A House bill condoning the unpaid debt of farmer-beneficiaries of the government’s Comprehensive Agrarian Reform Program (CARP) has been overwhelmingly passed on third and final reading.
Gaining the chamber’s final approval Monday afternoon, Dec. 12 was HB No.6336, or the proposed New Agrarian Emancipation Act. A total of 245 House members voted in the affirmative during nominal voting. There were zero negative votes and one abstention.
The measure us included in the Common Legislative Agenda (CLA) of the Legislative-Executive Development Advisory Council (LEDAC).
Under the proposed law, to be condoned or written off are “unpaid amortizations, interest payments, surcharges, and penalties of existing loans” of agrarian reform beneficiaries (ARBs) secured under CARP or other agrarian reform programs or laws.
The balances of unpaid obligations of ARBs to landowners shall be assumed by Land Bank.
The Department of Agrarian Reform (DAR) shall issue a certificate of condonation to be annotated on the beneficiary’s emancipation patent (EP) or certificate of land ownership award (CLOA), which is the equivalent of a land title.
The condonation shall erase all mortgage liens on EPs and CLOAs in favor of the national government, as represented by Land Bank.
The bill defines the term “agrarian reform beneficiaries” as “farmers or farmworkers who were granted lands under Presidential Decree (PD) No. 27, Republic Act No. 6657 and Republic Act (RA) No.9700, and who have outstanding loan balances payable to the Land Bank of the Philippines".
PD No.27 was the Tenant Emancipation Decree of the late President Ferdinand Marcos Sr. It was issued on Oct. 21, 1972.
RA 6657 was the Comprehensive Agrarian Reform Law of 1988, while RA No.9700 was the legislation extending the acquisition and distribution of agricultural lands under CARP.
HB No. 6336 provides that lands distributed to ARBs under the series of agrarian reform programs “shall not be sold, transferred, or conveyed except through hereditary succession, or to the government or to the Land Bank of the Philippines, or to other qualified beneficiaries through the DAR, for a period of 10 years from the issuance of the certificate of condonation or the CLOA".
Such lands “shall not be subject to conversion or any form of mortgage and encumbrance for a period of 20 years from the issuance of the certificate of condonation or CLOA.”
Lands distributed to ARBs shall be exempt from estate tax. The exemption would apply only to transfers from the beneficiaries to their heirs.
The bill provides that the landowner is entitled to just compensation for the land acquired under CARP. The DAR is mandated to issue implementing rules and regulations.