2010

Advanced CARP

A GUIDE TO REPUBLIC ACT No. 9700

AN ACT STRENGTHENING THE COMPREHENSIVE AGRARIAN REFORM PROGRAM

(CARP), EXTENDING THE ACQUISITION AND DISTRIBUTION OF ALL AGRICULTURAL

LANDS, INSTITUTING NECESSARY REFORMS, AMENDING FOR THE PURPOSE CERTAIN

PROVISIONS OF REPUBLIC ACT NO. 6657, OTHERWISE KNOWN AS THE

COMPREHENSIVE AGRARIAN REFORM LAW OF 1988, AS AMENDED, AND

APPROPRIATING FUNDS THEREFOR (Effective 1 July 2009)

Land Rights-ARRD Unit

Initiatives for Dialogue and Empowerment through

Alternative Legal Services (IDEALS), Inc.

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ADVANCED CARP

A GUIDE TO REPUBLIC ACT No. 9700

by the Land Rights-Agrarian Reform and Rural Development Unit* IDEALS, Inc.

Copyright@2010 by the Initiatives for Dialogue and Empowerment through Alternative Legal Services (IDEALS), Inc. All rights reserved IDEALS encourages the use of this book with appropriate credit given to the author and the publisher. The content of this book may be reproduced by civil society groups for non-commercial purposes only. Any use of this book for commercial purposes by any means, electronic or mechanical, including photocopying, recording, or by information storage or retrieval system requires permission from IDEALS.

*Land Rights ARRD Unit

Atty. Maribel I. Arias Principal Writer

Atty. Carl Marx Carumba Assisting Writer

Anna Michelle Divina, J.D. Assisting Writer

Book cover concept and design: Antonio Carlos N. Tuao Printed by Art Angel Printshop, Jose Antonio Q. Pavia (proprietor)

Initiatives for Dialogue and Empowerment through Alternative Legal Services (IDEALS), Inc. 4F MB Bldg., No. 6, Kalayaan Ave. Brgy. Malaya, Quezon City, Philippines 1101 Telfax: (+632)4365470 Email : ideals05@yahoo.com Website www.ideals.org.ph

----------------------------------------------------------------------------------------------------------------The publication of this book is made possible with the assistance of the

Inter Church Organisation for Development Cooperation (ICCO) and the Agrarian Justice Foundation, Inc. (AJFI)

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MESSAGE

Greetings of Peace and Justice! The Agrarian Justice Foundation, Inc. is an organization committed to ensuring that genuine agrarian justice is served to the agrarian reform beneficiaries (ARBs) and implementers of the Philippines agrarian reform program so that the farmer-beneficiaries receive the full benefits of this program without delay, and the implementers are able to carry the program effectively without fear of harassment or retaliation from landowners who oppose the program. We envision a country where the agrarian reform program has succeeded in bringing about genuine social justice as evidenced by ARBs in the peaceful and productive possession of the lands awarded to them under the agrarian reform program. To this end, the Foundation provides financial support for the legal expenses of deserving ARBs who are facing legal battles due to cases filed against them (part of harassment techniques being used by landowner against the farmers), or because of the ignorance of the provisions of the agrarian laws, by either or both of the parties involved in the case and/or by the administrators of justice themselves. In recognition of the effectiveness of information and education in achieving the maximum utilization of the law, in order to serve our intended beneficiaries and achieve agrarian justice and genuine agrarian reform, the AJFI pursues its advocacy work. A large part of the advocacy efforts of the Foundation is geared towards providing venues for further education and dialogue of the different stakeholders of agrarian reform and the people involved in the dispensation of agrarian justice system. This is done through various Multi-Sectoral Workshops on Agrarian Justice, seminars in handling agrarian cases for prosecutors, roundtable discussions, to name a few.

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A better facilitation of our interventions and advocacies requires the full understanding and interpretation of the agrarian reform program of the country: that being Republic Act No. 6657, as most recently amended by Republic Act No. 9700, signed into law last August 2009. R.A. No. 9700 features reforms that explicitly discuss the creation of the Congressional Oversight Committee on Agrarian Reform (COCAR), land-use conversion tactics of landowners, referral of cases to the DAR, among others, and takes lessons from the case of the Sumilao Farmers. This legislation hints at a wider legal playing field for beneficiaries and advocates alike, one that we must use to its full potential. Hence, we would like to commend the Land Rights Agrarian Reform and Rural Development Unit of IDEALS, Inc. in their effort to contribute to a better comprehension of R.A. 9700 through this primer. It is the first of its kind, thus far, that is able to methodically discuss the salient features of the new law, referring as well to the previous agrarian reform programs of the government. It is with great honor that the AJFI supports this endeavor which we believe will lead to a more effective implementation of the agrarian reform program and accelerate rural development and poverty alleviation in our country. WIGBERTO E. TAADA President Agrarian Justice Foundation, Inc.

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FOREWORD

At the heart of the Filipino historical struggle for social justice is the peasant clamor for equitable distribution of farm lands that tillages should first and foremost be for men- and women-tillers! After centuries of this peasant fight for agrarian reform, victory remains to be very far from sight. Thus, the push for the passage of the Comprehensive Agrarian Reform Program Extension with Reforms (CARPer) or Republic Act No. 9700 in 2009, which extends to five more years the implementation of the Comprehensive Agrarian Reform Law (CARL) of 1988 with added key provisions that address the weaknesses of the former law. Being the current primary legal venue for the pursuance of agrarian reform after CARL, R.A. 9700 needs to be reviewed and its potentials and limitations understood. This is what ADVANCED CARP seeks to do. This primer purports to facilitate a greater understanding of the new law. In producing ADVANCED CARP, we in IDEALS manifest our continued solidarity with the peasants and the whole agrarian reform movement in this advocacy for social justice. As a legal organization, which has built its niche and expertise in land rights-agrarian reform and rural development issues, IDEALS offers this primer as a contribution to the agrarian reform advocacy. We do hope that this will be of use to our fellow advocates and partners in the civil society and government sectors.

Mabuhay ang mga samahang magsasaka! Mabuhay ang patuloy na pagkilos ng

sambayanan para sa tunay na repormang agraryo!

Ma. Brenda A. Batistiana (sgd.) President, Board of Trustees Initiatives for Dialogue and Empowerment through Alternative Legal Services (IDEALS), Inc.

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A Guide to Republic Act No. 9700

CONTENTS

Introduction

Part I --- THE PRINCIPAL FEATURES OF RA 9700

1 THE PRINCIPAL FEATURES OF RA 9700

2 CHARACTER OF THE EXTENSION OF THE ACQUISITION AND DISTRIBUTION OF ALL AGRICULTURAL LANDS, AS INDICATED IN THE TITLE OF RA 9700

3 THE CARP AS A CONTINUING PROGRAM

4 THE SALIENT CHANGES INTRODUCED BY RA NO. 9700 INTO THE CARP LAW OF 1988

A On the Declaration of Principles and Policies

B On the Definition of Farmers and Rural Women

C The Institution of the Comprehensive Inventory System

D Provisions Relating to Land Use Conversion

E Provisions of the New Law Affecting the Land Acquisition and Distribution (LAD) Program Component of Agrarian Reform

F Affirmation of CLOAs, EPs and Other Titles Issued Under Any Agrarian Reform Program As Torrens Titles with the same features of indefeasibility and imprescriptibility as all other land titles brought under the Torrens system of registration

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G Provisions Introduced by RA 9700 Relating to Support Services

H Provisions of the New Law Relating to Agrarian Justice

5 MEANS AND/OR MECHANISMS EXTRANEOUS TO THE CARP PROCESSES TO HELP ENSURE ITS PROPER AND EFFECTIVE IMPLEMENTATATION

Part II --- LAND ACQUISITION AND DISTRIBUTION

A Land Implementation Schedule and Modes of Acquisition

B Exemption of LGUs from the Prescribed Retention Limit and Expropriation vis--vis the CARP Acquisition and Distribution Process

C Land Valuation and Just Compensation for Landowners

D Identification and Selection of Beneficiaries

E Land Distribution

Part III --- AGRARIAN JUSTICE

A RA 9700 provisions on Agrarian Justice, in general

B The Case Referral Mechanism

C The Penal Provisions of RA 6657, as amended by RA 9700

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A GUIDE TO REPUBLIC ACT NO. 9700 INTRODUCTION

On August 7, 2009, Republic Act (RA) No.

9700, more commonly known as the Comprehensive Agrarian Reform Program Extension with Reforms (CARPER)1 Act, was signed into law. Introducing substantial amendments to RA No. 6657, the Comprehensive Agrarian Reform Law of 19882 (as amended), RA No. 9700 was passed not to create a new program but to build on and /or enhance the former. As the title of the new enactment indicates, RA 9700 authorized further appropriations for the Comprehensive Agrarian Reform Program (CARP) and, at least for the most part, instituted reforms to facilitate program implementation. The law also set up mechanisms that will help ensure that it is properly and effectively implemented.

This material is an effort to present the salient

features of the RA 9700. The provisions of the law amending sections of RA 6657 will be specifically pointed out even as the author ventures to describe the essence of the amendments, particularly the ones that are more critical, contentious, or both.

1 The law does not itself provide for the short name CARPER but was given such nickname by

agrarian reform advocates.

2 RA 6657 is also referred to as the CARP Law of 1988.

Republic Act No. 9700

AN ACT STRENGTHENING

THE COMPREHENSIVE

AGRARIAN REFORM

PROGRAM (CARP),

EXTENDING THE

ACQUISITION AND

DISTRIBUTION OF ALL

AGRICULTURAL LANDS,

INSTITUTING NECESSARY

REFORMS, AMENDING

FOR THE PURPOSE

CERTAIN PROVISIONS OF

REPUBLIC ACT NO. 6657,

OTHERWISE KNOWN AS

THE COMPREHENSIVE

AGRARIAN REFORM LAW

OF 1988, AS AMENDED,

AND APPROPRIATING

FUNDS THEREFOR

---

Approved by President Gloria

Macapagal-Arroyo on August

7, 2009, this Act, a

consolidation of Senate Bill

No. 2666 and House Bill

No.4077 was finally passed by

the Senate and the House of

Representatives on August 3,

2009 and July 29, 2009,

respectively.

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There are three parts to this book. Part I presents an overview of RA No. 9700. Parts II and III respectively tackle matters concerning Land Acquisition and Distribution (LAD) and concerns relating to Agrarian Justice (AJD) in detail, and insofar as these are affected by the provisions of RA No. 9700.

To clarify certain subjects or issues, references will be made to provisions in

applicable administrative regulations and other issuances.

PART I. PRINCIPAL FEATURES OF RA 9700 1. WHAT ARE THE PRINCIPAL FEATURES OF RA 9700

A major amendatory law to RA No. 6657, RA No. 9700 is the legislative act to come after more than twenty (20) years of the implementation of the Comprehensive Agrarian Reform Program (CARP) to sustain the programs implementation at least up to the year 2014 and to institute certain reforms into the CARP law of 1988 in order that the same may be better implemented. In particular, RA 9700, commonly known as the CARPER Law:

(a) Authorized further appropriations for CARP implementation until

2014 (technically until end-June 2014). The amount of PhP 150 Billion was authorized to be appropriated to further implement the agrarian reform law until 2014.

(b) Introduced provisions that are, on the whole, improvements on the

affected provisions of RA 6657, as amended. In general, these are regarded as the reforms instituted by RA 9700 to the amended CARP Law of 1988.

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RA 9700 is an important piece of legislation and is considered by agrarian reform advocates as a necessary measure to re-invigorate a program that has been weakened by implementation shortfalls. The proper implementation of RA 9700 is therefore critical and it is reassuring that the law has itself provided for measures to facilitate this. These include provisions of the new law that introduced improvements in certain CARP processes. In addition, RA 9700 provided for means and institutionalized mechanisms external to these processes that are clearly designed to help ensure the laws proper implementation. The establishment of the Congressional Oversight Committee for Agrarian Reform (COCAR) and a provision touching on access to information are a part of such means and mechanisms.

2. WHAT IS THE CHARACTER OF THE EXTENSION OF THE ACQUISITION AND DISTRIBUTION OF ALL AGRICULTURAL LANDS, WHICH IS INDICATED IN THE TITLE OF RA 9700 AS ONE OF THE LAWS PURPOSES?

The extension indicated in the title necessarily pertains only to the effective or practical continuation of the acquisition and distribution of CARP-covered lands by providing the funding support for the program. The extension does not or could not have referred to the mandate to undertake such acquisition and distribution itself or, for that matter, to carry out all other components of the CARP because the program is fundamentally continuing in nature and needs no fresh mandate so that its goals may be pursued. This point is further discussed under item 3 below.

At any rate, the laws provision for the additional PhP 150 billion for

CARP is considered a major boost to the program. Without it, securing the required funding to implement CARP would have been something that has to be struggled out during the annual general appropriations process, rendering the programs implementation difficult and uncertain, to say the least.

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3. ASSUMING RA 9700 HAS NOT BEEN ENACTED, MAY THE CARP STILL BE IMPLEMENTED BEYOND THE TIME-FRAME PROVIDED BY RA 6657 AND LATER BY RA NO. 85323 (commonly known as the CARP Augmentation Act)?

The program should be implemented and government is duty-bound to provide for all the means to make CARPs implementation possible including the necessary funding support.

It is settled that the agrarian reform program, as fleshed out in RA No.

6657, as amended, is a continuing program and the schedule of implementation stated in Section (Sec.) 5 of the law (initially covering a ten-year period) is merely directory, and not mandatory. As early as 1997, the Department of Justice (DOJ) through DOJ Opinion No. 9, S. 1997, has already held the view to the effect that the Department of Agrarian Reform (DAR), the lead CARP implementing agency, should be given the flexibility to continue the implementation of the program beyond the period expressed in RA No. 6657 so that it may be able to complete the programs original scope and mandate, without further need of legislation.

It must be stressed that the said DOJ Opinion also indicated that the

authors of RA 6657 intended a no-time frame formula with respect to the implementation of the agrarian reform program, particularly as regards its land distribution component. The pertinent portion of the DOJ Opinion states:

It bears emphasis that the ten-year period of the

implementation is only a time frame given to the DAR for the acquisition and distribution of public and private agricultural lands covered by R.A. No. 6657. It is a schedule to guide the DAR in setting its priorities, but is not by any means a limitation

3 RA No. 8532: An Act Strengthening Further the Comprehensive Agrarian Reform Program

(CARP), By Providing Augmentation Fund Therefor, Amending for the Purpose Section 63 of

Republic Act No. 6657, Otherwise Known as "The CARP Law Of 1988" (enacted February 1998)

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of authority in the absence of a more categorical language providing to that effect. This is made clear in the Bicameral Conference Committee Report for R.A. No. 6657, viz:

Rep. Zamora apprised the body of the panels position on priorities after its consultation with the House, which is a proposition for a no-date formula but providing a benchmark figure of ten (10) years where a categorization or phrasing may be established and giving PARC the authority to move these phases in the course of its implementation.

In this regard, prior to the enactment of RA 9700, the DAR clearly expressed its position that the CARP is a continuing program and that the gap in terms of legislation is a law that will authorize the allocation of sufficient funds for its continued implementation, particularly in view of the huge balances under the programs land transfer component.

Our basic and overreaching Position is that agrarian

reform is a continuing Program mandated by the law and the Constitution which must be funded and fully implemented. More than a social justice provision, it is embodied as a State Policy in the highest law of the land. Section 21, Article 2 provides that The State shall promote comprehensive rural development and agrarian reform. Accordingly, unless Sections 1 and 4, Article XIII of the 1987 Philippine Constitution is amended/ abrogated, agrarian reform remains a constitutionally mandated continuing Program of the State. (Position Paper dated 12 November 2008, signed by DAR Secretary Nasser C. Pangandaman)

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4. WHAT ARE THE SALIENT CHANGES INTRODUCED BY REPUBLIC ACT NO. 9700 TO THE CARP LAW (OF 1988)?

Aside from amending Section 63 (Funding Source) of RA No. 6657, as

amended by RA No. 8532, by authorizing the additional appropriation for the CARP of PhP 150 Billion, RA 9700 introduced quite a number of changes into the CARP Law of 1988. The more salient changes, modifying or supplementing the pertinent original provisions in RA 6657 are, as follows:

(a) ENHANCEMENT OF THE DECLARATION OF PRINCIPLES AND POLICIES TO INCLUDE SOME VERY IMPORTANT CORE VALUES FOR CARP IMPLEMENTATION (Sec. 2, RA 6657, as amended). The policies and principles that circumscribe the implementation of the comprehensive agrarian program are enhanced by Section 1 of RA 9700 to include provisions

a.1. Affirming the State policy to promote industrialization and full employment based on sound agricultural development and agrarian reform through industries that make full and efficient use of human and natural resources, and which are competitive in both domestic and foreign markets.

Fittingly correlating industrialization to land use, RA 9700 incorporates the rule that the conversion of agricultural lands into industrial, commercial or residential lands shall take into account, tillers' rights and national food security; a.2. Providing that a meaningful agrarian reform program that will uplift the lives and economic status of the farmer and his /her children can only be achieved through simultaneous industrialization aimed at developing a self-reliant and independent national economy effectively controlled by Filipinos;

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a.3. Affirming the need to give due regard to the retention rights of the landowner in the program for the equitable distribution and ownership of land (in addition to the previously specified considerations of due regard to landowners compensation and the ecological needs of the nation); a.4. Providing that program implementation shall, as far as practicable, be community-based to ensure, among others, that the farmers shall have greater control of farmgate prices, and easier access to credit;

a.5. Affirming the rights of rural women to own and control land or to receive a just share in the fruits thereof, to qualify as beneficiaries of agrarian reform, and to be represented in advisory or appropriate decision-making bodies.

(b) ADOPTION OF AN EXPANDED DEFINITION FOR THE TERM FARMERS AND INTRODUCTION OF A DEFINITION OF RURAL WOMEN. RA 9700 generally retained the original Definition of Terms under Section 3 of RA 6657, as amended, limiting its modification of the section to the following:

b.1. Expansion of the definition of Farmer. Natural persons whose primary livelihood is the production of livestock and or fisheries are included in the list of persons regarded as farmers. Prior to the amendment, the term farmer pertains only to those whose primary livelihood is the cultivation of land or production of agricultural crops. Farmer is now defined as:

a natural person whose primary livelihood is cultivation of land or the production of agricultural crops, livestock and/ or fisheries either by himself/herself, or primarily with the assistance of his/her immediate

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farm household, whether the land is owned by him/her, or by another person under a leasehold or share tenancy agreement or arrangement with the owner thereof. (Sec. 3(f), RA 6657, as amended)

b.2. Rural Women defined. RA 9700 makes several references to rural women and it is just proper that the phrase is explicitly defined under the new law. Thus, rural women

refers to women who are engaged directly or indirectly in farming and/or fishing as their source of livelihood, whether paid or unpaid, regular or seasonal, or in food preparation, managing the household, caring for the children, and other similar activities. (Sec. 3(l), RA 6657, as amended)

(c) ESTABLISHMENT OF A COMPREHENSIVE INVENTORY SYSTEM

(CIS). Supplementing the original section on CARP scope (Sec. 4, RA 6657, as amended), the new law directs that a comprehensive inventory system (CIS) be instituted by the DAR for the purpose of properly identifying and classifying farmlands

RA 9700 provides that the CIS must be in consonance with the national land use plan and instituted in accordance with the Local Government Code, within one (1) year from the new laws effectivity. However, the same shall be without prejudice to the implementation of the land acquisition and distribution program component of agrarian reform.

(d) PROVISIONS RELATING TO LAND USE CONVERSION

d.1. Provision enunciating the principle that conversion of agricultural lands to other uses shall take into consideration tillers rights and national food security. As mentioned under item 4(a) a.1.

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above, RA 9700 correlates industrialization to land use, and explicitly states the policy that conversion of agricultural lands into industrial, commercial or residential lands shall take into account, tillers' rights and national food security. (Sec. 2, RA 9700) d.2. Prohibition against conversion of irrigated and irrigable lands. One of the more progressive provisions introduced by RA 9700, Section 22 of the law (amending Section 65 of RA 6657) provides that irrigated and irrigable lands, shall not be subject to conversion.4 It continues to state 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 RA 9700 (or one year from July 1, 2009) The prohibition against conversion of irrigated and irrigable lands is a most welcome improvement in the law, at least from the standpoint of national food security and even environmental preservation.

4 Neither RA 9700 nor RA 6657, as amended, provides for definition of the phrases irrigated

lands and irrigable lands. The same is true as regards DAR AO No. 2, S. 2009 (Rules and

Procedures Governing the Acquisition and Distribution of Agricultural Lands under Republic Act

(R.A.) No. 6657, as amended by R.A. No. 9700). Even so, the DAR has an existing administrative

order on Land Use Conversion AO No. 1, S. 2002 which does provide respective definitions

for the said concepts. We opine that these definitions should be applied or at least serve as a

standard in ascertaining whether lands are irrigated or irrigable. Thus:

(a) "Irrigated Land" refers to lands serviced by natural irrigation or irrigation facilities. This

includes lands where water is not readily available because existing irrigation facilities need

rehabilitation or upgrading or where irrigation water is not available year-round.;

(b) "Irrigable Land" refers to land displaying marked characteristics justifying the operation of

an irrigation system.

It should be noted that RA No. 8435 (1997) otherwise known as the "Agriculture and

Fisheries Modernization Act of 1997" or AFMA defined the phrases irrigated lands and

irrigable lands and that the definition given to the said phrases are the same as that found in the

DAR guidelines on conversion.

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The legislative prohibition against the conversion of irrigated and irrigable lands strengthens certain prescriptions against land use conversion under RA No. 8435 (1997) otherwise known as the "Agriculture and Fisheries Modernization Act of 1997" or AFMA. It also affirms, as well as lends stability, to the prohibition against conversion of irrigated and irrigable lands found in presidential and department regulations.5 As to the laws prohibition against conversion of irrigable lands, it should be noted that the same, being without any qualification, is more restrictive than the prohibition under certain administrative regulations, which prohibit the conversion of irrigable lands provided these are covered by irrigation projects with firm funding commitments.6

d.3. Prescription for the automatic coverage of the land approved for conversion upon failure to implement the conversion plan or for any violation of the conversion order (or the provision on automatic reversion to agricultural status). Another progressive innovation of RA 9700, the rule is explicit that the land approved for conversion shall be automatically covered by CARP when: (a) there is failure to implement the conversion plan within five (5)

years from the approval of such conversion plan; or

(b) there is committed a violation of the conditions of the conversion order due to the fault of the applicant. (Sec. 22, RA 9700 amending Sec. 65 of RA 6657)

5 Including Presidential Administrative Order No. 20, Series of 1992 or the Interim Guidelines

on Agricultural Land Use Conversion, DAR AO 1, Series of 2002 and precursor department

administrative orders on Land Conversion

6 Ibid.

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d.4. Landowners application / coverage of application for conversion, qualified. Section 22 of RA 9700 retained the provision in Section 65 of RA 6657 that the DAR may authorize the reclassification or conversion of the land and its disposition upon the application of farmer-beneficiaries or landowners. However, Section 22 inserts the qualification that the landowners application is with respect only to his/her retained area which is tenanted. As opposed to the other amendments introduced by RA 9700 relating to land use conversion, this amendment eases up instead of restricts the conversion process. This is so because the qualification added by the amendatory provision necessarily implies that the landowner need not go through the conversion application and approval process if his/her retained area is not tenanted before actually using the land for purposes other than agricultural.

Nevertheless, the land may only be allowed for conversion for non-agricultural purposes if the same has ceased 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. This is a requirement under Section 65 that is left untouched by Section 22 of RA 9700. d.5. Applicant-beneficiary required to re-invest proceeds in government securities. Section 22 of RA 9700 also imposed a requirement/ condition not present in the original provisions under Section 65 of RA 6657: 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.

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d.6. Applicant-beneficiary required to make full payment of the price of the land upon conversion. Section 22 further provides that the applicant shall, upon conversion, fully pay the price of the land. Full payment may thus be made after the DAR approves/ authorizes the conversion or upon conversion. This is a departure from the provision in Section 65 of RA 6657 which requires that the beneficiary shall have fully paid his obligation as a (pre)condition for the approval of the application. As it is, the more relaxed requirement on the full payment of the price of the land under Section 22 is the prevailing rule, Section 65 of RA 6657 having been accordingly amended by Section 22 of RA 9700. At any rate, similar to the conversion of the landowners tenanted retained area, the conversion of lands awarded to beneficiaries may only be allowed if the same has ceased 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. This requirement under Section 65, RA 6657 still exists.

(e) PROVISIONS OF THE NEW LAW AFFECTING THE LAND ACQUISITION AND DISTRIBUTION (LAD) PROGRAM COMPONENT OF AGRARIAN REFORM

RA 9700 introduced a substantial number of provisions relating to land acquisition and distribution, amending and/or supplementing the LAD provisions of the CARP Law of 1988. The changes introduced by the new law are briefly described below and the same will be presented in greater detail under Part II of this Primer.

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e.1. Provision that landholdings of landowners with a total of five (5) hectares and below shall not be covered for acquisition and distribution to qualified beneficiaries (Sec. 4, RA 6657, as amended by RA 9700.) e.2. Adoption of an Implementation/ Phasing Plan in the Acquisition and Distribution of agricultural lands from the date of the laws effectivity until 2014 (Sec. 7, RA 6657, as amended by RA 9700). Remaining public and private agricultural lands are to be acquired from the landowners and distributed to farmer beneficiaries following an implementation schedule (See Table I re: LAD Implementation Schedule/Phases under Part II hereof).

e.3. Removal of the Voluntary Land Transfer Scheme as a mode of acquisition effective 1 July 2009. Voluntary land transfer shall be allowed only for landholdings with VLT applications submitted to the DAR as of June 30, 2009 (Sec. 7, RA 6657, as amended by RA 9700).

e.4. On Landowners Retention Limits:

e.4.1. Exemption from the rule on prescribed Retention/ Ownership Limits (generally, 5 hectares per landowner) in favor of provincial, city and municipal government units acquiring private agricultural lands by expropriation or other modes of acquisition (Sec. 6-A, RA 6657, as amended by RA 9700)

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e.4.2. Mandate for the submission of a comprehensive study on appropriate land sizes per crop. While maintaining the original provisions on retention and ownership limits, the DAR is nevertheless directed to submit a comprehensive study on the land size appropriate for each type of crop to Congress. The study shall be for purposes of a possible review of the limits of land sizes for retention/ ownership provided in the CARP law. (Sec. 6-B, RA 6657, as amended by RA 9700)

e.5. Affirmation of the ministerial nature of the duty of the Register of Deeds to: (a) register the title of the land in the name of the Republic of the Philippines, after the Land Bank of the Philippines (LBP) has certified that the necessary deposit in the name of the landowner of the full payment (in cash or in bond) of the just compensation for the land; and (b) register the Certificate of Land Ownership Award (CLOA) issued to the farmer beneficiaries; and (c) cancel previous titles pertaining to the RP Title and the CLOA (Sec. 24, RA 6657, as amended by RA 9700)

e.6. Imposition of the requirement for a land owners attestation with respect to the status of farmers (tenants and lessees) and regular farmworkers in his/her landholding in order for them to qualify as beneficiaries. This is based on a portion of Section 5 of RA 9700 (amending Section 7 of the RA 6657), which states to the effect, that only farmers (tenants and lessees) and regular farmworkers actually tilling the lands, as certified under oath by the Barangay Agrarian Reform Council (BARC) and attested under oath by the landowners, are qualified beneficiaries.

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e.7. Provision directing the distribution of parcels of a landholding first to qualified tenants/lessees and regular farmworkers up to a maximum of three (3) hectares each and prescribing that only when these beneficiaries have received the maximum area shall the remaining portion of the landholding, if any, be distributed to other beneficiaries under Section 22 of RA 6657, as amended.7 (Sec. 22-A, RA 6657, as amended by RA 9700 e.8. On the just compensation to be paid to landowners, the inclusion of the factors of: (a) value of standing crops; and (b) seventy percent (70%) of the zonal valuation of the Bureau of Internal Revenue (BIR) for its determination. (Sec. 17 of RA 6657, as amended by RA 9700)

e.9. Adjustment of the time-frame for the completion of the award to agrarian reform beneficiaries (ARBs) (after the payment of just compensation to the landowner). Award to ARBs now required to be completed 180 days from the registration of the RP title (Sec. 24, RA 6657, as amended by RA 9700)

It used to be that the award to beneficiaries is required to be completed within one hundred eighty days (180) from the time the DAR takes actual possession of the land. RA 9700 changed the rule by requiring

7 Section 22 of RA 6657 lists the different types of tillers who may qualify as beneficiaries, as

follows:

(a) agricultural lessees and share tenants ;

(b) regular farm workers ;

(c) seasonal farm workers ;

(d) other farm workers ;

(e) actual tillers or occupants of public lands;

(f) collective or cooperatives of the above beneficiaries ; and

(g) others directly working on the land.

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the award to be completed within 180 days from the date of registration of the title in the name of the Republic of the Philippines.

The change lends more certainty as to the reckoning point from where the 180 days should be counted. The date of registration is indicated on the RP title itself. On the other hand, experience has shown that the taking of possession8 by the DAR of the land subject to LAD (the previous reckoning point) rarely happens. Moreover, with the RA 9700 provision on the ministerial function of the ROD to issue/ register RP titles (and CLOAs, etc.), there is now greater assurance that the RP titles registration will be completed within a reasonable time.

e.10. Provision reinforcing the preference for distribution of lands to ARBs through individual titles as opposed to collective titles, imposing additional conditions for collective awards to the end that the issuance of collective titles are restricted, and directing the immediate parcelization of collective CLOAs (Sec. 25, RA 6657, as amended by RA 9700)

8 VI. Operating Procedures.

1. Within five (5) days from the receipt of the Certification of Deposit issued by the Land Bank of the

Philippines (LBP), the Provincial Agrarian Reform Officer (PARO) shall simultaneously: (1.1) request

the Register of Deeds (ROD) to issue Transfer Certificate of Title (TCT) in the name of the Republic of

the Philippines (RP) for titled properties xxx; (1.2) instruct the Municipal Agrarian Reform Officer

(MARO), of the place where the property is located, to take possession of the property for titled and

untitled properties; and (1.3) advise the LO that the property has, for all intents and purposes, been

acquired by the state pursuant to the law and that the DAR shall accordingly take possession thereof

and inform him/her of his/her rights to harvest standing crops, if any, within a reasonable time (CARP-

LA Form No. 7) xxx; 2. The DARMO shall: 2.1. Within five (5) days from receipt of the PAROs

instruction, conduct an ocular inspection of the property or any other acts to take possession of the

same and determine the existence of standing crops, or harvestable crops, if any. The taking of

possession shall be evidenced by, among others, pictures taken showing the identifiable landmarks of

the property and standing crops or unharvestable crops, if any, which shall be integral to the ocular

inspection report, specifying the findings, to be submitted to the PARO xxx. (AO 8, S. 2006 Item

IV.1.2)

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Section 25 of the CARP law, as amended by RA 9700 (section captioned Award Ceiling to Beneficiaries) states, among others, that in general, the land awarded to a farmer beneficiary should be in the form of an individual title covering the parcel or parcels of land awarded to him/her up to the maximum limit of three hectares. This denotes a preference for the individual award of land as opposed to a collective award, or the conferment of title to a group of beneficiaries under co-ownership titles and titles in favor of their cooperative or organization. Such preference is not in the original formulation of Section 25. Prior to RA 9700, nevertheless, a preference for land award through individual titles is found in Section 299 of the CARP law, which section treats of the distribution of farms owned or operated by corporations or other business organizations. This section is retained and/or kept intact by RA 9700. Thus, by virtue of the amendment in Section 25, the preference for award through individual titles is no longer limited to the distribution of farms owned or operated by corporations or other business organizations.

9 Sec. 29. Farms Owned or Operated by Corporations or Other Business Associations. In the

case of farms owned or operated by corporations or other business associations, the following

rules shall be observed by the PARC.

In general, lands shall be distributed directly to the individual worker-beneficiaries.

In case it is not economically feasible and sound to divide the land, then it shall be owned

collectively by the worker-beneficiaries who shall form a workers' cooperative or association

which will deal with the corporation or business association. Until a new agreement is

entered into by and between the workers' cooperative or association and the corporation or

business association, any agreement existing at the time this Act takes effect between the

former and the previous landowner shall be respected by both the workers cooperative or

association and the corporation or business association.

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The reinforced preference for individual awards over collective awards relative to lands subject of acquisition and distribution is further strengthened by the proviso inserted into Section 7 of RA 6657 by RA 9700. The proviso imposes rather strict conditions before a landholding may be awarded through collective titles. (See Item 44*, Part II hereof for the conditions for collective awards). In addition, Section 25 directs the parcelization of existing CLOAs, particularly those that do not exhibit the conditions for collective ownership. The process must commence immediately upon approval of RA 9700 and shall not exceed a period of three (3) years. Only those existing certificates of land ownership award that are collectively farmed or are operated in an integrated manner shall remain as collective. e.11. Affirmation of the usufructuary10 rights of identified and qualified agrarian reform beneficiaries to the land acquired under CARP as soon as the DAR takes possession of the same and even pending the issuance of the Certificate of Land Ownership Award (CLOA) or Emancipation Patent (EP) (Sec. 24, RA 6657, as amended by RA 9700) e.12. Imposition of a new requirement for the commencement of the rights and responsibilities of CARP beneficiaries their taking possession of the land awarded them (in addition to the grant of title as evidenced by the CLOA/ EP) (Sec. 24, RA 6657, as amended by RA 9700)

10 From the word usufruct which is defined under AO 2, S. 2009 (Rules and Procedures

Governing the Acquisition and Distribution of Agricultural Lands Under Republic Act (R.A.) No.

6657, as amended by R.A. No. 9700) as referring to a real right conferred on the

beneficiary/usufructuary to enjoy the fruits of the property of another with the obligation of

preserving its form, substance, and productivity. (Item III.11, AO 2, S. 2009)

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Before RA 9700, the rule is that the rights and responsibilities of a CARP beneficiary shall commence at the time the DAR makes an award to him, meaning at the time of conferment of title as evidenced by a registered CLOA or EP. The rule now is that the rights and responsibilities of a beneficiary commence at the time of his/her receipt of a duly registered EP or CLOA and their actual physical possession of the awarded land. Accordingly, beneficiaries become entitled to enjoy their rights and bound to fulfill their obligations as such upon the happening of two conditions, namely: (1) their receipt of the duly registered CLOA or EP; and (2) their actual physical possession of the awarded land.

e.13. On the payment of land amortization by agrarian reform beneficiaries Incorporation of an explicit rule for the said payment to start one (1) year from the registration of the certificate of land ownership award if the beneficiary is in occupancy of the awarded land or, otherwise, 1 year from the date when the beneficiary started occupying the property (Sec. 26, RA 6657, as amended by RA 9700)

That the amortization payments should start some time after the registration of the beneficiarys title is necessarily implied/ built into the provisions in the original provisions on amortization under RA 6657, as amended. However, the said provisions direct the payment of amortization regardless of the state of occupation/ possession by the beneficiaries of the awarded land.

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(f) AFFIRMATION OF THE NATURE OF CLOAS, EPS, AND OTHER TITLES ISSUED UNDER ANY AGRARIAN REFORM PROGRAM AS TORRENS TITLES WITH THE SAME FEATURES OF INDEFEASIBILITY AND IMPRESCRIPTIBILITY as all other land titles brought under the Torrens system of registration (Sec. 24, RA 6657, as amended by RA 9700). Previously acknowledged in case law, the imperative that Certificates of Landownership Award (CLOAs), Emancipation Patents (EPs), and other titles issued under any agrarian reform program are indefeasible and imprescriptible after one year from registration, found its way into statute. The rule is based on the affirmation of the fact that CLOAs, EPs, and such other titles are necessarily brought under the operation of the Torrens system of registration and, as such, must be conferred with the same indefeasibility and security afforded to all other titles under the said system. Nevertheless, the rule is subject to the conditions, limitations and qualifications of RA 6657, as amended by RA 9700, the property registration decree, and other pertinent laws.

(g) PROVISIONS INTRODUCED BY RA 9700 RELATING TO SUPPORT SERVICES g.1. RE: FUNDING FOR SUPPORT SERVICES, IN GENERAL

g.1.1. Increase in the share of Support Services in the total appropriations for agrarian reform from 25% to 40% (Sec. 36 of RA 6657, as amended by Sec. 13 of RA 9700)

g.1.2. Specific apportionment of the Support Service funds to different support service items / programs (Sec. 37, RA 6657, as amended by Sec. 14 of RA 9700). Prior to RA 9700, there is no specific distribution of the support services funds for the different support service programs or items under the CARP.

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Apportionment of Support Service Funds under RA 9700

(1) Thirty percent (30%) of the appropriations for support services (40% of total appropriations for agrarian reform) shall be immediately set

aside and made available for agricultural credit facilities. The agricultural credit fund is further apportioned for the following uses:

one-third (1/3): for subsidies to support the

initial capitalization for agricultural production to

new agrarian reform beneficiaries upon the

awarding of the emancipation patent or the certificate of land ownership award;

two-thirds (2/3): for socialized credit for existing

agrarian reform beneficiaries, including

leaseholders;

(2) The remaining seventy percent (70%) of the appropriations for the

support services shall be utilized, as follows:

fifteen percent (15%) for farm inputs as requested by the duly accredited agrarian reform

beneficiaries' organizations , such as, but not limited to: (1) seeds, seedlings and/or planting materials;

(2) organic fertilizers; (3) pesticides ; (4) herbicides;

and (5) farm animals, implements/machineries; and

five percent (5%) for seminars, trainings and the like to help empower agrarian reform beneficiaries.

eighty percent unspecified use

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g.2. MATTERS RELATING TO THE STRATEGY FOR SUPPORT SERVICE DELIVERY AND/OR PROGRAM BENEFICIARY DEVELOPMENT. These are matters introduced as amendments to Section 36 of RA 6657, as amended, by Section 13 of RA 9700.

g.2.1. Adoption of an INTEGRATED LAND ACQUISITION AND DISTRIBUTION AND SUPPORT SERVICES STRATEGY that requires a support service delivery plan to be developed parallel to the land acquisition and distribution process. A prescription to undertake a complementary or hand-in-hand planning and implementation of the land acquisition and distribution program, on the one hand, and the support service delivery program, on the other, is explicitly provided as a necessary feature of the integrated strategy. g.2.2. Increase in the minimum number of Agrarian Reform Communities (ARCs) to be established per year, per legislative district with predominant agricultural population from one (1) ARC to two (2) ARCs

g.2.3. In the establishment of such ARCs, inclusion of community-based cooperatives in the list of stakeholders with whom the DAR is required to coordinate. Thus, the DAR must now relate to such cooperatives along with concerned local government units, non-governmental organizations, and people's organizations in the establishment of ARCs.

g.2.4. Prescription for a complementary support services delivery strategy for existing agrarian reform beneficiaries that are not in barangays within the ARCs. This provision recognizes the pressing need to address the shortfall in support service delivery in non-ARC barangays, which were not even mentioned in the CARP law.

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g.2.5. In securing/ mobilizing funds for support services, imposition of the requirement that the DAR must closely coordinate with the Congressional Oversight Committee (COCAR), with due notice to the concerned representative of the legislative district prior to the implementation in the packaging of proposals and receipt of grants, aids and other forms of financial assistance from any source. Prior to RA 9700, there is no provision in the CARP law that specifically requires the DAR to coordinate with any entity relative to its authority to package proposals and receive grants or any other form of financial assistance for its programs. This provision is a significant accountability measure. (See discussion on the COCAR under Item 5 below).

g.3. PROVISIONS OF THE NEW LAW RELATING TO SUPPORT SERVICES DELIVERY FOR AGRARIAN REFORM BENEFICIARIES.

Section 14 of RA 9700 introduced major amendments to Section 37 of RA 6657 (captioned Support Services to Beneficiaries). In general, these amendments enhanced the original section by: (a) directing the institution of reforms to liberalize access to credit by agrarian reform beneficiaries; (b) supplementing the list of types of support services that the state must afford farmer-beneficiaries; (c) specifying how particular support service items for beneficiaries are to be funded; and (d) designating entities that shall be in charge of financial assistance to ARBs. Section 15 of RA 9700 incorporates a new section into the CARP law Section 37-A that treats of Equal Support Services for Rural Women.

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g.3.1. Mandate for the institution of reforms to liberalize access to credit by agrarian reform beneficiaries. The mandate to institute such reforms is directed at the DAR, the Department of Finance, and the Bangko Sentral ng Pilipinas (BSP). g.3.2. Provision for direct and active DAR assistance in the education and organization of actual and potential agrarian reform beneficiaries, at the barangay, municipal, city, provincial, and national levels, towards helping them understand their rights and responsibilities as owner-cultivators developing farm-related trust relationships among themselves and their neighbors, and increasing farm production and profitability with the ultimate end of empowering them to chart their own destiny. This is an additional item in the list of support services for beneficiaries. g.3.3. Adoption of socialized terms on credit facilities as a form of support service to beneficiaries. This replaced the previously listed liberalized terms of credits and production loans for beneficiaries (under Sec. 37 of RA 6657, as amended). g.3.4. Specific apportionment of the Support Service funds to different support service items / programs (See item g.1.2* above)

g.3.5. Designation of entities that will provide the delivery system for disbursement of financial assistance to agrarian reform beneficiaries with a provision on COLLATERAL FOR LOANS. Section 37, as amended, names the following entities for the purpose described above:

Land Bank of the Philippines Other concerned government financial institutions Accredited savings and credit cooperatives Financial service cooperatives Accredited cooperative banks

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The section continues to state that all financing institutions may accept as collateral for loans purchase orders, marketing agreements or expected harvests with the proviso that the loans obtained shall be used in the improvement or development of the farmholding of the agrarian reform beneficiary or the establishment of facilities which shall enhance production or marketing of agricultural products or increase farm income therefrom.

g.3.6. Provisions ensuring that support services shall be extended equally to men and women agrarian reform beneficiaries. This is introduced into the CARP Law by RA 9700 by inserting Section 37-A into RA 6657. This section mainly provides for that:

(1) Support services shall be extended equally to women and

men agrarian reform beneficiaries.

(2) The PARC shall ensure: (a) that these support services must integrate the specific needs and well-being of women farmer beneficiaries taking into account the specific requirements of female family members of farmer-beneficiaries; (b) that rural women will be able to participate in all community activities.

(3) Women are entitled to self-organization in order to obtain

equal access to economic opportunities and to have access to agricultural credit and loans, marketing facilities and technology, and other support services, and equal treatment in land reform and resettlement schemes.

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g.3.7. Provision for the establishment of a womens desk at the DAR. Section 37- A also directs the DAR to establish and maintain a womens desk. The desk shall be primarily responsible for:

(1) formulating and implementing programs and activities

related to the protection and promotion of women's rights; and

(2) providing a venue where women can register their complaints and grievances that are principally related to their rural activities.

g.4. PROVISION OF THE NEW LAW RELATING TO SUPPORT SERVICES FOR LANDOWNERS. Section 16 of RA 9700 introduced amendments into Section 38 of the CARP law, which treats of support services for landowners. The more notable amendments are, as follows:

g.4.1. Adjustments in the conditions for the redemption by the LBP of the landowners LBP bonds. Prior to RA 9700, the rule is that the LBP shall redeem a landowner's LBP bonds at face value, provided that the proceeds thereof shall be invested in a BOI-registered company or in any agribusiness or agro-industrial enterprise in the region where the landowner has previously made investments, to the extent of thirty percent (30%) of the face value of said LBP bonds. RA 9700 increased the required investments to fifty percent (50%) of the proceeds of the LBP bonds. It also provides that such investments must be in the region where the CARP-covered landholding is located instead of the in the region where the landowner has previously made investments.

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g.4.2. Additional 2% cash incentive. The new law provides for an additional incentive of two percent (2%) in cash in favor of a landowner who maintains his/her enterprise as a going concern for five (5) years or keeps his/her investments in a BOI registered firm for the same period.

g.4.3. Mandate for program development for landowners support services. RA 9700 directs the DAR, the LBP and the Department of Trade and Industry to jointly formulate a program to carry out the provision on support services for landowners under the supervision of the PARC: Provided, That in no case shall the landowners sex, economic, religious, social, cultural and political attributes exclude them from accessing these support services." Note: The non-discrimination clause of Section 38, RA 6657, as amended by RA 9700, does not appear in the previous section treating of support services for agrarian reform beneficiaries.

(h) PROVISIONS OF THE NEW LAW RELATING TO AGRARIAN JUSTICE

The immediately following items describe the innovations of RA 9700 related to the agrarian justice provisions of the CARP law. Part III of this Primer presents the more critical of these provisions in greater detail. h.1. Institution of the Referral System relative to agrarian disputes. Inserted into the CARP law through Section 19 of RA 9700, Section 50-A treats of the referral of cases filed with the prosecutorial services or the courts to the Department of Agrarian Reform. In particular, Section 50-A provides, that If there is an allegation from any of the parties that the case is agrarian in nature and one of the parties is a farmer, farmworker, or tenant, the case shall be automatically referred by the judge or the prosecutor to the DAR which shall determine and certify within fifteen (15) days from referral whether an agrarian dispute exists.

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The provision necessarily implies that a positive finding as to the existence of an agrarian dispute11 means that the case or matter is properly cognizable by the DAR and, as such cannot proceed before the prosecutor or the court.

The referral system is a procedural mechanism designed to help ensure observance of the provisions of RA 6657, as amended, relative to the jurisdiction of the DAR. These provisions are: (a) in general, primary jurisdiction to determine and adjudicate agrarian reform matters (Sec. 50, RA 6657); and (b) exclusive original jurisdiction over all matters involving the implementation of agrarian reform, except those falling under the exclusive jurisdiction of the Department of Agriculture (DA) and the Department of Environment and Natural Resources or DENR (Sec. 50 and Sec. 50-A).

The DAR has, on 15 October 2009, issued Administrative Order (AO) No. 412, the implementing guidelines on the referral of agrarian disputes. A portion of Part III of this tackles the referral mechanism under the RA 9700 (Sec. 19) as implemented by the said AO.

11 Under Sec. 3 (Definitions) of RA 6657, Agrarian Dispute refers to any controversy relating to

tenurial arrangements, whether leasehold, tenancy, stewardship or otherwise, over lands devoted

to agriculture, including disputes concerning farm workers associations or representation of

persons in negotiating, fixing, maintaining, changing or seeking to arrange terms of conditions of

such tenurial arrangements.

It includes any controversy relating to compensation of lands acquired under this Act and other

terms and conditions of transfer of ownership from landowners to farm workers, tenants and

other agrarian reform beneficiaries, whether the disputants stand in the proximate relation of

farm operator and beneficiary, landowner and tenant, or lessor and lessee.

12 AO No. 4, Series of 2009: Rules and Regulations Implementing Section 19 of R.A. No. 9700

(Jurisdiction on and Referral of Agrarian Disputes).

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h.2. Recognition of the Legal Standing of potential farmer-beneficiaries and their organizations. Section 19 of RA 9700 also recognizes the legal standing and interest to intervene of agrarian reform beneficiaries or identified beneficiaries and/or their associations in cases filed before courts or quasi-judicial bodies, where these cases involve their individual or collective rights and/or interests under the CARP.

With respect to these beneficiaries associations, the fact that the same are not registered with the Securities and Exchange Commission, the Cooperative Development Authority, or any concerned government agency shall not be used against them to deny the existence of their legal standing and interest in the said case/s filed before the courts and quasi-judicial bodies. h.3. Modifications in the Provision Prohibiting the Issuance of Restraining Orders in any case, dispute or controversy arising from, necessary to, or in connection with the application, implementation, enforcement, or interpretation of this Act and other pertinent laws on agrarian reform. Section 20 of RA 97OO amends Section 55 of RA 6657 (captioned No Restraining Order or Preliminary Injunction) in the following manner:

The Supreme Court is excepted from the general rule that

no court in the Philippines shall have jurisdiction to issue any restraining order or writ of preliminary injunction against the PARC, the DAR, or any of its duly authorized or designated agencies in any case, dispute or controversy arising from, necessary to, or in connection with the application, implementation, enforcement, or interpretation of this Act and other pertinent laws on agrarian reform.

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The DAR is explicitly mentioned as one of the entities protected against said restraining orders and preliminary injunction.

h.4. Modification of the Provision on the Immunity of Government Agencies from Undue Interference. It used to be that, in the implementation of the program (CARP), LOWER COURTS are prohibited from issuing any injunction, restraining order, prohibition or mandamus against the DAR, the DA, the DENR, and the Department of Justice. (Sec. 68, RA 665713). Section 23 of RA 9700 amends Section 68 of the CARP law, and replaced lower courts with regional trial courts, municipal trial courts, municipal circuit trial courts, and metropolitan trial courts. It is our opinion, that before this amendment, Section 68 admits of the interpretation that the restriction against courts applies even to the Court of Appeals based on Section 16, Chapter 4 Book II of the EO 292 (the Revised Administrative Code or RAC). This provision includes the Court of Appeals in the phrase lower courts, as follows:

Section 16. Judicial Power. - The judicial power shall be vested in one (1) Supreme Court, and in such lower courts as may be established by law. Such lower courts include the Court of Appeals, Sandiganbayan, Court of Tax Appeals, Regional Trial Courts, Shari's District Courts, Metropolitan Trial Courts, Municipal Trial Courts and Municipal Circuit Trial Courts, and Shari'a Circuit Courts and they shall continue to exercise their respective jurisdiction until otherwise provided by law.

13 Section 25. Immunity of Government Agencies from Undue Influence. No injunction,

restraining order, prohibition or mandamus shall be issued by the lower courts against the DAR,

the DA, the DENR and the Department of Justice in their implementation of the CARP.

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Accordingly, the amendment caused by RA 9700 to Section 68 effectively removes the Court of Appeals from the courts prohibited from issuing the different orders / writs against the DAR, DA, DENR, and the DOJ relative to their particular tasks or functions in the implementation of the agrarian reform program.

h.5. Transfer of Jurisdiction over cases involving the cancellation of CLOAs / EPs from the DAR Adjudication Board to the Secretary of Agrarian Reform. The last paragraph of Section 24 of RA 9700 states that "[A]ll cases involving the cancellation of registered emancipation patents, certificates of land ownership award, and other titles issued under any agrarian reform program are within the exclusive and original jurisdiction of the Secretary of the DAR." This changes the long standing rule, as expressed in the DARAB rules of procedure and the DAR administrative guidelines on Agrarian Law Implementation (ALI) cases, that jurisdiction over cancellation of EPs, CLOAs, and other titles issued under any agrarian reform program lies with the DARAB.

h.6. Strengthening and Enhancement of the Penal Provisions of the CARP law. Section 24 of RA 9700 enhanced Section 73 of RA 6657, as amended, by: (a) adding to the list of prohibited acts and omissions penalized under Section 74 of the law; (b) making qualifications/ adjustments to certain prohibited acts and omissions as originally defined under RA 6657.

As to the penalties corresponding to the prohibited acts and omissions, Section 25 of RA 9700, amending Section 74 of RA 6657, introduced penalties that are generally stiffer than those previously defined (under RA 6657), thus strengthening the penal provisions of the law.

See Table II Re: Agrarian Offenses and their Corresponding Penalties under RA 6657, as amended, below

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5. WHAT MEANS AND/OR MECHANISMS EXTRANEOUS TO THE CARP PROCESSES ARE PROVIDED FOR OR ESTABLISHED UNDER RA 9700 TO HELP ENSURE ITS PROPER AND EFFECTIVE IMPLEMENTATATION?

To help ensure its proper and effective implementation, RA 9700 provided for the following: 5.1. Creation of a Joint Congressional Oversight Committee on Agrarian

Reform (COCAR) that has the overall function of overseeing and monitoring the implementation of the law Composition: The COCAR shall be composed of the Chairpersons of the Committee on Agrarian Reform of both Houses of Congress, three (3) Members of the House of Representatives, and three (3) Members of the Senate of the Philippines, to be designated respectively by the Speaker of the House of Representatives and the President of the Senate of the Philippines. Funding Support: The Committee is provided with the necessary appropriations for its operation. An initial amount of twenty-five million pesos (P25,000,000.00) is appropriated for the first year of its operation, with the same amount authorized to be appropriated every year thereafter. The term of the COCAR shall end six (6) months after the expiration of the extended period of five (5) years.

Specific Powers and Functions: The COCAR shall have the following powers and functions:

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COCAR POWERS AND FUNCTIONS

(a) Prescribe and adopt guidelines which shall govern its work;

(b) Hold hearings and consultations, receive testimonies and reports pertinent to its specified concerns;

(c) Secure from any department, bureau, office or instrumentality of the government

such assistance as may be needed, including technical information, preparation and production of reports and submission of recommendations or plans as it may

require, particularly a yearly report of the record or performance of each agrarian

reform beneficiary as provided under Section 22 of Republic Act No. 6657, as amended;

(d) Secure from the DAR or the LBP information on the amount of just compensation

determined to be paid or which has been paid to any landowner;

(e) Secure from the DAR or the LBP quarterly reports on the disbursement of funds

for the agrarian reform program;

(f) Oversee and monitor, in such a manner as it may deem necessary, the actual implementation of the program and projects by the DAR;

(g) Summon by subpoena any public or private citizen to testify before it, or require by subpoena duces tecum to produce before it such records, reports, or other documents as may be necessary in the performance of its functions;

(h) Engage the services of resource persons from the public and private sectors as

well as civil society including the various agrarian reform groups or organizations in the different regions of the country as may be needed;

(i) Approve the budget for the work of the Committee and all disbursements

therefrom, including compensation of all personnel;

(j) Organize its staff and hire and appoint such employees and personnel whether

temporary, contractual or on consultancy, subject to applicable rules; and

(k) Exercise all the powers necessary and incidental to attain the purposes for which it is created.

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5.2. Periodic Reports by the COCAR to the leaders of the Houses of Congress and to the PARC. Section 28 of RA 9700 provides that the COCAR shall submit to the Speaker of the House of Representatives and to the President of the Senate of the Philippines periodic reports on its findings and recommendations on actions to be undertaken by both houses of Congress, the DAR, and the PARC. Thus, the law itself is explicit that the output of the COCAR must reach the States top policymakers. It is of course expected that proper action on the findings and recommendations of the committee are taken by the said authorities. The reporting requirement also charges the COCAR itself, to properly perform its functions.

5.3. Access to Information on the amount of Just Compensation paid to

any landowner. Under Section 29 of RA 9700, information on the amount of just compensation paid to any landowner under Republic Act No. 6657, as amended, and other agrarian reform laws shall be deemed public information, notwithstanding the provisions of Republic Act No. 1405 and other pertinent laws. RA No. 1405 is the law prohibiting disclosure of or inquiry into, deposits with any banking institution and providing penalty for the acts prohibited. Section 29 thus creates an exemption from the coverage of RA No. 1405 relative to landowners just compensation which, as a rule, is deposited in an accessible bank in the name of the landowner. (See Sec. 16(e), RA 6657, as amended) The provision will clearly facilitate disclosure of information that is critical in policy-making. Moreover, the provision is expected to inspire a higher level of accountability on the part of offices or officials involved in the processing and computation of just compensation because information on the same is rendered open to public access and scrutiny.

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PART II. LAND ACQUISITION AND DISTRIBUTION This part threshes out matters and issues relating to the Land Acquisition and Distribution (LAD) component of the agrarian reform program to the extent that they are affected by RA 9700. Nonetheless, certain LAD matters based on provisions of RA 6657 not in any way disturbed by RA 9700 are presented to lend to a thorough and continuous flow of discussion/ presentation on particular areas of concern relative to LAD. The more critical provisions of applicable administrative regulations, primarily those under DAR AO No. 2, Series of 200914 are incorporated into the discussion of the LAD issues and concerns. Unless otherwise stated, where the discussion of an issue item merely cites an administrative regulation as basis, the same shall mean that there is nothing directly or explicitly stated in the statute relative to the issue being discussed. A. LAD Implementation Schedule and Modes

of Acquisition

(1) WHAT IS THE SCHEDULE OF ACQUISITION AND DISTRIBUTION OF

LANDS COVERED BY CARP?

Section 5 of RA No. 9700, amending Section 7 (Priorities) of RA 6657 directs the acquisition and distribution of agricultural lands to be completed by June 30, 2014, and in accordance with a phasing plan or schedule as provided in the following matrix:

14 Rules and Procedures Governing the Acquisition and Distribution of Agricultural Lands

Under Republic Act No. 6657, As Amended by R.A. No. 9700 (October 15, 2009).

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Table I. LAD IMPLEMENTATION SCHEDULE / PHASES

Phase & Period of

Implementation

Agricultural Lands Covered

PHASE 1

Immediately upon the effectivity of RA

9700 or July 1, 2009

to June 30, 2012

> Private agricultural lands of landowners with aggregate landholdings in excess of fifty (50) hectares which have

already been subjected to a notice of coverage issued on or before December 10, 2008;

> Rice and corn lands under Presidential Decree No. 27;

> Idle or abandoned lands;

> Lands voluntarily offered by the owners for agrarian

reform this includes lands offered under the Voluntary Offer to Sell (VOS) scheme and under the

Voluntary Land Transfer (VLT) scheme, but only with respect to lands covered VLT applications submitted as

of June 30, 200915;

> Lands foreclosed by government financial institutions;

> Lands acquired by the Presidential Commission on Good

Government (PCGG);

> Other lands owned by the government devoted to or

suitable for agriculture.

PHASE 2A July 1, 2009 to

June 30, 2012

> Private agricultural lands of landowners with aggregate landholdings above twenty-four (24) hectares up to fifty

(50) hectares which have already been subjected to a

notice of coverage issued on or before December 10, 2008;

> Alienable and disposable public agricultural lands;

15 As clarified under AO 2, Series of 2009.

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Phase & Period of

Implementation

Agricultural Lands Covered

> Arable public agricultural lands under agro-forest, pasture and agricultural leases already cultivated and

planted to crops in accordance with Section 6, Article XIII of the Constitution;

> Public agricultural lands which are to be opened for new

development and resettlement;

PHASE 2B

July 1, 2012 to

June 30, 2013

> All remaining private agricultural lands of landowners

with aggregate landholdings in excess of twenty-four

(24) hectares, regardless as to whether these have been subjected to notices of coverage or not;

PHASE 3A

July 1, 2012 to

June 30, 2013

> Lands of landowners with aggregate landholdings above

ten (10) hectares up to twenty four (24) hectares ,

insofar as the excess hectarage above ten (10) hectares is concerned;

PHASE 3B July 1, 2013 to

June 30 , 2014

> Lands of landowners with aggregate landholdings from the retention limit up to ten (10) hectares;

This phase shall not be implemented in a particular province until at least ninety percent (90%) of the provincial balance xxx as of January 1, 2009 under Phase One, Phase Two (a) , Phase Two (b), and Phase Three (a), excluding lands under the jurisdiction of the Department of Environment and Natural Resources (DENR), have been successfully completed.

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(2) ARE THERE ANY SITUATIONS WHERE THE CARP IMPLEMENTING AGENCIES MAY DEVIATE FROM THE PRESCRIBED IMPLEMENTATION SCHEDULE?

Yes. Land acquisition and distribution shall be completed by June 30, 2014 on a province-by-province basis following, in general, the above implementation schedule or order of priority. The exceptions and/or qualifications to the general rule are:

(a) Implementation ahead of schedule. In provinces declared as priority land reform areas, the acquisition and distribution of private agricultural lands under advanced phases may be implemented ahead of the above schedules on the condition that prior phases in these provinces have been completed.

Provinces may be declared priority land reform areas by the Presidential Agrarian Reform Council (PARC) or the PARC Executive Committee (PARC EXCOM) upon the recommendation of the Provincial Agrarian Reform Coordinating Committee (PARCCOM). (Sec. 7, RA 6657, as amended by RA 9700)

(b) Implementation that cannot be pursued despite the set schedule. Notwithstanding the implementation schedules, Phase 3(b) shall not be implemented in a particular province until at least ninety percent (90%) of the provincial balance as of January 1, 2009 under Phase 1, Phase 2(a), Phase 2(b), and Phase 3(a), excluding lands under the jurisdiction of the Department of Environment and Natural Resources (DENR), have been successfully completed. (Sec. 7, RA 6657, as amended by RA 9700)

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(3) MAY THE DAR AND/OR OTHER CARP IMPLEMENTING AGENCIES UNDERTAKE THE ACQUISITION AND DISTRIBUTION OF LANDS COVERED BY PREVIOUS PHASES?

There is nothing directly stated in RA 9700 and in AO No. 2, S. 2009 for the pursuit of the LAD process in the situation presented. Neither is there a provision prohibiting the same. In view of the extensive coverage of the CARP and the critical mandate for its completion, we submit that the coverage, acquisition, and distribution of landholdings covered under previous phases may be pursued even beyond that phase. The interpretation should be in favor of the full implementation of the program. Moreover, the acquisition and implementation periods under the phasing scheme should be regarded as merely directory, instead of mandatory. To borrow from the declarations in DOJ Opinion No. 09, S. 1997 (on the issue of whether or not the ten-year schedule of implementation specified in Section 5 of the Comprehensive Agrarian Reform Law (R A No 6657) is mandatory or directory): It has been held that the difference between a mandatory and a directory provision is often determined on grounds of expediency. And where a provision embodies a rule of procedure rather than one of substance, the provision as to time will be regarded as directory only notwithstanding the mandatory nature of the language used. (See Marcelino vs. Cruz, Jr., 121 SCRA 51, citing authorities). The overriding rule is for the acquisition and distribution of all agricultural lands to, among others, advance the policy of the State to promote social justice fleshing out in the process the legal rights and entitlements of farmers and farmworkers to the land. The policy of the State and the promotion of the rights of farmers and farmworkers are a matter of substance. The phasing scheme in the acquisition and distribution of lands, on the other hand, is essentially a rule of procedure and, thus, merely directory. Otherwise, the policy for the distribution of all agricultural lands to qualified beneficiaries will be defeated by governments failure to complete land distribution within the applicable phase.

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(4) WHAT BECOMES OF CARP-COVERED LANDHOLDINGS THAT ARE NOT YET AWARDED TO BENEFICIARIES BY JUNE 30, 2014?

Under Item IV.A.1. of AO No. 2, S. 2009, the process of acquisition and distribution for landholdings which were issued with Notices of Coverage (NOCs) on or before June 30, 2014 shall continue even after June 30, 2014 until the said lands have been awarded to qualified beneficiaries. In this regard, attention is called to Section 30 (Resolution of Cases) of RA 9700 which states that [A]ny case and/or proceeding involving the implementation of the provisions of Republic Act No. 6657, as amended, which may remain pending on June 30, 2014 shall be allowed to proceed to its finality and be executed even beyond such date. The rule in the administrative guidelines, as discussed, finds some basis in this section. Thus, if the CARP-covered landholdings have been issued NOCs before June 30, 2014, the ARBs therein can expect the LAD process to continue until lands are awarded to them. Otherwise, even if the landholding has been identified as subject to CARP, the absence of an NOC over the land as of June 30, 2014, will bar further acquisition and distribution proceedings including the award of the lands to beneficiaries who may have already qualified as such.

(5) WHAT ARE THE MODES OF ACQUISITION ALLOWED UNDER RA NO. 9700?

RA No. 970016 has limited the modes of acquisition to: (a) Voluntary Offer to Sell (VOS); and (b) Compulsory Acquisition (CA) effective 1 July 2009 (the date of the laws effectivity). The voluntary land transfer (VLT) scheme shall be allowed for lands covered by VLT applications submitted as of June 30, 2009.17

16 Through Sec. 5 of RA 9700 amending Sec. 7 of RA 6657, as amended.

17 Under AO 2, S. 2009, the provision that only voluntary land transfers submitted by June 30,

2009 is construed to pertain to VLT applications submitted as of June 30, 2009.

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(6) WHAT ARE THE RULES ON THE ACQUISITION AND DISTRIBUTION OF LANDHOLDINGS COVERED BY VLT APPLICATIONS?

All VLT applications submitted to DAR after June 30, 2009 shall no

longer be processed. (Item IV.C.2, AO 2, S. 2009)

Landholdings above five hectares which were offered under VLT but not approved by the DAR shall be covered under compulsory acquisition (Item IV.C.2, AO 2, S. 2009).

By necessary implication, VLT offers/applications pertaining to landholdings five hectares and below which were not approved by the DAR will not be covered even under compulsory acquisition. The rule must be pursuant to the provision in RA 970018 particularly that landholdings of landowners with a total area of five (5) hectares and below shall not be covered for acquisition and distribution to qualified beneficiaries.

The acquisition and distribution of these lands subject of submitted

VLT applications must be undertaken within Phase 1 of the LAD implementation schedule (July 1, 2009 to June 30, 2012).

(7) WHAT ARE THE RULES RELATING TO THE VOLUNTARY OFFER TO SELL (VOS) SCHEME INSOFAR AS THE SAME RELATE TO MATTERS INTRODUCED INTO THE CARP LAW BY RA 9700?

Under the LAD implementation schedule, lands voluntarily offered by

the owners for agrarian reform under the Voluntary Offer to Sell (VOS) scheme are covered under Phase 1 ( July 1, 2009 to June 30, 2012); (Sec. 7, RA 6657, as amended)

18 Sec. 3, RA 9700 amending Sec. 4 (Scope) of RA 6657, as amended.

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The land offered to the DAR shall be acquired and distributed within the said phase regardless of the size of thereof. Appropriately, Item IV.C.3 of AO 2, S. 2009 provides that in any case, the DAR can immediately subject such landholding to coverage under compulsory acquisition and distribution under CARP notwithstanding the schedule of prioritized phasing under R.A. No. 9700. In addition, the rule directs that the DAR acceptance letter for the VOS must stipulate that upon offer under VOS, the schedule of coverage under R.A. No. 9700 is deemed waived.

Upon its acceptance by the DAR, the Letter-Offer for coverage under Voluntary Offer to Sell (VOS) can no longer be withdrawn. (Item IV.C.3 of AO 2, S. 2009)

(8) GIVEN THE DIFFERENT PHASES OF IMPLEMENTATION, WHEN ARE THE NOTICES OF COVERAGE (NOC) RELATIVE TO CARP-COVERED LANDHOLDINGS TO BE ISSUED? This procedural matter is provided for under Item IV.A. 4 of DAR AO 2, S. 2009, as follows:

(a) For landowners owning more than ten (10) hectares. The NOC shall be issued to landowners not later than 90 days prior to the scheduled date of acquisition and distribution of their landholding.

(b) For landowners owning more than five (5) up to ten (10) hectares. The NOCs shall be issued on or after July 1, 2013.19

19 The rules relating to NOCs are applicable only to landholdings programmed for acquisition and

distribution under the compulsory acquisition scheme.

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(9) ARE NOTICES OF COVERAGE TO BE ISSUED ANEW TO LANDOWNERS OF LANDHOLDINGS WITH NOCs ALREADY ISSUED AT THE TIME OF THE EFFECTIVITY OF RA 9700? No. In the case of lands for which NOCs have already been issued, the DAR Provincial Office (DARPO) shall send a memorandum to the Municipal Agrarian Reform Officer (MARO), copy furnished the landowner, directing him/her to proceed with the process of land acquisition and distribution of the landholdings under the CARP, either immediately or on the specific schedule for the acquisition and distribution of the landholding under the acquisition and distribution schedule / phasing plan provided under RA 9700 / Item IV(A)(2) of AO 2, S. 2009. (Item IV.A.5, AO 2, S. 2009)

(10) MAY LANDOWNERS WHO RECEIVED NOCs FOR THEIR LANDHOLDINGS UNDER COMPULSORY ACQUISITION BE ALLOWED TO SHIFT TO VOS? Yes, but only if the claim folder (CF) for the subject landholding has not yet been received by the Claims Processing, Valuation and Payment Division (CPVPD) of the Land Bank of the Philippines (LBP) for valuation. (Item IV.C.3, AO 2, S. 2009)

(11) EXPERIENCE HAS SHOWN THE LAD PROCESS TO HAVE BEEN

HAMPERED BY THE FILING BY LANDOWNERS OF PROTESTS TO COVERAGE, APPLICATIONS FOR EXEMPTION/ EXCLUSION AND SIMILAR CASES. ARE THERE RULES THAT GUARD AGAINST DELAYS ON ACCOUNT OF THE SAME? Yes. The rule is explicit under Item IV.A.14 of AO 2, S. 2009 that

[N]otwithstanding a protest of coverage or an application for exemption or exclusion by a landowner, the processing of the claim folder, including valuation and the issuance of Certification of Deposit (COD) by the Land Bank of the Philippines (LBP) and the transfer of title to the Republic of

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the Philippines, shall continue unless the Regional Director or the DAR Secretary, as the case may be, suspends the processing based on preliminary findings on grounds for exemption or exclusion or the Supreme Court issues a Temporary Restraining Order (TRO) on the processing of the claim folder.

Moreover, the implementation of the program is actually intended to be carried out swiftly and, as much as possible, unhindered by legal processes including those coming from the courts. Thus, the provision of the law against the issuance of restraining orders or preliminary injunction (Sec. 5520, RA 6657, as amended) and that relating to the immunity of government agencies from undue interference (Sec. 6821, RA 6657, as amended). See discussion on related RA 9700 amendments under Part I.4 (h.3 and h.4)* hereof

20 "Sec. 55. No Restraining Order or Preliminary Injunction. Except for the Supreme Court, no court in the Philippines shall have jurisdiction to issue any restraining order or writ of

preliminary injunction against the PARC, the DAR, or any of its duly authorized or designated

agencies in any case, dispute or controversy arising from, necessary to, or in connection with the

application, implementation, enforcement, or interpretation of this Act and other pertinent laws

on agrarian reform."

21 "Sec. 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

metropolitan trial courts against the DAR, the DA, the DENR, and the Department of Justice in

their implementation of the program."

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B. Exemption of LGUs from the Prescribed Retention Limit and Expropriation vis--

vis the CARP Acquisition and Distribution

Process

(12) RA 9700 EXEMPTS PROVINCIAL, CITY, AND MUNICIPAL GOVERNMENTS FROM THE RULE ON PRESCRIBED FIVE (5)-HECTARE RETENTION LIMIT.22 WHAT ARE THE PARAMETERS OF THIS EXEMPTION?

By whom and when the exemption may be claimed: The exemption is in favor of provincial, city and municipal government units acquiring private agricultural lands through expropriation or other modes of acquisition for actual, direct, and exclusive public purposes. These public purposes include the use of the land for roads, bridges, public markets, school sites, resettlement sites, local government facilities, public parks and barangay plazas or squares; The intended public purpose must be consistent with the approved local comprehensive land use plan.

22 "Section 6-A. Exception to Retention Limits. Provincial, city and municipal government units acquiring private agricultural lands by expropriation or other modes of acquisition to be

used for actual, direct and exclusive public purposes, such as roads and bridges , public markets,

school sites, resettlement sites, local government facilities, public park s and barangay plazas or

squares, consistent with the approved local comprehensive land use plan, shall not be subject to

the five (5)-hectare retention limit under this Section and Sections 70 and 73(a) of Republic Act

No. 6657, as amended: Provided, That lands subject to CARP shall first undergo the land acquisition and distribution process of the program: Provided, further, That when these lands have been subjected to expropriation, the agrarian reform beneficiaries therein shall be paid just