Law Summary
Establishment of the Land Tenure Administration
- Created to implement the land reform policy, under the President's supervision.
- Composed of a Chairman and two members appointed for five years.
- Members can be removed for cause or incapacity.
Qualifications and Compensation for Administration Members
- Members must be natural-born Filipinos, at least 35 years old.
- Must not be related within the fourth degree to affected landowners.
- Chairman’s annual salary: 15,000 pesos; Members': 12,000 pesos.
Functions of the Administration
- Conduct studies on land tenure problems nationwide.
- Develop long-term reform plans and keep the President and Congress informed.
- Investigate areas with land tenure conflicts and recommend actions.
- Identify deficiencies in government agencies related to land reform.
- Plan systematic opening of virgin public lands prioritizing displaced tenants.
- Implement expropriation and resale or lease of urban lands.
Powers of the Administration
- Purchase private agricultural land for resale to qualified tenants or individuals.
- Initiate expropriation proceedings on private lands over 300 hectares (natural person owned) or 600 hectares (corporate owned), or any land with agrarian unrest.
- Schedule family-size farm units not exceeding six hectares per unit.
- Promulgate necessary rules and regulations.
Appointment of Officials and Employees
- Administration to appoint legal, technical, and financial staff.
- Appointment complies with Civil Service rules.
- Authority to fix compensation and define duties.
- Prescribe internal rules for employment and welfare.
Cooperation with Other Government Agencies
- May request assistance from any government department in executing its functions.
Issuance and Use of Negotiable Land Certificates
- President can issue negotiable land certificates for Administration's use, subject to monetary limits.
- Certificates issued in denominations of 1,000 pesos; payable on demand.
- Interest rates increase with duration from the date of issue.
- Certificates can be used to pay for agricultural lands, government shares, taxes, debts, and as surety or performance bonds.
Negotiated Purchase of Private Agricultural Lands
- Administration may negotiate purchase upon a majority tenant petition.
- Steps include land suitability determination, notification, investigations, and scheduling negotiations.
- Tenants must form cooperatives and deposit up to 25% of annual gross produce as payment security.
- Payment can be in land certificates or partial legal tender; legal tender portion capped at 50%.
- Inclusion of tenant debts in purchase price allowed within limits.
Expropriation of Private Agricultural Lands
- Proceedings may be initiated if owners refuse to sell or disagree on terms.
- Petition must conform to Administration’s prescribed form; last attempt at negotiation required.
- Administration takes possession upon court deposit equal to provisional land value.
- Owners receive annual income allowance during proceedings; final compensation paid in cash or land certificates.
- Landowners barred from alienating or contracting land covered by petitions to defeat the Act’s purpose.
Resale Conditions and Restrictions
- Resale contracts prohibit subdivision, transfer, or encumbrance without Administration consent.
- Sales limited to qualified farmers, tenants, or government financial institutions.
Tax and Income Provisions
- Land certificates exempt from all taxes.
- Payments received by landowners from government purchases are not taxable income.
Definitions
- Agricultural lands include lands devoted to farming and farm home lots.
- Family-size farm units defined as maximum six hectares suitable for family labor.
- "At cost" includes purchase price plus interest and administrative expenses, payable in equal annual installments over 25 years.
Special Payment Provisions
- Veterans and government employees may use backpay certificates to pay for family-size farms.
Financial Provisions and Trust Fund
- Collections from land redistribution form a trust fund for redeeming land certificates and bonds.
- Sinking fund established to ensure maturity redemption of certificates.
- Central Bank custodian with authority to invest fund and charge expenses.
- Annual appropriation up to 20 million pesos for sinking fund; 100 million pesos bond issue appropriated.
Appropriations for Administration Operations
- Initial appropriation of 300,000 pesos for 1955-1956 fiscal year for operational expenses.
- Subsequent appropriations subject to general appropriation acts.
Organizational Transfer
- Division of Landed Estates of Bureau of Lands abolished; functions and personnel transferred to the Administration.
Repeal of Inconsistent Laws
- All conflicting laws or parts of laws repealed.
Effectivity of the Act
- The Act takes effect immediately upon approval.