Republic of the Philippines
PROVINCE OF BUKIDNON
City of Malaybalay
Office of the Sangguniang Panlalawigan
Proposed Ordinance No. 11-2019(26th SP)
AN ORDINANCE FIXING THE MINIMUM RENTAL RATES FOR ALL
AGRICULTURAL LANDS IN THE PROVINCE OF BUKIDNON THAT ARE
LEASED BY BANANA AND PINEAPPLE PLANTATION ENTITIES, AND FOR
OTHER PURPOSES —
________________________________________________________________
Introduced by: All SP Members
This Province
Provincial Vice Governor ROGELIO N. QUIÑO
Board Member MARIO B. ALBARECE, JR.
Board Member ARLYN P. AYON
Board Member BENITO U. BAGUIO
Board Member GODOFREDO I. BALANSAG
Board Member NEMESIO B. BELTRAN, JR.
Board Member MINERVA C. CASINABE
Board Member LORENZO L. DINLAYAN, JR.
Board Member OLIVER OWEN L. GARCIA
Board Member PRINCESS GRACE L. GAYON
Board Member RICHARD D. MACAS
Board Member MELCHOR P. MARAMARA
Board Member JOSEPH D. PALMADA
Board Member RANULFO E. PEPITO
________________________________________________________________
Explanatory Note
WHEREAS, the General Welfare Clause of RA 7160, otherwise known as the Local
Government Code empowers the Local Government Units to enact and implement measures
for the general well-being of their inhabitants;
WHEREAS, this ordinance shall cover the contracts of lease entered into by the land
owners as lessors and the banana and pineapple plantation firms as lessees;
WHEREAS, this Body is aware of the non-impairment of contract clause in the Constitution,
however, the same is not absolute, thus, In Ortigas and Co. Ltd Partnership vs. FEATI Bank
and Trust Co.1 the Supreme Court provides that “the non-impairment clause of contracts is
not absolute since it must be reconciled with the legitimate exercise of police power. When
general welfare and private property rights clash, the former must prevail through police
powers of the state”;
WHEREAS, The Supreme Court in the case of City of Batangas vs. Philippine Shell
Petroleum Corporation and Shell Philippines Exploration 2 defined police power as “Police
power is a power to prescribe regulations to promote the health, morals, peace, education,
good order, safety, and general welfare of the people. As an inherent attribute of
sovereignty, police power primarily rests with the State. In furtherance of the State's policy
to foster genuine and meaningful local autonomy, the national legislature delegated the
exercise of police power to local government units (LGUs) as agents of the State, found in
Section 16 of the LGC, which embodies the general welfare clause”;
WHEREAS, police power can also be gleaned from Binay vs. Domingo 3, wherein the court
held that police power is a governmental function, an inherent attribute of sovereignty,
which was born with civilized government. It is founded largely on the maxims, “Sic utere
tuo et ahenum non laedas” (use your property so as not to impair others) and “Salus populi
est suprema lex” (the welfare of the people is the supreme law);
WHEREAS, further in the case of Surigao del Norte Electric Cooperative vs. Energy
Regulatory Commission 4, It ruled that: “It has long been settled that police power
legislation adopted by the State to promote the health, morals, peace, education, good
order, safety, and the general welfare of the people prevail not only over future contracts
but even over those already in existence, for all private contracts must yield to the superior
and legitimate measures taken by the State to promote public welfare.”;
WHEREAS, Section 16 of RA 7160 provides that the Local Government Units shall enhance
economic prosperity and social justice and preserve comfort and convenience of their
inhabitants;
WHEREAS, upon consultation and reference to current inflation rates, the Provincial
Government of Bukidnon in exercise of its power as guardian and protector of the rights and
interests of its people deems it appropriate and equitable that agricultural plantation firms
shall lease their lands at a minimum amount of Forty Thousand Pesos (P40, 000.00) per
hectare, if the land covered is contiguous with an area of not less than of Four Hundred
hectare (400 has), and a minimum amount of Twenty Five Thousand Pesos (P 25, 000.00)
rental fee if the total land covered is less than one hundred hectares;
WHEREAS, this ordinance is an exercise of the police power and oversight function of the
Local Government Unit of the Province of Bukidnon as the overseer of the general welfare of
their people;
WHEREAS, due to the rapid increase of agricultural plantation in the Province of Bukidnon
it is imperative to protect the rights of the landowners, for those who are less in life should
have more in laws.
All SP Members
This Province
By:
ATTY. NEMESIO B. BELTRAN, JR.
Provincial Board Member
_____________________________
1
G.R No. L-24670, 94 SCRA 533, December 14, 1979
2
G.R No. 195003, June 7, 2017
3
G.R No. 92389, September 11, 1991
4
G.R No. 183626, October 4, 2010
Republic of the Philippines
PROVINCE OF BUKIDNON
City of Malaybalay
Office of the Sangguniang Panlalawigan
Proposed Ordinance No. 11-2019(26th SP)
AN ORDINANCE FIXING THE MINIMUM RENTAL RATES FOR ALL
AGRICULTURAL LANDS IN THE PROVINCE OF BUKIDNON THAT ARE
LEASED BY BANANA AND PINEAPPLE PLANTATION ENTITIES, AND FOR
OTHER PURPOSES —
________________________________________________________________
Introduced by: All SP Members
This Province
Provincial Vice Governor ROGELIO N. QUIÑO
Board Member MARIO B. ALBARECE, JR.
Board Member ARLYN P. AYON
Board Member BENITO U. BAGUIO
Board Member GODOFREDO I. BALANSAG
Board Member NEMESIO B. BELTRAN, JR.
Board Member MINERVA C. CASINABE
Board Member LORENZO L. DINLAYAN, JR.
Board Member OLIVER OWEN L. GARCIA
Board Member PRINCESS GRACE L. GAYON
Board Member RICHARD D. MACAS
Board Member MELCHOR P. MARAMARA
Board Member JOSEPH D. PALMADA
Board Member RANULFO E. PEPITO
________________________________________________________________
SECTION 1. TITLE. - This ordinance shall be known and cited as “The Agricultural Rental
Law 2020 of the Province of Bukidnon”.
SECTION 2. DECLARATION OF OBJECTIVES AND POLICIES. – It is hereby declared
as the policy and objective of the Local Government of the Province of Bukidnon that:
1. The Local Government shall promote and protect the rights of the banana and
pineapple lessors in the Province of Bukidnon; and
2. The Local Government shall ensure that with the proliferation of agricultural
plantation firms in Bukidnon, rights and laws shall not be violated and social
justice is preserved.
3. The Provincial Government of Bukidnon shall promote social and economic
equality as enshrined in Section 1, Article XIII of the 1987 Constitution.
SECTION 3. COVERAGE. – This Ordinance shall cover all agricultural companies whether
operated as sole proprietors, partnerships or corporations that are engaged in the business
of pineapple or banana plantation in the Province of Bukidnon.
SECTION 4. SCOPE OF APPLICATION. – Upon the effectivity of this Ordinance, the base
rental rate for all agricultural lands planted to banana and pineapple shall be fixed at a
minimum amount of Twenty Five Thousand Pesos (P 25, 000.00) per hectare per annum.
All subsisting contracts with rental base below Twenty Five Thousand Pesos (P
25,000.00) shall be deemed amended upon the effectivity of this Ordinance at a minimum
base rental of Twenty Five Thousand Pesos per hectare per annum, shall cover only the
unexpired term of the contract.
SECTION 5. IMPLEMENTING AGENCIES. – The Provincial Agriculture Office shall serve
as the lead agency in implementing this ordinance in collaboration with the Municipal and
City Agriculture’s Office in the Province of Bukidnon. It shall likewise act as a monitoring
body and shall render reports of violations hereof, to the Office of the Governor and the
Sangguniang Panlalawigan.
The Provincial Agriculture Office shall formulate the Implementing Rules and
Regulations within thirty (30) days from approval of this Ordinance to implement the
provisions of this Ordinance and submit the same to the Sangguniang Panlalawigan for
approval within the same 30-day period.
SECTION 6. SANCTION. – Any agricultural plantation firm who undertakes business in the
Province of Bukidnon without complying with the herein prescribed minimum rental rates,
shall be recommended for non-issuance of local business permits, revocation of its
Environmental Compliance Certificate (ECC) and/or be declared persona non grata.
SECTION 7. TRANSITORY PROVISIONS. – The Committee Report on this Ordinance
duly approved by the Body shall form part and made an integral part hereof.
The Provincial Agriculture Officer shall disseminate copies of this Ordinance along
with the approved Internal Rules and Regulations to all stakeholders, for information,
guidance, compliance and implementation.
SECTION 8. SEPARABILITY CLAUSE. – If any part or provision of this Ordinance is held
unconstitutional or invalid, other parts or provision hereof which are not affected thereby
shall continue to remain in force and effect.
SECTION 9. EFFECTIVITY. – This Ordinance shall take effect fifteen (15) days after
completion of its publication in a local newspaper of general circulation in the Province of
Bukidnon.
RGC’19
