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) 2010Unit Land Rights-ARRD Initiatives for Dialogue and Empowerment through Alternative Legal Services (IDEALS), Inc. 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 noncommercial 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. Tuaño 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) 2 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. 3 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. TAÑADA President Agrarian Justice Foundation, Inc. 4 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 menand 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 rightsagrarian 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. 5 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 6 5 G Provisions Introduced by RA 9700 Relating to Support Services H Provisions of the New Law Relating to Agrarian Justice 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-à-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 7 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. 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. The law does not itself provide for the short name “CARPER” but was given such nickname by agrarian reform advocates. 1 2 RA 6657 is also referred to as the CARP Law of 1988. 8 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 program’s 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. 9 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 law’s 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 LAW’S PURPOSES? The “extension” indicated in the title necessarily pertains only to the effective or practical continuation of the acquisition and distribution of CARPcovered 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 law’s 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 program’s implementation difficult and uncertain, to say the least. 10 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 CARP’s 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 tenyear 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 program’s 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 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) 3 11 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 panel’s 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 program’s 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) 12 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; 13 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 14 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 law’s 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 tiller’s rights and national food security. — As mentioned under item 4(a) a.1. 15 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. 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: 4 (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. 16 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 law’s 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) 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 5 6 Ibid. 17 d.4. Landowner’s 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 landowner’s 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.” 18 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 landowner’s 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. 19 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 law’s 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) 20 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 owner’s 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. 21 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 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. 7 22 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 possession”8 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 title’s 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 (CARPLA Form No. 7) xxx; 2. The DARMO shall: 2.1. Within five (5) days from receipt of the PARO’s 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) 23 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.” 24 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) 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) 10 25 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 beneficiary’s 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. 26 (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 SUPPORT SERVICES g.1. BY RA 9700 RELATING TO 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. 27 Apportionment of Support Service Funds under RA 9700 (1) (2) 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; 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 28 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. 29 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”. 30 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 farmrelated 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 31 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. 32 g.3.7. Provision for the establishment of a women’s desk at the DAR. — Section 37- A also directs the DAR to establish and maintain a women’s desk. The desk shall be primarily responsible for: g.4. (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. 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.” 33 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 50A 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. 34 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. 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. 11 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. AO No. 4, Series of 2009: Rules and Regulations Implementing Section 19 of R.A. No. 9700 (Jurisdiction on and Referral of Agrarian Disputes). 12 35 h.2. Recognition of the Legal Standing of potential farmerbeneficiaries 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 quasijudicial 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.” 36 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.” 37 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 38 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: 39 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. 40 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 State’s 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. 41 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: 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). 14 42 Table I. LAD IMPLEMENTATION SCHEDULE / PHASES Phase & Period of Implementation 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. > 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; PHASE 2A July 1, 2009 to June 30, 2012 15 Agricultural Lands Covered As clarified under AO 2, Series of 2009. 43 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. 44 (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) 45 (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 government’s failure to complete land distribution within the applicable phase. 46 (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 law’s 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. 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. 17 47 (6) WHAT ARE THE RULES ON THE DISTRIBUTION OF LANDHOLDINGS APPLICATIONS? ACQUISITION AND COVERED BY VLT 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. (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? 18 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). 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) Sec. 3, RA 9700 amending Sec. 4 (Scope) of RA 6657, as amended. 48 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.” (8) 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) 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 The rules relating to NOCs are applicable only to landholdings programmed for acquisition and distribution under the compulsory acquisition scheme. 19 49 (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 50 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 "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." 20 "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." 21 51 B. Exemption of LGUs from the Prescribed Retention Limit and Expropriation vis-àvis 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. "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 compensation." 22 52 Effects of Exemption: Under Section 6-A of RA 6657, as amended by RA 9700, the exemption of the concerned LGU: (1) Releases it from the prohibition against owning more than five (5) hectares of agricultural land inclusive of the land to be acquired by virtue of the expropriation / acquisition. (See Sec. 70 in relation to Sec. 6 of RA 6657); and (2) Accordingly, makes it not culpable under Section 73(a) of RA 6657, which prohibits the ownership or possession, for the purpose of circumventing the provisions of RA 6657, as amended, of agricultural lands in excess of the total retention limits or award ceilings by any person, natural or juridical. (13) WHAT WILL BECOME OF THE COVERAGE OR THE ACQUISITION AND DISTRIBUTION OF PRIVATE AGRICULTURAL LANDS “SUBJECT TO CARP” IF THE SAME LANDHOLDINGS ARE ALSO TARGETED FOR EXPROPRIATION BY A LOCAL GOVERNMENT UNIT? As provided under Section 6-A of RA 9700, lands subject to CARP which are to be expropriated or acquired by provincial, city, or municipal government for public purpose/s (as described above) shall first undergo the land acquisition and distribution process of the program. When these lands have been subjected to expropriation, the agrarian reform beneficiaries (ARBs) therein shall be paid just compensation. 53 (14) WHAT ARE THE “LANDS SUBJECT TO CARP” WHICH MUST FIRST UNDERGO THE LAD PROCESS OF THE AGRARIAN REFORM PROGRAM? Item IV.A.7 of AO 2, S. 2009 defines such lands to be those “landholdings subject of expropriation or acquisition by the Local Government Units (LGUs) or any portions thereof not actually, directly and exclusively used for non-agricultural purposes” where “one or more of the following conditions apply”: (a) There is agricultural activity; (b) The land is suitable for agriculture; or (c) The land is presently occupied and tilled by farmer/s. (15) ARE ARBs WHOSE LANDS HAVE BEEN EXPROPRIATED BY LGUs DISQUALIFIED FROM BECOMING BENEFICIARIES OF OTHER LANDHOLDINGS? No. The expropriation of the ARBs’ lands and the payment of just compensation to them are without prejudice to the said ARBs’ qualifying as beneficiaries in other landholdings under the CARP. (Item IV.B.15, AO 2, S. 2009) (16) MAY IRRIGATED AND IRRIGABLE EXPROPRIATION BY LGUs? LANDS BE SUBJECT OF It would depend on the status of or prevailing conditions in the irrigated/irrigable land. While in general, LGUs may expropriate agricultural lands, Item IV.B.18 of AO 2, S. 2009 provides that “irrigable and irrigated lands where (1) there is agricultural activity, (2) land is suitable for agriculture, or (3) the land is presently occupied and tilled by farmers shall not be subject of expropriation by the LGUs.” Moreover, the rule provides that “[T]he expropriation/conversion of agricultural lands shall be subject to the existing guidelines of DAR on land conversion.” It should be noted that the conversion of irrigated and irrigable lands per se is disallowed by explicit provision of RA 9700.23 (See also Part I, Item 4.d.2* above) 23 Sec. 65, RA 6657,as amended by RA 9700. 54 C. Land Valuation and Just Compensation for Landowners (17) WHAT AMOUNT SHALL BE PAID TO THE LANDOWNERS AS JUST COMPENSATION FOR THEIR LANDS COVERED BY THE CARP? The compensation for lands covered under RA 6657, as amended shall be: (a) the amount determined in accordance with the criteria provided for in Section 17 of the said law and existing guidelines on land valuation; or (b) the value based on the order of the DAR Adjudication Board (DARAB) or the regular court, which has become final and executory. [Item IV.D. 1 of DAR AO 2, S. 2009] (18) WHAT ARE THE FACTORS TO BE CONSIDERED IN THE VALUATION OF THE LAND (OR THE DETERMINATION OF THE JUST COMPENSATION) UNDER RA 6657, AS AMENDED BY RA 9700? Under Section 17 of the amended CARP law, the factors to be considered are: a. b. c. d. e. f. g. h. i. the cost of acquisition of the land; the current value of like properties; the land’s nature, actual used and income; the sworn valuation by the owner; tax declarations; assessment made by government assessors; value of standing crops in the property; seventy percent (70%) of the zonal valuation of the Bureau of Internal Revenue (BIR) the social and economic benefits contributed by the farmers and the farm workers and by government to the property as well as the non-payment of taxes or loans secured from any government financing institution on the land “shall be considered additional factors” to determine the land’s value. 55 The factors of: (1) value of standing crops; and (2) 70% of the BIR zonal valuation [items g and h] were introduced into the law by RA 9700. The new law also explicitly requires that the factors in the determination of the value of the land be translated into a “basic formula” by the DAR. (19) HAS THE DAR ADOPTED A FORMULA FOR THE VALUATION OF LAND SUBJECT OF THE LAND TRANSFER PROGRAM OF AGRARIAN REFORM? Yes — The formula is found in Item IV.D. 1 of DAR AO 2, S. 2009, as follows: LV = (CNI x 0.60) Where: 1.1 + (CS x 0.30) + (MV x 0.10) LV CNI = = CS = MV = Land Value Capitalized Net Income (based on land use and productivity) Comparable Sales (based on fair market value equivalent to 70% of BIR Zonal Value) Market Value per Tax Declaration (based on Government assessment) If three factors are present When the CNI, CS and MV are present, the formula shall be: LV 1.2 = (CNI x 0.60) + (CS x 0.30) + (MV x 0.10) If two factors are present 1.2.1 When the CS factor is not present and CNI and MV are applicable, the formula shall be: LV = (CNI x 0.90) + (MV x 0.10) 56 1.2.2 When the CNI factor is not present, and CS and MV are applicable, the formula shall be: LV = (CS x 0.90) + (MV x 0.10) 1.3 If only one factor is present — When both the CS and CNI are not present and only MV is applicable, the formula shall be: LV = MV x 2 In no case shall the value of idle land using the formula (MV x 2) exceed the lowest value of land within the same estate under consideration or within the same barangay, municipality or province (in that order) approved by LBP within one (1) year from receipt of Claim Folder (CF). (Item IV.D. 1 of DAR AO 2, S. 2009) (20) WHO HAS THE PRIMARY RESPONSIBILITY IN THE VALUATION AND/OR DETERMINATION OF THE JUST COMPENSATION FOR THE LAND SUBJECT OF ACQUISITION AND DISTRIBUTION? Pursuant to Executive No. 405, S. 1990, the Land Bank of the Philippines (LBP) is primarily responsible for the determination of land valuation and compensation for all private lands suitable for agriculture under Voluntary Offer to Sell (VOS) and Compulsory Acquisition (CA). The DAR shall make use of the determination of the land valuation and compensation by the LBP, in the performance of its functions. (Sec. 1, EO No. 405) Through notice sent to the landowner pursuant to Section 16(a) of R.A. No. 6657, the DAR makes an offer to pay the corresponding value of the land. Under AO 2, S. 2009, such notice pertains to the Notice of Land Valuation and Acquisition (NLVA). The landowner has a period of thirty (30) days from receipt thereof within which to give his/her reply to the DAR. 57 (21) WHAT HAPPENS WHEN THE LANDOWNER REJECTS THE OFFER TO PAY BASED ON THE INITIAL VALUATION BY THE LAND BANK OR ALTOGETHER FAILS TO REPLY TO THE OFFER? Section 16 (d) of RA 6657 provides that “in case of rejection or failure to reply, the DAR shall conduct summary administrative proceedings to determine the compensation of the land by requiring the landowner, the LBP and other interested parties to submit evidence as to the just compensation for the land xxx.” Implementing the statutory provision, AO 2, S. 2009 states, that in case the landowner rejects the land valuation/ amount offered as just compensation or in case he or she fails to reply to the notice within thirty (30) days from receipt, the DAR Provincial Officer shall advise the Regional Agrarian Reform Adjudicator (RARAD)/ Provincial Agrarian Reform Adjudicator (PARAD) to conduct summary administrative proceedings for the preliminary determination of just compensation. (Item V.F.2.2., AO 2, Series of 2009)24 (22) WHAT ARE THE JURISDICTIONAL AMOUNTS RELATIVE TO THE CONDUCT OF SUMMARY ADMINISTRATIVE PROCEEDINGS FOR THE PRELIMINARY DETERMINATION OF JUST COMPENSATION BY THE DIFFERENT LEVELS OF THE DARAB? The jurisdictional amounts in the conduct of such summary administrative proceedings by the different levels of the DAR adjudicatory offices are provided under Section 2, Rule XIX, 2009 DARAB Rules, as follows: The advise on either the PARAD or the RARAD will depend on the initial land valuation of the Land Bank. The rule seems to have missed out notification of the DARAB as the Board has the authority to conduct the summary administrative proceedings in case the initial Land Bank valuation is Fifty Million Pesos (PhP50,000,000.00) and above (See Sec. 2, Rule XIX, 2009 DARAB 24 Rules). 58 “ SECTION 2. By whom Conducted. — The preliminary proceedings of land valuation for the purpose of the determination of just compensation for its acquisition shall be conducted: a. by the PARAD when the initial land valuation of the Land Bank of the Philippines (LBP) is less than Ten Million Pesos (PhP10,000,000.00); b. by the RARAD when the said valuation is Ten Million Pesos and above but not exceeding Fifty Million Pesos (PhP50,000,000.00); and c. by the Board when the said valuation is Fifty Million Pesos (PhP50,000,000.00) and above. In the event of non-availability, inhibition or disqualification of a designated PARAD in the locality, the RARAD concerned may conduct preliminary proceedings of land valuation notwithstanding that the jurisdictional amount is less than Ten (10) Million Pesos. On account of non-availability, inhibition or disqualification of the RARAD concerned, the Board may conduct the preliminary proceedings of land valuation or designate the same to an Adjudicator from among the PARADs in the region.” (23) WHAT IS THE AVAILABLE LEGAL RECOURSE OF A PARTY WHO IS NOT SATISFIED WITH THE PRELIMINARY DETERMINATION OF JUST COMPENSATION BY THE PARAD, RARAD, OR DARAB? Any party who disagrees with the decision may bring the matter to the court of proper jurisdiction for final determination of just compensation. (Sec. 16.f, RA 6657) 59 Under Section 6, Rule XIX of the 2009 DARAB Rules, “the party who disagrees with the decision of the Board/ Adjudicator may contest the same by filing an original action with the Special Agrarian Court (SAC) having jurisdiction over the subject property within fifteen (15) days from his receipt of the Board/ Adjudicator’s decision.” The section also requires that upon filing with the SAC, the party shall file with the Board/Adjudicator a “Notice of Filing of Original Action” together with a certified true copy of the petition filed with the SAC. It further provides that the failure to file such notice or to submit a certified true copy of the petition shall render the decision of the Board/Adjudicator final and executory. (24) ARE THE PROVISIONS GIVING AUTHORITY TO THE LAND BANK TO UNDERTAKE THE INITIAL VALUATION OF THE LAND AND THOSE AUTHORIZING THE DAR (through the different DARAB OFFICES) TO CONDUCT SUMMARY ADMINISTRATIVE PROCEEDINGS FOR THE PRELIMINARY DETERMINATION OF JUST COMPENSATION VIOLATIVE OF THE PRINCIPLE THAT THE DERTERMINATION OF JUST COMPENSATION IS THE FUNCTION OF THE COURTS? No. Having been in place long before the enactment of RA 9700, the authority of the LBP, the DAR and the DARAB offices relative to the determination of just compensation – had invariably seen contest before the courts, with cases reaching up to the Supreme Court level. And in a long line of cases, starting with the Association of Small Landowners v. Secretary of Agrarian Reform, 175 SCRA 342 (1989), the Supreme Court ruled that the role of the administrative offices in the fixing of just compensation for CARP-covered lands — being initial or preliminary — does not violate the principle that the determination of just compensation is essentially a judicial function. In these cases, the Court emphasized that the determination by the administrative offices may be challenged before the courts, which has the ultimate authority to fix the just compensation for the lands being expropriated. 60 “Objection is raised, however, to the manner of fixing the just compensation, which it is claimed is entrusted to the administrative authorities in violation of judicial prerogatives. Specific reference is made to Section 16(d), which provides that in case of the rejection or disregard by the owner of the offer of the government to buy his land . . . the DAR shall conduct summary administrative proceedings to determine the compensation for the land by requiring the landowner, the LBP and other interested parties to submit evidence as to the just compensation for the land, within fifteen (15) days from the receipt of the notice. After the expiration of the above period, the matter is deemed submitted for decision. The DAR shall decide the case within thirty (30) days after it is submitted for decision. xxx xxx A reading of the aforecited Section 16(d) will readily show that it does not suffer from the arbitrariness that rendered the challenged decrees constitutionally objectionable. Although the proceedings are described as summary, the landowner and other interested parties are nevertheless allowed an opportunity to submit evidence on the real value of the property. But more importantly, the determination of the just compensation by the DAR is not by any means final and conclusive upon the landowner or any other interested party, for Section 16(f) clearly provides: Any party who disagrees with the decision may bring the matter to the court of proper jurisdiction for final determination of just compensation. 61 The determination made by the DAR is only preliminary unless accepted by all parties concerned. Otherwise, the courts of justice will still have the right to review with finality the said determination in the exercise of what is admittedly a judicial function.” [ASSOCIATION OF SMALL LANDOWNERS v. SECRETARY OF AGRARIAN REFORM, 175 SCRA 342 (1989)] --- o --- “Thus, under the law, the Land Bank of the Philippines is charged with the initial responsibility of determining the value of lands placed under land reform and the compensation to be paid for their taking [Sec. 1, E.O. No. 405 (June 14, 1990)]. Through notice sent to the landowner pursuant to §16(a) of R.A. No. 6657, the DAR makes an offer. In case the landowner rejects the offer, a summary administrative proceeding is held [Sec. 15(d), R.A. No. 6657] and afterward the provincial (PARAD), the regional (RARAD) or the central (DARAB) adjudicator as the case may be, depending on the value of the land, fixes the price to be paid for the land. If the landowner does not agree to the price fixed, he may bring the matter to the RTC acting as Special Agrarian Court [Vinzons-Magana v. Estrella, 201 SCRA 536 (1991); Association of Small Landowners in the Philippines, Inc. v. Secretary of Agrarian Reform, 175 SCRA 366 (1989)]. This in essence is the procedure for the determination of compensation cases under R.A. No. 6657. In accordance with it, the private respondent’s case was properly brought by it in the RTC, and it was error for the latter court to have dismissed the case. xxx xxx 62 What adjudicators are empowered to do is only to determine in a preliminary manner the reasonable compensation to be paid to landowners, leaving to the courts the ultimate power to decide this question.” (REPUBLIC OF THE PHILIPPINES vs. COURT OF APPEALS and ACIL CORPORATION, respondents, G.R. No. 12225, October 30, 1996) --- o --- “At any rate, in Philippine Veterans Bank v. CA, we held that there is nothing contradictory between the DAR’s primary jurisdiction to determine and adjudicate agrarian reform matters and exclusive original jurisdiction over all matters involving the implementation of agrarian reform, which includes the determination of questions of just compensation, and the original and exclusive jurisdiction of regional trial courts over all petitions for the determination of just compensation. The first refers to administrative proceedings, while the second refers to judicial proceedings. In accordance with settled principles of administrative law, primary jurisdiction is vested in the DAR to determine in a preliminary manner the just compensation for the lands taken under the agrarian reform program, but such determination is subject to challenge before the courts. The resolution of just compensation cases for the taking of lands under agrarian reform is, after all, essentially a judicial function.” (LAND BANK OF THE PHILIPPINES V. NATIVIDAD, G.R. No. 127198, May 16, 2005, 458 SCRA 441) 63 (25) WHAT BECOMES OF THE LAND ACQUSITION AND DISTRIBUTION PROCESS IN CASE THE LANDOWNER REJECTS THE JUST COMPENSATION INITIALLY DETERMINED BY THE LAND BANK? The process continues. If the landowner rejects the DAR’s offer to pay the corresponding land valuation (just compensation) or fails to give any response to such offer25, the compensation, which shall be in cash or LBP bonds, shall be deposited with an accessible bank designated by the DAR. Thereafter, the DAR shall take immediate possession of the land and shall request the proper Register of Deeds to issue a Transfer Certificate of Title (TCT) in the name of the Republic of the Philippines. The DAR shall thereafter proceed with the redistribution of the land to the qualified beneficiaries. The acquisition and distribution process is therefore not stalled and proceeds in like manner as where the landowner actually received payment. (Based on Section 16(e) of RA 6657) As it is, payment of the compensation is deemed achieved upon the deposit of the compensation in the name of the landowner who rejected the notice of land valuation or failed to give any response to the notice. (26) IS THE TAKING AND REDISTRIBUTION OF LANDS EVEN BEFORE ACTUAL PAYMENT – AS WHEN THERE IS MERELY A DEPOSIT OF THE COMPENSATION IN THE NAME OF THE LANDOWNER – A CONTRAVENTION OF THE PRINCIPLE IN EMINENT DOMAIN THAT REQUIRES ACTUAL PAYMENT BEFORE A PERSON IS DIVESTED OF HIS/HER PROPERTY? No. Confronted with a similar issue, the Supreme Court in the case of Association of Small Landowners v. Secretary Of Agrarian Reform, 175 SCRA 342 (1989) regarded the deposit as a fulfillment of the requirement for payment in the exercise of eminent domain. The Court ruled: AO 2, S. 2009 provides that the landowner has 30 days within which to give a response to the DAR regarding the offer. 25 64 “The last major challenge to CARP is that the landowner is divested of his property even before actual payment to him in full of just compensation, in contravention of a well-accepted principle of eminent domain. “The recognized rule, indeed, is that title to the property expropriated shall pass from the owner to the expropriator only upon full payment of the just compensation. Jurisprudence on this settled principle is consistent both here and in other democratic jurisdictions. xxx xxx xxx “The CARP Law, for its part, conditions the transfer of possession and ownership of the land to the government on receipt by the landowner of the corresponding payment or the deposit by the DAR of the compensation in cash or LBP bonds with an accessible bank. Until then, title also remains with the landowner [Sec.16(d)]. No outright change of ownership is contemplated either. “Hence, the argument that the assailed measures violate due process by arbitrarily transferring title before the land is fully paid for must also be rejected.” (27) WHAT LAD PROCESSES ARE SET INTO MOTION AFTER THE RECEIPT OF PAYMENT BY THE LANDOWNER OF THE DEPOSIT OF THE COMPENSATION IN HIS/HER NAME? (a) DAR TO TAKE POSSESSION OF THE LAND AND SECURE THE ISSUANCE OF THE RP TITLE. — The DAR shall: (a) take immediate possession of the land; and (b) request the proper Register of Deeds to issue a Transfer Certificate of Title (TCT) in the name of the Republic of the Philippine. The DAR shall thereafter proceed with the redistribution of the land to the qualified beneficiaries. (Section 16(e) of RA 6657, as amended) 65 The taking of possession of the land by the DAR is not conditioned on the issuance/ existence of the title in the name of the Republic (RP title). The rule is that such “taking of possession,” on the one hand, and the request for the issuance of said title, on the other, are to be done simultaneously. (b) FULFILLMENT OF THE USUFRUCTUARY RIGHTS OF ARBs. — As soon as the DAR takes possession of the land, the usufructuary rights over the same accrue in favor of "Identified and qualified agrarian reform beneficiaries” and it is, of course, incumbent upon the agency to flesh out this right. This right shall not be diminished even pending the awarding of the emancipation patent or the certificate of land ownership award. (Sec. 24, RA 6657, as amended by RA 9700) (c) AWARD OF LAND / CONFERMENT OF TITLE TO THE ARBs. — Within one hundred eighty (180) days from the date of registration of the title in the name of the Republic of the Philippines, the award to the beneficiaries shall have been completed. (Sec. 24 of RA 6657, as amended by RA 9700) Note: For tenanted lands or lands under leasehold, the Agrarian Reform Beneficiary/ies (ARB/s) shall continue to pay their lease rentals as tenants/lessees based on their leasehold contracts until such time that the LBP issues a Certification of Deposit (COD). (Item IV.C.5, AO 2, S. 2009) 66 D. Identification and Selection of Beneficiaries (28) WHO ARE QUALIFIED TO BECOME BENEFICIARIES OF THE AGRARIAN REFORM PROGRAM? Applying the “land to the tiller” precept, the CARP law provides that different types of farmers and farmworkers are entitled to become agrarian reform beneficiaries so long as they meet all other requirements (e.g. status of being landless) to qualify as such. Section 22 of RA 6657 (Qualified Beneficiaries), which was retained by RA 9700, lists these tiller categories according to the order of their priority in distribution, with the categories higher on the list being higher in priority. a. b. c. d. e. f. g. agricultural lessees and share tenants ; regular farm workers ; seasonal farm workers ; other farm workers ; actual tillers or occupants of public lands; collective or cooperatives of the above beneficiaries ; and others directly working on the land. (29) HOW IS THE ORDER OF PRIORITY FOR QUALIFIED BENEFICIARIES ACTUALLY APPLIED IN THE DISTRIBUTION OF AGRICULTURAL LANDS? RA 9700, through a provision supplementing Section 22 of the CARP law, explicitly provides for the manner by which the order of priority relative to qualified ARBs shall be applied in land redistribution. 67 More particularly, Section 22-A, the supplementary provision, directs the landholding of the landowner to be distributed first to qualified beneficiaries under Section 22, subparagraphs (a) and (b) – or to the agricultural lessees and share tenants and to regular farmworkers up to a maximum of three (3) hectares each. Section 22-A continues to state that “only when these beneficiaries have all received three (3) hectares each shall the remaining portion of the landholding, if any, be distributed to other beneficiaries under Section 22, subparagraphs (c), (d), (e), (f), and (g)." (30) ASIDE FROM BEING A FARMER/TILLER OR FARMWORKER, WHAT ARE THE OTHER REQUIREMENTS/ QUALIFICATIONS FOR ONE TO BE ELIGIBLE AS A BENEFICIARY UNDER THE CARP? General Qualifications. — Farmers/Tillers and farmworkers who meet the following qualifications shall be eligible as beneficiaries under the Comprehensive Agrarian Reform Program:26 a) b) c) d) He /she must be “landless,” which RA 6657 defines as owning less than three (3) hectares of agricultural land; He/she must be a Filipino citizen;27 He/she must be a permanent resident of the barangay or the municipality where the land is located;28 He/ she must be at least fifteen (15) years of age at the time of identification, screening and selection of farmer beneficiaries;29 The enumeration is essentially based on Sec. 22 of RA 6657, as amended, and all of the listed items are mentioned in AO 2, S. 2009. At any rate, items not explicitly stated in Sec. 22 of the CARP law but are nevertheless required in the said AO are accordingly annotated; 26 While not specifically mentioned in the CARP law, as amended, this item clearly proceeds from the citizenship requirement for owning lands under the Constitution; 27 AO 2, S. 2009 [Item IV.E.1 (1.1.3)] qualified the residence requirement in Sec. 22 of RA 6657, as amended, to be one of permanent residence; 28 68 e) He/ she must have the willingness, aptitude and ability to cultivate and make land as productive as possible. Specific Qualifications for farmworkers in commercial farms/ plantations. In addition to the above requirements, the farmworker must have been employed as of June 15, 1988 in the landholding covered under CARP. Moreover, all farmworkers who are holding managerial or supervisory positions as of June 15, 1988 shall not qualify as ARBs. However, farmworkers who were promoted to managerial or supervisory positions after they were identified, screened and selected shall remain as qualified ARBs.30 It should be noted, however, that farmworkers who were hired after the effectivity of R.A. No. 6657 shall be accommodated based on their length of service, reckoned from 15 June 1988, and subject to the conditions provided for under Item IV (F)(1.2) of AO 2, S. 2009. (31) WHAT ARE THE GROUNDS FOR DISQUALIFICATION IN THE IDENTIFICATION OF BENEFICIARIES? Item IV.E.3 of AO 2, S. 2009 enumerates the grounds for disqualification in the identification of ARBs of the CARP, as follows: a. Failure to meet the qualifications as provided for under Section 22 of R.A. No. 6657, as amended; (See General Qualifications in the immediately preceding item) b. Execution of a waiver of right to become an ARB in exchange for due compensation and such waiver has not been questioned in the proper government entity as of the approval of this Order; 29 Supplied by AO 2, S. 2009 [Item IV.E.1 (1.1.4)] 30 Supplied by AO 2, S. 2009 [Item IV.E.1 (1.2)] 69 c. Non-payment of an aggregate of three (3) annual amortizations 31 and failure to exercise the right of redemption/ repurchase within two (2) years32 resulting in the foreclosure of mortgage by the LBP of a previously awarded land; d. Deliberate non-payment of three (3) annual amortizations to the landowner (LO) resulting in the repossession by the landowner (in the case of voluntary land transfer/direct payment scheme or VLT/DPS) of the awarded land; e. Dismissal from the service for cause upon a judgment that is final and executory (and there is no case filed questioning said dismissal) as of the approval of this Order and if there is any such case, the same has been affirmed with finality by the proper entity of government; f. Obtaining a substantially equivalent and regular employment;33 g. Retirement from the service, whether optional or mandatory, or voluntary resignation, provided this was not attended by coercion and/or deception, and there is no case questioning said retirement or voluntary resignation by the applicant as of the date of approval of this Order; Based on a provision in Sec. 26 of RA 6657,as amended on the permanent disqualification of a beneficiary whose land has been foreclosed by the LBP for non-payment of an aggregate of three (3) annual amortizations. 31 The ground of "failure to exercise the right of redemption/ repurchase within two (2) years” needs to be clarified in the rules. At any rate, in RA 6657, as amended, the matter of redemption/repurchase is mentioned in Sec. 27, as follows: "SEC. 27. Transferability of Awarded Lands. – Lands acquired by beneficiaries under this Act or other agrarian reform laws shall not be sold, transferred or conveyed except through hereditary succession, or to the government, or to the LBP, or to other qualified beneficiaries through the DAR for a period of ten (10) years: Provided, however, That the children or the spouse of the transferor shall have a right to repurchase the land from the government or LBP within a period of two (2) years. 32 Substantially Equivalent and Regular Employment means any employment or profession from which the applicant farmer derives income equivalent to the income of a regular farmworker at the time of ARB identification, screening and selection. (AO 2, S, 2009: Item II.9) 33 70 (32) h. Misuse or diversion of financial support services extended by government (Sec. 37 of R.A. No. 6657, as amended); i. Negligence or misuse of the land or any support extended government (Sec. 22 of R.A. No. 6657, as amended); j. Material misrepresentation of the ARB's basic qualifications as provided for under Section 22 of R.A. No. 6657, as amended, P.D. No. 27, and other agrarian laws; k. Sale, disposition, or abandonment of the lands awarded by government under CARP or P.D. No. 27 which is violative of the agrarian laws; l. Conversion of agricultural lands to non-agricultural use without prior approval from the DAR; m. Final judgment for forcible entry into the property or for unlawful detainer; and n. Commission of any violation of the agrarian reform laws and regulations, or related issuances, as determined with finality after proper proceedings by the appropriate tribunal or agency. by MAY THE CHILDREN OF THE LANDOWNER STILL QUALIFY AS BENEFICIARIES? Yes. The entitlement of the child/ children of the landowner to qualify as beneficiaries and to enjoy preference in the distribution of his/her/their parent’s land remains. RA 9700 retained the provision in Section 22 of the CARP law relative to the right of the children of the landowner to the latter’s landholdings as preferred beneficiaries, 34 provided they fulfill pertinent RA 6657, Sec. 6: “xxx. Provided, however, that the children of landowners who are qualified under Sec. 6 of this Act shall be given preference in the distribution of the land of their parents; And provided, further, that actual tenant -tillers in the landholding shall not be ejected or removed therefrom. xxx.” 34 71 qualifications of beneficiaries under Section 6 of RA 6657, as amended. More specifically, the following criteria must be met by the child/ children of the landowner: (a) Filipino citizenship; (b) at least fifteen (15) years of age; and (c) actual tiller or directly managing the farm as of the time of the conduct of field investigation of the landholding under CARP.35 (Sec. 6 in relation to Sec. 22, RA 6657; Item IV.E.5, AO 2, S. 2009). It should be stressed that, essentially, the landowner’s children are recognized as beneficiaries and not as descendants or heirs. The relationship with the landowner merely gives them a priority in the distribution of the land. Thus, as prospective beneficiaries, the landowner’s child/ children must have the basic qualifications of farmer-beneficiaries of the agrarian reform program, including the willingness, aptitude and ability to cultivate and make land as productive as possible (Sec. 22, RA 6657, as amended). (33) IN VIEW OF THE PRIORITY (IN THE AWARD) GIVEN TO THE CHILDREN OF THE LANDOWNER, MAY THEY BE AWARDED THE PARENT’S LANDHOLDING OR PORTION THEREOF ACTUALLY CULTIVATED BY TENANT-TILLERS? No. Under Item IV.E.5 of AO 2, S. 2009, “… only untenanted portions of the landholding may be subject to award to qualified children of the LO and actual tenanttillers in the landholding shall not be ejected or removed therefrom. An LO’s child cannot claim that he/she is directly managing the farm or a specific area of tillage, if the same has tenants or lessees, considering that the tenants on the land have the right to directly manage the land or area of tillage with the obligation to pay the LO lease rental therefor.” Indeed, when the landholding or a portion thereof is tenanted, the direct management of the land could only be ascribed to the tenant, cultivation being an activity or function to which the tenant is legally entitled, if obligated to perform. The reckoning point of “time of the conduct of field investigation of the landholding under CARP” is supplied by AO 2, S. 2009. 35 72 Thus, the child of the landowner, or any person, for that matter, could not be deemed as the one managing the farm. And in this situation, the child would be wanting in one requirement for becoming a “preferred beneficiary” – that he/she is either an actual tiller of or the one directly managing the farm (See Item 32* above). Thus, the rule disallowing the award of tenanted lands to the child of the landowner proceeds from his/her failure to qualify as a beneficiary at least with respect to the tenanted landholding or portion thereof. The above provision in AO 2, S. 2009 finds basis in the following: (a) the principles of tenancy as embodied in the law governing tenancy relationships (RA 3844, as amended); and (b) RA 6657, as amended, which gives the children of the landowner priority in the distribution of their parent’s lands subject to the proviso that “actual tenant -tillers in the landholding shall not be ejected or removed therefrom.” (Sec. 22, RA 6657, as amended)36 (34) MAY A LANDOWNER QUALIFY AS A BENEFICIARY? Yes, subject to the following qualifications/ conditions: 36 37 (a) He/she may be a beneficiary of the land he/she does not own but is actually cultivating to the extent of the difference between the area of the land he/she owns and the award ceiling of three (3) hectares;37 (Sec. 7, RA 6657) (b) Landowners who have voluntarily offered their landholdings for coverage under CARP and those who have previously waived their rights to retain are disqualified from becoming ARBs of other landholding/s being covered or to be covered under CARP. The LO’s voluntary offer or his previous waiver is construed to be his inability and/or unwillingness to cultivate the land and make it productive. (Item IV.C.4, AO 2, S. 2009) The provision is in the original formulation of Sec. 22 of RA 6657 and retained by RA 9700. The provision is in the original formulation of RA 6657 and retained by RA 9700. 73 (c) (35) A landowner-mortgagor of a foreclosed agricultural land where the twoyear right of redemption period has already expired and is subsequently to be covered under CARP, cannot qualify as an ARB on the foreclosed land notwithstanding his/her being in actual possession and cultivation thereof. The DAR shall be responsible for taking possession of the land by negotiating or filing of the appropriate case, if necessary, and to successfully install the qualified ARB/s. (Item IV.C.16, AO 2, S. 2009) WHAT IS THE LANDOWNER ATTESTATION REQUIREMENT RELATIVE TO HIS/HER FARMERS (TENANTS OR LESSEES AND REGULAR FARMWORKERS) AND WHAT IMPLICATIONS, IF ANY, DOES IT HAVE ON THE ENTITLEMENT OF OTHER TYPES OF TILLERS UNDER THE CARP? The attestation requirement pertains to the confirmation by the landowner of the status of farmers38 and/or regular farmworkers in his/ her landholding as previously determined and certified under oath by the Barangay Agrarian Reform Council (BARC). 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 BARC and attested under oath by the landowners, are qualified beneficiaries. Despite the said provision, it is quite clear in the law, that tillers other than farmers and regular farmworkers are still entitled to become agrarian reform beneficiaries. First, RA 9700 introduced the provision on attestation but it has kept intact Section 22 of the original CARP law. As mentioned above, Sec. 22 lists the different categories of tillers that may qualify as ARBs to include not only the tenants or lessees and regular farmworkers, but also the following: Sec. 3, RA 6657, as amended by RA 9700 defines the term “farmer” as referring to “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 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. 38 74 Seasonal farmworkers; Other farmworkers; Actual tillers or occupants of public lands; Collectives or cooperatives of tenants/lessees and of the above types of tillers; and Others directly working on the land. Second, RA 9700 did not introduce any modification in Section 22, as originally worded in RA 6657 even as the Act introduced Section 22-A into the CARP law. As shown above, Section 22-A merely affirms the priority of tenants/lessees and regular farmworkers over the other types of beneficiaries in the distribution of agricultural lands. (36) AT WHAT POINT IN THE LAD PROCESS SHALL THE LANDOWNER EXECUTE THE REQUIRED ATTESTATION? Implementing the provision of RA 9700 on landowner attestation, AO No. 2, S. 2009 provides that said attestation by the landowner — insofar as his/her tenants, lessees, and regular farmworkers are concerned – shall be done after the BARC has certified under oath the master list39 of ARBs selected by the Municipal Agrarian Reform Office (MARO) or the Beneficiaries Screening Committee (BSC), in the case of commercial farms or plantations. (See IV.E.9, AO 2, S. 2009) The landowner has to make the attestation as to the tenants, lessees and regular farmworkers in his/her landholdings upon the BARC-certified master list of ARBs within fifteen (15) days from receipt thereof. The master list is a roll of agrarian reform beneficiaries who passed the DAR screening process. 39 75 (37) WHAT ARE THE RESPECTIVE CONSEQUENCES TO THE LAD PROCESS OF THE LANDOWNER’S: A. B. C. FAILURE TO ACT UPON THE MASTER LIST WITHIN THE PRESCRIBED PERIOD PARTIAL ATTESTATION RELATIVE TO THE TENANTS/ LESSEES / REGULAR FARMWORKERS IN THE MASTER LIST FULL NON-ATTESTATION OR REPUDIATION OF THE SAID ARBS IN THE MASTER LIST The answers to the above queries are detailed in AO 2, S. 2009 as follows: As to the scenario under Item A: If the landowner FAILS TO ACT upon the master list within fifteen (15) days from his/her receipt thereof, his right to make the attestation is deemed waived. Thereafter, the master list of ARBs shall become final and executory. (AO 2, S. 2009: Item IV.E.10) As to the scenarios under Items B and C: In case of PARTIAL OR FULL NON-ATTESTATION OR REPUDIATION by the LO of the ARBs in the master list, the following steps shall be followed: (1) The landowner shall be required to submit evidence to sustain his partial or full non-attestation, repudiation of ARBs, and/or substitution or addition to the master list of ARBs. [Step is undertaken at the DAR Municipal Office (DARMO) level] (AO 2, S. 2009: Item IV.E.10) (2) The MARO / DARMO shall submit a report to the Provincial Agrarian Reform Officer (PARO) / DAR Provincial Office (DARPO). (AO 2, S. 2009: Item IV.E.10) 76 (3) The DARPO shall, within fifteen (15) days from receipt of the DARMO’s report, conduct a REVALIDATION of the qualifications of the ARBs’ being tenants or lessees or regular farmworkers in cases where the landowner refuses to attest to: Specific ARBs in the master list of ARBs (partial attestation); Specific ARBs in the master list of ARBs (partial attestation) and identifies other ARBs either by substitution or addition whom the LO claims are his tenants, lessees or regular farmworkers; or All ARBs in the master list of ARBs (full non-attestation) and identifies other ARBs either by substitution or addition whom the LO claims are his tenants, lessees or regular farmworkers. (AO 2, S. 2009: Item IV.E.11) (4) Should the PARO find that there is possible merit to the LO’s partial or full non-attestation of the master list of ARBs, he shall order the BARC to conduct COMPULSORY ARBITRATION within thirty (30) days to pass upon the issue. (AO 2, S. 2009: Item IV.E.11) (5) The BARC shall submit a report of its findings within five (5) days after arbitration to the PARO who shall then evaluate and finally determine the qualifications of the ARBs in the master list. The PARO’s decision shall be final in so far as the master list is concerned. (AO 2, S. 2009: Item IV.E.11) Note: Step No. 4 above necessarily implies, that if the PARO does not find merit to the LO’s partial or full non-attestation, he or she shall render a decision, which is necessarily one for upholding the master list prepared and certified by the BARC. 77 (38) ARE THERE PROVISIONS IN THE LAW THAT GUARD AGAINST ANY UNDUE DELAY IN MAKING THE REQUIRED ATTESTATION OR FALSIFICATION OF THE SAME ON THE PART OF THE LANDOWNER? Yes. The “undue delay in the compliance with the obligation to certify or attest and/or falsification of the certification or attestation as required under Section 7 of Republic Act No. 6657, as amended” is a prohibited act as defined under paragraph (i) of Section 73 of RA 6657, as amended. This is introduced into the section by RA 9700. Under Section 74 of the law, the commission of the subject prohibited act is punishable by imprisonment of six (6) years and one (1) day to twelve (12) years or a fine of not less than two hundred thousand pesos (PhP 200,000.00) and not more than one million pesos (PhP 1,000,000.00), or both, at the discretion of the court. (39) MAY THE MASTER LIST STILL BE CONTESTED BY ANY PARTICULAR PARTY? Yes. An interested party may contest the master list of qualified ARBs through a PROTEST FOR INCLUSION/EXCLUSION, which may be filed in writing at the DARPO not later than fifteen (15) days from the last day of posting of the said master list. The PARO shall resolve the protest within thirty (30) days from receipt thereof. The master list of qualified ARBs becomes final after the lapse of fifteen (15) days from issuance of the PARO's decision on the protest and receipt of the same by the parties. (Based on AO 2, S. 2009: Item IV.E.12-13) 78 (40) WHAT ARE THE IMPLICATIONS OF THE FILING OF PROTESTS FOR INCLUSION INTO AND/OR EXCLUSION FROM THE MASTER LIST OF ARBS ON THE LAD PROCESS? Matters that keep the master list from becoming final, including protests for inclusion/ exclusion filed by an interested party necessarily delay the LAD process. However, the delay should not be interminable because AO 2, S. 2009 provides for specific and limited periods within which the PARO must resolve protests for inclusion/ exclusion. (See immediately preceding item) It is our view that after the PARO resolves protest for inclusion/exclusion relative to the master list, and regardless of any further recourse that may be taken by an objecting party from the PARO resolution, the same must be deemed final, at least for purposes of the continuation of the LAD processes. This view is supported by the provision in the guidelines that “master list of qualified ARBs becomes final after the lapse of fifteen (15) days from issuance of the PARO's decision on the protest and receipt of the same by the parties.” (Item IV.E.13, AO 2, S. 2009) As to the resolution by the PARO of the matter of partial or full nonattestation, the rule is explicit that “the PARO’s decision shall be final in so far as the master list is concerned.” Item IV.E.11.3, AO 2, S. 2009) Specific Instance of Delay Item IV.C.14 of AO No. 2, S. 2009 illustrates how the pendency of a petition for inclusion or inclusion delays the LAD process. The item provides that as a rule, the conduct of survey to determine land use, segregation of coverable and not coverable area, and subdivision survey shall be undertaken prior to field investigation (FI). “However, in the event that the finalization of the master list of ARBs will necessitate resolution of petitions for inclusion and exclusion of ARBs in the master list, the PARO shall inform the Land Bank of the Philippines (LBP) regarding the matter, in which case, the conduct of subdivision survey will come after the field investigation (FI) or upon the finalization of the master list of ARBs so as not to delay the land acquisition process.” 79 (41) WHAT IS THE APPLICATION TO PURCHASE AND FARMER’S UNDERTAKING (APFU)? Section 7 of RA 6657, as amended by RA 9700 requires the “intended beneficiary” to state under oath before the judge of the city or municipal court that he/she is willing to work on the land to make it productive and to assume the obligation of paying the amortization for the compensation of the land and the land taxes thereon. The rule implementing the statutory provision is Item IV.E.16, AO No. 2, S. 2009. It reiterates the need on the part of the prospective beneficiary to take an oath before the judge; it also requires that the statements to be made under oath should be stated in the APFU. The APFU is therefore a document containing the undertaking of an ARB (who has qualified under or passed the DAR screening process) that he/she is willing: (a) to work on the land to make it productive; and (b) to assume the obligation of paying the amortization for the land as well as taxes thereon, which statements the ARB would have to declare under oath before the proper judge. (42) WHAT ARE THE RULES GOVERNING THE EXECUTION/ SIGNING OF THE APFU? a. b. c. d. e. ARBs in the master list are the ones entitled to execute/ sign the APFU; They shall be given thirty (30) days from the date of receipt of the APFU to sign it. Failure to sign the APFU within the reglementary period of thirty (30) days shall be considered as a waiver of right to become an ARB. Due notice shall be given to the concerned parties stating the consequence of such failure to sign and execute the APFU within the prescribed period. (Based on Item IV.E.16, AO 2, S. 2009) The signing / execution mentioned under par. a-c shall be done under oath before the judge of the city or municipal court. 80 (43) WHAT ARE THE RULES ON THE ACQUISITION AND DISTRIBUTION OF LANDHOLDINGS THAT HAVE ALREADY BEEN SUBJECTED TO THE CARP LAD PROCESSES (or landholdings in the so-called “pipeline”) AT THE TIME OF THE EFFECTIVITY OF RA 9700? Related Question: Given the above premise, must the LAD process be repeated from the start or may it merely be continued until the completion of the award to the ARBs and applying what law and administrative guidelines, in any event? If the process has reached the point where the Master List of ARBs has already been finalized on or before on or before July 1, 2009 pursuant to AO No. 7, S. 2003, the acquisition and distribution of landholdings shall continue to be processed under the provisions of R.A. No. 6657 prior to its amendment by R.A. No. 9700. (Transitory Provision of AO 2, S. 2009) Necessarily implied from the above provision is the rule that, in other cases (or where no Master List of ARBs has been finalized on or before July 1, 2009), RA 9700 and its implementing guidelines, primarily AO No. 2, S. 2009, shall be followed. This means that the critical changes introduced by RA 9700 into the CARP law affecting program implementation shall be applied. For instance, in the identification, screening, and selection of ARBs, the attestation requirement will have to be complied with. With respect to land valuation process, all Claim Folders received by LBP prior to July 1, 2009 shall be valued in accordance with Section 17 of R.A. No. 6657 prior to its amendment by R.A. No. 9700. (Transitory Provision of AO 2, S. 2009) 81 E. Land Distribution (44) IN GENERAL, HOW SHALL LANDS SUBJECT TO THE CARP GOING TO BE DISTRIBUTED TO THE BENEFICIARIES? AS TO THE MANNER OF DISTRIBUTION IN RELATION TO THE ORDER OF PRIORITY OF QUALIFIED ARBS (a) the landholding of the landowner to be distributed first to qualified beneficiaries under Section 22, subparagraphs (a) and (b) – or to the agricultural lessees and share tenants and to regular farmworkers up to a maximum of three (3) hectares each; and (b) Only when these beneficiaries have all received three (3) hectares each shall the remaining portion of the landholding, if any, be distributed to other beneficiaries under Section 22, subparagraphs (c), (d), (e), (f), and (g).40 (Sec. 22-A of RA 6657, as amended41; See also discussion under Items 29 and 35* above) AS TO THE TYPE OF AWARD / TITLE (I.E. INDIVIDUAL OR COLLECTIVE) General Rule: Award through individual titles. – In general, the land awarded to a farmer beneficiary should be in the form of an individual title, covering one (1) contiguous tract or several parcels of land cumulated up to a maximum of three (3) hectares. (Sec. 25 of RA 6657, as amended by RA 9700) Seasonal farmworkers; Other farmworkers; Actual tillers or occupants of public lands; Collectives or cooperatives of tenants/lessees and of the above types of tillers; and Others directly working on the land. 40 41 Sec. 22-A is inserted into the CARP law by RA 9700 82 The preference for award through individual title (as opposed to collective titles) is inserted into Section 25 of the CARP law by RA 9700. It supplements /reinforces the provision in Section 29 of RA 6657 (which was not amended by RA 9700) providing to the effect that farms owned or operated by corporations or other business associations shall be distributed directly to the individual worker-beneficiaries. Award through collective titles at the option of the beneficiaries. – The beneficiaries may opt for collective ownership, such as co-workers or farmers cooperative or some other form of collective organization and for the issuance of collective ownership titles. This option is afforded the beneficiaries even prior to the advent of RA 9700 (See Sec. 25, RA 6657). However, the above option on the part of the beneficiaries is qualified by the rule inserted by RA 9700 into section 25 of RA 6657 imposing conditions for the issuance of collective titles42, as follows: (a) The current farm management system of the land covered by CARP will not be appropriate for individual farming of farm parcels; (b) The farm labor system is specialized, where the farmworkers are organized by functions and not by specific parcels such as spraying, weeding, packing and other similar functions; (c) The potential beneficiaries a recurrently not farming individual parcels but collectively work on large contiguous areas; and AO 2, S. 2009 more clearly lays down the requirement for the existence of the conditions for the issuance of collective titles. Item IV.F.3 of said guidelines provides that “Qualified beneficiaries may 42 opt for collective ownership, through a co-workers or farmers’ cooperative/association or some other form of collective organization and for the issuance of collective ownership titles: Provided, That the total area to be awarded shall not exceed the total number of co-owners or members of the cooperative or collective organization multiplied by the award limit of three (3) hectares, xxx and that the conditions for the grant of collective CLOAs under Item IV(F)(4.1 to 4.4) of this Order are met.” 83 (d) The farm consists of multiple crops being farmed in an integrated manner or includes non-crop production areas that are necessary for the viability of farm operations, such as packing plants, storage areas, dikes, and other similar facilities that cannot be subdivided or assigned to individual farmers. Under collective ownership, a collective CLOA to the property shall be issued in the name of the co-owners or the farmers’ cooperative/association or collective organization, as the case may be. If the CLOAs are issued to co-owners or to a farmers’ cooperatives/association, the names of the beneficiaries must be listed in the CLOA. (Sec. 25, RA 6657 as amended) (45) WHAT IS THE TIME FRAME IMPOSED BY LAW FOR THE COMPLETION OF THE AWARD (OF THE TITLE TO THE LAND) TO AGRARIAN REFORM BENEFICIARIES Section 24 of RA 6657, as amended by RA 9700, provides that the award (conferment of title) to the ARBs shall be completed within one hundred eighty (180) days “from the date of registration of the title in the name of the Republic of the Philippines.” Before the RA 9700 amendment, the rule is for the award to be completed within 180 days “from the time the DAR takes actual possession of the land.” In general, the CARP land transfer process contemplates two transfers of the land subject of acquisition and distribution. The first transfer is between the landowner and the government. More specifically, it is where the landowner’s title to the land is transferred to the government upon the payment of just compensation to the landowner. The transfer is evidenced by the registration of the title in the name of the Republic of the Philippines (RP). The second transfer pertains to the passing of the title to the land from the RP to the farmer-beneficiaries. Under the amended provision, once the RP title is obtained, the government — through the DAR — has only 180 days to consummate the conferment of title or to complete the award to the beneficiaries. 84 (46) AT WHAT POINT ARE THE BENEFICIARIES ENTITLED TO ENJOY THEIR RIGHTS AND OBLIGED TO DISCHARGE THEIR RESPONSIBILITIES AS SUCH? Section 9 of RA 9700, amending Section 24 (Award to Beneficiaries) of RA 6657, as amended, provides that the rights and responsibilities of the beneficiaries shall commence “from their receipt of a duly registered emancipation patent or certificate of land ownership award and their actual physical possession of the awarded land.” This provision replaced the previous rule where the starting point for the enjoyment of rights and fulfillment of obligations as beneficiaries is at “the time the DAR makes an award of the land to him.” The present rule an improvement from the old one because indeed, the rights and obligations of beneficiaries could only be fully enjoyed or fulfilled, respectively, when the beneficiaries are in the actual possession of the land awarded to them. Some Obligations of Agrarian Reform Beneficiaries To make the land productive43; to exercise diligence in the use, cultivation and maintenance of the land including the improvements thereon. Negligence, misuse, or unauthorized sale of the land or misuse of any support extended to an ARB shall be a ground for the forfeiture of one’s right as an ARB.44 To pay the LBP in thirty (30) annual amortizations with interest at six percent (6%) per annum unless the ARB opts to accelerate payment.45 To pay land taxes on the awarded property46 43 Sec. 22, RA 6657, as amended 44 Sec. 36, RA 6657, as amended; Item IV.F.10, AO 2, S. 2009 45 Sec. 7 and 26, RA 6657, as amended; Item IV.F.10 in relation to Item IV.E.16, AO 2, S. 2009 46 Sec. 7, RA 6657, as amended 85 (47) WHEN ARE ARBs REQUIRED TO COMMENCE PAYMENT OF THE AMORTIZATION FOR THE LAND AWARDED TO THEM? The annual amortization shall start one (1) year from the date of the registration of the Certificate of Land Ownership Award. However, if the occupancy took place after the certificate of land ownership award registration, the amortization shall start one (1) year from actual occupancy. (Sec. 26, RA 6657, as amended by RA 9700) (48) WHAT ARE THE POLICIES AND OPERATIONAL GUIDELINES ON THE INSTALLATION OF ARBs INTO THE LANDS AWARDED TO THEM? Distribution cannot be fully accomplished by the mere handing out of paper titles that serve as mere evidence of ownership. For the farmer-beneficiaries to finally exercise the rights and responsibilities granted to them by RA 6657, as amended, they have to be in the peaceful possession of the land. Under AO 2, S. 2009 (Item IV.G), the policies and operational guidelines on ARB installation are, as follows: (a) As owners of awarded lands under CARP, the ARB/s shall take possession of the land covered by his/her/their titles from the time the same is awarded to them through a registered CLOA. In case taking possession of the awarded land by the ARBs would imperil or endanger their lives, the DAR shall assume responsibility for the installation of the ARB/s on the subject land with the assistance of the police or military until they are settled and in constructive and physical control of the property. (b) As a general rule, there shall only be a one- time installation of ARBs on their specific area of tillage as indicated in their CLOAs, rendering them in constructive and physical possession of the same. 86 The DAR shall assist the ARBs in reporting cases of threat/harassment or ejection attempts by the former landowner or other parties to the police or military, and the filing of appropriate legal action against those responsible, if warranted. (c) In case the installation activities would necessitate the provision of police and/or military forces to assist the DARMO personnel, the Provincial Agrarian Reform Officer (PARO) shall coordinate the said activities with the Department of National Defense-Armed Forces of the Philippines (DND-AFP) and the Department of Interior and Local GovernmentPhilippine National Police (DILG-PNP), pursuant to the existing guidelines per Memorandum of Agreement executed by the DAR, Department of Interior and Local Government (DILG), and Department of National Defense (DND). (d) In the event that the former landowner harasses or threatens the ARB/s installed by the DAR, the affected ARB/s shall immediately report the matter to the concerned PNP and the DAR. The ARBs should be assisted by the DAR Regional/Provincial Legal Division, Public Attorney’s Office (PAO) and the Office of the City/Provincial Prosecutors. (e) If the former landowner deliberately acts to delay, stall or obstruct the installation of the ARBs, a criminal case shall be filed against him/her for violation of Sec. 73 (d) of R.A. No. 6657, as amended. Moreover, the DAR shall ask that the landowner be held liable by the Court for actual, compensatory and moral damages suffered by the ARB/s. 87 (49) IN CASES WHERE ARBs ARE FORCED OUT OR ARE OTHERWISE DEPRIVED OF THE LAND AWARDED TO THEM AFTER THEY HAVE BEEN INSTALLED, IS THE DAR DUTY-BOUND TO “RE-INSTALL” THE ARBs OR, IN GENERAL, ASSIST THEM TO REGAIN POSSESSION OF THE LAND? The DAR is the lead agency tasked with the implementation of the agrarian reform program. And the goals of the program cannot be achieved if the ones who have been awarded lands under the concept of equitable land redistribution are not in the possession of the same. It is our position thus, that the DAR has the duty to assist the farmers to regain possession of the land. This of course assumes that no legal impediment to the ARBs’ taking possession of their land has set in, in the meantime. Thus, if persons other than the beneficiaries are in possession or have taken over the possession of the property, they would have to be proceeded against in the proper forums (e.g. the courts through the proper ejectment cases or even criminal charges for CARP obstruction) and in a manner where they are afforded the due process of law. In this instance too, the DAR could not be expected to forcibly remove those third persons who may not be entitled to the possession of the land in order to reinstate the ARBs therein. In this regard, we note that AO No. 2, S. 2009 does not foreclose upon DAR assistance to the ARBs for purposes of a subsequent installation even as Item IV.G (2) speaks of one-time installation, “as a general rule.” 88 PART III. AGRARIAN JUSTICE The phrase “agrarian justice” relative to the country’s agrarian reform program has not been formally defined even as, in general, it is used to refer to the protection, promotion, or enforcement of the rights recognized or conferred by agrarian reform and related laws to the stakeholders of the program, primarily the farmer/farmworkers and the landowners. This section expounds on matters relating to the agrarian justice delivery component of the agrarian reform program insofar as the same are affected by the provisions of RA 9700. More particularly, this section deals with the rules, practices and mechanisms and institutions for the enforcement of agrarian reform laws to the end that the rights recognized or conferred by these laws are protected, promoted, or enforced in the context of issue/ dispute resolution or adjudication, as affected by RA 9700. A. RA 9700 provisions on Agrarian Justice, in general (1) WHAT PROVISIONS RELATING TO AGRARIAN JUSTICE DELIVERY WERE INTRODUCED BY RA 9700 INTO THE CARP LAW OF 1988? (a) Provision directing the referral to the DAR by the prosecutors or the courts of cases filed before them that are possibly agrarian in nature or are, in fact, agrarian disputes (introduced into the CARP law by Sec. 19 of RA 9700 amending Sec. 50 of RA 6657, as amended; see further discussion under Items B.2-6 below) 89 (b) Recognition of 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. ( Sec. 19 of RA 9700 amending Sec. 50 of RA 6657, as amended) (c) Explicit provision removing the Supreme Court from the application of 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 RA 6657, as amended and other pertinent laws on agrarian reform. ( Sec. 20, RA 9700 amending Sec. 55 of RA 6657, as amended) (d) Explicit mention of the DAR as one of the entities protected against said restraining orders and preliminary injunction. ( Sec. 20, RA 9700 amending Sec. 55 of RA 6657, as amended) (e) Explicit mention of “regional trial courts, municipal trial courts, municipal circuit trial courts, and metropolitan trial courts” as the bodies prohibited from issuing any injunction, restraining order, prohibition or mandamus against the DAR, the DA, the DENR, and the Department of Justice relative to their roles in the implementation of the program (CARP). The specific reference to these courts replaced the more general term “lower courts” in Section 68 of RA 6657, as amended (titled “Immunity of Government Agencies from Undue Interference”) Before the amendment, Section 68 admits of the interpretation that the restriction 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)47, which includes the Court of Appeals in the phrase “lower courts.” “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, 47 90 Thus, the amendment 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. (f) Provision declaring that all cases involving the cancellation of registered emancipation patents, certificates of land ownership award, and other titles issued under any agrarian reform program to be under the exclusive and original jurisdiction of the Secretary of the DAR effectively transferring such jurisdiction to the Secretary from the DAR Adjudication Board. (Sec. 24 of RA 6657, as amended by RA 9700) The provision authorized a deviation from the long standing rule, as expressed in the DARAB rules of procedure and the DAR administrative guidelines on Agrarian Law Implementation (ALI) cases, that the jurisdiction over cancellation of registered EPs, CLOAs, and other titles issued under any agrarian reform program lies with the DARAB. (g) Provisions strengthening and enhancing the penal provisions of the CARP law. g.1. Section 24 of RA 9700 enhanced Sec. 73 of RA 6657, as amended, by: (a) adding to the list of prohibited acts and omissions as defined under Section 73 and penalized under Section 74 of the law; and (b) making qualifications/ adjustments to certain prohibited acts and omissions as originally defined under Section 73 of RA 6657. 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. (RAC) 91 g.2. Section 25 of RA 9700, amending Sec. 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. The prohibited acts and omissions and the corresponding penalties are presented under Item 56 below. B. The Case Referral Mechanism One of the more prominent agrarian justice provisions introduced into the CARP Law by RA 9700 is the institution of the referral system / mechanism relative to cases that are possibly agrarian in nature or agrarian disputes. The mechanism is very critical in addressing the problem of conflict of jurisdiction over these cases between the regular courts, on the one hand, and the Department of Agrarian Reform, on the other. It is also seen as a necessary measure to minimize, if not to put an end, to the filing of cases or continuation of proceedings – including criminal charges and proceedings – before regular courts against farmers / farmworkers where the circumstances upon which the cases against them are built present issues that are intrinsically agrarian in nature, which are therefore within the jurisdiction of the DAR. As stated in the Supreme Court ruling in DAR vs. Roberto Cuenca, et. al. (G.R. No. 154112, September 23, 2004): "All controversies on the implementation of the Comprehensive Agrarian Reform Program (CARP) fall under the jurisdiction of the Department of Agrarian Reform (DAR), even though they raise questions that are also legal or constitutional in nature. All doubts should be resolved in favor of the DAR, since the law has granted it special and original authority to hear and adjudicate agrarian matters." 92 The subject referral mechanism is provided for under Section 19 of RA 9700 amending Section 5048 of RA 6657, as amended, to wit: SEC. 19. Section 50 of Republic Act No. 6657, as amended, is hereby further amended by adding Section 50-A to read as follows: "SEC. 50-A. Exclusive Jurisdiction on Agrarian Dispute. – No court or prosecutor's office shall take cognizance of cases pertaining to the implementation of the CARP except those provided under Section 57 of Republic Act No. 6657, as amended. 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. Provided, that from the determination of the DAR, an aggrieved party shall have judicial recourse. In cases referred by the municipal trial court and the prosecutor's office, the appeal shall be with the proper regional trial court, and in cases referred by the regional trial court, the appeal shall be to the Court of Appeals. xxx” (RA 6657) “SEC. 50. Quasi-judicial Powers of the DAR. – The DAR is hereby vested within primary jurisdiction to determine and adjudicate agrarian reform matters and shall have exclusive original jurisdiction over all matters involving the implementation of agrarian reform, except those falling under the exclusive jurisdiction of the Department of Agricultural (DA) and the Department of Environment and Natural Resources (DENR). xxx xxx 48 Notwithstanding an appeal to the court of Appeals, the decision of the DAR shall be immediately executory.” 93 A case referral system was set in place by Presidential Decree (PD) No. 31649 (1973), the last two paragraphs of Section 12 of PD No. 94650 (1976) and PD No. 103851 (1976). However, the cases covered by these issuances are limited to ejectment cases or any other case designed to harass or remove a tenant of an agricultural land primarily devoted to rice and corn. Also, these PDs were repealed in 1988 by RA 6657. Section 50-A of RA 6657 thus reinstitutes a case referral system even as it is more comprehensive in scope and employs the more progressive scheme of automatic referral. The DAR promulgated DAR Administrative Order No. 4, Series of 200952 providing for the implementing rules and regulations governing the case referral provision in the law. For its part, the Department of Justice (DOJ) has issued DOJ Department Circular No. 40 dated 7 June 2010 Re: “Guidelines on the Investigation and Referral of Cases to the Department of Agrarian Reform Pursuant to Section 19 of Republic Act No. 9700.” This circular followed a Memorandum issued by the DOJ Secretary (dated March 16, 2010) 53 , which lays down a general directive for the compliance by the prosecutorial services with the said case referral provision. Presidential Decree No. 316 (October 22, 1973): Prohibiting the Ejectment of Tenant-Tillers From Their Farmholdings Pending the Promulgation of the Rules and Regulations Implementing Presidential Decree No. 27 49 Presidential Decree No. 946 (June 17, 1976): Reorganizing the Courts of Agrarian Relations, Streamlining Their Procedures, and for Other Purposes 50 Presidential Decree No. 1038 (October 21, 1976): Strengthening the Security of Tenure of Tenant-Tillers in Non-Rice/Corn Producing Private Agricultural Lands 51 Rules and Regulations Implementing Sec. 19 of RA No. 9700 [Jurisdiction on Referral of Agrarian Dispute] (October 15, 2009) 52 53 Subject: Jurisdiction on and Referral of Agrarian Disputes 94 As for the Supreme Court, it has released OCA Circular No. 62-201054 (issued by the Office of the Court Administrator of the Supreme Court on 28 April 2010), which is more of a set of general guidelines relating to the referral of cases under RA 9700. Advocates are awaiting the issuance by the High Court of more detailed implementing rules of procedure on the matter . In the meantime, compliance by the courts with the referral provision of RA 9700 should be guided by the said OCA Circular as well as by DAR AO 4, S. 2009. (2) WHAT ARE THE GENERAL FEATURES OF THE CASE REFERRAL MECHANISM UNDER SECTION 50-A OF RA 6657, AS AMENDED? Process Cases filed or pending before the prosecutorial services or the courts are referred by the prosecutor or the judge to the DAR, which shall determine whether an agrarian dispute exists (the sole issue to be resolved by the DAR on referral) Cases Covered Criminal and civil cases As detailed under AO 4, S. 2009, the referral provision covers “cases filed before the Prosecutor's Office, the Municipal Circuit Trial Court, Municipal Trial Court, Metropolitan Trial Court and the Regional Trial Court (MCTC,MTC, MeTC and RTC), whether it be criminal or civil in nature, by landowners/lessors or their representatives against a tenant/lessee/farmer beneficiary With respect to criminal cases brought to the prosecutorial services for preliminary investigation / inquest, DOJ Circular No. 40 particularizes as to the offenses covered, as follows: Subject: Implementation of Sections 7 and 50-A of RA No. 6657, also known as The Comprehensive Agrarian Reform Law Of 1988, as respectively amended by Sections 5 and 19 of RA 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) 54 95 (1) Offenses committed under Title 9, Chapter 2 (Crimes Against Security) of the Revised Penal Code (RPC), as applicable; (2) Offenses committed under Title 10 (Crimes Against Property) of the RPC, as applicable; and (3) Offenses committed under such other provisions of the RPC and other laws, as applicable. Grounds for Referral By the explicit provision of Section 19, RA 9700: Referral to DAR shall be made 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. Under DAR AO 4, S. 2009: Referral to DAR shall be made when: (a) There is an allegation in the pleadings from any of the parties that the case is agrarian in nature or involves an agrarian dispute and one of the parties is a tenant, lessee, farmer-beneficiary, farmer, or farmworker; or (b) the case arises out of or is in connection with an agrarian dispute. Under DOJ Circular No. 40: Referral shall be made when: (a) there is an allegation by any of the parties (e.g. allegation in the complaint, affidavit or counter-affidavit, etc.) that the case is agrarian in nature or an agrarian dispute and one of the parties is a tenant, lessee, farmer-beneficiary, farmer, or farmworker; or (b) the case pertains to the implementation of the CARP except those provided under Section 57 of Republic Act No. 6657, as amended. Note: We believe the rules on when referral should be made as respectively provided by the cited DAR and DOJ guidelines find basis in the law being implemented despite the variance between the language of the statute and the terms used in the administrative guidelines. Review/Appeal process from the determination by the DAR Aggrieved party entitled to judicial recourse. -- In cases referred by the municipal trial court and the prosecutor's office, the appeal shall be with the proper regional trial court, and in cases referred by the regional trial court, the appeal shall be to the Court of Appeals. (Section 19, RA 9700) 96 (3) WHAT IS THE PROCESS THAT SHOULD BE FOLLOWED BY FISCALS IN REFERRING PERTINENT CASES TO THE DAR PURSUANT TO SECTION 19 OF RA 9700? DOJ Circular No. 40 provides for the process of referral that should be followed for cases filed for preliminary investigation and those under inquest. (a) Cases subject of Preliminary Investigation a.1 The investigating prosecutor shall, within three (3) days from receipt of the complaint or pleading (where there is an allegation by any of the parties that the case is agrarian in nature or an agrarian dispute and one of the parties is a tenant, lessee, farmer-beneficiary, farmer, or farmworker or that the case pertains to the implementation of the CARP except those provided under Section 57 of Republic Act No. 6657, as amended) shall recommend to the chief of office the referral of the case, stating therein the basis for his/her recommendation. a.2. Within two (2) days from receipt of the recommendation, the chief of office shall endorse the same to the PARO together with the records of the case, copy furnished the parties concerned. a.3. While the case is on referral with the PARO, the investigating prosecutor shall defer further proceedings and shall await the certification from the PARO as to whether the case is “PROPER FOR TRIAL” OR “NOT PROPER FOR TRIAL”. a.4. If the Certification states that the case is not proper for trial, the investigating prosecutor shall dismiss the case within five (5) days from receipt of the certification. a.5. If the Certification states that the case is proper for trial, the investigating prosecutor shall proceed with the preliminary investigation and resolve the case, accordingly. 97 a.6. After the lapse of fifteen (15) days required by law for the DAR to issue a Certification and none was issued, the investigating prosecutor may dispose of the case pending before him in accordance with his appreciation of law and evidence attendant to the case. (b) Cases subject of Inquest When the case is subject of inquest and there is an allegation by any of the parties that the case is agrarian in nature or an agrarian dispute and one of them is a farmer, farmworker or tenant, or involves the implementation of the CARP, the inquest prosecutor shall immediately refer the case to the PARO and release the respondent for further preliminary investigation. The above allegations must be written, made under oath, and the party making such allegations signs the Minutes of the Inquest. (4) UPON REFERRAL, WHAT STEPS/ PROCESSES SHOULD BE FOLLOWED BY THE DAR IN THE RESOLUTION OF THE ISSUE ON REFERAL (WHETHER OR NOT AN AGRARIAN DISPUTE EXISTS)? These matters are detailed in AO 4, S. 2009, as follows: (a) 55 Upon the receipt of the case records, the PARO shall immediately assign the referred case to the Chief, Legal Division for the conduct of Summary Proceedings or Preliminary Fact-Finding Investigation.55 Sec. 5, AO No. 4, Series of 2009. 98 (b) The Chief of Legal Division shall thereafter assign the case to an authorized hearing officer, who is necessarily a DAR lawyer (DAR lawyers are authorized under AO No. 4, S. 2009 to conduct summary proceedings or preliminary/fact-finding investigation. For this purpose, the hearing officer is authorized to issue subpoena and administer oath to facilitate the performance of the function of ascertaining the existence of an agrarian dispute in the referred case.)56 (c) Within three (3) days from the receipt by the authorized hearing officer of the referral, he/she shall serve notice of the conduct of summary proceedings/ fact-finding investigation to the parties. The notice shall be served personally or through registered mail, stating therein the hour, date and place of the proceedings. The venue of the proceeding shall be in the province where the agricultural property involved is located. In the same notice, he/she shall require the parties and their witnesses to submit during the proceeding their sworn statements together with their documentary evidences, if any, to support their respective claims;57 (d) The summary proceedings / fact-finding investigation shall be conducted and concluded. (e) The authorized hearing officer shall, as far as practicable, submit to the PARO his/her findings and recommendations together with the records of the case “within ten (10) days from receipt of the referred case.”58 (f) The PARO will then have 48 hours from receipt of the findings and recommendations of the hearing officer to issue a certification as to whether or not the case involves an agrarian dispute59. 56 Sec. 9, AO No. 4, Series of 2009. 57 Ibid. 58 Ibid. 59 Sec. 9, AO No. 4, S. 2009. 99 (5) WHAT ARE THE ISSUES TO BE DETERMINED BY THE HEARING OFFICER? Section 8 of AO No. 4, S. 2009 provides, as follows: “[T]he hearing officer shall determine whether one of the following exists: 1) 2) 3) 4) tenancy/actual tiller agricultural land involves ejectment, harassment/removal of tiller the crime complained of arose out of or is connected with an agrarian dispute Positive findings (of the above-enumerated issues) – the legal officer shall recommend that the referred case is not proper for trial.” We note that the first paragraph of the cited section implies that the hearing officer need only to establish the existence of any one of the enumerated items for a recommendation that the case is “not proper for trial.” This reading is somewhat made uncertain by the statement in the 2nd paragraph to the effect that the legal officer shall recommend that the referred case is not proper for trial upon “positive findings” relative to the “above-enumerated issues,” which seem to require that such positive findings pertain to all the enumerated items. This needs to be clarified by the DAR. (6) WHAT ARE THE EFFECTS OF REFERRAL OF THE CASE TO THE DAR? Section 6 of AO No. 4, S. 2009 provides that the court or the prosecutor’s office shall not take cognizance of the case until such time that the DAR makes a certification that an agrarian dispute does not exist. It also states that pending the issuance of the required certification, parties to the case shall observe the status quo ante. 100 For its part, DOJ Circular No. 40 (governing referral of criminal cases by the fiscals to the DAR) provides that while the case is on referral with the PARO, the investigating prosecutor shall defer further proceedings and shall await the certification from the PARO as to whether the case is “PROPER FOR TRIAL” OR “NOT PROPER FOR TRIAL”. In addition, with respect to cases subject of inquest, the referral of the case to the PARO shall come along with the release of the detained respondent “for further preliminary investigation.” This means that the respondent shall be freed from detention and, depending on the resolution of the DAR on the referral, proceed with the investigation of the case to ascertain the existence of probable cause or dismiss the same. This point will be further discussed in the next succeeding item. Notes: There are still matters that need to be threshed out relative to the effects of referral. From the time of the approval of RA 9700, advocates have invariably raised the following concerns that, accordingly, have to be addressed in the operational / implementing guidelines of the referral provision:60 (a) Retroactive application of the referral provision. – Raised particularly with respect to criminal cases, a position has been advanced that the referral provision should apply to existing cases or those already filed before the courts at the time of the effectivity of RA 9700 because laws should have a retroactive effect if it favors the accused. (b) There may be cases where the accused is already in detention (by virtue of a warrant of arrest), would the referral provision be a basis for their release pending the determination by the DAR that the criminal case for which he/she had been arrested and detained is actually proper for trial by the courts? This may be done through the issuance of amended guidelines on the part of the DAR and the DOJ and, insofar as the Supreme Court is concerned, through an administrative issuance providing for detailed guidelines to properly implement Sec. 19 of RA 9700 relative to the case referral mechanism. 60 101 (7) (c) What happens to warrants of arrest / search and seizure already issued? (d) As to the provision in DAR AO 4, S. 2009 relative to the observance of the “status quo ante,” which phrase literally means “the situation as it existed before” 61, is the situation to which things must revert the situation before the filing of the case or merely that before the referral of the case to the DAR? (e) Other related concerns. WHAT ARE THE EFFECTS OF THE CERTIFICATION ISSUED BY THE PARO AS TO WHETHER OR NOT AN AGRARIAN DISPUTE EXISTS? On the finding that an agrarian dispute exists, the PARO shall certify that the case is not proper for trial. Otherwise, the PARO shall issue a certification stating that the case is proper for trial before the regular court. Under Section 10 of AO No. 4, S. 2009, the PARO’s certification has the following effects: 61 (a) If the PARO certifies that the case is not proper for trial, the prosecutor or judge shall, upon receipt of the certification, motu propio. or upon proper application of the party concerned, dismiss the case; (b) If, on the other hand, the PARO certifies that the case is proper for trial, the judge or prosecutor shall assume jurisdiction over the controversy or dispute. Webster’s New World Law Dictionary, Copyright © 2010 by Wiley Publishing, Inc., Hoboken, New Jersey. Used by arrangement with John Wiley & Sons, Inc. 102 DOJ Circular No. 40 provides, as follows: (a) If the Certification states that the case is not proper for trial, the investigating prosecutor shall dismiss the case within five (5) days from receipt of the certification. (b) If the Certification states that the case is proper for trial, the investigating prosecutor shall proceed with the preliminary investigation and resolve the case, accordingly. However, after the lapse of fifteen (15) days required by law for the DAR to issue a Certification and none was issued, the investigating prosecutor may dispose of the case pending before him in accordance with his appreciation of law and evidence attendant to the case. (8) WHAT REMEDY IS AVAILABLE TO THE CONCERNED PARTIES IF THEY DO NOT AGREE WITH THE FINDINGS OF THE DAR IN REGARD TO THE REFERRED CASE? Under Section 50-A of R.A. 6657, as amended by RA 9700, an aggrieved party shall have recourse from the determination of the DAR in the proper judicial court. For cases referred by the municipal court and the prosecutor’s office, appeal shall be made with the proper Regional Trial Court (RTC). For cases referred by the RTC, appeal shall be made to the Court of Appeals. Note: The details as to the procedure for review by the courts are not specified in the law. Neither are these provided for in the administrative issuance on referral (DAR AO 4, S. 2009 and DOJ Circular No. 40, S. 2009). As it is, advocates are looking to the Supreme Court – in cooperation with the DOJ and the DAR – to provide for these matters through an administrative issuance on the case referral mechanism. 103 C. The Penal Provisions of RA 6657, as amended by RA 9700 (9) WHAT CHANGES WERE INTRODUCED BY RA 9700 INTO THE PENAL PROVISIONS (PARTICULARLY SECTIONS 73 AND 74) OF RA 6657? Generally retaining the enumeration of ‘agrarian offenses’ provided under Section 73 of RA 6657, Section 24 of RA 9700 nevertheless defined additional prohibited acts and omissions and introduced qualifications or adjustments to certain prohibited acts and omissions as originally defined under Section 73. Before the passage of RA 9700, the imposable penalty for the offenses, as provided under Sec. 74, was imprisonment for a period of not less than one (1) month to not more than three (3) years OR a fine of not less than one thousand pesos (P1,000.00) and not more than fifteen thousand pesos (P15,000.00) or both, at the discretion of the court. Under RA 9700, the penalties are on the whole, stiffer as Section 74 of RA 6657 is amended to provide for longer imprisonment periods and/or higher monetary penalty rates (fine). (10) WHAT ARE THE SPECIFIC PROHIBITED ACTS AND OMISSIONS AND THE PENALTIES CORRESPONDING TO THE SAME AS DEFINED AND PENALIZED UNDER RA 6657, AS AMENDED, AND HOW ARE THESE AFFECTED BY THE PERTINENT PROVISIONS OF RA 9700? Such prohibited acts and omissions (or agrarian offenses) and the penalties corresponding to the same as ‘originally’ provided under RA 6657 and as they are now defined by virtue of the amendments introduced into Sections 73 and 74 of RA 9700 are presented in the table below. It should be noted that the chargeable offense would depend on the date of the commission or omission. 104 TABLE II. Agrarian Offenses and their Corresponding Penalties under RA 6657 and under RA 6657 as amended by RA 9700 Prohibited Acts and Omissions Under RA 6657, as amended Under RA 6657, as amended by RA 9700 (a) The ownership or possession for the purpose of circumventing the provisions of this Act (RA 6657), of agricultural lands in excess of the total retention limits or award ceilings by any person, natural or juridical except those under collective ownership by farmer-beneficiaries; (a) The ownership or possession, for the purpose of circumventing the provisions of this Act, of agricultural lands in excess of the total retention limits or award ceilings by any person, natural or juridical, except those under collective ownership by farmerbeneficiaries; Penalty Imprisonment of not less than one (1) month to not more than three (3) years or a fine of not less than (P 1,000.00) and not more than fifteen thousand pesos (P 15,000.00), or both, at the discretion of the court. Penalty Imprisonment of three (3) years and one (1) day to six (6) years or a fine of not less than Fifty thousand pesos (P50,000.00) and not more than One hundred fifty thousand pesos (P150,000.00), or both, at the discretion of the court (b) The forcible entry or illegal detainer by persons who are not qualified beneficiaries under this Act (RA 6657) to avail themselves of the rights and benefits of the Agrarian Reform Program; (b) The forcible entry or illegal detainer by persons who are not qualified beneficiaries under this Act to avail themselves or the rights and benefits of the Agrarian Reform Program; Remarks Definition of offense: Unchanged Note: Under Sec. 6-A, provincial, city and municipal government units acquiring private agricultural lands by expropriation or other modes of acquisition xxx, shall not be subject to the five (5)hectare retention limit xxx and Sections 70 and 73 (a). Definition of offense: Unchanged 105 Prohibited Acts and Omissions Under RA 6657, as amended Under RA 6657, as amended by RA 9700 Penalty Penalty Imprisonment: 1 month to 3 Imprisonment: 3 years and 1 day years and /or Fine of P1,000 to to 6 years and/or Fine of P15,000 P50,000.00 to P150,000.00 (c) The conversion by any landowner of his agricultural land into non-agricultural use with intent to avoid the application of this Act (RA 6657) to his landholdings and to dispossess his tenant farmers of the land tilled by them; Penalty Imprisonment: 1 month to 3 years and /or Fine of P1,000 to P15,000 (c) Any conversion by any landowner of his/her agricultural land into any non-agricultural use with intent to avoid the application of this Act to his/her landholdings and to dispossess his/her bona fide tenant farmers; Remarks Definition of offense: Under RA 9700, the term “tenant farmers” is qualified by the term “bonafide” Penalty Imprisonment of six (6) years and one (1) day to twelve (12) years or a fine of not less than Two hundred thousand pesos (P200,000.00) and not more than One million pesos (P 1,000,000.00), or both, at the discretion of the court (d) The willful prevention or obstruction by any person, association or entity of the implementation of the CARP; (d) The malicious and willful prevention or obstruction by any person, association or entity of the implementation of the CARP; Penalty Imprisonment: 1 month to 3 years and /or Fine of P1,000 to P15,000 Penalty Imprisonment: 6 years and 1 day to 12 years and/or Fine of P200,000.00 to P1,000,000.00 Definition of offense: Under RA 9700,the prevention or obstruction must not only be willful; the same must also be malicious. 106 Prohibited Acts and Omissions Under RA 6657, as amended Under RA 6657, as amended by RA 9700 (e) The sale, transfer , (e) The sale, transfer, conveyance conveyance or change of the or change of the nature of lands nature of lands outside of urban outside of urban centers and city centers and city limits either in limits either in whole or in part whole or in part after the after the effectivity of this Act, effectivity of this Act (RA 6657). except after final completion of the appropriate conversion under Section 65 of Republic Act No. 6657, as amended. The date of the registration of the deed of conveyance in the Register of Deeds with respect to titled lands and the date of the issuance of the tax declaration to the transferee of the property with respect to unregistered lands, as the case may be, shall be conclusive for the purpose of this Act; The date of the registration of the deed of conveyance in the Register of Deeds with respect to titled lands and the date of the issuance of the tax declaration to the transferee of the property with respect to unregistered lands, as the case may be, shall be conclusive for the purpose of this Act ; Penalty Imprisonment: 1 month to 3 years and /or Fine of P1,000 to P15,000 Penalty Imprisonment: 6 years and 1 day to 12 years and/or Fine of P200,000 to P1,000,000.00 Remarks Definition of offense: RA 9700 inserted the qualification as underscored in the previous column. Note: The sale and / or transfer of agricultural land in cases where such sale, transfer or conveyance is made necessary as a result of a bank's foreclosure of the mortgaged land is not a violation of this sub-section( of 62 Section 73 (e) . Pursuant to RA 7881 [An Act Amending Certain Provisions of Republic Act No. 6657, Entitled "An Act Instituting a Comprehensive Agrarian Reform Program to Promote Social Justice and Industrialization, Providing the Mechanism For Its Implementation, and For Other Purposes” (1995)] , Section 73-A is inserted into the CARP law and the same section is left untouched by RA 9700. Sec. 73-A provides an exception to 62 Sec. 73 (par. e) of RA 6657, as amended, to wit: “Exception. – The provisions of Section 73, paragraph (E ), to the contrary notwithstanding, the sale and / or transfer of agricultural land in cases where such sale, transfer or conveyance is made necessary as a result of a bank's foreclosure of the mortgaged land is hereby permitted.” 107 Prohibited Acts and Omissions Under RA 6657, as amended Under RA 6657, as amended by RA 9700 (f) The sale, transfer or conveyance by a beneficiary of the right to use or any other usufructuary right over the land he acquired by virtue of being a beneficiary, in order to circumvent the provisions of this Act (RA 6657); (f) The sale, transfer or conveyance by a beneficiary of the right to use or any other usufructuary right over the land he/she acquired by virtue of being a beneficiary, in order to circumvent the provisions of this Act; Penalty Imprisonment: 1 month to 3 years and /or Fine of P1,000 to P15,000 Penalty Imprisonment: 3 years and 1 day to 6 years and/or Fine of P50,000.00 to P150,000.00 (g) The unjustified, willful, and malicious act by a responsible officer or officers of the government through the following: (1 ) The denial of notice and/or reply to landowners; (2) The deprivation of retention rights; (3) The undue or inordinate delay in the preparation of claim folders; or (4) Any undue delay, refusal or failure in the payment of just compensation; Remarks Definition of offense: Unchanged New agrarian offense defined by RA 9700 108 Prohibited Acts and Omissions Under RA 6657, as amended Under RA 6657, as amended by RA 9700 Penalty Imprisonment: 3 years and 1 day to 6 years and/or Fine of P50,000.00 to P150,000.00 (h) The undue delay or unjustified failure of the DAR, the LBP, the PARC, the PARCCOM, and any concerned government agency or any government official or employee to submit the required report, data and/or other official document involving the implementation of the provisions of this Act , as required by the parties or the government, including the House of Representatives and the Senate of the Philippines as well as their respective committees, and the congressional oversight committee created herein; Remarks New agrarian offense defined by RA 9700 Penalty Imprisonment: 3 years and 1 day to 6 years and/or Fine of P50,000.00 to P150,000.00 109 Prohibited Acts and Omissions Under RA 6657, as amended Under RA 6657, as amended by RA 9700 (i) The undue delay in the compliance with the obligation to certify or attest and/or falsification of the certification or attestation as required under Section 7 RA 6657, as amended; Remarks New agrarian offense defined by RA 9700 Penalty Imprisonment: 6 years and 1 day to 12 years and/or Fine of P200,000.00 to P1,000,000.00 (j) Any other culpable neglect or willful violations of the provisions of this Act. Penalty Imprisonment of not less than one (1) month to not more than three (3) years or a fine of not less than (P 1,000.00) and not more than fifteen thousand pesos (P 15,000.00), or both, at the discretion of the court. Under RA 6657, there is a provision to the effect that the knowing or willful violation of the law is punishable. However, the same is not part of Sec. 73, which defines the offenses; rather, the provision is incorporated into section 74, which is essentially a provision on the imposable penalties for the different 63 agrarian offenses. “Sec. 74 . Penalties.– Any person who knowingly or willfully violates the provisions of this Act shall be punished by imprisonment of not less than one (1) month to not more than three (3) years or a fine of not less than (P 1,000.00) and not more than fifteen thousand pesos (P 15,000.00), or both, at the discretion of the court. (RA 6657 before the RA 9700 amendments).” 63 110 PENALTIES (prior to RA 9700) PENALTIES (under RA 9700) As seen above, there is a uniform penalty for the different offenses which is – Imprisonment of not less than one (1) month to not more than three (3) years or a fine of not less than (P 1,000.00) and not more than fifteen thousand pesos (P 15,000.00), or both, at the discretion of the court. If the offender is a corporation or association, the officer responsible therefor shall be criminally liable. (Sections 73-74, RA 6657) The imposable penalties vary and are higher than those prescribed under RA 6657 prior to the RA 9700 amendments. The provision on the culpability of the responsible officer when the offender is a corporation or association is retained. New provisions on penalties introduced by RA 9700. in the case of government officials and employees, a conviction under RA 6657, as amended is without prejudice to any civil case and/or appropriate administrative proceedings under civil service law, rules and regulations. any person convicted under RA 6657, as amended, shall be disqualified from enjoying any benefit provided for in any agrarian reform law or program. (Sections 24-25, RA 9700 amending Sec. 73-74 of RA 6657, as amended) 111 APPENDICES A. Department of Agrarian Reform (DAR) Administrative Order No. 3, Series of 2009 (October 15, 2009) Rules and Procedures Governing the Cancellation of Registered Certificates of Land Ownership Awards (CLOAs), Emancipation Patents, and Other Titles Issued Under Any Agrarian Reform Program B. DAR Administrative Order No. 4, Series of 2009 (October 15, 2009) Rules and Regulations Implementing Sec. 19 of RA No. 9700 [Jurisdiction on Referral of Agrarian Dispute] C. Office of the Court Administrator (OCA) Circular No. 62-2010 (April 28, 2010) Implementation of Sections 7 and 50-A of RA No. 6657, also known as The Comprehensive Agrarian Reform Law Of 1988, as respectively amended by Sections 5 and 19 of RA 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) D. Department of Justice (DOJ) Memorandum (March 16, 2010) Subject: Jurisdiction on and Referral of Agrarian Disputes E. DOJ Department Circular No. 40 (June 7, 2010) Guidelines on the Investigation and Referral of Cases to the Department of Agrarian Reform Pursuant to Section 19 of Republic Act. No. 9700 F. Republic Act No. 9700 (Signed August 7, 2009; effective July 1, 2009) 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 112