Creation of NARRA and land distribution law

Creation and supervision of NARRA

Section 2 creates a corporation to be known as National Resettlement and Rehabilitation Administration (“NARRA”).
Section 2 places NARRA under the supervision and control of the President of the Philippines through the Office of Economic Coordinator.
Section 2 assigns NARRA the duties and functions of the Bureau of Lands under Commonwealth Act No. 691, as amended, and additional duties specified in the Act.
Section 2 provides that NARRA is headed by a General Manager and an Assistant General Manager appointed in accordance with the Act.

NARRA divisions and annual program

Section 3 mandates at least three divisions: (1) Settler Selection and Screening, (2) Translation and Supplies, and (3) Settlement Assistance and Community Work.
Section 3 requires the General Manager to submit at the beginning of each fiscal year, but not later than July 31, a program of activities for the whole fiscal year with the budget of expenditures to support that program.
Section 3 requires the submitted program and budget for final approval by the President of the Philippines.

General and special corporate powers

Section 4 authorizes NARRA to adopt, alter, and use an official seal; make contracts to lease or own real and personal property; and sue and be sued.
Section 4 authorizes NARRA to regulate as necessary to execute the functions vested in it by the Act.
Section 5 authorizes NARRA to give land to landless Philippine citizens who need, deserve, and are capable of tilling the land, subject to the Public Land Act qualifications and to terms and conditions defined by the Board of Directors.
Section 5 authorizes NARRA to facilitate settlement, acquisition, and cultivation of agricultural lands.
Section 5 authorizes NARRA to acquire by purchase agricultural portions of landed estates directed by the President for the policy in Section 1.
Section 5 authorizes NARRA to reclaim swamps and marshes, obtain title where feasible, and convert them into agricultural lands for settlement.
Section 5 authorizes NARRA to promote community life in settlements and to borrow money from any credit institution for purposes provided in the Act.
Section 5 authorizes NARRA to survey, subdivide, and set aside lots or areas for farming, townsites, roads, parks, government centers, and other public and civic improvements, and to dispose of farm lands and townsite lots to qualified persons subject to Constitutional and Public Land Act limits, and to prices, terms, and conditions prescribed by the Board.
Section 5 authorizes NARRA to secure from other government agencies assistance and facilities to accelerate development, cultivation and electrification; construction of irrigation systems; institution of credit facilities; enhancement of cottage industries and establishment of processing plants, warehouses, and marketing facilities.
Section 5 authorizes NARRA to do other acts and transact business directly or indirectly necessary, incidental, or conducive to attaining the Act’s policy.

Core functions and settler assistance

Section 6 requires NARRA to select and screen applicants for allocation within areas set aside for settlement in the public domain who meet the listed qualifications: they are bona fide farmers in highly settled areas, do not own land of five hectares or more, have not owned any homestead, have not secured any homestead rights from any homesteader, are capable of discharging settler responsibilities, and shall work the land on the basis of family-operated, family-type farms.
Section 6 requires applicant selection to follow the order of priority: (a) actual bona fide tenants or occupants; (b) surrendered dissidents who take an oath and show sincere desire to support the Constitution; (c) graduates of agricultural schools and colleges; (d) trainees who completed military training; (e) veterans and members of guerrilla organizations; and (f) other applicants possessing the required qualifications.
Section 6 requires NARRA to assist settlers in transporting themselves, their belongings, work animals, and farm equipment from their communities to the reserved settlement areas, including subsistence necessary until credit is provided by the Agricultural Credit and Cooperative Financing Administration (ACCFA) under Section 13, or by any other credit institution.
Section 6 provides that the transportation and subsistence loans are non-interest bearing, constitute a lien upon the land, and are amortized over ten years, payable annually beginning with the end of the third year after the date of arrival in the settlement area, with a right to prepay in full at any time before maturity.
Section 6 requires NARRA to assist settlers in securing equipment, supplies, and materials needed in settlement areas at the most advantageous prices or terms, and—if requested—to assist cooperative associations of new settlers in securing advantageous terms for farm implements and supplies.
Section 6 requires NARRA to provide housing and other accommodations for new settlers by placing them in properly surveyed and subdivided lots reserved for that purpose.
Section 6 requires NARRA to help organize community activities upon arrival and to cooperate with the agricultural extension service, the Bureau of Health, the Bureau of Public Schools, and other government agencies for establishment of community facilities and organization of collective efforts essential to development.
Section 6 requires NARRA to submit annual reports and balance sheets to the President and Congress as provided in sections five hundred and seventy-four to five hundred and seventy-seven of the Administrative Code.
Section 6 allows NARRA to appoint subordinate personnel and fix their number and salaries upon recommendation of the Office of Economic Coordinator and approval of the President, subject to the Civil Service Law and Rules and the salary law, and to suspend, remove, or discipline subordinate employees with similar approvals.

Board of Directors composition, limits

Section 7 provides that NARRA’s powers and functions are exercised by a Board of Directors composed of a Chairman and five members.
Section 7 requires members to be appointed by the President with the consent of the Commission on Appointments, for a term of three years.
Section 7 provides that a person appointed to fill a vacancy serves only the unexpired portion of the term.
Section 7 provides for regular meetings and special meetings called by the Chairman or by any three members.
Section 7 limits the total number of Board meetings to not more than four a month.
Section 7 sets per diem at PHP 25 for each meeting actually attended by the Chairman and each member.

Board powers and top management compensation

Section 8 requires the Board to prescribe, amend, and repeal by-laws, rules, and regulations governing NARRA’s business operations, including subdivision into small farm lots, distribution, initial aid to settlers, manner of payment, and formation of committees needed to facilitate disposition and expedite issuance of titles over farm lots contemplated in Section 5.
Section 8 authorizes the Board to appoint and fix the term of office of the General Manager and Assistant General Manager, with compensation of PHP 12,000 per annum for the General Manager and PHP 9,000 per annum for the Assistant General Manager, subject to recommendation of the Office of Economic Coordinator and approval of the President.
Section 8 authorizes the Board, by majority vote of all members, for cause and upon recommendation of the Office of Economic Coordinator with approval of the President, to suspend and/or remove the General Manager and/or the Assistant General Manager.
Section 8 authorizes the Board to appoint and fix the compensation of a Secretary of the Board and such other officers as needed.
Section 8 requires the Board to approve the annual budget and supplemental budgets submitted by the General Manager.

Custody of reserved public lands

Section 9 makes NARRA custodian and administrator of public lands reserved or reserved in the future by the President for settlement.
Section 9 covers all lands reserved for the Land Settlement and Development Corporation (LASEDECO).
Section 9 covers agricultural lands surveyed and subdivided under Commonwealth Act No. 691.

Abolition of LASEDECO and transfer

Section 10 abolishes the Land Settlement and Development Corporation created under Executive Order No. 355 dated October 23, 1950, known as LASEDECO.
Section 10 transfers LASEDECO obligations under that Executive Order to the Treasury of the Philippines, except commercial accounts to be paid as later provided, to be amortized over 15 years, subject to availability of government funds.
Section 10 orders that all LASEDECO assets—including farm machinery and equipment—be turned over to a Board of Liquidators for public auction sale.
Section 10 directs auction proceeds to pay off accounts with commercial firms, then to transfer net proceeds to the ACCFA for loans to settlers or cooperative organizations of settlers under the Act.
Section 10 allows buildings, equipment, and machinery needed by settlers’ cooperatives in the area where located or in areas being settled to be transferred to those cooperatives at an appraised value fixed by the Board of Liquidators.

Funding and revolving fund appropriations

Section 11 establishes a Revolving Fund of the colonists as provided in Commonwealth Act No. 691.
Section 11 appropriates PHP 5,000,000 for the fiscal year 1954-55 from funds in the National Treasury not otherwise appropriated, to be spent by NARRA upon recommendation of the Office of Economic Coordinator under supervision and authority of the President.
Section 11 requires inclusion in the General Appropriation Acts for each subsequent fiscal year for 10 years of not less than PHP 8,000,000 annually for the Revolving Fund of the Colonists to carry out the Act’s purposes.

Transfer of transferred public agricultural lands

Section 12 transfers to NARRA jurisdiction over all public agricultural lands referred to in Section 14 of Executive Order No. 355 dated October 23, 1950.
Section 12 requires that transferred lands be disposed of according to the Act.
Section 12 provides that settlement of the transferred agricultural lands by voluntary settlers who do not receive direct assistance under the Act or by duly qualified homestead applicants shall not be precluded or obstructed.

ACCFA loans for independence of settlers

Section 13 authorizes the ACCFA to give loans or financial assistance to settlers or settlers’ cooperatives to help establish them as independent farmers after arrival in settlement areas, in addition to aid from the Revolving Fund.
Section 13 permits ACCFA to require any borrower to become a bona fide member of a cooperative association in the settlement areas as a condition for the financial aid or loan.
Section 13 subjects the loans to the conditions in Section 6, subsection two, with modification that the lien shall be on the borrower’s produce and amortization begins one year after the date of the loan.

LASEDECO separation and retirement benefits

Section 14 provides that LASEDECO officials, employees, and laborers separated by virtue of the abolition who are entitled to retire under Republic Act No. 660 shall be retired upon payment of LASEDECO obligations to the Government Service Insurance System subsisting under the account as of approval of the Act.
Section 14 provides that those not retired receive 30 days’ separation pay, the money value of earned vacation and sick leaves, and a gratuity in one lump sum equivalent to one month’s salary for every year of satisfactory service based on the highest salary received.
Section 14 grants a special gratuity rule for those who rendered less than one year of service: a lump sum gratuity equivalent to one-half of one month’s salary.
Section 14 requires refund to the National Government of the value of any gratuity not yet would have been received if payable monthly, for any such person reinstated in government service or any government-owned or controlled corporation after having been paid gratuity under this section.

Presidential liquidation and property transfer

Section 15 directs the President to provide by executive order for the liquidation of LASEDECO assets and liabilities.
Section 15 authorizes the President to transfer to NARRA properties, equipment, assets, and rights of LASEDECO needed by NARRA to carry out the Act’s purposes and objectives, subject to Section 10 provisions.

Patent issuance and cession of surveyed lands

Section 16 requires cession to NARRA of all surveyed portions of public agricultural lands previously transferred or reserved for NARRA under the Act and those later transferred to NARRA for the Act’s purposes.
Section 16 authorizes the President to cause issuance of patents or other deeds transferring title to NARRA, following the Public Land Act and rules and regulations promulgated to facilitate transfer of title to NARRA.

Conflict-of-interest and land acquisition ban

Section 17 prohibits any NARRA officer or employee from acquiring, directly or indirectly, any land within NARRA land settlement projects.
Section 17 requires immediate removal by competent authority for violations of the prohibition.
Section 17 imposes imprisonment of not less than one year nor exceeding five years and a fine of not less than PHP 1,000 nor more than PHP 5,000 for violators.
Section 17 provides that if a dummy is used to violate the prohibition, the same penalty applies to the dummy.

Financial interest and contract interference ban

Section 18 prohibits NARRA officials or employees from directly or indirectly having financial interest in any contract with the corporation or in any special privilege granted by the corporation during their term of office.
Section 18 requires that any violation be punished by dismissal from office and a fine of not more than PHP 5,000 and imprisonment of not more than five years.

Separability, repeals, and effectivity

Section 19 provides separability: if any provision is declared unconstitutional or its application to any person, circumstance, or transaction is held invalid, the remainder remains valid and applicable to others.
Section 20 repeals all Acts, parts of Acts, and special charters or parts thereof inconsistent with the Act.
Section 21 provides that the Act takes effect upon approval.
Approval date: June 18, 1954.