AN ACT CREATING THE LAGUNA LAKE DEVELOPMENT AUTHORITY PRESCRIBING ITS POWERS
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AN ACT CREATING THE LAGUNA LAKE DEVELOPMENT AUTHORITY PRESCRIBING ITS POWERS
Republic Act No. 4850
July 18, 1966
Case Overview and Summary
Summary of Republic Act No. 4850 (Laguna Lake Development Authority Act of 1966):Declaration of Policy and Creation of Authority:
- Declares the national policy to promote and accelerate the development and balanced growth of the Laguna Lake area and surrounding provinces, cities, and towns (the "region"), with due regard for environmental management, preservation of quality of life, and prevention of ecological disturbances. (Section 1)
- Creates the Laguna Lake Development Authority (the "Authority") as a body corporate to carry out the declared policy. (Section 2)
- The Authority shall maintain its principal office within the region. (Section 3)
Special Powers and Functions of the Authority:
- To conduct a comprehensive survey of the region's resources and conditions, and draft a plan for optimal resource utilization and rapid socio-economic development, subject to NEDA approval. (Section 4(a))
- To provide planning, management, and technical assistance to investors in the region. (Section 4(b))
- To make recommendations on financing, support, and priority levels for projects in the region. (Section 4(c))
- To approve or disapprove plans, programs, and projects within the region related to the Authority's development plans, and issue necessary clearances. (Section 4(d))
- To engage in agriculture, industry, commerce, or other activities necessary for the region's socio-economic development, including organizing subsidiary corporations. (Section 4(e))
- To plan, program, finance, or undertake infrastructure projects within the context of its development plans, and collect fees and tolls from users/beneficiaries. (Section 4(f))
- To make annual reports to stockholders and other required reports. (Section 4(g))
- To lend or facilitate financial assistance and act as surety or guarantor to worthwhile enterprises. (Section 4(h))
- To reclaim portions of the lake or acquire land necessary for the Authority's aims, subject to NEDA approval. (Section 4(i))
- To engage in fish production and aquaculture projects in Laguna de Bay and other bodies of water, and conduct studies and experiments to improve techniques. (Section 4(j))
- To issue new permits for use of lake waters, impose safeguards for lake quality control and management, and collect necessary fees, subject to approval by the President. (Section 4(k))
- To require cities and municipalities within the region to pass necessary zoning ordinances and regulatory measures. (Section 4(l))
- To exercise water rights over public waters within the region when necessary for the Authority's projects. (Section 4(m))
- To establish water quality standards for waste discharges into the lake, and enforce such standards or pursue penalty actions. (Section 4(n))
- To develop water supply from ground and/or lake water resources, and enter into agreements to supply, distribute, and market such water. (Section 4(o))
- To undertake studies on improving and maintaining desirable lake water quality, and prepare a water quality management program. (Section 4(p))
- The Authority shall be awarded compensation for damages to the water and aquatic resources resulting from failure to meet established standards or other wrongful acts. (Section 4-A)
- The Authority is empowered to collect annual fees for the use of lake waters and tributaries, subject to approval by the President. (Section 4-B)
Corporate Powers:
- The Authority shall have the powers to sue and be sued, adopt and use a corporate seal, enter into contracts, acquire and dispose of property, exercise eminent domain, borrow funds, invest in securities, and perform acts necessary to attain its objectives. (Section 5)
- The Authority shall issue rules and regulations to carry out its powers and purposes, subject to NEDA approval. (Section 5(k))
Capitalization and Financing:
- The Authority shall have an authorized capital of ₱100,000,000, with the national government subscribing ₱51,000,000 and cities, provinces, municipalities, government corporations, and private investors subscribing ₱49,000,000. (Section 6)
- The capital stock shall be divided into 700,000 common (voting) shares and 300,000 preferred (non-voting) shares. (Section 6)
- Municipal corporations are authorized to subscribe, own, buy, and hold shares of the Authority. (Section 7)
- ₱1,000,000 is appropriated annually for five years from the national government's general fund for the Authority's operating expenses. (Section 8)
- The Authority may incur indebtedness or issue bonds, subject to approval by the NEDA Board and the President. (Section 9)
- The Authority and its subsidiary corporations shall be exempt from taxes, licenses, fees, and duties for the first five years, with a graduated scale of taxation thereafter. (Section 12)
- A sinking fund shall be established to redeem bonds at maturity. (Section 13)
- The Republic of the Philippines guarantees the payment of principal and interest on bonds issued by the Authority. (Section 14)
Management and Personnel:
- The corporate powers shall be vested in and exercised by a Board of Directors composed of eight members, including representatives from government agencies, Laguna and Rizal provinces, and private investors. (Section 16)
- The Board shall elect a Chairman and Vice Chairman annually from among its members. (Section 16)
- Provisions on vacancies, quorum, qualifications, conflict of interest, removal, and meetings of the Board. (Sections 20-24)
- Board members shall receive per diems and allowances, subject to specified limits. (Section 25)
- Powers and functions of the Board of Directors. (Section 25-A)
- Powers and functions of the General Manager as the chief executive of the Authority. (Section 26)
- The General Manager shall be assisted by an Assistant General Manager and various divisions (Administrative, Legal, Finance, Project Management, Planning and Project Development, Engineering and Construction). (Section 31)
- A merit and compensation system shall be established for officials, agents, and employees of the Authority, with exemptions for regular professional and technical personnel. (Section 32)
- The Authority shall be directly under the NEDA for policy and program integration. (Section 34-A)
- The Authority shall submit audited financial statements to NEDA within 60 days after the fiscal year's close. (Section 34-B)
- NEDA may initiate a management audit of the Authority if there are reasonable grounds to believe mismanagement. (Section 34-C)
- Contracts entered into by the Authority shall contain provisions for paying not less than the minimum wage fixed by law. (Section 35)
Other Provisions:
- The Board shall formulate and report its plans and recommendations for the region's accelerated and balanced development within one year of organization. (Section 36)
- Provisions on bidding for purchases of supplies or contracts for services, with exceptions. (Section 37)
- The Board shall appoint an auditor to formulate an auditing system and report on the Authority's financial condition and operations. (Section 38)
- Penal and civil liability clauses for violations of the Act or rules and regulations. (Section 39-A)
- Separability clause. (Section 40)
- Transitory provision regarding the assumption of socio-economic planning functions by the Regional Development Council. (Section 40-A)
- Definitions of terms used in the Act. (Section 41)
- Repealing clause for conflicting laws. (Section 42)
- Effectivity clause. (Section 43)
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water quality
aquaculture
zoning ordinances
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AN ACT CREATING THE LAGUNA LAKE DEVELOPMENT AUTHORITY PRESCRIBING ITS POWERS
Republic Act No. 4850
•July 18, 1966
REPUBLIC ACT NO. 4850 July 18, 1966
AN ACT CREATING THE LAGUNA LAKE DEVELOPMENT AUTHORITY, PRESCRIBING ITS POWERS, FUNCTIONS AND DUTIES, PROVIDING FUNDS THEREFOR, AND FOR OTHER PURPOSES.
CHAPTER I
DECLARATION OF POLICY AND CREATION OF AUTHORITY
Sec. 1. Declaration of Policy. It is hereby declared to be the national policy to promote, and accelerate the development and balanced growth of the Laguna Lake area and the surrounding provinces, cities and towns hereinafter referred to as the region, within the context of the national and regional plans and policies for social and economic development and to carry out the development of the Laguna Lake region with due regard and adequate provisions for environmental management and control, preservation of the quality of human life and ecological systems, and the prevention of undue ecological disturbances, deterioration and pollution.
Sec. 2. Laguna Lake Development Authority created. For the purpose of carrying out and effecting the declared policy, as provided for in Section one hereof, there is hereby created a body corporate to be known as the Laguna Lake...
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