Requirement for Lease or Permit
- Prohibits occupation or use of pasture lands without a valid lease or permit.
- Such lease or permit must be obtained from the Director of Forestry.
Jurisdiction and Authority
- The Bureau of Forestry oversees administration, protection, and management of pasture lands.
- Authority to grant leases or permits to:
- Filipino citizens of lawful age.
- Corporations or associations with at least 60% Filipino ownership and organized under Philippine law.
- Lease limitations:
- Maximum area: 2,000 hectares.
- Lease term: up to 25 years, renewable once for another 25 years subject to improvement conditions.
Rulemaking Power
- The Director of Forestry, with the approval of the Secretary of Agriculture and Commerce, shall issue rules and regulations to implement the Act.
Land Classification and Investigation
- All applied parcels for grazing are subject to investigation by the Bureau of Forestry.
- If lands are found within certified alienable or disposable lands suitable for grazing, Bureau of Forestry may request reclassification to public forest land.
- Post reversion, Bureau of Forestry manages disposition under this Act.
Transitional Provisions for Existing Leases
- Existing pasture leases by the Bureau of Lands remain valid until expiration.
- Upon expiration or cancellation, land reverts to public forest land and disposition falls under Bureau of Forestry per this Act.
- Pending applications with Bureau of Lands are to be transferred to Bureau of Forestry.
Rental Fees and Appraisal
- Annual rental must be no less than 3% of the appraised/reappraised land value plus 1% of improvements.
- Appraisals are conducted by the Director of Forestry with approval of the Secretary of Agriculture and Commerce.
- For leases exceeding 10 years, reappraisal may be conducted every 5 years.
- Assistance from provincial treasurers or assessors may be solicited.
Security Bond Requirements
- Applicants may be required to post a security bond as evidence of good faith and compliance.
- Acceptable bonds include cash, Philippine National Bank bonds, government bonds, or surety company bonds (with increased amount).
- Bond amount determined by the Director of Forestry with Secretary approval.
- Government may confiscate bond upon violation of lease terms.
Auction or Bidding Procedure
- Lease agreements may be granted through sealed bidding after thorough investigation.
- Bids must include payment for at least first three months’ rental.
- Minimum bid rental rates set at 3% of land value plus 1% of improvements, consistent with rental provisions.
Ownership of Improvements
- Upon lease or permit expiration, all immovable and permanent improvements on the land become government property.
Penalties for Unauthorized Use
- Unauthorized occupants or users must pay double the regular rental for the period of illegal use.
- Failure to pay within 30 days incurs an additional 50% charge on such rental.
Effectivity
- The Act takes effect immediately upon its approval on June 8, 1939.