Law Summary
Jurisdiction Over Water Rights in Laguna de Bay Region
- LLDA has exclusive jurisdiction over use permits for all surface water in Laguna de Bay and surrounding areas.
- Regulates activities including navigation, construction, operation of fishpens, fish enclosures, etc.
- Laguna de Bay Region defined to include specified provinces, cities, and towns in Luzon.
Fee Collection for Use of Lake Waters
- LLDA empowered to collect fees for all beneficial uses of lake waters (fisheries, recreation, municipal, industrial, agriculture, irrigation, navigation, waste disposal).
- Rates and sharing schemes subject to Presidential approval based on Board recommendation.
- Fishpen fees shared: initially 20% to lakeshore local governments, 5% to Project Development Fund, 75% to LLDA.
- After three years of Fishery Zoning and Management Plan, fishpen fee sharing adjusts to 35% lakeshore LGUs, 5% Project Fund, 60% LLDA.
- LLDA’s share forms part of corporate funds and is exempt from remittance to National Treasury.
Expanded Powers and Functions
- Issue standards and regulations for sewage works and industrial waste disposal plans and permits.
- Inspect construction and maintenance for compliance.
- Prescribe procedural rules regarding hearings, filings, permits, and enforcement.
- Issue orders to compel compliance and discontinue operations violating rules.
- Permit issuance for pollution control, sewage discharge, and waste disposal; require central sewerage systems in subdivisions, hospitals, etc., with exceptions.
- Authority to impose fees for permits.
- Authority to revoke, suspend, or modify permits after notice and hearing.
- Deputize government agencies and request assistance for enforcement.
- Authorize inspections of public and industrial properties related to pollution.
- Exercise other necessary powers to fulfill responsibilities.
Composition of the Board of Directors
- Board comprised of 10 members:
- Representative of Office of the President
- Ministers of Economic Planning, Natural Resources, Trade and Industry
- Representatives of Laguna and Rizal Provinces designated by Provincial Boards
- Representative of Metro Manila Commission Governor’s Office
- President of Laguna Lake Federation of Mayors, Inc.
- LLDA General Manager (appointed by President)
- Representative of Private Investors
- Board elects Chairman and Vice-Chairman annually.
- Corporate Secretary appointed by Board, rank of Department Director.
- Alternates for members to attend meetings when principals are absent.
Capitalization and Financing
- Authorized capital stock of PHP 700 million divided into 7 million shares at PHP 100 par value.
- National government subscribes PHP 351 million; local governments, government corporations, private investors subscribe PHP 349 million.
- At least 25% of national government subscription fully paid.
- Shares divided into 4.9 million common voting shares and 2.1 million preferred non-voting shares.
- National government subscribes minimum 2.8 million common shares and 770,000 preferred shares.
- Provinces of Laguna and Rizal subscribe at least 60% of remaining common shares proportionally.
- Remaining shares open to cities, municipalities, private investors.
- Preferred shares have dividend and asset distribution preference.
- Authorized capital may be increased on NEDA recommendation funded by fishpen fees.
Repealing Clause
- All laws, decrees, orders, rules inconsistent with this Executive Order repealed or modified accordingly.
Separability Clause
- Any unconstitutional provision does not nullify remaining provisions.
- Remaining provisions remain operative and effective.
Effectivity Clause
- The Executive Order takes effect immediately upon issuance.