Amendments to Laguna Lake Development Authority Act

Policy and environmental management mandate

Section 1 declares national policy to promote and accelerate development and balanced growth of the Laguna Lake area and surrounding provinces, cities, and towns within the region, in the context of national and regional social and economic development plans.
Development of the Laguna Lake region must include due regard and adequate provisions for environmental management and control, preservation of the quality of human life and ecological systems, and prevention of undue ecological disturbances, deterioration and pollution.
Development planning and implementation must align with national and regional plans and policies for social and economic development.

Authority’s special powers and planning controls

Section 2 (amending Section 4(a)) requires the Authority to conduct a comprehensive survey of the Laguna Lake region’s physical and natural resources, potentialities, and related conditions, and to draft a comprehensive and detailed plan to conserve and optimally utilize resources.
The Authority must implement the comprehensive plan upon approval by the National Economic and Development Authority (NEDA) Board, including projects in line with the plan.
Fisheries plans and programs must require prior consensus of the Bureau of Fisheries and Aquatic Resources to ensure consistency with national fisheries plans and programs.
For the survey, public agencies must submit and private entities must provide necessary data, except data deemed inviolable under existing laws.
Section 2 (amending Section 4(d)) empowers the Authority to pass upon and approve or disapprove plans, programs, and projects proposed by local government offices/agencies, public corporations, and private persons or enterprises, when related to regional development envisioned in the Act.
The Authority must issue the necessary clearance for approved plans, programs, and projects within thirty days from submission unless the proposals are not consonant with the Authority’s plans or would contribute to unmanageable pollution of Laguna Lake waters or bring about ecological imbalance.
The Authority is empowered to institute necessary legal proceedings against any person who commences or continues implementing a project, plan, or program within the Laguna de Bay region without previous clearance from the Authority.
A local government office, agency, public corporation, private person, or enterprise whose plans, programs, or projects are disapproved may appeal to the NEDA within fifteen (15) days from receipt of disapproval, and the NEDA decision is final.
The Authority must collect reasonable processing fees fixed by the Authority’s Board of Directors for processing plans, programs, and projects.
Expansion plans are treated as new plans subject to Authority review and payment of processing fees.
The Authority and national and local government offices/agencies and public corporations must coordinate plans, programs, projects, and licensing procedures to draw up a Laguna Lake development plan that becomes binding upon all parties concerned upon approval by the NEDA Board.

Infrastructure, reclamation, and water resources powers

Section 2 (amending Section 4(f)) authorizes the Authority to plan, program, finance, and undertake infrastructure projects such as river, flood and tidal control works, waste water and sewerage works, water supply, roads, portworks, irrigation, housing, and related works, including readjustment, relocation, or resettlement within the region when deemed necessary and beneficial.
If a project is financed wholly or in part by the Authority, the Authority may collect reasonable fees and tolls fixed by its Board of Directors subject to approval of the NEDA Board from users and/or beneficiaries to recover costs of construction, operation, and maintenance.
If classified as social overhead capital projects as determined by NEDA, the Authority may receive government financial assistance in the necessary amount, under government terms and conditions upon recommendation of the NEDA Board.
Funds may be appropriated from the National Treasury not otherwise appropriated for amounts necessary to carry out such purposes.
Section 2 (amending Section 4(i)) empowers the Authority to reclaim or cause to be reclaimed portions of the Lake, undertake reclamation projects, and/or acquire land from the lake necessary to accomplish the Authority’s aims and purposes, subject to approval by the NEDA Board.
Reclaimed land becomes property of the Authority and title vests in the Authority.
The resulting lakeshore area continues to be owned by the national government.

Fisheries, permits, zoning, and water regulation

Section 3 (inserting Section 4(j)) authorizes the Authority, notwithstanding provisions of existing laws to the contrary, to engage in fish production and other aqua-culture projects in Laguna de Bay and other bodies of water within its jurisdiction.
The Authority may conduct studies and experiments with collaboration and assistance of the Bureau of Fisheries and Aquatic Resources to improve techniques and practices.
Existing laws, rules, permits, or authorizations remain in force until modified, altered, or amended through the procedure in the subsequent sub-paragraph.
Section 3 (inserting Section 4(k)) grants the Authority exclusive jurisdiction to issue new permits for the use of lake waters for projects or activities in or affecting Laguna de Bay, including navigation, construction, and operation of fishpens, fish enclosures, fish corrals, and similar activities.
The Authority must impose necessary safeguards for lake quality control and management and may collect necessary fees for these activities and projects.
Fees collected for fisheries may be shared between the Authority and other government agencies and political subdivisions in proportions determined by the President of the Philippines upon recommendation of the Authority’s Board.
The Authority’s Board may determine new areas of fishery development or activities placed under the supervision of the Bureau of Fisheries and Aquatic Resources, considering the overall development plans and programs for Laguna de Bay and related bodies of water.
The Authority must subject to approval of the President promulgate rules and regulations governing fisheries development activities in Laguna de Bay, taking into account:
- socio-economic amelioration of bonafide resident fisherman individually or collectively in the form of cooperatives;
- lakeshore town development;
- a master plan for fishpen construction and operation;
- communal fishing ground for lakeshore town residents; and
- preference to lakeshore town residents in hiring laborers for fishery projects.
Section 3 (inserting Section 4(l)) requires cities and municipalities embraced within the region to pass appropriate zoning ordinances and other regulatory measures necessary to carry out the objectives of the Authority, and to enforce them with Authority assistance.
Section 3 (inserting Section 4(m)) authorizes the Authority to exercise water rights over public waters within the Laguna de Bay region whenever necessary to carry out the Authority’s projects.
Section 3 (inserting Section 4(n)) requires the Authority to coordinate with existing government agencies in establishing water quality standards for industrial, agricultural, and municipal waste discharges into the lake, and cooperate in enforcing such standards.
When there is conflict on the appropriate water quality standard to be enforced, the conflict must be resolved through the NEDA Board.
The Authority may separately pursue enforcement and penalty actions as provided for in Section 4(d) and Section 39-A of the Act.
Section 3 (inserting Section 4(o)) empowers the Authority, in coordination with the National Water Resources Council created under Presidential Decree No. 424 dated March 28, 1974 (or its successors in interest), to develop water supply from ground and/or lake water resources for municipal, agricultural, and industrial uses.
The Authority may enter agreements with municipalities, government agencies and corporations, and the private sector to supply, distribute, and market water.
Section 3 (inserting Section 4(p)) directs the Authority to undertake studies to improve and maintain desirable lake water quality and to prepare a continuing water quality management program subject to NEDA approval, carried out with assistance and support of all national and local government units involved in water quality management.

Fees and damages mechanisms

Section 4 (inserting Section 4-A) provides that compensation for damages to the water and aquatic resources of Laguna de Bay and its tributaries resulting from failure to meet established water and effluent quality standards or from other wrongful act or omission punishable under law is awarded to the Authority and earmarked for water quality control and management.
Section 4 (inserting Section 4-B) empowers the Authority to collect annual fees for use of the lake waters and its tributaries for beneficial purposes including recreation, municipal, industrial, agricultural, fisheries, navigation, and waste disposal.
Fees collected must be used for management and development of the lake and its watershed areas.
The fee rates must be subject to approval of the President of the Philippines.

Corporate structure, meetings, and financing

Section 6 (amending Section 6) sets the Authority’s authorized capital at One Hundred Million Pesos (P100,000,000).
Of the authorized capital, Fifty-One Million Pesos (P51,000,000) must be subscribed by the national government and Forty-Nine Million Pesos (P49,000,000) must be subscribed by cities, provinces, municipalities, government corporations, and private investors.
At least twenty-five percent (25%) of the national government subscription must be fully paid.
The authorized capital stock may be increased upon the recommendation of NEDA.
The authorized capital stock (P100,000,000) is divided into One Million (1,000,000) shares with a par value of One Hundred Pesos (P100) per share.
Shares are divided into 700,000 common shares (voting) and 300,000 preferred shares (non-voting), with fixed rates of return determined by the Board.
Of the 700,000 common shares, a minimum of 400,000 shares must be subscribed by the national government, and at least sixty per cent (60%) of the balance must be subscribed by the Provinces of Laguna and Rizal in proportion agreed by both provincial governments in accordance with their financial capacities.
The remaining balance of common shares is open for subscription to cities, provinces, municipalities, and private investors.
For preferred shares, a minimum of 110,000 shares must be subscribed by the national government.
Preferred shares enjoy preference regarding distribution of dividends and assets in case of dissolution.
Section 8 (amending Section 8) appropriates One Million Pesos (P1,000,000) annually for five (5) years from the general fund of the National Government for operating expenses not otherwise appropriated from the date of approval of the Decree.
The Board may appropriate from Authority funds sums needed for operating expenses.
Section 9 (amending Section 9) allows the Board to incur indebtedness or issue bonds when deemed necessary by Board resolution stating the purpose.
The indebtedness or bond resolution must be confirmed by the affirmative vote of stockholders representing a majority of subscribed capital stock outstanding and entitled to vote.
The Authority must submit proposals to incur indebtedness or issue bonds to the NEDA Board and the Monetary Board of the Central Bank for approval.
Authorization becomes effective upon approval of the President of the Philippines.
Section 10 (amending Section 15) provides that the first Board of Directors’ members are elected by stockholders and incorporation is deemed effected from the date of the first meeting of such Board.
Section 11 (amending Section 16) provides the Board has eight (8) members: the Executive Secretary; Secretary of Economic Planning; Secretary of Natural Resources; Secretary of Industry; a representative of Laguna Province designated by Laguna Provincial Board; a representative of Rizal Province designated by its Provincial Board; General Manager appointed by the President; and a representative of private investors appointed by the President from among recommendees submitted by private investors.
The incumbent representative of private investors remains a member until the President appoints a successor.
The Board elects annually from among its members a Chairman and a Vice-Chairman.
A Corporate Secretary is appointed by the Board.
Officials next in rank serve as permanent alternate members, attend meetings in absence of principals, and receive corresponding per diems.
Section 14 (amending Section 24) requires the Board to meet at least once a month, and meetings are convoked by the Chairman or upon written request signed by a majority of members.
Section 15 (amending Section 25) sets Board member per diems: a per diem for every meeting attended, determined by the Board, with a maximum total of One Thousand Pesos (P1,000.00) for any one month.
Board members are entitled to commutable transportation and representation allowances authorized by the Board, with an aggregate cap of One Thousand Pesos (P1,000.00) for any one month.
Section 16 (inserting Section 25-A) gives the Board power to:
- formulate, prescribe, amend, and repeal rules and regulations governing Authority business;
- appoint and fix compensation of officials from division heads and above and comparable rank, including Assistant General Manager, upon recommendation of the General Manager;
- by majority vote of all members, suspend, remove, or discipline for just cause all officials appointed by the Board;
- approve annual and/or supplemental budgets; and
- do other acts necessary to carry out the Charter.
Section 17 (amending Section 26) makes the General Manager the chief executive of the Authority and assigns duties including:
- submitting policies and measures for Board consideration;
- executing and administering Board-approved policies, plans, programs, and projects;
- directing and supervising operations and internal administration, with delegated administrative responsibilities subject to Board rules;
- appointing officials and employees below division heads in the approved budget upon written recommendation of division heads using the Authority’s merit system standards;
- submitting quarterly reports to the Board on personnel selection, placement, and training;
- submitting to NEDA an annual report and other reports, including details of annual and supplemental budgets; and
- performing other functions provided by law.
Section 19 (amending Section 29) sets the General Manager compensation at at least Thirty-Six Thousand Pesos (P36,000.00) per annum, charged against the Authority’s annual operating expenses appropriation, and authorizes the Board to provide per diems and allowances for the General Manager.
Section 21 (amending Section 31) provides the General Manager is assisted by an Assistant General Manager who has delegated powers and duties and acts as General Manager in absence or temporary incapacity until a new General Manager is appointed.
Section 21 (amending Section 31) organizes the Authority into divisions under the General Manager: Administrative Division; Legal Division headed by a Legal Counsel; Finance Division; Project Management Division; Planning and Project Development Division; and Engineering and Construction Division.
The business and activities of each division are directed by a division head, and the Board may create other divisions and positions as needed.

Board qualifications, appointments, and merit system

Section 13 (amending Section 21) requires all Board members to be citizens and residents of the Philippines, with demonstrated executive competence and experience in public administration, economic planning, resource management, or managing large agricultural, industrial, or commercial enterprises.
No person may be nominated as a Board member unless of unquestioned integrity and competence.
Section 22 (amending Section 32) requires Authority officials, agents, and employees be selected and appointed based on merit and fitness under a comprehensive and progressive merit system established by the Authority.
Recruitment, transfer, promotion, and dismissal of all Authority personnel, including temporary workers, are governed by the merit system.
Regular professional and technical personnel are exempt from WAPCO classification and compensation plans and Civil Service rules and regulations.
Exempt regular professional and technical personnel must be permanent in status and entitled to benefits and privileges normally accorded to government employees, including retirement, GSIS insurance, leave, and similar matters.
The Director General of NEDA reviews and recommends approval of the staffing pattern for professional and technical personnel of the Authority, including modifications necessary for five years from approval of the Decree.

Supervision, audits, and continuity

Section 25 (inserting Section 34-A) places the Authority directly under NEDA for policy and program integration.
Section 25 (inserting Section 34-B) requires the Authority to submit audited financial statements to NEDA within 60 days after the close of the fiscal year.
Until audited financial statements are submitted, the Authority continues operating based on not more than the preceding year’s budget.
Section 25 (inserting Section 34-C) authorizes NEDA to initiate a management audit of the Authority when there are reasonable grounds to believe the affairs of the Authority have been mismanaged.
If the management audit indicates mismanagement, NEDA takes appropriate measures required by the circumstances.

Penal liability and separate civil damages

Section 27 (adding Section 39-A) imposes criminal liability on any person (natural or juridical) who violates any provision of the Act or any rule or regulation promulgated by the Authority under it.
The criminal penalty is imprisonment of not exceeding three years or a fine of not exceeding Five Thousand Pesos (P5,000) or both, at the discretion of the court.
If the violator is a corporation, partnership, or association, the responsible officer or officers are liable.
The Authority is authorized to pursue separate civil actions for damages resulting from infractions of the Act, rules or regulations issued pursuant to it, and/or conditions embodied in clearances or permits issued by the Authority.

Repeals and organizational transition

Section 12 repeals Sections 18 and 19 of Republic Act No. 4850.
Section 18 repeals Section 27 of Republic Act No. 4850.
Section 19 repeals Section 28 of Republic Act No. 4850.
Section 23 repeals Section 33 of Republic Act No. 4850.
Section 24 repeals Section 34 of Republic Act No. 4850.
Section 26 repeals Section 39 of Republic Act No. 4850.
Section 28 (adding Section 40-A) provides a transitory rule: when the Regional Development Council for the region becomes operational, socio-economic planning functions under the Charter are assumed by that council under the Integrated Reorganization Plan as amended.
Section 28 (adding Section 40-A) provides that incumbent officials and employees continue in office, and qualified persons have preference in filling new positions created due to the Decree.

Definitions and general repeal clause

Section 29 (amending Section 41) defines “Laguna Lake” or “lake” to refer to Laguna de Bay as the area covered by lake water at the average annual maximum lake level of elevation 12.50 meters, as referred to a datum 10.00 meters below mean lower low water (M.L.L.W.).
Lands located at and below the elevation referenced in the definition are public lands that form part of the bed of Laguna de Bay.
Section 30 repeals or modifies all laws, decrees, orders, and rules contrary to or inconsistent with Presidential Decree No. 813.
Presidential Decree No. 813 takes effect upon approval.