounts so paid, the Government of the Republic of the
Philippines shall succeed to all rights of the holders of such bonds, debentures,


collaterals, notes or other obligations, unless the sum so paid by the Republic of the
Philippines shall be refunded by the Authority within a reasonable time.

SECTION 11. Subsidiaries. — The Authority shall have the power to form,
establish, organize and maintain a subsidiary corporation or corporations, Such
subsidiary or subsidiaries shall be formed in accordance with the Revised Corporation
Code of the Philippines and existing rules and regulations promulgated by the Securities
and Exchange Commission (SEC), unless otherwise provided in this Act. In all cases, the
Authority shall own initially fifty-one percent (51%) of the capital stock of a subsidiary.
The Authority shall also initially have the majority seats in the Board of Directors of the
subsidiaries, one (1) director of whom shall be the Chairperson of the Authority, and a
second director shall be the General Manager of the Authority, or a designated
representative. The officials and employees of such subsidiaries shall be deemed private
sector workers whose rights and privileges are governed by the provisions of the Labor
Code of the Philippines and other pertinent laws.

CHAPTER I
BOARD OF DIRECTORS

SECTION 12. Board of Directors: Composition. - The corporate powers of the
Authority shall be vested in and exercised by the Board of Directors, hereinafter
referred to as the Board, which shall be composed of nine (9) members, to wit: the
Executive Secretary, the Director-General of the NEDA, the Secretary of the
Department of Environment and Natural Resources (DENR), the Secretary of the
Department of Trade and Industry (DTI), the Secretary of the Department of Energy
(DOE), the Chairperson of the National Commission on Indigenous Peoples (NCIP), a
Provincial Governor representing the provinces comprising the Sierra Madre region,
who shall be designated and elected by the ten (10) provincial governors, a city or
municipal mayor representing the cities and municipalities comprising the Sierra Madre
Tegion, who shall be designated and elected by the respective mayors and the General
Manager of the Authority to be appointed by the President of the Philippines: Provided,
That the Executive Secretary shall be appointed as the Chairperson and the designated
Provincial Governor as Vice Chairperson. There shall be a Corporate Secretary who
shall be appointed by the Board of Directors.

The officials next in rank to the above-mentioned members shall serve as
permanent alternate members, attend meetings of the Board in the absence of their
principals, and receive the corresponding per diems.

SECTION 13. Board Meetings. — The Board shall meet at least once a month.
The meeting shall be presided by the Chairperson or the Vice-Chairperson, as may be
authorized by the former.

SECTION 14. Quorum; Effect of Vacancies. — The majority of the members of
the Board shall constitute a quorum and the affirmative vote of the majority present shall
be necessary at all times to pass or approve any act or resolution. Vacancies in the Board


as long as there shall be a quorum in attendance, shall not impair the powers of the
Board to exercise the functions of the Authority.

SECTION 15. Per Diems and Allowances. — The members of the Board shall
teceive for every meeting attended a per diem to be determined by the Board: Provided,
That in no case shall the total amount received by each exceed fifty percent (50%) of
their basic monthly pay.

SECTION 16. Power and Functions of the Board of Directors. — The Board
shall exercise the following powers and functions:

(a) To formulate, prescribe, amend, and repeal rules and regulations that govern the
conduct of business of the Authority;

(b) To appoint and fix the compensation of all officials of the Authority from
division heads and above, and others of comparable rank including the Senior
Deputy General Manager and six Deputy General Managers upon the
tecommendation of the General Manager;

(c) By a majority vote of all members of the Board, to suspend, remove or
otherwise discipline for just cause all officials appointed by the Board:

() To approve the annual or supplemental budgets of the Authority; and

(e) To do such other acts and perform such other functions as may be necessary to
carry out the provisions of this Charter.

CHAPTER IV
MANAGEMENT AND PERSONNEL,

SECTION 17. Power and Functions of the General Manager. — The General
Manager shall be the Chief Executive Officer of the Authority who shall have the
following powers and duties:

(a) Submit for consideration of the Board the policies and measures which are
deemed necessary to carry out the purposes and provisions of this Act:

(b) Execute and administer the policies, plans, programs and projects approved by
the Board;

(c) Direct and supervise the operation and internal administration of the Authority,
The General Manager may delegate certain administrative responsibilities to
other officers of the Authority subject to the rules and regulations promulgated
by the Board;

(@) Appoint officials and employees below the rank of Deputy General Managers
to positions in the approved budget upon written recommendation of the
Deputy General Managers concerned in accordance with civil service rules;

(e) Submit quarterly reports to the Board on personnel selection, placement and
training;

(f) Submit to the Office of the President of the Philippines an annual report and
such other reports as may be required, including the details of the annual and
supplemental budgets of the Authority; and


(g) Perform such other functions as may be provided by law or directed by the
Board.

SECTION 18. Residence. — The General Manager shall establish residence within
the Sierra Madre Region and shall not engage in any business or profession or calling
other than those connected in the performance of official duties as General Manager of
the Authority.

SECTION 19. Activities of the Authority: Key Officials. — In carrying out the
activities of the Authority, the General Manager shali be assisted by a Senior Deputy
General Manager who shall have such powers, duties and functions as may be delegated
by the General Manager, and shall act as General Manager in the absence of or during the
temporary incapacity of the latter until such time as a new General Manager is duly
appointed.

The Authority shall have the following departments under the direct supervision
and control of the General Manager:

(a) Administrative Department which shall be responsible for providing services
relating to personnel, training, information, records, supplies, general services,
equipment and security;

(b) Legal Department, to be headed by the General Counsel, who shall represent
the Authority in legal matters and proceedings. This department shall be
responsible for providing legal advice and assistance on legal matters;

(c) Finance Department which shall be responsible for providing staff advice and
assistance in budgetary and financial matters, and safekeeping of corporate
assets;

(d) Project Management Department which shall be responsible for the operation
of approved projects, and conduct Project evaluation and management
improvement matters;

(e) Planning and Project Development Department which shall be responsible for
providing services relating to planning, programming, statistics and project
development; and

(f) Engineering and Technical Services Department, which shall be responsible for
Providing services relating to detailed engineering plans, technical advisory,
construction operations and maintenance of project facilities.

The business and activities of each of these departments shall be directed by an
officer to be known as Deputy General Manager.

The Board may create such other departments, divisions and positions as may be
deemed necessary for the efficient, economical and effective conduct of the activities
of the Authority.

SECTION 20. Audit. — The Board of Directors shall provide and appoint an
Internal Auditor who shall formulate an auditing system for the Authority. The auditor


shall prepare semestral and annual reports covering the financial condition and
Operations of the Authority to the Board. These audit reports shall contain a statement of
the resources and liabilities, including earnings and expenses, the amount of paid-up
capital, surplus, reserves and profits, as well as losses, bad debts and such other data
which, under auditing rules and regulations, are considered necessary to accurately
describe the financial condition and operation of the Authority. The auditor shall Teport
and be directly responsible to the Board,

The Commission on Audit (COA) shall appoint an officer who shall be the
full-time auditor of the Authority, its subsidiaries. The COA may also assign such
Personnel as may be necessary to assist said representative in the performance of duties.

SECTION 21. Compensation. - All Personnel benefits and compensation shall be
subject to the rules and regulations of the Civil Service Commission.

SECTION 22. Authority of the Governance Commission on GOCCs. - The
Authority shall be under the general supervision of the Governance Commission on
GOCCs (GCG).

SECTION 23, Legal Counsel. - Without prejudice to the hiring of an outside
counsel, the Government Corporate Counsel shall be the ex officio legal counsel of the
Authority.

CHAPTER V
MISCELLANEOUS PROVISIONS

SECTION 24. Supervision. ~ The Authority shall be under the direct control and
supervision of the President of the Republic of the Philippines.

SECTION 25. Implementing Rules and Regulations. — Within ninety (90) days
from the approval of this Act, the Board shall promulgate the necessary rules and
regulations for the effective implementation of this Act. The implementing rules and
regulations shall be published in the Official Gazette or in a newspaper of general
circulation.

SECTION 26. Separability Clause. — If any provision of this Act shall be held
unconstitutional or invalid, the other provisions not otherwise affected shall remain in
full force and effect.

SECTION 27. Repealing Clause.— All laws, executive issuances or parts thereof
which are inconsistent herewith are hereby repealed or amended accordingly.

SECTION 28. Effectivity. - This Act shall take effect fifteen (15) days after its
publication in the Official Gazette or in a newspaper of general circulation.

Approved,