RA 3844 CHAPTER XL.&mdashGENERAL PROVISIONS

Section 166

SEC. 166. Definition of Terms.&mdashAs used in Chapter I of this Code: (1)"Agricultural land" means land devoted to any growth, including but not limited to crop lands, salt beds, fish ponds, idle land and abandoned land as defined in paragraphs 18 and 19 of this Section, respectively. (2)"Agricultural lessee" means a person who, by himself and with the aid available from within his immediate farm household, cultivates the land belonging to, or possessed by, another with the latter's consent for purposes of production, for a price certain in money or in produce or both. It is distinguished from civil law lessee as understood in the Civil Code of the Philippines. (3)"Agricultural lessor" means a person, natural or juridical, who, either as owner, civil law lessee, usufructuary, or legal possessor, lets or grants to another the cultivation and use of his land for a price certain. (4)"Agricultural year" means the period of time required for raising a particular agricultural product, including the preparation of the land, sowing, planting and harvesting of crops and, whenever applicable, threshing of said crops: Provided, however, That in case of crops yielding more than one harvest from one planting, "agricultural year" shall be the period from the preparation of the land to the first harvest and thereafter from harvest to harvest. In both cases, the period may be shorter or longer than a calendar year. (5)"Court" means the Court of Agrarian Relations. (6)"Fair rental value" means the value not in excess of allowable depreciation plus six per cent interest per annum on the investment computed at its market value:Provided, That the fair rental value for work animal or animals and farm implements used to produce the crop shall not exceed five per cent of the gross harvest for the work animal or animals and five per cent for implements. (7)"Farm implements" means hand tools or machines ordinarily employed in a farm enterprise. (8)"Immediate farm household" means the members of the family of the lessee or lessor and other persons who are dependent upon him for support and who usually help him in his activities. (9)"Incapacity" means any cause or circumstance which prevents the lessee from fulfilling his contractual and other obligations under this Code. (10)"Inspect" means to enter, examine and observe. Under no circumstance, however, shall such entrance, examination and observation be utilized to commit any act of intimidation or coercion nor shall it be utilized to impair the civil rights of the individuals affected. (11)"Proven farm practices" means sound farming practices generally accepted through usage or officially recommended by the Agricultural Productivity Commission for a particular type of farm. (12)"Work animals" means animals ordinarily employed in a farm enterprise, such as carabaos, horses, bullocks, etc. (13)"Personal cultivation" means cultivation by the lessee or lessor in person and/or with the aid of labor from within his immediate household. As used in Chapter II: (14)"Farm employer" includes any person acting directly or indirectly in the interest of a farm employer whether for profit or not, as well as a labor contractor but shall not include any labor organization (otherwise than when acting as a farm employer) or anyone acting in the capacity of an officer or agent of such labor organization. (15)"Farm worker" includes any agricultural wage, salary or piece worker but is not limited to a farm worker of a particular farm employer unless the Code explicitly states otherwise and any individual whose work has ceased as a consequence of, or in connection with, a current agrarian dispute or an unfair labor practice and who has not obtained a substantially equivalent and regular employment. Whenever the term "farm worker" is used in this Code, it shall be understood to include farm laborer and/or farm employee. (16)"Farm workers' organization" includes any union or association of farm workers which exists, in whole or in part, for the purpose of collective bargaining or dealing with farm employers concerning terms and conditions of employment. (17)"Agrarian dispute" means any controversy relating to terms, tenure or conditions of employment, or concerning an association or representation of persons in negotiating, fixing, maintaining, changing, or seeking to arrange terms or conditions of employment, regardless of whether the disputants stand in the proximate relation of farm employers and employees. As used in Chapter III of this Code: (18)"Idle lands" means land not devoted directly to any crop or to any definite economic purpose for at least one year prior to the notice of expropriation except for reasons other than force majeure or any other fortuitous event but used to be devoted or is suitable to such crop or is contiguous to land devoted directly to any crop and does not include land devoted permanently or regularly to other essential and more productive purpose. (19)"Abandoned lands" means lands devoted to any crop at least one year prior to the notice of expropriation, but which was not utilized by the owner for his benefit for the past five years prior to such notice of expropriation. (20)"Economic family-size farm units" means an area of farm land that permits efficient use of labor and capital resources of the farm family and will produce an income sufficient to provide a modest standard of living to meet a farm family's needs for food, clothing, shelter, and education with possible allowance for payment of yearly installments on the land, and reasonable reserves to absorb yearly fluctuations in income. (21)"Suitability for economic family-size farms" refers to situations where a parcel of land whose characteristics, such as climate, soil, topography, availability of water and location, will support a farm family if operated in economic family-size farm units and does not include those where large-scale operations will result in greater production and more efficient use of the land. (22)"Agricultural owner-cultivator" means any person who, providing capital and management, personally cultivates his own land with the aid of his immediate family and household. (23)"Owner-manager" means the owner of a parcel of land devoted to agricultural production who provides the capital and management in the farm enterprise. (24)"Labor administration" means cases where farm workers are employed wholly in the agricultural production. (25)"Share tenancy" as used in this Code means the relationship which exists whenever two persons agree on a joint undertaking for agricultural production wherein one party furnishes the land and the other his labor, with either or both contributing any one or several of the items of production, the tenant cultivating the land personally with the aid of labor available from members of his immediate farm household, and the produce thereof to be divided between the landholder and the tenant. (26)"Tax free" in reference to bonds and shares of stock issued by the Land Bank as payment for acquired private agricultural land shall mean all government taxes except gift tax and inheritance tax.

Penal Provisions.

Section 167

SEC. 167. Penal Provisions.—(1) Violation of the provisions of Sections thirteen and twenty-seven and paragraph 1 of Section thirty-one of this Code shall be punished by a fine not exceeding one thousand pesos or imprisonment not exceeding one year or both in the discretion of the court. In case of juridical persons, the manager or the person who has charge of the management or administration of the property or, in his default, the person acting in his stead, shall be liable under this Section. (2) Any person, natural or juridical, who induces an other, as tenant, to execute or enter into a share tenancy contract with himself or with another in violation of this Code shall be punished by a fine not exceeding five thousand pesos with subsidiary imprisonment in accordance with the Revised Penal Code: Provided, That the execution of a share tenancy contract shall be considered prima facie evidence of such inducement as to the owner, civil law lessee, usufructuary or legal possessor.In case of juridical persons, the manager or the person who has charge of the management or administration of the property or, in his default, the person acting in his stead, shall be liable under this Section. (3) Any person who executes an affidavit as required by Section thirteen of Chapter I, knowing the contents thereof to be false, shall be punished by a fine not exceeding one thousand pesos or imprisonment of not more than one year, or both, in the discretion of the court. (4) Any person who wilfully violates the provisions of Sections forty and forty-one of this Code shall be punished by a fine of not less than one hundred pesos nor more than one thousand pesos or by imprisonment of not less than one month nor more than one year, or both such fine and imprisonment, in the discretion of the court. If any violation of Sections forty and forty-one of this Code is committed by a corporation, partnership or association, the manager or, in his default, the person acting as such when the violation took place shall be criminally responsible. (5) Any person who wilfully violates the provisions of Section forty-two of this Code shall, upon conviction thereof, be subject to a fine of not more than two thousand pesos or, upon second conviction, to imprisonment of not more than one year or both such fine and imprisonment, in the discretion of the court. If any violation of the provisions of Section forty-two of this Code is committed by a corporation, partnership or association, the manager or, in his default, the person acting as such when the violation took place shall be criminally responsible.

Section 168

SEC. 168. Pending Application for Mechanization.&mdashAny provision of this Code to the contrary notwithstanding, any application for mechanization where corresponding certifications for suitability for mechanization and for availability of resettlement by the Agricultural Tenancy Commission and the National Resettlement and Rehabilitation Administration, respectively, have been issued and proper notices served on the tenants at least two months prior to the approval of this Code shall be given due course and decided in accordance with the pertinent provisions and requirements of Republic Act Numbered Eleven hundred and ninety-nine, as amended.

Section 169

SEC. 169. Personnel of Reorganized or Abolished Agencies.&mdashPermanent officials and employees of all existing government agencies which are abolished or reorganized under this Code, subject to Civil Service rules and regulations, shall be absorbed and shall not be divested of their positions except presidential appointees: Provided, That those presidential appointees who cannot be absorbed and such officials and employees who prefer to be laid-off shall be given gratuity equivalent to one month salary for every year of service but in no case more than twenty-four month’s salary, in addition to all benefits to which they are entitled under existing laws and regulations. To carry out the provisions of this Section, there is hereby appropriated the sum of five hundred thousand pesos out of the unappropriated funds in the National Treasury.

Section 170

SEC. 170. Budgeting and Disbursing of Appropriated Funds.&mdashAny provision of this Code or of any existing law to the contrary notwithstanding, not more than sixty per centum of the specific appropriations provided in this Code for operating expenditures shall be used for personnel services: Provided, That in the case of the appropriations for the Agricultural Productivity Commission not more than twenty per centum shall be spent for office personnel and other administrative expenses thereof: Provided, further, That the total operating expenditures of the Agricultural Credit Administration shall not exceed three per centum of its total capitalization in addition to the allowance for losses granted under Section one hundred ten: Provided, furthermore, That all unexpended balances of all appropriations provided in this Code for operating expenditures shall revert to the National Treasury at the end of the fiscal year in conformity with the provisions of Section twenty-three of Republic Act Numbered Nine hundred ninety-two: And provided, finally, That all the financial requirements of the various agencies established in this Code for their operation except the Land Bank and the Agricultural Credit Administration shall be proposed in the President's budget in order that such appropriation as may be necessary therefor may be provided in the General Appropriation Acts for the succeeding fiscal years.

Section 171

SEC. 171. Separability of Provisions.&mdashIf, for any reason, any section or provision of this Code shall be questioned in any court, and shall be held to be unconstitutional or invalid, no other section or provision of this Code shall be affected thereby.

Section 172

SEC. 172. Prior Inconsistent Laws.&mdashAll laws or parts of any law inconsistent with the provisions of this Code are hereby repealed.

Section 173

SEC. 173. Effective Date.&mdashThis Code shall take effect upon its approval. Approved, August 8, 1963.