Law Summary
Permits, Contracts, and Leases
- No person may occupy or use released public lands for fishpond development without securing proper authorization.
- Types of authorization include Gratuitous Permit (GP) for scientific/research purposes, Aquaculture Stewardship Contract (ASC) for mangrove-friendly aquaculture, and Fishpond Lease Agreement (FLA) for developed fishpond operations.
Grantable Areas and Eligible Applicants
- ASC areas: up to 50 hectares for cooperatives, associations, or MSMEs.
- FLA areas: up to 25 hectares for individuals; up to 50 hectares for corporations.
- GPs: up to 25 hectares for government or research institutions.
- Applicants must meet qualifications including residency, endorsements, financial capacity, and adherence to aquaculture practices.
Application Procedures
- Applications filed with the Bureau of Fisheries regional or provincial offices.
- A non-refundable application fee of P2,000 is required.
- Complete initial requirements necessary for acceptance.
- Applications assigned serial numbers and recorded.
- Priority given to first applicants and qualified fisherfolk cooperatives or MSMEs.
Period and Renewal of Permits, Contracts, and Leases
- GPs valid for five years, renewable once.
- ASCs valid for ten years, renewable once.
- FLAs valid for twenty-five years, renewable once, maximum of fifty years total.
Conditions Governing Permits, Contracts, and Leases
- No title or ownership conferred over public lands.
- Permit holders must comply with current and future fisheries laws and regulations.
- Authorization confers surface rights only; removal of forest products requires separate authority.
- Annual rentals set to reflect resource rent; adjustments based on scientific studies every five years.
- No subleasing or unauthorized transfer.
- Permits, contracts or leases subject to inspection and free access by officials.
Fees, Rentals, and Bond Requirements
- Annual rental rates escalated from P1,000 to P1,500 per hectare from 2013, with separate rate for mangrove areas.
- Rental payments due by last working day of February annually.
- Cash bond deposit required before issuance at P500 per hectare to guarantee compliance.
- Failure to pay rental triggers escalating surcharges; discounts available for early payment.
- Cash bond forfeitable upon violation or cancellation.
Rights, Obligations, and Prohibitions of Permit Holders
- Operations limited to authorized uses; posting of signage required.
- Environmental safeguards required, including facilities to prevent pollution.
- Commercial scale production targets specified with graduated yearly quotas.
- Prohibition on subleasing and unauthorized assignment, except with approval.
- Reporting requirements include initial and annual verified reports on development and production.
- Incentive plan mandated for regular workers compensating 7.5% of net profits.
- Obligation to undertake reforestation where applicable.
Assignment and Transfer of Contract or Lease Rights
- Transfers allowed only under strict conditions, including minimum five years tenure and prior approval.
- Transferees assume remaining term without exceeding fifty year maximum.
- Detailed documentation and fees required for transfers.
Grounds and Procedures for Cancellation
- Cancellation grounds include violations of terms, abandonment, underutilization, nonpayment, fraudulent applications, and failure to report.
- Formal procedure involving Notice of Violation, opportunity to answer, ocular inspections, and Hearing Officer adjudication.
- Decisions subject to motions for reconsideration and appeal to Secretary.
- Cancellation orders require forfeiture of cash bonds and improvements to government.
Enforcement and Appeals
- Cancellation procedures involve sequential review by Hearing Officers, Regional Director, Director, and Secretary.
- Final orders enforced through Writ of Execution with help from local authorities.
- Procedural safeguards include docketing, service, and timelines for decisions and appeals.
Miscellaneous Provisions
- Improvements become government property upon expiration or cancellation, with provisions for sale to settle unpaid dues.
- Illegal occupation or improvements liable to prosecution for mangrove conversion alongside other charges.
- Special provisions for foreclosed leases involving financial institutions.
- Adverse claims or protests must be filed within thirty days.
- Separability, repealing existing inconsistent orders, and effectivity clauses included.
This comprehensive legal framework governs the lease, use, and management of public lands for fishpond and mangrove-friendly aquaculture, emphasizing sustainable practices, community participation, environmental protection, and regulatory compliance.