Sale and Lease of Penal Farm Lands Act

Section 1 authorizes the Governor-General to authorize the sale or lease when, in his opinion, the public interests will be promoted.
The sale or lease must be carried out under the public land laws or Act Numbered Three thousand and thirty-eight.
The lands and improvements covered by Section 1 are those of the San Ramon Prison and Penal Farm and the Iwahig Penal Farm.
The authorized transferees under Section 1 are private individuals, associations, or corporations.
Section 1 treats both sale and lease as permitted instruments for transferring the covered lands, buildings, and improvements.

Section 2 directs the Secretary of Agriculture and Natural Resources to subdivide the San Ramon Prison and Penal Farm and the Iwahig Penal Colony lands into lots.
Each lot must be not exceeding one hundred hectares under Section 2.
Section 2 authorizes the Secretary to sell or lease both (1) the subdivided lots and (2) the buildings and improvements on the San Ramon and Iwahig farms and colony lands.
Section 2 prohibits any single individual, association, or corporation from buying or leasing directly or indirectly more than one lot.
Section 2 requires that applications for smaller lots receive preference over applications for bigger lots.
Section 2 allows payment to be made in cash or in instalments for a period not exceeding ten years.

Section 3 authorizes the Secretary of Justice to establish new prisons and penal farms.
The Secretary may establish them on public lands reserved from time to time by the Governor-General for that purpose.
Section 3 appropriates PHP 500,000 from the Insular Treasury to carry out the purposes of establishing new prisons and penal farms.
Section 3 specifies that the appropriation covers compensation of additional personnel, the purchase of equipment and furniture, and other necessary miscellaneous expenses.
Under Section 3, the sums appropriated shall be expended by the Director of Prisons with the approval of the Secretary of Justice.

Section 3 imposes a funding/entry condition: no part of the PHP 500,000 appropriation shall be set up on the books of the Insular Auditor until it is necessary to make the payment or payments authorized by the Act.