AN ACT DEFINING A LAND TENURE POLICY

Case Overview and Summary

Summary of Republic Act No. 1400 (Land Reform Act of 1955):

Declaration of Policy (Section 2):
- The State aims to create and maintain a peaceful, prosperous, and stable agrarian system.
- The government shall establish and distribute family-size farms to landless citizens through:
    - Opening up public agricultural lands.
    - Division and distribution of private agricultural lands where agrarian conflicts exist, either by private arrangement with owners or through expropriation proceedings.

Land Tenure Administration (Sections 3-8):
- A Land Tenure Administration is created under the President's control and supervision.
- It consists of a Chairman and two members appointed by the President for 5 years.
- Qualifications: Natural-born Filipino citizen, at least 35 years old, not related to landowners affected by the Act.
- Functions include:
    - Studying land tenure problems and preparing long-range plans. (Section 5.1)
    - Investigating areas with land tenure difficulties and recommending actions. (Section 5.2)
    - Informing the President and Congress about deficiencies in implementation. (Section 5.3)
    - Preparing a plan for opening public lands for distribution to tenants. (Section 5.4)
    - Implementing expropriation and resale/lease of urban lands. (Section 5.5)
- Powers include:
    - Purchasing private agricultural lands for resale to tenants or occupants. (Section 6.1)
    - Initiating expropriation proceedings for acquiring private agricultural lands exceeding certain areas for resale. (Section 6.2)
    - Preparing schedules of family-size farm units for different crops and localities. (Section 6.3)
    - Promulgating necessary rules and regulations. (Section 6.4)

Negotiable Land Certificates (Sections 9-10):
- The President is authorized to issue negotiable land certificates upon the Administration's request, with limits on the annual issuance amount.
- Certificates are payable to bearer on demand, earn interest after certain periods, and are tax-exempt.
- Certificates can be used for:
    - Purchasing agricultural lands or other government properties. (Section 10.1)
    - Purchasing shares or assets of government-owned/controlled corporations. (Section 10.2)
    - Paying tax obligations, debts, or monetary obligations to the government. (Section 10.3)
    - Providing surety or performance bonds. (Section 10.4)

Negotiated Purchase of Private Agricultural Lands (Sections 11-15):
- The Administration can negotiate to purchase privately owned agricultural lands when the majority of tenants petition for it. (Section 11)
- Process involves:
    - Determining land suitability and notifying parties. (Section 12.1)
    - Conducting investigations and technical surveys to determine land value. (Section 12.2)
    - Fixing the date for final negotiation. (Section 12.3)
- Tenants must form a cooperative and deposit up to 25% of the annual gross produce as contribution to the selling price. (Section 13)
- Payment can be wholly in land certificates or partly in legal tender (up to 50%) and partly in land certificates. (Section 14)
- Outstanding debts of tenants to the landowner can be included in the price if paid wholly in land certificates, with a 10% maximum increase. (Section 15)

Expropriation of Private Agricultural Lands (Sections 16-20):
- The Administration can initiate expropriation proceedings for acquiring private agricultural lands upon petition of a majority of tenants, when:
    - The landowner refuses to sell after negotiation efforts. (Section 16.1)
    - The landowner is willing to sell but cannot agree on price or payment manner. (Section 16.2)
- The Administration can take immediate possession of the land upon depositing the provisionally determined value with the court. (Section 18)
- Payment can be wholly in cash or wholly/partly in land certificates, if the landowner chooses. (Section 19)
- The landowner cannot alienate the land or initiate ejectment proceedings against tenants once the petition is filed. (Section 20)

General Provisions (Sections 21-30):
- Resale contracts and titles of acquired lands shall prohibit subdivision, sale, transfer, or encumbrance without the Administration's consent, except to qualified farmers, tenants, or government banking institutions. (Section 21)
- Purchase price paid by the government is not considered income of the landowner for income tax purposes. (Section 22)
- Definitions of "agricultural lands", "family-size farm units", and "at cost" are provided. (Section 23)
- Veterans and government employees can use backpay certificates to purchase family-size farms. (Section 24)
- A trust fund is established from collections of land redistribution, excluding administration expenses, for redeeming land certificates and bonds. (Section 25)
- A sinking fund is established with an annual appropriation of up to ₱20 million to redeem land certificates and bonds at maturity. (Section 26)
- ₱100 million from a bond issue and ₱300,000 for the Administration's expenses in 1955-1956 are appropriated. (Sections 26-27)
- The Division of Landed Estates in the Bureau of Lands is abolished, and its functions, personnel, and resources are transferred to the Administration. (Section 28)
- Inconsistent laws are repealed. (Section 29)
- The Act takes effect upon approval. (Section 30)