Urban Development and Housing Act (RA 7279) — BatasKo ELI5

Section 7.

Inventory of Lands.

- Within one (1) year from the effectivity of this Act, all city and municipal governments shall conduct an inventory of all lands and improvements thereon within their respective localities. The inventory shall include the following:

a. Residential lands;

b. Government-owned lands whether owned by the National Government or any of its subdivisions, instrumentalities, or agencies, including government-owned or-controlled corporation and their subsidiaries;

c. Unregistered or abandoned and idle lands; and

d. Other lands.

In conducting the inventory, the local government units concerned, in coordination with the Housing and Land Use Regulatory Board and with the assistance of the appropriate government agencies, shall indicate the type of land use and the degree of land utilization, and other data or information necessary to carry out the purposes of this Act.

For planning purposes, the housing and Urban Development Coordinating Council shall be furnished by each local government unit a copy of its inventory which shall be updated every three (3) years.

Section 8.

Identification of Sites for Socialized Housing.

- After the inventory, the local government units, in coordination with the National Housing Authority, the Housing and Land Use Regulatory Board, the National Mapping Resource Information Authority, and the Land Management Bureau, shall identify lands for socialized housing and resettlement areas for the immediate and future needs of the underprivileged and homeless in the urban areas, taking into consideration the degree of availability of basic services and facilities, their accessibility and proximity to job sites and other economic opportunities, and the actual number of registered beneficiaries.

Government-owned lands under paragraph (b) of the preceding section which have not been used for the purpose for which they have been reserved or set aside for the past ten (10) years from the effectivity of this Act and identified as suitable for socialized housing, shall immediately be transferred to the National Housing Authority subject to the approval of the President of the Philippines or by the local government unit concerned, as the case may be, for proper disposition in accordance with this Act.

Section 9.

Priorities in the Acquisition of Land.

- Lands for socialized housing shall be acquired in the following order:

a. Those owned by the Government or any of its subdivisions, instrumentalities, or agencies, including government-owned or -controlled corporations and their subsidiaries;

b. Alienable lands of the public domain;

c. Unregistered or abandoned and idle Iands;

d. Those within the declared Areas for Priority Development, Zonal Improvement Program sites, and Slum Improvement and Resettlement Program sites which have not yet been acquired;

e. Bagong Lipunan Improvement of Sites and Services or BLISS sites which have not yet been acquired; and

f. Privately-owned lands.

Where on-site development is found more practicable and advantageous to the beneficiaries, the priorities mentioned in this section shall not apply. The local government units shall give budgetary priority to on-site development of government lands.

Section 10.

Modes of Land Acquisition.

- The modes of acquiring lands for purposes of this Act shall include, among others, community mortgage, land swapping, land assembly or consolidation, land banking, donation to the Government, joint-venture agreement, negotiated purchase, and expropriation:

Provided,however,

That expropriation shall be resorted to only when other modes of acquisition have been exhausted:

Provided, further,

That where expropriation is resorted to, parcels of land owned by small property owners shall be exempted for purposes of this Act:

Provided, finally,

That abandoned property, as herein defined, shall be reverted and escheated to the State in a proceeding analogous to the procedure laid down in Rule 91 of the Rules of Court.

For the purpose of socialized housing, government-owned and foreclosed properties shall be acquired by the local government units, or by the National Housing Authority primarily through negotiated purchase:

Provided,

That qualified beneficiaries who are actual occupants of the land shall be given the right of first refusal.

Section 11.

Expropriation of Idle Lands.

- All idle lands in urban and urbanizable areas, as defined and identified in accordance with this Act, shall be expropriated and shall form part of the public domain. These lands shall be disposed of or utilized by the Government for such purposes that conform with their land use plans. Expropriation proceedings shall be instituted if, after the lapse of one (1) year following receipt of notice of acquisition, the owner fails to introduce improvements as defined in Section 3(f) hereof, except in the case of force majeure and other fortuitous events. Exempted from this provision, however, are residential lands owned by small property owners or those the ownership of which is subject of a pending litigation.

Section 12.

Disposition of Lands for Socialized Housing.

- The National Housing Authority, with respect to lands belonging to the National Government, and the local government units with respect to other lands within their respective localities, shall coordinate with each other to formulate and make available various alternative schemes for the disposition of lands to the beneficiaries of the Program. These schemes shall not be limited to those involving transfer of ownership in fee simple but shall include lease, with option to purchase, usufruct or such other variations as the local government units or the National Housing Authority may deem most expedient in carrying out the purposes of this Act.

Consistent with this provision, a scheme for public rental housing may be adopted.

Section 13.

Valuation of Lands for Socialized Housing.

- Equitable land valuation guidelines for socialized housing shall be set by the Department of Finance on the basis of the market value reflected in the zonal valuation, or in its absence, on the latest real property tax declaration.

For sites already occupied by qualified Program beneficiaries, the Department of Finance shall factor into the valuation the blighted status of the land as certified by the local government unit or the National Housing Authority.

Section 14.

Limitations on the Disposition of Lands for Socialized Housing.

- No land for socialized housing, including improvements or rights thereon, shall be sold, alienated, conveyed, encumbered or leased by any beneficiary of this Program except to qualified Program beneficiaries as determined by the government agency concerned.

Should the beneficiary unlawfully sell, transfer, or otherwise dispose of his lot or any right thereon, the transaction shall be null and void. He shall also lose his right to the land, forfeit the total amortization paid thereon, and shall be barred from the benefits under this Act for a period of ten (10) years from the date of violation.

In the event the beneficiary dies before full ownership of the land is vested on him, transfer to his heirs shall take place only upon their assumption of his outstanding obligations. In case of failure by the heirs to assume such obligations, the land shall revert to the Government for disposition in accordance with this Act.

ARTICLE V

SOCIALIZED HOUSING

Section 15.

Policy.

- Socialized housing, as defined in Section 3 hereof, shall be the primary strategy in providing shelter for the underprivileged and homeless. However, if the tenurial arrangement in a particular socialized housing program is in the nature of leasehold or usufruct, the same shall be transitory and the beneficiaries must be encouraged to become independent from the Program within a given period of time, to be determined by the implementing agency concerned.

Section 16.

Eligibility Criteria for Socialized Housing Program Beneficiaries.

- To qualify for the socialized housing program, a beneficiary:

a. Must be a Filipino citizen;

b. Must be an underprivileged and homeless citizen, as defined in Section 3 of this Act;

c. Must not own any real property whether in the urban or rural areas; and

d. Must not be a professional squatter or a member of squatting syndicates.

Section 17.

Registration of Socialized Housing Beneficiaries.

- The Housing and Urban Development Coordinating Council, in coordination with the local government units, shall design a system for the registration of qualified Program beneficiaries in accordance with the Framework. The local government units, within one (1) year from the effectivity of this Act, shall identify and register all beneficiaries within their respective localities.

Section 18.

Balanced Housing Development.

- The Program shall include a system to be specified in the Framework plan whereby developers of proposed subdivision projects shall be required to develop an area for socialized housing equivalent to at least twenty percent (20%) of the total subdivision area or total subdivision project cost, at the option of the developer, within the same city or municipality, whenever feasible, and in accordance with the standards set by the Housing and Land Use Regulatory Board and other existing laws. The balanced housing development as herein required may also be complied with by the developers concerned in any of the following manner:

a. Development of new settlement;

b. Slum upgrading or renewal of areas for priority development either through zonal improvement programs or slum improvement and resettlement programs;

c. Joint-venture projects with either the local government units or any of the housing agencies; or

d. Participation in the community mortgage program.

Section 19.

Incentives for the National Housing Authority.

- The National Housing Authority, being the primary government agency in charge of providing housing for the underprivileged and homeless, shall be exempted from the payment of all fees and charges of any kind, whether local or national, such as income and real taxes. All documents or contracts executed by and in favor of the National Housing Authority shall also be exempt from the payment of documentary stamp tax and registration fees, including fees required for the issuance of transfer certificates of titles.

Section 20.

Incentives for Private Sector Participating in Socialized Housing.

- To encourage greater private sector participation in socialized housing and further reduce the cost of housing units for the benefit of the underprivileged and homeless, the following incentives shall be extended to the private sector:

a. Reduction and simplification of qualification and accreditation requirements for participating private developers;

b. Creation of one-stop offices in the different regions of the country for the processing, approval and issuance of clearances, permits and licenses:

Provided,

That clearances, permits and licenses shall be issued within ninety (90) days from the date of submission of all requirements by the participating private developers;

c. Simplification of financing procedures; and

d. Exemption from the payment of the following:

1. Project-related income taxes;

2. Capital gains tax on raw lands used for the project;

3. Value-added tax for the project contractor concerned;

4. Transfer tax for both raw and completed projects; and

5. Donor's tax for lands certified by the local government units to have been donated for socialized housing purposes.

Provided,

That upon application for exemption, a lien on the title of the land shall be annotated by the Register of Deeds:

Provided, further,

That the socialized housing development plan has already been approved by the appropriate government agencies concerned:

Provided,finally,

That all the savings acquired by virtue of this provision shall accrue in favor of the beneficiaries subject to the implementing guidelines to be issued by the Housing and Urban Development Coordinating Council.

Appropriate implementing guidelines shall be prepared by the Department of Finance, in consultation with the Housing and Urban Development Coordinating Council, for the proper implementation of the tax exemption mentioned in this section within one (1) year after the approval of this Act.

Property owners who voluntarily provide resettlement sites to illegal occupants of their lands shall be entitled to a tax credit equivalent to the actual non-recoverable expenses incurred in the resettlement, subject to the implementing guidelines jointly issued by the Housing and Urban Development Coordinating Council and the Department of Finance.

Section 21.

Basic Services.

- Socialized housing or resettlement areas shall be provided by the local government unit or the National Housing Authority in cooperation with the private developers and concerned agencies with the following basic services and facilities:

a. Potable water;

b. Power and electricity and an adequate power distribution system;

c. Sewerage facilities and an efficient and adequate solid waste disposal system; and

d. Access to primary roads and transportation facilities.

The provision of other basic services and facilities such as health, education, communications, security, recreation, relief and welfare shall be planned and shall be given priority for implementation by the local government unit and concerned agencies in cooperation with the private sector and the beneficiaries themselves.

The local government unit, in coordination with the concerned national agencies, shall ensure that these basic services are provided at the most cost-efficient rates, and shall set a mechanism to coordinate operationally the thrusts, objectives and activities of other government agencies concerned with providing basic services to housing projects.

Section 22.

Livelihood Component.

- To the extent feasible, socialized housing and resettlement projects shall be located near areas where employment opportunities are accessible. The government agencies dealing with the development of livelihood programs and grant of livelihood loans shall give priority to the beneficiaries of the Program.

Section 23.

Participation of Beneficiaries.

- The local government units, in coordination with the Presidential Commission for the Urban Poor and concerned government agencies, shall afford Program beneficiaries or their duly designated representatives an opportunity to be heard and to participate in the decision-making process over matters involving the protection and promotion of their legitimate collective interests which shall include appropriate documentation and feedback mechanisms. They shall also be encouraged to organize themselves and undertake self-help cooperative housing and other livelihood activities. They shall assist the Government in preventing the incursions of professional squatters and members of squatting syndicates into their communities.

In instances when the affected beneficiaries have failed to organize themselves or form an alliance within a reasonable period prior to the implementation of the program or projects affecting them, consultation between the implementing agency and the affected beneficiaries shall be conducted with the assistance of the Presidential Commission for the Urban Poor and the concerned nongovernment organizations.

Section 24.

Consultation with Private Sector.

- Opportunities for adequate consultation shall be accorded to the private sector involved in socialized housing project pursuant to this Act.

ARTICLE VI

AREAS FOR PRIORITY DEVELOPMENT, ZONAL IMPROVEMENT PROGRAM SITES AND SLUM IMPROVEMENT AND RESETTLEMENT PROGRAM SITES

Section 25.

Benefits.

- In addition to the benefits provided under existing laws and other related issuances to occupants of areas for priority development, zonal improvement program sites and slum improvement and resettlement program sites, such occupants shall be entitled to priority in all government projects initiated pursuant to this Act. They shall also be entitled to the following support services:

a. Land surveys and titling at minimal cost;

b. Liberalized terms on credit facilities and housing loans and one hundred percent (100%) deduction from every homebuyer's gross income tax of all interest payments made on documented loans incurred for the construction or purchase of the homebuyer's house;

c. Exemption from the payment of documentary stamp tax, registration fees, and other fees for the issuance of transfer certificate of titles;

d. Basic services as provided for in Section 21 of this Act; and

e. Such other benefits that may arise from the implementation of this Act.

ARTICLE VII

URBAN RENEWAL AND RESETTLEMENT

Section 26.

Urban Renewal and Resettlement.

- This shall include the rehabilitation and development of blighted and slum areas and the resettlement of Program beneficiaries in accordance with the provisions of this Act. On-site development shall be implemented whenever possible in order to ensure minimum movement of occupants of blighted lands and slum areas. The resettlement of the beneficiaries of the Program from their existing places of occupancy shall be undertaken only when on-site development is not feasible and after compliance with the procedures laid down in Section 28 of this Act.

Section 27.

Action Against Professional Squatters and Squatting Syndicates.

- The local government units, in cooperation with the Philippine National Police, the Presidential Commission for the Urban Poor (PCUP), and the PCUP-accredited urban poor organization in the area, shall adopt measures to identify and effectively curtail the nefarious and illegal activities of professional squatters and squatting syndicates, as herein defined.

Any person or group identified as such shall be summarily evicted and their dwellings or structures demolished, and shall be disqualified to avail of the benefits of the Program. A public official who tolerates or abets the commission of the abovementioned acts shall be dealt with in accordance with existing laws.

For purposes of this Act, professional squatters or members of squatting syndicates shall be imposed the penalty of six (6) years imprisonment or a fine of not less than Sixty thousand pesos (P60,000) but not more than One hundred thousand pesos (P100,000), or both, at the discretion of the court.

Section 28.

Eviction and Demolition.

- Eviction or demolition as a practice shall be discouraged. Eviction or demolition, however, may be allowed under the following situations:

a. When persons or entities occupy danger areas such as esteros, railroad tracks, garbage dumps, riverbanks, shorelines, waterways, and other public places such as sidewalks, roads, parks, and playgrounds;

b. When government infrastructure projects with available funding are about to be implemented; or

c. When there is a court order for eviction and demolition.

In the execution of eviction or demolition orders involving underprivileged and homeless citizens, the following shall be mandatory:

1. Notice upon the affected persons or entities at least thirty (30) days prior to the date of eviction or demolition;

2. Adequate consultations on the matter of resettlement with the duly designated representatives of the families to be resettled and the affected communities in the areas where they are to be relocated;

3. Presence of local government officials or their representatives during eviction or demolition;

4. Proper identification of all persons taking part in the demolition;

5. Execution of eviction or demolition only during regular office hours from Mondays to Fridays and during good weather, unless the affected families consent otherwise;

6. No use of heavy equipment for demolition except for structures that are permanent and of concrete materials;

7. Proper uniforms for members of the Philippine National Police who shall occupy the first line of law enforcement and observe proper disturbance control procedures; and

8. Adequate relocation, whether temporary or permanent:

Provided, however,

That in cases of eviction and demolition pursuant to a court order involving underprivileged and homeless citizens, relocation shall be undertaken by the local government unit concerned and the National Housing Authority with the assistance of other government agencies within forty-five (45) days from service of notice of final judgment by the court, after which period the said order shall be executed:

Provided, further,

That should relocation not be possible within the said period, financial assistance in the amount equivalent to the prevailing minimum daily wage multiplied by sixty (60) days shall be extended to the affected families by the local government unit concerned.

The Department of the Interior and Local Government and the Housing and Urban Development Coordinating Council shall jointly promulgate the necessary rules and regulations to carry out the above provision.

Section 29.

Resettlement.

- Within two (2) years from the effectivity of this Act, the local government units, in coordination with the National Housing Authority, shall implement the relocation and resettlement of persons living in danger areas such as esteros, railroad tracks, garbage dumps, riverbanks, shorelines, waterways, and other public places such as sidewalks, roads, parks, and playgrounds. The local government unit, in coordination with the National Housing Authority, shall provide relocation or resettlement sites with basic services and facilities and access to employment and livelihood opportunities sufficient to meet the basic needs of the affected families.

Section 30.

Prohibition Against New Illegal Structures.

- It shall be unlawful for any person to construct any structure in areas mentioned in the preceding section.

After the effectivity of this Act, the barangay, municipal or city government units shall prevent the construction of any kind of illegal dwelling units or structures within their respective localities. The head of any local government unit concerned who allows, abets or otherwise tolerates the construction of any structure in violation of this section shall be liable to administrative sanctions under existing laws and to penal sanctions provided for in this Act.

ARTICLE VIII

COMMUNITY MORTGAGE PROGRAM

Section 31.

Definition.

- The Community Mortgage Program (CMP) is a mortgage financing program of the National Home Mortgage Finance Corporation which assists legally organized associations of underprivileged and homeless citizens to purchase and develop a tract of land under the concept of community ownership. The primary objective of the program is to assist residents of blighted or depressed areas to own the lots they occupy, or where they choose to relocate to, and eventually improve their neighborhood and homes to the extent of their affordability.

Section 32.

Incentives.

- To encourage its wider implementation, participants in the CMP shall be granted with the following privileges or incentives:

a. Government-owned or-controlled corporations and local government units, may dispose of their idle lands suitable for socialized housing under the CMP through negotiated sale at prices based on acquisition cost plus financial carrying costs;

b. Properties sold under the CMP shall be exempted from the capital gains tax; and

c. Beneficiaries under the CMP shall not be evicted nor dispossessed of their lands or improvements unless they have incurred arrearages in payments of amortization for three (3) months.

Section 33.

Organization of Beneficiaries.

- Beneficiaries of the Program shall be responsible for their organization into associations to manage their subdivisions or places of residence, to secure housing loans under existing Community Mortgage Program and such other projects beneficial to them. Subject to such rules and regulations to be promulgated by the National Home Mortgage Finance Corporation, associations organized pursuant to this Act may collectively acquire and own lands covered by this Program. Where the beneficiaries fail to form an association by and among themselves, the National Home Mortgage Finance Corporation shall initiate the organization of the same in coordination with the Presidential Commission for the Urban Poor and the local government units concerned. No person who is not a bona fide resident of the area shall be a member or officer of such association.

ARTICLE IX

RELATED STRATEGIES

Section 34.

Promotion of Indigenous Housing Materials and Technologies.

- The local government units, in cooperation with the National Housing Authority, Technology and Livelihood Resource Center, and other concerned agencies, shall promote the production and use of indigenous, alternative, and low-cost construction materials and technologies for socialized housing.

Section 35.

Transport System.

- The local government units, in coordination with the Departments of Transportation and Communications, Budget and Management, Trade and Industry, Finance, and Public Works and Highways, the Home Insurance Guaranty Corporation, and other concerned government agencies, shall device a set of mechanisms including incentives to the private sector so that a viable transport system shall evolve and develop in the urban areas. It shall also formulate standards designed to attain these objectives:

a. Smooth flow of traffic;

b. Safety and convenience of travel;

c. Minimum use of land space;

d. Minimum damage to the physical environment; and

e. Adequate and efficient transport service to the people and goods at minimum cost.

Section 36.

Ecological Balance.

- The local government units shall coordinate with the Department of Environment and Natural Resources in taking measures that will plan and regulate urban activities for the conservation and protection of vital, unique and sensitive ecosystems, scenic landscapes, cultural sites and other similar resource areas.

To make the implementation of this function more effective, the active participation of the citizenry in environmental rehabilitation and in decision-making process shall be promoted and encouraged. The local government units shall recommend to the Environmental and Management Bureau the immediate closure of factories, mines and transport companies which are found to be causing massive pollution.

Section 37.

Population Movements.

- The local government units shall set up an effective mechanism, together with the appropriate agencies like the Population Commission, the National Economic and Development Authority and the National Statistics Office, to monitor trends in the movements of population from rural to urban, urban to urban, and urban to rural areas. They shall identify measures by which such movements can be influenced to achieve balance between urban capabilities and population, to direct appropriate segments of the population into areas where they can have access to opportunities to improve their lives and to contribute to national growth and recommend proposed legislation to Congress, if necessary.

The Population Commission, the National Economic and Development Authority, and the National Statistics Office shall likewise provide advanced planning information to national and local government planners on population projections and the consequent level of services needed in particular urban and urbanizable areas. This service will include early-warning systems on expected dysfunctions in a particular urban area due to population increases, decreases, or age structure changes.

Section 38.

Urban-rural Interdependence. - To minimize rural to urban migration and pursue urban decentralization, the local government units shall coordinate with the National Economic and Development Authority and other government agencies in the formulation of national development programs that will stimulate economic growth and promote socioeconomic development in the countryside.

ARTICLE X

PROGRAM IMPLEMENTATION

Section 39.

Role of Local Government Units.

- The local government units shall be charged with the implementation of this Act in their respective localities, in coordination with the Housing and Urban Development Coordinating Council, the national housing agencies, the Presidential Commission for the Urban Poor, the private sector and other nongovernment organizations.

They shall prepare a comprehensive land use plan for their respective localities in accordance with the provisions of this Act.

Section 40.

Role of Government Housing Agencies.

- In addition to their respective existing powers and functions, and those provided for in this Act, the hereunder mentioned housing agencies shall perform the following:

a. The Housing and Urban Development Coordinating Council shall, through the key housing agencies, provide local government units with necessary support such as:

1. Formulation of standards and guidelines as well as providing technical support in the preparation of town and land use plans;

2. In coordination with the National Economic and Development Authority and the National Statistics Office, provide data and information for forward-planning by the local government units in their areas, particularly on projections as to the population and development trends in their localities and the corresponding investment programs needed to provide appropriate types and levels of infrastructure, utilities, services and land use patterns; and

3. Assistance in obtaining funds and other resources needed in the urban development and housing programs in their areas of responsibility.

b. The National Housing Authority, upon request of local government units, shall provide technical and other forms of assistance in the implementation of their respective urban development and housing programs with the objective of augmenting and enhancing local government capabilities in the provision of housing benefits to their constituents;

c. The National Home Mortgage Finance Corporation shall administer the Community Mortgage Program under this Act and promulgate rules and regulations necessary to carry out the provisions of this Act; and

d. The Home Insurance Guaranty Corporation shall design an appropriate guarantee scheme to encourage financial institutions to go into direct lending for housing.

Section 41.

Annual Report.

- The Housing and Urban Development Coordinating Council and the local government units shall submit a detailed annual report with respect to the implementation of this Act to the President and the Congress of the Republic of the Philippines.

ARTICLE XI

FUNDING

Section 42.

Funding.

- Funds for the urban development and housing program shall come from the following sources:

a. A minimum of fifty percent (50%) from the annual net income of the Public Estates Authority, to be used by the National Housing Authority to carry out its programs of land acquisition for resettlement purposes under this Act;

b. Proceeds from the disposition of ill-gotten wealth, not otherwise previously set aside for any other purpose, shall be applied to the implementation of this Act and shall be administered by the National Home Mortgage Finance Corporation;

c. Loans, grants, bequests and donations, whether from local or foreign sources;

d. Flotation of bonds, subject to the guidelines to be set by the Monetary Board;

e. Proceeds from the social housing tax and, subject to the concurrence of the local government units concerned, idle lands tax as provided in Section 236 of the Local Government Code of 1991 and other existing laws;

f. Proceeds from the sale or disposition of alienable public lands in urban areas; and

g. Domestic and foreign investment or financing through appropriate arrangements like the build-operate-and-transfer scheme.

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Section 43.

Socialized Housing Tax.

- Consistent with the constitutional principle that the ownership and enjoyment of property bear a social function and to raise funds for the Program, all local government units are hereby authorized to impose an additional one-half percent (0.5%) tax on the assessed value of all lands in urban areas in excess of Fifty thousand pesos (P50,000).

ARTICLE XII

TRANSITORY PROVISIONS

Section 44.

Moratorium on Eviction and Demolition.

- There shall be a moratorium on the eviction of all program beneficiaries and on the demolition of their houses or dwelling units for a period of three (3) years from the effectivity of this Act:

Provided,

That the moratorium shall not apply to those persons who have constructed their structures after the effectivity of this Act and for cases enumerated in Section 28 hereof.

ARTICLE XIII

COMMON PROVISIONS

Section 45.

Penalty Clause.

- Any person who violates any provision of this Act shall be imposed the penalty of not more than six (6) years of imprisonment or a fine of not less than Five thousand pesos (P5,000) but not more than One hundred thousand pesos (P100,000), or both, at the discretion of the court:

Provided,

That, if the offender is a corporation, partnership, association or other juridical entity, the penalty shall be imposed on the officer or officers of said corporation, partnership, association or juridical entity who caused the violation.

Section 46.

Appropriations.

- The amount necessary to carry out the purposes of this Act shall be included in the annual budget of implementing agencies in the General Appropriations Act of the year following its enactment into law and every year thereafter.

Section 47.

Separability Clause

. - If for any reason, any provision of this Act is declared invalid or unconstitutional, the remaining provisions not affected thereby shall continue to be in full force and effect.

Section 48.

Repealing Clause

. - All laws, decrees, executive orders, proclamations, rules and regulations, and other issuances, or parts thereof which are inconsistent with the provisions of this Act, are hereby repealed or modified accordingly.

Section 49.

Effectivity Clause.

- This Act shall take effect upon its publication in at least two (2) national newspapers of general circulation.

Approved,

(Sgd.)

NEPTALI A. GONZALES

President of the Senate

(Sgd.)

RAMON V. MITRA

Speaker of the House of Representatives

This Act which is a consolidation of House Bill No. 34310 and Senate Bill No. 234 was finally passed by the House of Representatives and the Senate on February 3, 1992.

(Sgd.)

ANACLETO D. BADOY, JR.

Secretary of the Senate

(Sgd.)

CAMILO L. SABIO

Secretary General House of Representatives

Approved: March 24, 1992

(Sgd.)

CORAZON C. AQUINO

President of the Philippines

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