Law Summary
Termination of Direct Compensation Payments to Landowners
- Termination of payments by 10,201 ARBs, tilling 11,531.24 hectares, to landowners under Voluntary Land Transfer (VLT) and Direct Payment Schemes (DPS), amounting to P206,247,776.41.
- Remaining compensation balance to be paid by Government through LBP charged against Agrarian Reform Fund.
- Applies only if indebtedness existed as of the Act’s effectivity.
Definition of Agrarian Reform Beneficiaries (ARBs)
- Includes farmers/farmworkers granted lands under Presidential Decree No. 27, RA 6657 (CARL), and RA 9700.
- Covers those who have outstanding loan balances payable to LBP and private landowners at the time the Act takes effect.
Mandatory Inclusion in Registry System for Basic Sectors in Agriculture (RSBSA)
- DA mandated to include ARBs under this Act in RSBSA.
- DA to provide all appropriate government support services to these farmers.
Preference for Credit Facilities and Support Services
- ARBs who have fully paid amortizations and interests under agrarian reform laws entitled to preferential access to credit and government support services.
- Supports enhanced participation in DA programs and government financial institutions’ initiatives.
Estate Tax and Local Tax Exemptions
- Lands awarded to ARBs excluded from gross estate for estate tax purposes.
- DILG encouraged to promote local government enactment of real property tax amnesty and transfer tax relief for qualified ARBs.
Issuance and Registration of Agrarian Titles
- Registry of Deeds required to register Emancipation Patents (EP), Certificates of Land Ownership Award (CLOA), and related titles in favor of ARBs within 60 days of issuance.
- Notice of Condonation to be annotated on titles within 60 days of issuance by DAR.
Protection Against Forfeiture Due to Non-Payment
- Immediate dismissal of all pending administrative cases involving forfeiture for failure to pay amortization and interest.
- Cease execution of prior forfeiture rulings that led to cancellation of titles or eviction of ARBs.
- Restore agrarian reform awards and titles; reconstitute titles cancelled due to such cases.
- In event land awarded to another, DAR to seek equitable replacement land for displaced ARB.
Grounds for Disqualification from Benefits
- Final conviction for prohibited acts under Section 73 and penalties under Section 74 of RA 6657 results in disqualification from the Act’s benefits.
- Willful neglect or abandonment of awarded land for two consecutive years also grounds for disqualification, except when caused by uncontrollable external factors.
- DAR tasked to liberally investigate allegations to protect ARB interests.
Protection of Landowners’ Rights
- Act does not diminish landowners’ right to just compensation for lands acquired under agrarian reform.
- Existing limitations on transfer, ownership, and agricultural use of land remain unaffected.
Implementation and Enforcement
- DAR, with PARC Executive Committee and LBP technical assistance, to issue implementing rules within 60 days.
- Government agencies directed to provide support and necessary assistance for full implementation.
Funding and Appropriations
- Implementation costs charged against Agrarian Reform Fund with certification from Bureau of Treasury.
- Inclusion in annual General Appropriations Act subject to existing budgeting rules.
Legal Provisions
- Separability clause ensuring that if any provision is invalidated, the remainder remains effective.
- Modifications to Section 21 of RA 6657 and repeal/amendment of inconsistent laws or issuances.
Effectivity
- Act takes effect 15 days after publication in the Official Gazette or a newspaper of general circulation.