MEMORANDUM CIRCULAR NO. 54
MEMORANDUM CIRCULAR NO. 54 -
PRESCRIBING THE GUIDELINES GOVERNING Sec. 20 OF RA 7160 OTHERWISE
KNOWN AS THE LOCAL GOVERNMENT CODE OF 1991 AUTHORIZING CITIES AND
MUNICIPALITIES TO RECLASSIFY AGRICULTURAL LANDS INTO NON-AGRICULTURAL
USES
WHEREAS, RA 7160, otherwise known as the
Local Government Code of 1991 (LGC), provides that cities and
municipalities may reclassify agricultural lands into non-agricultural
uses within their respective jurisdictions, subject to the limitations
and other conditions prescribed under Sec. 20 of the LGC;
WHEREAS, the implementing Rules and Regulations (IRR) of the LGC
provides that cities and municipalities shall continue to prepare their
respective comprehensive land use plans, enacted through zoning
ordinances, subject to applicable laws and rules and regulations;
WHEREAS, the IRR also prescribes that such plans shall serve as the
primary and dominant bases for future use of land resources and
reclassification of agricultural lands;
WHEREAS, the IRR further provides that the requirements for food
production, human settlements, ecological balance, and industrial
expansion shall be considered in the preparation of comprehensive land
use plans;
WHEREAS, EO 129-A, s. of 1987, mandates the Department of Agrarian
Reform (DAR) to approve or disapprove the conversion, restructuring or
readjustment of agricultural lands into non-agricultural uses;
WHEREAS, the said EO has also vested in DAR exclusive authority to
approve or disapprove conversion of agricultural lands for residential,
commercial, industrial, and other land uses;
WHEREAS, Sec. 65 of RA 6657, otherwise known as the Comprehensive
Agrarian Reform Law of 1988 (CARL), likewise empowers DAR to authorize,
under certain conditions, the reclassification or conversion of lands
awarded to agrarian reform beneficiaries;
WHEREAS, pursuant to the pertinent provisions of EO 129-A (1987), EO
229 (1987), and RA 6657, DAR issued various rules and regulations
governing the conversion or reclassification of agricultural lands into
non-agricultural uses;
WHEREAS, there is a need to harmonize the provisions of Sec. 20 of
the LGC with those of EO 129-A (1987), EO 229 (1987), RA 6657, and
other national policy issuances and other pertinent laws to ensure a
more rational and holistic approach to land use, taking into account
the objectives of the CARL and the decentralized framework of local
governance;
NOW, THEREFORE, I, FIDEL V. RAMOS, President of the Philippines, by
virtue of the powers vested in me by law, upon the recommendation of
the Oversight Committee created under Sec. 533 of the LGC, do hereby
order and direct:
Section 1. Scope and limitations. — (a) Cities and
municipalities with comprehensive land use plans reviewed and approved
in accordance with EO 72 (1993), may authorize the reclassification of
agricultural lands into non-agricultural uses and provide for the
manner of their utilization or disposition, subject to the limitations
and other conditions prescribed in this Order.
(b) Agricultural lands may be reclassified in the
following cases:
(1)
when the land ceases to be economically feasible and sound for
agricultural purposes as determined by the Department of Agriculture
(DA), in accordance with the standards and guidelines prescribed for
the purpose; or
(2) where the
land shall have substantially greater economic value for residential,
commercial, or industrial purposes as determined by the sanggunian
concerned, the city/municipality concerned should notify the DA, HLRB,
DTI, DOT and other concerned agencies on the proposed reclassification
of agricultural lands furnishing them copies of the report of the local
development council including the draft ordinance on the matter for
their comments, proposals and recommendations within seven (7) days
upon receipt.
(c) However, such reclassification shall be limited
to a maximum of the percentage of the total agricultural land of a city
or municipality at the time of the passage of the ordinance as follows:
(1)
For highly urbanized and independent component cities, fifteen percent
(15%);
(2) For
component cities and first to third class municipalities, ten percent
(10%); and
(3) For fourth
to sixth class municipalities, five percent (5%).
(d) In addition, the following. types of agricultural
lands shall not be covered by the said reclassification:
(1)
Agricultural lands distributed to agrarian reform beneficiaries subject
to Sec. 65 of RA 6657;
(2)
Agricultural lands already issued a notice of coverage or voluntarily
offered for coverage under CARP.
(3)
Agricultural lands identified under AO 20, s. of 1992, as
non-negotiable for conversion as follows:
(i)
All irrigated lands where water is available to support rice and other
crop production;
(ii) All
irrigated lands where water is not available for rice and other crop
production but within areas programmed for irrigation facility
rehabilitation by DA and National Irrigation Administration (NIA); and
(iii) All
irrigable lands already covered by irrigation projects with firm
funding commitments at the time of the application for land conversion
or reclassification.
(e) The President may, when public interest so
requires and upon recommendation of the National Economic Development
Authority (NEDA), authorize a city or municipality to reclassify lands
in excess of the limits set in paragraph (d) hereof. For this purpose,
NEDA is hereby directed to issue the implementing guidelines governing
the authority of cities and municipalities to reclassify lands in
excess of the limits prescribed herein.
Sec. 2. Requirements and procedures for
reclassification. — (a) The city or municipal development council
(CDC/MDC) shall recommend to the sangguniang panlungsod or sangguniang
bayan, as the case may be, the reclassification of agricultural lands
within its jurisdiction based on the requirements of local development.
(b) Prior to the enactment of an ordinance
reclassifying agricultural lands as provided under Sec. 1 hereof, the
sanggunian concerned must first secure the following certificates from
the concerned national government agencies (NGAs):
(1)
A certification from DA indicating —
(i)
the total area of existing agricultural lands in the LGU concerned;
(ii) that such
lands are not classified as non-negotiable for conversion or
reclassification under AO 20 (1992); and
(iii) that the
land ceases to be economically feasible and sound for agricultural
purposes in the case of Sec. 1 (b-1).
(2) A
certification from DAR indicating that such lands are not distributed
or not covered by a notice of coverage or not voluntarily offered for
coverage under CARP.
(c) The HLRB shall serve as the coordinating agency
for the issuance of the certificates as required under the preceding
paragraph. All applications for reclassification shall, therefore, be
submitted by the concerned LGUs to the HLRB, upon receipt of such
application, the HLRB conduct initial review to determine
if:
(1)
the city or municipality concerned has an existing comprehensive land
use plan reviewed and approved in accordance with EO 72 (1993); and
(2) the
proposed reclassification complies with the limitations prescribed in
SECTION 1 (d) hereof.
Upon determination that the above conditions have been satisfied, the
HLRB shall then consult with the concerned agencies on the required
certifications. The HLRB shall inform the concerned agencies, city or
municipality of the result of their review and consultation. If the
land being reclassified is in excess of the limit, the application
shall be submitted to NEDA.
Failure of the HLRB and the NGAs to act on a proper and complete
application within three months from receipt of the same shall be
deemed as approved thereof.
(d) Reclassification of agricultural lands may be
authorized through an ordinance enacted by the sangguniang panlungsod
or sangguniang bayan, as the case may be, after conducting public
hearings for the purpose. Such ordinance shall be enacted and approved
in accordance with Articles 107 and 108 of the IRR of the LGC;
(e) Provisions of Sec. 1 (b-2) hereof to the contrary
notwithstanding, the sanggunian concerned shall seek the advice of DA
prior to the enactment of an ordinance reclassifying agricultural
lands. If the DA has failed to act on such request within thirty (30)
days from receipt thereof, the same shall be deemed to have been
complied with. Should the land subject to reclassification is found to
be still economically feasible for agriculture, the DA shall recommend
to the LGU concerned alternative areas for development purposes.
(f) Upon issuance of the certifications enumerated in
Sec. 2 (b) hereof, the sanggunian concerned may now enact an
ordinance authorizing the reclassification of agricultural lands and
providing for the manner their utilization or disposition. Such
ordinance shall likewise update the comprehensive land use plans of the
LGU concerned.
Sec. 3. Review of ordinances reclassifying
agricultural lands. — All ordinances authorizing the reclassification
of agricultural lands shall be subject to the review and approval by
the province in the case of component city or municipality, or by HLRB
in the case of a highly urbanized or independent component city in
accordance with EO 72 (1993).
Sec. 4. Use of the comprehensive land use plans
and ordinances as primary reference documents in land use conversions.
— Pursuant to RA 6657 and EO 129-A, actions on applications for land
use conversions on individual landholdings shall remain as the
responsibility of DAR, which shall utilize as its primary reference
documents the comprehensive land use plans and accompanying ordinance
passed upon and approved by the LGUs concerned, together with the
National Land Use Policy.
Sec. 5. Monitoring and evaluation of land
reclassification by LGUs concerned. — Within six (6) months from the
issuance of this Order, the HLRB shall design, in coordination with DA,
DAR, Department of the Interior and Local Government (DILG), NEDA,
League of Provinces, League of Cities and League of Municipalities, and
install a monitoring and evaluation system for the reclassification of
agricultural lands authorized by cities and municipalities.
The HLRB shall submit semestral reports to the Office of the President.
A copy thereof shall be furnished the DA, DAR, DILG, NEDA, League of
Provinces, League of Cities, and League of Municipalities.
Sec. 6. Transitory provision. — Provisions of
Secs. 1 (a) and 2 (b) to the contrary notwithstanding, cities and
municipalities with land use plans approved not earlier than 01 January
1989, may authorize the reclassification of agricultural lands in
accordance with the limitations and conditions prescribed in this
Order. However, when the LGU has not reclassified up to the said
limitations, further reclassification may be exercised only within five
years from the approval of the plan. Thereafter, all reclassifications
shall require approval from the President pursuant to Sec. 1 (e) of
this Circular.
Sec. 7. Effectivity. — This Circular shall take
effect immediately.
DONE in the City of Manila,
this 8th day of June, in the year of Our Lord, nineteen hundred and
ninety-three.
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Since 19.07.98.