Republic Act No.

9275             March 22, 2004

AN ACT PROVIDING FOR A COMPREHENSIVE WATER QUALITY MANAGEMENT AND FOR

OTHER PURPOSES

Be it enacted by the Senate and House of Representatives of the Philippine Congress Assembled:

CHAPTER 1
GENERAL PROVISIONS

ARTICLE 1
DECLARATION OF PRINCIPLES AND POLICIES

SECTION 1. Short Title. - This Act shall be known as the "Philippine Clean Water Act of 2004."

SECTION 2. Declaration of Policy. - The State shall pursue a policy of economic growth in a
manner consistent with the protection, preservation and revival of the quality of our fresh, brackish
and marine waters. To achieve this end, the framework for sustainable development shall be
pursued. As such, it shall be the policy of the State:

a) To streamline processes and procedures in the prevention, control and abatement of

pollution of the country's water resources;

b) To promote environmental strategies, use of appropriate economic instruments and of

control mechanisms for the protection of water resources;

c) To formulate a holistic national program of water quality management that recognizes that
water quality management issues cannot be separated from concerns about water sources
and ecological protection, water supply, public health and quality of life;

d) To formulate an integrated water quality management framework through proper

delegation and effective coordination of functions and activities;

e) promote commercial and industrial processes and products that are environment friendly
and energy efficient;

f) To encourage cooperation and self-regulation among citizens and industries through the
application of incentives and market-based instruments and to promote the role of private
industrial enterprises in shaping its regulatory profile within the acceptable boundaries of
public health and environment;

g) To provide for a comprehensive management program for water pollution focusing on

pollution prevention;

h) To promote public information and education and to encourage the participation of an

informed and active public in water quality management and monitoring;

i) To formulate and enforce a system of accountability for short and long-term adverse
environmental impact of a project, program or activity; and
 j) To encourage civil society and other sectors, particularly labor, the academe and business
undertaking environment-related activities in their efforts to organize, educate and motivate
the people in addressing pertinent environmental issues and problems at the local and
national levels.

SECTION 3. Coverage of the Act. - This Act shall apply to water quality management in all water
bodies: Provided, That it shall primarily apply to the abatement and control of pollution from land
based sources: Provided, further, That the water quality standards and regulations and the civil
liability and penal provisions under this Act shall be enforced irrespective of sources of pollution.

ARTICLE 2
DEFINITION OF TERMS

SECTION 4. Definition of Terms. - As used in this Act:

a) Aquifer - means a layer of water-bearing rock located underground that transmits water in
sufficient quantity to supply pumping wells or natural springs.

b) Aquatic life - means all organisms living in freshwater, brackish and marine environment.

c) Beneficial use - means the use of the environment or any element or segment thereof
conducive to public or private welfare, safety and health; and shall include, but not be limited
to, the use of water for domestic, municipal, irrigation, power generation, fisheries, livestock
raising, industrial, recreational and other purposes.

1. Use of water for domestic purposes - means the utilization of water for drinking,
washing, bathing, cooking or other household needs, home gardens and watering of
lawns or domestic animals;

2. Use of water for municipal purposes - means the utilization of water for supplying
water requirements of the community;

3. Use of water for irrigation - means the utilization of water for producing agricultural
crops;

4. Use of water for power generation - means the utilization of water for producing
electrical or mechanical power;

5. Use of water for fisheries - means the utilization of water for the propagation of
culture of fish as a commercial enterprise;

6. Use of water for livestock raising - means the utilization of water for large herds or
flocks of animals raised as a commercial enterprise;

7. Use of water for industrial purposes - means the utilization of water in factories,
industrial plants and mines, including the use of water as an ingredient of a finished
product; and

8. Use of water for recreational purposes - means the utilization of water for
swimming pools, bath houses, boating, water skiing, golf courses and other similar
facilities in resorts and other places of recreation.
d) Classification/Reclassification of Philippine Waters - means the categorization of all water
bodies taking into account, among others, the following: (1) existing quality of the body of
water; (2) size, depth, surface area covered, volume, direction, rate of flow and gradient of
stream; (3) most beneficial existing and future use of said bodies of water and lands
bordering them, such as for residential, agricultural, aquacultural, commercial, industrial,
navigational, recreational, wildlife conservation and aesthetic purposes; and (4) vulnerability
of surface and groundwater to contamination from pollutive and hazardous wastes,
agricultural chemicals and underground storage tanks of petroleum products.

e) Civil Society - means non-government organizations (NGOs) and people's organizations

(POs).

f) Cleaner Production - means the application of an integrated, preventive environmental

strategy to processes, products, services to increase efficiency and reduce risk to humans
and the environment;

g) Clean-up operations - means activities involving the removal of pollutants discharged or

spilled into a water body and its surrounding areas, and the restoration of the affected areas
to their former physical, chemical and biological state or conditions.

h) Contamination - means the production of substances not found in the natural composition
of water that make the water less desirable or unfit desirable or unfit for intended use.

i) Department - means the Department of Environment and Natural Resources.

j) Discharge includes, but is not limited to, the act of spilling, leaking, pumping, pouring,
emitting, emptying, releasing or dumping of any material into a water body or onto land from
which it might flow or drain into said water.

k) Drinking water- means water intended for human consumption or for use in food
preparation.

l) Dumping - means any unauthorized or illegal disposal into any body of water or land of
wastes or toxic or hazardous material: Provided, That it does not mean a release of effluent
coming from commercial, industrial, and domestic sources which are within the effluent
standards.

m) Effluent - means discharge from known sources which is passed into a body of water or
land, or wastewater flowing out of a manufacturing plant, industrial plant including domestic,
commercial and recreational facilities.

n) Effluent standard - means any legal restriction or limitation on quantities, rates, and/or
concentrations or any combination thereof, of physical, chemical or biological parameters of
effluent which a person or point source is allowed to discharge into a body of water or land.

o) Environmental management - means the entire system which includes, but is not limited
to, conservation, regulation and minimization of pollution, clean production, waste
management, environmental law and policy, environmental education and information, study
and mitigation of the environmental impacts of human activity, and environmental research.
p) Environmental management system - means the part of the overall management system
that includes organizational structure, planning activities, responsibilities, practices,
procedures, processes and resources for developing, implementing, achieving, reviewing
and maintaining the environment policy.

q) Freshwater - means water containing less than 500 ppm dissolved common salt, sodium
chloride, such as that in groundwater, rivers, ponds and lakes.

r) Groundwater - means a subsurface water that occurs beneath a water table in soils and
rocks, or in geological formations.

s) Groundwater vulnerability - means relative ease with which a contaminant located at or

near the land surface can migrate to the aquifer or deep well.

t) Groundwater vulnerability map - means the identified areas of the land surface where
groundwater quality is most at risk from human activities and shall reflect the different
degrees of groundwater vulnerability based on a range of soil properties and hydro
geological criteria to serve as guide in the protection of the groundwater from contamination.

u) Hazardous waste - means any waste or combination of wastes of solid liquid, contained
gaseous, or semi-solid form which cause, of contribute to, an increase in mortality or an
increase in serious irreversible, or incapacitating reversible illness, taking into account
toxicity of such waste, its persistence and degradability in nature, its potential for
accumulation or concentration in tissue, and other factors that may otherwise cause or
contribute to adverse acute or chronic effects on the health of persons or organism.

v) Industrial waste - means any solid, semi-solid or liquid waste material with no commercial
value released by a manufacturing or processing plant other than excluded material.

w) Integrated Water Quality Management Framework - means the policy guideline

integrating all the existing frameworks prepared by all government agencies contain the
following; water quality goals and targets; (b) period of compliance; (c) water pollution control
strategies and techniques; (d) water quality information and education program; (e) human
resources development program.

x) Margin - means a landward and outer limiting edge adjacent to the border of any water
bodies or a limit beyond where beyond where saturation zone ceases to exist.

y) National Water Quality Status Report - means a report to be prepared by the Department
indicating: a) the location of water bodies, their quality, taking into account seasonal, tidal
and others variations, existing and potential uses and sources of pollution per specific
pollutant and pollution load assessment; b) water quality management areas pursuant to
Section 5 of this Act; c) and water classification.

z) Non-point source - means any source of pollution not identifiable as point source to
include, but not be limited to, runoff from irrigation or rainwater, which picks up pollutants
from farms and urban areas.

aa) Point source - means any identifiable source of pollution with specific point of discharge
into a particular water body.
bb) Pollutant- shall refer to any substance, whether solid, liquid, gaseous or radioactive,
which directly or indirectly:

(i) alters the quality of any segment of the receiving water body to affect or tend to
affect adversely any beneficial use thereof;

(ii) is hazardous or potential hazardous to health;

(iii) imparts objectionable odor, temperature change, or physical, chemical or

biological change to any segment of the water body; or

(iv) is in excess of the allowable limits, concentrations, or quality standards specified,

or in contravention of the condition, limitation or restriction prescribed in this Act.

cc) Pollution control technology- means pollution control devices or apparatus, processes, or
other means that effectively prevent control or reduce pollution of water caused by effluents
and other discharges, from any point source at levels within the water pollution standards.

dd) Potentially infectious medical waste- include isolation wastes, infectious agents, human
blood and blood products, pathological wastes, sharps, body parts, contaminated bedding,
surgical wastes, and other disposable medical equipment and material that may pose a risk
to the public health, welfare or the marine environment.

ee) Secretary - means the Secretary of the Department of Environmental and Natural
Resources (DENR).

ff) Septage - means the sludge produced on individual onsite wastewater disposal systems,
principally septic tanks and cesspools.

gg) Sewage - means water-borne human or animal wastes, excluding oil or oil wastes,
removed from residences, building, institutions, industrial and commercial establishments
together with such groundwater, surface water and storm water as maybe present including
such waste from vessels, offshore structures, other receptacles intended to receive or retain
waste or other places or the combination thereof.

hh) Sewerage - includes, but is not limited to, any system or network of pipelines, ditches,
channels, or conduits including pumping stations, lift stations and force mains, service
connections including other constructions, devices, and appliances appurtenant thereto,
which includes the collection, transport, pumping and treatment of sewage to a point of
disposal.

ii) Sludge - means any solid, semi-solid or liquid waste or residue generated from a
wastewater treatment plant, water supply treatment plant, or water control pollution facility, or
any other such waste having similar characteristics and effects.

jj) Surface water - means all water, which is open to the atmosphere and subject to surface
runoff.

kk) Treatment - means any method, technique, or process designed to alter the physical,
chemical or biological and radiological character or composition of any waste or wastewater
to reduce or prevent pollution.
 ll) Toxic amount - means the lowest amount of concentration of toxic pollutants, which may
cause chronic or long-term acute or lethal conditions or effects to the aquatic life, or health of
persons or which may adversely affect designated water uses.

mm) Waste - means any material either solid, liquid, semisolid, contained gas or other forms
resulting industrial, commercial, mining or agricultural operations, or from community and
household activities that is devoid of usage and discarded.

nn) Wastewater - means waste in liquid state containing pollutants.

oo) Water body - means both natural and man-made bodies of fresh, brackish, and saline
waters, and includes, but is not limited to, aquifers, groundwater, springs, creeks, streams,
rivers, ponds, lagoons, water reservoirs, lakes, bays, estuarine, coastal and marine waters.
Water bodies do not refer to those constructed, developed and used purposely as water
treatment facilities and / or water storage for recycling and re-use which are integral to
process industry or manufacturing.

pp) Water Pollution - means any alteration of the physical, chemical, biological, or
radiological properties of a water body resulting in the impairment of its purity or quality.

qq) Water Quality - means the characteristics of water, which define its use in characteristics
by terms of physical, chemical, biological, bacteriological or radiological characteristics by
which the acceptability of water is evaluated.

rr) Water quality guidelines - means the level for a water constituent or numerical values of
physical, chemical, biological and bacteriological or radiological parameters which are used
to classify water resources and their use, which does not result in significant health risk and
which are not intended for direct enforcement but only for water quality management
purposes, such as determining time trends, evaluating stages of deterioration or
enhancement of the water quality, and as basis for taking positive action in preventing,
controlling or abating water pollution.

ss) Water Quality Management Area Action Plan - includes, but not be limited to, the
following: (a) goals and targets including sewerage or septage program, (b) schedule of
compliance to meet the applicable requirements of this Act; (c) water pollution control
strategies or techniques; (d) water quality information and education program; e) resource
requirement and possible sources; f) enforcement procedures of the plan and (g) rewards
and incentives under Chapter 4 of this Act.

CHAPTER 2
WATER QUALITY MANAGEMENT SYSTEM

ARTICLE 1
GENERAL PROVISIONS

SECTION 5. Water Quality Management Area. - The Department, in coordination with National
Water Resources Board (NWRB), shall designate certain areas as water quality management areas
using appropriate physiographic units such as watershed, river basins or water resources regions.
Said management areas shall have similar hydrological, hydrogeological, meteorological or
geographic conditions which affect the physicochemical, biological and bacteriological reactions and
diffusions of pollutants in the water bodies, or otherwise share common interest or face similar
development programs, prospects or problems.

Said management area shall be governed by a governing board composed of representatives of

mayors and governors of member local government units (LGUs), and representatives of relevant
national government agencies, duly registered non-governmental organization, water utility sector,
and business sector. The Department representative shall chair the governing board. In the case of
the LGUs with memberships on more than one (1) management board, the LGU shall designate only
one (1) single representative for all the management areas wherein is a member.

The governing board shall formulate strategies to coordinate policies necessary for the effective
implementation of this Act in accordance with those established in the framework and monitor the
compliance with the action plan.

Each management area shall create a multi-sectoral group to establish and affect water quality
surveillance and monitoring network including sampling schedules and other similar activities. The
group shall submit its report and recommendation to the chairman of the governing board.

A technical secretariat for each management area is hereby created which shall be part of the
department and shall provide technical support to the governing board. They shall be composed of
at least four (4) members who shall have the following minimum qualifications:

a) One (1) member shall be a member of the Philippines Bar;

b) One (1) member shall be a Chemical Engineer, Chemist, Sanitary Engineer,

Environmental Engineer or Ecologist or significant training and experience in chemistry;

c) One (1) member shall be a Civil Engineer or Hydrologist or Significant training and
experience in closely related fields and experience on ground water, respectively; and

d) One (1) member shall be a Geologist, Biologist, or significant training and experience in
closely related fields.

The areas within the jurisdiction of the Laguna Lake Development Authority (LLDA) shall be
designated as one management area under the administration of LLDA in accordance with R.A. No.
4850, as amended: Provided, However, That the standards promulgated pursuant to this Act and
wastewater charge system established pursuant hereof shall be enforced in said area.

SECTION 6. Management of Non-attainment Areas. - The Department shall designate water

bodies, or portions thereof, where specific pollutants from either natural or man-made source have
already exceeded water quality guidelines as non-attainment areas for the exceeded pollutants. It
shall prepare and implement a program that will not allow new sources of exceeded water pollutant
in non-attainment areas without a corresponding reduction in discharges from existing sources;
Provided, That if the pollutant is naturally occurring, e.g. naturally high boron and other elements in
geothermal areas, discharge of such pollutant may be allowed: Provided, further, That the effluent
concentration of discharge shall not exceed the naturally occurring level of such pollutant in the area:
Provided, Finally, That the effluent concentration and volume of discharge shall not adversely affect
water supply, public health and ecological protection.

The Department shall, in coordination with NWRB, Department of Health (DOH), Department of
Agriculture (DA), governing board and other concerned government agencies and private sectors
shall take such measures as may be necessary to upgrade the quality of such water in non-
attainment areas to meet the standards under which it has been classified.

Upgrading of water quality shall likewise include undertakings, which shall improve the water quality
of a water body to a classification that will meet its projected or potential use.

The LGUs shall prepare and implement contingency plans and other measures including relocation,
whenever necessary, for the protection of health and welfare of the residents within potentially
affected areas.

SECTION 7. National Sewerage and Septage Management Program. - The Department of Public
Works and Highways (DPWH), through its relevant attached agencies, in coordination with the
Department, local government units (LGUs) and other concerned agencies, shall, as soon as
possible, but in no case exceeding a period of twelve (12) months from the affectivity of this Act,
prepare a national program on sewerage and septage management in connection with Section 8
hereof.

Such program shall include a priority listing of sewerage, septage and combined sewerage-septage
projects for LGUs based on population density and growth, degradation of water resources,
topography, geology, vegetation, program/projects for the rehabilitation of existing facilities and such
other factors that the Secretary may deem relevant to the protection of water quality. On the basis of
such national listing, the national government may allot, on an annual basis, funds for the
construction and rehabilitation of required facilities.

Each LGU shall appropriate the necessary land, including the required rights-of-way/road access to
the land for the construction of the sewage and/or septage treatment facilities.

Each LGU may raise funds to subsidize necessary expenses for the operation and maintenance of
sewerage treatment or septage facility servicing their area of jurisdiction through local property taxes
and enforcement of a service fee system.

SECTION 8. Domestic Sewage Collection, Treatment and Disposal. - Within five (5) years
following the effectivity of this Act, the Agency vested to provide water supply and sewerage facilities
and/or concessionaires in Metro Manila and other highly urbanized cities (HUCs) as defined in
Republic Act No. 7160, in coordination with LGUs, shall be required to connect the existing sewage
line found in all subdivisions, condominiums, commercial centers, hotels, sports and recreational
facilities, hospitals, market places, public buildings, industrial complex and other similar
establishments including households to available sewerage system. Provided, That the said
connection shall be subject to sewerage services charge/fees in accordance with existing laws, rules
or regulations unless the sources had already utilized their own sewerage system: Provided, further,
That all sources of sewage and septage shall comply with the requirements herein.

In areas not considered as HUCs, the DPWH in coordination with the Department, DOH and other
concerned agencies, shall employ septage or combined sewerage-septage management system.

For the purpose of this section, the DOH, coordination with other government agencies, shall
formulate guidelines and standards for the collection, treatment and disposal of sewage including
guidelines for the establishment and operation of centralized sewage treatment system.

SECTION 9. National Water Quality Management Fund. - A water quality management fund, to be
administered by the Department, in coordination with other concerned agencies, as a special
account in the National Treasury is hereby established. The fund shall be used to finance the
following:

a) Finance containment and clean-up operations of the government in water pollution cases;

b) Guarantee restoration of ecosystems and rehabilitation of affected areas;

c) Support research, enforcement and monitoring activities;

d) Provide technical assistance to the implementing agencies;

e) Grant rewards and incentives;

f) Support information and educational campaign; and

g) Such other disbursements made solely for the prevention, control or abatement of water
pollution and management and administration of the management areas in the amounts
authorized by the Department.

The fines imposed and damages awarded to the government by the Pollution Adjudication Board
(PAB), proceeds of permits issued by the Department under this Act, donations, endowments and
grants in the form of contributions to the national government under this Act shall form part of the
fund. Such donations, endowments and grants shall be exempt from donor's taxes and all other
taxes, charges or fees imposed by the government and shall be deductible from the gross income of
the donor for income tax purposes.

Disbursements from the fund shall be subject to the usual accounting and budgeting rules and
regulations.

SECTION 10. The Area Water Quality Management Fund. - The area water quality management
fund is hereby established for the maintenance and upkeep of the water bodies in a water quality
management area. The fund shall be utilized for the grant of rewards and incentives for entities
whose effluent discharges are better than the water quality criteria of the target classification of the
receiving body of water, loans for acquisitions and repairs of facilities to reduce quantity and improve
quality of wastewater discharges, and regular maintenance of the water bodies within the
management area.

An amount of not more than ten percent (10%) of the total amount accruing to the funds annually
shall be allocated for the operational expenses of the governing board, its secretariat and multi-
sectoral water quality surveillance and monitoring network.

This fund shall initially be sourced from the fines incurred by the establishments located in rural
areas before the effectivity of this Act. Thereafter, the fees collected under the wastewater charge
system established under Section 13 of this Act, donations, endowments and grants for water quality
management of the area shall accrue to the fund.

Disbursements from the fund shall be subject to the usual accounting and budgeting rules and
regulations. This fund shall be managed by the Board of the corresponding management area.

SECTION 11. Water Quality Variance for Geothermal and Oil and Gas Exploration. - The
Department may provide variance in water quality criteria and standards for geothermal exploration
that encounters re-injection constraints: Provided, That there shall be provision for adequate
protection of beneficial use of water bodies, downstream of the geothermal project: Provided, further,
That this provision may be applied to oil and gas exploration as determined by the Department.

SECTION 12. Categories of Industry Sector. - Within twenty-four (24) months from the effectivity
of this Act, and every two (2) years thereafter, the Department shall, through due public consultation,
revise and publish a list of categories of industry sector for which effluent standards will be provided
for each significant wastewater parameter per industry sector.

The Department shall provide additional classification based on other parameters specifically
associated to discharge of a particular industry which shall be included in the listing of categories
prescribed in the preceding paragraph.

ARTICLE 2
WATER POLLUTION PERMITS AND CHARGES

SECTION 13. Wastewater Charge System. - The Department shall implement a wastewater

charge system in all management areas including the Laguna Lake Region and Regional Industrial
Centers through the collection of wastewater charges/fees. The system shall be established on the
basis of payment to the government for discharging wastewater into the water bodies. Wastewater
charges shall be established taking into consideration the following:

a) To provide strong economic inducement for polluters to modify their production or

management processes or to invest in pollution control technology in order to reduce the
amount of water pollutants generated;

b) To cover the cost of administering water quality management or improvement programs;

c) Reflect damages caused by water pollution on the surrounding environment, including the
cost of rehabilitation;

d) Type of pollutant;

e) Classification of the receiving water body; and

f) Other special attributes of the water body.

The fee shall be based on the net waste load depending on the wastewater, charge formula which
shall be established with due public consultation within six (6) months from the effectivity of this Act:
Provided, That net waste load shall refer to the difference of the initial waste load of the abstracted
water and the waste load of the final effluent discharge of an industry: Provided, further, That no net
waste load shall be lower than the initial waste load: Provided, finally, That wastewater charge
system shall not apply to wastewater from geothermal exploration.

Industries whose water effluent are within standards promulgated pursuant to this Act, shall only be
charged with minimal reasonable amount which shall be determined by the Department after due
public consultation, giving account to volumetric rate of discharge and effluent concentration.

SECTION 14. Discharge Pemits. - The Department shall require owners or operators of facilities
that discharge regulated effluents pursuant to this Act to secure a permit to discharge. The discharge
permit shall be the legal authorization granted by the Department to discharge wastewater:
Provided, That the discharge permit shall specify among others, the quantity and quality of effluent
that said facilities are allowed to discharge into a particular water body, compliance schedule and
monitoring requirement.

As part of the permitting procedure, the Department shall encourage the adoption of waste
minimization and waste treatment technologies when such technologies are deemed cost effective.
The Department shall also develop procedures to relate the current water quality guideline or the
projected water quality guideline of the receiving water body/ies with total pollution loadings from
various sources, so that effluent quotas can be properly allocated in the discharge permits. For
industries without any discharge permit, they may be given a period of twelve {12) months after the
effectivity of the implementing rules and regulations promulgated pursuant to this Act, to secure a
discharge permit.

Effluent trading may be allowed per management area.

ARTICLE 3
FINANCIAL LIABILITY MECHANISM

SECTION 15. Financial Liability for Environmental Rehabilitation. - The Department shall

require program and project proponents to put up environmental guarantee fund {EGF) as part of the
environmental management plan attached to the environmental compliance certificate pursuant to
Presidential Decree No.1586 and its implementing rules and regulations. The EGF shall finance the
maintenance of the health of the ecosystems and specially the conservation of watersheds and
aquifers affected by the development, and the needs of emergency response, clean-up or
rehabilitation of areas that may be damaged during the program's or project's actual implementation.
Liability for damages shall continue even after the termination of a program or project and, until the
lapse of a given period indicated in the environmental compliance certificate, as determined by the
Department. The EGF may be in the form of a trust fund, environmental insurance, surety bonds,
letters of credit, self-insurance and any other instruments which may be identified by the
Department. The choice of the guarantee instrument or combinations thereof shall depend, among
others, on the assessment of the risks involved and financial test mechanisms devised by the
Department. Proponents required to put up guarantee instruments shall furnish the Department with
evidence of availment of such instruments from accredited financial instrument providers.

SECTION 16. Clean-Up Operations. - Notwithstanding the provisions of Sections 15 and 26 hereof,

any person who causes pollution in or pollutes water bodies in excess of the applicable and
prevailing standards shall be responsible to contain, remove and clean-up any pollution incident at
his own expense to the extent that the same water bodies have been rendered unfit for utilization
and beneficial use: Provided, That in the event emergency clean-up operations are necessary and
the polluter fails to immediately undertake the same, the Department, in coordination with other
government agencies concerned, shall conduct containment, removal and clean-up operations.
Expenses incurred in said operations shall be reimbursed by the persons found to have caused such
pollution upon proper administrative determination in accordance with this Act. Reimbursements of
the cost incurred shall be made to the Water Quality Management Fund or to such other funds
where said disbursements were sourced.

SECTION 17. Programmatic Environmental Impact Assessment. - The Department shall

implement programmatic compliance with the environmental impact assessment system, as in the
following types of development:
 a) development consisting of a series of similar projects, or a project subdivided into several
phases and/or stages whether situated in a contiguous area or geographically dispersed;
and

b) development consisting of several components or a cluster of projects co-located in an

area such as an industrial estate, an export processing zone, or a development zone
identified in a local land use plan.

Programmatic compliance with the environmental impact assessment system shall be guided by
carrying capacity assessments determined from ecological profiles. Ecological profiles shall Identify
environmental constraints and opportunities in programmatic areas. Programmatic assessment shall
also take into account cumulative impacts and risks.

Consistent with the provisions of the Local Government Code, the Department may enter into
agreement with LGUs to incorporate programmatic environmental impact assessment into the
preparation, updating or revision of local land use plans and area development plans.

SECTION 18. Environmental Impact Assessment System Programmatic Compliance with

Water Quality Standards. - The. Department may allow each regional industrial center established
pursuant to Republic Act No.7916 (PEZA law) to allocate effluent quotas to pollution sources within
its jurisdiction that qualify under an environmental impact assessment system programmatic
compliance program in accordance with Presidential Decree No. 15867 and its implementing rules
and regulations.

CHAPTER 3
INSTITUTIONAL MECHANISM

SECTION 19. Lead Agency. - The Department shall be the primary government agency responsible
for the implementation and enforcement of this Act unless otherwise provided herein. As such, it
shall have the following functions, powers and responsibilities:

a) Prepare a National Water Quality Status Report within twenty-four (24) months from the
effectivity of this Act: Provided, That the Department shall thereafter review or revise and
publish annually, or as the need arises, said report;

b) Prepare an Integrated Water Quality Management Framework within twelve (12) months
following the completion of the status report;

c) Prepare a ten (10) year Water Quality Management Area Action Plan within twelve (12)
months following the completion of the framework for each designated water management
area. Such action plan shall be reviewed by the water quality management area governing
board every five (5) years or as need arises;

d) Prepare and publish a national a national groundwater vulnerability map incorporating the
prevailing standards and methodologies, within twenty four (24) months after the effectivity of
this Act;

e) Enforce, review and revise within twelve (12) months from the effectivity of this Act water
quality guidelines after due consultation with the concerned stakeholder sectors: Provided,
That the Department, in coordination with appropriate agencies shall review said guidelines
every five (5) years or as need arises;
f) Review and set effluent standards every five (5) years from the effectivity of this Act or
sooner as determined by the Department: Provided, That in the interim, the provisions of
DENR Administrative Order No. 35 of the Department shall apply: Provided, further, That
when new and more stringent standards are set in accordance with this section, the
Department may establish a grace period with a maximum of five (5) years: Provided, finally,
That such grace period shall be limited to the moratorium on the issuance of cease and
desist and/or closure order against the industry's operations except in the event such
operation poses serious and grave threat to the environment, or the industry fails to institute
retooling, upgrading or establishing an environmental management system (EMS).

g) Establish within twelve (12) months from the effectivity of this Act, internationally-accepted
procedures for sampling and analysis of pollutants and in coordination with other concerned
agencies, formulate testing procedures and establish an accreditation system for
laboratories;

h) Within eighteen (18) months from the effectivity of this Act and every two (2) years
thereafter, categorize point and non-point sources of water pollution;

i) Classify groundwater sources within twelve (12) months from the effectivity of this Act;

j) Classify or reclassify all water bodies according to their beneficial usages: Provided, that in
the interim, the provisions of DENR Administrative Order No.34 shall apply: Provided,
further, that such classification or reclassification shall take into consideration the operation
of businesses or facilities that are existing prior to the effectivity of the Act: Provided,
furthermore, that the Department may authorize the use of the water for other purposes that
are more restrictive in classification: Provided, finally, That discharges resulting from such
use shall meet the effluent standards set by the Department;

k) Exercise jurisdiction over all aspects of water pollution, determine its location, magnitude,
extent, severity, causes, effects and other pertinent information on pollution, and to take
measures, using available methods and technologies to prevent and abate such pollution;

l) Exercise supervision and control over all aspects of water quality management;

m) Establish a cooperative effort in partnership with the government, LGUs, academic

institutions, civil society and the private sector to attain the objectives of this Act;

n) Disseminate information and conduct educational awareness and value formation

programs and campaigns on the effects of water pollution on health and environment, water
quality management, and resource conservation and recovery to encourage an
environmentally action-oriented society in coordination with government agencies identified
in Section 22 (f);

o) Promote. and encourage private and business sectors especially manufacturing and
processing plants the use of water quality management systems equipment, including but
not limited to, industrial wastewater treatment collection and treatment facilities;

p) Report, on an annual basis, to Congress the, quality status of water bodies and other
pertinent information and recommend possible legislation, policies and programs for
environmental management and water pollution control;
 q) Issue rules and regulations for the effective implementation of the provisions of this Act;

r) Issue orders against any person or entity and impose fines, penalties and other
administrative sanctions to compel compliance with water quality the provisions of this Act;

s) Undertake appropriate protocol with other concerned agencies for immediate coordinated
responses to water related emergency incidents;

t) Issue permits, clearances and similar instruments pursuant to this Act; and

u) Exercise such powers and perform such other functions as may be necessary to carry out
the objectives of this Act

The Department shall gradually devolve to the LGUs, and to the governing boards the authority to
administer some aspects of water quality management and regulation, including, but not to be
limited to, permit issuance, monitoring and imposition of administrative penalties, when, upon the
Department's determination, the LGU or the governing board has demonstrated readiness and
technical capability to undertake such functions.

SECTION 20. Role of Local Government Units. - Local government units shall share the
responsibility in the management and improvement of water quality within their territorial
jurisdictions.

Each local government unit shall within six (6) months after the establishment of the water quality
management area action plan prepare a compliance scheme in, accordance thereof, subject to
review and approval of the governing board.

Each local government unit shall, through its Environment and Natural Resources Office (ENRO)
established in Republic Act No.7160, have the following powers and functions:

a) Monitoring of water quality;

b) Emergency response;

c) Compliance with the framework of the Water Quality Management Action Plan;

d) To take active participation in all efforts concerning water quality protection and
rehabilitation; and

e) To coordinate with other government agencies and civil society and the concerned sectors
in the implementation of measures to prevent and control water pollution: Provided, however,
That in provinces/cities/municipalities where there are no environment and natural resources
officers, the local executive concerned may, with the approval of the Secretary of the DENR
designate any of his official and/or chief of office preferably the provincial, city or municipal
agriculturist, or any of his employee: Provided, finally, That in case an employee is
designated as such, he must have sufficient experience in environmental and natural
resources management, conservation and utilization.

SECTION 21. Business and Industry Role in Environmental Management. - The Department

and the LGUs, in coordination with the appropriate government agencies. and in consultation with
the business and industrial sectors including commerce, shall formulate appropriate incentives for
the adoption procedures that will preserve and protect our water bodies through the introduction of
innovative equipment and processes that reduce if totally eliminate discharge of pollutants into our
water bodies.

SECTION 22. Linkage Mechanism. - The Department and its concerned attached agencies
including LLDA shall coordinate and enter into agreement with other government agencies, industrial
sector and other concerned sectors in the furtherance of the objectives of this Act- The following
agencies shall perform tile functions specified hereunder:

a) Philippine Coast Guard in coordination with DA and the Department shall enforce for the
enforcement of water quality standards in marine waters, set pursuant to this Act, specifically
from offshore sources;

b) DPWH through its attached agencies, such as the MWSS, LWUA, and including other
urban water utilities for the provision or sewerage and sanitation facilities and the efficient
and safe collection, treatment and disposal of sewage within their area of jurisdiction;

c) DA, shall coordinate with the Department, in the formulation of guidelines for the re-use of
wastewater for irrigation and other agricultural uses and for the prevention, control and
abatement of pollution from agricultural and aquaculture activities: Provided, That discharges
coming from non-point sources be categorized and further defined pursuant to this
Act: Provided, further, That the Bureau of Fisheries and Aquatic Resources (BFAR) of the
DA shall be primarily responsible for the prevention and control of water pollution for the
development, management and conservation of the fisheries and aquatic resources;

d) DOH shall be primarily responsible for the promulgation, revision and enforcement of
drinking water quality standards;

e) DOST, in coordination with the Department and other concerned agencies, shall prepare
a program for the evaluation, verification, development and public dissemination of pollution
prevention and cleaner production technologies; and

f) Department of Education (DepEd), Commission Higher Education (CHED), Department of

the Interior and Local Government (DILG) and Philippine Information Agency (PIA) shall
assist and coordinate with the Department in, the preparation and implementation of a
comprehensive program pursuant to the objectives of this Act.

SECTION 23. Requirement of Record-keeping, Authority for Entry to Premises and Access to

Documents. - The Department or its duly authorized representative shall, after proper consultation
and notice, require any person who owns or operates any pollution source or who is subject to. any
requirement of this Act to submit reports and other written information as may be required by the
department.

Any record, report or information obtained under this section shall be made available to the public,
except upon a satisfactory showing to the Department by the, entity concerned that the record,
report, or information or parts thereof, if made public, would divulge secret methods or processes
entitled to protection as intellectual property. Such record, report or information shall likewise be
incorporated in the Department's industrial rating system. Pursuant to this Act, the Department,
through it's authorized representatives, shall have the right to: (a) enter any premises or to have
access to documents and relevant materials as referred to in the herein preceding paragraph; (b)
inspect any pollution or waste source, control device, monitoring equipment or method required; and
(c) test any discharge.
In cases of fish kill incidence, the Bureau of Fisheries of the DA, in the course of its investigation,
may enter the premises of an establishment reported to have caused said incident.

SECTION 24. Pollution Research and Development Programs. - The Department, in coordination

with the Department of Science and Technology (DOST), other concerned agencies and academic
research institutions, shall establish a national research and development program for the prevention
and control of water pollution. As part of said program, the DOST shall conduct and promote the
coordination and acceleration of research, investigation, experiments, training, survey and studies
relating to the causes, extent, prevention and control of pollution among concerned government
agencies and research institutions.

CHAPTER 4
INCENTIVES AND REWARDS

SECTION 25. Rewards. - Rewards, monetary or otherwise, shall be provided to individuals, private

organization and entities, including civil society, that have undertaken outstanding and innovative
projects, technologies, processes and techniques or activities in water quality management. Said
rewards shall be sourced from the Water Quality Management Fund herein created.

SECTION 26. Incentives Scheme. - An incentive scheme is hereby provided for the purpose of
encouraging LGUs, water districts (WDs), enterprises, or private entities, and individuals, to develop
or undertake an effective water quality management, or actively participate in any program geared
towards the promotion thereof as provided in this Act.

A. Non-fiscal incentive

1. Inclusion in the Investments Priority Plan (IPP). - Subject to the rules and regulations of
the Board of Investments (BOI), industrial wastewater treatment and/or adoption of water
pollution control technology, cleaner production and waste minimization technology shall be
classified as preferred areas of investment under its annual priority plan and shall enjoy the
applicable fiscal and non-fiscal incentives as may be provided for under the Omnibus
Investment Code, as amended.

Fiscal Incentives

1. Tax and Duty Exemption on Imported Capital Equipment. - Within ten 10) years upon the
effectivity of this Act, LGUs, WDs, enterprises or private entities shall enjoy tax-and-duty-free
importation of machinery, equipment and spare parts used for industrial wastewater
treatment/collection and treatment facilities: Provided, That the importation of such
machinery, equipment and spare parts shall comply with the following conditions:

a) They are not manufactured domestically in sufficient quantity, of comparable

quality and at reasonable prices;

b) They are reasonably needed and will be used actually, directly and exclusively for
the above mentioned activities; and

c) Written endorsement by the Department that the importation of such machinery,

equipment and spare parts would be beneficial to environmental protection and
management: Provided, further, That the sale, transfer or disposition of such
machinery, equipment and spare parts without prior approval of the BOI within five
 (5) years from the date of acquisition shall be prohibited, otherwise the LGU
concerned, WD, enterprise or private entity and the concerned vendee, transferee or
assignee shall be solidarity liable to pay twice the amount of tax and duty exemption
given it.

2. Tax Credit on Domestic Capital Equipment. - Within ten (10) years from the effectivity of
this Act, a tax credit equivalent to one hundred percent (100%) of the value of the national
internal revenue taxes and customs duties that would have been waived on the machinery,
equipment, and spare parts, had these items been imported shall be given to enterprises or
private entities and individuals, subject to the same conditions and prohibition cited in the
preceding paragraph.

3. Tax and Duty Exemption of Donations, Legacies and Gifts. - All legacies, gifts and
donations to LGUs, WDs, enterprises, or private entities and individuals, for the support and
maintenance of the program for effective water quality management shall be exempt from
donor's tax and shall be deductible from the gross income of the donor for income tax
purposes.

Imported articles donated to, or for the account of any LGUs, WDs, local water utilities,
enterprises, or private entities and individuals to be exclusively used for water quality
management programs shall be exempted from the payment of customs duties and
applicable internal revenue taxes.

Industrial wastewater treatment and/or installation of water pollution control devices shall be
classified as pioneer and preferred areas of investment under the BOI's annual priority plan
and shall enjoy- the applicable fiscal and non-fiscal incentives as may be provided for under
the Omnibus Investment Code, as amended.

B. Financial Assistance Program

Government financial institutions such as the Development Bank of the Philippines, Land
Bank of the Philippines, Government Service Insurance System, and such other government
institutions providing financial services shall, in accordance with and to the extent allowed by
the enabling provisions of their respective charters or applicable laws, accord high priority to
extend financial services to LGUs, WDs, enterprises, or private entities engaged in sewage
collection and treatment facilities.

C. Extension or Grants to LGUs

Cities and municipalities which shall establish or operate sewerage facilities may be entitled to
receive grants for the purpose of developing technical capabilities.

CHAPTER 5
CIVIL LIABILITY/PENAL PROVISIONS

SECTION 27. Prohibited Acts. - The following acts are hereby prohibited:

a) Discharging, depositing or causing to be deposited material of any kind directly or

indirectly into the water bodies or along the margins of any surface water, where, the same
shall be liable to be washed into such surface water, either by tide action or by storm, floods
or otherwise, which could cause water pollution or impede natural flow in the water body;
b) Discharging, injecting or allowing to seep into the soil or sub-soil any substance in any
form that would pollute groundwater. In the case of geothermal projects, and subject to the
approval of the Department, regulated discharge for short- term activities (e.g. well testing,
flushing, commissioning, venting) and deep re-injection of geothermal liquids may be
allowed: Provided, That safety measures are adopted to prevent the contamination of the
groundwater;

c) Operating facilities that discharge regulated water pollutants without the valid required
permits or after the permit was revoked for any violation of any condition therein;

d) Disposal of potentially infectious medical waste into sea water by vessels unless the
health or safety of individuals on board the vessel is threatened by a great and imminent
peril;

e) Unauthorized transport or dumping into sea waters of sewage sludge or solid waste as
defined under Republic Act No.9003;

f) Transport, dumping or discharge of prohibited chemicals, substances or pollutants listed

under Republic Act No.6969;

g) Operate facilities that discharge or allow to seep, willfully or through gross negligence,
prohibited chemicals, substances or pollutants listed under R. A. No. 6969 into water bodies
or wherein the same shall be liable to be washed into such surface, ground, coastal, and
marine water;

h) Undertaking activities or development and expansion of projects, or operating

wastewater/sewerage facilities in violation of Presidential Decree. No.1586 and its
implementing rules, and regulations;

i) Discharging regulated water pollutants without the valid required discharge permit pursuant
to this Act or after the permit was revoked for any violation of condition therein;

j) Non-compliance of the LGU with the Water Quality Framework and Management Area
Action Plan. In such a case, sanctions shall be imposed on the local government officials
concerned;

k) Refusal to allow entry, inspection and monitoring by the Department in accordance with
this Act;

l) Refusal to allow access by the Department to relevant reports and records in accordance
with this Act;

m) Refusal or failure to submit reports whenever required by the Department in accordance

with this Act;

n) Refusal or failure to designate pollution control officers whenever required by, the
Department in accordance with this Act; and

o) Directly using booster pumps in the distribution system or tampering with the water supply
in such a way as to alter or impair the water quality.
SECTION 28. Fines, Damages and Penalties. - Unless otherwise provided herein, any person who
commits any of the prohibited acts provided in the immediately preceding section or violates any of
the provision of this Act or its implementing rules and regulations, shall be fined by the Secretary,
upon the recommendation of the PAB in the amount of not less than Ten thousand pesos
(P10,000.00) nor more than Two hundred thousand pesos (P200,000.00) for every day of violation.
The fines herein prescribed shall be increased by ten percent (10%) every two (2) years to
compensate for inflation and to maintain the deterrent function of such fines: Provided, That the
Secretary, upon recommendation of the PAB may order the closure, suspension of development or
construction, or cessation of operations or, where appropriate disconnection of water supply, until
such time that proper environmental safeguards are put in place and/or compliance with this Act or
its rules and regulations are undertaken. This paragraph shall be without prejudice to the issuance of
an ex parte order for such closure, suspension of development or construction, or cessation of
operations during the pendency of the case.

Failure to undertake clean-up operations, willfully, or through gross negligence, shall be punished by
imprisonment of not less than two (2) years and not more than four (4) years and a fine not less than
Fifty thousand pesos (P50,000.00) and not more than One hundred thousand pesos (P100,000.00)
per day for each day of violation. Such failure or refusal which results in serious injury or loss of life
and/or irreversible water contamination of surface, ground, coastal and marine water shall be
punished with imprisonment of not less than six (6) years and one day and not more than twelve (12)
years, and a fine of Five Hundred Thousand Pesos (P500,000.00) per day for each day during which
the omission and/or contamination continues.

In case of gross violation of this Act, the PAB shall issue a resolution recommending that the proper
government agencies file criminal charges against the violators. Gross violation shall mean any of
the following:

a) deliberate discharge of toxic pollutants identified pursuant to Republic Act No.6969 in toxic
amounts;

b) five {5) or more violations within a period of two (2) years; or

c) blatant disregard of the orders of the PAB, such as the non-payment of fines, breaking of
seals or operating despite the existence of an order for closure, discontinuance or cessation
of operation.

In which case, offenders shall be punished with a fine of not less than Five hundred thousand pesos
(P500,000.00) but not more than Three million pesos (P3,000,000.00} per day for each day of
violation or imprisonment of not less than six {6) years but not more than ten {10) years, or both, at
the discretion of the court. If the offender is a juridical person, the president, manager and the
pollution control officer or the official in charge of the operation shall suffer the penalty herein
provided.

For violations falling under Section 4 of Presidential Decree No.979 or any regulations prescribed in
pursuance thereof, such person shall be liable for a fine of no1 less than Fifty thousand pesos
{P50,000.00) nor more than One million pesos (P1,000,000.00) or by imprisonment of not less than
one {1) year nor more than six (6) years or both, for each offense, without prejudice to the civil
liability of the offender in accordance with existing laws. If the offender is a juridical entity, then its
officers, directors, agents or any person primarily responsible shall be held liable: Provided, That any
vessel from which oil or other harmful substances are discharged in violation of Section 4 of
Presidential Decree No.979 shall be liable for penalty of fine specified in the immediately preceding
paragraph and clearance of such vessel from the port of the Philippines may be withheld until the
fine is paid and such penalty shall constitute a lien on such vessel which may be recovered in
proceedings by libel in rem in the proper court which the vessel may be. The owner or operator of a
vessel or facility which discharged the oil or other harmful substances will be liable to pay for any
clean-up costs.

Provided, finally, That water pollution cases involving acts or omissions --- committed within the
Laguna Lake Region shall be dealt with in accordance with the procedure under R. A. No.4850 as
amended.

SECTION 29. Administrative Sanctions Against Non-compliance with the Water Quality

Management Area Action Plan. - Local government officials concerned shall be subject to
Administrative sanctions incase of failure to comply with their action plan accordance with the
relevant provisions of R.A. No. 7160.

CHAPTER 6
ACTIONS

SECTION 30. Administrative Action. - Without prejudice to the right of any affected person to file
an administrative action, the Department shall, on its own instance or upon verified complaint by any
person, institute administrative proceedings in the proper forum against any person who violates:

a) Standards or limitations provided by this Act; or

b) By any such order, rule or regulation issued by the Department with respect to such
standard or limitation.

CHAPTER 7
FINAL PROVISIONS

SECTION 31. Appropriations.- An amount of One hundred million pesos (P100,000,000.00) shall

be appropriated from the savings of the National Government to the Department for the initial
implementation of this Act. Thereafter, the amount necessary to effectively carry out the provision of
this Act shall be included in the General Appropriations Act of the year following its enactment into
law and thereafter.

SECTION 32. Implementing Rules and Regulations. - The Department, in coordination with the
Committees on Environment and Ecology of the Senate and the House of Representatives,
respectively and other concerned agencies shall promulgate the implementing rules and regulations
for this Act, within one (1) year after the enactment of this Act: Provided. That rules and regulations
issued by other government agencies and instrumentalities for the prevention and/or abatement of
water pollution not inconsistent with this Act shall supplement the rules and regulations issued by the
Department, pursuant to the provisions of this Act.

The draft of the implementing rules and regulations shall be published and be the subject of public
consultations with affected sectors.

There shall be a mandatory review of the implementing rules and regulations and standards set
pursuant to the provisions of this Act.

SECTION 33. Joint Congressional Oversight Committee. - There is hereby created a Joint

Congressional Oversight Committee to monitor the implementation of this Act and to review the
implementing rules and regulations promulgated by the Department. The Committee shall be
composed of five (5) Senators and five; (5) Representatives to be appointed by the Senate President
and the Speaker of the House of Representatives, respectively. The Oversight Committee shall be
co-chaired by the Chairpersons of the Committee on Environment of the Senate and the Committee
on Ecology of the House of Representatives.

SECTION 34. Repealing Clause. - Presidential Decree No.984 is hereby repealed. Republic Act
Nos. 6969 and 4850 as amended, Presidential Decree Nos. 1586, 1152, 979 and 856 are hereby
amended and modified accordingly. All other laws, orders, issuance, rules and regulations
inconsistent herewith are hereby repealed or modified accordingly.

SECTION 35. Separability Clause. - If any provision of this Act or the application such provision to
any person or circumstances is declared unconstitutional, the remainder of the Act or the application
of such provision to other person or circumstances shall not be affected by such declaration.

SECTION 36. Effectivity. - This Act shall take effect fifteen (15) days from the date of its publication
in the Official Gazette or in at least two (2) newspapers of general circulation.

REPUBLIC ACT 9003 January 26, 2001

AN ACT PROVIDING FOR AN ECOLOGICAL SOLID WASTE MANAGEMENT PROGRAM,

CREATING THE NECESSARY INSTITUTIONAL MECHANISMS AND INCENTIVES, DECLARING
CERTAIN ACTS PROHIBITED AND PROVIDING PENALTIES, APPROPRIATING FUNDS
THEREFOR, AND FOR OTHER PURPOSES

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

CHAPTER I
BASIC POLICIES

Article 1
General Provisions

Section 1. Short Title - This Act shall be known as the "Ecological Solid Waste Management Act of
2000."

Section 2. Declaration of Policies - It is hereby declared the policy of the State to adopt a
systematic, comprehensive and ecological solid waste management program which shall:

(a) Ensure the protection of the public health and environment;

(b) Utilize environmentally-sound methods that maximize the utilization of valuable resources
and encourage resource conservation and recovery;

(c) Set guidelines and targets for solid waste avoidance and volume reduction through
source reduction and waste minimization measures, including composting, recycling, re-use,
recovery, green charcoal process, and others, before collection, treatment and disposal in
 appropriate and environmentally sound solid waste management facilities in accordance with
ecologically sustainable development principles;

(d) Ensure the proper segregation, collection, transport, storage, treatment and disposal of
solid waste through the formulation and adoption of the best environmental practice in
ecological waste management excluding incineration;

(e) Promote national research and development programs for improved solid waste
management and resource conservation techniques, more effective institutional arrangement
and indigenous and improved methods of waste reduction, collection, separation and
recovery;

(f) Encourage greater private sector participation in solid waste management;

(g) Retain primary enforcement and responsibility of solid waste management with local
government units while establishing a cooperative effort among the national government,
other local government units, non- government organizations, and the private sector;

(h) Encourage cooperation and self-regulation among waste generators through the
application of market-based instruments;

(i) Institutionalize public participation in the development and implementation of national and
local integrated, comprehensive, and ecological waste management programs; and

(j) Strength the integration of ecological solid waste management and resource conservation
and recovery topics into the academic curricula of formal and non-formal education in order
to promote environmental awareness and action among the citizenry.

Article 2
Definition of Terms

Section 3. Definition of Terms - For the purposes of this Act:

(a) Agricultural waste shall refer to waste generated from planting or harvesting of crops,
trimming or pruning of plants and wastes or run-off materials from farms or fields;

(b) Bulky wastes shall refer to waste materials which cannot be appropriately placed in
separate containers because of either its bulky size, shape or other physical attributes.
These include large worn-out or broken household, commercial, and industrial items such as
furniture, lamps, bookcases, filing cabinets, and other similar items;

(c) Bureau shall refer to the Environmental Management Bureau;

(d) Buy-back center shall refer to a recycling center that purchases of otherwise accepts
recyclable materials from the public for the purpose of recycling such materials;

(e) Collection shall refer to the act of removing solid waste from the source or from a
communal storage point;

(f) Composting shall refer to the controlled decomposition of organic matter by micro-
organisms, mainly bacteria and fungi, into a humus-like product;
(g) Consumer electronics shall refer to special waste that includes worn-out, broken, and
other discarded items such as radios, stereos, and TV sets;

(h) Controlled dump shall refer to a disposal site at which solid waste is deposited in
accordance with the minimum prescribed standards of site operation;

(i) Department shall refer to the Department of Environment and Natural Resources;

(j) Disposal shall refer to the discharge, deposit, dumping, spilling, leaking or placing of any
solid waste into or in an land;

(k) Disposal site shall refer to a site where solid waste is finally discharged and deposited;

(l) Ecological solid waste management shall refer to the systematic administration of
activities which provide for segregation at source, segregated transportation, storage,
transfer, processing, treatment, and disposal of solid waste and all other waste management
activities which do not harm the environment;

(m) Environmentally acceptable shall refer to the quality of being re-usable, biodegradable or
compostable, recyclable and not toxic or hazardous to the environment;

(n) Generation shall refer to the act or process of producing solid waste;

(o) Generator shall refer to a person, natural or juridical, who last uses a material and makes
it available for disposal or recycling;

(p) Hazardous waste shall refer to solid waste management or combination of solid waste
which because of its quantity, concentration or physical, chemical or infectious
characteristics may:

(1) cause, or significantly contribute to an increase in mortality or an increase in

serious irreversible, or incapacitating reversible, illness; or

(2) pose a substantial present or potential hazard to human health or the

environment when improperly treated, stored, transported, or disposed of, or
otherwise managed;

(q) Leachate shall refer to the liquid produced when waste undergo decomposition, and
when water percolate through solid waste undergoing decomposition. It is contaminated
liquid that contains dissolved and suspended materials;

(r) Materials recovery facility - includes a solid waste transfer station or sorting station, drop-
off center, a composting facility, and a recycling facility;

(s) Municipal waste shall refer to wastes produced from activities within local government
units which include a combination of domestic, commercial, institutional and industrial wastes
and street litters;

(t) Open dump shall refer to a disposal area wherein the solid wastes are indiscriminately
thrown or disposed of without due planning and consideration for environmental and Health
standards;
(u) Opportunity to recycle shall refer to the act of providing a place for collecting source-
separated recyclable material, located either at a disposal site or at another location more
convenient to the population being served, and collection at least once a month of source-
separated recyclable material from collection service customers and to providing a public
education and promotion program that gives notice to each person of the opportunity to
recycle and encourage source separation of recyclable material;

(v) Person(s) shall refer to any being, natural or judicial, susceptible of rights and obligations,
or of being the subject of legal relations;

(w) Post-consumer material shall refer only to those materials or products generated by a
business or consumer which have served their intended end use, and which have been
separated or diverted from solid waste for the purpose of being collected, processed and
used as a raw material in the manufacturing of recycled product, excluding materials and by-
products generated from, and by-products generated from, and commonly used within an
original manufacturing process, such as mill scrap;

(x) Receptacles shall refer to individual containers used for the source separation and the
collection of recyclable materials;

(y) Recovered material shall refer to material and by products that have been recovered or
diverted from solid waste for the purpose of being collected, processed and used as a raw
material in the manufacture of a recycled product;

(z) Recyclable material shall refer to any waste material retrieved from the waste stream and
free from contamination that can still be converted into suitable beneficial use or for other
purposes, including, but not limited to, newspaper, ferrous scrap metal, non-ferrous scrap
metal, used oil, corrugated cardboard, aluminum, glass, office paper, tin cans and other
materials as may be determined by the Commission;

(aa) Recycled material shall refer to post-consumer material that has been recycled and
returned to the economy;

(bb) Recycling shall refer to the treating of used or waste materials through a process of
making them suitable for beneficial use and for other purposes, and includes any process by
which solid waste materials are transformed into new products in such a manner that the
original product may lose their identity, and which maybe used as raw materials for the
production of other goods or services: Provided, That the collection, segregation and re-use
of previously used packaging material shall be deemed recycling under this Act;

(cc) Resource conversation shall refer to the reduction of the amount of solid waste that are
generated or the reduction of overall resource consumption, and utilization of recovered
resources;

(dd) Resources recovery shall refer to the collection, extraction or recovery of recyclable
materials from the waste stream for the purpose of recycling, generating energy or producing
a product suitable for beneficial use: Provided, That such resource recovery facilities exclude
incineration;

(ee) Re-use shall refer to the process of recovering materials intended for the same or
different purpose without the alteration of physical and chemical characteristics;
(ff) Sanitary landfill shall refer to a waste disposal site designed, constructed, operated and
maintained in a manner that exerts engineering control over significant potential environment
impacts arising from the development and operation of the facility;

(gg) Schedule of Compliance shall refer to an enforceable sequence of actions or operations

to be accomplished within a stipulated time frame leading to compliance with a limitation,
prohibition or standard set forth in this Act or any rule of regulation issued pursuant thereto;

(hh) Secretary landfill shall refer to the Secretary of the Department of Environment and
Natural Resources;

(ii) Segregation shall refer to a solid waste management practice of separating different
materials found in solid waste in order to promote recycling and re-use of resources and to
reduce the volume of waste for collection and disposal;

(jj) Segregation at source shall refer to a solid waste management practice of separating, at
the point of origin, different materials found in solid waste in order to promote recycling and
re-use of resources and to reduce the volume of waste for collection and disposal;

(kk) Solid waste shall refer to all discarded household, commercial waste, non-hazardous
institutional and industrial waste, street sweepings, construction debris, agricultural waste,
and other non-hazardous/non-toxic solid waste.

Unless specifically noted otherwise, the term "solid waste" as used in this Act shall not
include:

(1) Waste identified or listed as hazardous waste of a solid, liquid, contained gaseous
or semisolid form which may cause or contribute to an increase in mortality or in
serious or incapacitating reversible illness, or acute/chronic effect on the health of
persons and other organisms;

(2) Infectious waste from hospitals such as equipment, instruments, utensils, and
fomites of a disposable nature from patients who are suspected to have or have
been diagnosed as having communicable diseases and must therefore be isolated
as required by public health agencies, laboratory wastes such as pathological
specimens (i.e. all tissues, specimens of blood elements, excreta, and secretions
obtained from patients or laboratory animals) and disposable fomites that may harbor
or transmit pathogenic organisms, and surgical operating room pathologic materials
from outpatient areas and emergency rooms; and

(3) Waste resulting from mining activities, including contaminated soil and debris.

(ll) Solid waste management shall refer to the discipline associated with the control of
generation, storage, collection, transfer and transport, processing, and disposal of solid
wastes in a manner that is in accord with the best principles of public health, economics,
engineering, conservation, aesthetics, and other environmental considerations, and that is
also responsive to public attitudes;

(mm) Solid waste management facility shall refer to any resource recovery system or
component thereof; any system, program, or facility for resource conservation; any facility for
the collection, source separation, storage, transportation, transfer, processing, treatment, or
disposal of solid waste;

(nn) Source reduction shall refer to the reduction of solid waste before it enters the solid
waste stream by methods such as product design, materials substitution, materials re-use
and packaging restrictions;

(oo) Source separation shall refer to the sorting of solid waste into some or all of its
component parts at the point of generation;

(pp) Special wastes shall refer to household hazardous wastes such as paints, thinners,
household batteries, lead-acid batteries, spray canisters and the like. These include wastes
from residential and commercial sources that comprise of bulky wastes, consumer
electronics, white goods, yard wastes that are collected separately, batteries, oil, and tires.
These wastes are usually handled separately from other residential and commercial wastes;

(qq) Storage shall refer to the interim containment of solid wastes after generation and prior
to collection for ultimate recovery or disposal;

(rr) Transfer stations shall refer to those facilities utilized to receive solid wastes, temporarily
store, separate, convert, or otherwise process the materials in the solid wastes, or to transfer
the solid wastes directly from smaller to larger vehicles for transport. This term does not
include any of the following:

(1) a facility whose principal function is to receive, store, separate, convert or

otherwise process in accordance with national minimum standards, manure;

(2) a facility, whose principal function is to receive, store, convert, or otherwise

process wastes which have already been separated for re-use and are intended for
disposals, and

(3) the operations premises of a duly licensed solid waste handling operator who is
receives, stores, transfers, or otherwise processes wastes as an activity incidental to
the conduct of a refuse collection and disposal business.

(ss) Waste diversion shall refer to activities which reduce or eliminate the amount of solid
waste from waste disposal facilities;

(tt) White goods shall refer to large worn-out or broken household, commercial, and industrial
appliances such as stoves, refrigerators, dishwashers, and clothes washers and dryers
collected separately. White goods ate usually dismantled for the recovery of specific
materials (e.g., copper, aluminum, etc.);

(uu) Yard waste shall refer to wood, small or chipped branches, leaves, grass clippings,
garden debris, vegetable residue that is recognized as part of a plant or vegetable and other
materials identified by the Commission.

CHAPTER II
INSTITUTIONAL MECHANISM
Section 4. National Solid Waste Management Commission - There is hereby established a National
Solid Waste Management Commission, hereinafter referred to as the Commission, under the Office
of the President. The Commissioner shall be composed of fourteen (14) members from the
government sector and three members from the private sector. The government sector shall be
represented by the heads of the following agencies in their ex officio capacity:

(1) Department of Environment and Natural Resources (DENR);

(2) Department of the Interior and Local Government (DILG);

(3) Department of Science and Technology (DOST);

(4) Department of Public Works and Highways (DPWH);

(5) Department of Health (DOH);

(6) Department of Trade and Industry (DTI);

(7) Department of Agriculture (DA);

(8) Metro Manila Development Authority (MMDA);

(9) League of provincial governors;

(10) League of city mayors;

(11) League of municipal mayors;

(12) Association of barangay councils;

(13) Technical Education and Skills Development Authority (TESDA); and

(14) Philippine Information Agency.

The private sector shall be represented by the following:

(a) A representative from nongovernment organizations (NGOs) whose principal purpose is

to promote recycling and the protection of air and water quality;

(b) A representative from the recycling industry; and

(c) A representative from the manufacturing or packaging industry;

The Commission may, from time to time, call on any other concerned agencies or sectors as it may
deem necessary.

Provided, That representatives from the NGOs, recycling and manufacturing or packaging industries
shall be nominated through a process designed by themselves and shall be appointed by the
President for a term of three (3) years.
Provided, further, That the Secretaries of the member agencies of the Commission shall formulate
action plans for their respective agencies to complement the National Solid Waste Management
Framework.

The Department Secretary and a private sector representative of the Commission shall serve as
chairman and vice chairman, respectively. The private sector representatives of the Commission
shall be appointed on the basis of their integrity, high decree of professionalism and having
distinguished themselves in environmental and resource management. The members of the
Commission shall serve and continue to hold office until their successors shall have been appointed
and qualified. Should a member of the Commission fail to complete his/her term, the unexpired
portion of the term. Finally, the members shall be entitled to reasonable traveling expenses and
honoraria.

The Department, through the Environmental Management Bureau, shall provide secretariat support
to the Commission. The Secretariat shall be headed by an executive director who shall be
nominated by the members of the Commission and appointed by the chairman.

Section 5. Powers and Functions of the Commission - The Commission shall oversee the
implementation of solid waste management plans and prescribe policies to achieve the objectives of
this Act. The Commission shall undertake the following activities.

(a) Prepare the national solid waste management framework;

(b) Approve local solid waste management plans in accordance with its rules and
regulations;

(c) Review and monitor the implementation of local solid waste management plans;

(d) Coordinate the operation of local solid waste management boards in the provincial and
city/municipal levels;

(e) To the maximum extent feasible, utilizing existing resources, assist provincial, city and
municipal solid waste management plans;

(f) Develop a model provincial, city and municipal solid waste management plan that will
establish prototypes of the content and format which provinces, cities and municipalities may
use in meeting the requirements of the National Solid Waste Management Framework;

(g) Adopt a program to provide technical and other capability building assistance and support
to local government units in the development and implementation of source reduction
programs;

(h) Develop and implement a program to assist local government units in the identification of
markets for materials that are diverted from disposal facilities through re-use, recycling, and
composting, and other environment-friendly methods;

(i) Develop a mechanism for the imposition of sanctions for the violations environmental rules
and regulations;

(j) Manage the Solid Waste Management Fund;

 (k) Develop and prescribe procedures for the issuance of appropriate permits and
clearances.

(l) Review the incentives scheme for effective solid waste management, for purpose of
ensuring relevance and efficiency in achieving the objectives of this Act;

(m) Formulate the necessary education promotion and information campaign strategies;

(n) Establish, after notice and hearing of the parties concerned, standards, criteria,
guidelines, and formula that are fair, equitable and reasonable, in establishing tipping
charges and rates that the proponent will charge in the operation and management of solid
waste management facilities and technologies.

(o) Develop safety nets and alternative livelihood programs for small recyclers and other
sectors that will be affected as a result of the construction and/or operation of solid waste
management recycling plant or facility.

(p) Formulate and update a list of non-environmentally acceptable materials in accordance

with the provisions of this Act. For this purpose, it shall be necessary that proper consultation
be conducted by the Commission with all concerned industries to ensure a list that is based
on technological and economic viability.

(q) Encourage private sector initiatives, community participation and investments resource
recovery-based livelihood programs for local communities.

(r) Encourage all local government agencies and all local government units to patronize
products manufactured using recycled and recyclable materials;

(s) Propose and adopt regulations requiring the source separation and post separation
collection, segregated collection, processing, marketing and sale of organic and designated
recyclable material generated in each local government unit; and

(t) Study and review of the following:

(i) Standards, criteria and guidelines for promulgation and implementation of an

integrated national solid waste management framework; and

(ii) Criteria and guidelines for siting, design, operation and maintenance of solid
waste management facilities.

Section 6. Meetings - The Commission shall meet at least once a month. The presence of at least a
majority of the members shall constitute a quorum. The chairman, or in his absence the vice-
chairman, shall be the presiding officer. In the absence of the heads of the agencies mentioned in
Sec. 4 of this Act, they may designate permanent representatives to attend the meetings.

Section 7. The National Ecology Center - There shall be established a National Ecology Center
under the Commission which shall provide consulting, information, training, and networking services
for the implementation of the provisions of this Act.

In this regard, it shall perform the following functions:

 (a) Facilitate training and education in integrated ecological solid waste management;

(b) Establish and manage a solid waste management information data base, in coordination
with the DTI and other concerned agencies:

(1) on solid waste generation and management techniques as well as the

management, technical and operational approaches to resource recovery; and

(2) of processors/recyclers, the list of materials being recycled or bought by them and
their respective prices;

(c) Promote the development of a recycling market through the establishment of a national
recycling network that will enhance the opportunity to recycle;

(d) Provide or facilitate expert assistance in pilot modeling of solid waste management
facilities; and

(e) Develop, test, and disseminate model waste minimization and reduction auditing
procedures for evaluating options.

The National Ecology Center shall be headed by the director of the Bureau in his ex officio capacity.
It shall maintain a multi-sectoral, multi-disciplinary pool of experts including those from the academe,
inventors, practicing professionals, business and industry, youth , women and other concerned
sectors, who shall be screened according to qualifications set by the Commission.

Section 8. Role of the Departmen. - For the furtherance of the objectives of this Act, the Department
shall have the following functions:

(a) Chair the Commission created pursuant to this Act;

(b) Prepare an annual National Solid Waste Management Status Report;

(c) Prepare and distribute information, education and communication materials on solid
waste management;

(d) Establish methods and other parameters for the measurement of waste reduction,
collection and disposal;

(e) Provide technical and other capability building assistance and support to the LGUs in the
development and implementation of local solid waste management plans and programs;

(f) Recommend policies to eliminate barriers to waste reduction programs;

(g) Exercise visitorial and enforcement powers to ensure strict compliance with this Act;

(h) Perform such other powers and functions necessary to achieve the objectives of this Act;
and

(i) Issue rules and regulations to effectively implement the provisions of this Act.
Section 9. Visitorial Powers of the Department. - The Department or its duly authorized
representative shall have access to, and the right to copy therefrom, the records required to be
maintained pursuant to the provisions of this Act. The Secretary or the duly authorized
representative shall likewise have the right to enter the premises of any generator, recycler or
manufacturer, or other facilities any time to question any employee or investigate any fact, condition
or matter which may be necessary to determine any violation, or which may aid in the effective
enforcement of this Act and its implementing rules and regulations. This Section shall not apply to
private dwelling places unless the visitorial power is otherwise judicially authorized.

Section 10. Role of LGUs in Solid Waste Management - Pursuant to the relevant provisions of R.A.
No. 7160, otherwise known as the Local government code, the LGUs shall be primarily responsible
for the implementation and enforcement of the provisions of this Act within their respective
jurisdictions.

Segregation and collection of solid waste shall be conducted at the barangay level specifically for
biodegradable, compostable and reusable wastes: Provided, That the collection of non-recyclable
materials and special wastes shall be the responsibility of the municipality or city.

Section 11. Provincial Solid Waste Management Board - A Provincial Solid Waste Management
board shall be established in every province, to be chaired by the governor. Its members shall
include:

(a) All the mayors of its component cities and municipalities;

(b) One (1) representative from the Sangguniang Panlalawigan to be represented by the
chairperson of either the Committees on Environment or Health or their equivalent
committees, to be nominated by the presiding officer;

(c) The provincial health and/or general services officers, whichever may be recommended
by the governor;

(d) The provincial environment and natural resources officer;

(e) The provincial engineer;

(f) Congressional representatives from each congressional district within the province;

(g) A representative from the NGO sector whose principal purpose is to promote recycling
and the protection of air and water quality;

(h) A representative from the recycling industry;

(i) A representative from the manufacturing or packaging industry; and

(j) A representative of each concerned government agency possessing relevant technical

and marketing expertise as may be determined by the board.

The Provincial Solid Waste Management Board may, from time to time, call on any other concerned
agencies or sectors as it may deem necessary.
Provided, That representatives from the NGOs, recycling and manufacturing or packaging industries
shall be selected through a process designed by themselves and shall be endorsed by the
government agency of representatives of the Board: Provided, further, that in the Province of
Palawan, the Board shall be chaired by the chairman of the Palawan Council for Sustainable
Development, pursuant to Republic Act No. 7611.

In the case of Metro Manila, the Board shall be chaired by the chairperson of the MMDA and its
members shall include:

(i) all mayors of its component cities and municipalities;

(ii) a representative from the NGO sector whose principal purpose is to promote recycling
and the protection of air and water quality;

(iii) a representative from the recycling industry; and

(iv) a representative from the manufacturing or packaging industry.

The Board may, from time to time, call on any other concerned agencies or sectors as it may deem
necessary.

Provided, That representatives from the NGOs, recycling and manufacturing or packaging industries
shall be selected through a process designed by themselves and shall be endorsed by the
government agency representatives of the Board.

The Provincial Solid Waste Management Board shall have the following functions and
responsibilities:

(1) Develop a provincial solid waste management plan from the submitted solid waste
management plans of the respective city and municipal solid waste management boards
herein created. It shall review and integrate the submitted plans of all its component cities
and municipalities and ensure that the various plan complement each other, and have the
requisite components. The Provincial Solid Waste Management Plan shall be submitted to
the Commission for approval.

The Provincial Plans shall reflect the general program of action and initiatives of the
provincial government and implementing a solid waste management program that would
support the various initiatives of its component cities and municipalities.

(2) Provide the necessary logistical and operational support to its component cities and
municipalities in consonance with subsection (f) of Sec.17 of the Local Government Code;

(3) Recommend measures and safeguards against pollution and for the preservation of the
natural ecosystem;

(4) Recommend measures to generate resources, funding and implementation of project and
activities as specified in the duly approved solid waste management plans;

(5) Identify areas within its jurisdiction which have common solid waste management
problems and are appropriate units are planning local solid waste management services in
accordance with Section 41 hereof;
 (6) Coordinate the efforts of the component cities and municipalities in the implementation of
the Provincial Solid Waste Management Plan;

(7) Develop an appropriate incentive scheme as an integral component of the Provincial

Solid Waste Management Plan;

(8) Convene joint meetings of the provincial, city and municipal solid waste management
boards at least every quarter for purposes of integrating, synchronizing, monitoring and
evaluating the development and implementation of its provincial solid waste management
plan;

(9) Represent any of its component city or municipality in coordinating its resource and
operational requirements with agencies of the national government;

(10) Oversee the implementation of the Provincial Solid Waste Management Plant;

(11) Review every two (2) years or as the need arises the Provincial Solid Waste
Management Plan for purposes of ensuring its sustainability, viability, effectiveness and
relevance in relation to local and international development in the field of solid waste
management; and

(12) Allow for the clustering of LGUs for the solution of common solid waste management
problems.

Section 12. City and Municipal Solid Waste Management Board - Each city or municipality shall
form a City or Municipal Waste Management Board that shall prepare, submit and implement a plan
for the safe and sanitary management of solid waste generated in areas under in geographic and
political coverage.

The City or Municipal Solid Waste Management Board shall be composed of the city or municipal
mayor as head with the following as members:

a) One (1) representative of Sangguniang Panlungsod or the Sangguniang Bayan,

preferably chairpersons of either the Committees on Environment or Health, who will be
designated by the presiding officer;

b) President of the Association of Barangay Councils in the municipality or city;

c) Chairperson of the Sangguniang Kabataan Federation;

d) A representative from NGOs whose principal purpose is to promote recycling and the
protection of air and water quality;

e) A representative from the recycling industry;

f) A representative from the manufacturing or packaging industry; and

g) A representative of each concerned government agency possessing relevant technical

and marketing expertise as may be determined by the Board.
The City or Municipal Solid Waste Management Board may, from time to time, call on any concerned
agencies or sectors as it may deem necessary.

Provided, That representatives from NGOs, recycling and manufacturing or packaging industries
shall be selected through a process designed by themselves and shall be endorsed by the
government agency representatives of the Board.

The City and Municipal Solid Waste Management Boards shall have the following duties and
responsibilities:

(1) Develop the City or Municipal Solid Waste Management Plan that shall ensure the long-
term management of solid waste, as well as integrate the various solid waste management
plans and strategies of the barangays in its area of jurisdiction. In the development of the
Solid Waste Management Plan, it shall conduct consultations with the various sectors of the
community;

(2) Adopt measures to promote and ensure the viability and effective implementation of solid
waste management programs in its component barangays;

(3) Monitor the implementation of the City or Municipal Solid Waste Management Plan
through its various political subdivisions and in cooperation with the private sector and the
NGOs;

(4) Adopt specific revenue-generating measures to promote the viability of its Solid Waste
Management Plan;

(5) Convene regular meetings for purposes of planning and coordinating the implementation
of the solid waste management plans of the respective component barangays;

(6) Oversee the implementation of the City or Municipal Solid Waste Management Plan;

(7) Review every two (2) years or as the need arises the City or Municipal Solid Waste
Management Plan for purposes of ensuring its sustainability, viability, effectiveness and
relevance in relation to local and international developments in the field of solid waste
management;

(8) Develop the specific mechanics and guidelines for the implementation of the City or
Municipal Solid Waste Management Plan;

(9) Recommended to appropriate local government authorities specific measures or

proposals for franchise or build-operate-transfer agreements with duly recognized
institutions, pursuant to R.A.6957, to provide either exclusive or non-exclusive authority for
the collection, transfer, storage, processing, recycling or disposal of municipal solid waste.
The proposals shall take into consideration appropriate government rules and regulations on
contracts, franchise and build-operate-transfer agreements;

(10) Provide the necessary logistical and operational support to its component cities and
municipalities in consonance with subsection (f) of Sec. 17 of the Local Government Code;

(11) Recommended measures and safeguards against pollution and for the preservation of
the natural ecosystem; and
 (12) Coordinates the efforts of its components barangays in the implementation of the city or
municipal Solid Waste Management Plan.

Section13. Establishment of Multi-Purpose Environment Cooperatives or Association in Every LGU -

Multi-purpose cooperatives and associations that shall undertake activities to promote the
implementation and/ or directly undertake projects in compliance with the provisions of this Act shall
be encouraged and promoted in every LGU.

CHAPTER III
COMPREHENSIVE SOLID WASTE MANAGEMENT

Article 1
General Provisions

Section 14. National Solid Waste Management Status Report - The Department, in coordination
with the DOH and other concerned agencies, shall within six (6) months after the effectivity of this
Act, prepare a National Solid Waste Management Status Report which shall be used as a basis in
formulating the National Solid Waste Management Framework provided in Sec. 15 of this Act. The
concerned agencies shall submit to the Department relevant data necessary for the completion of
the said report within three (3) months following the effectivity of this Act. The said report shall
include, but shall not be limited to, the following:

(a) Inventory of existing solid waste facilities;

(b) General waste characterization, taking into account the type, quantity of waste generated
and estimation of volume and type of waste for reduction and recycling;

(c) Projection of waste generation;

(d) The varying regional geologic, hydrologic, climatic, and other factors vital in the
implementation of solid waste practices to ensure the reasonable protection of:

(1) the quality of surface and groundwater from leachate contamination;

(2) the quality of surface waters from surface run-off contamination; and

(3) ambient air quality.

(e) Population density, distribution and projected growth;

(f) The political, economic, organizational, financial and management problems affecting
comprehensive solid waste management;

(g) Systems and techniques of waste reduction, re-use and recycling;

(h) Available markets for recyclable materials;

(i) Estimated cost of collecting, storing, transporting, marketing and disposal of wastes and
recyclable materials; and
 (j) Pertinent qualitative and quantitative information concerning the extent of solid waste
management problems and solid waste management activities undertaken by local
government units and the waste generators.

Provided, That the Department, in consultation with concerned agencies, shall review, update and
publish a National Solid Waste Management Status Report every two (2) years or as the need
arises.

Section 15. National Solid Waste Management Framework - Within six (6) months from the
completion of the national solid waste management status report under Sec. 14 of this Act, the
Commission created under Sec. 4 of this Act shall, with public participation, formulate and implement
a National Solid Waste Management Framework. Such framework shall consider and include:

(a) Analysis and evaluation of the current state, trends, projections of solid waste
management on the national, provincial and municipal levels;

(b) Identification of critical solid waste facilities and local government units which will need
closer monitoring and/or regulation;

(c) Characteristics and conditions of collection, storage, processing, disposal, operating

methods, techniques and practices, location of facilities where such operating methods,
techniques and practices are conducted, taking into account the nature of the waste;

(d) Waste diversion goal pursuant to Sec. 20 of this Act;

(e) Schedule for the closure and/or upgrading of open and controlled dumps pursuant to
Sec. 37 of this Act;

(f) Methods of closing or upgrading open dumps for purposes of eliminating potential health
hazards;

(g) The profile of sources, including industrial, commercial, domestic, and other sources;

(h) Practical applications of environmentally sound techniques of water minimization such as,
but not limited to, resource conservation, segregation at source, recycling, resource
recovery, including waste-to-energy generation, re-use and composting;

(i) A technical and economic description of the level of performance that can be attained by
various available solid waste management practices which provide for the protection of
public health and the environment;

(j) Appropriate solid waste facilities and conservation systems;

(k) Recycling programs for the recyclable materials, such as but not limited to glass, paper,
plastic and metal;

(l) Venues for public participation from all sectors at all phases/stages of the waste
management program/project;

(m) Information and education campaign strategies;

 (n) A description of levels of performance and appropriate methods and degrees of control
that provide, at the minimum, for protection of public health and welfare through:

(1) Protection of the quality of groundwater and surface waters from leachate and
run-off contamination;

(2) Disease and epidemic prevention and control;

(3) Prevention and control of offensive odor; and

(4) Safety and aesthetics.

(o) Minimum criteria to be used by the local government units to define ecological solid waste
management practices. As much as practicable, such guidelines shall also include minimum
information for use in deciding the adequate location, design and construction of facilities
associated with solid waste management practices, including the consideration of regional,
geographic, demographic and climatic factors; and

(p) The method and procedure for the phaseout and the eventual closure within eighteen
(18) months from the effectivity of this Act in case of existing open dumps and/or sanitary
landfills located within an aquifer, groundwater reservoir or watershed area.

Section 16. Local Government Solid Waste Management Plans - The province, city or municipality,
through its local solid waste management boards, shall prepare its respective 10-year solid waste
management plans consistent with the national solid waste management framework: Provided, That
the waste management plan shall be for the re-use, recycling and composting of wastes generated
in their respective jurisdictions: Provided, further, That the solid waste management plan of the LGU
shall ensure the efficient management of solid waste generated within its jurisdiction. The plan shall
place primary emphasis on implementation of all feasible re-use, recycling, and composting
programs while identifying the amount of landfill and transformation capacity that will be needed for
solid waste which cannot be re-used, recycled, or composted. The plan shall contain all the
components provided in Sec. 17 of this Act and a timetable for the implementation of the solid waste
management program in accordance with the National Framework and pursuant to the provisions of
this Act: Provided, finally, That it shall be reviewed and updated every year by the provincial, city or
municipal solid waste management board.

For LGUs which have considered solid waste management alternatives to comply with Sec. 37 of
this Act, but are unable to utilize such alternatives, a timetable or schedule of compliance specifying
the remedial measure and eventual compliance shall be included in the plan.

All local government solid waste management plans shall be subjected to the approval of the
Commission. The plan shall be consistent with the national framework and in accordance with the
provisions of this Act and of the policies set by the Commission; Provided, That in the province of
Palawan, the local government solid waste management plan shall be approved by the Palawan
Council for Sustainable Development, pursuant to R.A. No. 7611.

Section 17. The Components of the Local Government Solid Waste Management Plan - The solid
waste management plan shall include, but not limited to, the following components:
(a) City or Municipal Profile - The plan shall indicate the following background information on
the city or municipality and its component barangays, covering important highlights of the
distinct geographic and other conditions:

(1) Estimated population of each barangay within the city or municipality and
population project for a 10-year period;

(2) Illustration or map of the city/municipality, indicating locations of residential,

commercial, and industrial centers, and agricultural area, as well as dump, landfills
and other solid waste facilities. The illustration shall indicate as well, the proposed
sites for disposal and other solid waste facilities;

(3) Estimated solid waste generation and projection by source, such as residential,
market, commercial, industrial, construction/ demolition, street waste,agricultural,
agro-industrial, institutional, other waste; and

(4) Inventory of existing waste disposal and other solid waste facilities and
capacities.

(b) Waste characterization - For the initial source reduction and recycling element of a local
waste management plan, the LGU waste characterization component shall identify the
constituent materials which comprise the solid waste generated within the jurisdiction of the
LGU. The information shall be representative of the solid waste generated and disposed of
within the area. The constituent materials shall be identified by volume, percentage in weight
or its volumetric equivalent, material type, and source of generation which includes
residential, commercial, industrial, governmental, or other materials. Future revisions of
waste characterization studies shall identify the constituent materials which comprise the
solid waste disposed of at permitted disposal facilities.

(c) Collection and Transfer - The plan shall take into account the geographic subdivisions to
define the coverage of the solid waste collection area in every barangay. The barangay shall
be responsible for ensuring that a 100% collection efficiency from residential, commercial,
industrial and agricultural sources, where necessary within its area of coverage, is achieved.
Toward this end, the plan shall define and identify the specific strategies and activities to be
undertaken by its component barangays, taking into account the following concerns:

(1) Availability and provision of properly designed containers or receptacles in

selected collection points for the temporary storage of solid waste while awaiting
collection and transfer to processing sites or to final disposal sites;

(2) Segregation of different types of solid waste for re-use, recycling and composting;

(3) Hauling and transfer of solid waste from source or collection points to processing
sites or final disposal sites;

(4) Issuance and enforcement of ordinances to effectively implement a collection

system in the barangay; and

(5) Provision of properly trained officers and workers to handle solid waste disposal.
The plan shall define and specify the methods and systems for the transfer of solid waste
from specific collection points to solid waste management facilities.

(d) Processing - The Plan shall define the methods and the facilities required to process the
solid waste, including the use of intermediate treatment facilities for composting, recycling,
conversion and other waste processing systems. Other appropriate waste processing
technologies may also be considered provided that such technologies conform with
internationally-acceptable and other standards set in other standards set in other laws and
regulations.

(e) Source reduction - The source reduction component shall include a program and
implementation schedule which shows the methods by which the LGU will, in combination
with the recycling and composting components, reduce a sufficient amount of solid waste
disposed of in accordance with the diversion requirements of Sec. 20.

The source reduction component shall describe the following:

(1) strategies in reducing the volume of solid waste generated at source;

(2) measures for implementing such strategies and the resources necessary to carry
out such activities;

(3) other appropriate waste reduction technologies that may also be considered,
provided that such technologies conform with the standards set pursuant to this Act;

(4) the types of wastes to be reduced pursuant to Sec. 15 of this Act;

(5) the methods that the LGU will use to determine the categories of solid wastes to
be diverted from disposal at a disposal facility through re-use, recycling and
composting; and

(6) new facilities and expansion of existing facilities which will be needed to
implement re-use, recycling and composting.

The LGU source reduction component shall include the evaluation and identification of rate
structures and fees for the purpose of reducing the amount of waste generated, an other
source reduction strategies, including but not limited to, programs and economic incentives
provided under Sec. 46 of this Act to reduce the use of non-recyclable materials, replace
disposable materials and products with reusable materials and products, reduce packaging,
and increase the efficiency of the use of paper, cardboard, glass, metal, and other materials.
The waste reduction activities of the community shall also take into account, among others,
local capability, economic viability, technical requirements, social concerns' disposition of
residual waste and environmental impact: Provided, That, projection of future facilities
needed and estimated cost shall be incorporated in the plan.

(f) Recycling - The recycling component shall include a program and implementation
schedule which shows the methods by which the LGU shall, in combination with source
reduction and composting components, reduce a sufficient amount of solid waste disposed
of in accordance with the diversion requirements set in Sec .20.

The LGU recycling component shall describe the following:

 (1) The types of materials to be recycled under the programs;

(2) The methods for determining the categories of solid wastes to be diverted from
disposal at a disposal facility through recycling; and

(3) New facilities and expansion of existing facilities needed to implement the
recycling component.

The LGU recycling component shall described methods for developing the markets for
recycled materials, including, but not limited to, an evaluation of the feasibility of procurement
preferences for the purchase of recycled products. Each LGU may determine and grant a
price preference to encourage the purchase of recycled products.

The five-year strategy for collecting, processing, marketing and selling the designated
recyclable materials shall take into account persons engaged in the business of recycling or
persons otherwise providing recycling services before the effectivity of this Act. Such
strategy may be base upon the results of the waste composition analysis performed pursuant
to this Section or information obtained in the course of past collection of solid waste by the
local government unit, and may include recommendations with respect to increasing the
number of materials designated for recycling pursuant to this Act.

The LGU recycling component shall evaluate industrial, commercial, residential, agricultural,
governmental and other curbside, mobile, drop-off and buy-back recycling programs, manual
and automated materials recovery facilities, zoning, building code changes and rate
structures which encourage recycling of materials. The Solid Waste Management Plan shall
indicate the specific measures to be undertaken to meet the waste diversion specified under
Sec. 20 of this Act.

Recommended revisions to the building ordinances, requiring newly-constructed buildings

and buildings undergoing specified alterations to contain storage space, devices or
mechanisms that facilitate source separation and storage of designated recyclable materials
to enable the local government unit to efficiently collect, process, market and sell the
designated materials. Such recommendations shall include, but shall not be limited to
separate chutes to facilitate source separation in multi-family dwellings, storage areas that
conform to fire and safety code regulations, and specialized storage containers.

The Solid Waste Management Plan shall indicate the specific measures to be undertaken to
meet the recycling goals pursuant to the objectives of this Act.

(g) Composting - The composting component shall include a program and implementation
schedule which shows the methods by which the LGU shall, in combination with the source
reduction and recycling components, reduce a sufficient amount of solid waste disposed of
within its jurisdiction to comply with the diversion requirements of Sec. 20 hereof.

The LGU composting component shall describe the following:

(1) The types of materials which will be composted under the programs;

(2) The methods for determining the categories of solid wastes to be diverted from
disposal at a disposal facility through composting; and
 (3) New facilities, and expansion of existing facilities needed to implement the
composting component.

The LGU composting component shall describe methods for developing the markets for
composted materials, including, but not limited to, an evaluation of the feasibility of
procurement preferences for the purchase of composted products. Each LGU may determine
and grant a price preference to encourage the purchase of composted products.

(h) Solid waste facility capacity and final disposal - The solid waste facility component shall
include, but shall not be limited to, a projection of the amount of disposal capacity needed to
accommodate the solid waste generated, reduced by the following:

(1) Implementation of source reduction, recycling and composting programs required

in this Section or through implementation of other waste diversion activities pursuant
to Sec. 20 of this Act;

(2) Any permitted disposal facility which will be available during the 10-year planning
period; and

(3) All disposal capacity which has been secured through an agreement with another
LGU, or through an agreement with a solid waste enterprise.

The plan shall identify existing and proposed disposal sites and waste management facilities
in the city or municipality or in other areas. The plan shall specify the strategies for the
efficient disposal of waste through existing disposal facilities and the identification of
prospective sites for future use. The selection and development of disposal sites shall be
made on the basis of internationally accepted standards and on the guidelines set in Sec. 41
and 42 of this Act.

Strategies shall be included to improve said existing sites to reduce adverse impact on
health and the environment, and to extent life span and capacity. The plan shall clearly
define projections for future disposal site requirements and the estimated cost for these
efforts.

Open dump sites shall not be allowed as final disposal sites. If an open dump site is existing
within the city or municipality, the plan shall make provisions for its closure or eventual phase
out within the period specified under the framework and pursuant to the provisions under
Sec. 37 of this Act. As an alternative, sanitary landfill sites shall be developed and operated
as a final disposal site for solid and, eventually, residual wastes of a municipality or city or a
cluster of municipality and/or cities. Sanitary landfills shall be designed and operated in
accordance with the guidelines set under Secs. 40 and 41 of this Act.

(i) Education and public information - The education and public information component shall
describe how the LGU will educate and inform its citizens about the source reduction,
recycling and composting programs.

The plan shall make provisions to ensure that information on waste collection services, solid
waste management and related health and environmental concerns are widely disseminated
among the public. This shall be undertaken through the print and broadcast media and other
government agencies in the municipality. The DECS and the Commission on Higher
 Education shall ensure that waste management shall be incorporated in the curriculum of
primary, secondary and college students.

(j) Special Waste - The special waste component shall include existing waste handling and
disposal practices for special wastes or household hazardous wastes, and the identification
of current and proposed programs to ensure the proper handling, re-use, and long-term
disposal of special wastes;

(k) Resource requirement and funding - The funding component includes identification and
description of project costs, revenues, and revenue sources the LGU will use to implement
all components of the LGU solid waste management plan;

The plan shall likewise indicate specific projects, activities, equipment and technological
requirements for which outside sourcing of funds or materials may be necessary to carry out
the specific components of the plan. It shall define the specific uses for its resource
requirement s and indicate its costs. The plan shall likewise indicate how the province, city or
municipality intends to generate the funds for the acquisition of its resource requirements. It
shall also indicate if certain resource requirements are being or will be sourced from fees,
grants, donations, local funding and other means. This will serve as basis for the
determination and assessment of incentives which may be extended to the province, city or
municipality as provided for in Sec. 45 of this Act.

(l) Privatization of solid waste management projects - The plan shall likewise indicate specific
measures to promote the participation of the private sector in the management of solid
wastes, particularly in the generation and development of the essential technologies for solid
waste management. Specific projects or component activities of the plan which may be
offered as private sector investment activity shall be identified and promoted as such.
Appropriate incentives for private sector involvement in solid waste management shall
likewise be established and provided for in the plan, in consonance with Sec. 45 hereof and
other existing laws, policies and regulations; and

(m) Incentive programs - A program providing for incentives, cash or otherwise, which shall
encourage the participation of concerned sectors shall likewise be included in the plan.

Section 18. Owner and Operator - Responsibility for compliance with the standards in this Act shall
rest with the owner and/or operator. If specifically designated, the operator is considered to have
primary responsibility for compliance; however, this does not relieve the owner of the duty to take all
reasonable steps to assure compliance with these standards and any assigned conditions. When the
title to a disposal is transferred to another person, the new owner shall be notified by the previous
owner of the existence of these standards and of the conditions assigned to assure compliance.

Section 19. Waste characterization - The Department in coordination with the LGUs, shall be
responsible for the establishment of the guidelines for the accurate characterization of wastes
including determination of whether or not wastes will be compatible with containment features and
other wastes, and whether or not wastes are required to be managed as hazardous wastes under
R.A. 6969, otherwise known as the Toxic Substance and Hazardous and Nuclear Wastes Control
Act.

Section 20. Establishing Mandatory Solid Waste Diversion - Each LGU plan shall include an
implementation schedule which shows that within five (5) years after the effectivity of this Act, the
LGU shall divert at least 25% of all solid waste from waste disposal facilities through re-use,
recycling and composting activities and other resource recovery activities; Provided, That the waste
diversion goals shall be increased every three (3) years thereafter; Provided, further, That nothing in
this Section prohibits a local government unit from implementing re-use, recycling, and composting
activities designed to exceed the goal.

Article 2
Segregation of Wastes

Section 21. Mandatory Segregation of Solid Wastes - The LGUs shall evaluate alternative roles for
the public and private sectors in providing collection services, type of collection system, or
combination of systems, that best meet their needs: Provided, That segregation of wastes shall
primarily be conducted at the source, to include household, institutional, industrial, commercial and
agricultural sources: Provided, further; That wastes shall be segregated into the categories provided
in Sec. 22 of this Act.

For premises containing six (6) or more residential units, the local government unit shall promulgate
regulations requiring the owner or person in charge of such premises to:

(a) provide for the residents a designated area and containers in which to accumulate source
separated recyclable materials to be collected by the municipality or private center; and

(b) notify the occupants of each buildings of the requirements of this Act and the regulations
promulgated pursuant thereto.

Section 22. Requirements for the Segregation and Storage of Solid Waste - The following shall be
the minimum standards and requirements for segregation and storage of solid waste pending
collection:

(a) There shall be a separate container for each type of waste from all sources: Provided,
That in the case of bulky waste, it will suffice that the same be collected and placed in a
separate designated area; and

(b) The solid waste container depending on its use shall be properly marked or identified for
on-site collection as "compostable", "non-recyclable", "recyclable" or "special waste", or any
other classification as may be determined by the Commission.

Article 3
Collection and Transport of Solid Wastes

Section 23. Requirements for Collection of Solid Wastes - The following shall be the minimum
standards and requirements for the collection of solid waste:

(a) All collectors and other personnel directly dealing with collection of solid waste shall be
equipped with personal protective equipment to protect them from the hazards of handling
wastes;

(b) Necessary training shall be given to the collectors and personnel to ensure that the solid
wastes are handled properly and in accordance with the guidelines pursuant to this Act; and

(c) Collection of solid waste shall be done in a manner which prevents damage to the
container and spillage or scattering of solid waste within the collection vicinity.
Section 24. Requirements for the Transport of Solid Waste - The use of separate collection
schedules and/or separate trucks or haulers shall be required for specific types of wastes.
Otherwise, vehicles used for the collection and transport of solid wastes shall have the appropriate
compartments to facilitate efficient storing of sorted wastes while in transit.

Vehicles shall be designed to consider road size, condition and capacity to ensure the sage and
efficient collection and transport of solid wastes.

The waste compartment shall have a cover to ensure the containment of solid wastes while in
transit.

For the purpose of identification, vehicles shall bear the body number, the name, and the telephone
number of the contractor/agency collecting solid waste.

Section 25. Guidelines for Transfer Stations - Transfer stations shall be designed and operated for
efficient waste handling capacity and in compliance with environmental standards and guidelines set
pursuant to this Act and other regulations: Provided, That no waste shall be stored in such station
beyond twenty-four (24) hours.

The siting of the transfer station shall consider the land use plan, proximity to collection area, and
accessibility of haul routes to disposal facility. The design shall give primary consideration to size
and space sufficiency in order to accommodate the waste for storage and vehicles for loading and
unloading of wastes.

Article 4
Recycling Program

Section 26. Inventory of Existing Markets for Recyclable Materials - The DTI shall within six (6)
months from the effectivity of this Act and in cooperation with the Department, the DILG and other
concerned agencies and sectors, publish a study of existing markets for processing and purchasing
recyclable materials and the potential steps necessary to expand these markets. Such study shall
include, but not be limited to, an inventory of existing markets for recyclable materials, product
standards for recyclable and recycled materials, and a proposal, developed in conjunction with the
appropriate agencies, to stimulate the demand for the production of products containing post
consumer and recovered materials.

Section 27. Requirement for Eco-Labeling - The DTI shall formulate and implement a coding system
for packaging materials and products to facilitate waste and recycling and re-use.

Section 28. Reclamation Programs and Buy-back Centers for Recyclables and Toxics - The
National Ecology Center shall assist LGUs in establishing and implementing deposit or reclamation
programs in coordination with manufacturers, recyclers and generators to provide separate
collection systems or convenient drop-off locations for recyclable materials and particularly for
separated toxic components of the waste stream like dry cell batteries and tires to ensure that they
are not incinerated or disposed of in a landfill. Upon effectivity of this Act, toxic materials present in
the waste stream should be separated at source, collected separately and further screened and sent
to appropriate hazardous waste treatment and disposal plants, consistent with the provisions of R.A.
No. 6969.

Section 29. Non-Environmentally Acceptable Products - Within one (1) year from the effectivity of
this Act, the Commission shall, after public notice and hearing, prepare a list of nonenvironmentally
acceptable products as defined in this Act that shall be prohibited according to a schedule that shall
be prepared by the Commission: Provided, however, That non-environmentally acceptable products
shall not be prohibited unless the Commission first finds that there are alternatives available which
are available to consumers at no more than ten percent (10%) greater cost than the disposable
product.

Notwithstanding any other provisions to the contrary, this section shall not apply to:

(a) Packaging used at hospitals, nursing homes or other medical facilities; and

(b) Any packaging which is not environmentally acceptable, but for which there is no
commercially available alternatives as determined by the Commission.

The Commission shall annually review and update the list of prohibited non-environmentally
acceptable products.

Section 30. Prohibition on the Use of Non-Environmentally Acceptable Packaging - No person

owning, operating or conducting a commercial establishment in the country shall sell or convey at
retail or possess with the intent to sell or convey at retail any products that are placed, wrapped or
packaged in or on packaging which is not environmentally acceptable packaging: Provided, That the
Commission shall determine a phaseout period after proper consultation and hearing with the
stakeholders or with the sectors concerned. The presence in the commercial establishment of non-
environmentally acceptable packaging shall constitute a rebuttable presumption of intent to sell or
convey the same at retail to customers.

Any person who is a manufacturer, broker or warehouse operator engaging in the distribution or
transportation of commercial products within the country shall file a report with the concerned local
government within one (1) year from the effectivity of this Act, and annually thereafter, a listing of
any products in packaging which is not environmentally acceptable. The Commission shall prescribe
the form of such report in its regulations.

A violation of this Section shall be sufficient grounds for the revocation, suspension, denial or non-
renewal of any license for the establishment in which the violation occurs.

Section 31. Recycling Market Development - The Commission together with the National Ecology
Center, the DTI and the Department of Finance shall establish procedures, standards and strategies
to market recyclable materials and develop the local market for recycle goods, including but not
limited to:

(a) measures providing economic incentives and assistance including loans and grants for
the establishment of privately-owned facilities to manufacture finished products from post-
consumer materials;

(b) guarantees by the national and local governments to purchase a percentage of the output
of the facility; and

(c) maintaining a list of prospective buyers, establishing contact with prospective buyers and
reviewing and making any necessary changes in collecting or processing the materials to
improve their marketability.
In order to encourage establishments of new facilities to produce goods from post-consumer and
recovered materials generated within local government units, and to conserve energy by reducing
materials transportation, whenever appropriate, each local government unit may arranged for long-
term contracts to purchase a substantial share of the product output of a proposed facility which will
be based in the jurisdiction of the local government unit if such facility will manufacture such finished
products form post-consumer and recovered materials.

Section 32. Establishment of LGU Materials Recovery Facility. - There shall be established a

Materials Recovery Facility (MRF) in every barangay or cluster of barangays. The facility shall be
established in a barangay-owned or -leased land or any suitable open space to be determined by
the barangay through its Sanggunian. For this purpose, the barangay or cluster of barangays shall
allocate a certain parcel of land for the MRF. The MRF shall receive mixed waste for final sorting,
segregation, composting, and recycling. The resulting residual wastes shall be transferred to a long
term storage or disposal facility or sanitary landfill.

Section 33. Guidelines for Establishment of Materials Recovery Facility - Materials recovery facilities
shall be designed to receive, sort, process and store compostable and recyclable material efficiently
and in an environmentally sound manner. The facility shall address the following considerations:

(a) The building and/or land layout and equipment must be designed to accommodate
efficient and safe materials processing, movement, and storage; and

(b) The building must be designed to allow efficient and safe external access and to
accommodate internal flow.

Article 5
Composting

Section 34. Inventory of Markets of Composts - Within six (6) months after the effectivity of this Act,
the DA shall publish an inventory of existing markets and demands for composts. Said inventory
shall thereafter be updated and published annually: Provided, That the composting of agricultural
wastes and other compostable materials, including but not limited to garden wastes, shall be
encouraged.

Section 35. Guidelines for Compost Quality - Compost products intended to be distributed

commercially shall conform with the standards for organic fertilizers set by the DA. The DA shall
assist the compost producers to ensure that the compost products conform to such standards.

Article 6
Waste Management Facilities

Section 36. Inventory of Waste Disposal Facilities - Within six (6) months from the effectivity of this
Act, the Department, in cooperation with the DOH, DILG and other concerned agencies, shall
publish an inventory of all solid waste disposal facilities or sites in the country.

Section 37. Prohibition Against the Use of Open Dumps for Solid Waste - No open dumps shall be
established and operated, nor any practice or disposal of solid waste by any person, including LGUs,
which constitutes the use of open dumps for solid wastes, be allowed after the effectivity of this
Acts: Provided, That within three (3) years after the effectivity of this Act, every LGU shall convert its
open dumps into controlled dumps, in accordance with the guidelines set in Sec. 41 of this
Act: Provided, further, That no controlled dumps shall be allowed five (5) years following the
effectivity of this Act.

Section 38. Permit for Solid Waste Management Facility Construction and Expansion - No person
shall commence operation, including site preparation and construction of a new solid waste
management facility or the expansion of an existing facility until said person obtains an Environment
Compliance Certificate (ECC) from the Department pursuant to P.D. 1586 and other permits and
clearances form concerned agencies.

Section 39. Guidelines for Controlled Dumps - The following shall be the minimum considerations
for the establishments of controlled dumps:

(a) Regular inert cover;

(b) Surface water and peripheral site drainage control;

(c) Provision for aerobic and anaerobic decomposition;

(d) Restriction of waste deposition to small working areas;

(e) Fence, including provisions for litter control;

(f) Basic record-keeping;

(g) Provision of maintained access road;

(h) Controlled waste picking and trading;

(i) Post-closure site cover and vegetation; and

(j) Hydro geological siting.

Section 40. Criteria for Siting a Sanitary Landfill - The following shall be the minimum criteria for the
siting of sanitary landfills:

(a) The site selected must be consistent with the overall land use plan of the LGU;

(b) The site must be accessible from major roadways or thoroughfares;

(c) The site should have an adequate quantity of earth cover material that is easily handled
and compacted;

(d) The site must be chosen with regard for the sensitivities of the community's residents;

(e) The site must be located in an area where the landfill's operation will not detrimentally
affect environmentally sensitive resources such as aquifer, groundwater reservoir or
watershed area;
 (f) The site should be large enough to accommodate the community's wastes for a period of
five (5) years during which people must internalize the value of environmentally sound and
sustainable solid waste disposal;

(g) The site chosen should facilitate developing a landfill that will satisfy budgetary
constraints, including site development, operation for many years, closure, post-closure care
and possible remediation costs;

(h) Operating plans must include provisions for coordinating with recycling and resource
recovery projects; and

(i) Designation of a separate containment area for household hazardous wastes.

Section 41. Criteria for Establishment of Sanitary Landfill - The following shall be the minimum
criteria for the establishment of sanitary landfills:

(a) Liners - a system of clay layers and/or geosynthethic membranes used to contain
leachate and reduce or prevent contaminant flow to groundwater;

(b) Leachate collection and treatment system - installation of pipes at the low areas of the
liner to collect leachate for storage and eventual treatment and discharge;

(c) Gas control and recovery system - a series of vertical wells or horizontal trenches
containing permeable materials and perforated piping placed in the landfill to collect gas for
treatment or productive use as an energy source;

(d) Groundwater monitoring well system - wells placed at an appropriate location and depth
for taking water that are representative of ground water quality;

(e) Cover - two (2) forms of cover consisting of soil and geosynthetic materials to protect the
waste from long-term contact with the environment:

(i) a daily cover placed over the waste at the close of each day's operations, and;

(ii) a final cover, or cap, which is the material placed over the completed landfill to
control infiltration of water, gas emission to the atmosphere, and erosion.

(f) Closure procedure with the objectives of establishing low maintenance cover systems and
final cover that minimizes the infiltration of precipitation into the waste. Installation of the final
cover must be completed within six (6) months of the last receipt of waste;

(g) Post-closure care procedure - During this period, the landfill owner shall be responsible
for providing for the general upkeep of the landfill, maintaining all of the landfill's
environmental protection features, operating monitoring equipment, remediating groundwater
should it become contaminated and controlling landfill gas migration or emission.

Section 42. Operating Criteria for Sanitary Landfills - In the operation of a sanitary land fill, each site
operator shall maintain the following minimum operating equipments:

(a) Disposal site records of, but not limited to:

 (1) Records of weights or volumes accepted in a form and manner approved by the
Department. Such records shall be submitted to the Department upon request,
accurate to within ten percent (10%) and adequate for overall planning purposes and
forecasting the rate of site filling;

(2) Records of excavations which may affect the safe and proper operation of the site
or cause damage to adjoining properties;

(3) Daily log book or file of the following information: fires, landslides, earthquake
damage, unusual and sudden settlement, injury and property damage, accidents,
explosions, receipts or rejection of unpermitted wastes, flooding and other unusual
occurrences;

(4) Record of personnel training; and

(5) Copy of written notification to the Department, local health agency, and fire
authority of names, addresses and telephone numbers of the operator or responsible
party of the site;

(b) Water quality monitoring of surface and ground waters and effluent, and gas emissions;

(c) Documentation of approvals, determinations and other requirements by the Department;

(d) Signs:

(1) Each point of access from a public road shall be posted with an easily visible sigh
indicating the facility name and other pertinent information as required by the
Department;

(2) If the site is open to the public, there shall be an easily visible sign at the primary
entrance of the site indicating the name of the site operator, the operator's telephone
number, and hours of operation; an easily visible sign at an appropriate point shall
indicate the schedule of changes and the general types of materials which will either
be accepted or not;

(3) If the site is open to the public, there shall be an easily visible road sign and/or
traffic control measures which direct traffic to the active face and other areas where
wastes or recyclable materials will be deposited; and

(4) Additional signs and/or measures may be required at a disposal site by the
Department to protect personnel and public health and safety;

(e) Monitoring of quality of surface, ground and effluent waters, and gas emissions;

(f) The site shall be designed to discourage unauthorized access by persons and vehicles by
using a perimeter barrier or topographic constraints. Areas within the site where open
storage, or pounding of hazardous materials occurs shall be separately fenced or otherwise
secured as determined by the Department. The Department may also require that other
areas of the site be fenced to create an appropriate level of security;
(g) Roads within the permitted facility boundary shall be designed to minimize the generation
of dust and the tracking of material onto adjacent public roads. Such roads shall be kept in
safe condition and maintained such that vehicle access and unloading can be conducted
during inclement weather;

(h) Sanitary facilities consisting of adequate number of toilets and handwashing facilities,
shall be available to personnel at or in the immediate vicinity of the site;

(i) Safe and adequate drinking water supply for the site personnel shall be available;

(j) The site shall have communication facilities available to site personnel to allow quick
response to emergencies;

(k) Where operations are conducted during hours of darkness, the site and/or equipment
shall be equipped with adequate lighting as approved by the Department to ensure safety
and to monitor the effectiveness of operations;

(l) Operating and maintenance personnel shall wear and use appropriate safety equipment
as required by the Department;

(m) Personnel assigned to operate the site shall be adequately trained in subject pertinent to
the site operation and maintenance, hazardous materials recognition and screening, and
heavy equipment operations, with emphasis on safety, health, environmental controls and
emergency procedures. A record of such training shall be placed in the operating record;

(n) The site operator shall provide adequate supervision of a sufficient number of qualified
personnel to ensure proper operation of the site in compliance with all applicable laws,
regulations, permit conditions and other requirements. The operator shall notify the
Department and local health agency in writing of the names, addresses, and telephone
number of the operator or responsible party. A copy of the written notification shall be placed
in the operation record;

(o) Any disposal site open to the public shall have an attendant present during public
operating hours or the site shall be inspected by the operator on a regularly scheduled basis,
as determined by the Department;

(p) Unloading of solid wastes shall be confined to a small area as possible to accommodate
the number of vehicles using the area without resulting in traffic, personnel, or public safety
hazards. Waste materials shall normally be deposited at the toe of the fill, or as otherwise
approved by the Department;

(q) Solid waste shall be spread and compacted in layers with repeated passages of the
landfill equipment to minimize voids within the cell and maximize compaction. The loose
layer shall not exceed a depth approximately two feet before compaction. Spreading and
compacting shall be accomplished as rapidly as practicable, unless otherwise approved by
the Department;

(r) Covered surfaces of the disposal area shall be graded to promote lateral runoff of
precipitation and to prevent pounding. Grades shall be established of sufficient slopes to
account for future settlement of the fill surface. Other effective maintenance methods may be
allowed by the Department; and
 (s) Cover material or native material unsuitable for cover, stockpiled on the site for use or
removal, shall be placed so as not to cause problems or interfere with unloading, spreading,
compacting, access, safety drainage, or other operations.

Article 7
Local Government Solid Waste Management

Section 43. Guidelines for Identification of Common Solid Waste Management Problems - For
purposes of encouraging and facilitating the development of local government plans for solid waste
management, the Commission shall, as soon as practicable but not later than six (6) months from
the effectivity of this Act, publish guidelines for the identification of those areas which have common
solid waste management problems and are appropriate units for clustered solid waste management
services. The guidelines shall be based on the following:

(a) the size and location of areas which should be included;

(b) the volume of solid waste which would be generated;

(c) the available means of coordinating local government planning between and among the
LGUs and for the integration of such with the national plan; and

(d) possible lifespan of the disposal facilities.

Section 44. Establishment of Common Waste Treatment and Disposal Facilities - Pursuant to Sec.
33 of R.A.7160, otherwise known as the Local Government Code, all provinces, cities, municipalities
and barangays, through appropriate ordinances, are hereby mandated to consolidate, or coordinate
their efforts, services, and resources for purposes of jointly addressing common solid waste
management problems and/or establishing common waste disposal facilities.

The Department, the Commission and local solid waste management boards shall provide technical
and marketing assistance to the LGUs.

CHAPTER IV
INCENTIVES

Section 45. Incentives. -

(a) Rewards, monetary or otherwise, shall be provided to individuals, private organizations

and entitles, including non-government organizations, that have undertaken outstanding and
innovative projects, technologies, processes and techniques or activities in re-use, recycling
and reduction. Said rewards shall be sourced from the Fund herein created.

(b) An incentive scheme is hereby provided for the purpose of encouraging LGUs,
enterprises, or private entities, including NGOs, to develop or undertake an effective solid
waste management, or actively participate in any program geared towards the promotion
thereof as provided for in this Act.

(1) Fiscal Incentives. - Consistent with the provisions of E.O. 226, otherwise known as the Omnibus
Investments Code, the following tax incentives shall be granted:
 (a) Tax and Duty Exemption on Imported Capital Equipment and Vehicles - Within ten (10)
years upon effectively of this Act, LGUs, enterprises or private entities shall enjoy tax and
duty free importation of machinery, equipment, vehicles and spare parts used for collection,
transportation, segregation, recycling, re-use and composing of solid wastes: Provided, That
the importation of such machinery, equipment, vehicle and spare parts shall comply with the
following conditions:

(i) They are not manufactured domestically in sufficient quantity, of comparable

quality and at reasonable prices;

(ii) They are reasonably needed and will be used actually, directly and exclusively for
the above mentioned activities;

(iii) The approval of the Board of Investment (BOI) of the DTI for the importation of
such machinery, equipment, vehicle and spare parts.

Provided, further, That the sale, transfer or disposition of such machinery, equipment, vehicle
and spare parts, without prior approval of the (BOI), within five (5) years from the date of
acquisition shall be prohibited, otherwise, the LGU concerned, enterprise or private entities
and the vendee, transferee, or assignee shall be solidarily liable to pay twice the amount of
tax and duty exemption given it.

(b) Tax Credit on Domestic Equipment - Within ten (10) years from the effectivity of this Act,
a tax credit equivalent to 50% of the value of the national internal revenue taxes and
customs duties that would have been waived on the machinery, equipment, vehicle and
spare parts, had these items been imported shall be given to enterprises, private entities,
including NGOs, subject to the same conditions and prohibition cited in the preceding
paragraph.

(c) Tax and Duty Exemption of Donations, Legacies and Gift - All legacies, gifts and
donations to LGUs, enterprises or private entities, including NGOs, for the support and
maintenance of the program for effective solid waste management shall be exempt from all
internal revenue taxes and customs duties, and shall be deductible in full from the gross
income of the donor for income tax purposes.

(2) Non-Fiscal Incentives. - LGUs, enterprises or private entities availing of tax incentives under this
Act shall also be entitled to applicable non-fiscal incentives provided for under E.O. 226, otherwise
known as the Omnibus Investments Code.

The Commission shall provide incentives to businesses and industries that are engaged in the
recycling of wastes and which are registered with the Commission and have been issued ECCs in
accordance with the guidelines established by the Commission. Such incentives shall include
simplified procedures for the importation of equipment, spare parts, new materials, and supplies, and
for the export of processed products.

(3) Financial Assistance Program. - Government financial institutions such as the Development Bank
of the Philippines (DBP), Landbank of the Philippines (LBP), Government Service Insurance System
(GSIS), and such other government institutions providing financial services shall, in accordance with
and to the extent allowed by the enabling provisions of their respective charters or applicable laws,
accord high priority to extend financial services to individuals, enterprises, or private entities
engaged in solid waste management.
(4) Extension of Grants to LGUs. - Provinces, cities and municipalities whose solid waste
management plans have been duly approved by the Commission or who have been commended by
the Commission for adopting innovative solid waste management programs may be entitled to
receive grants for the purpose of developing their technical capacities toward actively participating in
the program for effectively and sustainable solid waste management.

(5) Incentives to Host LGUs. - Local government units who host common waste management
facilities shall be entitled to incentives.

CHAPTER V
FINANCING SOLID WASTE MANAGEMENT

Section 46. Solid Waste Management Fund - There is hereby created, as a special account in the
National Treasury, a Solid Waste Management Fund to be administered by the Commission. Such
fund shall be sourced from the following:

(a) Fines and penalties imposed, proceeds of permits and licenses issued by the Department
under this Act, donations, endowments, grants and contributions from domestic and foreign
sources; and

(b) Amounts specifically appropriated for the Fund under the annual General Appropriations
Act;

The Fund shall be used to finance the following:

(1) products, facilities, technologies and processes to enhance proper solid waste
management;

(2) awards and incentives;

(3) research programs;

(4) information, education, communication and monitoring activities;

(5) technical assistance; and

(6) capability building activities.

LGUs are entitled to avail of the Fund on the basis of their approved solid waste management plan.
Specific criteria for the availment of the Fund shall be prepared by the Commission.

The fines collected under Sec. 49 shall be allocated to the LGU where the fined prohibited acts are
committed in order to finance the solid waste management of said LGU. Such allocation shall be
based on a sharing scheme between the Fund and the LGU concerned.

In no case, however, shall the Fund be used for the creation of positions or payment of salaries and
wages.

Section 47. Authority to Collect Solid Waste Management Fees - The local government unit shall
impose fees in amounts sufficient to pay the costs of preparing, adopting, and implementing a solid
waste management plan prepared pursuant to this Act. The fees shall be based on the following
minimum factors:

(a) types of solid waste;

(b) amount/volume of waste; and

(c) distance of the transfer station to the waste management facility.

The fees shall be used to pay the actual costs incurred by the LGU in collecting the local fees. In
determining the amounts of the fees, an LGU shall include only those costs directly related to the
adoption and implementation of the plan and the setting and collection of the local fees.

CHAPTER VI
PENAL PROVISIONS

Section 48. Prohibited Acts - The following acts are prohibited:

(1) Littering, throwing, dumping of waste matters in public places, such as roads, sidewalks,
canals, esteros or parks, and establishment, or causing or permitting the same;

(2) Undertaking activities or operating, collecting or transporting equipment in violation of

sanitation operation and other requirements or permits set forth in established pursuant;

(3) The open burning of solid waste;

(4) Causing or permitting the collection of non-segregated or unsorted wastes;

(5) Squatting in open dumps and landfills;

(6) Open dumping, burying of biodegradable or non-biodegradable materials in flood prone

areas;

(7) Unauthorized removal of recyclable material intended for collection by authorized

persons;

(8) The mixing of source-separated recyclable material with other solid waste in any vehicle,
box, container or receptacle used in solid waste collection or disposal;

(9) Establishment or operation of open dumps as enjoined in this Act, or closure of said
dumps in violation of Sec. 37;

(10) The manufacture, distribution or use of non-environmentally acceptable packaging

materials;

(11) Importation of consumer products packaged in non-environmentally acceptable

materials;

(12) Importation of toxic wastes misrepresented as "recyclable" or "with recyclable content";

 (13) Transport and dumplog in bulk of collected domestic, industrial, commercial, and
institutional wastes in areas other than centers or facilities prescribe under this Act;

(14) Site preparation, construction, expansion or operation of waste management facilities

without an Environmental Compliance Certificate required pursuant to Presidential Decree
No. 1586 and this Act and not conforming with the land use plan of the LGU;

(15) The construction of any establishment within two hundred (200) meters from open
dumps or controlled dumps, or sanitary landfill; and

(16) The construction or operation of landfills or any waste disposal facility on any aquifer,
groundwater reservoir, or watershed area and or any portions thereof.

Section 49. Fines and Penalties -

(a) Any person who violates Sec. 48 paragraph (1) shall, upon conviction, be punished with a
fine of not less than Three hundred pesos (P300.00) but not more than One thousand pesos
(P1,000.00) or render community service for not less than one (1) day to not more than
fifteen (15) days to an LGU where such prohibited acts are committed, or both;

(b) Any person who violates Sec. 48, pars. (2) and (3), shall, upon conviction be punished
with a fine of not less than Three hundred pesos (P300.00) but not more than One thousand
pesos (P1,000.00) or imprisonment of not less than one (1) day but to not more than fifteen
(15) days, or both;

(c) Any person who violates Sec. 48, pars. (4), (5), (6) and (7) shall, upon conviction, be
punished with a fine of not less than One thousand pesos (P1,000.00) but not more than
Three thousand pesos (P3,000.00) or imprisonment of not less than fifteen (15) day but to
not more than six (6) months, or both;

(d) Any person who violates Sec. 48, pars (8), (9), (10) and (11) for the first time shall, upon
conviction, pay a fine of Five hundred thousand pesos (P500,000.00) plus and amount not
less than five percent (5%) but not more than ten percent (10%) of his net annual income
during the previous year.

The additional penalty of imprisonment of a minimum period of one (1) year but not to
exceed three (3) years at the discretion of the court, shall be imposed for second or
subsequent violations of Sec. 48, pars. (9) and (10).

(e) Any person who violates Sec. 48, pars. (12) and (13) shall, upon conviction, be punished
with a fine not less than Ten thousand pesos (P10,000.00) but not more than Two hundred
thousand pesos (P200,000.00) or imprisonment of not less than thirty (30) days but not more
than three (3) years, or both;

(f) Any person who violates Sec. 48, pars. (14), (15) and (16) shall, upon conviction, be
punished with a fine not less than One hundred thousand pesos (P100,000.00) but not more
than One million pesos (P1,000,000.00), or imprisonment not less than one (1) year but not
more than six (6) years, or both.

If the offense is committed by a corporation, partnership, or other juridical identity duly recognized in
accordance with the law, the chief executive officer, president, general manager, managing partner
or such other officer-in-charge shall be liable for the commission of the offense penalized under this
Act.

If the offender is an alien, he shall, after service of the sentence prescribed above, be deported
without further administrative proceedings.

The fines herein prescribed shall be increased by at lest ten (10%) percent every three (3) years to
compensate for inflation and to maintain the deterrent functions of such fines.

Section 50. Administrative Sanctions - Local government officials and officials of government

agencies concerned who fail to comply with and enforce rules and regulations promulgated relative
to this Act shall be charged administratively in accordance with R.A. 7160 and other existing laws,
rules and regulations

CHAPTER VII
MISCELLANEOUS PROVISIONS

Section 51. Mandatory Public Hearings - Mandatory public hearings for national framework and
local government solid waste management plans shall be undertaken by the Commission and the
respective Boards in accordance with process to be formulated in the implementing rules and
regulations.

Section 52. Citizens Suits - For the purposes of enforcing the provisions of this Act or its
implementing rules and regulations, any citizen may file an appropriate civil, criminal or
administrative action in the proper courts/bodies against:

(a) Any person who violates or fails to comply with the provisions of this Act its implementing
rules and regulations; or

(b) The Department or other implementing agencies with respect to orders, rules and
regulations issued inconsistent with this Act; and/or

(c) Any public officer who willfully or grossly neglects the performance of an act specifically
enjoined as a duty by this Act or its implementing rules and regulations; or abuses his
authority in the performance of his duty; or, in any many improperly performs his duties
under this Act or its implementing rules and regulations; Provided, however, That no suit can
be filed until after thirty-day (30) notice has been given to the public officer and the alleged
violator concerned and no appropriate action has been taken thereon.

The Court shall exempt such action from the payment of filing fees and statements likewise,
upon prima facie showing of the non-enforcement or violation complained of, exempt the plaintiff
from the filing of an injunction bond for the issuance of preliminary injunction.

In the event that the citizen should prevail, the Court shall award reasonable attorney's fees, moral
damages and litigation costs as appropriate.

Section 53. Suits and Strategic Legal Action Against Public Participation (SLAPP) and the
Enforcement of this Act - Where a suit is brought against a person who filed an action as provided in
Sec. 52 of this Act, or against any person, institution or government agency that implements this Act,
it shall be the duty of the investigating prosecutor or the Court, as the case may be, to immediately
make a determination not exceeding thirty (30) days whether said legal action has been filed to
harass, vex, exert undue pressure or stifle such legal recourses of the person complaining of or
enforcing the provisions of this Act. Upon determination thereof, evidence warranting the same, the
Court shall dismiss the complaint and award the attorney's fees and double damages.

This provision shall also apply and benefit public officers who are sued for acts committed in their
official capacity, there being no grave abuse of authority, and done in the course of enforcing this
Act.

Section 54. Research on Solid Waste Management - The Department after consultations with the
cooperating agencies, shall encourage, cooperate with, and render financial and other assistance to
appropriate government agencies and private agencies, institutions and individuals in the conduct
and promotion researches, experiments, and other studies on solid waste management, particularly
those relating to:

>

(a) adverse health effects of the release into the environment of materials present in solid
wastes, and methods to eliminate said effects;

(b) the operation and financing of solid waste disposal programs;

(c) the planning, implementing and operation of resource recovery and resource
conservation systems;

(d) the production of usable forms of recovered resources, including fuel from solid waste;

(e) the development and application of new and improved methods of collecting and
disposing of solid waste and processing and recovering materials and energy from solid
waste;

(f) improvements in land disposal practices for solid waste (including sludge); and

(g) development of new uses of recovered resources and identification of existing or

potential markets of recovered resources.

In carrying out solid waste researches and studies, the Secretary of the Department or the
authorized representative may make grants or enter into contracts with government agencies,
nongovernment organizations and private persons.

Section 55. Public Education and Information - The Commission shall, in coordination with DECS,
TESDA, CHED, DILG and PIA, conduct a continuing education and information campaign on solid
waste management, such education and information program shall:

(a) Aim to develop public awareness of the ill-effects of and the community based solutions
to the solid waste problem;

(b) Concentrate on activities which are feasible and which will have the greatest impact on
the solid waste problem of the country, like resource conservation and recovery, recycling,
segregation at source, re-use, reduction, and composing of solid waste; and
 (c) Encourage the general public, accredited NGOs and people's organizations to publicity
endorse and patronize environmentally acceptable products and packaging materials.

Section 56. Environmental Education in the Formal and Nonformal Sectors - The national
government, through the DECS and in coordination with concerned government agencies, NGOs
and private institutions, shall strengthen the integration of environmental concerns in school curricula
at all levels, with particular emphasis on the theory and practice of waste management principles like
waste minimization, specifically resource conservation and recovery, segregation at source,
reduction, recycling, re-use,and composing, in order to promote environmental awareness and
action among the citizenry.

Section 57. Business and Industry Role - The Commission shall encourage commercial and
industrial establishments, through appropriate incentives other than tax incentives to initiate,
participate and invest in integrated ecological solid waste management projects to manufacture
environment-friendly products, to introduce develop and adopt innovative processes that shall
recycle and re-use materials, conserve raw materials and energy, reduce waste, and prevent
pollution and to undertake community activities to promote and propagate effective solid waste
management practices.

Section 58. Appropriations - For the initial operating expenses of the Commission and the National
Ecology Center as well as the expensed of the local government units to carry out the mandate of
this Act, the amount of Twenty million pesos (P20,000,000.00) is hereby appropriated from the
Organizational Adjustment Fund on the year this Act is approved. Thereafter, it shall submit to the
Department of Budget and Management its proposed budget for inclusion in the General
Appropriations Act.

Section 59. Implementing Rules and Regulations (IRR) - The Department, in coordination with the
Committees on Environment and Ecology of the Senate and House of Representative, respectively,
the representatives of the Leagues of Provinces, Cities, Municipalities and Barangay Councils, the
MMDA and other concerned agencies, shall promulgate the implementing rules and regulations of
this Act, within one (1) year after its enactment: Provided, That rules and regulations issued by other
government agencies and instrumentalities for the prevention and/or abatement of the solid waste
management problem not inconsistent with this Act shall supplement the rules and regulations
issued by the Department, pursuant to the provisions of this Act.

The draft of the IRR shall be published and be the subject of public consultation with affected
sectors. It shall be submitted to the Committee on Environment Ecology of the Senate and House of
Representatives, respectively, for review before approved by the Secretary.

Section 60. Joint Congressional Oversight Committee - There is hereby created a Joint

Congressional Oversight Committee to monitor the implementation of the Act and to oversee the
functions of the Commission. The Committee shall be composed of five (5) Senators and five (5)
Representatives to be appointed by the Senate President and Speaker of the House of
Representatives, respectively. The Oversight Committee shall be co-chaired by a Senator and a
Representative designated by the Senate President and the Speaker of the House of
Representatives, respectively.

Section 61. Abolition of the Presidential Task Force On Waste Management and the Project
Management Office on Solid Waste Management - The Presidential Task Force on Waste
Management which was created by virtue of Memorandum Circular No. 39 dated November 2, 1987,
as amended by Memorandum Circular No. 39A and 88 is hereby abolished.
Further, pursuant to Administrative Order No. 90 dated October 19, 1992, the Project Management
Office on Solid Waste Management is likewise hereby abolished. Consequently their powers and
functions shall be absorbed by the Commission pursuant to the provisions of this Act.

Section 62. Transitory Provision - Pending the establishment of the framework under Sec. 15
hereof, plans under Sec. 16 and promulgation of the IRR under Sec. 59 of this Act, existing laws,
regulations, programs and projects on solid waste management shall

be enforced: Provided, That for specific undertaking, the same may be revised in the interim in
accordance with the intentions of this Act.

Section 63. Report to Congress - The Commission shall report to Congress not later than March 30
of every year following the approval of this Act, giving a detailed account of its accomplishments and
progress on solid waste management during the year and make the necessary recommendations in
areas where there is need for legislative action.

Section 64. Separability Clause - If any provision of this Act or the application of such provision to
any person or circumstances is declared unconstitutional, the remainder of the Act or the application
of such provision to other persons or circumstances shall not be affected by such declaration.

Section 65. Repealing Clause - All laws, decrees, issuances, rules and regulations or parts thereof
inconsistent with the provisions of this Act are hereby repealed or modified accordingly.

Section 66. Effectivity - This Act shall take effect fifteen (15) days after its publication in at least two
(2) newspapers of general circulation.

Approved: January 26, 2001

Republic Act No. 8550             February 25, 1998

AN ACT PROVIDING FOR THE DEVELOPMENT, MANAGEMENT AND CONSERVATION OF

THE FISHERIES AND AQUATIC RESOURCES, INTEGRATING ALL LAWS PERTINENT
THERETO, AND FOR OTHER PURPOSES

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

assembled:

Section 1. Title. - This Act shall be known as "The Philippine Fisheries Code of 1998."

CHAPTER I
Declaration of Policy and Definitions

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

(a) to achieve food security as the overriding consideration in the utilization, management,
development, conservation and protection of fishery resources in order to provide the food
needs of the population. A flexible policy towards the attainment of food security shall be
adopted in response to changes in demographic trends for fish, emerging trends in the trade
 of fish and other aquatic products in domestic and international markets, and the law of
supply and demand; lawphi1 ™

(b) to limit access to the fishery and aquatic resources of the Philippines for the exclusive
use and enjoyment of Filipino citizens;

(c) to ensure the rational and sustainable development, management and conservation of
the fishery and aquatic resources in Philippine waters including the Exclusive Economic
Zone (EEZ) and in the adjacent high seas, consistent with the primordial objective of
maintaining a sound ecological balance, protecting and enhancing the quality of the
environment;

(d) to protect the rights of fisherfolk, especially of the local communities with priority to
municipal fisherfolk, in the preferential use of the municipal waters. Such preferential use,
shall be based on, but not limited to, Maximum Sustainable Yield (MSY) or Total Allowable
Catch (TAC) on the basis of resources and ecological conditions, and shall be consistent
with our commitments under international treaties and agreements;

(e) to provide support to the fishery sector, primarily to the municipal fisherfolk, including
women and youth sectors, through appropriate technology and research, adequate financial,
production, construction of post-harvest facilities, marketing assistance, and other services.
The protection of municipal fisherfolk against foreign intrusion shall extend to offshore fishing
grounds. Fishworkers shall receive a just share for their labor in the utilization of marine and
fishery resources;

(f) to manage fishery and aquatic resources, in a manner consistent with the concept of an
integrated coastal area management in specific natural fishery management areas,
appropriately supported by research, technical services and guidance provided by the State;
and

(g) to grant the private sector the privilege to utilize fishery resources under the basic
concept that the grantee, licensee or permittee thereof shall not only be a privileged
beneficiary of the State but also active participant and partner of the Government in the
sustainable development, management, conservation and protection of the fishery and
aquatic resources of the country.

The state shall ensure the attainment of the following objectives of the fishery sector:

1. Conservation, protection and sustained management of the country's fishery and aquatic
resources;

2. Poverty alleviation and the provision of supplementary livelihood among municipal

fisherfolk;

3. Improvement of productivity of aquaculture within ecological limits;

4. Optimal utilization of offshore and deep-sea resources; and

5. Upgrading of post-harvest technology.

Section 3. Application of its Provisions. - The provisions of this Code shall be enforced in:
 (a) all Philippine waters including other waters over which the Philippines has sovereignty
and jurisdiction, and the country's 200-nautical mile Exclusive Economic Zone (EEZ) and
continental shelf;

(b) all aquatic and fishery resources whether inland, coastal or offshore fishing areas,
including but not limited to fishponds, fishpens/cages; and

(c) all lands devoted to aquaculture, or businesses and activities relating to fishery, whether
private or public lands.
lawphi1 ©

Section 4. Definition of Terms. - As used in this Code, the following terms and phrases shall mean
as follows:

1. Ancillary Industries - firms or companies related to the supply, construction and

maintenance of fishing vessels, gears, nets and other fishing paraphernalia; fishery machine
shops; and other facilities such as hatcheries, nurseries, feed plants, cold storage and
refrigeration, processing plants and other pre-harvest and post-harvest facilities.

2. Appropriate Fishing Technology - adaptable technology, both in fishing and ancillary

industries, that is ecologically sound, locally source-based and labor intensive.

3. Aquaculture - fishery operations involving all forms of raising and culturing fish and other
fishery species in fresh, brackish and marine water areas.

4. Aquatic Pollution - the introduction by human or machine, directly or indirectly, of

substances or energy to the aquatic environment which result or is likely to result in such
deleterious effects as to harm living and non-living aquatic resources, pose potential and/or
real hazard to human health, hindrance to aquatic activities such as fishing and navigation,
including dumping/disposal of waste and other marine litters, discharge of petroleum or
residual products of petroleum or carbonaceous materials/substances, and other,
radioactive, noxious or harmful liquid, gaseous or solid substances, from any water, land or
air transport or other human-made structure. Deforestation, unsound agricultural practices
such as the use of banned chemicals and excessive use of chemicals, intensive use of
artificial fish feed, and wetland conversion, which cause similar hazards and deleterious
effects shall also constitute aquatic pollution.

5. Aquatic Resources - includes fish, all other aquatic flora and fauna and other living
resources of the aquatic environment, including, but not limited to, salt and corals.

6. Artificial Reefs - any structure of natural or man-made materials placed on a body of water
to serve as shelter and habitat, source of food, breeding areas for fishery species and
shoreline protection.

7. Catch Ceilings - refer to the annual catch limits allowed to be taken, gathered or harvested
from any fishing area in consideration of the need to prevent overfishing and harmful
depletion of breeding stocks of aquatic organisms.

8. Closed Season - the period during which the taking of specified fishery species by a
specified fishing gear is prohibited in a specified area or areas in Philippine waters.
9. Coastal Area/Zone - is a band of dry land and adjacent ocean space (water and
submerged land. in which terrestrial processes and uses directly affect oceanic processes
and uses, and vice versa; its geographic extent may include areas within a landmark limit of
one (1. kilometer from the shoreline at high tide to include mangrove swamps, brackish water
ponds, nipa swamps, estuarine rivers, sandy beaches and other areas within a seaward limit
of 200 meters isobath to include coral reefs, algal flats, seagrass beds and other soft-bottom
areas.

10. Commercial Fishing - the taking of fishery species by passive or active gear for trade,
business & profit beyond subsistence or sports fishing, to be further classified as:

(1) Small scale commercial fishing - fishing with passive or active gear utilizing
fishing vessels of 3.1 gross tons (GT) up to twenty (20) GT;

(2) Medium scale commercial fishing - fishing utilizing active gears and vessels of
20.1 GT up to one hundred fifty (150) GT; and

(3) Large commercial fishing - fishing utilizing active gears and vessels of more than
one hundred fifty (150) GT.

11. Commercial Scale - a scheme of producing a minimum harvest per hectare per year of
milkfish or other species including those raised in pens, cages, and tanks to be determined
by the Department in consultation with the concerned sectors;

12. Coral - the hard calcareous substance made up of the skeleton of marine coelenterate
polyps which include reefs, shelves and atolls or any of the marine coelenterate animals
living in colonies where their skeletons form a stony mass. They include: (a. skeletons of
anthozoan coelenterates characterized as having a rigid axis of compact calcareous or horny
spicules, belonging to the genus corallium as represented by the red, pink, and white corals
which are considered precious corals; (b. skeletons of anthozoan coelenterates
characterized by thorny, horny axis such as the antipatharians represented by the black
corals which are considered semi-precious corals; and (c. ordinary corals which are any kind
of corals that are not precious nor semi-precious.

13. Coral Reef - a natural aggregation of coral skeleton, with or without living coral polyps,
occurring in intertidal and subtidal marine waters.

14. Demarcated Areas - boundaries defined by markers and assigned exclusively to specific
individuals or organizations for certain specified and limited uses such as:

(a) Aquaculture, sea ranching and sea farming;

(b) Fish aggregating devices;

(c) Fixed and passive fishing gears; and

(d) Fry and fingerlings gathering.

15. Department - shall mean the Department of Agriculture.

16. Electrofishing - the use of electricity generated by batteries, electric generators and other
source of electric power to kill, stupefy, disable or render unconscious fishery species,
whether or not the same are subsequently recovered.

17. Endangered Rare and/or Threatened Species - aquatic plants, animals, including some
varieties of corals and sea shells in danger of extinction as provided for in existing fishery
laws, rules and regulations or in the Protected Areas and Wildlife Bureau of the Department
of Environment and Natural Resources (DENR. and in the Convention on the International
Trade of Endangered Species of Flora and Fauna (CITES).

18. Exclusive Economic Zone (EEZ. - an area beyond and adjacent to the territorial sea
which shall not extend beyond 200 nautical miles from the baselines as defined under
existing laws.

19. FARMCs - the Fisheries and Aquatic Resources Management Councils.

20. Farm-to-Market Roads - shall include roads linking the fisheries production sites, coastal
landing points and other post-harvest facilities to major market and arterial roads and
highways.

21. Fine Mesh Net - net with mesh size of less than three centimeters (3 cm.. measured
between two (2. opposite knots of a full mesh when stretched or as otherwise determined by
the appropriate government agency.

22. Fish and Fishery/Aquatic Products - include not only finfish but also mollusks,
crustaceans, echinoderms, marine mammals, and all other species of aquatic flora and
fauna and all other products of aquatic living resources in any form.

23. Fish Cage - refers to an enclosure which is either stationary or floating made up of nets
or screens sewn or fastened together and installed in the water with opening at the surface
or covered and held in a place by wooden/bamboo posts or various types of anchors and
floats.

24. Fish Corral or "Baklad" - a stationary weir or trap devised to intercept and capture fish
consisting of rows of bamboo stakes, plastic nets and other materials fenced with split blood
mattings or wire mattings with one or more enclosures, usually with easy entrance but
difficult exit, and with or without leaders to direct the fish to the catching chambers, purse or
bags.

25. Fish fingerlings - a stage in the life cycle of the fish measuring to about 6-13 cm.
depending on the species.

26. Fish fry - a stage at which a fish has just been hatched usually with sizes from 1-2.5 cm.

27. Fish pen - an artificial enclosure constructed within a body of water for culturing fish and
fishery/aquatic resources made up of poles closely arranged in an enclosure with wooden
materials, screen or nylon netting to prevent escape of fish.

28. Fisherfolk - people directly or personally and physically engaged in taking and/or
culturing and processing fishery and/or aquatic resources. lawphi1™
29. Fisherfolk Cooperative - a duly registered association of fisherfolk with a common bond
of interest, who have voluntarily joined together to achieve a lawful common social or
economic end, making equitable contribution to the capital requirement and accepting a fair
share of the risks and benefits of the undertakings in accordance with universally accepted
cooperative principles.

30. Fisherfolk Organization - an organized group, association, federation, alliance or an

institution of fisherfolk which has at least fifteen (15. members, a set of officers, a constitution
and by-laws, an organizational structure and a program of action.

31. Fisheries - refers to all activities relating to the act or business of fishing, culturing,
preserving, processing, marketing, developing, conserving and managing aquatic resources
and the fishery areas, including the privilege to fish or take aquatic resource thereof.

32. Fish Pond - a land-based facility enclosed with earthen or stone material to impound
water for growing fish.

33. Fishing Boat/Gear License - a permit to operate specific types of fishing boat/gear for
specific duration in areas beyond municipal waters for demersal or pelagic fishery resources.

34. Fishery Management Areas - a bay, gulf, lake or any other fishery area which may be
delineated for fishery resource management purposes.

35. Fishery Operator - one who owns and provides the means including land, labor, capital,
fishing gears and vessels, but does not personally engage in fishery.

36. Fishery Refuge and Sanctuaries - a designated area where fishing or other forms of
activities which may damage the ecosystem of the area is prohibited and human access may
be restricted.

37. Fishery Reserve - a designated area where activities are regulated and set aside for
educational and research purposes.

38. Fishery Species - all aquatic flora and fauna including, but not restricted to, fish, algae,
coelenterates, mollusks, crustaceans, echinoderms and cetaceans.

39. Fishing - the taking of fishery species from their wild state of habitat, with or without the
use of fishing vessels.

40. Fishing gear - any instrument or device and its accessories utilized in taking fish and
other fishery species.

(a) Active fishing gear - is a fishing device characterized by gear movements, and/or
the pursuit of the target species by towing, lifting, and pushing the gears,
surrounding, covering, dredging, pumping and scaring the target species to
impoundments; such as, but not limited to, trawl, purse seines, Danish seines, bag
nets, paaling, drift gill net and tuna longline.

(b) Passive fishing gear - is characterized by the absence of gear movements and/or
the pursuit of the target species; such as, but not limited to, hook and line, fishpots,
traps and gill nets across the path of the fish.
41. Fishing vessel - any boat, ship or other watercraft equipped to be used for taking of
fishery species or aiding or assisting one (1. or more vessels in the performance of any
activity relating to fishing, including, but not limited to, preservation, supply, storage,
refrigeration, transportation and/or processing.

42. Fishing with Explosives - the use of the dynamite, other explosives or other chemical
compounds that contain combustible elements or ingredients which upon ignition by friction,
concussion, percussion or detonation of all or parts of the compound, will kill, stupefy,
disable or render unconscious any fishery species. It also refers to the use of any other
substance and/or device which causes an explosion that is capable of producing the said
harmful effects on any fishery species and aquatic resources and capable of damaging and
altering the natural habitat.

43. Fishing with Noxious or Poisonous Substances - the use of any substance, plant extracts
or juice thereof, sodium cyanide and/or cyanide compounds or other chemicals either in a
raw or processed form, harmful or harmless to human beings, which will kill, stupefy, disable
or render unconscious any fishery species and aquatic resources and capable of damaging
and altering the natural habitat.

44. Fishworker - a person regularly or not regularly employed in commercial fishing and
related industries, whose income is either in wage, profit-sharing or stratified sharing basis,
including those working in fish pens, fish cages, fish corrals/traps, fishponds, prawn farms,
sea farms, salt beds, fish ports, fishing boat or trawlers, or fish processing and/or packing
plants. Excluded from this category are administrators, security guards and overseers.

45. Food Security - refers to any plan, policy or strategy aimed at ensuring adequate
supplies of appropriate food at affordable prices. Food security may be achieved through
self-sufficiency (i.e. ensuring adequate food supplies from domestic production), through
self-reliance (i.e. ensuring adequate food supplies through a combination of domestic
production and importation), or through pure importation.

46. Foreshore Land - a string of land margining a body of water; the part of a seashore
between the low-water line usually at the seaward margin of a low tide terrace and the upper
limit of wave wash at high tide usually marked by a beach scarp or berm.

47. Fully-developed Fishpond Area - a clean leveled area enclosed by dikes, at least one
foot higher than the highest floodwater level in the locality and strong enough to resist
pressure at the highest flood tide; consists of at least a nursery pond, a transition pond, a
rearing pond or a combination of any or all said classes of ponds, and a functional water
control system and producing in a commercial scale.

48. Gross Tonnage - includes the underdeck tonnage, permanently enclosed spaces above
the tonnage deck, except for certain exemptions. In broad terms, all the vessel's 'closed-in'
spaces expressed in volume terms on the bases of one hundred cubic feet (that equals one
gross ton).

49. Inland Fishery - the freshwater fishery and brackishwater fishponds.

50. Lake - an inland body of water, an expanded part of a river, a reservoir formed by a dam,
or a lake basin intermittently or formerly covered by water.
51. Limited Access - a fishery policy by which a system of equitable resource and allocation
is established by law through fishery rights granting and licensing procedure as provided by
this Code.

52. Mangroves - a community of intertidal plants including all species of trees, shrubs, vines
and herbs found on coasts, swamps, or border of swamps.

53. Maximum Sustainable Yield (MSY. - is the largest average quantity of fish that can be
harvested from a fish stocks/resource within a period of time (e.g. one year. on a sustainable
basis under existing environmental conditions.

54. Migratory species - refers to any fishery species which in the course of their life could
travel from freshwater to marine water or vice versa, or any marine species which travel over
great distances in waters of the ocean as part of their behavioral adaptation for survival and
speciation:

(a) Anadromous species - marine fishes which migrate to freshwater areas to spawn;

(b) Catadromous species - freshwater fishes which migrate to marine areas to

spawn.

55. Monitoring, control and surveillance -

(a) Monitoring - the requirement of continuously observing: (1) fishing effort which
can be expressed by the number of days or hours of fishing, number of fishing gears
and number of fisherfolk; (2) characteristics of fishery resources; and (3) resource
yields (catch);

(b) Control - the regulatory conditions (legal framework) under which the exploitation,
utilization and disposition of the resources may be conducted; and

(c) Surveillance - the degree and types of observations required to maintain

compliance with regulations. lawphi1™ALF

56. Municipal fisherfolk - persons who are directly or indirectly engaged in municipal fishing
and other related fishing activities.

57. Municipal fishing - refers to fishing within municipal waters using fishing vessels of three
(3. gross tons or less, or fishing not requiring the use of fishing vessels.

58. Municipal waters - include not only streams, lakes, inland bodies of water and tidal
waters within the municipality which are not included within the protected areas as defined
under Republic Act No. 7586 (The NIPAS Law), public forest, timber lands, forest reserves or
fishery reserves, but also marine waters included between two (2. lines drawn perpendicular
to the general coastline from points where the boundary lines of the municipality touch the
sea at low tide and a third line parallel with the general coastline including offshore islands
and fifteen (15. kilometers from such coastline. Where two (2. municipalities are so situated
on opposite shores that there is less than thirty (30. kilometers of marine waters between
them, the third line shall be equally distant from opposite shore of the respective
municipalities.
59. Non-governmental organization (NGO. - an agency, institution, a foundation or a group of
persons whose purpose is to assist peoples organizations/associations in various ways
including, but not limited to, organizing, education, training, research and/or resource
accessing.

60. Payao - a fish aggregating device consisting of a loating raft anchored by a weighted line
with suspended materials such as palm fronds to attract pelagic and schooling species
common in deep waters.

61. Pearl Farm Lease - public waters leased for the purpose of producing cultured pearls.

62. People's Organization - a bona fide association of citizens with demonstrated capacity to
promote the public interest and with identifiable leadership, membership and structure. Its
members belong to a sector/s who voluntarily band themselves together to work for and by
themselves for their own upliftment, development and greater good.

63. Person - natural or juridical entities such as individuals, associations, partnership,

cooperatives or corporations.

64. Philippine waters - include all bodies of water within the Philippine territory such as lakes,
rivers, streams, creeks, brooks, ponds, swamps, lagoons, gulfs, bays and seas and other
bodies of water now existing or which may hereafter exist in the provinces, cities,
municipalities, and barangays and the waters around, between and connecting the islands of
the archipelago regardless of their breadth and dimensions, the territorial sea, the sea beds,
the insular shelves, and all other waters over which the Philippines has sovereignty and
jurisdiction including the 200-nautical miles Exclusive Economic Zone and the continental
shelf.

65. Post-harvest facilities - these facilities include, but are not limited to, fishport, fishlanding,
ice plants and cold storages, fish processing plants.

66. Purse Seine - a form of encircling net having a line at the bottom passing through rings
attached to the net, which can be drawn or pursed. In general, the net is set from a boat or
pair of boats around the school of fish. The bottom of the net is pulled closed with the purse
line. The net is then pulled aboard the fishing boat or boats until the fish are concentrated in
the bunt or fish bag.

67. Resource Rent - the difference between the value of the products produced from
harvesting a publicly owned resource less the cost of producing it, where cost includes the
normal return to capital and normal return to labor.

68. Sea farming - the stocking of natural or hatchery-produced marine plants or animals,
under controlled conditions, for purposes of rearing and harvesting, but not limited to
commercially-important fishes, mollusks (such as pearl and giant clam culture), including
seaweeds and seagrasses.

69. Sea ranching - the release of the young of fishery species reared in hatcheries and
nurseries into natural bodies of water for subsequent harvest at maturity or the manipulation
of fishery habitat, to encourage the growth of the wild stocks.

70. Secretary - the Secretary of the Department of Agriculture.

 71. Superlight - also called magic light, is a type of light using halogen or metal halide bulb
which may be located above the sea surface or submerged in the water. It consists of a
ballast, regulator, electric cable and socket. The source of energy comes from a generator,
battery or dynamo coupled with the main engine.

72. Total Allowable Catch (TAC. - the maximum harvest allowed to be taken during a given
period of time from any fishery area, or from any fishery species or group of fishery species,
or a combination of area and species and normally would not exceed the MSY.

73. Trawl - an active fishing gear consisting of a bag shaped net with or without otter boards
to open its opening which is dragged or towed along the bottom or through the water column
to take fishery species by straining them from the water, including all variations and
modifications of trawls (bottom, mid-water, and baby trawls) and tow nets.

CHAPTER II
Utilization, Management, Development, Conservation and Allocation System of Fisheries and
Aquatic Resources

Section 5. Use of Philippine Waters. - The use and exploitation of the fishery and aquatic
resources in Philippine waters shall be reserved exclusively to Filipinos: Provided, however, That
research and survey activities may be allowed under strict regulations, for purely research, scientific,
technological and educational purposes that would also benefit Filipino citizens.

Section 6. Fees and Other Fishery Charges. - The rentals for fishpond areas covered by the
Fishpond Lease Agreement (FLA) and license fees for Commercial Fishing Boat Licenses (CFBL)
shall be set at levels that reflect resource rent accruing from the utilization of resources and shall be
determined by the Department: Provided, That the Department shall also prescribe fees and other
fishery charges and issue the corresponding license or permit for fishing gear, fishing accessories
and other fishery activities beyond the municipal waters: Provided, further, That the license fees of
fishery activity in municipal waters shall be determined by the Local Government Units (LGUs) in
consultation with the FARMCs. The FARMCs may also recommend the appropriate license fees that
will be imposed.

Section 7. Access to Fishery Resources. - The Department shall issue such number of licenses
and permits for the conduct of fishery activities subject to the limits of the MSY of the resource as
determined by scientific studies or best available evidence. Preference shall be given to resource
users in the local communities adjacent or nearest to the municipal waters.

Section 8. Catch Ceiling Limitations. - The Secretary may prescribe limitations or quota on the
total quantity of fish captured, for a specified period of time and specified area based on the best
available evidence. Such a catch ceiling may be imposed per species of fish whenever necessary
and practicable: Provided, however, That in municipal waters and fishery management areas, and
waters under the jurisdiction of special agencies, catch ceilings may be established upon the
concurrence and approval or recommendation of such special agency and the concerned LGU in
consultation with the FARMC for conservation or ecological purposes.

Section 9. Establishment of Closed Season. - The Secretary may declare, through public notice in
at least two (2) newspapers of general circulation or in public service announcements, whichever is
applicable, at least five (5) days before the declaration, a closed season in any or all Philippine
waters outside the boundary of municipal waters and in bays, for conservation and ecological
purposes. The Secretary may include waters under the jurisdiction of special agencies, municipal
waters and bays, and/or other areas reserved for the use of the municipal fisherfolk in the area to be
covered by the closed season: Provided, however, That this shall be done only upon the
concurrence and approval or recommendation of such special agency and the concerned LGU and
FARMC: Provided, further, That in municipal waters, fishery management areas and other areas
reserved for the use of the municipal fisherfolk, closed season may be established by the concerned
LGU in consultation with the FARMC for conservation or ecological purposes. The FARMCs may
also recommend the establishment of closed seasons in municipal waters, fisheries management
and other areas reserved for the use of the municipal fisherfolk.

Section 10. Introduction of Foreign Aquatic Species. - No foreign finfish, mollusk, crustacean or

aquatic plants shall be introduced in Philippine waters without a sound ecological, biological and
environmental justification based on scientific studies subject to the bio-safety standard as provided
for by existing laws: Provided, however, That the Department may approve the introduction of
foreign aquatic species for scientific/research purposes.

Section 11. Protection of Rare, Threatened and Endangered Species. - The Department shall
declare closed seasons and take conservation and rehabilitation measures for rare, threatened and
endangered species, as it may determine, and shall ban the fishing and/or taking of rare, threatened
and/or endangered species, including their eggs/offspring as identified by existing laws in
concurrence with concerned government agencies.

Section 12. Environmental Impact Statement (EIS). - All government agencies as well as private
corporations, firms and entities who intend to undertake activities or projects which will affect the
quality of the environment shall be required to prepare a detailed Environmental Impact Statement
(EIS) prior to undertaking such development activity. The preparation of the EIS shall form an
integral part of the entire planning process pursuant to the provisions of Presidential Decree No.
1586 as well as its implementing rules and regulations.

Section 13. Environmental Compliance Certificate (ECC). - All Environmental Impact Statements

(EIS) shall be submitted to the Department of Environment and Natural Resources (DENR) for
review and evaluation. No person, natural or juridical, shall undertake any development project
without first securing an Environmental Compliance Certificate (ECC) from the Secretary of the
DENR.

Section 14. Monitoring, Control and Surveillance of Philippine Waters. - A monitoring, control

and surveillance system shall be established by the Department in coordination with LGUs,
FARMCs, the private sector and other agencies concerned to ensure that the fisheries and aquatic
resources in Philippine waters are judiciously and wisely utilized and managed on a sustainable
basis and conserved for the benefit and enjoyment exclusively of Filipino citizens.

Section 15. Auxiliary Invoices. - All fish and fishery products must have an auxiliary invoice to be
issued by the LGUs or their duly authorized representatives prior to their transport from their point of
origin to their point of destination in the Philippines and/or export purposes upon payment of a fee to
be determined by the LGUs to defray administrative costs therefor.

ARTICLE I
MUNICIPAL FISHERIES

Section 16. Jurisdiction of Municipal/City Government. - The municipal/city government shall

have jurisdiction over municipal waters as defined in this Code. The municipal/city government, in
consultation with the FARMC shall be responsible for the management, conservation, development,
protection, utilization, and disposition of all fish and fishery/aquatic resources within their respective
municipal waters.
The municipal/city government may, in consultation with the FARMC, enact appropriate ordinances
for this purpose and in accordance with the National Fisheries Policy. The ordinances enacted by
the municipality and component city shall be reviewed pursuant to Republic Act No. 7160 by the
sanggunian of the province which has jurisdiction over the same.

The LGUs shall also enforce all fishery laws, rules and regulations as well as valid fishery
ordinances enacted by the municipal/city council.

The management of contiguous fishery resources such as bays which straddle several
municipalities, cities or provinces, shall be done in an integrated manner, and shall not be based on
political subdivisions of municipal waters in order to facilitate their management as single resource
systems. The LGUs which share or border such resources may group themselves and coordinate
with each other to achieve the objectives of integrated fishery resource management. The Integrated
Fisheries and Aquatic Resources Management Councils (FARMCs) established under Section 76 of
this Code shall serve as the venues for close collaboration among LGUs in the management of
contiguous resources.

Section 17. Grant of Fishing Privileges in Municipal Waters. - The duly registered fisherfolk
organizations/cooperatives shall have preference in the grant of fishery rights by the Municipal/City
Council pursuant to Section 149 of the Local Government Code: Provided, That in areas where there
are special agencies or offices vested with jurisdiction over municipal waters by virtue of special laws
creating these agencies such as, but not limited to, the Laguna Lake Development Authority and the
Palawan Council for Sustainable Development, said offices and agencies shall continue to grant
permits for proper management and implementation of the aforementioned structures.

Section 18. Users of Municipal Waters. - All fishery related activities in municipal waters, as
defined in this Code, shall be utilized by municipal fisherfolk and their cooperatives/organizations
who are listed as such in the registry of municipal fisherfolk.

The municipal or city government, however, may, through its local chief executive and acting
pursuant to an appropriate ordinance, authorize or permit small and medium commercial fishing
vessels to operate within the ten point one (10.1) to fifteen (15) kilometer area from the shoreline in
municipal waters as defined herein, provided, that all the following are met:

(a) no commercial fishing in municipal waters with depth less than seven (7) fathoms as
certified by the appropriate agency;

(b) fishing activities utilizing methods and gears that are determined to be consistent with
national policies set by the Department;

(c) prior consultation, through public hearing, with the M/CFARMC has been conducted; and

(d) the applicant vessel as well as the shipowner, employer, captain and crew have been
certified by the appropriate agency as not having violated this Code, environmental laws and
related laws.

In no case shall the authorization or permit mentioned above be granted for fishing in bays as
determined by the Department to be in an environmentally critical condition and during closed
season as provided for in Section 9 of this Code.
Section 19. Registry of Municipal Fisherfolk. - The LGU shall maintain a registry of municipal
fisherfolk, who are fishing or may desire to fish in municipal waters for the purpose of determining
priorities among them, of limiting entry into the municipal waters, and of monitoring fishing activities
an/or other related purposes: Provided, That the FARMC shall submit to the LGU the list of priorities
for its consideration.

Such list or registry shall be updated annually or as may be necessary, and shall be posted in
barangay halls or other strategic locations where it shall be open to public inspection, for the
purpose of validating the correctness and completeness of the list. The LGU, in consultation with the
FARMCs, shall formulate the necessary mechanisms for inclusion or exclusion procedures that shall
be most beneficial to the resident municipal fisherfolk. The FARMCs may likewise recommend such
mechanisms.

The LGUs shall also maintain a registry of municipal fishing vessels by type of gear and other boat
particulars with the assistance of the FARMC.

Section 20. Fisherfolk Organizations and/or Cooperatives. - Fisherfolk

organizations/cooperatives whose members are listed in the registry of municipal fisherfolk, may be
granted use of demarcated fishery areas to engage in fish capture, mariculture and/or fish farming:
Provided, however, That an organization/cooperative member whose household is already in
possession of a fishery right other than for fish capture cannot enjoy the fishing rights granted to the
organization or cooperative.

Section 21. Priority of Resident Municipal Fisherfolk. - Resident municipal fisherfolk of the

municipality concerned and their organizations/cooperatives shall have priority to exploit municipal
and demarcated fishery areas of the said municipality.

Section 22. Demarcated Fishery Right. - The LGU concerned shall grant demarcated fishery rights
to fishery organizations/cooperatives for mariculture operation in specific areas identified by the
Department.

Section 23. Limited Entry Into Overfished Areas. - Whenever it is determined by the LGUs and
the Department that a municipal water is overfished based on available data or information or in
danger of being overfished, and that there is a need to regenerate the fishery resources in that
water, the LGU shall prohibit or limit fishery activities in the said waters.

Section 24. Support to Municipal Fisherfolk. - The Department and the LGUs shall provide
support to municipal fisherfolk through appropriate technology and research, credit, production and
marketing assistance and other services such as, but not limited to training for
additional/supplementary livelihood.

Section 25. Rights and Privileges of Fishworkers. - The fishworkers shall be entitled to the
privileges accorded to other workers under the Labor Code, Social Security System and other
benefits under other laws or social legislation for workers: Provided, That fishworkers on board any
fishing vessels engaged in fishing operations are hereby covered by the Philippine Labor Code, as
amended.

ARTICLE II
COMMERCIAL FISHERIES
Section 26. Commercial Fishing Vessel License and Other Licenses. - No person shall operate
a commercial fishing vessel, pearl fishing vessel or fishing vessel for scientific, research or
educational purposes, or engage in any fishery activity, or seek employment as a fishworker or pearl
diver without first securing a license from the Department, the period of which shall be prescribed by
the Department: Provided, That no such license shall be required of a fishing vessel engaged in
scientific, research or educational purposes within Philippine waters pursuant to an international
agreement of which the Philippines is a signatory and which agreement defines the status, privileges
and obligations of said vessel and its crew and the non-Filipino officials of the international agency
under which said vessel operates: Provided, further, That members of the crew of a fishing vessel
used for commercial fishing except the duly licensed and/or authorized patrons, marine engineers,
radio operators and cooks shall be considered as fisherfolk: Provided, furthermore, That all
skippers/master fishers shall be required to undertake an orientation training on detection of fish
caught by illegal means before they can be issued their fishworker licenses: Provided, finally, That
the large commercial fishing vessels license herein authorized to be granted shall allow the licensee
to operate only in Philippine waters seven (7) or more fathoms deep, the depth to be certified by the
NAMRIA, and subject to the conditions that may be stated therein and the rules and regulations that
may be promulgated by the Department.

Section 27. Persons Eligible for Commercial Fishing Vessel License. - No commercial fishing
vessel license shall be issued except to citizens of the Philippines, partnerships or to associations,
cooperatives or corporations duly registered in the Philippines at least sixty percent (60%) of the
capital stock of which is owned by Filipino citizens. No person to whom a license has been issued
shall sell, transfer or assign, directly or indirectly, his stock or interest therein to any person not
qualified to hold a license. Any such transfer, sale or assignment shall be null and void and shall not
be registered in the books of the association, cooperative or corporation.

For purposes of commercial fishing, fishing vessels owned by citizens of the Philippines,
partnerships, corporations, cooperatives or associations qualified under this section shall secure
Certificates of Philippine Registry and such other documents as are necessary for fishing operations
from the concerned agencies: Provided, That the commercial fishing vessel license shall be valid for
a period to be determined by the Department.

Section 28. Commercial Fishing Vessel Registration. - The registration, documentation,

inspection and manning of the operation of all types of fishing vessels plying Philippine waters shall
be in accordance with laws, rules and regulations.

Section 29. Registration and Licensing of Fishing Gears Used in Commercial Fishing. - Before
a commercial fishing vessel holding a commercial fishing vessel license may begin fishing
operations in Philippine waters, the fishing gear it will utilize in fishing shall be registered and a
license granted therefor. The Department shall promulgate guidelines to implement this provision
within sixty (60) days from approval of this Code.

Section 30. Renewal of Commercial Boat License. - The commercial fishing boat license shall be
renewed every three (3) years.

The owner/operator of a fishing vessel has a period of sixty (60) days prior to the expiration of the
license within which to renew the same.

Section 31. Report of Transfer of Ownership. - The owner/operator of a registered fishing vessel

shall notify the Department in writing of the transfer of the ownership of the vessel with a copy of
such document within ten (10) days after its transfer to another person.
Section 32. Fishing by Philippine Commercial Fishing Fleet in International Waters. - Fishing
vessels of Philippine registry may operate in international waters or waters of other countries which
allow such fishing operations: Provided, That they comply with the safety, manning and other
requirements of the Philippine Coast Guard, Maritime Industry Authority and other agencies
concerned: Provided, however, That they secure an international fishing permit and certificate of
clearance from the Department: Provided, further, That the fish caught by such vessels shall be
considered as caught in Philippine waters and therefore not subject to all import duties and taxes
only when the same is landed in duly designated fish landings and fish ports in the Philippines:
Provided, furthermore, That landing ports established by canneries, seafood processors and all fish
landing sites established prior to the effectivity of this Code shall be considered authorized landing
sites: Provided, finally, That fishworkers on board Philippine registered fishing vessels conducting
fishing activities beyond the Philippine Exclusive Economic Zone are not considered as overseas
Filipino workers.

Section 33. Importation of Fishing Vessels or Construction of New Fishing Boats. - Prior to the
importation of fishing vessels and the construction of new fishing vessels, the approval/clearance of
the Department must first be obtained.

Section 34. Incentives for Municipal and Small-Scale Commercial Fisherfolk. - Municipal and
small-scale commercial fisherfolk shall be granted incentives which shall include, but are not limited
to, the following:

(a) at least ten percent (10%) of the credit and the guarantee funds of government financing
institutions shall be made available for post-harvest and marketing projects for the purpose
of enhancing our fisherfolk competitiveness by reducing post-harvest losses. Qualified
projects shall include, but shall not be limited to, ice plants, cold storage, canning,
warehouse, transport and other related infrastructure projects and facilities; and

(b) the Department shall undertake the following programs:

1. a capability-building program for targeted parties shall be developed by the

Department to promote greater bankability and credit worthiness of municipal and
small-scale commercial fishers. Such program shall include organizing activities,
technology transfer, and skills training related to commercial fishing as well as credit
management. Groups and cooperatives organized under the program shall have
priority access over credit and guarantee funds established under this Code; and

2. an information campaign shall be conducted to promote the capability building and

credit programs. The campaign shall ensure greater information dissemination and
accessibility to targeted fisherfolk.

Section 35. Incentives for Commercial Fishers to Fish Farther into the Exclusive Economic
Zone. - In order to encourage fishing vessel operators to fish farther in the EEZ and beyond, new
incentives for improvement of fishing vessels and acquisition of fishing equipment shall be granted in
addition to incentives already available from the Board of Investments (BOI). Such incentives shall
be granted subject to exhaustive evaluation of resource and exploitation conditions in the specified
areas of fishing operations. The incentive shall include, but not be limited to:

(a) long term loans supported by guarantee facilities to finance the building and acquisition
and/or improvement of fishing vessels and equipment;
 (b) commercial fishing vessel operators of Philippine registry shall enjoy a limited period of
tax and duty exemptions on the importation of fishing vessels not more than five (5) years
old, equipment and paraphernalia, the period of exemption and guidelines shall be fixed by
the Department within ninety (90) days from the effectivity of this Code;

(c) commercial fishing operator of Philippine registry engaged in fisheries in the high seas
shall be entitled to duty and tax rebates on fuel consumption for commercial fisheries
operations. Guidelines shall be promulgated within ninety (90) days from the effectivity of this
Code by the Department; and

(d) all applicable incentives available under the Omnibus Investment Code of 1987:
Provided, That the fishing operation project is qualified for registration and is duly registered
with the BOI.

Section 36. Complement of Fishing Vessels. - Every commercial fishing vessel of Philippine

registry when actually operated, shall be manned in accordance with the requirements of the
Philippine Merchant Marine rules and regulations.

Section 37. Medical Supplies and Life-Saving Devices. - All fishing vessels shall be provided with
adequate medical supplies and life-saving devices to be determined by the Occupational Safety and
Health Center: Provided, That a fishing vessel of twenty (20) GT or more shall have as a member of
its crew a person qualified as a first aider duly certified by the Philippine National Red Cross.

Section 38. Reportorial Requirements. - Each commercial fishing vessel shall keep a daily record
of fish catch and spoilage, landing points, and quantity and value of fish caught, and off-loaded for
transshipment, sale and/or other disposal. Detailed information shall be duly certified by the vessel's
captain and transmitted monthly to the officer or representative of the Department, at the nearest
designated landing point.

Section 39. Report of Meteorological and Other Data. - All vessels and crafts passing
navigational lanes or engaged in fisheries activity shall be required to contribute to meteorological
and other data, and shall assist the Department in documentation or reporting of information vital to
navigation and the fishing industry.

Section 40. Color Code and Radio Frequency. - For administrative efficiency and enforcement of
regulations, registered fishing vessels shall bear a color code as may be determined by the
Department and may be assigned a radio frequency specific and distinct to its area of operation.

Section 41. Passage. - Commercial and other passage not in the regular conduct of fisheries
activity shall be made at designated navigational lanes.

Section 42. Transshipment. - Foreign fishing vessels wishing to avail of land, air and sea facilities
available in the Philippines to transport fishery products which are caught outside Philippine
territorial waters to its final destination shall call only at duly designated government-owned or
-controlled regional fishport complexes after securing clearance from the Department.

Section 43. Operation of Radio Communication Facilities on Board Fishing Vessels. - The

Department shall promulgate guidelines in the operation of radio communication facilities on board
fishing vessels and the assignment of radio frequencies specific and distinct to area of operation in
coordination with the National Telecommunications Commission.
Section 44. Use of Superlight. - The number and wattage of superlights used in commercial fishing
vessels shall be regulated by the Department: Provided, That the use of superlights is banned within
municipal waters and bays.

ARTICLE III
AQUACULTURE

Section 45. Disposition of Public Lands for Fishery Purposes. - Public lands such as tidal
swamps, mangroves, marshes, foreshore lands and ponds suitable for fishery operations shall not
be disposed or alienated. Upon effectivity of this Code, FLA may be issued for public lands that may
be declared available for fishpond development primarily to qualified fisherfolk
cooperatives/associations: Provided, however, That upon the expiration of existing FLAs the current
lessees shall be given priority and be entitled to an extension of twenty-five (25) years in the
utilization of their respective leased areas. Thereafter, such FLAs shall be granted to any Filipino
citizen with preference, primarily to qualified fisherfolk cooperatives/associations as well as small
and medium enterprises as defined under Republic Act No. 8289: Provided, further, That the
Department shall declare as reservation, portions of available public lands certified as suitable for
fishpond purposes for fish sanctuary, conservation, and ecological purposes: Provided, finally, That
two (2) years after the approval of this Act, no fish pens or fish cages or fish traps shall be allowed in
lakes.

Section 46. Lease of Fishponds. - Fishpond leased to qualified persons and fisherfolk

organizations/cooperatives shall be subject to the following conditions:

(a) Areas leased for fishpond purposes shall be no more than 50 hectares for individuals and
250 hectares for corporations or fisherfolk organizations;

(b) The lease shall be for a period of twenty-five (25) years and renewable for another
twenty-five (25) years: Provided, That in case of the death of the lessee, his spouse and/or
children, as his heirs, shall have preemptive rights to the unexpired term of his Fishpond
Lease Agreement subject to the same terms and conditions provided herein provided that
the said heirs are qualified;

(c) Lease rates for fishpond areas shall be determined by the Department: Provided, That all
fees collected shall be remitted to the National Fisheries Research and Development
Institute and other qualified research institutions to be used for aquaculture research
development;

(d) The area leased shall be developed and producing on a commercial scale within three (3)
years from the approval of the lease contract: Provided, however, That all areas not fully
producing within five (5) years from the date of approval of the lease contract shall
automatically revert to the public domain for reforestation;

(e) The fishpond shall not be subleased, in whole or in part, and failure to comply with this
provision shall mean cancellation of FLA;

(f) The transfer or assignment of rights to FLA shall be allowed only upon prior written
approval of the Department;
 (g) The lessee shall undertake reforestation for river banks, bays, streams, and seashore
fronting the dike of his fishpond subject to the rules and regulations to be promulgated
thereon; and

(h) The lessee shall provide facilities that will minimize environmental pollution, i.e., settling
ponds, reservoirs, etc: Provided, That failure to comply with this provision shall mean
cancellation of FLA.

Section 47. Code of Practice for Aquaculture. - The Department shall establish a code of practice
for aquaculture that will outline general principles and guidelines for environmentally-sound design
and operation to promote the sustainable development of the industry. Such Code shall be
developed through a consultative process with the DENR, the fishworkers, FLA holders, fishpond
owners, fisherfolk cooperatives, small-scale operators, research institutions and the academe, and
other potential stakeholders. The Department may consult with specialized international
organizations in the formulation of the code of practice.

Section 48. Incentives and Disincentives for Sustainable Aquaculture Practices. - The

Department shall formulate incentives and disincentives, such as, but not limited to, effluent charges,
user fees and negotiable permits, to encourage compliance with the environmental standards and to
promote sustainable management practices.

Section 49. Reversion of All Abandoned, Undeveloped or Underutilized Fishponds. - The

DENR, in coordination with the Department, LGUs, other concerned agencies and FARMCs shall
determine which abandoned, underdeveloped or underutilized fishponds covered by FLAs can be
reverted to their original mangrove state and after having made such determination shall take all
steps necessary to restore such areas in their original mangrove state.

Section 50. Absentee Fishpond Lease Agreement Holders. - Holders of fishpond lease

agreements who have acquired citizenship in another country during the existence of the FLA shall
have their lease automatically cancelled and the improvements thereon to be forfeited in favor of the
government and disposed of in accordance with rules and regulations promulgated thereon.

Section 51. License to Operate Fish Pens, Fish Cages, Fish Traps and Other Structures for
the Culture of Fish and Other Fishery Products. - Fish pens, fish cages, fish traps and other
structures for the culture of fish and other fishery products shall be constructed and shall operate
only within established zones duly designated by LGUs in consultation with the FARMCs concerned
consistent with national fisheries policies after the corresponding licenses thereof have been
secured. The area to be utilized for this purpose for individual person shall be determined by the
LGUs in consultation with the concerned FARMC: Provided, however, That not over ten percent
(10%) of the suitable water surface area of all lakes and rivers shall be allotted for aquaculture
purposes like fish pens, fish cages and fish traps; and the stocking density and feeding requirement
which shall be controlled and determined by its carrying capacity: Provided, further, That fish pens
and fish cages located outside municipal waters shall be constructed and operated only within fish
pen and fish cage belts designated by the Department and after corresponding licenses therefor
have been secured and the fees thereof paid.

Section 52. Pearl Farm Leases. - The foregoing provisions notwithstanding, existing pearl farm
leases shall be respected and allowed to operate under the terms thereof. New leases may be
granted to qualified persons who possess the necessary capital and technology, by the LGUs having
jurisdiction over the area.
Section 53. Grant of Privileges for Operations of Fish Pens, Cages, Corrals/Traps and Similar
Structures. - No new concessions, licenses, permits, leases and similar privileges for the
establishment or operation of fish pens, fish cages, fish corrals/traps and other similar structures in
municipal areas shall be granted except to municipal fisherfolk and their organizations.

Section 54. Insurance for Fishponds, Fish Cages and Fish Pens. - Inland fishponds, fish cages
and fish pens shall be covered under the insurance program of the Philippine Crop Insurance
Corporation for losses caused by force majeure and fortuitous events.

Section 55. Non-Obstruction to Navigation. - Nothing in the foregoing sections shall be construed

as permitting the lessee, licensee, or permittee to undertake any construction which will obstruct the
free navigation in any stream, river, lakes, or bays flowing through or adjoining the fish pens, fish
cages, fish traps and fishponds, or impede the flow of the tide to and from the area. Any construction
made in violation hereof shall be removed upon the order of the Department in coordination with the
other government agencies concerned at the expense of the lessee, licensee, or occupants thereof,
whenever applicable. The Department shall within thirty (30) days after the effectivity of this Code
formulate and implement rules and regulations for the immediate dismantling of existing obstruction
to navigation.

Section 56. Non-Obstruction to Defined Migration Paths. - Nothing in the foregoing sections shall
be construed as permitting the lessee, permittee, or licensee to undertake any construction which
will obstruct any defined migration path of migratory fish species such as river mouths and estuaries
with a distance determined by the concerned LGUs in consultation with and upon the
recommendation of the FARMCs.

Section 57. Registration of Fish Hatcheries and Private Fishponds, etc. - All fish hatcheries, fish
breeding facilities and private fishponds must be registered with the LGUs which shall prescribe
minimum standards for such facilities in consultation with the Department: Provided, That the
Department shall conduct a yearly inventory of all fishponds, fish pens and fish cages whether in
public or private lands: Provided, further, That all fishpond, fish pens and fish cage operators shall
annually report to the Department the type of species and volume of production in areas devoted to
aquaculture.

ARTICLE IV
POST-HARVEST FACILITIES, ACTIVITIES AND TRADES

Section 58. Comprehensive Post-harvest and Ancillary Industries Plan. - The Department shall
conduct a regular study of fisheries post-harvest operations and ancillary industries, in the
formulation of a comprehensive plan for post-harvest and ancillary industries. It shall take into
account among others, the following:

(a) detailed and clear guidelines on the distribution, construction, maintenance and use of
post-harvest infrastructure facilities;

(b) extension of credit and incentives for post-harvest operations;

(c) promotion and strengthening of semi-processing, processing and handling;

(d) development of domestic fishmeal industry;

(e) development of fisheries ship-building and repair as a viable industry;

 (f) development and strengthening of marketing facilities and activities, including the pricing
system, with emphasis on collective marketing and the elimination of middlemen;

(g) increased participation of cooperatives and non-governmental organizations in post-

harvest operations and ancillary industries; and

(h) integration of fisheries post-harvest operations into the national fisheries plan.

Section 59. Establishment of Post-Harvest Facilities for Fishing Communities. - The LGUs

shall coordinate with the private sector and other concerned agencies and FARMCs in the
establishment of post-harvest facilities for fishing communities such as, but not limited to, municipal
fish landing sites, fish ports, ice plants and cold storage and other fish processing establishments to
serve primarily the needs of municipal fisherfolk: Provided, That such post-harvest facilities shall be
consistent with the Comprehensive Post-harvest and Ancillary Industries Plan.

Section 60. Registration and Licensing of all Post-Harvest Facilities. - All post-harvest facilities
such as fish processing plants, ice plants, and cold storages, fish ports/landings and other fishery
business establishments must register with and be licensed by the LGUs which shall prescribe
minimum standards for such facilities in consultation with the Department.

Section 61. Importation and Exportation of Fishery Products. -

(a) Export of fishery products shall be regulated whenever such exportation affects domestic
food security and production: Provided, That exportation of live fish shall be prohibited
except those which are hatched or propagated in accredited hatcheries and ponds;

(b) To protect and maintain the local biodiversity or ensure the sufficiency of domestic
supply, spawners, breeders, eggs and fry of bangus, prawn and other endemic species, as
may be determined by the Department, shall not be exported or caused to be exported by
any person;

(c) Fishery products may be imported only when the importation has been certified as
necessary by the Department in consultation with the FARMC, and all the requirements of
this Code, as well as all existing rules and regulations have been complied with: Provided,
That fish imports for canning/processing purposes only may be allowed without the
necessary certification, but within the provisions of Section 61(d) of this Code; and

(d) No person, shall import and/or export fishery products of whatever size, stage or form for
any purpose without securing a permit from the Department.

The Department in consultation with the FARMC shall promulgate rules and regulations on
importation and exportation of fish and fishery/aquatic resources with the Government's
export/import simplification procedures.

Section 62. Instruments of Weights and Measures, and Quality Grades/Standards. - Standards

for weights, volume and other measurements for all fishery transactions shall be set by the
Department.

All fish and fishery products for export, import and domestic consumption shall meet the quality
grades/standards as determined by the Department.
The LGU concerned shall, by appropriate ordinance, penalize fraudulent practices and unlawful
possession or use of instruments of weights and measures.

CHAPTER III
Reconstitution of The Bureau of Fisheries and Aquatic Resources and Creation of Fisheries
and Aquatic Resources Management Councils

ARTICLE I
RECONSTITUTION OF THE BUREAU OF FISHERIES AND AQUATIC RESOURCES

Section 63. Creation of the Position of Undersecretary for Fisheries and Aquatic Resources. -
There is hereby created in the Department of Agriculture the position of Undersecretary for Fisheries
and Aquatic Resources, solely for the purpose of attending to the needs of the fishing industry, to be
appointed by the President. Such Undersecretary shall have the following functions:

(a) set policies and formulate standards for the effective, efficient and economical operations
of the fishing industry in accordance with the programs of the government;

(b) exercise overall supervision over all functions and activities of all offices and
instrumentalities and other offices related to fisheries including its officers;

(c) establish, with the assistance of the director, such regional, provincial and other fishery
officers as may be necessary and appropriate and organize the internal structure of BFAR in
such manner as is necessary for the efficient and effective attainment of its objectives and
purposes; and

(d) perform such other functions as may be necessary or proper to attain the objectives of
this Code.

Section 64. Reconstitution of the BFAR. - The Bureau of Fisheries and Aquatic Resources
(BFAR) is hereby reconstituted as a line bureau under the Department of Agriculture.

Section 65. Functions of the Bureau of Fisheries and Aquatic Resources. - As a line bureau,
the BFAR shall have the following functions:

(a) prepare and implement a Comprehensive National Fisheries Industry Development Plan;

(b) issue licenses for the operation of commercial fishing vessels;

(c) issue identification cards free of charge to fishworkers engaged in commercial fishing;

(d) monitor and review joint fishing agreements between Filipino citizens and foreigners who
conduct fishing activities in international waters, and ensure that such agreements are not
contrary to Philippine commitment under international treaties and convention on fishing in
the high seas;

(e) formulate and implement a Comprehensive Fishery Research and Development

Program, such as, but not limited to, sea farming, sea ranching, tropical/ornamental fish and
seaweed culture, aimed at increasing resource productivity, improving resource use
efficiency, and ensuring the long-term sustainability of the country's fishery and aquatic
resources;
 (f) establish and maintain a Comprehensive Fishery Information System;

(g) provide extensive development support services in all aspects of fisheries production,
processing and marketing;

(h) provide advisory services and technical assistance on the improvement of quality of fish
from the time it is caught (i.e. on board fishing vessel, at landing areas, fish markets, to the
processing plants and to the distribution and marketing chain);

(i) coordinate efforts relating to fishery production undertaken by the primary fishery
producers, LGUs, FARMCs, fishery and organizations/cooperatives;

(j) advise and coordinate with LGUs on the maintenance of proper sanitation and hygienic
practices in fish markets and fish landing areas;

(k) establish a corps of specialists in collaboration with the Department of National Defense,
Department of the Interior and Local Government, Department of Foreign Affairs for the
efficient monitoring, control and surveillance of fishing activities within Philippine territorial
waters and provide the necessary facilities, equipment and training therefor;

(l) implement an inspection system for import and export of fishery/aquatic products and fish
processing establishments, consistent with international standards to ensure product quality
and safety;

(m) coordinate with LGUs and other concerned agencies for the establishment of productivity
enhancing and market development programs in fishing communities to enable women to
engage in other fisheries/economic activities and contribute significantly to development
efforts;

(n) enforce all laws, formulate and enforce all rules and regulations governing the
conservation and management of fishery resources, except in municipal waters, and to settle
conflicts of resource use and allocation in consultation with the NFARMC, LGUs and local
FARMCs;

(o) develop value-added fishery-products for domestic consumption and export; lawphi1™

(p) recommend measures for the protection/enhancement of the fishery industries;

(q) assist the LGUs in developing their technical capability in the development, management,
regulation, conservation, and protection of the fishery resources;

(r) formulate rules and regulations for the conservation and management of straddling fish
stocks and highly migratory fish stocks; and

(s) perform such other related functions which shall promote the development, conservation,
management, protection and utilization of fisheries and aquatic resources.

Section 66. Composition of BFAR. - As a line bureau, the BFAR shall be headed by a Director and
assisted by two (2) Assistant Directors who shall supervise the administrative and technical services
of the bureau respectively. It shall establish regional, provincial and municipal offices as may be
appropriate and necessary to carry out effectively and efficiently the provisions of this Code.
Section 67. Fisheries Inspection and Quarantine Service. - For purposes of monitoring and
regulating the importation and exportation of fish and fishery/aquatic resources, the Fisheries
Inspection and Quarantine Service in the BFAR is hereby strengthened and shall have the following
functions:

(a) conduct fisheries quarantine and quality inspection of all fish and fishery/aquatic products
coming into and going out of the country by air or water transport, to detect the presence of
fish pest and diseases and if found to harbor fish pests or diseases shall be confiscated and
disposed of in accordance with environmental standards and practices;

(b) implement international agreements/commitments on bio-safety and bio-diversity as well

as prevent the movement or trade of endemic fishery and aquatic resources to ensure that
the same are not taken out of the country;

(c) quarantine such aquatic animals and other fishery products determined or suspected to
be with fishery pests and diseases and prevent the movement or trade from and/or into the
country of these products so prohibited or regulated under existing laws, rules and
regulations as well as international agreements of which the Philippines is a State Party;

(d) examine all fish and fishery products coming into or going out of the country which may
be a source or medium of fish pests or diseases and/or regulated by existing fishery
regulations and ensure that the quality of fish import and export meet international
standards; and

(e) document and authorize the movement or trade of fish and fishery products when found
free of fish pests or diseases and collect necessary fees prescribed by law and regulations.

ARTICLE II
THE FISHERIES AND AQUATIC RESOURCES MANAGEMENT COUNCILS (FARMCs)

Section 68. Development of Fisheries and Aquatic Resources in Municipal Waters and Bays. -
Fisherfolk and their organizations residing within the geographical jurisdiction of the barangays,
municipalities or cities with the concerned LGUs shall develop the fishery/aquatic resources in
municipal waters and bays.

Section 69. Creation of Fisheries and Aquatic Resources Management Councils (FARMCs). -

FARMCs shall be established in the national level and in all municipalities/cities abutting municipal
waters as defined by this Code. The FARMCs shall be formed by fisherfolk
organizations/cooperatives and NGOs in the locality and be assisted by the LGUs and other
government entities. Before organizing FARMCs, the LGUs, NGOs, fisherfolk, and other concerned
POs shall undergo consultation and orientation on the formation of FARMCs.

Section 70. Creation and Composition of the National Fisheries and Aquatic Resources
Management Council (NFARMC). - There is hereby created a National Fisheries and Aquatic
Resources Management Council hereinafter referred to as NFARMC as an
advisory/recommendatory body to the Department. The NFARMC shall be composed of fifteen (15)
members consisting of:

(a) the Undersecretary of Agriculture, as Chairman;

(b) the Undersecretary of the Interior and Local Government;

 (c) five (5) members representing the fisherfolk and fishworkers;

(d) five (5) members representing commercial fishing and aquaculture operators and the
processing sectors;

(e) two (2) members from the academe; and

(f) one (1) representative of NGOs involved in fisheries.

The members of the NFARMC, except for the Undersecretary of Agriculture and the Undersecretary
of the Interior and Local Government, shall be appointed by the President upon the nomination of
their respective organizations.

Section 71. Terms of Office. - The members of NFARMC, except the Undersecretary of Agriculture
and the Undersecretary of the Interior and Local Government, shall serve for a term of three (3)
years without reappointment.

Section 72. Functions of the NFARMC. - The NFARMC shall have the following functions:

(a) assist in the formulation of national policies for the protection, sustainable development
and management of fishery and aquatic resources for the approval of the Secretary;

(b) assist the Department in the preparation of the National Fisheries and Industry
Development Plan; and

(c) perform such other functions as may be provided by law.

Section 73. The Municipal/City Fisheries and Aquatic Resources Management Councils

(M/CFARMCs). - The M/CFARMCs shall be created in each of the municipalities and cities abutting
municipal waters. However, the LGU may create the Barangay Fisheries and Aquatic Resources
Management Councils (BFARMCs) and the Lakewide Fisheries and Aquatic Resources
Management Councils (LFARMCs) whenever necessary. Such BFARMCs and LFARMCs shall
serve in an advisory capacity to the LGUs.

Section 74. Functions of the M/CFARMCs. - The M/CFARMCs shall exercise the following
functions:

(a) assist in the preparation of the Municipal Fishery Development Plan and submit such plan
to the Municipal Development Council;

(b) recommend the enactment of municipal fishery ordinances to the sangguniang

bayan/sangguniang panlungsod through its Committee on Fisheries;

(c) assist in the enforcement of fishery laws, rules and regulations in municipal waters;

(d) advise the sangguniang bayan/panlungsod on fishery matters through its Committee on
Fisheries, if such has been organized; and

(e) perform such other functions which may be assigned by the sangguniang
bayan/panlungsod.
Section 75. Composition of the M/CFARMC . - The regular member of the M/CFARMCs shall be
composed of:

(a) Municipal/City Planning Development Officer;

(b) Chairperson, Agriculture/Fishery Committee of the Sangguniang Bayan/Panlungsod;

(c) representative of the Municipal/City Development Council;

(d) representative from the accredited non-government organization;

(e) representative from the private sector;

(f) representative from the Department of Agriculture; and

(g) at least eleven (11) fisherfolk representatives (seven (7) municipal fisherfolk, one (1)
fishworker and three (3) commercial fishers) in each municipality/city which include
representative from youth and women sector.

The Council shall adopt rules and regulations necessary to govern its proceedings and election.

Section 76. The Integrated Fisheries and Aquatic Resources Management Councils

(IFARMCs). - The IFARMCs shall be created in bays, gulfs, lakes and rivers and dams bounded by
two (2) or more municipalities/cities.

Section 77. Functions of the IFARMCs. - The IFARMC shall have the following functions:

(a) assist in the preparation of the Integrated Fishery Development Plan and submit such
plan to the concerned Municipal Development Councils;

(b) recommend the enactment of integrated fishery ordinances to the concerned

sangguniang bayan/panlungsod through its Committee on Fisheries, if such has been
organized;

(c) assist in the enforcement of fishery laws, rules and regulations in concerned municipal
waters;

(d) advice the concerned sangguniang bayan/panlungsod on fishery matters through its
Committee on Fisheries, if such has been organized; and

(e) perform such other functions which may be assigned by the concerned sangguniang
bayan/panlungsod.

Section 78. Composition of the IFARMCs. - The regular members of the IFARMCs shall be
composed of the following:

(a) the chairperson of the Committee on Agriculture/Fisheries of the concerned sangguniang

bayan/panlungsod;

(b) the Municipal/City Fisheries Officers of the concerned municipalities/cities;

 (c) the Municipal/City Development Officers of the concerned municipalities/cities;

(d) one (1) representative from NGO;

(e) one (1) representative from private sector; and

(f) at least nine (9) representatives from the fisherfolk sector which include representatives
from the youth and women sector.

The Council shall adopt rules and regulations necessary to govern its proceedings and election.

Section 79. Source of Funds of the FARMCs. - A separate fund for the NFARMC, IFARMCs and
M/CFARMCs shall be established and administered by the Department from the regular annual
budgetary appropriations.

CHAPTER IV
Fishery Reserves, Refuge and Sanctuaries

Section 80. Fishing Areas Reserves for Exclusive Use of Government. - The Department may
designate area or areas in Philippine waters beyond fifteen (15) kilometers from shoreline as fishery
reservation for the exclusive use of the government or any of its political subdivisions, agencies or
instrumentalities, for propagation, educational, research and scientific purposes: Provided, That in
municipalities or cities, the concerned LGUs in consultation with the FARMCs may recommend to
the Department that portion of the municipal waters be declared as fishery reserves for special or
limited use, for educational, research, and/or special management purposes. The FARMCs may
recommend to the Department portions of the municipal waters which can be declared as fisheries
reserves for special or limited use for educational, research and special management purposes.

Section 81. Fish Refuge and Sanctuaries. - The Department may establish fish refuge and
sanctuaries to be administered in the manner to be prescribed by the BFAR at least twenty-five
percent (25%) but not more than forty percent (40%) of bays, foreshore lands, continental shelf or
any fishing ground shall be set aside for the cultivation of mangroves to strengthen the habitat and
the spawning grounds of fish. Within these areas no commercial fishing shall be allowed. All marine
fishery reserves, fish sanctuaries and mangrove swamp reservations already declared or proclaimed
by the President or legislated by the Congress of the Philippines shall be continuously administered
and supervised by the concerned agency: Provided, however, That in municipal waters, the
concerned LGU in consultation with the FARMCs may establish fishery refuge and sanctuaries. The
FARMCs may also recommend fishery refuge and sanctuaries: Provided, further, That at least
fifteen percent (15%) where applicable of the total coastal areas in each municipality shall be
identified, based on the best available scientific data and in consultation with the Department, and
automatically designated as fish sanctuaries by the LGUs in consultation with the concerned
FARMCs.

CHAPTER V
Fisheries Research and Development

Section 82. Creation of a National Fisheries Research and Development Institute (NFRDI). - In

recognition of the important role of fisheries research in the development, management,
conservation and protection of the country's fisheries and aquatic resources, there is hereby created
a National Fisheries Research and Development Institute (NFRDI).
The Institute shall form part of the National Research and Development Network of the Department
of Science and Technology (DOST).

The Institute, which shall be attached to the Department shall serve as the primary research arm of
the BFAR. The overall governance of the Institute shall be vested in the Governing Board which
shall formulate policy guidelines for its operation. The plans, programs and operational budget shall
be passed by the Board. The Board may create such committees as it may deem necessary for the
proper and effective performance of its functions. The composition of the Governing Board shall be
as follows:

(a) Undersecretary for Fisheries - Chairman

(b) BFAR Director - Vice Chairman

(c) NFRDI Executive Director - Member

(d) PCAMRD Executive Director - Member

(e) Representative from the academe - Member

(f) four (4) representatives from the private sector who shall come from the following
subsectors: - Members

 Municipal Fisherfolk
 Commercial Fishing Operator
 Aquaculture Operator
 Post-Harvest/Processor

The NFRDI shall have a separate budget specific to its manpower requirements and operations to
ensure the independent and objective implementation of its research activities.

Section 83. Qualification Standard. - The Institute shall be headed by an Executive Director to be

appointed by the President of the Philippines upon the recommendation of the governing board. The
Executive Director shall hold a Doctorate degree in fisheries and/or other related disciplines. The
organizational structure and staffing pattern shall be approved by the Department: Provided,
however, That the staffing pattern and remunerations for scientific and technical staff shall be based
on the qualification standards for science and technology personnel.

Section 84. Research and Development Objectives. - Researches to be done by the NFRDI are
expected to result in the following:

(a) To raise the income of the fisherfolk and to elevate the Philippines among the top five (5)
in the world ranking in the fish productions;

(b) to make the country's fishing industry in the high seas competitive;

(c) to conduct social research on fisherfolk families for a better understanding of their
conditions and needs; and
 (d) to coordinate with the fisheries schools, LGUs and private sectors regarding the
maximum utilization of available technology, including the transfer of such technology to the
industry particularly the fisherfolk.

Section 85. Functions of the NFRDI . - As a national institute, the NFRDI shall have the following
functions:

(a) establish a national infrastructure unit complete with technologically-advanced features

and modern scientific equipment, which shall facilitate, monitor, and implement various
research needs and activities of the fisheries sector;

(b) provide a venue for intensive training and development of human resources in the field of
fisheries, a repository of all fisheries researches and scientific information;

(c) provide intensive training and development of human resources in the field of fisheries for
the maximum utilization of available technology;

(d) hasten the realization of the economic potential of the fisheries sector by maximizing
developmental research efforts in accordance with the requirements of the national fisheries
conservations and development programs, also possibly through collaborative effort with
international institutions; and

(e) formally establish, strengthen and expand the network of fisheries-researching

communities through effective communication linkages nationwide.

CHAPTER VI
Prohibitions and Penalties

Section 86. Unauthorized Fishing or Engaging in Other Unauthorized Fisheries Activities. - No

person shall exploit, occupy, produce, breed, culture, capture or gather fish, fry or fingerlings of any
fishery species or fishery products, or engage in any fishery activity in Philippine waters without a
license, lease or permit.

Discovery of any person in an area where he has no permit or registration papers for a fishing vessel
shall constitute a prima facie presumption that the person and/or vessel is engaged in unauthorized
fishing: Provided, That fishing for daily food sustenance or for leisure which is not for commercial,
occupation or livelihood purposes may be allowed.

It shall be unlawful for any commercial fishing vessel to fish in bays and in such other fishery
management areas which may hereinafter be declared as over-exploited.

Any commercial fishing boat captain or the three (3) highest officers of the boat who commit any of
the above prohibited acts upon conviction shall be punished by a fine equivalent to the value of
catch or Ten thousand pesos (P10,000.00) whichever is higher, and imprisonment of six (6) months,
confiscation of catch and fishing gears, and automatic revocation of license.

It shall be unlawful for any person not listed in the registry of municipal fisherfolk to engage in any
commercial fishing activity in municipal waters. Any municipal fisherfolk who commits such violation
shall be punished by confiscation of catch and a fine of Five hundred pesos (500.00).
Section 87. Poaching in Philippine Waters. - It shall be unlawful for any foreign person,
corporation or entity to fish or operate any fishing vessel in Philippine waters.

The entry of any foreign fishing vessel in Philippine waters shall constitute a prima facie evidence
that the vessel is engaged in fishing in Philippine waters.

Violation of the above shall be punished by a fine of One hundred thousand U.S. Dollars
(US$100,000.00), in addition to the confiscation of its catch, fishing equipment and fishing vessel:
Provided, That the Department is empowered to impose an administrative fine of not less than Fifty
thousand U.S. Dollars (US$50,000.00) but not more than Two hundred thousand U.S. Dollars
(US$200,000.00) or its equivalent in the Philippine Currency.

Section 88. Fishing Through Explosives, Noxious or Poisonous Substance, and/or

Electricity. -

(1) It shall be unlawful for any person to catch, take or gather or cause to be caught, taken or
gathered, fish or any fishery species in Philippine waters with the use of electricity,
explosives, noxious or poisonous substance such as sodium cyanide in the Philippine fishery
areas, which will kill, stupefy, disable or render unconscious fish or fishery species: Provided,
That the Department, subject to such safeguards and conditions deemed necessary and
endorsement from the concerned LGUs, may allow, for research, educational or scientific
purposes only, the use of electricity, poisonous or noxious substances to catch, take or
gather fish or fishery species: Provided, further, That the use of poisonous or noxious
substances to eradicate predators in fishponds in accordance with accepted scientific
practices and without causing adverse environmental impact in neighboring waters and
grounds shall not be construed as illegal fishing.

It will likewise be unlawful for any person, corporation or entity to possess, deal in, sell or in
any manner dispose of, any fish or fishery species which have been illegally caught, taken or
gathered.

The discovery of dynamite, other explosives and chemical compounds which contain
combustible elements, or noxious or poisonous substances, or equipment or device for
electro-fishing in any fishing vessel or in the possession of any fisherfolk, operator, fishing
boat official or fishworker shall constitute prima facie evidence, that the same was used for
fishing in violation of this Code. The discovery in any fishing vessel of fish caught or killed
with the use of explosive, noxious or poisonous substances or by electricity shall constitute
prima facie evidence that the fisherfolk, operator, boat official or fishworker is fishing with the
use thereof.

(2) Mere possession of explosive, noxious or poisonous substances or electrofishing devices

for illegal fishing shall be punishable by imprisonment ranging from six (6) months to two (2)
years.

(3) Actual use of explosives, noxious or poisonous substances or electrofishing devices for
illegal fishing shall be punishable by imprisonment ranging from five (5) years to ten (10)
years without prejudice to the filing of separate criminal cases when the use of the same
result to physical injury or loss of human life.

(4) Dealing in, selling, or in any manner disposing of, for profit, illegally caught/gathered
fisheries species shall be punished by imprisonment ranging from six (6) months to two (2)
years.
 (5) In all cases enumerated above, the explosives, noxious or poisonous substances and/or
electrical devices, as well as the fishing vessels, fishing equipment and catch shall be
forfeited.

Section 89. Use of Fine Mesh Net. - It shall be unlawful to engage in fishing using nets with mesh
smaller than that which may be fixed by the Department: Provided, That the prohibition on the use of
fine mesh net shall not apply to the gathering of fry, glass eels, elvers, tabios, and alamang and such
species which by their nature are small but already mature to be identified in the implementing rules
and regulations by the Department.

Violation of the above shall subject the offender to a fine from Two thousand pesos (P2,000.00) to
Twenty thousand pesos (P20,000.00) or imprisonment from six (6) months to two (2) years or both
such fine and imprisonment at the discretion of the court: Provided, That if the offense is committed
by a commercial fishing vessel, the boat captain and the master fisherman shall also be subject to
the penalties provided herein: Provided, further, That the owner/operator of the commercial fishing
vessel who violates this provision shall be subjected to the same penalties provided herein:
Provided, finally, That the Department is hereby empowered to impose upon the offender an
administrative fine and/or cancel his permit or license or both.

Section 90. Use of Active Gear in the Municipal Waters and Bays and Other Fishery
Management Areas. - It shall be unlawful to engage in fishing in municipal waters and in all bays as
well as other fishery management areas using active fishing gears as defined in this Code.

Violators of the above prohibitions shall suffer the following penalties:

(1) The boat captain and master fisherman of the vessels who participated in the violation
shall suffer the penalty of imprisonment from two (2) years to six (6) years;

(2) The owner/operator of the vessel shall be fined from Two thousand pesos (P2,000.00) to
Twenty thousand pesos (20,000.00) upon the discretion of the court.

If the owner/operator is a corporation, the penalty shall be imposed on the chief executive
officer of the Corporation.

If the owner/operator is a partnership the penalty shall be imposed on the managing partner.

(3) The catch shall be confiscated and forfeited.

Section 91. Ban on Coral Exploitation and Exportation. - It shall be unlawful for any person or
corporation to gather, possess, sell or export ordinary precious and semi-precious corals, whether
raw or in processed form, except for scientific or research purposes.

Violations of this provision shall be punished by imprisonment from six (6) months to two (2) years
and a fine from Two thousand pesos (P2,000.00) to Twenty thousand pesos (20,000.00), or both
such fine and imprisonment, at the discretion of the court, and forfeiture of the subject corals,
including the vessel and its proper disposition.

The confiscated corals shall either be returned to the sea or donated to schools and museums for
educational or scientific purposes or disposed through other means.
Section 92. Ban on Muro-Ami Other Methods and Gear Destructive to Coral Reefs and Other
Marine Habitat. - It shall be unlawful for any person, natural or juridical, to fish with gear method that
destroys coral reefs, seagrass beds, and other fishery marine life habitat as may be determined by
the Department. "Muro-Ami" and any of its variation, and such similar gear and methods that require
diving, other physical or mechanical acts to pound the coral reefs and other habitat to entrap, gather
or catch fish and other fishery species are also prohibited.

The operator, boat captain, master fisherman, and recruiter or organizer of fishworkers who violate
this provision shall suffer a penalty of two (2) years to ten (10) years imprisonment and a fine of not
less than One hundred thousand pesos (P100,000.00) to Five hundred thousand pesos
(P500,000.00) or both such fine and imprisonment, at the discretion of the court. The catch and gear
used shall be confiscated.

It shall likewise be unlawful for any person or corporation to gather, sell or export white sand, silica,
pebbles and any other substances which make up any marine habitat.

The person or corporation who violates this provision shall suffer a penalty of two (2) years to ten
(10) years imprisonment and a fine of not less than One hundred thousand pesos (P100,000.00) to
Five hundred thousand pesos (P500,000.00) or both such fine and imprisonment, at the discretion of
the court. The substance taken from its marine habitat shall be confiscated.

Section 93. Illegal Use of Superlights. - It shall be unlawful to engage in fishing with the use of
superlights in municipal waters or in violation of the rules and regulations which may be promulgated
by the Department on the use of superlights outside municipal waters.

Violations of this provision shall be punished by imprisonment from six (6) months to two (2) years or
a fine of Five thousand pesos (P5,000.00) per superlight, or both such fine and imprisonment at the
discretion of the courts. The superlight, fishing gears and vessel shall be confiscated.

Section 94. Conversion of Mangroves. - It shall be unlawful for any person to convert mangroves
into fishponds or for any other purposes.

Violation of the provision of this section shall be punished by imprisonment of six (6) years and one
(1) day to twelve (12) years and/or a fine of Eighty thousand pesos (P80,000.00): Provided, That if
the area requires rehabilitation or restoration as determined by the court, the offender should also be
required to restore or compensate for the restoration of the damage.

Section 95. Fishing in Overfished Area and During Closed Season. - It shall be unlawful to fish
in overfished area and during closed season.

Violation of the provision of this section shall be punished by imprisonment of six (6) months and one
(1) day to six (6) years and/or fine of Six thousand pesos (P6,000.00) and by forfeiture of the catch
and cancellation of fishing permit or license.

Section 96. Fishing in Fishery Reserves, Refuge and Sanctuaries. - It shall be unlawful to fish in
fishery areas declared by the Department as fishery reserves, refuge and sanctuaries.

Violation of the provision of this section shall be punished by imprisonment of two (2) years to six (6)
years and/or fine of Two thousand pesos (P2,000.00) to Twenty thousand pesos (P20,000.00) and
by forfeiture of the catch and the cancellation of fishing permit or license.
Section 97. Fishing Or Taking of Rare, Threatened or Endangered Species. - It shall be unlawful
to fish or take rare, threatened or endangered species as listed in the CITES and as determined by
the Department.

Violation of the provision of this section shall be punished by imprisonment of twelve (12) years to
twenty (20) years and/or a fine of One hundred and twenty thousand pesos (P120,000.00) and
forfeiture of the catch, and the cancellation of fishing permit.

Section 98. Capture of Sabalo and Other Breeders/Spawners. - It shall be unlawful for any
person to catch, gather, capture or possess mature milkfish or "sabalo" and such other breeders or
spawners of other fishery species as may be determined by the Department: Provided, That
catching of "sabalo" and other breeders/spawners for local breeding purposes or scientific or
research purposes may be allowed subject to guidelines to be promulgated by the Department.

Violation of the provision of this section shall be punished by imprisonment of six (6) months and one
(1) day to eight (8) years and/or a fine of Eighty thousand pesos (P80,000.00) and forfeiture of the
catch, and fishing equipment used and revocation of license.

Section 99. Exportation of Breeders, Spawners, Eggs or Fry. - Exportation of breeders,

spawners, eggs or fry as prohibited in this Code shall be punished by imprisonment of eight (8)
years, confiscation of the same or a fine equivalent to double the value of the same, and revocation
of the fishing and/or export license/permit.

Section 100. Importation or Exportation of Fish or Fishery Species. - Any importation or

exportation of fish or fisheries species in violation of this Code shall be punished by eight (8) years of
imprisonment, a fine of Eighty thousand pesos (P80,000.00) and destruction of live fishery species
or forfeiture of non-live fishery species in favor of the department for its proper disposition: Provided,
That violator of this provision shall be banned from being members or stock holders of companies
currently engaged in fisheries or companies to be created in the future, the guidelines for which shall
be promulgated by the Department.

Section 101. Violation of Catch Ceilings. - It shall be unlawful for any person to fish in violation of
catch ceilings as determined by the Department. Violation of the provision of this section shall be
punished by imprisonment of six (6) months and one (1) day to six (6) years and/or a fine of Fifty
thousand pesos (P50,000.00) and forfeiture of the catch, and fishing equipment used and revocation
of license.

Section 102. Aquatic Pollution. - Aquatic pollution, as defined in this Code shall be unlawful.

Violation of the provision of this section shall be punished by imprisonment of six (6) years and one
(1) day to twelve (12) years and/or a fine of Eighty thousand pesos (P80,000.00) plus an additional
fine of Eight thousand pesos (P8,000.00) per day until such violation ceases and the fines paid.

Section 103. Other Violations. - The following fisheries activities shall also be considered as a
violation of this Code:

(a) Failure to Comply with Minimum Safety Standards. - The owner and captain of a
commercial fishing vessel engaged in fishing who, upon demand by proper authorities, fails
to exhibit or show proof of compliance with the safety standards provided in this Code, shall
be immediately prevented from continuing with his fishing activity and escorted to the nearest
 port or landing point. The license to operate the commercial fishing vessel shall be
suspended until the safety standard has been complied with.

(b) Failure to Conduct a Yearly Report on all Fishponds, Fish Pens and Fish Cages. - The
FLA of the holder who fails to render a yearly report shall be immediately cancelled:
Provided, That if the offender be the owner of the fishpond, fish pen or fish cage, he shall be
subjected to the following penalties: (1) first offense, a fine of Five hundred pesos (P500.00)
per unreported hectare; (2) subsequent offenses, a fine of One thousand pesos (1,000.00)
per unreported hectare.

(c) Gathering and Marketing of Shell Fishes. - It shall be unlawful for any person to take, sell,
transfer, or have in possession for any purpose any shell fish which is sexually mature or
below the minimum size or above the maximum quantities prescribed for the particular
species.

(d) Obstruction to Navigation or Flow and Ebb of Tide in any Stream, River, Lake or Bay. - It
shall be unlawful for any person who causes obstruction to navigation or flow or ebb of tide.

(e) Construction and Operation of Fish Corrals/Traps, Fish Pens and Fish Cages. - It shall be
unlawful to construct and operate fish corrals/traps, fish pens and fish cages without a
license/permit.

Subject to the provision of subparagraph (b) of this section, violation of the above-enumerated
prohibited acts shall subject the offender to a fine ranging from Two thousand pesos (P2,000.00) to
Ten thousand pesos (P10,000.00) or imprisonment from one (1) month and one (1) day to six (6)
months, or both such fine and imprisonment, upon the discretion of the court: Provided, That the
Secretary is hereby empowered to impose upon the offender an administrative fine of not more than
Ten thousand pesos (P10,000.00) or to cancel his permit or license, or to impose such fine and to
cancel his permit or license, in the discretion of the Secretary: Provided, further, That the Secretary,
or his duly authorized representative, and law enforcement agents are hereby empowered to
impound with the assistance of the Philippine Coast Guard, PNP-Maritime Command: Provided,
finally, That any person who unlawfully obstructs or delays the inspection and/or movement of fish
and fishery/aquatic products when such inspection and/or movement is authorized under this Code,
shall be subject to a fine of not more than Ten thousand pesos (P10,000.00) or imprisonment of not
more than two (2) years, or both such fine and imprisonment, upon the discretion of the court.

Every penalty imposed for the commission of an offense shall carry with it the forfeiture of the
proceeds of such offense and the instruments or tools with which it was committed.

Such proceeds and instruments or tools shall be confiscated and forfeited in favor of the
Government, unless they be the property of a third person not liable for the offense, but those
articles which are not subject of lawful commerce shall be destroyed.

Section 104. Commercial Fishing Vessel Operators Employing Unlicensed Fisherfolk or

Fishworker or Crew. - The owner/operator of a commercial fishing vessel employing unlicensed
fisherfolk or fishworker shall be fined Five hundred pesos (P500.00) each for every month that the
same has been employed and/or One thousand pesos (P1,000.00) for every month for each
unlicensed crew member who has been employed.

Section 105. Obstruction of Defined Migration Paths. - Obstruction of any defined migration

paths of anadromous, catadromous and other migratory species, in areas including, but not limited
to river mouths and estuaries within a distance determined by the concerned FARMCs shall be
punished by imprisonment of seven (7) years to twelve (12) years or a fine from Fifty thousand
pesos (P50,000.00) to One hundred thousand pesos (P100,000.00)or both imprisonment and fine at
the discretion of the court, and cancellation of permit/license, if any, and dismantling of obstruction
shall be at his own expense and confiscation of same.

Section 106. Obstruction to Fishery Law Enforcement Officer. - The boat owner, master or
operator or any person acting on his behalf of any fishing vessel who evades, obstructs or hinders
any fishery law enforcement officer of the Department to perform his duty, shall be fined Ten
thousand pesos (P10,000.00). In addition, the registration, permit and/or license of the vessel
including the license of the master fisherman shall be canceled.

Section 107. Promulgation of Administrative Orders. - For purposes of fishery regulation or other

fishery adjustments, the Department in consultation with the LGUs and local FARMCs, shall issue
Fishery Administrative Orders or regulations for the conservation, preservation, management and
sustainable development of fishery and aquatic resources.

CHAPTER VII
General Provisions

Section 108. Fisherfolk Settlement Areas. - The Department shall establish and create fisherfolk
settlement areas in coordination with concerned agencies of the government, where certain areas of
the public domain, specifically near the fishing grounds, shall be reserved for the settlement of the
municipal fisherfolk. Nothing in this section shall be construed to vest ownership of any resettlement
area to a municipal fisherfolk for whom said areas may have been reserved for or had been actually
granted to.

Section 109. Municipal Fisheries Grant Fund. - For the development, management and
conservation of the municipal resources, there is hereby created a Fishery Grant Fund to finance
fishery projects of the LGUs primarily for the upliftment of the municipal fisherfolk. The amount of
One hundred million pesos (P100,000,000.00) is hereby appropriated out of the Department's
allocation in the General Appropriations Act (GAA) to support the Grant Fund.

For this purpose, the Department may seek financial assistance from any source and may receive
any donation therefore.

Section 110. Fishery Loan and Guarantee Fund. - Pursuant to Section 7, Article XIII of the
Constitution, there is hereby created a Fishery Loan and Guarantee Fund with an initial of One
hundred million pesos (P100,000,000.00), which shall be administered by the Land Bank of the
Philippines. The fund shall be made available for lending to qualified borrowers to finance the
development of the fishery industry under a program to be prescribed by the Department.

For the same purpose, the Department may seek financial assistance from any source and may
receive any donation therefrom.

Section 111. Fishing Vessels Development Fund. - There is hereby created a Fishing Vessels
Development Fund to enhance the building and/or acquisition of fishing vessels. This shall be a
long-term loan facility that shall be administered by the Development Bank of the Philippines. The
amount of Two hundred and fifty million pesos (P250,000,000.00) per year for five (5) years is
hereby appropriated out of the Department's allocation in the GAA to support this Development
Fund.
Section 112. Special Fisheries Science and Approfishtech Fund. - The Department shall provide
subsidy for full technical and financial support to the development of appropriate technology, both in
fishery and ancillary industries, that are ecologically sound, locally source-based and labor intensive,
based on the requirement and needs of the FARMCs. An initial amount of One hundred million
pesos (100,000,000.00) shall be authorized for the purpose of a Special Fisheries Science and
Approfishtech Fund, and thereafter shall be included in the GAA.

Section 113. Aquaculture Investment Fund. - An Aquaculture Investment Fund in the minimum

amount of Fifty million pesos (P50,000,000.00) shall be established for soft loans which shall be
extended to municipal fisherfolk and their organization who will engage in aquaculture, and for the
development of underdeveloped or underutilized inland fishponds.

Section 114. Other Fisheries Financing Facilities. - In addition to fisheries credit guarantee, grant
and other similar facilities granted under this Code, qualified Filipino fisherfolk and fisheries
enterprises shall enjoy such other facilities granted them under existing and/or new laws, specially
as to rural credit, with preference being given to fisheries cooperatives.

Section 115. Professionalization of Fisheries Graduates. - There is hereby created a Fisheries

Board of Examiners in the Professional Regulation Commission to upgrade the Fisheries Profession:
Provided, however, That those who have passed the Civil Service Examination for Fisheries shall
automatically be granted eligibility by the Fisheries Board of Examiners: Provided, further, That they
have served the industry in either public or private capacity for not less than five (5) years: Provided,
finally, That the first Board Examination for B.S. Fisheries Graduates shall be conducted within one
(1) year from the approval of this Code.

Section 116. Upgrading of State Fisheries Schools/Colleges. - The Department, in coordination

with the Commission on Higher Education (CHED), Department of Education, Culture and Sports
(DECS), and Technical Education and Skills Development Authority (TESDA), shall upgrade State
Fisheries Schools/Colleges which provide both formal and non-formal education: Provided, however,
That the CHED shall incorporate Approfishtech in the curricula of fisheries schools/colleges.

The Department and the CHED shall jointly formulate standards to upgrade all fisheries
schools/colleges. Fisheries schools/colleges that do not meet minimum standards shall be closed.

Section 117. Inclusion of Fisheries Conservation Subjects in School Curriculum. - Fisheries

conservation subjects shall be incorporated in the curricula of elementary and secondary schools
both private and public.

Section 118. Educational campaign at all levels. - The Department, the CHED, the DECS and the
Philippine Information Agency shall launch and pursue a nationwide educational campaign to:

(a) help realize the policies and implement the provisions of this Code;

(b) promote the development, management, conservation and proper use of the
environment;

(c) promote the principle of sustainable development; and

(d) promote the development of truly Filipino-oriented fishing and ancillary industries.
Section 119. Infrastructure Support. - The Department in cooperation with concerned agencies
shall:

(a) prepare and implement a nationwide plan for the development of municipal fishing ports
and markets;

(b) prioritize the construction of farm-to-market roads linking the fisheries production sites,
coastal landing points and other post-harvest facilities to major market and arterial
roads/highways;

(c) identity community infrastructure facilities such as fish landing ports, ice plant and cold
storage facilities in consultation with fishery cooperatives/associations and prepare plans
and designs for their construction that would be consistent with international environmental
impact;

(d) establish and maintain quality laboratories in major fish ports and prescribe the highest
standards for the operation and maintenance of such post-harvest facilities;

(e) arrange and make representations with appropriate funding institutions to finance such
facilities for the use of the fishery cooperatives/associations;

(f) develop and strengthen marketing facilities and promote cooperative marketing systems;
and

(g) promote and strengthen local fisheries ship-building and repair industry.

Section 120. Extension Services. - The Department shall develop cost-effective, practical and
efficient extension services on a sustained basis, in addition to those provided by state educational
institutions, especially to municipal fisherfolk in undeveloped areas, utilizing practicable and
indigenous resources and government agencies available, and based upon a system of self-reliance
and self-help.

Section 121. Protection of Sensitive Technical Information. - The Department shall take such
measures as may be necessary in order to protect trade, industrial and policy information of Filipino
fisherfolk, fisheries owners/operators, entrepreneurs, manufacturers and researchers, when
disclosure of such information will injure the competitiveness or viability of domestic fisheries.

Section 122. Assistance in Collecting Information. - The Department, in coordination with other

government entities concerned, may require Filipino representatives abroad and foreign-based
personnel to assist in the collection of fisheries data and information.

Section 123. Charting of Navigational Lanes and Delineation of Municipal Waters. - The

Department shall authorize the National Mapping and Resource Information Authority (NAMRIA) for
the designation and charting of navigational lanes in fishery areas and delineation of municipal
waters. The Philippine Coast Guard shall exercise control and supervision over such designated
navigational lanes.

Section 124. Persons and Deputies Authorized to Enforce this Code and Other Fishery Laws,
Rules and Regulations. - The law enforcement officers of the Department, the Philippine Navy,
Philippine Coast Guard, Philippine National Police (PNP), PNP-Maritime Command, law
enforcement officers of the LGUs and other government enforcement agencies, are hereby
authorized to enforce this Code and other fishery laws, rules and regulations. Other competent
government officials and employees, punong barangays and officers and members of fisherfolk
associations who have undergone training on law enforcement may be designated in writing by the
Department as deputy fish wardens in the enforcement of this Code and other fishery laws, rules
and regulations.

Section 125. Strengthening Prosecution and Conviction of Violators of Fishery Laws. - The

Department of Justice (DOJ) shall embark on a program to strengthen the prosecution and
conviction aspects of fishery law enforcement through augmentation of the current complement of
state prosecutors and through their continuous training and reorientation on fishery laws, rules and
regulations.

Section 126. Foreign Grants and Aids. - All foreign grants, aids, exchange programs, loans,
researches and the like shall be evaluated and regulated by the Department to ensure that such are
consistent with the Filipinization, democratization and industrialization of fishing industry and the
development of the entire country.

Section 127. Mandatory Review. - The Congress of the Philippines shall undertake a mandatory
review of this Code at least once every five (5) years and as often as it may deem necessary, to
ensure that fisheries policies and guidelines remain responsive to changing circumstances.

CHAPTER VIII
Transitory Provisions

Section 128. Moratoria. - The Department shall, upon the recommendation of the Bureau, have the
power to declare a moratorium on the issuance of licenses for commercial fishing vessels to operate
in specified area or areas in Philippine waters for a limited period of time if there are indications of
overfishing brought about by a decrease in the volume and sizes of fish caught therein or for
conservation or ecological purposes.

No new licenses and similar privileges on exploitation of specific fishery areas in Philippine waters
and aquaculture production areas shall be issued in accordance with this Code. Such moratoria shall
not exceed five (5) years from the effectivity of this Code.

Section 129. Formulation of Implementing Rules and Regulations. - An Inter-agency Committee

is hereby created to formulate rules and regulations for the full implementation of this Code within
ninety (90) days of its effectivity: Provided, however, That the formulated rules and regulations shall
be submitted to both Houses of Congress for information and guidance. Such rules and regulations
shall take effect upon publication in a newspaper of general circulation.

The Inter-agency Committee shall be composed of the following:

(a) Secretary of Agriculture as Chairman;

(b) Secretary of the Interior and Local Government;

(c) Secretary of Environment and Natural Resources;

(d) Secretary of Justice;

(e) Secretary of Finance;

 (f) Secretary of Budget and Management;

(g) Secretary of Labor and Employment;

(h) Secretary of National Defense;

(i) Commissioner of Civil Service Commission;

(j) Director of BFAR;

(k) Executive Director of PCAMRD;

(l) General Manager of PFDA;

(m) One (1) representative from each of the following:

(a.1) The League of Provinces;

(a.2) The League of Cities;

(a.3) The League of Municipalities;

(a.4) The Liga ng mga Barangay;

(n) Representative of the municipal fisherfolk; lawphi1™

(o) Representative of the commercial fishers;

(p) Representative of the non-government organizations involved in fishing concerns; and

(q) A representative from the academe coming from the specialized fisheries institution.

CHAPTER IX
Final Provisions

Section 130. Appropriation. - The sum necessary to effectively carry out the provisions of this Act
during the first year of implementation shall be sourced from the budget of the DA/BFAR and other
agencies performing fisheries-related functions: Provided, however, That such amount as may be
necessary to carry out the provisions of Sections 79, 109, 110, 111, 112, 113 are hereby
appropriated out of the unappropriated funds of the National Treasury. The Congress of the
Philippines shall provide for the appropriations of the Department, the NFRDI and the Fisheries
Scholarship Program for the succeeding years to be included in the annual GAA.

Section 131. Repealing Clause. - Presidential Decree No. 704, as amended by Presidential Decree
Nos. 1015 and 1058, Presidential Decree No. 977, as amended, Executive Order No. 967, Series of
1984, Executive Order No. 116, Series of 1987, Executive Order No. 292, Series of 1987, Executive
Order No. 473, Series of 1991 and other existing laws except Republic Act No. 7611, decrees,
executive orders, and rules and regulations or parts thereof, which are inconsistent with this Code,
are hereby repealed or modified accordingly.
Section 132. Separability Clause. - If any portion or provision of this Code is declared
unconstitutional or invalid, the other portions or provisions hereof, which are not affected thereby,
shall continue in full force and effect.

Section 133. Effectivity. - This Code shall take effect fifteen (15) days after its publication in the
Official Gazette or in two (2) newspapers of general publication.

Approved: February 25, 1998 lawphi1™

REPUBLIC ACT NO. 7942        March 3, 1995

AN ACT INSTITUTING A NEW SYSTEM OF MINERAL RESOURCES EXPLORATION,

DEVELOPMENT, UTILIZATION, AND CONSERVATION

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

assembled:

CHAPTER I
INTRODUCTORY PROVISIONS

Section 1
Title

This Act shall be known as the "Philippine Mining Act of 1995."

Section 2
Declaration of Policy

All mineral resources in public and private lands within the territory and exclusive economic zone of
the Republic of the Philippines are owned by the State. It shall be the responsibility of the State to
promote their rational exploration, development, utilization and conservation through the combined
efforts of government and the private sector in order to enhance national growth in a way that
effectively safeguards the environment and protect the rights of affected communities.

Section 3
Definition of Terms

As used in and for purposes of this Act, the following terms, whether in singular or plural, shall mean:

a. Ancestral lands refers to all lands exclusively and actually possessed, occupied, or utilized
by indigenous cultural communities by themselves or through their ancestors in accordance
with their customs and traditions since time immemorial, and as may be defined and
delineated by law.

b. Block or meridional block means an area bounded by one-half (1/2) minute of latitude and
one-half (1/2) minute of longitude, containing approximately eighty-one hectares (81 has.).
c. Bureau means the Mines and Geosciences Bureau under the Department of Environment
and Natural Resources.

d. Carrying capacity refers to the capacity of natural and human environments to

accommodate and absorb change without experiencing conditions of instability and
attendant degradation.

e. Contiguous zone refers to water, sea bottom and substratum measured twenty-four
nautical miles (24 n.m.) seaward from the base line of the Philippine archipelago.

f. Contract area means land or body of water delineated for purposes of exploration,
development, or utilization of the minerals found therein.

g. Contractor means a qualified person acting alone or in consortium who is a party to a

mineral agreement or to a financial or technical assistance agreement.

h. Co-production agreement (CA) means an agreement entered into between the

Government and one or more contractors in accordance with Section 26(b) hereof.

i. Department means the Department of Environment and Natural Resources.

j. Development means the work undertaken to explore and prepare an ore body or a mineral
deposit for mining, including the construction of necessary infrastructure and related
facilities.

k. Director means the Director of the Mines and Geosciences Bureau.

l. Ecological profile or eco-profile refers to geographic-based instruments for planners and

decision-makers which presents an evaluation of the environmental quality and carrying
capacity of an area.

m. Environmental compliance certificate (ECC) refers to the document issued by the

government agency concerned certifying that the project under consideration will not bring
about an unacceptable environmental impact and that the proponent has complied with the
requirements of the environmental impact statement system.

n. Environmental impact statement (EIS) is the document which aims to identify, predict,
interpret, and communicate information regarding changes in environmental quality
associated with a proposed project and which examines the range of alternatives for the
objectives of the proposal and their impact on the environment.

o. Exclusive economic zone means the water, sea bottom and subsurface measured from
the baseline of the Philippine archipelago up to two hundred nautical miles (200 n.m.)
offshore.

p. Existing mining/quarrying right means a valid and subsisting mining claim or permit or
quarry permit or any mining lease contract or agreement covering a mineralized area
granted/issued under pertinent mining laws.

q. Exploration means the searching or prospecting for mineral resources by geological,

geochemical or geophysical surveys, remote sensing, test pitting, trenching, drilling, shaft
sinking, tunneling or any other means for the purpose of determining the existence, extent,
quantity and quality thereof and the feasibility of mining them for profit.

r. Financial or technical assistance agreement means a contract involving financial or

technical assistance for large-scale exploration, development, and utilization of mineral
resources.

s. Force majeure means acts or circumstances beyond the reasonable control of contractor
including, but not limited to, war, rebellion, insurrection, riots, civil disturbance, blockade,
sabotage, embargo, strike, lockout, any dispute with surface owners and other labor
disputes, epidemic, earthquake, storm, flood or other adverse weather conditions, explosion,
fire, adverse action by government or by any instrumentality or subdivision thereof, act of
God or any public enemy and any cause that herein describe over which the affected party
has no reasonable control.

t. Foreign-owned corporation means any corporation, partnership, association, or

cooperative duly registered in accordance with law in which less than fifty per centum (50%)
of the capital is owned by Filipino citizens.

u. Government means the government of the Republic of the Philippines.

v. Gross output means the actual market value of minerals or mineral products from its
mining area as defined in the National Internal Revenue Code.

w. Indigenous cultural community means a group or tribe of indigenous Filipinos who have
continuously lived as communities on communally-bounded and defined land since time
immemorial and have succeeded in preserving, maintaining, and sharing common bonds of
languages, customs, traditions, and other distinctive cultural traits, and as may be defined
and delineated by law.

x. Joint venture agreement (JVA) means an agreement entered into between the
Government and one or more contractors in accordance with Section 26(c) hereof.

y. Mineral processing means the milling, beneficiation or upgrading of ores or minerals and
rocks or by similar means to convert the same into marketable products.

z. Mine wastes and tailings shall mean soil and rock materials from surface or underground
mining and milling operations with no economic value to the generator of the same.

aa. Minerals refers to all naturally occurring inorganic substance in solid, gas, liquid, or any
intermediate state excluding energy materials such as coal, petroleum, natural gas,
radioactive materials, and geothermal energy.

ab. Mineral agreement means a contract between the government and a contractor,
involving mineral production-sharing agreement, co-production agreement, or joint-venture
agreement.

ac. Mineral land means any area where mineral resources are found.

ad. Mineral resource means any concentration of minerals/rocks with potential economic
value.
ae. Mining area means a portion of the contract area identified by the contractor for purposes
of development, mining, utilization, and sites for support facilities or in the immediate vicinity
of the mining operations.

af. Mining operation means mining activities involving exploration, feasibility, development,
utilization, and processing.

ag. Non-governmental organization (NGO) includes nonstock, nonprofit organizations

involved in activities dealing with resource and environmental conservation, management
and protection.

ah. Net assets refers to the property, plant and equipment as reflected in the audited
financial statement of the contractor net of depreciation, as computed for tax purposes,
excluding appraisal increase and construction in progress.

ai. Offshore means the water, sea bottom and subsurface from the shore or coastline
reckoned from the mean low tide level up to the two hundred nautical miles (200 n.m.)
exclusive economic zone including the archipelagic sea and contiguous zone.

aj. Onshore means the landward side from the mean tide elevation, including submerged
lands in lakes, rivers and creeks.

ak. Ore means a naturally occurring substance or material from which a mineral or element
can be mined and/or processed for profit.

al. Permittee means the holder of an exploration permit.

am. Pollution control and infrastructure devices refers to infrastructure, machinery,

equipment and/or improvements used for impounding, treating or neutralizing, precipitating,
filtering, conveying and cleansing mine industrial waste and tailings as well as eliminating or
reducing hazardous effects of solid particles, chemicals, liquids or other harmful byproducts
and gases emitted from any facility utilized in mining operations for their disposal.

an. President means the President of the Republic of the Philippines.

ao. Private land refers to any land belonging to any private person which includes alienable
and disposable land being claimed by a holder, claimant, or occupant who has already
acquired a vested right thereto under the law, although the corresponding certificate or
evidence of title or patent has not been actually issued.

ap. Public land refers to lands of the public domain which have been classified as agricultural
lands and subject to management and disposition or concession under existing laws.

aq. Qualified person means any citizen of the Philippines with capacity to contract, or a
corporation, partnership, association, or cooperative organized or authorized for the purpose
of engaging in miring, with technical and financial capability to undertake mineral resources
development and duly registered in accordance with law at least sixty per centum (60%) of
the capital of which is owned by citizens of the Philippines: Provided, That a legally
organized foreign-owned corporation shall be deemed a qualified person for purposes of
granting an exploration permit, financial or technical assistance agreement or mineral
processing permit.
 ar. Quarrying means the process of extracting, removing and disposing quarry resources
found on or underneath the surface of private or public land.

as. Quarry permit means a document granted to a qualified person for the extraction and
utilization of quarry resources on public or private lands.

at. Quarry resources refers to any common rock or other mineral substances as the Director
of Mines and Geosciences Bureau may declare to be quarry resources such as, but not
limited to, andesite, basalt, conglomerate, coral sand, diatomaceous earth, diorite,
decorative stones, gabbro, granite, limestone, marble, marl, red burning clays for potteries
and bricks, rhyolite, rock phosphate, sandstone, serpentine, shale, tuff, volcanic cinders, and
volcanic glass: Provided, That such quarry resources do not contain metals or metallic
constituents and/or other valuable minerals in economically workable quantities: Provided,
further, That non-metallic minerals such as kaolin, feldspar, bull quartz, quartz or silica, sand
and pebbles, bentonite, talc, asbestos, barite, gypsum, bauxite, magnesite, dolomite, mica,
precious and semi-precious stones, and other non-metallic minerals that may later be
discovered and which the: Director declares the same to be of economically workable
quantities, shall not be classified under the category of quarry resources.

au. Regional director means the regional director of any mines regional office under the
Department of Environment and Natural Resources.

av. Regional office means any of the mines regional offices of the Department of
Environment and Natural Resources.

aw. Secretary means the Secretary of the Department of Environment and Natural
Resources.

ax. Special allowance refers to payment to the claim-owners or surface right-owners

particularly during the transition period from Presidential Decree No. 463 and Executive
Order No. 279, series of 1987.

ay. State means the Republic of the Philippines.

az. Utilization means the extraction or disposition of minerals.

CHAPTER II
GOVERNMENT MANAGEMENT

Section 4
Ownership of Mineral Resources

Mineral resources are owned by the State and the exploration, development, utilization, and
processing thereof shall be under its full control and supervision. The State may directly undertake
such activities or it may enter into mineral agreements with contractors.

The State shall recognize and protect the rights of the indigenous cultural communities to their
ancestral lands as provided for by the Constitution.
 Section 5
Mineral Reservations

When the national interest so requires, such as when there is a need to preserve strategic raw
materials for industries critical to national development, or certain minerals for scientific, cultural or
ecological value, the President may establish mineral reservations upon the recommendation of the
Director through the Secretary. Mining operations in existing mineral reservations and such other
reservations as may thereafter be established, shall be undertaken by the Department or through a
contractor: Provided, That a small scale-mining cooperative covered by Republic Act No. 7076 shall
be given preferential right to apply for a small-scale mining agreement for a maximum aggregate
area of twenty-five percent (25%) of such mineral reservation, subject to valid existing
mining/quarrying rights as provided under Section 112 Chapter XX hereof. All submerged lands
within the contiguous zone and in the exclusive economic zone of the Philippines are hereby
declared to be mineral reservations.

A ten per centum (10%) share of all royalties and revenues to be derived by the government from
the development and utilization of the mineral resources within mineral reservations as provided
under this Act shall accrue to the Mines and Geosciences Bureau to be allotted for special projects
and other administrative expenses related to the exploration and development of other mineral
reservations mentioned in Section 6 hereof.

Section 6
Other Reservations

Mining operations in reserved lands other than mineral reservations may be undertaken by the
Department, subject to limitations as herein provided. In the event that the Department cannot
undertake such activities, they may be undertaken by a qualified person in accordance with the rules
and regulations promulgated by the Secretary. The right to develop and utilize the minerals found
therein shall be awarded by the President under such terms and conditions as recommended by the
Director and approved by the Secretary: Provided, That the party who undertook the exploration of
said reservation shall be given priority. The mineral land so awarded shall be automatically excluded
from the reservation during the term of the agreement: Provided, further, That the right of the lessee
of a valid mining contract existing within the reservation at the time of its establishment shall not be
prejudiced or impaired.

Section 7
Periodic Review of Existing Mineral Reservations

The Secretary shall periodically review existing mineral reservations for the purpose of determining
whether their continued existence is consistent with the national interest, and upon his
recommendation, the President may, by proclamation, alter or modify the boundaries thereof or
revert the same to the public domain without prejudice to prior existing rights.

Section 8
Authority of the Department

The Department shall be the primary government agency responsible for the conservation,
management, development, and proper use of the State's mineral resources including those in
reservations, watershed areas, and lands of the public domain. The Secretary shall have the
authority to enter into mineral agreements on behalf of the Government upon the recommendation of
the Director, promulgate such rules and regulations as may be necessary to implement the intent
and provisions of this Act.
 Section 9
Authority of the Bureau

The Bureau shall have direct charge in the administration and disposition of mineral lands and
mineral resources and shall undertake geological, mining, metallurgical, chemical, and other
researches as well as geological and mineral exploration surveys. The Director shall recommend to
the Secretary the granting of mineral agreements to duly qualified persons and shall monitor the
compliance by the contractor of the terms and conditions of the mineral agreements. The Bureau
may confiscate surety, performance and guaranty bonds posted through an order to be promulgated
by the Director. The Director may deputize, when necessary, any member or unit of the Philippine
National Police, barangay, duly registered non-governmental organization (NGO) or any qualified
person to police all mining activities.

Section 10
Regional Offices

There shall be as many regional offices in the country as may be established by the Secretary, upon
the recommendation of the Director.

Section 11
Processing of Applications

The system of processing applications for mining rights shall be prescribed in the rules and
regulations of this Act.

Section 12
Survey, Charting and Delineation of Mining Areas

A sketch plan or map of the contract or mining area prepared by a deputized geodetic engineer
suitable for publication purposes shall be required during the filing of a mineral agreement or
financial or technical assistance agreement application. Thereafter, the contract or mining area shall
be surveyed and monumented by a deputized geodetic engineer or bureau geodetic engineer and
the survey plan shall be approved by the Director before the approval of the mining feasibility.

Section 13
Meridional Blocks

For purposes of the delineation of the contract or mining areas under this Act, the Philippine territory
and its exclusive economic zone shall be divided into meridional blocks of one-half (1/2) minute of
latitude and one-half (1/2) minute of longitude.

Section 14
Recording System

There shall be established a national and regional filing and recording system. A mineral resource
database system shall be set up in the Bureau which shall include, among others, a mineral rights
management system. The Bureau shall publish at least annually, a mineral gazette of nationwide
circulation containing among others, a current list of mineral rights, their location in the map, mining
rules and regulations, other official acts affecting mining, and other information relevant to mineral
resources development. A system and publication fund shall be included in the regular budget of the
Bureau.
 CHAPTER III
SCOPE OF APPLICATION

Section 15
Scope of Application

This Act shall govern the exploration, development, utilization and processing of all mineral
resources.

Section 16
Opening of Ancestral Lands for Mining Operations

No ancestral land shall be opened for mining-operations without prior consent of the indigenous
cultural community concerned.

Section 17
Royalty Payments for Indigenous Cultural Communities

In the event of an agreement with an indigenous cultural community pursuant to the preceding
section, the royalty payment, upon utilization of the minerals shall be agreed upon by the parties.
The said royalty shall form part of a trust fund for the socioeconomic well-being of the indigenous
cultural community.

Section 18
Areas Open to Mining Operations

Subject to any existing rights or reservations and prior agreements of all parties, all mineral
resources in public or private lands, including timber or forestlands as defined in existing laws, shall
be open to mineral agreements or financial or technical assistance agreement applications. Any
conflict that may arise under this provision shall be heard and resolved by the panel of arbitrators.

Section 19
Areas Closed to Mining Applications

Mineral agreement or financial or technical assistance agreement applications shall not be allowed:

a. In military and other government reservations, except upon prior written clearance by the
government agency concerned;

b. Near or under public or private buildings, cemeteries, archeological and historic sites,
bridges, highways, waterways, railroads, reservoirs, dams or other infrastructure projects,
public or private works including plantations or valuable crops, except upon written consent
of the government agency or private entity concerned;

c. In areas covered by valid and existing mining rights;

d. In areas expressedly prohibited by law;

 e. In areas covered by small-scale miners as defined by law unless with prior consent of the
small-scale miners, in which case a royalty payment upon the utilization of minerals shall be
agreed upon by the parties, said royalty forming a trust fund for the socioeconomic
development of the community concerned; and

f. Old growth or virgin forests, proclaimed watershed forest reserves, wilderness areas,
mangrove forests, mossy forests, national parks provincial/municipal forests, parks,
greenbelts, game refuge and bird sanctuaries as defined by law and in areas expressly
prohibited under the National Integrated Protected Areas System (NIPAS) under Republic
Act No. 7586, Department Administrative Order No. 25, series of 1992 and other laws.

CHAPTER IV
EXPLORATION PERMIT

Section 20
Exploration Permit

An exploration permit grants the right to conduct exploration for all minerals in specified areas. The
Bureau shall have the authority to grant an exploration Permit to a qualified person.

Section 21
Terms and Conditions of the Exploration Permit

An exploration permit shall be for a period of two (2) years, subject to annual review and
relinquishment or renewal upon the recommendation of the Director.

Section 22
Maximum Areas for Exploration Permit

The maximum area that a qualified person may hold at any one time shall be:

a. Onshore, in any one province

1. for individuals, twenty (20) blocks: and

2. for partnerships, corporations, cooperatives, or associations, two hundred (200)

blocks.

b. Onshore, in the entire Philippines

1. for individuals, forty (40) blocks; and

2. for partnerships, corporations, cooperatives, or associations, four hundred (400)

blocks.

c. Offshore, beyond five hundred meters (500m) from the mean low tide level:
 1. for individuals, one hundred (100) blocks; and

2. for partnerships, corporations, cooperatives, or associations, one thousand (1,000)

blocks.

Section 23
Rights and Obligations of the Permittee

An exploration permit shall grant to the permittee, his heirs or successors-in-interest, the right to
enter, occupy and explore the area: Provided, That if private or other parties are affected, the
permittee shall first discuss with the said parties the extent, necessity, and manner of his entry,
occupation and exploration and in case of disagreement, a panel of arbitrators shall resolve the
conflict or disagreement.

The permittee shall undertake an exploration work on the area as specified by its permit based on an
approved work program.

Any expenditure in excess of the yearly budget of the approved work program may be carried
forward and credited to the succeeding years covering the duration of the permit. The Secretary,
through the Director, shall promulgate rules and regulations governing the terms and conditions of
the permit.

The permittee may apply for a mineral production sharing agreement, joint venture agreement, co-
production agreement or financial or technical assistance agreement over the permit area, which
application shall be granted if the permittee meets the necessary qualifications and the terms and
conditions of any such agreement: Provided, That the exploration period covered by the exploration
permit shall be included as part of the exploration period of the mineral agreement or financial or
technical assistance agreement.

Section 24
Declaration of Mining Project Feasibility

A holder of an exploration permit who determines the commercial viability of a project covering a
mining area may, within the term of the permit, file with the Bureau a declaration of mining project
feasibility accompanied by a work program for development. The approval of the mining project
feasibility and compliance with other requirements provided in this Act shall entitle the holder to an
exclusive right to a mineral production sharing agreement or other mineral agreements or financial or
technical assistance agreement.

Section 25
Transfer or Assignment

An exploration permit may be transferred or assigned to a qualified person subject to the approval of
the Secretary upon the recommendation of the Director.

CHAPTER V
MINERAL AGREEMENTS
 Section 26
Modes of Mineral Agreement

For purposes of mining operations, a mineral agreement may take the following forms as herein
defined:

a. Mineral production sharing agreement is an agreement where the Government grants to

the contractor the exclusive right to conduct mining operations within a contract area and
shares in the gross output. The contractor shall provide the financing, technology,
management and personnel necessary for the implementation of this agreement.

b. Co-production agreement is an agreement between the Government and the contractor

wherein the Government shall provide inputs to the mining operations other than the mineral
resource.

c. Joint venture agreement is an agreement where a joint-venture company is organized by

the Government and the contractor with both parties having equity shares. Aside from
earnings in equity, the Government shall be entitled to a share in the gross output.

A mineral agreement shall grant to the contractor the exclusive right to conduct mining operations
and to extract all mineral resources found in the contract area. In addition, the contractor may be
allowed to convert his agreement into any of the modes of mineral agreements or financial or
technical assistance agreement covering the remaining period of the original agreement subject to
the approval of the Secretary.

Section 27
Eligibility

A qualified person may enter into any of the three (3) modes of mineral agreement with the
government for the exploration, development and utilization of mineral resources: Provided, That in
case the applicant has been in the mining industry for any length of time, he should possess a
satisfactory environmental track record as determined by the Mines and Geosciences Bureau and in
consultation with the Environmental Management Bureau of the Department.

Section 28
Maximum Areas for Mineral Agreement

The maximum area that a qualified person may hold at any time under a mineral agreement shall be:

a. Onshore, in any one province

1. for individuals, ten (10) blocks; and

2. for partnerships, cooperatives, associations, or corporations, one hundred (100)

blocks.

b. Onshore, in the entire Philippines

1. for individuals, twenty (20) blocks; and

 2. for partnerships, cooperatives, associations, or corporations, two hundred (200)
blocks.

c. Offshore, in the entire Philippines

1. for individuals fifty (50) blocks;

2. for partnerships, cooperatives, associations, or corporations, five hundred (500)

blocks; and

3. for the exclusive economic zone, a larger area to be determined by the Secretary.

The maximum areas mentioned above that a contractor may hold under a mineral agreement shall
not include mining/quarry areas under operating agreements between the contractor and a
claimowner/lessee/permittee/licensee entered into under Presidential Decree No. 463.

Section 29
Filing and Approval of Mineral Agreements

All proposed mineral agreements shall be filed in the region where the areas of interest are located,
except in mineral reservations which shall be filed with the Bureau.

The filing of a proposal for a mineral agreement shall give the proponent the prior right to areas
covered by the same. The proposed mineral agreement will be approved by the Secretary and
copies thereof shall be submitted to the President. Thereafter, the President shall provide a list to
Congress of every approved mineral agreement within thirty (30) days from its approval by the
Secretary.

Section 30
Assignment/Transfer

Any assignment or transfer of rights and obligations under any mineral agreement except a financial
or technical assistance agreement shall be subject to the prior approval of the Secretary. Such
assignment or transfer shall be deemed automatically approved if not acted upon by the Secretary
within thirty (30) working days from official receipt thereof, unless patently unconstitutional or illegal.

Section 31
Withdrawal from Mineral Agreements

The contractor may, by giving due notice at any time during the term of the agreement, apply for the
cancellation of the mineral agreement due to causes which, in the opinion of the contractor, make
continued mining operations no longer feasible or viable. The Secretary shall consider the notice and
issue its decision within a period of thirty (30) days: Provided, That the contractor has met all its
financial, fiscal and legal obligations.

Section 32
Terms

Mineral agreements shall have a term not exceeding twenty-five (25) years to start from the date of
execution thereof, and renewable for another term not exceeding twenty-five (25) years under the
same terms and conditions thereof, without prejudice to changes mutually agreed upon by the
parties. After the renewal period, the operation of the mine may be undertaken by the Government
or through a contractor. The contract for the operation of a mine shall be awarded to the highest
bidder in a public bidding after due publication of the notice thereof: Provided, That the contractor
shall have the right to equal the highest bid upon reimbursement of all reasonable expenses of the
highest bidder.

CHAPTER VI
FINANCIAL OR TECHNICAL ASSISTANCE AGREEMENT

Section 33
Eligibility

Any qualified person with technical and financial capability to undertake large-scale exploration,
development, and utilization of mineral resources in the Philippines may enter into a financial or
technical assistance agreement directly with the Government through the Department.

Section 34
Maximum Contract Area

The maximum contract area that may be granted per qualified person, subject to relinquishment
shall be:

a. 1,000 meridional blocks onshore;

b. 4,000 meridional blocks offshore; or

c. Combinations of a and b provided that it shall not exceed the maximum limits for onshore
and offshore areas.

Section 35
Terms and Conditions

The following terms, conditions, and warranties shall be incorporated in the financial or technical
assistance agreement, to wit:

a. A firm commitment in the form of a sworn statement, of an amount corresponding to the

expenditure obligation that will be invested in the contract area: Provided, That such amount
shall be subject to changes as may be provided for in the rules and regulations of this Act;

b. A financial guarantee bond shall be posted in favor of the Government in an amount

equivalent to the expenditure obligation of the applicant for any year;

c. Submission of proof of technical competence, such as, but not limited to, its track record in
mineral resource exploration, development, and utilization; details of technology to be
employed in the proposed operation; and details of technical personnel to undertake the
operation;
d. Representations and warranties that the applicant has all the qualifications and none of
the disqualifications for entering into the agreement;

e. Representations and warranties that the contractor has or has access to all the financing,
managerial and technical expertise and, if circumstances demand, the technology required
to promptly and effectively carry out the objectives of the agreement with the understanding
to timely deploy these resources under its supervision pursuant to the periodic work
programs and related budgets, when proper, providing an exploration period up to two (2)
years, extendible for another two (2) years but subject to annual review by the Secretary in
accordance with the implementing rules and regulations of this Act, and further, subject to
the relinquishment obligations;

f. Representations and warranties that, except for payments for dispositions for its equity,
foreign investments in local enterprises which are qualified for repatriation, and local
supplier's credits and such other generally accepted and permissible financial schemes for
raising funds for valid business purposes, the contractor shall not raise any form of financing
from domestic sources of funds, whether in Philippine or foreign currency, for conducting its
mining operations for and in the contract area;

g. The mining operations shall be conducted in accordance with the provisions of this Act
and its implementing rules and regulations;

h. Work programs and minimum expenditures commitments;

i. Preferential use of local goods and services to the maximum extent practicable;

j. A stipulation that the contractors are obligated to give preference to Filipinos in all types of
mining employment for which they are qualified and that technology shall be transferred to
the same;

k. Requiring the proponent to effectively use appropriate anti-pollution technology and

facilities to protect the environment and to restore or rehabilitate mined out areas and other
areas affected by mine tailings and other forms of pollution or destruction;

l. The contractors shall furnish the Government records of geologic, accounting, and other
relevant data for its mining operations, and that book of accounts and records shall be open
for inspection by the government;

m. Requiring the proponent to dispose of the minerals and byproducts produced under a
financial or technical assistance agreement at the highest price and more advantageous
terms and conditions as provided for under the rules and regulations of this Act;

n. Provide for consultation and arbitration with respect to the interpretation and
implementation of the terms and conditions of the agreements; and

o. Such other terms and conditions consistent with the Constitution and with this Act as the
Secretary may deem to be for the best interest of the State and the welfare of the Filipino
people.

Section 36
Negotiations
A financial or technical assistance agreement shall be negotiated by the Department and executed
and approved by the President. The President shall notify Congress of all financial or technical
assistance agreements within thirty (30) days from execution and approval thereof.

Section 37
Filing and Evaluation of Financial or Technical Assistance Agreement Proposals

All financial or technical assistance agreement proposals shall be filed with the Bureau after
payment of the required processing fees. If the proposal is found to be sufficient and meritorious in
form and substance after evaluation, it shall be recorded with the appropriate government agency to
give the proponent the prior right to the area covered by such proposal: Provided, That existing
mineral agreements, financial or technical assistance agreements and other mining rights are not
impaired or prejudiced thereby. The Secretary shall recommend its approval to the President.

Section 38
Term of Financial or Technical Assistance Agreement

A financial or technical assistance agreement shall have a term not exceeding twenty-five (25) years
to start from the execution thereof, renewable for not more than twenty-five (25) years under such
terms and conditions as may be provided by law.

Section 39
Option to Convert into a Mineral Agreement

The contractor has the option to convert the financial or technical assistance agreement to a mineral
agreement at any time during the term of the agreement, if the economic viability of the contract area
is found to be inadequate to justify large-scale mining operations, after proper notice to the Secretary
as provided for under the implementing rules and regulations: Provided, That the mineral agreement
shall only be for the remaining period of the original agreement.

In the case of a foreign contractor, it shall reduce its equity to forty percent (40%) in the corporation,
partnership, association, or cooperative. Upon compliance with this requirement by the contractor,
the Secretary shall approve the conversion and execute the mineral production-sharing agreement.

Section 40
Assignment/Transfer

A financial or technical assistance agreement may be assigned or transferred, in whole or in part, to

a qualified person subject to the prior approval of the President: Provided, That the President shall
notify Congress of every financial or technical assistance agreement assigned or converted in
accordance with this provision within thirty (30) days from the date of the approval thereof.

Section 41
Withdrawal from Financial or Technical Assistance Agreement

The contractor shall manifest in writing to the Secretary his intention to withdraw from the
agreement, if in his judgment the mining project is no longer economically feasible, even after he has
exerted reasonable diligence to remedy the cause or the situation. The Secretary may accept the
withdrawal: Provided, That the contractor has complied or satisfied all his financial, fiscal or legal
obligations.
 CHAPTER VII
SMALL-SCALE MINING

Section 42
Small-scale Mining

Small-scale mining shall continue to be governed by Republic Act No. 7076 and other pertinent laws.

CHAPTER VIII
QUARRY RESOURCES

Section 43
Quarry Permit

Any qualified person may apply to the provincial/city mining regulatory board for a quarry permit on
privately-owned lands and/or public lands for building and construction materials such as marble,
basalt, andesite, conglomerate, tuff, adobe, granite, gabbro, serpentine, inset filling materials, clay
for ceramic tiles and building bricks, pumice, perlite and other similar materials that are extracted by
quarrying from the ground. The provincial governor shall grant the permit after the applicant has
complied with all the requirements as prescribed by the rules and regulations.

The maximum area which a qualified person may hold at any one time shall be five hectares (5
has.): Provided, That in large-scale quarry operations involving cement raw materials, marble,
granite, sand and gravel and construction aggregates, a qualified person and the government may
enter into a mineral agreement as defined herein.

A quarry permit shall have a term of five (5) years, renewable for like periods but not to exceed a
total term of twenty-five (25) years. No quarry permit shall be issued or granted on any area covered
by a mineral agreement or financial or technical assistance agreement.

Section 44
Quarry Fee and Taxes

A permittee shall, during the term of his permit, pay a quarry fee as provided for under the
implementing rules and regulations. The permittee shall also pay the excise tax as provided by
pertinent laws.

Section 45
Cancellation of Quarry Permit

A quarry permit may be cancelled by the provincial governor for violations of the provisions of this
Act or its implementing rules and regulations or the terms and conditions of said permit: Provided,
That before the cancellation of such permit, the holder thereof shall be given the opportunity to be
heard in an investigation conducted for the purpose.
 Section 46
Commercial Sand and Gravel Permit

Any qualified person may be granted a permit by the provincial governor to extract and remove sand
and gravel or other loose or unconsolidated materials which are used in their natural state, without
undergoing processing from an area of not more than five hectares (5 has.) and in such quantities as
may be specified in the permit.

Section 47
Industrial Sand and Gravel Permit

Any qualified person may be granted an industrial sand and gravel permit by the Bureau for the
extraction of sand and gravel and other loose or unconsolidated materials that necessitate the use of
mechanical processing covering an area of more than five hectares (5 has.) at any one time. The
permit shall have a term of five (5) years, renewable for a like period but not to exceed a total term of
twenty-five (25) years.

Section 48
Exclusive Sand and Gravel Permit

Any qualified person may be granted an exclusive sand and gravel permit by the provincial governor
to quarry and utilize sand and gravel or other loose or unconsolidated materials from public lands for
his own use, provided that there will be no commercial disposition thereof.

A mineral agreement or a financial technical assistance agreement contractor shall, however, have
the right to extract and remove sand and gravel and other loose unconsolidated materials without
need of a permit within the area covered by the mining agreement for the exclusive use in the mining
operations: Provided, That monthly reports of the quantity of materials extracted therefrom shall be
submitted to the mines regional office concerned: Provided, further, That said right shall be
coterminous with the expiration of the agreement.

Holders of existing mining leases shall likewise have the same rights as that of a contractor:
Provided, That said right shall be coterminous with the expiry dates of the lease.

Section 49
Government Gratuitous Permit

Any government entity or instrumentality may be granted a gratuitous permit by the provincial
governor to extract sand and gravel, quarry or loose unconsolidated materials needed in the
construction of building and/or infrastructure for public use or other purposes over an area of not
more than two hectares (2 has.) for a period coterminous with said construction.

Section 50
Private Gratuitous Permit

Any owner of land may be granted a private gratuitous permit by the provincial governor.

Section 51
Guano Permit
Any qualified person may be granted a guano permit by the provincial governor to extract and utilize
loose unconsolidated guano and other organic fertilizer materials in any portion of a municipality
where he has established domicile. The permit shall be for specific caves and/or for confined sites
with locations verified by the Department's field officer in accordance with existing rules and
regulations.

Section 52
Gemstone Gathering Permit

Any qualified person may be granted a non-exclusive gemstone gathering permit by the provincial
governor to gather loose stones useful as gemstones in rivers and other locations.

CHAPTER IX
TRANSPORT, SALE AND PROCESSING OF MINERALS

Section 53
Ore Transport Permit

A permit specifying the origin and quantity of non-processed mineral ores or minerals shall be
required for their transport. Transport permits shall be issued by the mines regional director who has
jurisdiction over the area where the ores were extracted. In the case of mineral ores or minerals
being transported from the small-scale mining areas to the custom mills or processing plants, the
Provincial Mining Regulatory Board (PMRB) concerned shall formulate their own policies to govern
such transport of ores produced by small-scale miners. The absence of a permit shall be considered
as prima facie evidence of illegal mining and shall be sufficient cause for the Government to
confiscate the ores or minerals being transported, the tools and equipment utilized, and the vehicle
containing the same. Ore samples not exceeding two metric tons (2 m.t.) to be used exclusively for
assay or pilot test purposes shall be exempted from such requirement.

Section 54
Mineral Trading Registration

No person shall engage in the trading of mineral products, either locally or internationally, unless
registered with the Department of Trade and Industry and accredited by the Department, with a copy
of said registration submitted to the Bureau.

Section 55
Minerals Processing Permit

No person shall engage in the processing of minerals without first securing a minerals processing
permit from the Secretary. Minerals processing permit shall be for a period of five (5) years
renewable for like periods but not to exceed a total term of twenty-five (25) years. In the case of
mineral ores or minerals produced by the small-scale miners, the processing thereof as well as the
licensing of their custom mills, or processing plants shall continue to be governed by the provisions
of Republic Act No. 7076.

Section 56
Eligibility of Foreign-owned/-controlled Corporation
A foreign-owned/-controlled corporation may be granted a mineral processing permit.

CHAPTER X
DEVELOPMENT OF MINING COMMUNITIES, SCIENCE AND MINING TECHNOLOGY

Section 57
Expenditure for Community Development and Science and Mining Technology

A contractor shall assist in the development of its mining community, the promotion of the general
welfare of its inhabitants, and the development of science and mining technology.

Section 58
Credited Activities

Activities that may be credited as expenditures for development of mining communities, and science
and mining technology are the following:

a. Any activity or expenditure intended to enhance the development of the mining and
neighboring communities of a mining operation other than those required or provided for
under existing laws, or collective bargaining agreements, and the like; and

b. Any activity or expenditure directed towards the development of geosciences and mining
technology such as, but not limited to, institutional and manpower development, and basic
and applied researches. Appropriate supervision and control mechanisms shall be
prescribed in the implementing rules and regulations of this Act.

Section 59
Training and Development

A contractor shall maintain an effective program of manpower training and development throughout
the term of the mineral agreement and shall encourage and train Filipinos to participate in all aspects
of the mining operations, including the management thereof. For highly-technical and specialized
mining operations, the contractor may, subject to the necessary government clearances, employ
qualified foreigners.

Section 60
Use of Indigenous Goods, Services and Technologies

A contractor shall give preference to the use of local goods, services and scientific and technical
resources in the mining operations, where the same are of equivalent quality, and are available on
equivalent terms as their imported counterparts.

Section 61
Donations/Turn Over of Facilities

Prior to cessation of mining operations occasioned by abandonment or withdrawal of operations, on

public lands by the contractor, the latter shall have a period of one (1) year therefrom within which to
remove his improvements; otherwise, all the social infrastructure and facilities shall be turned over or
donated tax-free to the proper government authorities, national or local, to ensure that said
infrastructure and facilities are continuously maintained and utilized by the host and neighboring
communities.

Section 62
Employment of Filipinos

A contractor shall give preference to Filipino citizens in all types of mining employment within the
country insofar as such citizens are qualified to perform the corresponding work with reasonable
efficiency and without hazard to the safety of the operations. The contractor, however, shall not be
hindered from hiring employees of his own selection, subject to the provisions of Commonwealth Act
No. 613, as amended, for technical and specialized work which, in his judgment and with the
approval of the Director, requires highly-specialized training or long experience in exploration,
development or utilization of mineral resources: Provided, That in no case shall each employment
exceed five (5) years or the payback period as represented in original project study, whichever is
longer: Provided, further, That each foreigner employed as mine manager, vice-president for
operations or in an equivalent managerial position in charge of mining, milling, quarrying or drilling
operation shall:

a. Present evidence of his qualification and work experience; or

b. Shall pass the appropriate government licensure examination; or

c. In special cases, may be permitted to work by the Director for a period not exceeding one
(1) year: Provided, however, That if reciprocal privileges are extended to Filipino nationals in
the country of domicile, the Director may grant waivers or exemptions.

CHAPTER XI
SAFETY AND ENVIRONMENTAL PROTECTION

Section 63
Mines Safety and Environmental Protection

All contractors and permittees shall strictly comply with all the mines safety rules and regulations as
may be promulgated by the Secretary concerning the safe and sanitary upkeep of the mining
operations and achieve waste-free and efficient mine development. Personnel of the Department
involved in the implementation of mines safety, health and environmental rules and regulations shall
be covered under Republic Act No. 7305.

Section 64
Mine Labor

No person under sixteen (16) years of age shall be employed in any phase of mining operations and
no person under eighteen (18) years of age shall be employed underground in a mine.

Section 65
Mine Supervision
All mining and quarrying operations that employ more than fifty (50) workers shall have at least one
(1) licensed mining engineer with at least five (5) years of experience in mining operations, and one
(1) registered foreman.

Section 66
Mine Inspection

The regional director shall have exclusive jurisdiction over the safety inspection of all installations,
surface or underground, in mining operations at reasonable hours of the day or night and as much
as possible in a manner that will not impede or obstruct work in progress of a contractor or
permittee.

Section 67
Power to Issue Orders

The mines regional director shall, in consultation with the Environmental Management Bureau,
forthwith or within such time as specified in his order, require the contractor to remedy any practice
connected with mining or quarrying operations, which is not in accordance with safety and anti-
pollution laws and regulations. In case of imminent danger to life or property, the mines regional
director may summarily suspend the mining or quarrying operations until the danger is removed, or
appropriate measures are taken by the contractor or permittee.

Section 68
Report of Accidents

In case of any incident or accident, causing or creating the danger of loss of life or serious physical
injuries, the person in charge of operations shall immediately report the same to the regional office
where the operations are situated. Failure to report the same without justifiable reason shall be a
cause for the imposition of administrative sanctions prescribed in the rules and regulations
implementing this Act.

Section 69
Environmental Protection

Every contractor shall undertake an environmental protection and enhancement program covering
the period of the mineral agreement or permit. Such environmental program shall be incorporated in
the work program which the contractor or permittee shall submit as an accompanying document to
the application for a mineral agreement or permit. The work program shall include not only plans
relative to mining operations but also to rehabilitation, regeneration, revegetation and reforestation of
mineralized areas, slope stabilization of mined-out and tailings covered areas, aquaculture,
watershed development and water conservation; and socioeconomic development.

Section 70
Environmental Impact Assessment (EIA)

Except during the exploration period of a mineral agreement or financial or technical assistance
agreement or an exploration permit, an environmental clearance certificate shall be required based
on an environmental impact assessment and procedures under the Philippine Environmental Impact
Assessment System including Sections 26 and 27 of the Local Government Code of 1991 which
require national government agencies to maintain ecological balance, and prior consultation with the
local government units, non-governmental and people's organizations and other concerned sectors
of the community: Provided, That a completed ecological profile of the proposed mining area shall
also constitute part of the environmental impact assessment. People's organizations and non-
governmental organizations shall be allowed and encouraged to participate in ensuring that
contractors/permittees shall observe all the requirements of environmental protection.

Section 71
Rehabilitation

Contractors and permittees shall technically and biologically rehabilitate the excavated, mined-out,
tailings covered and disturbed areas to the condition of environmental safety, as may be provided in
the implementing rules and regulations of this Act. A mine rehabilitation fund shall be created, based
on the contractor's approved work program, and shall be deposited as a trust fund in a government
depository bank and used for physical and social rehabilitation of areas and communities affected by
mining activities and for research on the social, technical and preventive aspects of rehabilitation.
Failure to fulfill the above obligation shall mean immediate suspension or closure of the mining
activities of the contractor/permittee concerned.

CHAPTER XII
AUXILIARY MINING RIGHTS

Section 72
Timber Rights

Any provision of law to the contrary notwithstanding, a contractor may be granted a right to cut trees
or timber within his mining area as may be necessary for his mining operations subject to forestry
laws, rules and regulations: Provided, That if the land covered by the mining area is already covered
by existing timber concessions, the volume of timber needed and the manner of cutting and removal
thereof shall be determined by the mines regional director, upon consultation with the contractor, the
timber concessionaire/permittee and the Forest Management Bureau of the Department: Provided,
further, That in case of disagreement between the contractor and the timber concessionaire, the
matter shall be submitted to the Secretary whose decision shall be final. The contractor shall perform
reforestation work within his mining area in accordance with forestry laws, rules and regulations.

Section 73
Water Rights

A contractor shall have water rights for mining operations upon approval of application with the
appropriate government agency in accordance with existing water laws, rules and regulations
promulgated thereunder: Provided, That water rights already granted or vested through long use,
recognized and acknowledged by local customs, laws, and decisions of courts shall not thereby be
impaired: Provided, further, That the Government reserves the right to regulate water rights and the
reasonable and equitable distribution of water supply so as to prevent the monopoly of the use
thereof.

Section 74
Right to Possess Explosives
A contractor/exploration permittee shall have the right to possess and use explosives within his
contract/permit area as may be necessary for his mining operations upon approval of application
with the appropriate government agency in accordance with existing laws, rules and regulations
promulgated thereunder: Provided, That the Government reserves the right to regulate and control
the explosive accessories to ensure safe mining operations.

Section 75
Easement Rights

When mining areas are so situated that for purposes of more convenient mining operations it is
necessary to build, construct or install on the mining areas or lands owned, occupied or leased by
other persons, such infrastructure as roads, railroads, mills, waste dump sites, tailings ponds,
warehouses, staging or storage areas and port facilities, tramways, runways, airports, electric
transmission, telephone or telegraph lines, dams and their normal flood and catchment areas, sites
for water wells, ditches, canals, new river beds, pipelines, flumes, cuts, shafts, tunnels, or mills, the
contractor, upon payment of just compensation, shall be entitled to enter and occupy said mining
areas or lands.

Section 76
Entry into Private Lands and Concession Areas

Subject to prior notification, holders of mining rights shall not be prevented from entry into private
lands and concession areas by surface owners, occupants, or concessionaires when conducting
mining operations therein: Provided, That any damage done to the property of the surface owner,
occupant, or concessionaire as a consequence of such operations shall be properly compensated as
may be provided for in the implementing rules and regulations: Provided, further, That to guarantee
such compensation, the person authorized to conduct mining operation shall, prior thereto, post a
bond with the regional director based on the type of properties, the prevailing prices in and around
the area where the mining operations are to be conducted, with surety or sureties satisfactory to the
regional director.

CHAPTER XIII
SETTLEMENT OF CONFLICTS

Section 77
Panel of Arbitrators

There shall be a panel of arbitrators in the regional office of the Department composed of three (3)
members, two (2) of whom must be members of the Philippine Bar in good standing and one a
licensed mining engineer or a professional in a related field, and duly designated by the Secretary as
recommended by the Mines and Geosciences Bureau Director. Those designated as members of
the panel shall serve as such in addition to their work in the Department without receiving any
additional compensation As much as practicable, said members shall come from the different
bureaus of the Department in the region. The presiding officer thereof shall be selected by the
drawing of lots. His tenure as presiding officer shall be on a yearly basis. The members of the panel
shall perform their duties and obligations in hearing and deciding cases until their designation is
withdrawn or revoked by the Secretary. Within thirty (30) working days, after the submission of the
case by the parties for decision, the panel shall have exclusive and original jurisdiction to hear and
decide on the following:
 a. Disputes involving rights to mining areas;

b. Disputes involving mineral agreements or permits;

c. Disputes involving surface owners, occupants and claimholders/concessionaires; and

d. Disputes pending before the Bureau and the Department at the date of the effectivity of
this Act.

Section 78
Appellate Jurisdiction

The decision or order of the panel of arbitrators may be appealed by the party not satisfied thereto to
the Mines Adjudication Board within fifteen (15) days from receipt thereof which must decide the
case within thirty (30) days from submission thereof for decision.

Section 79
Mines Adjudication Board

The Mines Adjudication Board shall be composed of three (3) members. The Secretary shall be the
chairman with the Director of the Mines and Geosciences Bureau and the Undersecretary for
Operations of the Department as members thereof. The Board shall have the following powers and
functions:

a. To promulgate rules and regulations governing the hearing and disposition of cases
before it, as well as those pertaining to its internal functions, and such rules and regulations
as may be necessary to carry out its functions;

b. To administer oaths, summon the parties to a controversy, issue subpoenas requiring the
attendance and testimony of witnesses or the production of such books, papers, contracts,
records, statement of accounts, agreements, and other documents as may be material to a
just determination of the matter under investigation, and to testify in any investigation or
hearing conducted in pursuance of this Act;

c. To conduct hearings on all matters within its jurisdiction, proceed to hear and determine
the disputes in the absence of any party thereto who has been summoned or served with
notice to appear, conduct its proceedings or any part thereof in public or in private, adjourn
its hearings at any time and place, refer technical matters or accounts to an expert and to
accept his report as evidence after hearing of the parties upon due notice, direct parties to
be joined in or excluded from the proceedings, correct, amend, or waive any error, defect or
irregularity, whether in substance or in form, give all such directions as it may deem
necessary or expedient in the determination of the dispute before it, and dismiss the mining
dispute as part thereof, where it is trivial or where further proceedings by the Board are not
necessary or desirable:

1. To hold any person in contempt, directly or indirectly, and impose appropriate

penalties therefor; and

2. To enjoin any or all acts involving or arising from any case pending before it which,
if not restrained forthwith, may cause grave or irreparable damage to any of the
parties to the case or seriously affect social and economic stability.
In any proceeding before the Board, the rules of evidence prevailing in courts of law or equity shall
not be controlling and it is the spirit and intention of this Act that shall govern. The Board shall use
every and all reasonable means to ascertain the facts in each case speedily and objectively and
without regard to technicalities of law or procedure, all in the interest of due process. In any
proceeding before the Board, the parties may be represented by legal counsel. The findings of fact
of the Board shall be conclusive and binding on the parties and its decision or order shall be final
and executory.

A petition for review by certiorari and question of law may be filed by the aggrieved party with the
Supreme Court within thirty (30) days from receipt of the order or decision of the Board.

CHAPTER XIV
GOVERNMENT SHARE

Section 80
Government Share in Mineral Production Sharing Agreement

The total government share in a mineral production sharing agreement shall be the excise tax on
mineral products as provided in Republic Act No. 7729, amending Section 151(a) of the National
Internal Revenue Code, as amended.

Section 81
Government Share in Other Mineral Agreements

The share of the Government in co-production and joint-venture agreements shall be negotiated by
the Government and the contractor taking into consideration the:

a. capital investment of the project;

b. risks involved;

c. contribution of the project to the economy; and

d. other factors that will provide for a fair and equitable sharing between the Government and
the contractor.

The Government shall also be entitled to compensations for its other contributions which shall be
agreed upon by the parties, and shall consist, among other things, the contractor's income tax,
excise tax, special allowance, withholding tax due from the contractor's foreign stockholders arising
from dividend or interest payments to the said foreign stockholders, in case of a foreign national, and
all such other taxes, duties and fees as provided for under existing laws.

The Government share in financial or technical assistance agreement shall consist of, among other
things, the contractor's corporate income tax, excise tax, special allowance, withholding tax due from
the contractor's foreign stockholders arising from dividend or interest payments to the said foreign
stockholder in case of a foreign national and all such other taxes, duties and fees as provided for
under existing laws.
The collection of Government share in financial or technical assistance agreement shall commence
after the financial or technical assistance agreement contractor has fully recovered its pre-operating
expenses, exploration, and development expenditures, inclusive.

Section 82
Allocation of Government Share

The Government share as referred to in the preceding sections shall be shared and allocated in
accordance with Sections 290 and 292 of Republic Act No. 7160 otherwise known as the Local
Government Code of 1991. In case the development and utilization of mineral resources is
undertaken by a government-owned or -controlled corporation, the sharing and allocation shall be in
accordance with Sections 291 and 292 of the said Code.

CHAPTER XV
TAXES AND FEES

Section 83
Income Taxes

After the lapse of the income tax holiday as provided for in the Omnibus Investments Code, the
contractor shall be liable to pay income tax as provided in the National Internal Revenue Code, as
amended.

Section 84
Excise Tax on Mineral Products

The contractor shall be liable to pay the excise tax on mineral products as provided for under
Section 151 of the National Internal Revenue Code: Provided, however, That with respect to a
mineral production sharing agreement, the excise tax on mineral products shall be the government
share under said agreement.

Section 85
Mine Wastes and Tailings Fees

A semi-annual fee to be known as mine wastes and tailings fee is hereby imposed on all operating
mining companies in accordance with the implementing rules and regulations. The mine wastes and
tailings fee shall accrue to a reserve fund to be used exclusively for payment for damages to:

a. Lives and personal safety;

b. Lands, agricultural crops and forest products, marine life and aquatic resources, cultural
resources; and

c. Infrastructure and the revegetation and rehabilitation of silted farm lands and other areas
devoted to agriculture and fishing caused by mining pollution.

This is in addition to the suspension or closure of the activities of the contractor at any time and the
penal sanctions imposed upon the same.
The Secretary is authorized to increase mine wastes and tailings fees, when public interest so
requires, upon the recommendation of the Director.

Section 86
Occupation Fees

There shall be collected from any holder of a mineral agreement, financial or technical assistance
agreement or exploration permit on public or private lands, an annual occupation fee in accordance
with the following schedule:

a. For exploration permit - Five pesos (P5.00) per hectare or fraction thereof per annum;

b. For mineral agreements and financial or technical assistance agreements - Fifty pesos
(P50.00) per hectare or fraction thereof per annum; and

c. For mineral reservation - One hundred pesos (P100.00) per hectare or fraction thereof per
annum.

The Secretary is authorized to increase the occupation fees provided herein when the public interest
so requires, upon recommendation of the Bureau Director.

Section 87
Manner of Payment of Fees

The fees shall be paid on the date the mining agreement is registered with the appropriate office and
on the same date every year thereafter. It shall be paid to the treasurer of the municipality or city
where the onshore mining areas are located, or to the Director in case of offshore mining areas. For
this purpose, the appropriate officer shall submit to the treasurer of the municipality or city where the
onshore mining area is located, a complete list of all onshore mining rights registered with his office,
indicating therein the names of the holders, area in hectares, location, and date registered. If the fee
is not paid on the date specified, it shall be increased by twenty-five per centum (25%).

Section 88
Allocation of Occupation Fees

Thirty per centum (30%) of all occupational fees collected from holders of mining rights in onshore
mining areas shall accrue to the province and seventy per centum (70%) to the municipality in which
the onshore mining areas are located. In a chartered city, the full amount shall accrue to the city
concerned.

Section 89
Filing Fees and Other Charges

The Secretary is authorized to charge reasonable filing fees and other charges as he may prescribe
in accordance with the implementing rules and regulations.

CHAPTER XVI
INCENTIVES
 Section 90
Incentives

The contractors in mineral agreements, and financial or technical assistance agreements shall be
entitled to the applicable fiscal and non-fiscal incentives as provided for under Executive Order No.
226, otherwise known as the Omnibus Investments Code of 1987. Provided, That holders of
exploration permits may register with the Board of Investments and be entitled to the fiscal
incentives granted under the said Code for the duration of the permits or extensions thereof:
Provided, further, That mining activities shall always be included in the investment priorities plan.

Section 91
Incentives for Pollution Control Devices

Pollution control devices acquired, constructed or installed by contractors shall not be considered as
improvements on the land or building where they are placed, and shall not be subject to real
property and other taxes or assessments: Provided, however, That payment of mine wastes and
tailings fees is not exempted.

Section 92
Income Tax-Carry Forward of Losses

A net operating loss without the benefit of incentives incurred in any of the first ten (10) years of
operations may be carried over as a deduction from taxable income for the next five (5) years
immediately following the year of such loss. The entire amount of the loss shall be carried over to the
first of the five (5) taxable years following the loss, and any portion of such loss which exceeds the
taxable income of such first year shall be deducted in like manner from the taxable income of the
next remaining four (4) years.

Section 93
Income Tax-Accelerated Depreciation

Fixed assets may be depreciated as follows:

a. To the extent of not more than twice as fast as the normal rate of depreciation or
depreciated at normal rate of depreciation if the expected life is ten (10) years or less; or

b. Depreciated over any number of years between five (5) years and the expected life if the
latter is more than ten (10) years, and the depreciation thereon allowed as deduction from
taxable income: Provided, That the contractor notifies the Bureau of Internal Revenue at the
beginning of the depreciation period which depreciation rate allowed by this section will be
used.

In computing for taxable income, unless otherwise provided in this Act, the contractor may, at his
option, deduct exploration and development expenditures accumulated at cost as of the date of the
prospecting or exploration and development expenditures paid or incurred during the taxable year:
Provided, That the total amount deductible for exploration and development expenditures shall not
exceed twenty-five per centum (25%) of the net income from mining operations. The actual
exploration and development expenditures minus the twenty-five per centum (25%) net income from
mining shall be carried forward to the succeeding years until fully deducted.
Net income from mining operation is defined as gross income from operations less allowable
deductions which are necessary or related to mining operations. Allowable deductions shall include
mining, milling and marketing expenses, depreciation of properties directly used in the mining
operations. This paragraph shall not apply to expenditures for the acquisition or improvement of
property of a character which is subject to the allowances for depreciation.

Section 94
Investment Guarantees

The contractor shall be entitled to the basic rights and guarantees provided in the Constitution and
such other rights recognized by the government as enumerated hereunder:

a. Repatriation of investments. The right to repatriate the entire proceeds of the liquidation of
the foreign investment in the currency in which the investment was originally made and at the
exchange rate prevailing at the time of repatriation.

b. Remittance of earnings. The right to remit earnings from the investment in the currency in
which the foreign investment was originally made and at the exchange rate prevailing at the
time of remittance.

c. Foreign loans and contracts. The right to remit at the exchange rate prevailing at the time
of remittance such sums as may be necessary to meet the payments of interest and principal
on foreign loans and foreign obligations arising from financial or technical assistance
contracts.

d. Freedom from expropriation. The right to be free from expropriation by the Government of
the property represented by investments or loans, or of the property of the enterprise except
for public use or in the interest of national welfare or defense and upon payment of just
compensation. In such cases, foreign investors or enterprises shall have the right to remit
sums received as compensation for the expropriated property in the currency in which the
investment was originally made and at the exchange rate prevailing at the time of remittance.

e. Requisition of investment. The right to be free from requisition of the property represented
by the investment or of the property of the enterprises except in case of war or national
emergency and only for the duration thereof. Just compensation shall be determined and
paid either at the time or immediately after cessation of the state of war or national
emergency. Payments received as compensation for the requisitioned property may be
remitted in the currency in which the investments were originally made and at the exchange
rate prevailing at the time of remittance.

f. Confidentiality. Any confidential information supplied by the contractor pursuant to this Act
and its implementing rules and regulations shall be treated as such by the Department and
the Government, and during the term of the project to which it relates.

CHAPTER XVII
GROUND FOR CANCELLATION, REVOCATION, AND TERMINATION
 Section 95
Late or Non-filing of Requirements

Failure of the permittee or contractor to comply with any of the requirements provided in this Act or in
its implementing rules and regulations, without a valid reason, shall be sufficient ground for the
suspension of any permit or agreement provided under this Act.

Section 96
Violation of the Terms and Conditions of Permits or Agreements

Violation of the terms and conditions of the permits or agreements shall be a sufficient ground for
cancellation of the same.

Section 97
Non-Payment of Taxes and Fees

Failure to pay the taxes and fees due the Government for two (2) consecutive years shall cause the
cancellation of the exploration permit, mineral agreement, financial or technical assistance
agreement and other agreements and the re-opening of the area subject thereof to new applicants.

Section 98
Suspension or Cancellation of Tar Incentives and Credits

Failure to abide by the terms and conditions of tax incentive and credits shall cause the suspension
or cancellation of said incentives and credits.

Section 99
Falsehood or Omission of Facts in the Statement

All statements made in the exploration permit, mining agreement and financial or technical
assistance agreement shall be considered as conditions and essential parts thereof and any
falsehood in said statements or omission of facts therein which may alter, change or affect
substantially the facts set forth in said statements may cause the revocation and termination of the
exploration permit, mining agreement and financial or technical assistance agreement.

CHAPTER XVIII
ORGANIZATIONAL AND INSTITUTIONAL ARRANGEMENTS

Section 100
From Staff Bureau to Line Bureau

The Mines and Geosciences Bureau is hereby transformed into a line bureau consistent with Section
9 of this Act: Provided, That under the Mines and Geosciences Bureau shall be the necessary mines
regional, district and other pertinent offices - the number and specific functions of which shall be
provided in the implementing rules and regulations of this Act.
 CHAPTER XIX
PENAL PROVISIONS

Section 101
False Statements

Any person who knowingly presents any false application, declaration, or evidence to the
Government or publishes or causes to be published any prospectus or other information containing
any false statement relating to mines, mining operations or mineral agreements, financial or
technical assistance agreements and permits shall, upon conviction, be penalized by a fine of not
exceeding Ten thousand pesos (P10,000.00).

Section 102
Illegal Exploration

Any person undertaking exploration work without the necessary exploration permit shall, upon
conviction, be penalized by a fine of not exceeding Fifty thousand pesos (P50,000.00).

Section 103
Theft of Minerals

Any person extracting minerals and disposing the same without a mining agreement, lease, permit,
license, or steals minerals or ores or the products thereof from mines or mills or processing plants
shall, upon conviction, be imprisoned from six (6) months to six (6) years or pay a fine from Ten
thousand pesos (P10,000.00) to Twenty thousand pesos (P20,000.00) or both, at the discretion of
the appropriate court. In addition, he shall be liable to pay damages and compensation for the
minerals removed, extracted, and disposed of. In the case of associations, partnerships, or
corporations, the president and each of the directors thereof shall be responsible for the acts
committed by such association, corporation, or partnership.

Section 104
Destruction of Mining Structures

Any person who willfully destroys or damages structures in or on the mining area or on the mill sites
shall, upon conviction, be imprisoned for a period not to exceed five (5) years and shall, in addition,
pay compensation for the damages which may have been caused thereby.

Section 105
Mines Arson

Any person who willfully sets fire to any mineral stockpile, mine or workings, fittings or a mine, shall
be guilty of arson and shall be punished, upon conviction, by the appropriate court in accordance
with the provisions of the Revised Penal Code and shall, in addition, pay compensation for the
damages caused hereby.

Section 106
Willful Damage to a Mine

Any person who willfully damages a mine, unlawfully causes water to run into a mine, or obstructs
any shaft or passage to a mine, or renders useless, damages or destroys any machine, appliance,
apparatus, rope, chain, tackle, or any other things used in a mine, shall be punished, upon
conviction, by the appropriate court, by imprisonment not exceeding a period of five (5) years and
shall, in addition, pay compensation for the damages caused thereby.

Section 107
Illegal Obstruction to Permittees or Contractors

Any person who, without justifiable cause, prevents or obstructs the holder of any permit, agreement
or lease from undertaking his mining operations shall be punished, upon conviction by the
appropriate court, by a fine not exceeding Five thousand pesos (P5,000.00) or imprisonment not
exceeding one (1) year, or both, at the discretion of the court.

Section 108
Violation of the Terms and Conditions of the Environmental Compliance Certificate

Any person who willfully violates or grossly neglects to abide by the terms and conditions of the
environmental compliance certificate issued to said person and which causes environmental
damage through pollution shall suffer the penalty of imprisonment of six (6) months to six (6) years
or a fine of Fifty thousand pesos (P50,000.00) to Two hundred thousand pesos (P200,000.00), or
both, at the discretion of the court.

Section 109
Illegal Obstruction to Government Officials

Any person who illegally prevents or obstructs the Secretary, the Director or any of their
representatives in the performance of their duties under the provisions of this Act and of the
regulations promulgated hereunder shall be punished upon conviction, by the appropriate court, by a
fine not exceeding Five thousand pesos (P5,000.00) or by imprisonment not exceeding one (1) year,
or both, at the discretion of the court.

Section 110
Other Violations

Any other violation of this Act and its implementing rules and regulations shall constitute an offense
punishable with a fine not exceeding Five thousand pesos (P5,000.00).

Section 111
Fines

The Secretary is authorized to charge fines for late or non-submission of reports in accordance with
the implementing rules and regulations of this Act.

CHAPTER XX
TRANSITORY AND MISCELLANEOUS PROVISIONS

Section 112
Non-Impairment of Existing Mining/Quarrying Rights
All valid and existing mining lease contracts, permits/licenses, leases pending renewal, mineral
production-sharing agreements granted under Executive Order No. 279, at the date of effectivity of
this Act, shall remain valid, shall not be impaired, and shall be recognized by the Government:
Provided, That the provisions of Chapter XIV on government share in mineral production-sharing
agreement and of Chapter XVI on incentives of this Act shall immediately govern and apply to a
mining lessee or contractor unless the mining lessee or contractor indicates his intention to the
secretary, in writing, not to avail of said provisions: Provided, further, That no renewal of mining
lease contracts shall be made after the expiration of its term: Provided, finally, That such leases,
production-sharing agreements, financial or technical assistance agreements shall comply with the
applicable provisions of this Act and its implementing rules and regulations.

Section 113
Recognition of Valid and Existing Mining Claims and Lease/Quarry Applications

Holders of valid and existing mining claims, lease/quarry applications shall be given preferential
rights to enter into any mode of mineral agreement with the government within two (2) years from the
promulgation of the rules and regulations implementing this Act.

Section 114
Separability Clause

If any of the provision of this Act is held or declared to be unconstitutional or invalid by a competent
court, the other provisions hereof shall continue to be in force as if the provision so annulled or
voided had never been incorporated in this Act.

Section 115

REPUBLIC ACT No. 4850 July 18, 1966

AN ACT CREATING THE LAGUNA LAKE DEVELOPMENT AUTHORITY, PRESCRIBING ITS

POWERS, FUNCTIONS AND DUTIES, PROVIDING FUNDS THEREFOR, AND FOR OTHER
PURPOSES.

CHAPTER I

DECLARATION OF POLICY AND CREATION OF AUTHORITY

Section 1. Declaration of Policy. It is hereby declared to be the national policy to promote, and
accelerate the development and balanced growth of the Laguna Lake area and the surrounding
provinces, cities and towns hereinafter referred to as the region, within the context of the national
and regional plans and policies for social and economic development and to carry out the
development of the Laguna Lake region with due regard and adequate provisions for environmental
management and control, preservation of the quality of human life and ecological systems, and the
prevention of undue ecological disturbances, deterioration and pollution.

Section 2. Laguna Lake Development Authority created. For the purpose of carrying out and
effecting the declared policy, as provided for in Section one hereof, there is hereby created a body
corporate to be known as the Laguna Lake Development Authority, hereinafter referred to as the
Authority, which shall be organized within one hundred twenty (120) days after the approval of this
Act. 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. This Act may be known as the Laguna Lake Development Authority Act of
1966.

Section 3. Location of principal office. The Authority shall maintain its principal office at a convenient
place within the region, but it may have branch offices in such other places as are necessary for the
proper conduct of its business.

Section 4. Special Powers and Functions. The Authority shall exercise perform the following powers
and functions:

(a) To make a comprehensive survey of the physical and natural resources and potentialities
of the Laguna Lake 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 region particularly Laguna de Bay to promote the region's
rapid social and economic development and upon approval by the National Economic and
Development Authority (NEDA) Board of such plan, to implement the same including projects
in line with said plan: Provided, That implementation of all fisheries plans and programs of
the authority shall require prior consensus of the Bureau of Fisheries and Aquatic Resources
to ensure that such plans and programs are consistent with the national fisheries plans and
programs. For the purpose of said survey, public agencies shall submit and private entities
shall provide necessary data except such data which under existing laws are deemed
inviolable.

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

(c) To make recommendation to the proper agencies on the peso or dollar financing,
technical support, physical assistance and, generally, the level of priority to be accorded
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/agencies within the region, public corporations, and private persons
or enterprises where such plans, programs and/or projects are related to those of the
Authority for the development of the region as envisioned in this Act. The Authority shall
issue the necessary clearance for approved proposed plans, programs, and projects within
thirty days from submission thereof unless the proposals are not in consonance with those of
the Authority or that those will contribute to the unmanageable pollution of the Laguna Lake
waters or will bring about the ecological imbalance of the region: Provided, further, That the
Authority is hereby empowered to institute necessary legal proceeding against any person
who shall commence to implement or continue implementation of any project, plan or
program within the Laguna de Bay region without previous clearance from the
Authority: Provided, furthermore, That any local government office, agency, public
corporation, private person, or enterprise whose plans, programs and/or projects 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 and/or
projects: Provided, finally, The expansion plans shall be considered as new plans subject to
review of the Authority and to payment of the processing fees.

The Authority and national and local government offices, agencies and public corporations
shall coordinate their plans, programs, projects and licensing procedures with respect to the
Laguna Lake region for the purpose of drawing up a Laguna Lake development plan which
shall be binding upon all parties concerned upon approval of the NEDA board.

(e) To engage in agriculture, industry, commerce, or other activities within the region which
may be necessary or directly contributory to the socio-economic development of the region,
and, for this purposes, whether by itself or in cooperation 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 or
private 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, waste water and sewerage works, water supply, roads, portworks, irrigation,
housing and related works, when so required within the context of its development plans and
programs including the readjustment, relocation or settlement of population within the region
as may be 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 its Board of Directors subject to the approval of the NEDA Board
from users and/or beneficiaries thereof to recover costs of construction, operation and
maintenance of the 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 Board: Provided, finally, That such amount as may be
necessary for the purpose is hereby authorized to be appropriated out of the funds of the
National Treasury not otherwise appropriated.

(g) To make an annual report to the stockholders regarding the operation of the Authority
more particularly a statement of its financial conditions, activities undertaken, progress of
projects and programs and plans of actions for the incoming years: Provided, however, That
a majority of the stockholders may require the Authority to submit report or reports other than
the annual report herein required, which report must be submitted within a period of thirty
(30) days from notice thereof;

(h) To lend or facilitate the extension of financial assistance and/or act as surety or guarantor
to worthwhile agricultural, industrial and commercial enterprises;

(i) To reclaim or cause to the reclaimed portions of the Lake or undertake reclamation
projects and/or acquire such bodies of land from the lake which may be necessary to
accomplish the aims and purposes of the Authority subject to the approval of the NEDA
Board: Provided, That the land so reclaimed shall be the property of the Authority and title
thereto shall be vested in the Authority: Provided, further, That the resulting lake shore shall
continue to be owned by the national government.
(j) The provisions of existing laws to the contrary notwithstanding, to engage in fish
production and other aqua-culture projects in Laguna de Bay and other bodies of water
within its jurisdiction and in pursuance thereof to conduct studies and make experiments,
whenever necessary, with the collaboration and assistance of the Bureau of Fisheries and
Aquatic Resources, with the end in view of improving present techniques and
practice. Provided, That until modified, altered or amended by the procedure provided in the
following sub-paragraph, the present laws, rules and permits or authorizations remain in
force;

(k) For the purpose of effectively regulating and monitoring activities in Laguna de Bay, the
Authority shall have exclusive jurisdiction to issue new permit for the use of the lake waters
for any projects or activities in or affecting the said lake including navigation, construction,
and operation of fishpens, fish enclosures, fish corrals and the like, and to impose necessary
safeguards for lake quality control and management and to collect necessary fees for said
activities and projects: Provided, That the fees collected for fisheries may be shared between
the Authority and other government agencies and political sub-divisions in such proportion
as may be determined by the President of the Philippine upon recommendation of the
Authority's Board: Provided, further, That the Authority's Board may determine new areas of
fisheries development or activities which it may place under the supervision of the Bureau of
Fisheries and Aquatic taking into account the overall development plans and programs for
Laguna de Bay and related bodies of water: Provided, finally, That the Authority shall subject
to the approval of the President of the Philippines promulgate such rules and regulations
which shall govern fisheries development activities in Laguna de Bay which shall take into
consideration among others the following: socioeconomic amelioration of bonafide resident
fisherman whether individually or collectively in the form of cooperatives, lakeshore town
development, a master plan for fishpen construction and operation, communal fishing ground
for lakeshore town residents, and preference to lakeshore town residents in hiring laborers
for fishery projects.

(l) To require the cities and municipalities embraced within the 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.

(m) The provisions of existing laws to the contrary notwithstanding, to exercise water rights
over public waters within the Laguna de Bay region whenever necessary to carry out the
Authority's projects;

(n) To act in coordination with existing governmental agencies in establishing water quality
standards for industrial, agricultural and municipal waste discharges into the lake and to
cooperate with said existing agencies of the government of the Philippines in enforcing such
standards, or to separately pursue enforcement and penalty actions as provided for in
Section 4(d) and Section 39-A of this Act: Provided, That in case of conflict on the
appropriate water quality standard to be enforced such conflict shall be resolved thru the
NEDA Board;

(o) To develop water supply from ground and/or lake water resources for municipal,
agricultural and industrial usages, in coordination with the National Water Resources Council
created by Presidential Decree No. 424 dated March 28, 1974 or its successors in interests,
and to enter into agreements with municipalities, governmental agencies and corporations
and the private sector to supply, distribute and market such water;
 (p) Undertake studies on the improvement and maintenance of the desirable lake water
quality of Laguna de Bay, and in pursuance thereof, prepare a water quality management
program on a continuing basis, 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 water quality management.

Section 4-A. Compensation for damages to the water and aquatic resources of Laguna de Bay and
its tributaries resulting from failure to meet established water and effluent quality standards or from
such other wrongful act or omission of a person, private or public, juridical or otherwise, punishable
under the law shall be awarded to the Authority to be earmarked for water quality control and
management.

Section 4-B. The Authority is hereby empowered to collect annual fees as provided for in Sec. 4-J
herein, for the use of the lake waters and its tributaries for all beneficial purposes including
recreation, municipal, industrial, agricultural, fisheries, navigation and waste disposal purposes. All
the fees so collected shall be used for the management and development of the lake 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 III

CORPORATE POWERS

Section 5. The 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;

d) To adopt, amend, and repeals 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 and/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 this Authority under this Act;

i) To purchase, hold, alienate, mortgage, pledge or otherwise dispose of the shares of the
capital stock of, or any bond, securities, or other evidence of indebtedness created by any
 other corporation, co-partnership, or government agencies or instrumentalities; and while the
owner of said stock to exercise all the rights or 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) For carrying 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.

k) To issue such rules and regulations as may be necessary to effectively carry out the
powers and purposes herein 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 6. Capitalization and Financing. The Authority shall have an authorized capital of One
Hundred Million Pesos (P100,000,000) of which the amount of Fifty-One Million Pesos
(P51,000,000) shall be subscribed by the national government and Forty-Nine Million Pesos
(P49,000,000) shall be subscribed by cities, provinces, municipalities, government corporations and
private investors; Provided, That at least twenty-five percent of the national government's
subscription shall be fully paid: Provided, further, That the authorized capital stock may be increased
upon the recommendation of NEDA.

The authorized capital stock of One Hundred Million pesos (P100M) shall be divided into One Million
(1,000,000) Shares of stock with a par value of One hundred Pesos (P100) per share.

The shares of stock of the Authority shall be divided into (1) 700,000 common shares (voting) and
(2) 300,000 preferred shares (non-voting) with such fixed rates of return as shall be determined by
the Board. Of the common shares of 700,000 a minimum of 400,000 shares shall be subscribed by
the national government and at least sixty per cent of the balance shall be subscribed by the
Provinces of Laguna and Rizal in such proportion as may be agreed upon by both provincial
governments in accordance with their respective capacities. The remaining balance of the common
shares shall be open for subscription to cities, provinces, municipalities and private investors.

Of the preferred shares of stock of 300,000 a minimum of 110,000 shares shall be subscribed by the
national government. The balance of the preferred shares shall be available for subscription to cities,
provinces, municipalities, government corporations, and private investors; Provided, however, That
preferred shares shall enjoy preference with respect to distribution of dividends and assets in case of
dissolution.

Section 7. Powers of Municipal Corporations to Subscribe. For purposes of attaining the purposes

of this Authority, municipalities, cities and provinces are hereby authorized to subscribe, own, buy
and hold shares of stock of this Authority.

Section 8. Operating Expenses. For the operating expenses of the Authority, the sum of One Million
Pesos (P1,000,000) 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 Decree.

The Board of Directors may appropriate out of the funds of the Authority such as may be needed or
necessary for its operating expenses.
Section 9. Power to Incur Debts and to Issue Bonds. Whenever the Board of Directors may deem it
necessary for the Authority to incur an indebtedness or to issue bonds to carry out the provisions of
this Act, it shall by resolution so declare and state the purpose for which the proposed debt is to be
incurred. The resolution shall be confirmed by the affirmative vote of the stockholders representing a
majority of the subscribed capital stock outstanding and entitled to vote.

The Authority shall submit to the NEDA Board and the Monetary Board of the Central Bank for
approval its proposal to incur indebtedness or to issue bonds, This shall be considered authorized
upon approval of the President of the Philippines.

Section 10. Bond Limit. The bonds shall be issued in such amounts as will be needed at any one
time, taking into account the rate at which said bonds may be absorbed by the buying public and the
fund requirements of projects ready for execution, and considering further a proper balanced
productive and non-productive projects so that inflation shall be held to the minimum.

Section 11. Form, rates of interest, etc. of bonds. The Board of Directors, shall prescribe the form,
the rates of interest, the denominations, maturities, negotiability, convertibility, call and redemption
features, and all other terms and conditions of issuance, placement, sale, servicing, redemption, and
payment of all bonds issued by the Authority under this Act.

The bonds issued by virtue of this Act may be made payable both as to principal and interest in
Philippine currency or any readily convertible foreign currency; Said bonds shall be receivable as
security in any transaction with the government in which such security is required.

Section 12. Exemption from tax. The Authority shall be exempt from all taxes, licenses, fees, and
duties, incidental to its operations. This exemption shall extend to its subsidiary
corporation: Provided, That its subsidiary corporations shall be subject to all said taxes, licenses,
fees, and duties five (5) years after their establishment under a graduated scale as follows: twenty
(20) per centum of all said taxes during the sixth year, forty (40) per centum of all said taxes during
the seventh year, sixty (60) per centum of all said taxes during the eighth year, eighty (80) per
centum of all said taxes during the ninth year, and one hundred (100) per centum of all taxes during
the tenth year, after said establishment. Such examination shall include any tax or fee imposed by
the government on the sale, purchase or transfer of foreign exchange. All notes, bonds, debentures
and other obligations issued by the Authority shall be exempt from all taxes both as to principal and
interest, except inheritance and gift taxes.

Section 13. Sinking Fund. A sinking fund shall be established in such manner that the total annual
contribution thereto accrued at such rate of interest as may be determined by the Board of Directors
as confirmed by the stockholders representing a majority of the subscribed capital stock outstanding
and entitled to vote, shall be sufficient to redeem at maturity the bonds issued under this Act.

Such funds shall be under the custody of the treasurer of the Authority who shall invest the same in
such manner as the Board of Directors may direct; charge all expenses of investment to said sinking
fund, and credit the same with the interest on investment and other income belonging to it.

Section 14. 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
Philippine 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.

CHAPTER V

MANAGEMENT AND PERSONNEL

Section 15. Incorporation. The members of the first Board of Directors shall be elected by the
stockholders and the incorporation shall be held to have been effected from the date of the first
meeting of such Board.

Section 16. Board of Directors: Composition. The corporate powers shall be vested in and exercised
by a Board of Directors, hereinafter referred to as the Board, which shall be composed of eight (8)
members, to wit: the Executive Secretary, the Secretary of Economic Planning, the Secretary of
Natural Resources, the Secretary of Industry, a representative of Laguna Province, who shall be
designated by the Provincial Board of Laguna; a representative of Rizal Province to be designated
by its Provincial Board; the General Manager of the Authority to be appointed by the President of the
Philippines, and a representative of the private investors, likewise to be appointed by the President
of the Philippines from among a list of recommendees to be submitted by the private
investors: Provided, That the incumbent representative of the private investors: shall continue as
member until the President appoints his successor. The Board of Directors shall elect annually from
among their members a Chairman and a Vice Chairman. There shall be a Corporate Secretary who
shall be appointed the Board.

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

Section 17. Acting Chairman. In case of vacancy in the position of Chairman, or in the absence of or
temporary incapacity of the Chairman, the Vice-Chairman shall act as such until a new Chairman is
duly elected by the Board.

Section 18. (This provision were repealed by PD 813, Section 19, promulgated on October 17,
1975.)

Section 19. (This provision were repealed by PD 813, Section 19, promulgated on October 17,
1975.)

Section 20. Effect of vacancies; quorum. Vacancies in the Board as long as there shall be four
members in office, shall not impair the powers of the Board to execute the functions of the Authority.
The affirmative vote of four (4) members of the Board shall be necessary at all times to pass or
approve any act or resolution.

Section 21. Qualifications of Directors. All members of the Board shall be citizens and residents of
the Philippines. They shall have demonstrated executive competence and experience in the field of
public administration, economic planning, resource management, or in the establishment and
management of large agricultural, industrial or commercial enterprises. No person shall be
nominated as member of the Board unless he be of unquestioned integrity and competence.
Section 22. Prohibition against "Conflict of Interest." No person member of the Board shall be
financially interested, directly or indirectly, in any contract entered into by the Authority or in any
special privileges granted by the Authority during his term of office. All contracts entered into in
violation of this provision shall automatically be null and void. Any member of the Board found
violating the provisions of this section by two-thirds (2/3) vote of the Board shall automatically be
disqualified from serving his unexpired term, and he shall furthermore be perpetually disqualified for
membership in the said Board.

Section 23. Removal, courtesy resignation. A member of the Board may be removed from office by
a vote of the stockholders holding or representing three-fourths (3/4) of the subscribed capital stock
outstanding and entitled to vote. No member of the Board shall be required to submit a courtesy
resignation at any time during his term of office.

Section 24. Board Meetings. The Board shall meet at least once a month. The Board shall be
convoked by the Chairman or upon written request signed by a majority of the members.

Section 25. Per Diems and Allowances. The members of the Board shall receive for every meeting
attended a per diem to be determined by the Board: Provided, That in no case will the total amount
received by each exceed the sum of One Thousand Pesos (P1,000.00) for any one month. Members
of the Board shall be entitled to commutable transportation and representation allowances in the
performance of official functions for the Authority as authorized by the Board the aggregate amount
of which shall not exceed One Thousand Pesos (P1,000.00) for any one month.

Section 25-A. Powers and Functions of the Board of Directors.

a. To formulate, prescribe, amend and repeal rules and regulations to govern the conduct of
business of the Authority;

b. To appoint and fix the compensation of all officials from division heads and above, and
others of comparable rank including the Assistant General Manager upon the
recommendation 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;

d. To approve the annual and/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.

Section 26. Powers and Functions of the General Manager. The General Manager shall be the chief
executive of the Authority.  As such, he shall have the following powers and duties:
1awp++i1

a. Submit for consideration of the Board the policies and measures which he believes to be
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 of his administrative responsibilities to other officers
of the Authority subject to the rules and regulations of the Board.
 d. Appoint officials and employees below the rank of division heads to positions in the
approved budget upon written recommendation of the division head concerned using as
guide the standard set forth in the Authority's merit system;

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

f. Submit to the NEDA 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.

Section 27. (This provision were repealed by PD 813, Section 18, promulgated on October 17,
1975.)

Section 28. (This provision were repealed by PD 813, Section 19, promulgated on October 17,
1975.)

Section 29. Compensation. The General Manager shall receive a compensation of at least Thirty-

Six Thousand Pesos (P36,000.00) per annum which shall be charged against the annual
appropriation of the Authority for operating expenses. The Board of Directors may provide per diems
and allowances for the General Manager.

Section 30. Residence. The General Manager shall establish his residence within the region. The
General Manager shall not, during his term of office, engage in any business or profession or calling
other than those connected in the performance of his official duties as General Manager of the
Authority.

Section 31. Activities of the Authority: Key Officials. In carrying out the activities of the Authority, the
General Manager shall be assisted by an Assistant General Manager who shall have such powers,
duties, and functions that may be delegated to him by the General Manager, and shall act as
General Manager in the absence of or during the temporary incapacity of and/or until such time as a
new General Manager is duly appointed.

The Authority shall have the following divisions under the direct supervision and control of the
General Manager;

a. An Administrative Division which shall be responsible for providing services relating to

personnel, training, information, records, supplies general services, equipment and security;

b. A legal Division, to be headed by a Legal Counsel who shall represent the Authority in
legal actions and proceedings. This division shall be responsible for providing staff advice
and assistance on legal matters;

c. A Finance Division which shall be responsible for providing staff advice and assistance on
budgetary and financial matters, and safekeeping of corporate assets;

d. A Project Management Division which shall be responsible for the operation of approved
projects, project evaluation and management improvement matters;

e. A Planning and Project development Division which shall be responsible for providing
services relating to planning, programming, statistics and project development; and
 f. An Engineering and Construction Division which shall be responsible for providing services
relating to detailed engineering plans and the construction and maintenance of project
facilities.

The business and activities of each of these divisions shall be directed by an officer to be known as
its division head.

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

Section 32. Merit and Compensation System. All officials, agents and employees of the Authority
shall be selected and appointed on the basis of merit and fitness in accordance with a
comprehensive and progressive merit system to be established by the Authority. The recruitment,
transfer, promotion and dismissal of all personnel of the authority, including temporary workers, shall
be governed by such merit system: Provided, That the regular professional and technical personnel
of the Authority shall be exempt from the coverage of the classification and compensation plans of
the WAPCO and Civil Service rules and regulations: Provided, however, That such personnel shall
be permanent instates and shall be entitled to the benefits and privileges normally accorded to
government employees, such as retirement, GSIS insurance, leave and similar matters: Provided,
further, That the Director General of the NEDA shall review and recommend the approval of the
staffing pattern for professional and technical personnel of the Authority including modifications
thereof as may be necessary for five years from the date of approval of this Decree.

Section 33. (This provision were repealed by PD 813, Section 23, promulgated on October 17,
1975.)

Section 34. (This provision were repealed by PD 813, Section 24, promulgated on October 17,
1975.)

Section 34-A. Supervision by the NEDA. The Authority shall be directly under the NEDA for policy
and program integration.

Section 34-B. Submission of Financial Statement to NEDA. The Authority shall submit audited

financial statements to NEDA within 60 days after the close of the fiscal year, and it shall continue to
operate on the basis of not more than the preceding year's budget until the said financial statements
shall have been submitted.

Section 34-C. Management Audit by the NEDA. The NEDA, may, at its own instance, initiate a
management audit of the Authority when there is a reasonable ground to believe that the affairs of
the Authority have been mismanaged. Should such audit indicate mismanagement, the NEDA shall
take such appropriate measures as may be required by circumstances.

Section 35. Minimum Wage. All contracts entered into by the Authority which require the
employment of persons shall contain provision that not less than the minimum wage fixed by law
shall be paid to such persons so employed.

Section 36. Plans to be formulated within one year. Upon its organization, the Board of Directors
shall formulate and report to the stockholders with the utmost expeditious manner, but in no case
longer than one year, its plans and recommendations for the accelerated and balanced development
of the region in accordance with the aims and purposes of this Act.
Section 37. Supplies and services other than personnel. All purchases of supplies or contracts for
services, except for personnel services, entered into by the Authority shall be done only after the
proper bidding is held. Bidding shall not be required when: (1) the amount involved is five thousand
pesos (P5,000.00) or less; (2) an emergency, as certified to by the General Manager, requires
immediate delivery of the supplies or performance of the services: Provided, That in comparing bids
and making awards, the Authority shall consider such factors as the cost and relative quality and
adaptability of supplies or services; the bidders' financial responsibility, skill, experience, integrity,
and ability to furnish repairs and maintenance services; the time of delivery or performance offered;
and the compliance with the specifications desired.

Section 38. Auditing. The Board of Directors shall provide and appoint an auditor who shall
formulate an auditing system for the Authority. The auditor shall make a semestral and/or annual
report covering the financial conditions and operation of the Authority to the Board. These auditing
reports shall contain a statement of the resources and liabilities, including earnings and expenses,
the amount of paid-up capital stock, surplus, reserves, and profits, as well as losses, bad debts and
such other facts which, under auditing rules and regulations, are considered necessary to accurately
described the financial conditions and operation of the Authority. The auditor shall report and directly
responsible to the Board.

Section 39.

Section 39-A. Penal and Civil Liability Clause. Any person, natural or juridical, who shall
violate any of the provisions of this Act or any rules or regulation promulgated by the
Authority pursuant thereto shall be liable to imprisonment of not exceeding three years or to
a fine not exceeding Five Thousand Pesos or both at the discretion of the Court.

If the violator be a corporation, partnership or association, the officer or officers of the

organization concerned shall be liable therefor.

The authority is hereby authorized to pursue separate civil actions for damages resulting
from infractions of the provisions of this Act, rules or regulations issued pursuant thereto
and/or conditions embodied in the clearances or permits issued by the Authority.

Section 40. Separability Clause. The provisions of this Act are hereby declared to be

separable, and in the event any one or more such provisions are held unconstitutional, they
shall not affect the validity of other provisions.

Section 40-A. Transitory Provision. When the Regional Development Council for the region
becomes operational, the socio-economic planning functions as envisioned under this
Charter shall be assumed by the aforementioned Regional Development Council in
accordance with the provisions of the Integrated Reorganization Plan, as amended. All
incumbent officials and employees shall continue in office and those qualified shall have
preference in filling up new positions that may be created as consequence of this Decree.

Section 41. Definition of Terms.

1) Act Whenever used in this Act, shall refer to the enabling Act creating the Laguna
Lake Development Authority;

2) Authority Whenever cited in this Act shall mean the Laguna Lake Development
Authority;
 3) Board The word Board shall always refer to the Board of Directors of the Laguna
Lake Development Authority;

4) Region The word Region in this connection mean the Laguna Lake area proper
comprising the provinces of Rizal and Laguna and the cities of San Pablo, Manila,
Pasay, Quezon and Caloocan;

5) Government instrumentalities or agencies or entities. Whenever used in this Act

shall means instruments of the national or local governments vested with powers to
accomplish a definite government aim or purpose;

6) Municipal Corporation. Whenever used in this Act shall mean one that is organized
for political purposes with political powers exercised for the good of the public,
subject to legislative control and with officers of the government as its members to
administer or discharge public duties;

7) Government Corporation. Whenever used shall refer to corporations engaged in

performing functions impressed with public interest;

8) Investor With regards to this Act, investors shall include public and private
investors whether foreign or local;

9) External Auditor. Shall mean a firm or a person hired outside the Authority or
agency to audit the books of accounts of another corporation or agency; examine
financial records, prepare audit reports on findings in the operation of the agency;
review the statement on the performance report of the Authority.

10) Subsidiary Corporation. A corporation that is organized or a corporation already in

existence wherein at least fifty-one per cent of its shares of stock are owned or
controlled by the organizing or subscribing Authority, in this case, the Laguna Lake
Development Authority, to carry out or accomplish its purposes.

11) Laguna Lake or Lake. Whenever Laguna Lake or lake is used in this Act, the same
shall refer to Laguna de Bay which is that area covered by the lake water when it is at
the average annual maximum lake level of elevation 12.50 meters, as referred to a
datum 10.00 meters below mean lower low water (M.L.L.W.). Lands located at and
below such elevation are public lands which form part of the bed of said lake.

Section 42. Laws repealed. All Acts, charters, executive orders, administrative orders,

proclamations, rules and regulations, or parts thereof in conflict with this Act are hereby
repealed or modified accordingly.

Section 43. Effectivity. This Act shall take effect upon its approval.

Republic Act No. 8371             October 29, 1997

AN ACT TO RECOGNIZE, PROTECT AND PROMOTE THE RIGHTS OF INDIGENOUS

CULTURAL COMMUNITIES/INDIGENOUS PEOPLE, CREATING A NATIONAL COMMISSION OF
INDIGENOUS PEOPLE, ESTABLISHING IMPLEMENTING MECHANISMS, APPROPRIATING
FUNDS THEREFOR, AND FOR OTHER PURPOSES
 Be it enacted by the Senate and House of Representatives of the Philippines in Congress
assembled:

CHAPTER I
GENERAL PROVISIONS

Section 1. Short Title. - This Act shall be known as "The Indigenous Peoples Rights Act of
1997."

Section 2. Declaration of State Policies. - The State shall recognize and promote all the rights of
Indigenous Cultural Communities/Indigenous Peoples (ICCs/IPs) hereunder enumerated within the
framework of the Constitution:

a) The State shall recognize and promote the rights of ICCs/IPs within the framework of
national unity and development;

b)The State shall protect the rights of ICCs/IPs to their ancestral domains to ensure their
economic, social and cultural well being and shall recognize the applicability of customary
laws governing property rights or relations in determining the ownership and extent of
ancestral domain;

c) The State shall recognize, respect and protect the rights of ICCs/IPs to preserve and
develop their cultures, traditions and institutions. It shall consider these rights in the
formulation of national laws and policies;

d) The State shall guarantee that members of the ICCs/IPs regardless of sex, shall equally
enjoy the full measure of human rights and freedoms without distinctions or discriminations;

e) The State shall take measures, with the participation of the ICCs/IPs concerned, to protect
their rights and guarantee respect for their cultural integrity, and to ensure that members of
the ICCs/IPs benefit on an equal footing from the rights and opportunities which national
laws and regulations grant to other members of the population and

f) The State recognizes its obligations to respond to the strong expression of the ICCs/IPs for
cultural integrity by assuring maximum ICC/IP participation in the direction of education,
health, as well as other services of ICCs/IPs, in order to render such services more
responsive to the needs and desires of these communities.

Towards these ends, the State shall institute and establish the necessary mechanisms to enforce
and guarantee the realization of these rights, taking into consideration their customs, traditions,
values, beliefs, their rights to their ancestral domains.

CHAPTER II
DEFINITION OF TERMS

Section 3. Definition of Terms. - For purposes of this Act, the following terms shall mean:

a) Ancestral Domains - Subject to Section 56 hereof, refer to all areas generally belonging to
ICCs/IPs comprising lands,inland waters, coastal areas, and natural resources therein, held
under a claim of ownership, occupied or possessed by ICCs/IPs, themselves or through their
ancestors, communally or individually since time immemorial, continuously to the present
except when interrupted by war, force majeure or displacement by force, deceit, stealth or as
a consequence of government projects or any other voluntary dealings entered into by
government and private individuals, corporations, and which are necessary to ensure their
economic, social and cultural welfare. It shall include ancestral land, forests, pasture,
residential, agricultural, and other lands individually owned whether alienable and disposable
or otherwise, hunting grounds, burial grounds, worship areas, bodies of water, mineral and
other natural resources, and lands which may no longer be exclusively occupied by ICCs/IPs
but from which their traditionally had access to for their subsistence and traditional activities,
particularly the home ranges of ICCs/IPs who are still nomadic and/or shifting cultivators;

b) Ancestral Lands - Subject to Section 56 hereof, refers to land occupied, possessed and
utilized by individuals, families and clans who are members of the ICCs/IPs since time
immemorial, by themselves or through their predecessors-in-interest, under claims of
individual or traditional group ownership,continuously, to the present except when interrupted
by war, force majeure or displacement by force, deceit, stealth, or as a consequence of
government projects and other voluntary dealings entered into by government and private
individuals/corporations, including, but not limited to, residential lots, rice terraces or paddies,
private forests, swidden farms and tree lots;

c) Certificate of Ancestral Domain Title - refers to a title formally recognizing the rights of
possession and ownership of ICCs/IPs over their ancestral domains identified and delineated
in accordance with this law;

d) Certificate of Ancestral Lands Title - refers to a title formally recognizing the rights of
ICCs/IPs over their ancestral lands;

e) Communal Claims - refer to claims on land, resources and rights thereon, belonging to the
whole community within a defined territory

f) Customary Laws - refer to a body of written and/or unwritten rules, usages, customs and
practices traditionally and continually recognized, accepted and observed by respective
ICCs/IPs;

g) Free and Prior Informed Consent - as used in this Act shall mean the consensus of all
members of the ICCs/IPs to; be determined in accordance with their respective customary
laws and practices, free from any external manipulation, interference and coercion, and
obtained after fully disclosing the intent and scope of the activity, in a language an process
understandable to the community;

h) Indigenous Cultural Communities/Indigenous Peoples - refer to a group of people or

homogenous societies identified by self-ascription and ascription by other, who have
continuously lived as organized community on communally bounded and defined territory,
and who have, under claims of ownership since time immemorial, occupied, possessed
customs, tradition and other distinctive cultural traits, or who have, through resistance to
political, social and cultural inroads of colonization, non-indigenous religions and culture,
became historically differentiated from the majority of Filipinos. ICCs/IPs shall likewise
include peoples who are regarded as indigenous on account of their descent from the
populations which inhabited the country, at the time of conquest or colonization, or at the
time of inroads of non-indigenous religions and cultures, or the establishment of present
state boundaries, who retain some or all of their own social, economic, cultural and political
institutions, but who may have been displaced from their traditional domains or who may
have resettled outside their ancestral domains;
 i) Indigenous Political Structure - refer to organizational and cultural leadership systems,
institutions, relationships, patterns and processed for decision-making and participation,
identified by ICCs/IPs such as, but not limited to, Council of Elders, Council of Timuays,
Bodong Holder, or any other tribunal or body of similar nature;

j) Individual Claims - refer to claims on land and rights thereon which have been devolved to
individuals, families and clans including, but not limited to, residential lots, rice terraces or
paddies and tree lots;

k) National Commission on Indigenous Peoples (NCIP) - refers to the office created under
this Act, which shall be under the Office of the President, and which shall be the primary
government agency responsible for the formulation and implementation of policies, plans
and programs to recognize, protect and promote the rights of ICCs/IPs;

l) Native Title - refers to pre-conquest rights to lands and domains which, as far back as
memory reaches, have been held under a claim of private ownership by ICCs/IPs, have
never been public lands and are thus indisputably presumed to have been held that way
since before the Spanish Conquest;

m) Nongovernment Organization - refers to a private, nonprofit voluntary organization that

has been organized primarily for the delivery of various services to the ICCs/IPs and has an
established track record for effectiveness and acceptability in the community where it serves;

n) People's Organization - refers to a private, nonprofit voluntary organization of members of

an ICC/IP which is accepted as representative of such ICCs/IPs;

o) Sustainable Traditional Resource Rights - refer to the rights of ICCs/IPs to sustainably

use,manage, protect and conserve a) land, air, water, and minerals; b) plants, animals and
other organisms; c) collecting, fishing and hunting grounds; d) sacred sites; and e) other
areas of economic, ceremonial and aesthetic value in accordance with their indigenous
knowledge, beliefs, systems and practices; and

p) Time Immemorial - refers to a period of time when as far back as memory can go, certain
ICCs/IPs are known to have occupied, possessed in the concept of owner, and utilized a
defined territory devolved to them, by operation of customary law or inherited from their
ancestors, in accordance with their customs and traditions.

CHAPTER III
RIGHTS TO ANCESTRAL DOMAINS

Section 4. Concept of Ancestral Lands/Domains. - Ancestral lands/domains shall include such

concepts of territories which cover not only the physical environment but the total environment
including the spiritual and cultural bonds to the area which the ICCs/IPs possess, occupy and use
and to which they have claims of ownership.

Section 5. Indigenous Concept of Ownership. - Indigenous concept of ownership sustains the

view that ancestral domains and all resources found therein shall serve as the material bases of their
cultural integrity. The indigenous concept of ownership generally holds that ancestral domains are
the ICC's/IP's private but community property which belongs to all generations and therefore cannot
be sold, disposed or destroyed. It likewise covers sustainable traditional resource rights.
Section 6. Composition of Ancestral Lands/Domains. - Ancestral lands and domains shall
consist of all areas generally belonging to ICCs/IPs as referred under Sec. 3, items (a) and (b) of this
Act.

Section 7. Rights to Ancestral Domains. - The rights of ownership and possession of ICCs/IPs t
their ancestral domains shall be recognized and protected. Such rights shall include:

a. Rights of Ownership.- The right to claim ownership over lands, bodies of water

traditionally and actually occupied by ICCs/IPs, sacred places, traditional hunting and fishing
grounds, and all improvements made by them at any time within the domains;

b. Right to Develop Lands and Natural Resources. - Subject to Section 56 hereof, right to
develop, control and use lands and territories traditionally occupied, owned, or used; to
manage and conserve natural resources within the territories and uphold the responsibilities
for future generations; to benefit and share the profits from allocation and utilization of the
natural resources found therein; the right to negotiate the terms and conditions for the
exploration of natural resources in the areas for the purpose of ensuring ecological,
environmental protection and the conservation measures, pursuant to national and
customary laws; the right to an informed and intelligent participation in the formulation and
implementation of any project, government or private, that will affect or impact upon the
ancestral domains and to receive just and fair compensation for any damages which they
sustain as a result of the project; and the right to effective measures by the government to
prevent any interfere with, alienation and encroachment upon these rights;

c. Right to Stay in the Territories- The right to stay in the territory and not be removed
therefrom. No ICCs/IPs will be relocated without their free and prior informed consent, nor
through any means other than eminent domain. Where relocation is considered necessary
as an exceptional measure, such relocation shall take place only with the free and prior
informed consent of the ICCs/IPs concerned and whenever possible, they shall be
guaranteed the right to return to their ancestral domains, as soon as the grounds for
relocation cease to exist. When such return is not possible, as determined by agreement or
through appropriate procedures, ICCs/IPs shall be provided in all possible cases with lands
of quality and legal status at least equal to that of the land previously occupied by them,
suitable to provide for their present needs and future development. Persons thus relocated
shall likewise be fully compensated for any resulting loss or injury;

d. Right in Case of Displacement. - In case displacement occurs as a result of natural

catastrophes, the State shall endeavor to resettle the displaced ICCs/IPs in suitable areas
where they can have temporary life support system: Provided, That the displaced ICCs/IPs
shall have the right to return to their abandoned lands until such time that the normalcy and
safety of such lands shall be determined: Provided, further, That should their ancestral
domain cease to exist and normalcy and safety of the previous settlements are not possible,
displaced ICCs/IPs shall enjoy security of tenure over lands to which they have been
resettled: Provided, furthermore, That basic services and livelihood shall be provided to them
to ensure that their needs are adequately addressed:

e. Right to Regulate Entry of Migrants. - Right to regulate the entry of migrant settlers and
organizations into the domains;

f. Right to Safe and Clean Air and Water. - For this purpose, the ICCs/IPs shall have access
to integrated systems for the management of their inland waters and air space;
 g. Right to Claim Parts of Reservations. - The right to claim parts of the ancestral domains
which have been reserved for various purposes, except those reserved and intended for
common and public welfare and service; and

h. Right to Resolve Conflict. - Right to resolve land conflicts in accordance with customary
laws of the area where the land is located, and only in default thereof shall the complaints be
submitted to amicable settlement and to the Courts of Justice whenever necessary.

Section 8. Rights to Ancestral Lands. - The right of ownership and possession of the ICCs/IPs, to
their ancestral lands shall be recognized and protected.

a. Right to transfer land/property. - Such right shall include the right to transfer land or
property rights to/among members of the same ICCs/IPs, subject to customary laws and
traditions of the community concerned.

b. Right to Redemption. - In cases where it is shown that the transfer of land/property rights
by virtue of any agreement or devise, to a non-member of the concerned ICCs/IPs is tainted
by the vitiated consent of the ICCs/IPs,or is transferred for an unconscionable consideration
or price, the transferor ICC/IP shall have the right to redeem the same within a period not
exceeding fifteen (15) years from the date of transfer.

Section 9. Responsibilities of ICCs/IPs to their Ancestral Domains. - ICCs/IPs occupying a duly

certified ancestral domain shall have the following responsibilities:

a. Maintain Ecological Balance- To preserve, restore, and maintain a balanced ecology in

the ancestral domain by protecting the flora and fauna, watershed areas, and other reserves;

b. Restore Denuded Areas- To actively initiate, undertake and participate in the reforestation
of denuded areas and other development programs and projects subject to just and
reasonable remuneration; and

c. Observe Laws- To observe and comply with the provisions of this Act and the rules and
regulations for its effective implementation.

Section 10. Unauthorized and Unlawful Intrusion. - Unauthorized and unlawful intrusion upon, or
use of any portion of the ancestral domain, or any violation of the rights herein before enumerated,
shall be punishable under this law. Furthermore, the Government shall take measures to prevent
non-ICCs/IPs from taking advantage of the ICCs/IPs customs or lack of understanding of laws to
secure ownership, possession of land belonging to said ICCs/IPs.

Section 11. Recognition of Ancestral Domain Rights. - The rights of ICCs/IPs to their ancestral
domains by virtue of Native Title shall be recognized and respected. Formal recognition, when
solicited by ICCs/IPs concerned, shall be embodied in a Certificate of Ancestral Domain Title
(CADT), which shall recognize the title of the concerned ICCs/IPs over the territories identified and
delineated.

Section 12. Option to Secure Certificate of Title under Commonwealth Act 141, as amended,
or the Land Registration Act 496. - Individual members of cultural communities, with respect to
individually-owned ancestral lands who, by themselves or through their predecessors-in -interest,
have been in continuous possession and occupation of the same in the concept of owner since the
immemorial or for a period of not less than thirty (30) years immediately preceding the approval of
this Act and uncontested by the members of the same ICCs/IPs shall have the option to secure title
to their ancestral lands under the provisions of Commonwealth Act 141, as amended, or the Land
Registration Act 496.

For this purpose, said individually-owned ancestral lands, which are agricultural in character and
actually used for agricultural, residential, pasture, and tree farming purposes, including those with a
slope of eighteen percent (18%) or more, are hereby classified as alienable and disposable
agricultural lands.

The option granted under this Section shall be exercised within twenty (20) years from the approval
of this Act.

CHAPTER IV
RIGHT TO SELF-GOVERNANCE AND EMPOWERMENT

Section 13. Self-Governance. - The State recognizes the inherent right of ICCs/IPs to self-
governance and self-determination and respects the integrity of their values, practices and
institutions. Consequently, the State shall guarantee the right of ICCs/IPs to freely pursue their
economic, social and cultural development.

Section 14. Support for Autonomous Regions. - The State shall continue to strengthen and
support the autonomous regions created under the Constitution as they may require or need. The
State shall likewise encourage other ICCs/IPs not included or outside Muslim Mindanao and the
Cordillera to use the form and content of their ways of life as may be compatible with the
fundamental rights defined in the Constitution of the Republic of the Philippines and other
internationally recognized human rights.

Section 15. Justice System, Conflict Resolution Institutions and Peace Building Processes. -
The ICCs/IPs shall have the right to use their own commonly accepted justice systems, conflict
resolution institutions, peace building processes or mechanisms and other customary laws and
practices within their respective communities and as may be compatible with the national legal
system and with internationally recognized human rights.

Section 16. Right to Participate in Decision -Making. - ICCs/IPs have the right to participate fully,
if they so choose, at all levels of decision-making in matters which may affect their rights, lives and
destinies through procedures determined by them as well as to maintain and develop their own
indigenous political structures. Consequently, the State shall ensure that the ICCs/IPs shall be given
mandatory representation in policy-making bodies and other local legislative councils.

Section 17. Right to Determine and Decide Priorities for Development. - The ICCs/IPs shall
have the right to determine and decide their own priorities for development affecting their lives,
beliefs, institutions, spiritual well-being, and the lands they own, occupy or use. They shall
participate in the formulation,implementation and evaluation of policies, plans and programs for
national, regional and local development which may directly affect them.

Section 18. Tribal Barangays. - The ICCs/IPs living in contiguous areas or communities where they
form the predominant population but which are located in municipalities, provinces or cities where
they do not constitute the majority of the population, may form or constitute a separate barangay in
accordance with the Local Government Code on the creation of tribal barangays.
Section 19. Role of Peoples Organizations. - The State shall recognize and respect the role of
independent ICCs/IPs organizations to enable the ICCs/IPs to pursue and protect their legitimate
and collective interests and aspirations through peaceful and lawful means.

Section 20. Means for Development /Empowerment of ICCs/IPs. - The Government shall

establish the means for the full development/empowerment of the ICCs/IPs own institutions and
initiatives and, where necessary, provide the resources needed therefor.

CHAPTER V
SOCIAL JUSTICE AND HUMAN RIGHTS

Section 21. Equal Protection and Non-discrimination of ICCs/IPs. - Consistent with the equal
protection clause of the Constitution of the Republic of the Philippines, the Charter of the United
Nations, the Universal Declaration of Human Rights including the Convention on the Elimination of
Discrimination Against Women and International Human Rights Law, the State shall, with due
recognition of their distinct characteristics and identity, accord to the members of the ICCs/IPs the
rights, protections and privileges enjoyed by the rest of the citizenry. It shall extend to them the same
employment rights, opportunities, basic services, educational and other rights and privileges
available to every member of the society. Accordingly, the State shall likewise ensure that the
employment of any form of force of coersion against ICCs/IPs shall be dealt with by law.

The State shall ensure that the fundamental human rights and freedoms as enshrined in the
Constitution and relevant international instruments are guaranteed also to indigenous women.
Towards this end, no provision in this Act shall be interpreted so as to result in the diminution of
rights and privileges already recognized and accorded to women under existing laws of general
application.

Section 22. Rights during Armed Conflict. - ICCs/IPs have the right to special protection and
security in periods of armed conflict. The State shall observe international standards, in particular,
the Fourth Geneva Convention of 1949, for the protection of civilian populations in circumstances of
emergency and armed conflict, and shall not recruit members of the ICCs/IPs against their will into
armed forces, and in particular, for the use against other ICCs/IPs; not recruit children of ICCs/IPs
into the armed forces under any circumstance; nor force indigenous individuals to abandon their
lands, territories and means of subsistence, or relocate them in special centers for military purposes
under any discriminatory condition.

Section 23. Freedom from Discrimination and Right to Equal Opportunity and Treatment. - It
shall be the right of the ICCs/IPs to be free from any form of discrimination, with respect to
recruitment and conditions of employment, such that they may enjoy equal opportunities as other
occupationally-related benefits, informed of their rights under existing labor legislation and of means
available to them for redress, not subject to any coercive recruitment systems, including bonded
labor and other forms of debt servitude; and equal treatment in employment for men and women,
including the protection from sexual harassment.

Towards this end, the State shall within the framework of national laws and regulations, and in
cooperation with the ICCs/IPs concerned, adopt special measures to ensure the effective protection
with regard to the recruitment and conditions of employment of persons belonging to these
communities, to the extent that they are not effectively protected by the laws applicable to workers in
general.

ICCs/IPs shall have the right to association and freedom for all trade union activities and the right to
conclude collective bargaining agreements with employers' conditions. They shall likewise have the
right not to be subject to working conditions hazardous to their health, particularly through exposure
to pesticides and other toxic substances.

Section 24. Unlawful Acts Pertaining to Employment. - It shall be unlawful for any person:

a. To discriminate against any ICC/IP with respect to the terms and conditions of
employment on account of their descent. Equal remuneration shall be paid to ICC/IP and
non-ICC/IP for work of equal value; and

b. To deny any ICC/IP employee any right or benefit herein provided for or to discharge them
for the purpose of preventing them from enjoying any of the rights or benefits provided under
this Act.

Section 25. Basic Services. - The ICC/IP have the right to special measures for the immediate,
effective and continuing improvement of their economic and social conditions, including in the areas
of employment, vocational training and retraining, housing, sanitation, health and social security.
Particular attention shall be paid to the rights and special needs of indigenous women, elderly,
youth, children and differently-abled persons. Accordingly, the State shall guarantee the right of
ICCs/IPs to government 's basic services which shall include, but not limited to water and electrical
facilities, education, health and infrastructure.

Section 26. Women. - ICC/IP women shall enjoy equal rights and opportunities with men, as
regards the social, economic, political and cultural spheres of life. The participation of indigenous
women in the decision-making process in all levels, as well as in the development of society, shall
be given due respect and recognition.

The State shall provide full access to education, maternal and child care, health and nutrition, and
housing services to indigenous women. Vocational, technical, professional and other forms of
training shall be provided to enable these women to fully participate in all aspects of social life. As far
as possible, the State shall ensure that indigenous women have access to all services in their own
languages.

Section 27. Children and Youth. - The State shall recognize the vital role of the children and youth
of ICCs/IPs in nation-building and shall promote and protect their physical, moral, spiritual, moral,
spiritual, intellectual and social well-being. Towards this end, the State shall support all government
programs intended for the development and rearing of the children and youth of ICCs/IPs for civic
efficiency and establish such mechanisms as may be necessary for the protection of the rights of the
indigenous children and youth.

Section 28. Integrated System of Education. - The State shall, through the NCIP, provide a
complete, adequate and integrated system of education, relevant to the needs of the children and
Young people of ICCs/IPs.

CHAPTER VI
CULTURAL INTEGRITY

Section 29. Protection of Indigenous Culture, traditions and institutions. - The state shall
respect, recognize and protect the right of the ICCs/IPs to preserve and protect their culture,
traditions and institutions. It shall consider these rights in the formulation of national plans and
policies.
Section 30. Educational Systems. - The State shall provide equal access to various cultural
opportunities to the ICCs/IPs through the educational system, public or cultural entities,
scholarships, grants and other incentives without prejudice to their right to establish and control their
educational systems and institutions by providing education in their own language, in a manner
appropriate to their cultural methods of teaching and learning. Indigenous children/youth shall have
the right to all levels and forms of education of the State.

Section 31. Recognition of Cultural Diversity. - The State shall endeavor to have the dignity and
diversity of the cultures, traditions, histories and aspirations of the ICCs/IPs appropriately reflected in
all forms of education, public information and cultural-educational exchange. Consequently, the
State shall take effective measures, in consultation with ICCs/IPs concerned, to eliminate prejudice
and discrimination and to promote tolerance, understanding and good relations among ICCs/IPs and
all segments of society. Furthermore, the Government shall take effective measures to ensure that
State-owned media duly reflect indigenous cultural diversity. The State shall likewise ensure the
participation of appropriate indigenous leaders in schools, communities and international cooperative
undertakings like festivals, conferences, seminars and workshops to promote and enhance their
distinctive heritage and values.

Section 32. Community Intellectual Rights. - ICCs/IPs have the right to practice and revitalize
their own cultural traditions and customs. The State shall preserve, protect and develop the past,
present and future manifestations of their cultures as well as the right to the restitution of cultural,
intellectual, religious, and spiritual property taken without their free and prior informed consent or in
violation of their laws, traditions and customs.

Section 33. Rights to Religious, Cultural Sites and Ceremonies. - ICCs/IPs shall have the right
to manifest, practice, develop teach their spiritual and religious traditions, customs and ceremonies;
the right to maintain, protect and have access to their religious and cultural sites; the right to use and
control of ceremonial object; and the right to the repatriation of human remains. Accordingly, the
State shall take effective measures, in cooperation with the burial sites, be preserved, respected and
protected. To achieve this purpose, it shall be unlawful to:

a. Explore, excavate or make diggings on archeological sites of the ICCs/IPs for the purpose
of obtaining materials of cultural values without the free and prior informed consent of the
community concerned; and

b. Deface, remove or otherwise destroy artifacts which are of great importance to the
ICCs/IPs for the preservation of their cultural heritage.

Section 34. Right to Indigenous Knowledge Systems and Practices and to Develop own
Sciences and Technologies. - ICCs/IPs are entitled to the recognition of the full ownership and
control and protection of their cultural and intellectual rights. They shall have the right to special
measures to control, develop and protect their sciences, technologies and cultural manifestations,
including human and other genetic resources, seeds, including derivatives of these resources,
traditional medicines and health practices, vital medicinal plants, animals and minerals, indigenous
knowledge systems and practices, knowledge of the properties of fauna and flora, oral traditions,
literature, designs, and visual and performing arts.

Section 35. Access to Biological and Genetic Resources. - Access to biological and genetic
resources and to indigenous knowledge related to the conservation, utilization and enhancement of
these resources, shall be allowed within ancestral lands and domains of the ICCs/IPs only with a
free and prior informed consent of such communities, obtained in accordance with customary laws of
the concerned community.
Section 36. Sustainable Agro-Technical Development. - The State shall recognize the right of
ICCs/IPs to a sustainable agro-technological development and shall formulate and implement
programs of action for its effective implementation. The State shall likewise promote the bio-genetic
and resource management systems among the ICCs/IPs and shall encourage cooperation among
government agencies to ensure the successful sustainable development of ICCs/IPs.

Section 37. Funds for Archeological and Historical Sites. - The ICCs/IPs shall have the right to
receive from the national government all funds especially earmarked or allocated for the
management and preservation of their archeological and historical sites and artifacts with the
financial and technical support of the national government agencies.

CHAPTER VII
NATIONAL COMMISSION ON INDIGENOUS PEOPLES (NCIP)

Section 38. National Commission on Indigenous Cultural Communities /Indigenous Peoples

(NCCP). - to carry out the policies herein set forth, there shall be created the National Commission
on ICCs/IPs (NCIP), which shall be the primary government agency responsible for the formulation
and implementation of policies, plans and programs to promote and protect the rights and well-being
of the ICCs/IPs and the recognition of their ancestral domains as well as their rights thereto.

Section 39. Mandate. - The NCIP shall protect and promote the interest and well-being of the
ICCs/IPs with due regard to their beliefs, customs, traditions and institutions.

Section 40. Composition. - The NCIP shall be an independent agency under the Office of the
President and shall be composed of seven (7) Commissioners belonging to ICCs/IPs, one (1) of
whom shall be the Chairperson. The Commissioners shall be appointed by the President of the
Philippines from a list of recommendees submitted by authentic ICCs/IPs: Provided, That the seven
(7) Commissioners shall be appointed specifically from each of the following ethnographic areas:
Region I and the Cordilleras; Region II; the rest of Luzon; Island Groups including Mindoro, Palawan,
Romblon, Panay and the rest of the Visayas; Northern and Western Mindanao; Southern and
Eastern Mindanao; and Central Mindanao: Provided, That at least two (2) of the seven (7)
Commissioners shall be women.

Section 41. Qualifications, Tenure, Compensation. - The Chairperson and the six (6)
Commissioners must be natural born Filipino citizens, bonafide members of ICCs/IPs as certified by
his/her tribe, experienced in ethnic affairs and who have worked for at least ten (10) years with an
ICC/IP community and/or any government agency involved in ICC/IP, at least 35 years of age at the
time of appointment, and must be of proven honesty and integrity: Provided, That at least two (2) of
the seven (7) Commissioners shall be the members of the Philippine Bar: Provided, further, That the
members of the NCIP shall hold office for a period of three (3) years, and may be subject to re-
appointment for another term: Provided, furthermore, That no person shall serve for more than two
(2) terms. Appointment to any vacancy shall only be for the unexpired term of the predecessor and
in no case shall a member be appointed or designated in a temporary or acting capacity: Provided,
finally, That the Chairperson and the Commissioners shall be entitled to compensation in
accordance with the Salary Standardization Law.

Section 42. Removal from Office. - Any member of the NCIP may be removed from office by the
President, on his own initiative or upon recommendation by any indigenous community, before the
expiration of his term for cause and after complying with due process requirement of law.

Section 43. Appointment of Commissioners. - The President shall appoint the seven (7)
Commissioners of the NCIP within ninety (90) days from the effectivity of this Act.
Section 44. Powers and Functions. - To accomplish its mandate, the NCIP shall have the following
powers, jurisdiction and function:

a) To serve as the primary government agency through which ICCs/IPs can seek
government assistance and as the medium, thorough which such assistance may be
extended;

b) To review and assess the conditions of ICCs/IPs including existing laws and policies
pertinent thereto and to propose relevant laws and policies to address their role in national
development;

c) To formulate and implement policies, plans, programs and projects for the economic,
social and cultural development of the ICCs/IPs and to monitor the implementation thereof;

d) To request and engage the services and support of experts from other agencies of
government or employ private experts and consultants as may be required in the pursuit of
its objectives;

e) To issue certificate of ancestral land/domain title;

f) Subject to existing laws, to enter into contracts, agreements, or arrangement, with

government or private agencies or entities as may be necessary to attain the objectives of
this Act, and subject to the approval of the President, to obtain loans from government
lending institutions and other lending institutions to finance its programs;

g) To negotiate for funds and to accept grants, donations, gifts and/or properties in whatever
form and from whatever source, local and international, subject to the approval of the
President of the Philippines, for the benefit of ICCs/IPs and administer the same in
accordance with the terms thereof; or in the absence of any condition, in such manner
consistent with the interest of ICCs/IPs as well as existing laws;

h) To coordinate development programs and projects for the advancement of the ICCs/IPs
and to oversee the proper implementation thereof;

i) To convene periodic conventions or assemblies of IPs to review, assess as well as

propose policies or plans;

j) To advise the President of the Philippines on all matters relating to the ICCs/IPs and to
submit within sixty (60) days after the close of each calendar year, a report of its operations
and achievements;

k) To submit to Congress appropriate legislative proposals intended to carry out the policies
under this Act;

l) To prepare and submit the appropriate budget to the Office of the President;

m) To issue appropriate certification as a pre-condition to the grant of permit, lease, grant, or

any other similar authority for the disposition, utilization, management and appropriation by
any private individual, corporate entity or any government agency, corporation or subdivision
thereof on any part or portion of the ancestral domain taking into consideration the
consensus approval of the ICCs/IPs concerned;
 n) To decide all appeals from the decisions and acts of all the various offices within the
Commission:

o) To promulgate the necessary rules and regulations for the implementation of this Act;

p) To exercise such other powers and functions as may be directed by the President of the
Republic of the Philippines; and

q) To represent the Philippine ICCs/IPs in all international conferences and conventions

dealing with indigenous peoples and other related concerns.

Section 45. Accessibility and Transparency. - Subject to such limitations as may be provided by

law or by rules and regulations promulgated pursuant thereto, all official records, documents and
papers pertaining to official acts, transactions or decisions, as well as research data used as basis
for policy development of the Commission shall be made accessible to the public.

Section 46. Officers within the NCIP. - The NCIP shall have the following offices which shall be
responsible for the implementation of the policies herein after provided:

a. Ancestral Domains Office - The Ancestral Domain Office shall be responsible for the
identification, delineation and recognition of ancestral land/domains. It shall also be
responsible for the management of ancestral lands/domains in accordance with the master
plans as well as the implementation of the ancestral domain rights of the ICCs/IPs as
provided in Chapter III of this Act. It shall also issue, upon the free and prior informed
consent of the ICCs/IPs concerned, certification prior to the grant of any license, lease or
permit for the exploitation of natural resources affecting the interests of ICCs/IPs in
protecting the territorial integrity of all ancestral domains. It shall likewise perform such other
functions as the Commission may deem appropriate and necessary;

b. Office on Policy, Planning and Research - The Office on Policy, Planning and Research
shall be responsible for the formulation of appropriate policies and programs for ICCs/IPs
such as, but not limited to, the development of a Five-Year Master Plan for the ICCs/IPs.
Such plan shall undergo a process such that every five years, the Commission shall
endeavor to assess the plan and make ramifications in accordance with the changing
situations. The Office shall also undertake the documentation of customary law and shall
establish and maintain a Research Center that would serve as a depository of ethnographic
information for monitoring, evaluation and policy formulation. It shall assist the legislative
branch of the national government in the formulation of appropriate legislation benefiting
ICCs/IPs.

c. Office of Education, Culture and Health - The Office on Culture, Education and Health
shall be responsible for the effective implementation of the education, cultural and related
rights as provided in this Act. It shall assist, promote and support community schools, both
formal and non-formal, for the benefit of the local indigenous community, especially in areas
where existing educational facilities are not accessible to members of the indigenous group.
It shall administer all scholarship programs and other educational rights intended for ICC/IP
beneficiaries in coordination with the Department of Education, Culture and Sports and the
Commission on Higher Education. It shall undertake, within the limits of available
appropriation, a special program which includes language and vocational training, public
health and family assistance program and related subjects.
 It shall also identify ICCs/IPs with potential training in the health profession and encourage
and assist them to enroll in schools of medicine, nursing, physical therapy and other allied
courses pertaining to the health profession.

Towards this end, the NCIP shall deploy a representative in each of the said offices who
shall personally perform the foregoing task and who shall receive complaints from the
ICCs/IPs and compel action from appropriate agency. It shall also monitor the activities of
the National Museum and other similar government agencies generally intended to manage
and preserve historical and archeological artifacts of the ICCs /IPs and shall be responsible
for the implementation of such other functions as the NCIP may deem appropriate and
necessary;

d. Office on Socio-Economic Services and Special Concerns - The Office on Socio-

Economic Services and Special Concerns shall serve as the Office through which the NCIP
shall coordinate with pertinent government agencies specially charged with the
implementation of various basic socio-economic services, policies, plans and programs
affecting the ICCs/IPs to ensure that the same are properly and directly enjoyed by them. It
shall also be responsible for such other functions as the NCIP may deem appropriate and
necessary;

e. Office of Empowerment and Human Rights - The Office of Empowerment and Human
Rights shall ensure that indigenous socio- political, cultural and economic rights are
respected and recognized. It shall ensure that capacity building mechanisms are instituted
and ICCs/IPs are afforded every opportunity, if they so choose, to participate in all level
decision-making. It shall likewise ensure that the basic human rights, and such other rights
as the NCIP may determine, subject to existing laws, rules and regulations are protected and
promoted;

f. Administrative Office - The Administrative Office shall provide the NCIP with economical,
efficient and effective services pertaining to personnel, finance, records, equipment, security,
supplies, and related services. It shall also administer the Ancestral Domains Fund; and

g. Legal Affairs Office - There shall be a Legal Affairs Office which shall advice the NCIP on
all legal matters concerning ICCs/IPs and which shall be responsible for providing ICCs/IPs
with legal assistance in litigation involving community interest. It shall conduct preliminary
investigation on the basis of complaints filed by the ICCs/IPs against a natural or juridical
person believed to have violated ICCs/IPs rights. On the basis of its findings, it shall initiate
the filing of appropriate legal or administrative action to the NCIP.

Section 47. Other Offices. - The NCIP shall have the power to create additional offices as it may
deem necessary subject to existing rules and regulations.

Section 48. Regional and Field Offices. - Existing regional and field offices shall remain to function
under the strengthened organizational structure of the NCIP. Other field office shall be created
wherever appropriate and the staffing pattern thereof shall be determined by the NCIP: Provided,
That in provinces where there are ICCs/IPs but without field offices, the NCIP shall establish field
offices in said provinces.

Section 49. Office of the Executive Director. - The NCIP shall create the Office of the Executive
Director which shall serve as its secretariat. The office shall be headed by an Executive Director who
shall be appointed by the President of the Republic of the Philippines upon the recommendation of
the NCIP on a permanent basis. The staffing pattern of the office shall be determined by the NCIP
subject to existing rules and regulations.

Section 50. Consultative Body. - A body consisting of the traditional leaders, elders and
representatives from the women and youth sectors of the different ICCs/IPs shall be constituted by
the NCIP from the time to time to advise it on matters relating to the problems, aspirations and
interests of the ICCs/IPs.

CHAPTER VIII
DELINEATION AND RECOGNITION OF ANCESTRAL DOMAINS

Section 51. Delineation and Recognition of Ancestral Domains. - Self-delineation shall be

guiding principle in the identification and delineation of ancestral domains. As such, the ICCs/IPs
concerned shall have a decisive role in all the activities pertinent thereto. The Sworn Statement of
the Elders as to the Scope of the territories and agreements/pacts made with neighboring ICCs/IPs,
if any, will be essential to the determination of these traditional territories. The Government shall take
the necessary steps to identify lands which the ICCs/IPs concerned traditionally occupy and
guarantee effective protection of their rights of ownership and possession thereto. Measures shall be
taken in appropriate cases to safeguard the rights of the ICCs/IPs concerned to land which may no
longer be exclusively occupied by them, but to which they have traditionally had access for their
subsistence and traditional activities, particularly of ICCs/IPs who are still nomadic and/or shifting
cultivators.

Section 52. Delineation Process. - The identification and delineation of ancestral domains shall be
done in accordance with the following procedures:

a. Ancestral Domains Delineated Prior to this Act - The provisions hereunder shall not apply
to ancestral domains/lands already delineated according to DENR Administrative Order No.
2, series of 1993, nor to ancestral lands and domains delineated under any other
community/ancestral domain program prior to the enactment of his law. ICCs/IPs enactment
of this law shall have the right to apply for the issuance of a Certificate of Ancestral Domain
Title (CADT) over the area without going through the process outlined hereunder;

b. Petition for Delineation - The process of delineating a specific perimeter may be initiated
by the NCIP with the consent of the ICC/IP concerned, or through a Petition for Delineation
filed with the NCIP, by a majority of the members of the ICCs/IPs;

c. Delineation Paper - The official delineation of ancestral domain boundaries including

census of all community members therein, shall be immediately undertaken by the Ancestral
Domains Office upon filing of the application by the ICCs/IPs concerned. Delineation will be
done in coordination with the community concerned and shall at all times include genuine
involvement and participation by the members of the communities concerned;

d. Proof required - Proof of Ancestral Domain Claims shall include the testimony of elders or
community under oath, and other documents directly or indirectly attesting to the possession
or occupation of the area since time immemorial by such ICCs/IPs in the concept of owners
which shall be any one (1) of the following authentic documents:

1. Written accounts of the ICCs/IPs customs and traditions;

2. Written accounts of the ICCs/IPs political structure and institution;

 3. Pictures showing long term occupation such as those of old improvements, burial
grounds, sacred places and old villages;

4. Historical accounts, including pacts and agreements concerning boundaries

entered into by the ICCs/IPs concerned with other ICCs/IPs;

5. Survey plans and sketch maps;

6. Anthropological data;

7. Genealogical surveys;

8. Pictures and descriptive histories of traditional communal forests and hunting

grounds;

9. Pictures and descriptive histories of traditional landmarks such as mountains,

rivers, creeks, ridges, hills, terraces and the like; and

10. Write-ups of names and places derived from the native dialect of the community.

e. Preparation of Maps - On the basis of such investigation and the findings of fact based
thereon, the Ancestral Domains Office of the NCIP shall prepare a perimeter map, complete
with technical descriptions, and a description of the natural features and landmarks
embraced therein;

f. Report of Investigation and Other Documents - A complete copy of the preliminary census
and a report of investigation, shall be prepared by the Ancestral Domains Office of the NCIP;

g. Notice and Publication - A copy of each document, including a translation in the native
language of the ICCs/IPs concerned shall be posted in a prominent place therein for at least
fifteen (15) days. A copy of the document shall also be posted at the local, provincial and
regional offices of the NCIP, and shall be published in a newspaper of general circulation
once a week for two (2) consecutive weeks to allow other claimants to file opposition thereto
within fifteen (15) days from the date of such publication: Provided, That in areas where no
such newspaper exists, broadcasting in a radio station will be a valid substitute: Provided,
further, That mere posting shall be deemed sufficient if both newspaper and radio station are
not available;

h. Endorsement to NCIP - Within fifteen (15) days from publication, and of the inspection
process, the Ancestral Domains Office shall prepare a report to the NCIP endorsing a
favorable action upon a claim that is deemed to have sufficient proof. However, if the proof is
deemed insufficient, the Ancestral Domains Office shall require the submission of additional
evidence: Provided, That the Ancestral Domains Office shall reject any claim that is deemed
patently false or fraudulent after inspection and verification: Provided, further, That in case of
rejection, the Ancestral Domains Office shall give the applicant due notice, copy furnished all
concerned, containing the grounds for denial. The denial shall be appealable to the NCIP:
Provided, furthermore, That in cases where there are conflicting claims, the Ancestral
Domains Office shall cause the contending parties to meet and assist them in coming up with
a preliminary resolution of the conflict, without prejudice to its full adjudication according to
the selection below.
 i. Turnover of Areas Within Ancestral Domains Managed by Other Government Agencies -
The Chairperson of the NCIP shall certify that the area covered is an ancestral domain. The
secretaries of the Department of Agrarian Reform, Department of Environment and Natural
Resources, Department of the Interior and Local Government, and Department of Justice,
the Commissioner of the National Development Corporation, and any other government
agency claiming jurisdiction over the area shall be notified thereof. Such notification shall
terminate any legal basis for the jurisdiction previously claimed;

j. Issuance of CADT - ICCs/IPs whose ancestral domains have been officially delineated and
determined by the NCIP shall be issued a CADT in the name of the community concerned,
containing a list of all those identified in the census; and

k. Registration of CADTs - The NCIP shall register issued certificates of ancestral domain
titles and certificates of ancestral lands titles before the Register of Deeds in the place where
the property is situated.

Section 53. Identification, Delineation and Certification of Ancestral Lands. -

a. The allocation of lands within any ancestral domain to individual or indigenous corporate
(family or clan) claimants shall be left to the ICCs/IPs concerned to decide in accordance
with customs and traditions;

b. Individual and indigenous corporate claimants of ancestral lands which are not within
ancestral domains, may have their claims officially established by filing applications for the
identification and delineation of their claims with the Ancestral Domains Office. An individual
or recognized head of a family or clan may file such application in his behalf or in behalf of
his family or clan, respectively;

c. Proofs of such claims shall accompany the application form which shall include the
testimony under oath of elders of the community and other documents directly or indirectly
attesting to the possession or occupation of the areas since time immemorial by the
individual or corporate claimants in the concept of owners which shall be any of the authentic
documents enumerated under Sec. 52 (d) of this act, including tax declarations and proofs of
payment of taxes;

d. The Ancestral Domains Office may require from each ancestral claimant the submission of
such other documents, Sworn Statements and the like, which in its opinion, may shed light
on the veracity of the contents of the application/claim;

e. Upon receipt of the applications for delineation and recognition of ancestral land claims,
the Ancestral Domains Office shall cause the publication of the application and a copy of
each document submitted including a translation in the native language of the ICCs/IPs
concerned in a prominent place therein for at least fifteen (15) days. A copy of the document
shall also be posted at the local, provincial, and regional offices of the NCIP and shall be
published in a newspaper of general circulation once a week for two (2) consecutive weeks
to allow other claimants to file opposition thereto within fifteen (15) days from the date of
such publication: Provided, That in areas where no such newspaper exists, broadcasting in a
radio station will be a valid substitute: Provided, further, That mere posting shall be deemed
sufficient if both newspapers and radio station are not available

f. Fifteen (15) days after such publication, the Ancestral Domains Office shall investigate and
inspect each application, and if found to be meritorious, shall cause a parcellary survey of
 the area being claimed. The Ancestral Domains office shall reject any claim that is deemed
patently false or fraudulent after inspection and verification. In case of rejection, the
Ancestral Domains office shall give the applicant due notice, copy furnished all concerned,
containing the grounds for denial. The denial shall be appealable to the NCIP. In case of
conflicting claims among individual or indigenous corporate claimants, the Ancestral domains
Office shall cause the contending parties to meet and assist them in coming up with a
preliminary resolution of the conflict, without prejudice to its full adjudication according to
Sec. 62 of this Act. In all proceedings for the identification or delineation of the ancestral
domains as herein provided, the Director of Lands shall represent the interest of the
Republic of the Philippines; and

g. The Ancestral Domains Office shall prepare and submit a report on each and every
application surveyed and delineated to the NCIP, which shall, in turn, evaluate or corporate
(family or clan) claimant over ancestral lands.

Section 54. Fraudulent Claims. - The Ancestral Domains Office may, upon written request from the
ICCs/IPs, review existing claims which have been fraudulently acquired by any person or
community. Any claim found to be fraudulently acquired by, and issued to, any person or community
may be cancelled by the NCIP after due notice and hearing of all parties concerned.

Section 55. Communal Rights. - Subject to Section 56 hereof, areas within the ancestral domains,
whether delineated or not, shall be presumed to be communally held: Provide, That communal rights
under this Act shall not be construed as co-ownership as provided in Republic Act. No. 386,
otherwise known as the New Civil Code.

Section 56. Existing Property Rights Regimes. - Property rights within the ancestral domains
already existing and/or vested upon effectivity of this Act, shall be recognized and respected.

Section 57. Natural Resources within Ancestral Domains. - The ICCs/IPs shall have the priority
rights in the harvesting, extraction, development or exploitation of any natural resources within the
ancestral domains. A non-member of the ICCs/IPs concerned may be allowed to take part in the
development and utilization of the natural resources for a period of not exceeding twenty-five (25)
years renewable for not more than twenty-five (25) years: Provided, That a formal and written
agreement is entered into with the ICCs/IPs concerned or that the community, pursuant to its own
decision making process, has agreed to allow such operation: Provided, finally, That the all
extractions shall be used to facilitate the development and improvement of the ancestral domains.

Section 58. Environmental Consideration. - Ancestral domains or portion thereof, which are found
necessary for critical watersheds, mangroves wildlife sanctuaries, wilderness, protected areas, forest
cover, or reforestation as determined by the appropriate agencies with the full participation of the
ICCs/IPs concerned shall be maintained, managed and developed for such purposes. The ICCs/IPs
concerned shall be given the responsibility to maintain, develop, protect and conserve such areas
with the full and effective assistance of the government agencies. Should the ICCs/IPs decide to
transfer the responsibility over the areas, said decision must be made in writing. The consent of the
ICCs/IPs should be arrived at in accordance with its customary laws without prejudice to the basic
requirement of the existing laws on free and prior informed consent: Provided, That the transfer shall
be temporary and will ultimately revert to the ICCs/IPs in accordance with a program for technology
transfer: Provided, further, That no ICCs/IPs shall be displaced or relocated for the purpose
enumerated under this section without the written consent of the specific persons authorized to give
consent.
Section 59. Certification Precondition. - all department and other governmental agencies shall
henceforth be strictly enjoined from issuing, renewing, or granting any concession, license or lease,
or entering into any production-sharing agreement, without prior certification from the NCIP that the
area affected does not overlap with any ancestral domain. Such certificate shall only be issued after
a field-based investigation is conducted by the Ancestral Domain Office of the area concerned:
Provided, That no certificate shall be issued by the NCIP without the free and prior informed and
written consent of the ICCs/IPs concerned: Provided, further, That no department, government
agency or government-owned or -controlled corporation may issue new concession, license, lease,
or production sharing agreement while there is pending application CADT: Provided, finally, That the
ICCs/IPs shall have the right to stop or suspend, in accordance with this Act, any project that has not
satisfied the requirement of this consultation process.

Section 60. Exemption from Taxes. - All lands certified to be ancestral domains shall be exempt
from real property taxes, specially levies, and other forms of exaction except such portion of the
ancestral domains as are actually used for large-scale agriculture, commercial forest plantation and
residential purposes and upon titling by other by private person: Provided, that all exactions shall be
used to facilitate the development and improvement of the ancestral domains.

Section 61. Temporary Requisition Powers. - Prior to the establishment of an institutional

surveying capacity whereby it can effectively fulfill its mandate, but in no case beyond three (3) years
after its creation, the NCIP is hereby authorized to request the Department of Environment and
Natural Resources (DENR) survey teams as well as other equally capable private survey teams,
through a Memorandum of Agreement (MOA), to delineate ancestral domain perimeters. The DENR
Secretary shall accommodate any such request within one (1) month of its issuance: Provided, That
the Memorandum of Agreement shall stipulate, among others, a provision for technology transfer to
the NCIP.

Section 62. Resolution of Conflicts. - In cases of conflicting interest, where there are adverse
claims within the ancestral domains as delineated in the survey plan, and which cannot be resolved,
the NCIP shall hear and decide, after notice to the proper parties, the disputes arising from the
delineation of such ancestral domains: Provided, That if the dispute is between and/or among
ICCs/IPs regarding the traditional boundaries of their respective ancestral domains, customary
process shall be followed. The NCIP shall promulgate the necessary rules and regulations to carry
out its adjudicatory functions: Provided, further, That in any decision, order, award or ruling of the
NCIP on any ancestral domain dispute or on any matter pertaining to the application,
implementation, enforcement and interpretation of this Act may be brought for Petition for Review to
the Court of Appeals within fifteen (15) days from receipt of a copy thereof.

Section 63. Applicable Laws. - Customary laws, traditions and practices of the ICCs/IPs of the land
where the conflict arises shall be applied first with respect to property rights, claims and ownerships,
hereditary succession and settlement of land disputes. Any doubt or ambiguity in the application of
laws shall be resolved in favor of the ICCs/IPs.

Section 64. Remedial Measures. - Expropriation may be resorted to in the resolution of conflicts of

interest following the principle of the "common good". The NCIP shall take appropriate legal action
for the cancellation of officially documented titles which were acquired illegally: Provided, That such
procedure shall ensure that the rights of possessors in good faith shall be respected: Provided,
further, That the action for cancellation shall be initiated within two (2) years from the effectivity of
this Act: Provided, finally, That the action for reconveyance shall be a period of ten (10) years in
accordance with existing laws.
 CHAPTER IX
JURISDICTION AND PROCEDURES FOR ENFORCEMENT OF RIGHTS

Section 65. Primary of Customary Laws and Practices. - When disputes involve ICCs/IPs,
customary laws and practices shall be used to resolve the dispute.

Section 66. Jurisdiction of the NCIP. - The NCIP, through its regional offices, shall have
jurisdiction over all claims and disputes involving rights of ICCs/IPs; Provided, however, That no
such dispute shall be brought to the NCIP unless the parties have exhausted all remedies provided
under their customary laws. For this purpose, a certification shall be issued by the Council of
Elders/Leaders who participated in the attempt to settle the dispute that the same has not been
resolved, which certification shall be a condition precedent to the filing of a petition with the NCIP.

Section 67. Appeals to the Court of Appeals. - Decisions of the NCIP shall be appealable to the
Court of Appeals by way of a petition for review.

Section 68. Execution of Decisions, Awards, Orders. - Upon expiration of the period here
provided and no appeal is perfected by any of the contending parties, the Hearing Officer of the
NCIP, on its own initiative or upon motion by the prevailing party, shall issue a writ of execution
requiring the sheriff or the proper officer to execute final decisions, orders or awards of the Regional
Hearing Officer of the NCIP.

Section 69. Quasi-Judicial Powers of the NCIP. - The NCIP shall have the power and authority:

a. To promulgate rules and regulations governing the hearing and disposition of cases filed
before it as well as those pertaining to its internal functions and such rules and regulations
as may be necessary to carry out the purposes of this Act;

b. To administer oaths, summon the parties to a controversy, issue subpoenas requiring the
attendance and testimony of witnesses or the production of such books, papers, contracts,
records, agreements and other document of similar nature as may be material to a just
determination of the matter under investigation or hearing conducted in pursuance of this
Act;

c. To hold any person in contempt, directly or indirectly, and impose appropriate penalties
therefor; and

d. To enjoin any or all acts involving or arising from any case pending therefore it which, if
not restrained forthwith, may cause grave or irreparable damage to any of the parties to the
case or seriously affect social or economic activity.

Section 70. No restraining Order or Preliminary Injunction. - No inferior court of the Philippines
shall have the jurisdiction to issue any restraining order or writ of preliminary injunction against the
NCIP or any of its duly authorized or designated offices in any case, dispute or controversy to, or
interpretation of this Act and other pertinent laws relating to ICCs/IPs and ancestral domains.

CHAPTER X
ANCESTRAL DOMAINS FUND

Section 71. Ancestral Domains Fund. - There is hereby created a special fund, to be known as the
Ancestral Domains Fund, an initial amount of the One Hundred thirty million pesos(P130,000,000) to
cover compensation for expropriated lands, delineation and development of ancestral domains. An
amount of Fifty million pesos (P50,000,000) shall be sourced from the gross income of the Philippine
Charity Sweepstakes Office (PCSO) from its lotto operation, Ten millions pesos (P10,000,000) from
the gross receipts of the travel tax of the preceding year, the fund of the Social Reform Council
intended for survey and delineation of ancestral lands/domains, and such other source as the
government may be deem appropriate. Thereafter such amount shall be included in the annual
General Appropriations Act. Foreign as well as local funds which are made available for the
ICCs/IPs through the government of the Philippines shall be coursed through the NCIP. The NCIP
may also solicit and receive donations, endowments shall be exempted from income or gift taxes
and all other taxes, charges or fees imposed by the government or any political subdivision or
instrumentality thereof.

CHAPTER XI
PENALTIES

Section 72. Punishable Acts and Applicable Penalties. - Any person who commits violation of
any of the provisions of this Act, such as, but not limited to, authorized and/or unlawful intrusion
upon any ancestral lands or domains as stated in Sec. 10, Chapter III, or shall commit any of the
prohibited acts mentioned in Sections 21 and 24, Chapter V, Section 33, Chapter VI hereof, shall be
punished in accordance with the customary laws of the ICCs/IPs concerned: Provided, That no such
penalty shall be cruel, degrading or inhuman punishment: Provided, further, That neither shall the
death penalty or excessive fines be imposed. This provision shall be without prejudice to the right of
any ICCs/IPs to avail of the protection of existing laws. In which case, any person who violates any
provision of this Act shall, upon conviction, be punished by imprisonment of not less than nine (9)
months but not more than twelve (12) years or a fine not less than One hundred thousand pesos
(P100,000) nor more than Five hundred thousand pesos (P500,000) or both such fine and
imprisonment upon the discretion of the court. In addition, he shall be obliged to pay to the ICCs/IPs
concerned whatever damage may have been suffered by the latter as a consequence of the unlawful
act.

Section 73. Persons Subject to Punishment. - If the offender is a juridical person, all officers such
as, but not limited to, its president, manager, or head of office responsible for their unlawful act shall
be criminally liable therefor, in addition to the cancellation of certificates of their registration and/or
license: Provided, That if the offender is a public official, the penalty shall include perpetual
disqualification to hold public office.

CHAPTER XII
MERGER OF THE OFFICE FOR NORTHERN CULTURAL COMMUNITIES (ONCC) AND THE
OFFICE FOR SOUTHERN CULTURAL COMMUNITIES (OSCC)

Section 74. Merger of ONCC/OSCC. - The Office for Northern Cultural Communities (ONCC) and
the Office of Southern Cultural Communities (OSCC), created under Executive Order Nos. 122-B
and 122-C respectively, are hereby merged as organic offices of the NCIP and shall continue to
function under a revitalized and strengthened structures to achieve the objectives of the NCIP:
Provided, That the positions of Regional Directors and below, are hereby phased-out upon the
effectivity of this Act: Provided, further, That officials and employees of the phased-out offices who
may be qualified may apply for reappointment with the NCIP and may be given prior rights in the
filing up of the newly created positions of NCIP, subject to the qualifications set by the Placement
Committee: Provided, furthermore, That in the case where an indigenous person and a non-
indigenous person with similar qualifications apply for the same position, priority shall be given to the
former. Officers and employees who are to be phased-out as a result of the merger of their offices
shall be entitled to gratuity a rate equivalent to one and a half (1 1/2) months salary for every year of
continuous and satisfactory service rendered or the equivalent nearest fraction thereof favorable to
them on the basis of the highest salary received. If they are already entitled to retirement benefits or
the gratuity herein provided. Officers and employees who may be reinstated shall refund such
retirement benefits or gratuity received: Provided, finally That absorbed personnel must still meet the
qualifications and standards set by the Civil Service and the Placement Committee herein created.

Section 75. Transition Period. - The ONCC/OSCC shall have a period of six (6) months from the
effectivity of this Act within which to wind up its affairs and to conduct audit of its finances.

Section 76. Transfer of Assets/Properties. - All real and personal properties which are vested in,
or belonging to, the merged offices as aforestated shall be transferred to the NCIP without further
need of conveyance, transfer or assignment and shall be held for the same purpose as they were
held by the former offices: Provided, That all contracts, records and documents shall be transferred
to the NCIP. All agreements and contracts entered into by the merged offices shall remain in full
force and effect unless otherwise terminated, modified or amended by the NCIP.

Section 77. Placement Committee. - Subject to rules on government reorganization, a Placement

Committee shall be created by the NCIP, in coordination with the Civil Service Commission, which
shall assist in the judicious selection and placement of personnel in order that the best qualified and
most deserving persons shall be appointed in the reorganized agency. The placement Committee
shall be composed of seven (7) commissioners and an ICCs/IPs representative from each of the first
and second level employees association in the Offices for Northern and Southern Cultural
Communities (ONCC/OSCC), nongovernment organizations (NGOs) who have served the
community for at least five (5) years and peoples organizations (POs) with at least five (5) years of
existence. They shall be guided by the criteria of retention and appointment to be prepared by the
consultative body and by the pertinent provisions of the civil service law.

CHAPTER XIII
FINAL PROVISIONS

Section 78. Special Provision. - The City of Baguio shall remain to be governed by its Chapter and
all lands proclaimed as part of its townsite reservation shall remain as such until otherwise
reclassified by appropriate legislation: Provided, That prior land rights and titles recognized and/or
required through any judicial, administrative or other processes before the effectivity of this Act shall
remain valid: Provided, further, That this provision shall not apply to any territory which becomes part
of the City of Baguio after the effectivity of this Act.

Section 79. Appropriations. - The amount necessary to finance the initial implementation of this
Act shall be charged against the current year's appropriation of the ONCC and the OSCC.
Thereafter, such sums as may be necessary for its continued implementation shall be included in the
annual General Appropriations Act.

Section 80. Implementing Rules and Regulations. - Within sixty (60) days immediately after
appointment, the NCIP shall issue the necessary rules and regulations, in consultation with the
Committees on National Cultural Communities of the House of Representatives and the Senate, for
the effective implementation of this Act.

Section 81. Saving Clause. - This Act will not in any manner adversely affect the rights and benefits
of the ICCs/IPs under other conventions, recommendations, international treaties, national laws,
awards, customs and agreements.
Section 82. Separability Clause. - In case any provision of this Act or any portion thereof is
declared unconstitutional by a competent court, other provisions shall not be affected thereby.

Section 83. Repealing Clause. - Presidential Decree NO. 410, Executive Order Nos. 122-B and
122-C, and all other laws, decrees, orders, rules and regulations or parts thereof inconsistent with
this Act are hereby repealed or modified accordingly.

Section 84. Effectivity. - This Act shall take effect fifteen days (15) days upon its publication in the
Official Gazette or in any two (2) newspapers of general circulation.

Approved: 29 October 1997.

Republic Act No. 8371             October 29, 1997

AN ACT TO RECOGNIZE, PROTECT AND PROMOTE THE RIGHTS OF INDIGENOUS

CULTURAL COMMUNITIES/INDIGENOUS PEOPLE, CREATING A NATIONAL COMMISSION OF
INDIGENOUS PEOPLE, ESTABLISHING IMPLEMENTING MECHANISMS, APPROPRIATING
FUNDS THEREFOR, AND FOR OTHER PURPOSES

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

assembled:

CHAPTER I
GENERAL PROVISIONS

Section 1. Short Title. - This Act shall be known as "The Indigenous Peoples Rights Act of
1997."

Section 2. Declaration of State Policies. - The State shall recognize and promote all the rights of
Indigenous Cultural Communities/Indigenous Peoples (ICCs/IPs) hereunder enumerated within the
framework of the Constitution:

a) The State shall recognize and promote the rights of ICCs/IPs within the framework of
national unity and development;

b)The State shall protect the rights of ICCs/IPs to their ancestral domains to ensure their
economic, social and cultural well being and shall recognize the applicability of customary
laws governing property rights or relations in determining the ownership and extent of
ancestral domain;

c) The State shall recognize, respect and protect the rights of ICCs/IPs to preserve and
develop their cultures, traditions and institutions. It shall consider these rights in the
formulation of national laws and policies;

d) The State shall guarantee that members of the ICCs/IPs regardless of sex, shall equally
enjoy the full measure of human rights and freedoms without distinctions or discriminations;
 e) The State shall take measures, with the participation of the ICCs/IPs concerned, to protect
their rights and guarantee respect for their cultural integrity, and to ensure that members of
the ICCs/IPs benefit on an equal footing from the rights and opportunities which national
laws and regulations grant to other members of the population and

f) The State recognizes its obligations to respond to the strong expression of the ICCs/IPs for
cultural integrity by assuring maximum ICC/IP participation in the direction of education,
health, as well as other services of ICCs/IPs, in order to render such services more
responsive to the needs and desires of these communities.

Towards these ends, the State shall institute and establish the necessary mechanisms to enforce
and guarantee the realization of these rights, taking into consideration their customs, traditions,
values, beliefs, their rights to their ancestral domains.

CHAPTER II
DEFINITION OF TERMS

Section 3. Definition of Terms. - For purposes of this Act, the following terms shall mean:

a) Ancestral Domains - Subject to Section 56 hereof, refer to all areas generally belonging to
ICCs/IPs comprising lands,inland waters, coastal areas, and natural resources therein, held
under a claim of ownership, occupied or possessed by ICCs/IPs, themselves or through their
ancestors, communally or individually since time immemorial, continuously to the present
except when interrupted by war, force majeure or displacement by force, deceit, stealth or as
a consequence of government projects or any other voluntary dealings entered into by
government and private individuals, corporations, and which are necessary to ensure their
economic, social and cultural welfare. It shall include ancestral land, forests, pasture,
residential, agricultural, and other lands individually owned whether alienable and disposable
or otherwise, hunting grounds, burial grounds, worship areas, bodies of water, mineral and
other natural resources, and lands which may no longer be exclusively occupied by ICCs/IPs
but from which their traditionally had access to for their subsistence and traditional activities,
particularly the home ranges of ICCs/IPs who are still nomadic and/or shifting cultivators;

b) Ancestral Lands - Subject to Section 56 hereof, refers to land occupied, possessed and
utilized by individuals, families and clans who are members of the ICCs/IPs since time
immemorial, by themselves or through their predecessors-in-interest, under claims of
individual or traditional group ownership,continuously, to the present except when interrupted
by war, force majeure or displacement by force, deceit, stealth, or as a consequence of
government projects and other voluntary dealings entered into by government and private
individuals/corporations, including, but not limited to, residential lots, rice terraces or paddies,
private forests, swidden farms and tree lots;

c) Certificate of Ancestral Domain Title - refers to a title formally recognizing the rights of
possession and ownership of ICCs/IPs over their ancestral domains identified and delineated
in accordance with this law;

d) Certificate of Ancestral Lands Title - refers to a title formally recognizing the rights of
ICCs/IPs over their ancestral lands;

e) Communal Claims - refer to claims on land, resources and rights thereon, belonging to the
whole community within a defined territory
f) Customary Laws - refer to a body of written and/or unwritten rules, usages, customs and
practices traditionally and continually recognized, accepted and observed by respective
ICCs/IPs;

g) Free and Prior Informed Consent - as used in this Act shall mean the consensus of all
members of the ICCs/IPs to; be determined in accordance with their respective customary
laws and practices, free from any external manipulation, interference and coercion, and
obtained after fully disclosing the intent and scope of the activity, in a language an process
understandable to the community;

h) Indigenous Cultural Communities/Indigenous Peoples - refer to a group of people or

homogenous societies identified by self-ascription and ascription by other, who have
continuously lived as organized community on communally bounded and defined territory,
and who have, under claims of ownership since time immemorial, occupied, possessed
customs, tradition and other distinctive cultural traits, or who have, through resistance to
political, social and cultural inroads of colonization, non-indigenous religions and culture,
became historically differentiated from the majority of Filipinos. ICCs/IPs shall likewise
include peoples who are regarded as indigenous on account of their descent from the
populations which inhabited the country, at the time of conquest or colonization, or at the
time of inroads of non-indigenous religions and cultures, or the establishment of present
state boundaries, who retain some or all of their own social, economic, cultural and political
institutions, but who may have been displaced from their traditional domains or who may
have resettled outside their ancestral domains;

i) Indigenous Political Structure - refer to organizational and cultural leadership systems,

institutions, relationships, patterns and processed for decision-making and participation,
identified by ICCs/IPs such as, but not limited to, Council of Elders, Council of Timuays,
Bodong Holder, or any other tribunal or body of similar nature;

j) Individual Claims - refer to claims on land and rights thereon which have been devolved to
individuals, families and clans including, but not limited to, residential lots, rice terraces or
paddies and tree lots;

k) National Commission on Indigenous Peoples (NCIP) - refers to the office created under
this Act, which shall be under the Office of the President, and which shall be the primary
government agency responsible for the formulation and implementation of policies, plans
and programs to recognize, protect and promote the rights of ICCs/IPs;

l) Native Title - refers to pre-conquest rights to lands and domains which, as far back as
memory reaches, have been held under a claim of private ownership by ICCs/IPs, have
never been public lands and are thus indisputably presumed to have been held that way
since before the Spanish Conquest;

m) Nongovernment Organization - refers to a private, nonprofit voluntary organization that

has been organized primarily for the delivery of various services to the ICCs/IPs and has an
established track record for effectiveness and acceptability in the community where it serves;

n) People's Organization - refers to a private, nonprofit voluntary organization of members of

an ICC/IP which is accepted as representative of such ICCs/IPs;

o) Sustainable Traditional Resource Rights - refer to the rights of ICCs/IPs to sustainably

use,manage, protect and conserve a) land, air, water, and minerals; b) plants, animals and
 other organisms; c) collecting, fishing and hunting grounds; d) sacred sites; and e) other
areas of economic, ceremonial and aesthetic value in accordance with their indigenous
knowledge, beliefs, systems and practices; and

p) Time Immemorial - refers to a period of time when as far back as memory can go, certain
ICCs/IPs are known to have occupied, possessed in the concept of owner, and utilized a
defined territory devolved to them, by operation of customary law or inherited from their
ancestors, in accordance with their customs and traditions.

CHAPTER III
RIGHTS TO ANCESTRAL DOMAINS

Section 4. Concept of Ancestral Lands/Domains. - Ancestral lands/domains shall include such

concepts of territories which cover not only the physical environment but the total environment
including the spiritual and cultural bonds to the area which the ICCs/IPs possess, occupy and use
and to which they have claims of ownership.

Section 5. Indigenous Concept of Ownership. - Indigenous concept of ownership sustains the

view that ancestral domains and all resources found therein shall serve as the material bases of their
cultural integrity. The indigenous concept of ownership generally holds that ancestral domains are
the ICC's/IP's private but community property which belongs to all generations and therefore cannot
be sold, disposed or destroyed. It likewise covers sustainable traditional resource rights.

Section 6. Composition of Ancestral Lands/Domains. - Ancestral lands and domains shall

consist of all areas generally belonging to ICCs/IPs as referred under Sec. 3, items (a) and (b) of this
Act.

Section 7. Rights to Ancestral Domains. - The rights of ownership and possession of ICCs/IPs t
their ancestral domains shall be recognized and protected. Such rights shall include:

a. Rights of Ownership.- The right to claim ownership over lands, bodies of water

traditionally and actually occupied by ICCs/IPs, sacred places, traditional hunting and fishing
grounds, and all improvements made by them at any time within the domains;

b. Right to Develop Lands and Natural Resources. - Subject to Section 56 hereof, right to
develop, control and use lands and territories traditionally occupied, owned, or used; to
manage and conserve natural resources within the territories and uphold the responsibilities
for future generations; to benefit and share the profits from allocation and utilization of the
natural resources found therein; the right to negotiate the terms and conditions for the
exploration of natural resources in the areas for the purpose of ensuring ecological,
environmental protection and the conservation measures, pursuant to national and
customary laws; the right to an informed and intelligent participation in the formulation and
implementation of any project, government or private, that will affect or impact upon the
ancestral domains and to receive just and fair compensation for any damages which they
sustain as a result of the project; and the right to effective measures by the government to
prevent any interfere with, alienation and encroachment upon these rights;

c. Right to Stay in the Territories- The right to stay in the territory and not be removed
therefrom. No ICCs/IPs will be relocated without their free and prior informed consent, nor
through any means other than eminent domain. Where relocation is considered necessary
as an exceptional measure, such relocation shall take place only with the free and prior
informed consent of the ICCs/IPs concerned and whenever possible, they shall be
 guaranteed the right to return to their ancestral domains, as soon as the grounds for
relocation cease to exist. When such return is not possible, as determined by agreement or
through appropriate procedures, ICCs/IPs shall be provided in all possible cases with lands
of quality and legal status at least equal to that of the land previously occupied by them,
suitable to provide for their present needs and future development. Persons thus relocated
shall likewise be fully compensated for any resulting loss or injury;

d. Right in Case of Displacement. - In case displacement occurs as a result of natural

catastrophes, the State shall endeavor to resettle the displaced ICCs/IPs in suitable areas
where they can have temporary life support system: Provided, That the displaced ICCs/IPs
shall have the right to return to their abandoned lands until such time that the normalcy and
safety of such lands shall be determined: Provided, further, That should their ancestral
domain cease to exist and normalcy and safety of the previous settlements are not possible,
displaced ICCs/IPs shall enjoy security of tenure over lands to which they have been
resettled: Provided, furthermore, That basic services and livelihood shall be provided to them
to ensure that their needs are adequately addressed:

e. Right to Regulate Entry of Migrants. - Right to regulate the entry of migrant settlers and
organizations into the domains;

f. Right to Safe and Clean Air and Water. - For this purpose, the ICCs/IPs shall have access
to integrated systems for the management of their inland waters and air space;

g. Right to Claim Parts of Reservations. - The right to claim parts of the ancestral domains
which have been reserved for various purposes, except those reserved and intended for
common and public welfare and service; and

h. Right to Resolve Conflict. - Right to resolve land conflicts in accordance with customary
laws of the area where the land is located, and only in default thereof shall the complaints be
submitted to amicable settlement and to the Courts of Justice whenever necessary.

Section 8. Rights to Ancestral Lands. - The right of ownership and possession of the ICCs/IPs, to
their ancestral lands shall be recognized and protected.

a. Right to transfer land/property. - Such right shall include the right to transfer land or
property rights to/among members of the same ICCs/IPs, subject to customary laws and
traditions of the community concerned.

b. Right to Redemption. - In cases where it is shown that the transfer of land/property rights
by virtue of any agreement or devise, to a non-member of the concerned ICCs/IPs is tainted
by the vitiated consent of the ICCs/IPs,or is transferred for an unconscionable consideration
or price, the transferor ICC/IP shall have the right to redeem the same within a period not
exceeding fifteen (15) years from the date of transfer.

Section 9. Responsibilities of ICCs/IPs to their Ancestral Domains. - ICCs/IPs occupying a duly

certified ancestral domain shall have the following responsibilities:

a. Maintain Ecological Balance- To preserve, restore, and maintain a balanced ecology in

the ancestral domain by protecting the flora and fauna, watershed areas, and other reserves;
 b. Restore Denuded Areas- To actively initiate, undertake and participate in the reforestation
of denuded areas and other development programs and projects subject to just and
reasonable remuneration; and

c. Observe Laws- To observe and comply with the provisions of this Act and the rules and
regulations for its effective implementation.

Section 10. Unauthorized and Unlawful Intrusion. - Unauthorized and unlawful intrusion upon, or
use of any portion of the ancestral domain, or any violation of the rights herein before enumerated,
shall be punishable under this law. Furthermore, the Government shall take measures to prevent
non-ICCs/IPs from taking advantage of the ICCs/IPs customs or lack of understanding of laws to
secure ownership, possession of land belonging to said ICCs/IPs.

Section 11. Recognition of Ancestral Domain Rights. - The rights of ICCs/IPs to their ancestral
domains by virtue of Native Title shall be recognized and respected. Formal recognition, when
solicited by ICCs/IPs concerned, shall be embodied in a Certificate of Ancestral Domain Title
(CADT), which shall recognize the title of the concerned ICCs/IPs over the territories identified and
delineated.

Section 12. Option to Secure Certificate of Title under Commonwealth Act 141, as amended,
or the Land Registration Act 496. - Individual members of cultural communities, with respect to
individually-owned ancestral lands who, by themselves or through their predecessors-in -interest,
have been in continuous possession and occupation of the same in the concept of owner since the
immemorial or for a period of not less than thirty (30) years immediately preceding the approval of
this Act and uncontested by the members of the same ICCs/IPs shall have the option to secure title
to their ancestral lands under the provisions of Commonwealth Act 141, as amended, or the Land
Registration Act 496.

For this purpose, said individually-owned ancestral lands, which are agricultural in character and
actually used for agricultural, residential, pasture, and tree farming purposes, including those with a
slope of eighteen percent (18%) or more, are hereby classified as alienable and disposable
agricultural lands.

The option granted under this Section shall be exercised within twenty (20) years from the approval
of this Act.

CHAPTER IV
RIGHT TO SELF-GOVERNANCE AND EMPOWERMENT

Section 13. Self-Governance. - The State recognizes the inherent right of ICCs/IPs to self-
governance and self-determination and respects the integrity of their values, practices and
institutions. Consequently, the State shall guarantee the right of ICCs/IPs to freely pursue their
economic, social and cultural development.

Section 14. Support for Autonomous Regions. - The State shall continue to strengthen and
support the autonomous regions created under the Constitution as they may require or need. The
State shall likewise encourage other ICCs/IPs not included or outside Muslim Mindanao and the
Cordillera to use the form and content of their ways of life as may be compatible with the
fundamental rights defined in the Constitution of the Republic of the Philippines and other
internationally recognized human rights.
Section 15. Justice System, Conflict Resolution Institutions and Peace Building Processes. -
The ICCs/IPs shall have the right to use their own commonly accepted justice systems, conflict
resolution institutions, peace building processes or mechanisms and other customary laws and
practices within their respective communities and as may be compatible with the national legal
system and with internationally recognized human rights.

Section 16. Right to Participate in Decision -Making. - ICCs/IPs have the right to participate fully,
if they so choose, at all levels of decision-making in matters which may affect their rights, lives and
destinies through procedures determined by them as well as to maintain and develop their own
indigenous political structures. Consequently, the State shall ensure that the ICCs/IPs shall be given
mandatory representation in policy-making bodies and other local legislative councils.

Section 17. Right to Determine and Decide Priorities for Development. - The ICCs/IPs shall
have the right to determine and decide their own priorities for development affecting their lives,
beliefs, institutions, spiritual well-being, and the lands they own, occupy or use. They shall
participate in the formulation,implementation and evaluation of policies, plans and programs for
national, regional and local development which may directly affect them.

Section 18. Tribal Barangays. - The ICCs/IPs living in contiguous areas or communities where they
form the predominant population but which are located in municipalities, provinces or cities where
they do not constitute the majority of the population, may form or constitute a separate barangay in
accordance with the Local Government Code on the creation of tribal barangays.

Section 19. Role of Peoples Organizations. - The State shall recognize and respect the role of
independent ICCs/IPs organizations to enable the ICCs/IPs to pursue and protect their legitimate
and collective interests and aspirations through peaceful and lawful means.

Section 20. Means for Development /Empowerment of ICCs/IPs. - The Government shall

establish the means for the full development/empowerment of the ICCs/IPs own institutions and
initiatives and, where necessary, provide the resources needed therefor.

CHAPTER V
SOCIAL JUSTICE AND HUMAN RIGHTS

Section 21. Equal Protection and Non-discrimination of ICCs/IPs. - Consistent with the equal
protection clause of the Constitution of the Republic of the Philippines, the Charter of the United
Nations, the Universal Declaration of Human Rights including the Convention on the Elimination of
Discrimination Against Women and International Human Rights Law, the State shall, with due
recognition of their distinct characteristics and identity, accord to the members of the ICCs/IPs the
rights, protections and privileges enjoyed by the rest of the citizenry. It shall extend to them the same
employment rights, opportunities, basic services, educational and other rights and privileges
available to every member of the society. Accordingly, the State shall likewise ensure that the
employment of any form of force of coersion against ICCs/IPs shall be dealt with by law.

The State shall ensure that the fundamental human rights and freedoms as enshrined in the
Constitution and relevant international instruments are guaranteed also to indigenous women.
Towards this end, no provision in this Act shall be interpreted so as to result in the diminution of
rights and privileges already recognized and accorded to women under existing laws of general
application.

Section 22. Rights during Armed Conflict. - ICCs/IPs have the right to special protection and
security in periods of armed conflict. The State shall observe international standards, in particular,
the Fourth Geneva Convention of 1949, for the protection of civilian populations in circumstances of
emergency and armed conflict, and shall not recruit members of the ICCs/IPs against their will into
armed forces, and in particular, for the use against other ICCs/IPs; not recruit children of ICCs/IPs
into the armed forces under any circumstance; nor force indigenous individuals to abandon their
lands, territories and means of subsistence, or relocate them in special centers for military purposes
under any discriminatory condition.

Section 23. Freedom from Discrimination and Right to Equal Opportunity and Treatment. - It
shall be the right of the ICCs/IPs to be free from any form of discrimination, with respect to
recruitment and conditions of employment, such that they may enjoy equal opportunities as other
occupationally-related benefits, informed of their rights under existing labor legislation and of means
available to them for redress, not subject to any coercive recruitment systems, including bonded
labor and other forms of debt servitude; and equal treatment in employment for men and women,
including the protection from sexual harassment.

Towards this end, the State shall within the framework of national laws and regulations, and in
cooperation with the ICCs/IPs concerned, adopt special measures to ensure the effective protection
with regard to the recruitment and conditions of employment of persons belonging to these
communities, to the extent that they are not effectively protected by the laws applicable to workers in
general.

ICCs/IPs shall have the right to association and freedom for all trade union activities and the right to
conclude collective bargaining agreements with employers' conditions. They shall likewise have the
right not to be subject to working conditions hazardous to their health, particularly through exposure
to pesticides and other toxic substances.

Section 24. Unlawful Acts Pertaining to Employment. - It shall be unlawful for any person:

a. To discriminate against any ICC/IP with respect to the terms and conditions of
employment on account of their descent. Equal remuneration shall be paid to ICC/IP and
non-ICC/IP for work of equal value; and

b. To deny any ICC/IP employee any right or benefit herein provided for or to discharge them
for the purpose of preventing them from enjoying any of the rights or benefits provided under
this Act.

Section 25. Basic Services. - The ICC/IP have the right to special measures for the immediate,
effective and continuing improvement of their economic and social conditions, including in the areas
of employment, vocational training and retraining, housing, sanitation, health and social security.
Particular attention shall be paid to the rights and special needs of indigenous women, elderly,
youth, children and differently-abled persons. Accordingly, the State shall guarantee the right of
ICCs/IPs to government 's basic services which shall include, but not limited to water and electrical
facilities, education, health and infrastructure.

Section 26. Women. - ICC/IP women shall enjoy equal rights and opportunities with men, as
regards the social, economic, political and cultural spheres of life. The participation of indigenous
women in the decision-making process in all levels, as well as in the development of society, shall
be given due respect and recognition.

The State shall provide full access to education, maternal and child care, health and nutrition, and
housing services to indigenous women. Vocational, technical, professional and other forms of
training shall be provided to enable these women to fully participate in all aspects of social life. As far
as possible, the State shall ensure that indigenous women have access to all services in their own
languages.

Section 27. Children and Youth. - The State shall recognize the vital role of the children and youth
of ICCs/IPs in nation-building and shall promote and protect their physical, moral, spiritual, moral,
spiritual, intellectual and social well-being. Towards this end, the State shall support all government
programs intended for the development and rearing of the children and youth of ICCs/IPs for civic
efficiency and establish such mechanisms as may be necessary for the protection of the rights of the
indigenous children and youth.

Section 28. Integrated System of Education. - The State shall, through the NCIP, provide a
complete, adequate and integrated system of education, relevant to the needs of the children and
Young people of ICCs/IPs.

CHAPTER VI
CULTURAL INTEGRITY

Section 29. Protection of Indigenous Culture, traditions and institutions. - The state shall
respect, recognize and protect the right of the ICCs/IPs to preserve and protect their culture,
traditions and institutions. It shall consider these rights in the formulation of national plans and
policies.

Section 30. Educational Systems. - The State shall provide equal access to various cultural
opportunities to the ICCs/IPs through the educational system, public or cultural entities,
scholarships, grants and other incentives without prejudice to their right to establish and control their
educational systems and institutions by providing education in their own language, in a manner
appropriate to their cultural methods of teaching and learning. Indigenous children/youth shall have
the right to all levels and forms of education of the State.

Section 31. Recognition of Cultural Diversity. - The State shall endeavor to have the dignity and
diversity of the cultures, traditions, histories and aspirations of the ICCs/IPs appropriately reflected in
all forms of education, public information and cultural-educational exchange. Consequently, the
State shall take effective measures, in consultation with ICCs/IPs concerned, to eliminate prejudice
and discrimination and to promote tolerance, understanding and good relations among ICCs/IPs and
all segments of society. Furthermore, the Government shall take effective measures to ensure that
State-owned media duly reflect indigenous cultural diversity. The State shall likewise ensure the
participation of appropriate indigenous leaders in schools, communities and international cooperative
undertakings like festivals, conferences, seminars and workshops to promote and enhance their
distinctive heritage and values.

Section 32. Community Intellectual Rights. - ICCs/IPs have the right to practice and revitalize
their own cultural traditions and customs. The State shall preserve, protect and develop the past,
present and future manifestations of their cultures as well as the right to the restitution of cultural,
intellectual, religious, and spiritual property taken without their free and prior informed consent or in
violation of their laws, traditions and customs.

Section 33. Rights to Religious, Cultural Sites and Ceremonies. - ICCs/IPs shall have the right
to manifest, practice, develop teach their spiritual and religious traditions, customs and ceremonies;
the right to maintain, protect and have access to their religious and cultural sites; the right to use and
control of ceremonial object; and the right to the repatriation of human remains. Accordingly, the
State shall take effective measures, in cooperation with the burial sites, be preserved, respected and
protected. To achieve this purpose, it shall be unlawful to:
 a. Explore, excavate or make diggings on archeological sites of the ICCs/IPs for the purpose
of obtaining materials of cultural values without the free and prior informed consent of the
community concerned; and

b. Deface, remove or otherwise destroy artifacts which are of great importance to the
ICCs/IPs for the preservation of their cultural heritage.

Section 34. Right to Indigenous Knowledge Systems and Practices and to Develop own
Sciences and Technologies. - ICCs/IPs are entitled to the recognition of the full ownership and
control and protection of their cultural and intellectual rights. They shall have the right to special
measures to control, develop and protect their sciences, technologies and cultural manifestations,
including human and other genetic resources, seeds, including derivatives of these resources,
traditional medicines and health practices, vital medicinal plants, animals and minerals, indigenous
knowledge systems and practices, knowledge of the properties of fauna and flora, oral traditions,
literature, designs, and visual and performing arts.

Section 35. Access to Biological and Genetic Resources. - Access to biological and genetic
resources and to indigenous knowledge related to the conservation, utilization and enhancement of
these resources, shall be allowed within ancestral lands and domains of the ICCs/IPs only with a
free and prior informed consent of such communities, obtained in accordance with customary laws of
the concerned community.

Section 36. Sustainable Agro-Technical Development. - The State shall recognize the right of
ICCs/IPs to a sustainable agro-technological development and shall formulate and implement
programs of action for its effective implementation. The State shall likewise promote the bio-genetic
and resource management systems among the ICCs/IPs and shall encourage cooperation among
government agencies to ensure the successful sustainable development of ICCs/IPs.

Section 37. Funds for Archeological and Historical Sites. - The ICCs/IPs shall have the right to
receive from the national government all funds especially earmarked or allocated for the
management and preservation of their archeological and historical sites and artifacts with the
financial and technical support of the national government agencies.

CHAPTER VII
NATIONAL COMMISSION ON INDIGENOUS PEOPLES (NCIP)

Section 38. National Commission on Indigenous Cultural Communities /Indigenous Peoples

(NCCP). - to carry out the policies herein set forth, there shall be created the National Commission
on ICCs/IPs (NCIP), which shall be the primary government agency responsible for the formulation
and implementation of policies, plans and programs to promote and protect the rights and well-being
of the ICCs/IPs and the recognition of their ancestral domains as well as their rights thereto.

Section 39. Mandate. - The NCIP shall protect and promote the interest and well-being of the
ICCs/IPs with due regard to their beliefs, customs, traditions and institutions.

Section 40. Composition. - The NCIP shall be an independent agency under the Office of the
President and shall be composed of seven (7) Commissioners belonging to ICCs/IPs, one (1) of
whom shall be the Chairperson. The Commissioners shall be appointed by the President of the
Philippines from a list of recommendees submitted by authentic ICCs/IPs: Provided, That the seven
(7) Commissioners shall be appointed specifically from each of the following ethnographic areas:
Region I and the Cordilleras; Region II; the rest of Luzon; Island Groups including Mindoro, Palawan,
Romblon, Panay and the rest of the Visayas; Northern and Western Mindanao; Southern and
Eastern Mindanao; and Central Mindanao: Provided, That at least two (2) of the seven (7)
Commissioners shall be women.

Section 41. Qualifications, Tenure, Compensation. - The Chairperson and the six (6)
Commissioners must be natural born Filipino citizens, bonafide members of ICCs/IPs as certified by
his/her tribe, experienced in ethnic affairs and who have worked for at least ten (10) years with an
ICC/IP community and/or any government agency involved in ICC/IP, at least 35 years of age at the
time of appointment, and must be of proven honesty and integrity: Provided, That at least two (2) of
the seven (7) Commissioners shall be the members of the Philippine Bar: Provided, further, That the
members of the NCIP shall hold office for a period of three (3) years, and may be subject to re-
appointment for another term: Provided, furthermore, That no person shall serve for more than two
(2) terms. Appointment to any vacancy shall only be for the unexpired term of the predecessor and
in no case shall a member be appointed or designated in a temporary or acting capacity: Provided,
finally, That the Chairperson and the Commissioners shall be entitled to compensation in
accordance with the Salary Standardization Law.

Section 42. Removal from Office. - Any member of the NCIP may be removed from office by the
President, on his own initiative or upon recommendation by any indigenous community, before the
expiration of his term for cause and after complying with due process requirement of law.

Section 43. Appointment of Commissioners. - The President shall appoint the seven (7)
Commissioners of the NCIP within ninety (90) days from the effectivity of this Act.

Section 44. Powers and Functions. - To accomplish its mandate, the NCIP shall have the following
powers, jurisdiction and function:

a) To serve as the primary government agency through which ICCs/IPs can seek
government assistance and as the medium, thorough which such assistance may be
extended;

b) To review and assess the conditions of ICCs/IPs including existing laws and policies
pertinent thereto and to propose relevant laws and policies to address their role in national
development;

c) To formulate and implement policies, plans, programs and projects for the economic,
social and cultural development of the ICCs/IPs and to monitor the implementation thereof;

d) To request and engage the services and support of experts from other agencies of
government or employ private experts and consultants as may be required in the pursuit of
its objectives;

e) To issue certificate of ancestral land/domain title;

f) Subject to existing laws, to enter into contracts, agreements, or arrangement, with

government or private agencies or entities as may be necessary to attain the objectives of
this Act, and subject to the approval of the President, to obtain loans from government
lending institutions and other lending institutions to finance its programs;

g) To negotiate for funds and to accept grants, donations, gifts and/or properties in whatever
form and from whatever source, local and international, subject to the approval of the
President of the Philippines, for the benefit of ICCs/IPs and administer the same in
 accordance with the terms thereof; or in the absence of any condition, in such manner
consistent with the interest of ICCs/IPs as well as existing laws;

h) To coordinate development programs and projects for the advancement of the ICCs/IPs
and to oversee the proper implementation thereof;

i) To convene periodic conventions or assemblies of IPs to review, assess as well as

propose policies or plans;

j) To advise the President of the Philippines on all matters relating to the ICCs/IPs and to
submit within sixty (60) days after the close of each calendar year, a report of its operations
and achievements;

k) To submit to Congress appropriate legislative proposals intended to carry out the policies
under this Act;

l) To prepare and submit the appropriate budget to the Office of the President;

m) To issue appropriate certification as a pre-condition to the grant of permit, lease, grant, or

any other similar authority for the disposition, utilization, management and appropriation by
any private individual, corporate entity or any government agency, corporation or subdivision
thereof on any part or portion of the ancestral domain taking into consideration the
consensus approval of the ICCs/IPs concerned;

n) To decide all appeals from the decisions and acts of all the various offices within the
Commission:

o) To promulgate the necessary rules and regulations for the implementation of this Act;

p) To exercise such other powers and functions as may be directed by the President of the
Republic of the Philippines; and

q) To represent the Philippine ICCs/IPs in all international conferences and conventions

dealing with indigenous peoples and other related concerns.

Section 45. Accessibility and Transparency. - Subject to such limitations as may be provided by

law or by rules and regulations promulgated pursuant thereto, all official records, documents and
papers pertaining to official acts, transactions or decisions, as well as research data used as basis
for policy development of the Commission shall be made accessible to the public.

Section 46. Officers within the NCIP. - The NCIP shall have the following offices which shall be
responsible for the implementation of the policies herein after provided:

a. Ancestral Domains Office - The Ancestral Domain Office shall be responsible for the
identification, delineation and recognition of ancestral land/domains. It shall also be
responsible for the management of ancestral lands/domains in accordance with the master
plans as well as the implementation of the ancestral domain rights of the ICCs/IPs as
provided in Chapter III of this Act. It shall also issue, upon the free and prior informed
consent of the ICCs/IPs concerned, certification prior to the grant of any license, lease or
permit for the exploitation of natural resources affecting the interests of ICCs/IPs in
protecting the territorial integrity of all ancestral domains. It shall likewise perform such other
functions as the Commission may deem appropriate and necessary;

b. Office on Policy, Planning and Research - The Office on Policy, Planning and Research
shall be responsible for the formulation of appropriate policies and programs for ICCs/IPs
such as, but not limited to, the development of a Five-Year Master Plan for the ICCs/IPs.
Such plan shall undergo a process such that every five years, the Commission shall
endeavor to assess the plan and make ramifications in accordance with the changing
situations. The Office shall also undertake the documentation of customary law and shall
establish and maintain a Research Center that would serve as a depository of ethnographic
information for monitoring, evaluation and policy formulation. It shall assist the legislative
branch of the national government in the formulation of appropriate legislation benefiting
ICCs/IPs.

c. Office of Education, Culture and Health - The Office on Culture, Education and Health
shall be responsible for the effective implementation of the education, cultural and related
rights as provided in this Act. It shall assist, promote and support community schools, both
formal and non-formal, for the benefit of the local indigenous community, especially in areas
where existing educational facilities are not accessible to members of the indigenous group.
It shall administer all scholarship programs and other educational rights intended for ICC/IP
beneficiaries in coordination with the Department of Education, Culture and Sports and the
Commission on Higher Education. It shall undertake, within the limits of available
appropriation, a special program which includes language and vocational training, public
health and family assistance program and related subjects.

It shall also identify ICCs/IPs with potential training in the health profession and encourage
and assist them to enroll in schools of medicine, nursing, physical therapy and other allied
courses pertaining to the health profession.

Towards this end, the NCIP shall deploy a representative in each of the said offices who
shall personally perform the foregoing task and who shall receive complaints from the
ICCs/IPs and compel action from appropriate agency. It shall also monitor the activities of
the National Museum and other similar government agencies generally intended to manage
and preserve historical and archeological artifacts of the ICCs /IPs and shall be responsible
for the implementation of such other functions as the NCIP may deem appropriate and
necessary;

d. Office on Socio-Economic Services and Special Concerns - The Office on Socio-

Economic Services and Special Concerns shall serve as the Office through which the NCIP
shall coordinate with pertinent government agencies specially charged with the
implementation of various basic socio-economic services, policies, plans and programs
affecting the ICCs/IPs to ensure that the same are properly and directly enjoyed by them. It
shall also be responsible for such other functions as the NCIP may deem appropriate and
necessary;

e. Office of Empowerment and Human Rights - The Office of Empowerment and Human
Rights shall ensure that indigenous socio- political, cultural and economic rights are
respected and recognized. It shall ensure that capacity building mechanisms are instituted
and ICCs/IPs are afforded every opportunity, if they so choose, to participate in all level
decision-making. It shall likewise ensure that the basic human rights, and such other rights
as the NCIP may determine, subject to existing laws, rules and regulations are protected and
promoted;
 f. Administrative Office - The Administrative Office shall provide the NCIP with economical,
efficient and effective services pertaining to personnel, finance, records, equipment, security,
supplies, and related services. It shall also administer the Ancestral Domains Fund; and

g. Legal Affairs Office - There shall be a Legal Affairs Office which shall advice the NCIP on
all legal matters concerning ICCs/IPs and which shall be responsible for providing ICCs/IPs
with legal assistance in litigation involving community interest. It shall conduct preliminary
investigation on the basis of complaints filed by the ICCs/IPs against a natural or juridical
person believed to have violated ICCs/IPs rights. On the basis of its findings, it shall initiate
the filing of appropriate legal or administrative action to the NCIP.

Section 47. Other Offices. - The NCIP shall have the power to create additional offices as it may
deem necessary subject to existing rules and regulations.

Section 48. Regional and Field Offices. - Existing regional and field offices shall remain to function
under the strengthened organizational structure of the NCIP. Other field office shall be created
wherever appropriate and the staffing pattern thereof shall be determined by the NCIP: Provided,
That in provinces where there are ICCs/IPs but without field offices, the NCIP shall establish field
offices in said provinces.

Section 49. Office of the Executive Director. - The NCIP shall create the Office of the Executive
Director which shall serve as its secretariat. The office shall be headed by an Executive Director who
shall be appointed by the President of the Republic of the Philippines upon the recommendation of
the NCIP on a permanent basis. The staffing pattern of the office shall be determined by the NCIP
subject to existing rules and regulations.

Section 50. Consultative Body. - A body consisting of the traditional leaders, elders and
representatives from the women and youth sectors of the different ICCs/IPs shall be constituted by
the NCIP from the time to time to advise it on matters relating to the problems, aspirations and
interests of the ICCs/IPs.

CHAPTER VIII
DELINEATION AND RECOGNITION OF ANCESTRAL DOMAINS

Section 51. Delineation and Recognition of Ancestral Domains. - Self-delineation shall be

guiding principle in the identification and delineation of ancestral domains. As such, the ICCs/IPs
concerned shall have a decisive role in all the activities pertinent thereto. The Sworn Statement of
the Elders as to the Scope of the territories and agreements/pacts made with neighboring ICCs/IPs,
if any, will be essential to the determination of these traditional territories. The Government shall take
the necessary steps to identify lands which the ICCs/IPs concerned traditionally occupy and
guarantee effective protection of their rights of ownership and possession thereto. Measures shall be
taken in appropriate cases to safeguard the rights of the ICCs/IPs concerned to land which may no
longer be exclusively occupied by them, but to which they have traditionally had access for their
subsistence and traditional activities, particularly of ICCs/IPs who are still nomadic and/or shifting
cultivators.

Section 52. Delineation Process. - The identification and delineation of ancestral domains shall be
done in accordance with the following procedures:

a. Ancestral Domains Delineated Prior to this Act - The provisions hereunder shall not apply
to ancestral domains/lands already delineated according to DENR Administrative Order No.
2, series of 1993, nor to ancestral lands and domains delineated under any other
community/ancestral domain program prior to the enactment of his law. ICCs/IPs enactment
of this law shall have the right to apply for the issuance of a Certificate of Ancestral Domain
Title (CADT) over the area without going through the process outlined hereunder;

b. Petition for Delineation - The process of delineating a specific perimeter may be initiated
by the NCIP with the consent of the ICC/IP concerned, or through a Petition for Delineation
filed with the NCIP, by a majority of the members of the ICCs/IPs;

c. Delineation Paper - The official delineation of ancestral domain boundaries including

census of all community members therein, shall be immediately undertaken by the Ancestral
Domains Office upon filing of the application by the ICCs/IPs concerned. Delineation will be
done in coordination with the community concerned and shall at all times include genuine
involvement and participation by the members of the communities concerned;

d. Proof required - Proof of Ancestral Domain Claims shall include the testimony of elders or
community under oath, and other documents directly or indirectly attesting to the possession
or occupation of the area since time immemorial by such ICCs/IPs in the concept of owners
which shall be any one (1) of the following authentic documents:

1. Written accounts of the ICCs/IPs customs and traditions;

2. Written accounts of the ICCs/IPs political structure and institution;

3. Pictures showing long term occupation such as those of old improvements, burial
grounds, sacred places and old villages;

4. Historical accounts, including pacts and agreements concerning boundaries

entered into by the ICCs/IPs concerned with other ICCs/IPs;

5. Survey plans and sketch maps;

6. Anthropological data;

7. Genealogical surveys;

8. Pictures and descriptive histories of traditional communal forests and hunting

grounds;

9. Pictures and descriptive histories of traditional landmarks such as mountains,

rivers, creeks, ridges, hills, terraces and the like; and

10. Write-ups of names and places derived from the native dialect of the community.

e. Preparation of Maps - On the basis of such investigation and the findings of fact based
thereon, the Ancestral Domains Office of the NCIP shall prepare a perimeter map, complete
with technical descriptions, and a description of the natural features and landmarks
embraced therein;

f. Report of Investigation and Other Documents - A complete copy of the preliminary census
and a report of investigation, shall be prepared by the Ancestral Domains Office of the NCIP;
 g. Notice and Publication - A copy of each document, including a translation in the native
language of the ICCs/IPs concerned shall be posted in a prominent place therein for at least
fifteen (15) days. A copy of the document shall also be posted at the local, provincial and
regional offices of the NCIP, and shall be published in a newspaper of general circulation
once a week for two (2) consecutive weeks to allow other claimants to file opposition thereto
within fifteen (15) days from the date of such publication: Provided, That in areas where no
such newspaper exists, broadcasting in a radio station will be a valid substitute: Provided,
further, That mere posting shall be deemed sufficient if both newspaper and radio station are
not available;

h. Endorsement to NCIP - Within fifteen (15) days from publication, and of the inspection
process, the Ancestral Domains Office shall prepare a report to the NCIP endorsing a
favorable action upon a claim that is deemed to have sufficient proof. However, if the proof is
deemed insufficient, the Ancestral Domains Office shall require the submission of additional
evidence: Provided, That the Ancestral Domains Office shall reject any claim that is deemed
patently false or fraudulent after inspection and verification: Provided, further, That in case of
rejection, the Ancestral Domains Office shall give the applicant due notice, copy furnished all
concerned, containing the grounds for denial. The denial shall be appealable to the NCIP:
Provided, furthermore, That in cases where there are conflicting claims, the Ancestral
Domains Office shall cause the contending parties to meet and assist them in coming up with
a preliminary resolution of the conflict, without prejudice to its full adjudication according to
the selection below.

i. Turnover of Areas Within Ancestral Domains Managed by Other Government Agencies -

The Chairperson of the NCIP shall certify that the area covered is an ancestral domain. The
secretaries of the Department of Agrarian Reform, Department of Environment and Natural
Resources, Department of the Interior and Local Government, and Department of Justice,
the Commissioner of the National Development Corporation, and any other government
agency claiming jurisdiction over the area shall be notified thereof. Such notification shall
terminate any legal basis for the jurisdiction previously claimed;

j. Issuance of CADT - ICCs/IPs whose ancestral domains have been officially delineated and
determined by the NCIP shall be issued a CADT in the name of the community concerned,
containing a list of all those identified in the census; and

k. Registration of CADTs - The NCIP shall register issued certificates of ancestral domain
titles and certificates of ancestral lands titles before the Register of Deeds in the place where
the property is situated.

Section 53. Identification, Delineation and Certification of Ancestral Lands. -

a. The allocation of lands within any ancestral domain to individual or indigenous corporate
(family or clan) claimants shall be left to the ICCs/IPs concerned to decide in accordance
with customs and traditions;

b. Individual and indigenous corporate claimants of ancestral lands which are not within
ancestral domains, may have their claims officially established by filing applications for the
identification and delineation of their claims with the Ancestral Domains Office. An individual
or recognized head of a family or clan may file such application in his behalf or in behalf of
his family or clan, respectively;
 c. Proofs of such claims shall accompany the application form which shall include the
testimony under oath of elders of the community and other documents directly or indirectly
attesting to the possession or occupation of the areas since time immemorial by the
individual or corporate claimants in the concept of owners which shall be any of the authentic
documents enumerated under Sec. 52 (d) of this act, including tax declarations and proofs of
payment of taxes;

d. The Ancestral Domains Office may require from each ancestral claimant the submission of
such other documents, Sworn Statements and the like, which in its opinion, may shed light
on the veracity of the contents of the application/claim;

e. Upon receipt of the applications for delineation and recognition of ancestral land claims,
the Ancestral Domains Office shall cause the publication of the application and a copy of
each document submitted including a translation in the native language of the ICCs/IPs
concerned in a prominent place therein for at least fifteen (15) days. A copy of the document
shall also be posted at the local, provincial, and regional offices of the NCIP and shall be
published in a newspaper of general circulation once a week for two (2) consecutive weeks
to allow other claimants to file opposition thereto within fifteen (15) days from the date of
such publication: Provided, That in areas where no such newspaper exists, broadcasting in a
radio station will be a valid substitute: Provided, further, That mere posting shall be deemed
sufficient if both newspapers and radio station are not available

f. Fifteen (15) days after such publication, the Ancestral Domains Office shall investigate and
inspect each application, and if found to be meritorious, shall cause a parcellary survey of
the area being claimed. The Ancestral Domains office shall reject any claim that is deemed
patently false or fraudulent after inspection and verification. In case of rejection, the
Ancestral Domains office shall give the applicant due notice, copy furnished all concerned,
containing the grounds for denial. The denial shall be appealable to the NCIP. In case of
conflicting claims among individual or indigenous corporate claimants, the Ancestral domains
Office shall cause the contending parties to meet and assist them in coming up with a
preliminary resolution of the conflict, without prejudice to its full adjudication according to
Sec. 62 of this Act. In all proceedings for the identification or delineation of the ancestral
domains as herein provided, the Director of Lands shall represent the interest of the
Republic of the Philippines; and

g. The Ancestral Domains Office shall prepare and submit a report on each and every
application surveyed and delineated to the NCIP, which shall, in turn, evaluate or corporate
(family or clan) claimant over ancestral lands.

Section 54. Fraudulent Claims. - The Ancestral Domains Office may, upon written request from the
ICCs/IPs, review existing claims which have been fraudulently acquired by any person or
community. Any claim found to be fraudulently acquired by, and issued to, any person or community
may be cancelled by the NCIP after due notice and hearing of all parties concerned.

Section 55. Communal Rights. - Subject to Section 56 hereof, areas within the ancestral domains,
whether delineated or not, shall be presumed to be communally held: Provide, That communal rights
under this Act shall not be construed as co-ownership as provided in Republic Act. No. 386,
otherwise known as the New Civil Code.

Section 56. Existing Property Rights Regimes. - Property rights within the ancestral domains
already existing and/or vested upon effectivity of this Act, shall be recognized and respected.
Section 57. Natural Resources within Ancestral Domains. - The ICCs/IPs shall have the priority
rights in the harvesting, extraction, development or exploitation of any natural resources within the
ancestral domains. A non-member of the ICCs/IPs concerned may be allowed to take part in the
development and utilization of the natural resources for a period of not exceeding twenty-five (25)
years renewable for not more than twenty-five (25) years: Provided, That a formal and written
agreement is entered into with the ICCs/IPs concerned or that the community, pursuant to its own
decision making process, has agreed to allow such operation: Provided, finally, That the all
extractions shall be used to facilitate the development and improvement of the ancestral domains.

Section 58. Environmental Consideration. - Ancestral domains or portion thereof, which are found
necessary for critical watersheds, mangroves wildlife sanctuaries, wilderness, protected areas, forest
cover, or reforestation as determined by the appropriate agencies with the full participation of the
ICCs/IPs concerned shall be maintained, managed and developed for such purposes. The ICCs/IPs
concerned shall be given the responsibility to maintain, develop, protect and conserve such areas
with the full and effective assistance of the government agencies. Should the ICCs/IPs decide to
transfer the responsibility over the areas, said decision must be made in writing. The consent of the
ICCs/IPs should be arrived at in accordance with its customary laws without prejudice to the basic
requirement of the existing laws on free and prior informed consent: Provided, That the transfer shall
be temporary and will ultimately revert to the ICCs/IPs in accordance with a program for technology
transfer: Provided, further, That no ICCs/IPs shall be displaced or relocated for the purpose
enumerated under this section without the written consent of the specific persons authorized to give
consent.

Section 59. Certification Precondition. - all department and other governmental agencies shall
henceforth be strictly enjoined from issuing, renewing, or granting any concession, license or lease,
or entering into any production-sharing agreement, without prior certification from the NCIP that the
area affected does not overlap with any ancestral domain. Such certificate shall only be issued after
a field-based investigation is conducted by the Ancestral Domain Office of the area concerned:
Provided, That no certificate shall be issued by the NCIP without the free and prior informed and
written consent of the ICCs/IPs concerned: Provided, further, That no department, government
agency or government-owned or -controlled corporation may issue new concession, license, lease,
or production sharing agreement while there is pending application CADT: Provided, finally, That the
ICCs/IPs shall have the right to stop or suspend, in accordance with this Act, any project that has not
satisfied the requirement of this consultation process.

Section 60. Exemption from Taxes. - All lands certified to be ancestral domains shall be exempt
from real property taxes, specially levies, and other forms of exaction except such portion of the
ancestral domains as are actually used for large-scale agriculture, commercial forest plantation and
residential purposes and upon titling by other by private person: Provided, that all exactions shall be
used to facilitate the development and improvement of the ancestral domains.

Section 61. Temporary Requisition Powers. - Prior to the establishment of an institutional

surveying capacity whereby it can effectively fulfill its mandate, but in no case beyond three (3) years
after its creation, the NCIP is hereby authorized to request the Department of Environment and
Natural Resources (DENR) survey teams as well as other equally capable private survey teams,
through a Memorandum of Agreement (MOA), to delineate ancestral domain perimeters. The DENR
Secretary shall accommodate any such request within one (1) month of its issuance: Provided, That
the Memorandum of Agreement shall stipulate, among others, a provision for technology transfer to
the NCIP.

Section 62. Resolution of Conflicts. - In cases of conflicting interest, where there are adverse
claims within the ancestral domains as delineated in the survey plan, and which cannot be resolved,
the NCIP shall hear and decide, after notice to the proper parties, the disputes arising from the
delineation of such ancestral domains: Provided, That if the dispute is between and/or among
ICCs/IPs regarding the traditional boundaries of their respective ancestral domains, customary
process shall be followed. The NCIP shall promulgate the necessary rules and regulations to carry
out its adjudicatory functions: Provided, further, That in any decision, order, award or ruling of the
NCIP on any ancestral domain dispute or on any matter pertaining to the application,
implementation, enforcement and interpretation of this Act may be brought for Petition for Review to
the Court of Appeals within fifteen (15) days from receipt of a copy thereof.

Section 63. Applicable Laws. - Customary laws, traditions and practices of the ICCs/IPs of the land
where the conflict arises shall be applied first with respect to property rights, claims and ownerships,
hereditary succession and settlement of land disputes. Any doubt or ambiguity in the application of
laws shall be resolved in favor of the ICCs/IPs.

Section 64. Remedial Measures. - Expropriation may be resorted to in the resolution of conflicts of

interest following the principle of the "common good". The NCIP shall take appropriate legal action
for the cancellation of officially documented titles which were acquired illegally: Provided, That such
procedure shall ensure that the rights of possessors in good faith shall be respected: Provided,
further, That the action for cancellation shall be initiated within two (2) years from the effectivity of
this Act: Provided, finally, That the action for reconveyance shall be a period of ten (10) years in
accordance with existing laws.

CHAPTER IX
JURISDICTION AND PROCEDURES FOR ENFORCEMENT OF RIGHTS

Section 65. Primary of Customary Laws and Practices. - When disputes involve ICCs/IPs,
customary laws and practices shall be used to resolve the dispute.

Section 66. Jurisdiction of the NCIP. - The NCIP, through its regional offices, shall have
jurisdiction over all claims and disputes involving rights of ICCs/IPs; Provided, however, That no
such dispute shall be brought to the NCIP unless the parties have exhausted all remedies provided
under their customary laws. For this purpose, a certification shall be issued by the Council of
Elders/Leaders who participated in the attempt to settle the dispute that the same has not been
resolved, which certification shall be a condition precedent to the filing of a petition with the NCIP.

Section 67. Appeals to the Court of Appeals. - Decisions of the NCIP shall be appealable to the
Court of Appeals by way of a petition for review.

Section 68. Execution of Decisions, Awards, Orders. - Upon expiration of the period here
provided and no appeal is perfected by any of the contending parties, the Hearing Officer of the
NCIP, on its own initiative or upon motion by the prevailing party, shall issue a writ of execution
requiring the sheriff or the proper officer to execute final decisions, orders or awards of the Regional
Hearing Officer of the NCIP.

Section 69. Quasi-Judicial Powers of the NCIP. - The NCIP shall have the power and authority:

a. To promulgate rules and regulations governing the hearing and disposition of cases filed
before it as well as those pertaining to its internal functions and such rules and regulations
as may be necessary to carry out the purposes of this Act;
 b. To administer oaths, summon the parties to a controversy, issue subpoenas requiring the
attendance and testimony of witnesses or the production of such books, papers, contracts,
records, agreements and other document of similar nature as may be material to a just
determination of the matter under investigation or hearing conducted in pursuance of this
Act;

c. To hold any person in contempt, directly or indirectly, and impose appropriate penalties
therefor; and

d. To enjoin any or all acts involving or arising from any case pending therefore it which, if
not restrained forthwith, may cause grave or irreparable damage to any of the parties to the
case or seriously affect social or economic activity.

Section 70. No restraining Order or Preliminary Injunction. - No inferior court of the Philippines
shall have the jurisdiction to issue any restraining order or writ of preliminary injunction against the
NCIP or any of its duly authorized or designated offices in any case, dispute or controversy to, or
interpretation of this Act and other pertinent laws relating to ICCs/IPs and ancestral domains.

CHAPTER X
ANCESTRAL DOMAINS FUND

Section 71. Ancestral Domains Fund. - There is hereby created a special fund, to be known as the
Ancestral Domains Fund, an initial amount of the One Hundred thirty million pesos(P130,000,000) to
cover compensation for expropriated lands, delineation and development of ancestral domains. An
amount of Fifty million pesos (P50,000,000) shall be sourced from the gross income of the Philippine
Charity Sweepstakes Office (PCSO) from its lotto operation, Ten millions pesos (P10,000,000) from
the gross receipts of the travel tax of the preceding year, the fund of the Social Reform Council
intended for survey and delineation of ancestral lands/domains, and such other source as the
government may be deem appropriate. Thereafter such amount shall be included in the annual
General Appropriations Act. Foreign as well as local funds which are made available for the
ICCs/IPs through the government of the Philippines shall be coursed through the NCIP. The NCIP
may also solicit and receive donations, endowments shall be exempted from income or gift taxes
and all other taxes, charges or fees imposed by the government or any political subdivision or
instrumentality thereof.

CHAPTER XI
PENALTIES

Section 72. Punishable Acts and Applicable Penalties. - Any person who commits violation of
any of the provisions of this Act, such as, but not limited to, authorized and/or unlawful intrusion
upon any ancestral lands or domains as stated in Sec. 10, Chapter III, or shall commit any of the
prohibited acts mentioned in Sections 21 and 24, Chapter V, Section 33, Chapter VI hereof, shall be
punished in accordance with the customary laws of the ICCs/IPs concerned: Provided, That no such
penalty shall be cruel, degrading or inhuman punishment: Provided, further, That neither shall the
death penalty or excessive fines be imposed. This provision shall be without prejudice to the right of
any ICCs/IPs to avail of the protection of existing laws. In which case, any person who violates any
provision of this Act shall, upon conviction, be punished by imprisonment of not less than nine (9)
months but not more than twelve (12) years or a fine not less than One hundred thousand pesos
(P100,000) nor more than Five hundred thousand pesos (P500,000) or both such fine and
imprisonment upon the discretion of the court. In addition, he shall be obliged to pay to the ICCs/IPs
concerned whatever damage may have been suffered by the latter as a consequence of the unlawful
act.
Section 73. Persons Subject to Punishment. - If the offender is a juridical person, all officers such
as, but not limited to, its president, manager, or head of office responsible for their unlawful act shall
be criminally liable therefor, in addition to the cancellation of certificates of their registration and/or
license: Provided, That if the offender is a public official, the penalty shall include perpetual
disqualification to hold public office.

CHAPTER XII
MERGER OF THE OFFICE FOR NORTHERN CULTURAL COMMUNITIES (ONCC) AND THE
OFFICE FOR SOUTHERN CULTURAL COMMUNITIES (OSCC)

Section 74. Merger of ONCC/OSCC. - The Office for Northern Cultural Communities (ONCC) and
the Office of Southern Cultural Communities (OSCC), created under Executive Order Nos. 122-B
and 122-C respectively, are hereby merged as organic offices of the NCIP and shall continue to
function under a revitalized and strengthened structures to achieve the objectives of the NCIP:
Provided, That the positions of Regional Directors and below, are hereby phased-out upon the
effectivity of this Act: Provided, further, That officials and employees of the phased-out offices who
may be qualified may apply for reappointment with the NCIP and may be given prior rights in the
filing up of the newly created positions of NCIP, subject to the qualifications set by the Placement
Committee: Provided, furthermore, That in the case where an indigenous person and a non-
indigenous person with similar qualifications apply for the same position, priority shall be given to the
former. Officers and employees who are to be phased-out as a result of the merger of their offices
shall be entitled to gratuity a rate equivalent to one and a half (1 1/2) months salary for every year of
continuous and satisfactory service rendered or the equivalent nearest fraction thereof favorable to
them on the basis of the highest salary received. If they are already entitled to retirement benefits or
the gratuity herein provided. Officers and employees who may be reinstated shall refund such
retirement benefits or gratuity received: Provided, finally That absorbed personnel must still meet the
qualifications and standards set by the Civil Service and the Placement Committee herein created.

Section 75. Transition Period. - The ONCC/OSCC shall have a period of six (6) months from the
effectivity of this Act within which to wind up its affairs and to conduct audit of its finances.

Section 76. Transfer of Assets/Properties. - All real and personal properties which are vested in,
or belonging to, the merged offices as aforestated shall be transferred to the NCIP without further
need of conveyance, transfer or assignment and shall be held for the same purpose as they were
held by the former offices: Provided, That all contracts, records and documents shall be transferred
to the NCIP. All agreements and contracts entered into by the merged offices shall remain in full
force and effect unless otherwise terminated, modified or amended by the NCIP.

Section 77. Placement Committee. - Subject to rules on government reorganization, a Placement

Committee shall be created by the NCIP, in coordination with the Civil Service Commission, which
shall assist in the judicious selection and placement of personnel in order that the best qualified and
most deserving persons shall be appointed in the reorganized agency. The placement Committee
shall be composed of seven (7) commissioners and an ICCs/IPs representative from each of the first
and second level employees association in the Offices for Northern and Southern Cultural
Communities (ONCC/OSCC), nongovernment organizations (NGOs) who have served the
community for at least five (5) years and peoples organizations (POs) with at least five (5) years of
existence. They shall be guided by the criteria of retention and appointment to be prepared by the
consultative body and by the pertinent provisions of the civil service law.

CHAPTER XIII
FINAL PROVISIONS
Section 78. Special Provision. - The City of Baguio shall remain to be governed by its Chapter and
all lands proclaimed as part of its townsite reservation shall remain as such until otherwise
reclassified by appropriate legislation: Provided, That prior land rights and titles recognized and/or
required through any judicial, administrative or other processes before the effectivity of this Act shall
remain valid: Provided, further, That this provision shall not apply to any territory which becomes part
of the City of Baguio after the effectivity of this Act.

Section 79. Appropriations. - The amount necessary to finance the initial implementation of this
Act shall be charged against the current year's appropriation of the ONCC and the OSCC.
Thereafter, such sums as may be necessary for its continued implementation shall be included in the
annual General Appropriations Act.

Section 80. Implementing Rules and Regulations. - Within sixty (60) days immediately after
appointment, the NCIP shall issue the necessary rules and regulations, in consultation with the
Committees on National Cultural Communities of the House of Representatives and the Senate, for
the effective implementation of this Act.

Section 81. Saving Clause. - This Act will not in any manner adversely affect the rights and benefits
of the ICCs/IPs under other conventions, recommendations, international treaties, national laws,
awards, customs and agreements.

Section 82. Separability Clause. - In case any provision of this Act or any portion thereof is
declared unconstitutional by a competent court, other provisions shall not be affected thereby.

Section 83. Repealing Clause. - Presidential Decree NO. 410, Executive Order Nos. 122-B and
122-C, and all other laws, decrees, orders, rules and regulations or parts thereof inconsistent with
this Act are hereby repealed or modified accordingly.

Section 84. Effectivity. - This Act shall take effect fifteen days (15) days upon its publication in the
Official Gazette or in any two (2) newspapers of general circulation.

Approved: 29 October 1997.

REPUBLIC ACT No. 10121

AN ACT STRENGTHENING THE PHILIPPINE DISASTER RISK REDUCTION AND

MANAGEMENT SYSTEM, PROVIDING FOR THE NATIONAL DISASTER RISK REDUCTION
AND MANAGEMENT FRAMEWORK AND INSTITUTIONALIZING THE NATIONAL DISASTER
RISK REDUCTION AND MANAGEMENT PLAN, APPROPRIATING FUNDS THEREFOR AND
FOR OTHER PURPOSES.

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

Section 1. Title. - This Act shall be known as the "Philippine Disaster Risk Reduction and
Management Act of 2010".

Section 2. Declaration of Policy. - It shall be the policy of the State to:

(a) Uphold the people's constitutional rights to life and property by addressing the root
causes of vulnerabilities to disasters, strengthening the country's institutional capacity for
disaster risk reduction and management and building the resilience of local communities to
disasters including climate change impacts;

(b) Adhere to and adopt the universal norms, principles and standards of humanitarian
assistance and the global effort on risk reduction as concrete expression of the country's
commitment to overcome human sufferings due to recurring disasters;

(c) Incorporate internationally accepted principles of disaster risk management in the

creation and implementation of national, regional and local sustainable development and
poverty reduction strategies, policies, plans and budgets;

(d) Adopt a disaster risk reduction and management approach that is holistic,
comprehensive, integrated, and proactive in lessening the socioeconomic and environmental
impacts of disasters including climate change, and promote the involvement and
participation of all sectors and all stakeholders concerned, at all levels, especially the local
community;

(e) Develop, promote, and implement a comprehensive National Disaster Risk Reduction
and Management Plan (NDRRMP) that aims to strengthen the capacity of the national
government and the local government units (LGUs), together with partner stakeholders, to
build the disaster resilience of communities, and' to institutionalize arrangements and
measures for reducing disaster risks, including projected climate risks, and enhancing
disaster preparedness and response capabilities at all levels;

(f) Adopt and implement a coherent, comprehensive, integrated, efficient and responsive
disaster risk reduction program incorporated in the development plan at various levels of
government adhering to the principles of good governance such as transparency and
accountability within the context of poverty alleviation and environmental protection;

(g) Mainstream disaster risk reduction and climate change in development processes such
as policy formulation, socioeconomic development planning, budgeting, and governance,
particularly in the areas of environment, agriculture, water, energy, health, education, poverty
reduction, land-use and urban planning, and public infrastructure and housing, among
others;

(h) Institutionalize the policies, structures, coordination mechanisms and programs with
continuing budget appropriation on disaster risk reduction from national down to local levels
towards building a disaster-resilient nation and communities;

(i) Mainstream disaster risk reduction into the peace process and conflict resolution
approaches in order to minimize loss of lives and damage to property, and ensure that
communities in conflict zones can immediately go back to their normal lives during periods of
intermittent conflicts;

(j) Ensure that disaster risk reduction and climate change measures are gender responsive,
sensitive to indigenous know ledge systems, and respectful of human rights;

(k) Recognize the local risk patterns across the country and strengthen the capacity of LGUs
for disaster risk reduction and management through decentralized powers, responsibilities,
and resources at the regional and local levels;
 (l) Recognize and strengthen the capacities of LGUs and communities in mitigating and
preparing for, responding to, and recovering from the impact of disasters;

(m) Engage the participation of civil society organizations (CSOs), the private sector and
volunteers in the government's disaster risk reduction programs towards complementation of
resources and effective delivery of services to the Citizenry;

(n) Develop and strengthen the capacities of vulnerable and marginalized groups to mitigate,
prepare for, respond to, and recover from the effects of disasters;

(o) Enhance and implement a program where humanitarian aid workers, communities, health
professionals, government aid agencies, donors, and the media are educated and trained on
how they can actively support breastfeeding before and during a disaster and/or an
emergency; and

(p) Provide maximum care, assistance and services to individuals and families affected by
disaster, implement emergency rehabilitation projects to lessen the impact of disaster, and
facilitate resumption of normal social and economic activities.

Section 3. Definition of Terms. - For purposes of this Act, the following shall refer to:

(a) "Adaptation" - the adjustment in natural or human systems in response to actual or

expected climatic stimuli or their effects, which moderates harm or exploits beneficial
opportunities.

(b) "Capacity" - a combination of all strengths and resources available within a community,

society or organization that can reduce the level of risk, or effects of a disaster. Capacity may
include infrastructure and physical means, institutions, societal coping abilities, as well as
human knowledge, skills and collective attributes such as social relationships, leadership and
management. Capacity may also be described as capability.

(c) "Civil Society Organizations" Or "CSOs" - non-state actors whose aims are neither to
generate profits nor to seek governing power. CSOs unite people to advance shared goals
and interests. They have a presence in public life, expressing the interests and values of
their members or others, and are based on ethical, cultural, scientific, religious or
philanthropic considerations. CSOs include nongovernment organizations (NGOs),
professional associations, foundations, independent research institutes, community-based
organizations (CBOs), faith-based organizations, people's organizations, social movements,
and labor unions.

(d) "Climate Change" - a change in climate that can' be identified by changes in the mean
and/or variability of its properties and that persists for an extended period typically decades
or longer, whether due to natural variability or as a result of human activity.

(e) "Community-Based Disaster Risk Reduction and Management" or "CBDRRM" - a

process of disaster risk reduction and management in which at risk communities are actively
engaged in the identification, analysis, treatment, monitoring and evaluation of disaster risks
in order to reduce their vulnerabilities and enhance their capacities, and where the people
are at the heart of decision-making and implementation of disaster risk reduction and
management activities.
(f) "Complex Emergency" - a form of human-induced emergency in which the cause of the
emergency as well as the assistance to the afflicted IS complicated by intense level of
political considerations.

(g) "Contingency Planning" - a management process that analyzes specific potential events

or emerging situations that might threaten society or the environment and establishes
arrangements in advance to enable timely, effective and appropriate responses to such
events and situations.

(h) "Disaster" - a serious disruption of the functioning of a community or a society involving

widespread human, material, economic or environmental losses and impacts, which exceeds
the ability of the affected community or society to cope using its own resources. Disasters
are often described as a result of the combination of: the exposure to a hazard; the
conditions of vulnerability that are present; and insufficient capacity or measures to reduce or
cope with the potential negative consequences, Disaster impacts may include loss of life,
injury, disease and other negative effects on human, physical, mental and social well-being,
together with damage to property, destruction of assets, loss of services, Social and
economic disruption and environmental degradation. 1avvphi1

(i) "Disaster Mitigation" - the lessening or limitation of the adverse impacts of hazards and
related disasters. Mitigation measures encompass engineering techniques and hazard-
resistant construction as well as improved environmental policies and public awareness.

(j) "Disaster Preparedness" - the knowledge and capacities developed by governments,

professional response and recovery organizations, communities and individuals to effectively
anticipate, respond to, and recover from, the Impacts of likely, imminent or current hazard
events or conditions. Preparedness action is carried out within the context of disaster risk
reduction and management and aims to build the capacities needed to efficiently manage all
types of emergencies and achieve orderly transitions from response to sustained recovery.
Preparedness is based on a sound analysis of disaster risk and good linkages with early
warning systems, and includes such activities as contingency planning, stockpiling of
equipment and supplies, the development of arrangements for coordination, evacuation and
public information, and associated training and field exercises. These must be supported by
formal institutional, legal and budgetary capacities.

(k) "Disaster Prevention" - the outright avoidance of adverse impacts of hazards and related
disasters. It expresses the concept and intention to completely avoid potential adverse
impacts through action taken in advance such as construction of dams or embankments that
eliminate flood risks, land-use regulations that do not permit any settlement in high-risk
zones, and seismic engineering designs that ensure the survival and function of a critical
building in any likely earthquake.

(l) "Disaster Response" - the provision of emergency services and public assistance during
or immediately after a disaster in order to save lives, reduce health impacts, ensure public
safety and meet the basic subsistence needs of the people affected. Disaster response is
predominantly focused on immediate and short-term needs and is sometimes called
"disaster relief".

(m) "Disaster Risk" - the potential disaster losses in lives, health status, livelihood, assets
and services, which could occur to a particular community or a Society over some specified
future time period.
(n) "Disaster Risk Reduction" - the concept and practice of reducing disaster risks through
systematic efforts to analyze and manage the causal factors of disasters, including through
reduced exposures to hazards, lessened vulnerability of people and property, wise
management of land and the environment, and improved preparedness for adverse events.

(o) "Disaster Risk Reduction and Management" - the systematic process of using

administrative directives, organizations, and operational skills and capacities to implement
strategies, policies and improved coping capacities in order to lessen the adverse impacts of
hazards and the possibility of disaster. Prospective disaster risk reduction and management
refers to risk reduction and management activities that address and seek to avoid the
development of new or increased disaster risks, especially if risk reduction policies are not
put m place.

(p) "Disaster Risk Reduction and Management Information System" - a specialized database

which contains, among others, information on disasters and their human material, economic
and environmental impact, risk assessment and mapping and vulnerable groups.

(q) "Early Warning System" - the set of capacities needed to generate and disseminate
timely and meaningful warning information to enable individuals, communities and
organizations threatened by a hazard to prepare and to act appropriately and in sufficient
time to reduce the possibility of harm or loss. A people-centered early warning system
necessarily comprises four (4) key elements: knowledge of the risks; monitoring, analysis
and forecasting of the hazards; communication or dissemination of alerts and warnings; and
local capabilities to respond to the warnings received. The expression "end-to-end warning
system" is also used to emphasize that warning systems need to span all steps from hazard
detection to community response.

(r) "Emergency" - unforeseen or sudden occurrence, especially danger, demanding

immediate action.

(s) "Emergency Management" - the organization and management of resources and

responsibilities for addressing all aspects of emergencies, in particular preparedness,
response and initial recovery steps.

(t) "Exposure" - the degree to which the elements at risk are likely to experience hazard
events of different magnitudes.

(u) "Geographic Information System" - a database which contains, among others, geo-

hazard assessments, information on climate change, and climate risk reduction and
management.

(v) "Hazard" - a dangerous phenomenon, substance, human activity or condition that may

cause loss of life, injury or other health impacts, property damage, loss of livelihood and
services, social and economic disruption, or environmental damage.

(w) "Land-Use Planning" - the process undertaken by public authorities to identify, evaluate

and decide on different options for the use of land, including consideration of long-term
economic, social and environmental objectives and the implications for different communities
and interest groups, and the subsequent formulation and promulgation of plans that describe
the permitted or acceptable uses.
(x) "Mitigation" - structural and non-structural measures undertaken to limit the adverse
impact of natural hazards, environmental degradation, and technological hazards and to
ensure the ability of at-risk communities to address vulnerabilities aimed at minimizing the
impact of disasters. Such measures include, but are not limited to, hazard-resistant
construction and engineering works, the formulation and implementation of plans, programs,
projects and activities, awareness raising, knowledge management, policies on land-use and
resource management, as well as the enforcement of comprehensive land-use planning,
building and safety standards, and legislation.

(y) "National Disaster Risk Reduction and Management Framework" or "NDRRMF" -

provides for comprehensive, all hazards, multi-sectoral, inter-agency and community-based
approach to disaster risk reduction and management.

(z) "National Disaster Risk Reduction and Management Plan" or "NDRRMP" - the document
to be formulated and implemented by the Office of Civil Defense (OCD) that sets out goals
and specific objectives for reducing disaster risks together with related actions to accomplish
these objectives.

The NDRRMP shall provide for the identification of hazards, vulnerabilities and risks to 'be
managed at the national level; disaster risk reduction and management approaches and
strategies to be applied m managing said hazards and risks; agency roles, responsibilities
and lines of authority at all government levels; and vertical and horizontal coordination of
disaster risk reduction and management in the pre-disaster and post-disaster phases. It shall
be in conformity with the NDRRMF.

(aa) "Post-Disaster Recovery" - the restoration and improvement where appropriate, of

facilities, livelihood and living conditions. of disaster-affected communities, including efforts
to reduce disaster risk factors, in accordance with the principles of "build back better".

(bb) "Preparedness" - pre-disaster actions and measures being undertaken within the

context of disaster risk reduction and management and are based on sound risk analysis as
well as pre-disaster activities to avert or minimize loss of life and property such as, but not
limited to, community organizing, training, planning, equipping, stockpiling, hazard mapping,
insuring of assets, and public information and education initiatives. This also includes the
development/enhancement of an overall preparedness strategy, policy, institutional
structure, warning and forecasting capabilities, and plans that define measures geared to
help at-risk communities safeguard their lives and assets by being alert to hazards and
taking appropriate action in the face of an Imminent threat or an actual disaster.

(cc) "Private Sector" - the key actor in the realm of the economy where the central social
concern and process are the mutually beneficial production and distribution of goods and
services to meet the physical needs of human beings. The private sector comprises private
corporations, households and nonprofit institutions serving households.

(dd) "Public Sector Employees" - all persons in the civil service.

(ee) "Rehabilitation" - measures that ensure the ability of affected communities/areas to

restore their normal level of functioning by rebuilding livelihood and damaged infrastructures
and increasing the communities' organizational capacity.

(ff) "Resilience" - the ability of a system, community or society exposed to hazards to resist,

absorb, accommodate and recover from the effects of a hazard in a timely and efficient
manner, including through the preservation and restoration of its essential basic structures
and functions.

(gg) "Response" - any concerted effort by two (2) or more agencies, public or private, to
provide assistance or intervention during or immediately after a disaster to meet the life
preservation and basic subsistence needs of those people affected and in the restoration of
essential public activities and facilities.

(hh) "Risk" - the combination of the probability of an event and its negative consequences.

(ii) "Risk Assessment" - a methodology to determine the nature and extent of risk by

analyzing potential hazards and evaluating existing conditions of vulnerability that together
could potentially harm exposed people, property, services, livelihood and the environment on
which they depend. Risk assessments with associated risk mapping include: a review of the
technical characteristics of hazards such as their location, intensity, frequency and
probability; the analysis of exposure and vulnerability including the physical, social, health,
economic and environmental dimensions; and the evaluation of the effectiveness of
prevailing and alternative coping capacities in respect to likely risk scenarios.

(jj) "Risk Management" - the systematic approach and practice of managing uncertainty to

minimize potential harm and loss. It comprises risk assessment and analysis, and the
implementation of strategies and specific actions to control, reduce and transfer risks. It is
widely practiced by organizations to minimize risk in investment decisions and to address
operational risks such as those of business disruption, production failure, environmental
damage, social impacts and damage from fire and natural hazards.

(kk) "Risk Transfer" - the process of formally or informally shifting the financial consequences
of particular risks from one party to another whereby a household, community, enterprise or
state authority will obtain resources from the other party after a disaster occurs, in exchange
for ongoing or compensatory social or financial benefits provided to that other party.

(ll) "State of Calamity" - a condition involving mass casualty and/or major damages to

property, disruption of means of livelihoods, roads and normal way of life of people in the
affected areas as a result of the occurrence of natural or human-induced hazard.

(mm) "Sustainable Development" - development that meets the needs of the present without
compromising the ability of future generations to meet their own needs. It contains within it
two (2) key concepts: (1) the concept of "needs", in particular, the essential needs of the
world's poor, to which overriding priority should be given; and (2) the idea of limitations
imposed by the state of technology and social organizations on the environment's ability to
meet present and future needs. It is the harmonious integration of a sound and viable
economy, responsible governance, social cohesion and harmony, and ecological integrity to
ensure that human development now and through future generations is a life-enhancing
process.

(nn) "Vulnerability" - the characteristics and circumstances of a community, system or asset

that make it susceptible to the damaging effects of a hazard. Vulnerability may arise from
various physical, social, economic, and environmental factors such as poor design and
construction of buildings, inadequate protection of assets, lack of public information and
awareness, limited official recognition of risks and preparedness measures, and disregard for
wise environmental management.
 (oo) "Vulnerable and Marginalized Groups" - those that face higher exposure to disaster risk
and poverty including, but not limited to, women, children, elderly, differently-abled people,
and ethnic minorities.

Section 4. Scope. - This Act provides for the development of policies and plans and the
implementation of actions and measures pertaining to all aspects of disaster risk reduction and
management, including good governance, risk assessment and early warning, knowledge building
and awareness raising, reducing underlying risk factors, and preparedness for effective response
and early recovery.

Section 5. National Disaster Risk Reduction and Management Council. - The present National
Disaster Coordinating Council or NDCC shall henceforth be known as the National Disaster Risk
Reduction and Management Council, hereinafter referred to as the NDRRMC or the National
Council.

The National Council shall be headed by the Secretary of the Department of National Defense
(DND) as Chairperson with the Secretary of the Department of the Interior and Local Government
(DILG) as Vice Chairperson for Disaster Preparedness, the Secretary of the Department of Social

Welfare and Development (DSWD) as Vice Chairperson for Disaster Response, the Secretary of the
Department of Science and Technology (DOST) as Vice Chairperson for Disaster Prevention and
Mitigation, and the Director-General of the National Economic and Development Authority (NEDA)
as Vice Chairperson for Disaster Rehabilitation and Recovery.

The National Council's members shall be the following:

(a) Secretary of the Department of Health (DOH);

(b) Secretary of the Department of Environment and Natural Resources (DENR);

(c) Secretary of the Department of Agriculture (DA);

(d) Secretary of the Department of Education (DepED);

(e) Secretary of the Department of Energy (DOE);

(f) Secretary of the Department of Finance (DOF);

(g) Secretary of the Department of Trade and Industry (DT!);

(h) Secretary of the Department of Transportation and Communications (DOTC);

(i) Secretary of the Department of Budget and Management (DBM);

(j) Secretary of the Department of Public Works and Highways (DPWH);

(k) Secretary of the Department of Foreign Affairs (DFA);

(l) Secretary of the Department of Justice (DOJ);

(m) Secretary of the Department of Labor and Employment (DOLE);

(n) Secretary of the Department of Tourism (DOT);

(o) The Executive Secretary;

(p)Secretary of the Office of the Presidential Adviser on the Peace Process (OPAPP);

(q) Chairman, Commission on Higher Education (CHED);

(r) Chief of Staff, Armed Forces of the Philippines (AFP);

(s) Chief, Philippine National Police (PNP);

(t) The Press Secretary;

(u) Secretary General of the Philippine National Red Cross (PNRC);

(v) Commissioner of the National Anti-Poverty Commission-Victims of Disasters and

Calamities Sector (NAPCVDC);

(w) Chairperson, National Commission on the Role of Filipino Women;

(x) Chairperson, Housing and Urban Development Coordinating Council (HUDCC);

(y) Executive Director of the Climate Change Office of the Climate Change Commission;

(z) President, Government Service Insurance System (GSIS);

(aa) President, Social Security System (SSS);

(bb) President, Philippine Health Insurance Corporation (PhilHealth);

(cc) President of the Union of Local Authorities of the Philippines (ULAP);

(dd) President of the League of Provinces of the Philippines (LPP);

(ee) President of the League of Cities of the Philippines (LCP);

(ff) President of the League of Municipalities of the Philippines (LMP);

(gg) President of the Liga ng Mga Barangay (LMB);

(hh) Four (4) representatives from the CSOs;

(ii) One (1) representative from the private sector; and

(jj) Administrator of the OCD.

The representatives from the CSOs and the private sector shall be selected from among their
respective ranks based on the criteria and mechanisms to be set for this purpose by the National
Council.

Section 6. Powers and Functions of the NDRRMC. - The National Council, being empowered with
policy-making, coordination, integration, supervision, monitoring and evaluation functions, shall have
the following responsibilities:

(a) Develop a NDRRMF which shall provide for a comprehensive, all-hazards, multi-sectoral,
inter-agency and community-based approach to disaster risk reduction and management.
The Framework shall serve as the principal guide to disaster risk reduction and management
efforts in the country and shall be reviewed on a five(5)-year interval, or as may be deemed
necessary, in order to ensure its relevance to the times;

(b) Ensure that the NDRRMP is consistent with the NDRRMF;

(c) Advise the President on the status of disaster preparedness, prevention, mitigation,
response and rehabilitation operations being undertaken by the government, CSOs, private
sector, and volunteers; recommend to the President the declaration of a state of calamity in
areas extensively damaged; and submit proposals to restore normalcy in the affected areas,
to include calamity fund allocation;

(d) Ensure a multi-stakeholder participation in the development, updating, and sharing of a

Disaster Risk Reduction and Management Information System and Geographic Information
System-based national risk map as policy, planning and decision-making tools;

(e) Establish a national early warning and emergency alert system to provide accurate and
timely advice to national or local emergency response organizations and to the general
public through diverse mass media to include digital and analog broadcast, cable, satellite
television and radio, wireless communications, and landline communications;

(f) Develop appropriate risk transfer mechanisms that shall guarantee social and economic
protection and increase resiliency in the face of disaster;

(g) Monitor the development and enforcement by agencies and organizations of the various
laws, guidelines, codes or technical standards required by this Act;

(h) Manage and mobilize resources for disaster risk reduction and management including the
National Disaster Risk Reduction and Management Fund;

(i) Monitor and provide the necessary guidelines and procedures. on the Local Disaster Risk
Reduction and Management Fund (LDRRMF) releases as well as utilization, accounting and
auditing thereof;

(j) Develop assessment tools on the existing and potential hazards and risks brought about
by climate change to vulnerable areas and ecosystems in coordination with the Climate
Change Commission;

(k) Develop vertical and horizontal coordination mechanisms for a more coherent
implementation of disaster risk reduction and management policies and programs by sectoral
agencies and LGUs;
 (l) Formulate a national institutional capability building program for disaster risk reduction and
management to address the specific' weaknesses of various government agencies and
LGUs, based on the results of a biennial baseline assessment and studies;

(m) Formulate, harmonize, and translate into policies a national agenda for research and
technology development on disaster risk reduction and management;

(n) In coordination with the Climate Change Commission, formulate and implement a
framework for climate change adaptation and disaster risk reduction and management from
which all policies, programs, and projects shall be based;

(o) Constitute a technical management group composed of representatives of the

abovementioned departments, offices, and organizations, that shall coordinate and meet as
often as necessary to effectively manage and sustain national efforts on disaster risk
reduction and management;

(p) Task the OCD to conduct periodic assessment and performance monitoring of the
member-agencies of the NDRRMC, and the Regional Disaster Risk Reduction and
Management Councils (RDRRMCs), as defined in the NDRRMP; and

(q) Coordinate or oversee the Implementation of the country's obligations with disaster
management treaties to which it IS a party and see to It that the country's disaster
management treaty obligations be incorporated in its disaster risk reduction and
management frameworks, policies, plans, programs and projects.

Section 7. Authority of the NDRRMC Chairperson. - The Chairperson of the NDRRMC may call
upon other instrumentalities or entities of the government and nongovernment and civic
organizations for assistance In terms of the use of their facilities and resources for the protection and
preservation of life and properties in the whole range of disaster risk reduction and management.
This authority includes the power to call on the reserve force as defined in Republic Act No. 7077 to
assist in relief and rescue during disasters or calamities.

Section 8. The Office of Civil Defense. - The Office of Civil Defense (OCD) shall have the primary
mission of administering a comprehensive national civil defense and disaster risk reduction and
management program by providing leadership in the continuous development of strategic and
systematic approaches as well as measures to reduce the vulnerabilities and risks to hazards and
manage the consequences of disasters.

The Administrator of the OCD shall also serve as Executive Director of the National Council and, as
such, shall have the same duties and privileges of a department undersecretary. All appointees shall
be universally acknowledged experts in the field of disaster preparedness and management and of
proven honesty and integrity. The National Council shall utilize the services and facilities of the OCD
as the secretariat of the National Council.

Section 9. Powers and Functions of the OCD. - The OCD shall have the following powers and
functions:

(a) Advise the National Council on matters relating to disaster risk reduction and
management consistent with the policies and scope as defined in this Act;
(b) Formulate and implement the NDRRMP and ensure that the physical framework, social,
economic and environmental plans of communities, cities, municipalities and provinces are
consistent with such plan. The National Council shall approve the NDRRMP;

(c) Identify, assess and prioritize hazards and risks in consultation with key stakeholders;

(d) Develop and ensure the implementation of national standards in carrying out disaster risk
reduction programs including preparedness, mitigation, prevention, response and
rehabilitation works, from data collection and analysis, planning, implementation, monitoring
and evaluation;

(e) Review and evaluate the Local Disaster risk Reduction and Management Plans
(LDRRMPs) to facilitate the integration of disaster risk reduction measures into the local
Comprehensive Development Plan (CDP) and Comprehensive Land-Use Plan (CL UP);

(f) Ensure that the LG U s, through the Local Disaster Risk Reduction and Management
Offices (LDRRMOs) are properly informed and adhere to the national standards and
programs;

(g) Formulate standard operating procedures for the deployment of rapid assessment teams,
information sharing among different government agencies, and coordination before and after
disasters at all levels;

(h) Establish standard operating procedures on the communication system among provincial,
city, municipal, and barangay disaster risk reduction and management councils, for purposes
of warning and alerting them and for gathering information on disaster areas before, during
and after disasters;

(i) Establish Disaster Risk Reduction and Management Training Institutes in such suitable
location as may be deemed appropriate to train public and private individuals, both local and
national, in such subject as disaster risk reduction and management among others. The
Institute shall consolidate and prepare training materials and publications of disaster risk
reduction and management books and manuals to assist disaster risk reduction and
management workers in the planning and implementation of this program and projects. The
Institute shall conduct research programs to upgrade know ledge and skills and document
best practices on disaster risk reduction and management. The Institute is also mandated to
conduct periodic awareness and education programs to accommodate new elective officials
and members of the LDRRMCs;

(j) Ensure that all disaster risk reduction programs, projects and activities requiring regional
and international support shall be in accordance with duly established national policies and
aligned with international agreements;

(k) Ensure that government agencies and LGUs give toppriority and take adequate and
appropriate measures in disaster risk reduction and management;

(l) Create an enabling environment for substantial and sustainable participation of CSOs,
private groups, volunteers and communities, and recognize their contributions in the
government's disaster risk reduction efforts;
 (m) Conduct early recovery and post-disaster needs assessment institutionalizing gender
analysis as part of it;

(n) Establish an operating facility to be known as the National Disaster Risk Reduction and
Management Operations Center (NDRRMOC) that shall be operated and staffed on a
twenty-four (24) hour basis;

(o) Prepare the criteria and procedure for the enlistment of accredited community disaster
volunteers (ACDVs). It shall include a manual of operations for the volunteers which shall be
developed by the OCD in consultation with various stakeholders;

(p) Provide advice and technical assistance and assist in mobilizing necessary resources to
increase the overall capacity of LGUs, specifically the low income and in high-risk areas;

(q) Create the necessary offices to perform its mandate as provided under this Act; and

(r) Perform such other functions as may be necessary for effective operations and
implementation of this Act.

Section 10. Disaster Risk Reduction and Management Organization at the Regional Level. - The
current Regional Disaster Coordinating Councils shall henceforth be known as the Regional Disaster
Risk Reduction and Management Councils (RDRRMCs) which shall coordinate, integrate, supervise,
and evaluate the activities of the LDRRMCs. The RDRRMC shall be responsible in ensuring disaster
sensitive regional development plans, and in case of emergencies shall convene the different
regional line agencies and concerned institutions and authorities.

The RDRRMCs shall establish an operating facility to be known as the Regional Disaster Risk
Reduction and Management Operations Center (RDRRMOC) whenever necessary.

The civil defense officers of the OCD who are or may be designated as Regional Directors of the
OCD shall serve as chairpersons of the RDRRMCs. Its Vice Chairpersons shall be the Regional
Directors of the DSWD, the DILG, the DOST, and the NEDA. In the case of the Autonomous Region
in Muslim Mindanao (ARMM), the Regional Governor shall be the RDRRMC Chairperson. The
existing regional offices of the OCD shall serve as secretariat of the RDRRMCs. The RDRRMCs
shall be composed of the executives of regional offices and field stations at the regional level of the
government agencies.

Section 11. Organization at the Local Government Level. - The existing Provincial, City, and
Municipal Disaster Coordinating Councils shall henceforth be known as the Provincial, City, and
Municipal Disaster Risk Reduction and Management Councils. The Barangay Disaster Coordinating
Councils shall cease to exist and its powers and functions shall henceforth be assumed by the
existing Barangay Development Councils (BDCs) which shall serve as the LDRRMCs in every
barangay.

(a) Composition: The LDRRMC shall be composed of, but not limited to, the following:

(1) The Local Chief Executives, Chairperson;

(2) The Local Planning and Development Officer, member;

(3) The Head of the LDRRMO, member;

 (4) The Head of the Local Social Welfare and Development Office, member;

(5) The Head of the Local Health Office, member;

(6) The Head of the Local Agriculture Office, member;

(7) The Head of the Gender and Development Office, member;

(8) The Head of the Local Engineering Office, member;

(9) The Head of the Local Veterinary Office, member;

(10) The Head of the Local Budget Office, member;

(11) The Division Head/Superintendent of Schools of the DepED, member;

(12) The highest-ranking officer of the Armed Forces of the Philippines (AFP)
assigned in the area, member;

(13) The Provincial Director/City/Municipal Chief of the Philippine National Police

(PNP), member;

(14) The Provincial Director/City/ Municipal Fire Marshall of the Bureau of Fire
Protection (BFP), member;

(15) The President of the Association of Barangay Captains (ABC), member;

(16) The Philippine National Red Cross (PNRC), member;

(17) Four (4) accredited CSOs, members; and

(18) One (1) private sector representative, member.

(b) The LDRRMCs shall have the following functions:

(1) Approve, monitor and evaluate the implementation of the LDRRMPs and regularly
review and test the plan consistent with other national and local planning programs;

(2) Ensure the integration of disaster risk reduction and climate change adaptation
into local development plans, programs and budgets as a strategy in sustainable
development and poverty reduction;

(3) Recommend the implementation of forced or preemptive evacuation of local

residents, if necessary; and

(4) Convene the local council once every three (3) months or as necessary.

Section 12. Local Disaster Risk Reduction and Management Office (LDRRMO). - (a) There shall be
established an LDRRMO in every province, city and municipality, and a Barangay Disaster Risk
Reduction and Management Committee (BDRRMC) in every · barangay which shall be responsible
for setting the direction, development, implementation and coordination of disaster risk management
programs within their territorial jurisdiction.

(b) The LDRRMO shall be under the office of the governor, city or municipal mayor, and the
punong barangay in case of the BDRRMC. The LDRRMOs shall be initially organized and
composed of a DRRMO to be assisted by three (3) staff responsible for: (1) administration
and training; (2) research and planning; and (3) operations and warning. The LDRRMOs and
the BDRRMCs shall organize, train and directly supervise the local emergency response
teams and the ACDVs.

(c) The provincial, city and municipal DRRMOs or BDRRMCs shall perform the following
functions with impartiality given the emerging challenges brought by disasters of our times:

(1) Design, program, and coordinate disaster risk reduction and management
activities consistent with the National Council's standards and guidelines;

(2) Facilitate and support risk assessments and contingency planning activities at the
local level;

(3) Consolidate local disaster risk information which includes natural hazards,
vulnerabilities, and climate change risks, and maintain a local risk map;

(4) Organize and conduct training, orientation, and knowledge management activities
on disaster risk reduction and management at the local level;

(5) Operate a multi-hazard early warning system, linked to disaster risk reduction to
provide accurate and timely advice to national or local emergency response
organizations and to the general public, through diverse mass media, particularly
radio, landline communications, and technologies for communication within rural
communities;

(6) Formulate and implement a comprehensive and - integrated LDRRMP in

accordance with the national, regional and provincial framework, and policies on
disaster risk reduction in close coordination with the local development councils
(LDCs);

(7) Prepare and submit to the local sanggunian through the LDRRMC and the LDC
the annual LDRRMO Plan and budget, the proposed programming of the LDRRMF,
other dedicated disaster risk reduction and management resources, and other
regular funding source/s and budgetary support of the LDRRMO/BDRRMC;

(8) Conduct continuous disaster monitoring and mobilize instrumentalities and

entities of the LGUs, CSOs, private groups and organized volunteers, to utilize their
facilities and resources for the protection and preservation of life and properties
during emergencies in accordance with existing policies and procedures;

(9) Identify, assess and manage the hazards vulnerabilities and risks that may occur
in their locality;
(10) Disseminate information and raise public awareness about those hazards.
vulnerabilities and risks, their nature, effects, early warning signs and counter-
measures;

(11) Identify and implement cost-effective risk reduction measures/strategies;

(12) Maintain a database of human resource, equipment, directories, and location of

critical infrastructures and their capacities such as hospitals and evacuation centers;

(13) Develop, strengthen and operationalize mechanisms for partnership or

networking with the private sector, CSOs, and volunteer groups;

(14) Take all necessary steps on a continuing basis to maintain, provide, or arrange
the provision of, or to otherwise make available, suitably-trained and competent
personnel for effective civil defense and disaster risk reduction and management in
its area;

(15) Organize, train, equip and supervise the local emergency response teams and
the ACDV s, ensuring that humanitarian aid workers are equipped with basic skills to
assist mothers to breastfeed;

(16) Respond to and manage the adverse effects of emergencies and carry out
recovery activities in the affected area, ensuring that there is an efficient mechanism
for immediate delivery of food, shelter and medical supplies for women and children,
endeavor to create a special place where internally-displaced mothers can find help
with breastfeeding, feed and care for their babies and give support to each other;

(17) Within its area, promote and raise public awareness of and compliance with this
Act and legislative provisions relevant to the purpose of this Act;

(18) Serve as the secretariat and executive arm of the LDRRMC;

(19) Coordinate other disaster risk reduction and management activities;

(20) Establish linkage/network with other LGUs for disaster risk reduction and
emergency response purposes;

(21) Recommend through the LDRRMC the enactment of local ordinances consistent
with the requirements of this Act;

(22) Implement policies, approved plans and programs of the LDRRMC consistent
with the policies and guidelines laid down in this Act;

(23) Establish a Provincial/City/Municipal/Barangay Disaster Risk Reduction and

Management Operations Center;

(24) Prepare and submit, through the LDRRMC and the LDC, the report on the
utilization of the LDRRMF and other dedicated disaster risk reduction and
management resources to the local Commission on Audit (COA), copy furnished the
regional director of the OCD and the Local Government Operations Officer of the
DILG; and
 (25) Act on other matters that may be authorized by the LDRRMC.

(d) The BDRRMC shall be a regular committee of the existing BDC and shall be subject
thereto. The punong barangay shall facilitate and ensure the participation of at least two (2)
CSO representatives from existing and active community-based people's organizations
representing the most vulnerable and marginalized groups in the barangay.

Section 13. Accreditation, Mobilization, and Protection of Disaster Volunteers and National Service
Reserve Corps, CSOs and the Private Sector. - The government agencies, CSOs, private sector and
LGUs may mobilize individuals or organized volunteers to augment their respective personnel
complement and logistical requirements in the delivery of disaster risk reduction programs and
activities. The agencies, CSOs, private sector, and LGUs concerned shall take full responsibility for
the enhancement, welfare and protection of volunteers, and shall submit the list of volunteers to the
OCD, through the LDRRMOs, for accreditation and inclusion in the database of community disaster
volunteers.

A national roster of ACDVs, National Service Reserve Corps, CSOs and the private sector shall be
maintained by the OCD through the LDRRMOs. Accreditation shall be done at the municipal or city
level.

Mobilization of volunteers shall be in accordance with the guidelines to be formulated by the

NDRRMC consistent with the provisions of this Act. Any volunteer who incurs death or injury while
engaged in any of the activities defined under this Act shall be entitled to compensatory benefits and
individual personnel accident insurance as may be defined under the guidelines.

Section 14. Integration of Disaster Risk Reduction Education into the School Curricula and
Sangguniang Kabataan (SK) Program and Mandatory Training for the Public Sector Employees. -
The DepED, the CHED, the Technical Education and Skills Development Authority (TESDA), in
coordination with the OCD, the National Youth Commission (NYC), the DOST, the DENR, the DILG-
BFP, the DOH, the DSWD and other relevant agencies, shall integrate disaster risk reduction and
management education in the school curricula of secondary and tertiary level of education, including
the National Service Training Program (NSTP), whether private or public, including formal and
nonformal, technical-vocational, indigenous learning, and out-of-school youth courses and programs.

The NDRRMC, the RDRRMCs, the LDRRMCs, the LDRRMOs, the BDRRMCs and the SK councils
shall encourage community, specifically the youth, participation in disaster risk reduction and
management activities, such as organizing quick response groups, particularly in identified disaster-
prone areas, as well as the inclusion of disaster risk reduction and management programs as part of
the SK programs and projects.

The public sector employees shall be trained in emergency response and preparedness. The
training is mandatory for such employees to comply with the provisions of this Act.

Section 15. Coordination During Emergencies. - The LDRRMCs shall take the lead in preparing for,
responding to, and recovering from the effects of any disaster based on the following criteria:

(a) The BDC, if a barangay is affected;

(b) The city/municipal DRRMCs, If two (2) or more barangays are affected;

(c) The provincial DRRMC, if two (2) or more cities/municipalities are affected;
 (d) The regional DRRMC, if two (2) or more provinces are affected; and

(e) The NDRRMC, if two (2) or more regions are affected.

The NDRRMC and intermediary LDRRMCs shall always act as support to LGUs which have the
primary responsibility as first disaster responders. Private sector and civil society groups shall work
in accordance with the coordination mechanism and policies set by the NDRRMC and concerned
LDRRMCs.

Section 16. Declaration of State of Calamity. - The National Council shall recommend to the
President of the Philippines the declaration of a cluster of barangays, municipalities, cities,
provinces, and regions under a state of calamity, and the lifting thereof, based on the criteria set by
the National Council. The President's declaration may warrant international humanitarian assistance
as deemed necessary.

The declaration and lifting of the state of calamity may also be issued by the local sanggunian, upon
the recommendation of the LDRRMC, based on the results of the damage assessment and needs
analysis.

Section 17. Remedial Measures. - The declaration of a state of calamity shall make mandatory the
Immediate undertaking of the following remedial measures by the member-agencies concerned as
defined in this Act:

(a) Imposition of price ceiling on basic necessities and prime commodities by the President
upon the recommendation of the implementing agency as provided for under Republic Act
No. 7581, otherwise known as the "Price Act", or the National Price Coordinating Council;

(b) Monitoring, prevention and control by the Local Price Coordination Council of
overpricing/profiteering and hoarding of prime commodities, medicines and petroleum
products;

(c) Programming/reprogramming of funds for the repair and safety upgrading of public
infrastructures and facilities; and

(d) Granting of no-interest loans by government financing or lending institutions to the most
affected section of the population through their cooperatives or people's organizations.

Section 18. Mechanism for International Humanitarian Assistance. - (a) The importation and
donation of food, clothing, medicine and equipment for relief and recovery and other disaster
management and recovery-related supplies is hereby authorized in accordance with Section 105 of
the Tariff and Customs Code of the Philippines, as amended, and the prevailing provisions of the
General Appropriations Act covering national internal revenue taxes and import duties of national
and local government agencies; and

(b) Importations and donations under this section shall be considered as importation by
and/or donation to the NDRRMC, subject to the approval of the Office of the President.

Section 19. Prohibited Acts. - Any person, group or corporation who commits any of the following
prohibited acts shall be held liable and be subjected to the penalties as prescribed in Section 20 of
this Act:
(a) Dereliction of duties which leads to destruction, loss of lives, critical damage of facilities
and misuse of funds;

(b) Preventing the entry and distribution of relief goods in disaster-stricken areas, including
appropriate technology, tools, equipment, accessories, disaster teams/experts;

(c) Buying, for consumption or resale, from disaster relief agencies any relief goods,
equipment or other and commodities which are intended for distribution to disaster affected
communities;

(d) Buying, for consumption or resale, from the recipient disaster affected persons any relief
goods, equipment or other aid commodities received by them;

(e) Selling of relief goods, equipment or other aid commodities which are intended for
distribution to disaster victims;

(f) Forcibly seizing relief goods, equipment or other aid commodities intended for or
consigned to a specific group of victims or relief agency;

(g) Diverting or misdelivery of relief goods, equipment or other aid commodities to persons
other than the rightful recipient or consignee;

(h) Accepting, possessing, using or disposing relief goods, equipment or other aid
commodities not intended for nor consigned to him/her;

(i) Misrepresenting the source of relief goods, equipment or other aid commodities by:

(1) Either covering, replacing or defacing the labels of the containers to make it
appear that the goods, equipment or other aid commodities came from another
agency or persons;

(2) Repacking the! goods, equipment or other aid commodities into containers with
different markings to make it appear that the goods came from another agency or
persons or was released upon the instance of a particular agency or persons;

(3) Making false verbal claim that the goods, equipment or other and commodity m
its untampered original containers actually came from another agency or persons or
was released upon the instance of a particular agency or persons;

(j) Substituting or replacing relief goods, equipment or other aid commodities with the same
items or inferior/cheaper quality;

(k) Illegal solicitations by persons or organizations representing others as defined in the

standards and guidelines set by the NDRRMC;

(l) Deliberate use of false at inflated data in support of the request for funding, relief goods,
equipment or other aid commodities for emergency assistance or livelihood projects; and

(m) Tampering with or stealing hazard monitoring and disaster preparedness equipment and
paraphernalia.
Section 20. Penal Clause. - Any individual, corporation, partnership, association, or other juridical
entity that commits any of the prohibited acts provided for in Section 19 of this Act shall be
prosecuted and upon conviction shall suffer a fine of not less than Fifty thousand pesos
(Php50,000.00) or any amount not to exceed Five hundred thousand pesos (php500,000.00) or
imprisonment of not less than six (6) years and one (1) day or more than twelve (12) years, or both,
at the discretion of the court, including perpetual disqualification from public office if the offender IS a
public officer, and confiscation or forfeiture in favor of the government of the objects and the
instrumentalities used in committing any of herein prohibited acts.

If the offender is a corporation, partnership or association, or other juridical entity, the penalty shall
be imposed upon the officer or officers of the corporation, partnership, association or entity
responsible for the violation without prejudice to the cancellation or revocation of these entities
license or accreditation issued to them by any licensing or accredited body of the government. If
such offender is an alien, he or she shall, in addition to the penalties prescribed in this Act, be
deported without further proceedings after service of the sentence.

However, the prosecution for offenses set forth in Section 19 of this Act shall be without prejudice to
any liability for violation of Republic Act No. 3185, as amended, otherwise known as the Revised
Penal Code, and other civil liabilities.

Section 21. Local Disaster Risk" Reduction and Management Fund (LDRRMF). - The present Local
Calamity Fund shall henceforth be known as the Local Disaster Risk Reduction and Management
Fund (LDRRMF). Not less than five percent (5%) of the estimated revenue from regular sources
shall be set aside as the LDRRMF to support disaster risk management activities such as, but not
limited to, pre-disaster preparedness programs including training, purchasing life-saving rescue
equipment, supplies and medicines, for post-disaster activities, and for the payment of premiums on
calamity insurance. The LDRRMC shall monitor and evaluate the use and disbursement of the
LDRRMF based on the. LDRRMP as incorporated in the local development plans and annual work
and financial plan. Upon the recommendation of the LDRRMO and approval of the sanggunian
concerned, the LDRRMC may transfer the said fund to support disaster risk reduction work of other
LDRRMCs which are declared under state of calamity.

Of the amount appropriated for LDRRMF, thirty percent (30%) shall be allocated as Quick Response
Fund (QRF) or stand-by fund for relief and recovery programs in order that situation and living
conditions of people In communities or areas stricken by disasters, calamities, epidemics, or
complex emergencies, may be normalized as quickly as possible.

Unexpended LDRRMF shall accrue to a special trust fund solely for the purpose of supporting
disaster risk reduction and management activities of the LDRRMCs within the next five (5) years.
Any such amount still not fully utilized after five (5) years shall revert back to the general fund and
will be available for other social services to be identified by the local sanggunian.

Section 22. National Disaster Risk" Reduction and Management Fund. - (a) The present Calamity
Fund appropriated under the annual General Appropriations Act shall henceforth be known as the
National Disaster Risk Reduction and Management Fund (NDRRM Fund) and it shall be used for
disaster risk reduction or mitigation, prevention and preparedness activities such as but not limited to
training of personnel, procurement of equipment, and capital expenditures. It can also be utilized for
relief, recovery, reconstruction and other work or services in connection with natural or human
induced calamities which may occur during the budget year or those that occurred in the past two (2)
years from the budget year.
 (b) The specific amount of the NDRRM Fund and the appropriate recipient agencies and/or
LGUs shall be determined upon approval of the President of the Philippines in accordance
with the favorable recommendation of the NDRRMC.

(c) Of the amount appropriated for the NDRRM Fund, thirty percent (30%) shall be allocated
as Quick Response Fund (QRF) or stand-by fund for relief and recovery programs in order
that situation and living conditions of people in communities or areas stricken by disasters,
calamities, epidemics, or complex emergencies, may be normalized as quickly as possible.

(d) All departments/agencies and LGUs that are allocated with DRRM fund shall submit to
the NDRRMC their monthly statements on the utilization of DRRM funds and make an
accounting thereof in accordance with existing accounting and auditing rules.

(e) All departments, bureaus, offices and agencies of the government are hereby authorized
to use a portion of their appropriations to implement projects designed to address DRRM
activities in accordance with the guidelines to be issued by the NDRRMC in coordination with
the DBM.

Section 23. Funding of the OCD. - As lead agency to carry out the provisions of this Act, the OCD
shall be allocated a budget of One billion pesos (Php1,000,000,000.00) revolving fund starting from
the effectivity of this Act.

Section 24. Annual Report. - The National Council, through the OCD, shall submit to the Office of
the President, the Senate and the House of Representatives, within the first quarter of the
succeeding year, an annual report relating to the progress of the implementation of the NDRRMP.

Section 25. Implementing Rules and Regulations. - The NDRRMC. through its Chairperson. shall
issue the necessary rules and regulations for the effective implementation of this Act within ninety
(90) days after approval of this Act. The OCD. in consultation with key stakeholders. shall take the
lead in the preparation of the implementing rules and regulations with the active involvement of the
technical management group of the NDRRMC.

Section 26. Congressional Oversight Committee. - There is hereby created a Congressional

Oversight Committee to monitor and oversee the implementation of the provisions of this Act. The
Committee shall be composed of six (6) members from the Senate and six (6) members from the
House of Representatives with the Chairpersons of the Committees on National Defense and
Security of both the Senate and the House of Representatives as joint Chairpersons of this
Committee. The five (5) other members from each Chamber are to be designated by the Senate
President and the Speaker of the House of Representatives. respectively. The minority shall be
entitled to pro rata represent3tion but shall have at least two (2) representatives from each Chamber.

Section 27. Sunset Review. - Within five (5) years after the effectivity of this Act, or as the need
arises, the Congressional Oversight Committee shall conduct a sunset review. For purposes of this
Act, the term "sunset review" shall mean a systematic evaluation by the Congressional Oversight
Committee of the accomplishments and impact of this Act, as well as the performance and
organizational structure of its implementing agencies, for purposes of determining remedial
legislation.

Section 28. Repealing Clause. - Presidential Decree No. 1566 and all other laws, decrees,
executive orders, proclamations and other executive issuance's which are inconsistent with or
contrary to the provisions of this Act are hereby amended or repealed accordingly.
Section 29. Separability Clause. - If any provision of this Act shall be held unconstitutional or invalid,
the other provisions not otherwise affected shall remain m full force and effect.

Section 30. Effectivity Clause. - This Act shall take effect fifteen (15) days following its complete
publication in the Official Gazette or in two (2) national newspapers of general circulation.

Approved,