Sec 20 of RA 7160 (Local Government Code)

(a) A city or municipality may, through an ordinance passed by the

sanggunian after conducting public hearings for the purpose, authorize the
reclassification of agricultural lands and provide for the manner of their
utilization or disposition in the following cases: (1) when the land ceases to
be economically feasible and sound for agricultural purposes as determined
by the Department of Agriculture or (2) where the land shall have
substantially greater economic value for residential, commercial, or industrial
purposes, as determined by the sanggunian concerned: Provided, That such
reclassification shall be limited to the following percentage of the total
agricultural land area at the time of the passage of the ordinance:

(1) For highly urbanized and independent component cities, fifteen percent
(15%);

(2) For component cities and first to the third class municipalities, ten percent
(10%); and

(3) For fourth to sixth class municipalities, five percent (5%): Provided,
further, That agricultural lands distributed to agrarian reform beneficiaries
pursuant to Republic Act Numbered Sixty-six hundred fifty-seven (R.A. No.
6657). otherwise known as "The Comprehensive Agrarian Reform Law", shall
not be affected by the said reclassification and the conversion of such lands
into other purposes shall be governed by Section 65 of said Act.

(b) The President may, when public interest so requires and upon
recommendation of the National Economic and Development Authority,
authorize a city or municipality to reclassify lands in excess of the limits set in
the next preceding paragraph.

(c) The local government units shall, in conformity with existing laws,
continue to prepare their respective comprehensive land use plans enacted
through zoning ordinances which shall be the primary and dominant bases for
the future use of land resources: Provided. That the requirements for food
production, human settlements, and industrial expansion shall be taken into
consideration in the preparation of such plans.

(d) Where approval by a national agency is required for reclassification, such

approval shall not be unreasonably withheld. Failure to act on a proper and
complete application for reclassification within three (3) months from receipt
of the same shall be deemed as approval thereof.

(e) Nothing in this Section shall be construed as repealing, amending, or

modifying in any manner the provisions of R.A. No. 6657.
Memo Circular No. 54 s. 1993, Office of the President (Presenting the guideline
governing Sec. 20 of RA 7160 Authorizing Cities and Municipalities to Reclassify
Agricultural Lands to Non-Agricultural uses

Reference DAR Administrative Orders No. 1 s. 2002- 2002 Rules and Regulations on
the conversion of Agricultural

The Hon. Carlos Fortichet. al. vs Hon. Renato Corona

Summary:

The subject of the controversy is an agricultural land in Sumilao, Bukidnon,

measuring 144 hectares. The municipality of Sumilao wanted to convert this
into an agro-industrial land. In its Order dated March 29, 1996, Office of the
President acceded to this conversion, and converted the whole 144 hectares
to agro-industrial land in order to attract investors. This order became final
and executory. Feeling aggrieve, farmers commenced a hunger-strike in
protest of this ruling. The OP wanted to appease the farmers, hence, they
issued a new resolution. They said that only 44 hectares will be converted
into agro-industrial land and that the remaining 100 hectares will be
distributed to the farmers.

The respondents filed a motion for reconsideration, but there was no result
because the justices voted 2-2 in resolving such MR. Now, the respondents
wanted to refer the case to the Supreme Court

The Supreme Court said that the resolution of the MR cannot be referred to
the Court

It based its reasoning on Article 8, Sec. 4 (3) of the Constitution. From that
certain paragraph, the Court differentiated CASES from MATTERS. CASES are
to be DECIDED, while MATTERS are to be RESOLVED. An example of a MATTER
is a motion for reconsideration, such as the one in this case. Only CASES
which do not obtain the required number of votes are required to be elevated

On the other hand, as regards MATTERS, the failure of the division to resolve
the motion because of a tie in the voting does not leave the case undecided.
If there is a tie in resolving a matter, the earlier decision of the Court is
upheld.

RESOLUTION

Facts:

Background facts: On October 1997, alleged farmer-beneficiaries commenced

a hunger strike in front of the Department of Agrarian Reform compound in
Quezon City. They protested the decision of the Office of the President (OP)
dated March 29, 1996 which approved the conversion of a 144-hectare land
from agricultural to agro-industrial/institutional area. Note that this decision
already became final and executory.

The land is located at San Vicente, Sumilao, Bukidnon, owned by NQSRMDC

(Norberto Quisumbing Sr. Management and Development Corp). It was leased
as a pineapple plantation to Del Monte.

The Sangguniang Bayan of Sumilao, Bukidnon became interested in the

property, and enacted an ordinance converting the said land to
industrial/institutional with a view to attract investors in order to achieve
economic vitality.

Apparently, land conversion issues need to go through the Department of

Agrarian Reform. The DAR rejected the land conversion and instead opted to
put the same under CARP and ordered the distribution of the property to the
farmers.

The case reached the OP. The OP rendered a decision reversing the DAR and
converting the land to agro-indusrial area, which became the subject of the
strike of the farmers.

The hunger strike was dramatic and well-publicized which commanded

nationwide attention that even church leaders and some presidential
candidates tried to intervene for their cause.

These events led the OP, through then Deputy Exec. Sec. Corona, to issue the
so-called Win-Win Resolution, substantially modifying its earlier Decision
(see decision dated March 29, 1996) after it had already become final and
executory.