September 10, 2001

DAR OPINION NO. 17-01

MEMORANDUM

TO                :     ROBERTO BOLAOEN
                                           Trial Attorney III
                                           DAR Provincial Office
                                           San Fernando City, La Union

SUBJECT    :     Query on the Application and Interpretation of Section 3 paragraph (e) of R.A. No. 6657 and Issuance of Cease and Desist Order (CDO) on Illegal Conversion Case

In a letter dated 12 July 2001, you posed the following issues, relative to the application and interpretation of Section 73, par. (e) of R.A. No. 6657, as hereunder quoted:

"1.        What is our stand regarding agricultural lands within San Fernando City, La Union which are subject of conversions to non-agricultural use — do the Landowners need to apply for conversion?

2.         Is there a need for a Cease and Desist Order before an Illegal Conversion Case prospers in court, the subject matter of which are agricultural lands within the City? Please take note that San Fernando became a city in 1999. "

Section 73, paragraph (e) of R.A. No. 6657 provides:

"SECTION 73.        Prohibited Acts and Omissions. — The following are prohibited:

xxx                      xxx                      xxx

e)         The sale, transfer, conveyance or change of the nature of lands outside of urban centers and city limits either in whole or in part after the effectivity of this Act. . . ."

On the first issue, conversion of agricultural lands within the city to non-agricultural use still needs DAR approval. Notwithstanding the provision of Section 73, paragraph (e) of R.A. No. 6657, it is clear that under Section 4 of the same law, all public and private agricultural lands contemplated therein are covered by the Comprehensive Agrarian Reform Program (CARP).

Executive Order No. 129-A (Modifying Executive Order No. 129, Reorganizing and Strengthening Department of Agrarian Reform and for Other Purposes), specifically Sections 4 (j) and 5 (1) thereof, expressly vested on DAR the power to "approve or disapprove the conversion, restructuring or readjustment of agricultural lands into non-agricultural uses" (emphasis supplied) as weld as the conversion of agricultural lands to residential, commercial, industrial, and other land uses.

The aforequoted provisions of law are clear and did not distinguish. If a piece of land is agricultural, whether it is within or outside urban centers or city limits, it is coverable under CARP and any change in the nature of its use to non-agricultural may not be allowed except with the approval of DAR under its rules on conversion or exemption. When the law does not distinguish, we should not distinguish.

Moreover, Sections 2 (k) and 3 (a & d) of DAR Administrative Order No. 01, series of 1999 (Revised Rules and Regulations on the Conversion of Agricultural Lands to Non Agricultural Uses) provide:

Section 2.     Definition of Terms. — As used in this Order, the terms enumerated are defined as follows:

xxx                      xxx                      xxx

(k)        Land Use Conversion refers to the act or process of changing the current use of a piece of agricultural land into some other use as approved by DAR " (emphasis supplied)

"Section 3.    Applicability of Rules. — These Rules shall apply to the following agricultural lands:

a.         Those to be converted to residential, commercial, industrial, institutional and other non-agricultural purposes;

xxx                      xxx                      xxx

d.         Those reclassified to residential, commercial, industrial, or other non-agricultural uses on or after the effectivity of R.A. No. 6657 on June 15, 1998 pursuant to Section 20 of R.A. 7160 and other pertinent laws and regulations, and are to be converted to such uses. However, for those reclassified prior to June 15, 1988, the guidelines on securing exemption clearance shall apply." (emphasis supplied)

Thus, the act or process of changing the current use of a piece of agricultural land into some other non-agricultural use necessitates DAR approval notwithstanding that said land is within city limits or urban centers, or, was already reclassified into non-agricultural on or after 15 June 1988 as provided above.

On the second issue, a case for illegal conversion shall prosper notwithstanding the absence of a cease and desist order. It is not a prerequisite for filing an illegal conversion case. What is important is the existence of a prima facie case of illegal, premature, or unauthorized conversion and the issuance of a Cease and Desist Order is, at best, procedural and when warranted by the circumstances to prevent further damage to the agricultural state of the land involved.

We hope to have clarified the matters and be guided accordingly.

(SGD.) VIRGILIO R. DE LOS REYES

Undersecretary for Legal Affairs, and Policy and Planning

Copy furnished:

The Regional Director

DAR Regional Office No. 1

Jean Lee Building Lingsat

San Fernando City, La Union

The Provincial Agrarian Reform Officer

DAR Provincial Office

Tabora Bldg., Gov. Luna St.

San Fernando City, La Union

The Municipal Agrarian Reform Officer

DAR Municipal Office

San Fernando City, La Union