Article 106Labor and Agrarian Laws and Social Legislation, p. 106

LABOR LAWS AND SOCIAL LEGISLATION SPECIAL LAWS AND IMPLEMENTING RULES AND REGULATIONS

(h)

Other

government

funds

not

otherwise

appropriated.

All funds appropriated to implement the provisions of

this Act shall be considered continuing appropriations

during the period of its implementation: Provided , That if

the need arises, specific amounts for bond redemptions,

interest payments and other existing obligations arising

from

the

implementation

of

the

program

shall

be

included

in

the

annual

General

Appropriations

Act:

Provided , further , That all just compensation payments to

landowners, including execution of judgments therefore,

shall only be sourced from the Agrarian Reform Fund:

Provided , however , That just compensation payments

that cannot be covered within the approved annual

budget of the program shall be chargeable against the

debt service program of the national government, or any

unprogrammed item in the General Appropriations Act:

Provided , finally , That after the completion of the land

acquisition and distribution component of the CARP, the

yearly appropriation shall be allocated fully to support

services,

agrarian

justice

delivery

and

operational

requirements

of

the

DAR

and

the

other

CARP

implementing agencies.

Section 64. Financial Intermediary for the CARP . —

The Land Bank of the Philippines shall be the financial

intermediary for the CARP, and shall insure that the social

justice objectives of the CARP shall enjoy a preference

among its priorities.

CHAPTER XV General Provisions

Section 65. Conversion of Lands . — After the lapse of

five (5) years from its award, when the land ceases to be

economically

feasible

and

sound

for

agricultural

purposes, or the locality has become urbanized and the

land will have a greater economic value for residential,

commercial

or

industrial

purposes,

the

DAR,

upon

application of the beneficiary or the landowner with

respect only to his/her retained area which is tenanted,

with due notice to the affected parties, and subject to

existing

laws,

may

authorize

the

reclassification

or

conversion of the land and its disposition: Provided , That if

the applicant is a beneficiary under agrarian laws and the

land sought to be converted is the land awarded to

him/her or any portion thereof, the applicant, after the

conversion is granted, shall invest at least ten percent

(10%)of the proceeds coming from the conversion in

government

securities:

Provided ,

further ,

That

the

applicant upon conversion shall fully pay the price of the

land: Provided , furthermore , That irrigated and irrigable

lands, shall not be subject to conversion: Provided , finally ,

That the National Irrigation Administration shall submit a

consolidated

data

on the location nationwide of all

irrigable lands within one (1)year from the effectivity of

this Act.

Failure to implement the conversion plan within five

(5) years from the approval of such conversion plan or any

violation of the conditions of the conversion order due to

the

fault

of

the

applicant

shall

cause

the

land to

automatically be covered by CARP.

Section 65-A. Conversion into Fishpond and Prawn

Farms . – No conversion of public agricultural lands into

fishponds and prawn farms shall be made except in

situations where the provincial government with the

concurrence of the Bureau of Fisheries and Aquatic

Resources (BFAR) declares a coastal zone as suitable for

fishpond development. In such case, the Department of

Environment and Natural Resources (DENR) shall allow

the lease and development of such areas: Provided, That

the declaration shall not apply to environmentally critical

projects and areas as contained in title (A) sub-paragraph

two, (B-5) and (C-1) and title (B), number eleven (11) of

Proclamation No. 21-+6, entitled “Proclaiming Certain

Areas and Types of Projects as Environmentally Critical

and Within the Scope of the Environmental Impact

Statement (EIS) System established under Presidential

Decree

No.

1586,'” to ensure the protection of river

systems,

aquifers

and

mangrove

vegetations

from

pollution

and

environmental

degradation:

Provided,

further. That the approval shall be in accordance with a

set of guidelines to be drawn up and promulgated by the

DAR

and

the

BFAR:

Provided,

furthermore,

That

small-farmer cooperatives and organizations shall be

given preference in the award of the Fishpond Lease

Agreements (FLAs).

No conversion of more than five (5) hectares of

private lands to fishponds and prawn farms shall be

allowed after the passage of this Act, except when the use

of the land is more economically feasible and sound for

fishpond and/or prawn farm, as certified by the Bureau of

Fisheries and Aquatic Resources (BFAR), and a simple

and absolute majority of the regular farm workers or

tenants agree to the conversion, the Department of

Agrarian Reform, may approve applications for change in

the use of the land: Provided, finally, That no piecemeal

conversion to circumvent the provisions of this Act shall

be allowed. In these cases where the change of use is

approved,

the

provisions

of

Section

32-A hereof on

incentives shall apply.

Section 65-B. Inventory . – Within one (1) year from

the effectivity of this Act, the BFAR shall undertake and

finish

an

inventory

of

all

government

and

private

fishponds and prawn farms, and undertake a program to

promote the sustainable management and utilization of

prawn farms and fishponds. No lease under Section 65-A

hereof may be granted until after the completion of the

said inventory.

The

sustainable

management

and

utilization

of

prawn farms and fishponds shall be in accordance with

the

effluent

standards,

pollution

charges

and other

pollution control measures such as, but not limited to, the

quantity of fertilizers, pesticides and other chemicals

used, that may be established by the Fertilizer and

Pesticide

Authority

(FPA),

the

Environmental

Management

Bureau(EMB),and

other

appropriate

government regulatory bodies, and existing regulations

governing water utilization, primarily Presidential Decree

No. 1067, entitled “A Decree Instituting A Water Code,

Thereby Revising and Consolidating the Laws Governing

the Ownership, Appropriation, Utilization, Exploitation,

Development,

Conservation

and

Protection of Water

Resources.

Section 65-C. Protection of Mangrove Areas . – In

existing Fishpond Lease Agreements (FLAs) and those

that will be issued after the effectivity of this Act, a

portion of the fishpond area fronting the sea, sufficient to

protect the environment, shall be established as a buffer

zone and be planted to specified mangrove species to be

determined in consultation with the regional office of the

DENR.

The

Secretary

of

Environment

and

Natural

Resources shall provide the penalties for any violation of

this

undertaking

as

well

as

the

rules

for

its

implementation.

Section 65-D. Change of Crops . – The change of

crops to commercial crops or high value crops shall not

be considered as a conversion in the use or nature of the

land. The change in crop should however, not prejudice

the rights of tenants or leaseholders should there be any

and the consent of a simple and absolute majority of the

affected farm workers, if any, shall first be obtained.

Section 66. Exemptions from Taxes and Fees of

Land Transfers . — Transactions under this Act involving a

transfer of ownership, whether from natural or juridical

persons, shall be exempted from taxes arising from

capital gains. These transactions shall also be exempted

from the payment of registration fees, and all other taxes

and fees for the conveyance or transfer thereof; provided,

that all arrearages in real property taxes, without penalty

or interest, shall be deductible from the compensation to

which the owner may be entitled.

Section 67. Free Registration of Patents and Titles .

— All Registers of Deeds are hereby directed to register,

free from payment of all fees and other charges, patents,

titles and documents required for the implementation of

the CARP.

Section 68. Immunity of Government Agencies

from Undue Interference . — In cases falling within their

jurisdiction, no injunction, restraining order, prohibition or

mandamus shall be issued by the regional trial courts,

municipal trial courts, municipal circuit trial courts, and

© Compiled By RGL

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