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(a) The investigation of the case shall be terminated within ninety (90) Section 291. Share of the Local Governments from any Government
days from the start thereof. Within thirty (30) days after the end of the Agency or Owned or Controlled Corporation. - Local government units
investigation, the Office of the President or the sanggunian concerned shall shall have a share based on the preceding fiscal year from the proceeds
render a decision in writing stating clearly and distinctly the facts and the derived by any government agency or government-owned or controlled
corporation engaged in the utilization and development of the national (1) City - Sixty-five percent (65%); and
wealth based on the following formula whichever will produce a higher
share for the local government unit: (2) Barangay - Thirty-five percent (35%)
(a) One percent (1%) of the gross sales or receipts of the preceding Provided, however, That where the natural resources are located in such
calendar year; or two (2) or more cities, the allocation of shares shall be based on the
formula on population and land area as specified in paragraph (a) of this
(b) Forty percent (40%) of the mining taxes, royalties, forestry and fishery Section.
charges and such other taxes, fees or charges, including related surcharges,
interests, or fines the government agency or government owned or Section 293. Remittance of the Share of Local Government Units. -
controlled corporation would have paid if it were not otherwise exempt. The share of local government units from the utilization and development
of national wealth shall be remitted in accordance with Section 286 of this
Section 292. Allocation of Shares. - The share in the preceding Section Code: Provided, however, That in the case of any government agency or
shall be distributed in the following manner: government-owned or controlled corporation engaged in the utilization
and development of the national wealth, such share shall be directly
(a) Where the natural resources are located in the province: remitted to the provincial, city, municipal or barangay treasurer concerned
within five (5) days after the end of each quarter.
(1) Province - Twenty percent (20%);
Section 294. Development and Livelihood Projects. - The proceeds from
(2) Component City/Municipality - Forty-five percent (45%); and the share of local government units pursuant to this chapter shall be
appropriated by their respective sanggunian to finance local government
(3) Barangay - Thirty-five percent (35%) and livelihood projects: Provided, however, That at least eighty percent
(80%) of the proceeds derived from the development and utilization of
Provided, however, That where the natural resources are located in two (2) hydrothermal. geothermal, and other sources of energy shall be applied
or more provinces, or in two (2) or more component cities or solely to lower the cost of electricity in the local government unit where
municipalities or in two (2) or more barangays, their respective shares such a source of energy is located.
shall be computed on the basis of:
Section 82
Allocation of Government Share
58. Municipal waters - include not only streams, lakes, inland bodies of
(b) The sangguniang bayan may: water and tidal waters within the municipality which are not included
within the protected areas as defined under Republic Act No. 7586 (The
(1) Grant fishery privileges to erect fish corrals, oysters, mussels or NIPAS Law), public forest, timber lands, forest reserves or fishery
other aquatic beds or bangus fry areas, within a definite zone of reserves, but also marine waters included between two (2. lines drawn
the municipal waters, as determined by it: Provided, however, perpendicular to the general coastline from points where the boundary
That duly registered organizations and cooperatives of marginal lines of the municipality touch the sea at low tide and a third line parallel
fishermen shall have the preferential right to such fishery with the general coastline including offshore islands and fifteen (15.
privileges: Provided, further, That the sangguniang bayan may kilometers from such coastline. Where two (2. municipalities are so
require a public bidding in conformity with and pursuant to an situated on opposite shores that there is less than thirty (30. kilometers of
ordinance for the grant of such privileges: Provided, finally, That marine waters between them, the third line shall be equally distant from
in the absence of such organizations and cooperatives or their opposite shore of the respective municipalities.
failure to exercise their preferential right, other parties may
participate in the public bidding in conformity with the above
cited procedure. Section 6. Fees and Other Fishery Charges. - The rentals for fishpond
areas covered by the Fishpond Lease Agreement (FLA) and license fees
for Commercial Fishing Boat Licenses (CFBL) shall be set at levels that
"The Philippine Fisheries Code of 1998." reflect resource rent accruing from the utilization of resources and shall be
determined by the Department: Provided, That the Department shall also
Section 2. Declaration of Policy. - It is hereby declared the policy of the prescribe fees and other fishery charges and issue the corresponding
State: license or permit for fishing gear, fishing accessories and other fishery
activities beyond the municipal waters: Provided, further, That the license
(d) to protect the rights of fisherfolk, especially of the local communities fees of fishery activity in municipal waters shall be determined by the
with priority to municipal fisherfolk, in the preferential use of the Local Government Units (LGUs) in consultation with the FARMCs. The
municipal waters. Such preferential use, shall be based on, but not limited FARMCs may also recommend the appropriate license fees that will be
to, Maximum Sustainable Yield (MSY) or Total Allowable Catch (TAC) imposed.
on the basis of resources and ecological conditions, and shall be consistent
with our commitments under international treaties and agreements; Section 7. Access to Fishery Resources. - The Department shall issue such
number of licenses and permits for the conduct of fishery activities subject
to the limits of the MSY of the resource as determined by scientific studies
or best available evidence. Preference shall be given to resource users in ARTICLE I
the local communities adjacent or nearest to the municipal waters. MUNICIPAL FISHERIES
Section 8. Catch Ceiling Limitations. - The Secretary may prescribe Section 16. Jurisdiction of Municipal/City Government. - The
limitations or quota on the total quantity of fish captured, for a specified municipal/city government shall have jurisdiction over municipal waters
period of time and specified area based on the best available evidence. as defined in this Code. The municipal/city government, in consultation
Such a catch ceiling may be imposed per species of fish whenever with the FARMC shall be responsible for the management, conservation,
necessary and practicable: Provided, however, That in municipal waters development, protection, utilization, and disposition of all fish and
and fishery management areas, and waters under the jurisdiction of special fishery/aquatic resources within their respective municipal waters.
agencies, catch ceilings may be established upon the concurrence and
approval or recommendation of such special agency and the concerned The municipal/city government may, in consultation with the FARMC,
LGU in consultation with the FARMC for conservation or ecological enact appropriate ordinances for this purpose and in accordance with the
purposes. National Fisheries Policy. The ordinances enacted by the municipality and
component city shall be reviewed pursuant to Republic Act No. 7160 by
Section 9. Establishment of Closed Season. - The Secretary may declare, the sanggunian of the province which has jurisdiction over the same.
through public notice in at least two (2) newspapers of general circulation
or in public service announcements, whichever is applicable, at least five The LGUs shall also enforce all fishery laws, rules and regulations as well
(5) days before the declaration, a closed season in any or all Philippine as valid fishery ordinances enacted by the municipal/city council.
waters outside the boundary of municipal waters and in bays, for
conservation and ecological purposes. The Secretary may include waters The management of contiguous fishery resources such as bays which
under the jurisdiction of special agencies, municipal waters and bays, straddle several municipalities, cities or provinces, shall be done in an
and/or other areas reserved for the use of the municipal fisherfolk in the integrated manner, and shall not be based on political subdivisions of
area to be covered by the closed season: Provided, however, That this shall municipal waters in order to facilitate their management as single resource
be done only upon the concurrence and approval or recommendation of systems. The LGUs which share or border such resources may group
such special agency and the concerned LGU and FARMC: Provided, themselves and coordinate with each other to achieve the objectives of
further, That in municipal waters, fishery management areas and other integrated fishery resource management. The Integrated Fisheries and
areas reserved for the use of the municipal fisherfolk, closed season may Aquatic Resources Management Councils (FARMCs) established under
be established by the concerned LGU in consultation with the FARMC for Section 76 of this Code shall serve as the venues for close collaboration
conservation or ecological purposes. The FARMCs may also recommend among LGUs in the management of contiguous resources.
the establishment of closed seasons in municipal waters, fisheries
management and other areas reserved for the use of the municipal Section 17. Grant of Fishing Privileges in Municipal Waters. - The duly
fisherfolk. registered fisherfolk organizations/cooperatives shall have preference in
the grant of fishery rights by the Municipal/City Council pursuant to
Section 149 of the Local Government Code: Provided, That in areas where
there are special agencies or offices vested with jurisdiction over
municipal waters by virtue of special laws creating these agencies such as, for this purpose for individual person shall be determined by the LGUs in
but not limited to, the Laguna Lake Development Authority and the consultation with the concerned FARMC: Provided, however, That not
Palawan Council for Sustainable Development, said offices and agencies over ten percent (10%) of the suitable water surface area of all lakes and
shall continue to grant permits for proper management and implementation rivers shall be allotted for aquaculture purposes like fish pens, fish cages
of the aforementioned structures. and fish traps; and the stocking density and feeding requirement which
shall be controlled and determined by its carrying capacity: Provided,
Section 18. Users of Municipal Waters. - All fishery related activities in further, That fish pens and fish cages located outside municipal waters
municipal waters, as defined in this Code, shall be utilized by municipal shall be constructed and operated only within fish pen and fish cage belts
fisherfolk and their cooperatives/organizations who are listed as such in designated by the Department and after corresponding licenses therefor
the registry of municipal fisherfolk. have been secured and the fees thereof paid.
The municipal or city government, however, may, through its local chief ARTICLE II
executive and acting pursuant to an appropriate ordinance, authorize or THE FISHERIES AND AQUATIC RESOURCES MANAGEMENT
permit small and medium commercial fishing vessels to operate within the COUNCILS (FARMCs)
ten point one (10.1) to fifteen (15) kilometer area from the shoreline in
municipal waters as defined herein, provided, that all the following are Section 68. Development of Fisheries and Aquatic Resources in Municipal
met: Waters and Bays. - Fisherfolk and their organizations residing within the
geographical jurisdiction of the barangays, municipalities or cities with the
(a) no commercial fishing in municipal waters with depth less than concerned LGUs shall develop the fishery/aquatic resources in municipal
seven (7) fathoms as certified by the appropriate agency; waters and bays.
Section 19. Registry of Municipal Fisherfolk. - The LGU shall maintain a Section 69. Creation of Fisheries and Aquatic Resources Management
registry of municipal fisherfolk, who are fishing or may desire to fish in Councils (FARMCs). - FARMCs shall be established in the national level
municipal waters for the purpose of determining priorities among them, of and in all municipalities/cities abutting municipal waters as defined by this
limiting entry into the municipal waters, and of monitoring fishing Code. The FARMCs shall be formed by fisherfolk
activities an/or other related purposes: Provided, That the FARMC shall organizations/cooperatives and NGOs in the locality and be assisted by the
submit to the LGU the list of priorities for its consideration. LGUs and other government entities. Before organizing FARMCs, the
LGUs, NGOs, fisherfolk, and other concerned POs shall undergo
Section 51. License to Operate Fish Pens, Fish Cages, Fish Traps and consultation and orientation on the formation of FARMCs.
Other Structures for the Culture of Fish and Other Fishery Products. - Fish
pens, fish cages, fish traps and other structures for the culture of fish and
other fishery products shall be constructed and shall operate only within
established zones duly designated by LGUs in consultation with the
FARMCs concerned consistent with national fisheries policies after the
corresponding licenses thereof have been secured. The area to be utilized