Executive Order No. 240

CREATING FISHERIES AND AQUATIC RESOURCE MANAGEMENT COUNCIL (FARMCs) IN BARANGAY, CITIES AND MUNICIPALITIES, THEIR COMPOSITION AND FUNCTIONS

WHEREAS, it is a declared policy of state to ensure that management and control over fisheries and aquatic resources shall be effected by the Government through the active and extensive participation of people directly affected thereby;

WHEREAS, the subsistence fisherfolks have been seeking the enhancement of their empowerment through meaningful participation in the management, development and protection of fisheries and aquatic resources for sustainable productivity;

NOW, THEREFORE, I FIDEL V. RAMOS, President of the Philippines by virtue of the powers vested in me by the law do hereby order:

Section 1. Creation of FARMCs - To institutionalize the major role of the local fisherfolks and other resource users in the community-based planning and implementation of policies and programs for the management, conservation, development and protection of fisheries and aquatic resources of the municipal waters as defined by the Local Government Code there is hereby created FARMCs in all barangays, municipalities and cities abutting municipal waters. In bays, gulfs, lakes rivers and dams bounded by two or more barangays or municipalities/cities. Integrated FARMCs shall be created.

Section 2. Regulars Members - At least 3/4 of the regular members of the Fisheries and Aquatic Resources Management Councils, hereinafter referred to as FARMCs, shall be representatives of the local municipal fisherfolk.

Section 3. Functions - The FARMCs shall may have among their primary functions the following:

a. Prepare and recommend the fisheries and aquatic resources management policies and plans for integration into the Local Development Plan. Such policies and plans should be based on sound assessment and bio-economic characteristic of the resources.

b. Recommend to the local government units and special agencies referred to in Section 7 guidelines on the development and implementation of projects, and issuance of permits and licenses for the appropriate use of fisheries and aquatic resources and to ensure that resource use limits and controls are imposed. Such guidelines may include the evaluation of all projects and applications by FARMCs prior to the approval of appropriate offices.

Section 4. Technical Assistance - The Department of Agriculture (DA), Department of Environment and Natural Resources (DENR), Department of Interior and Local Government (DILG), Department of Justice (DOJ), Commission of Human Rights (CHR), and other government agencies are instructed to extend technical assistance to FARMCs.

Section 5. Law Enforcement - The PNP-Maricom, the Philippine Coast Guard and/or other law enforcement agencies are hereby instructed to take the lead in the enforcement of environmental laws in collaboration and coordination with the FARMCs.

Section 6. Deputation of FARMC Member - The members of the FARMCs shall undergo training and be deputized as fish wardens, and environment and natural resources officers. The appropriate government units are hereby instructed to issue deputation papers to the FARMCs members and officers.

Section 7. Special Agencies - Government agencies or offices having jurisdiction over municipal waters by virtue of special laws such as, but not limited to the Laguna Lake Development Authority shall integrate the plan formulated by the FARMCs into their agency/corporate policies and plans of operation for implementation.

Section 8. Implementation - The Department of Agriculture, jointly with the Department of Interior and Local Government, the special agencies referred to in Section 7 and representative of fisherfolk organizations are hereby directed to prepare the implementing guidelines and ensure the implementation of this Executive Order.

Section 9. Appropriations - There is hereby appropriated at least Five Million Pesos (P5,000.000.00) from the Fisheries Sector Program of the Department of Agriculture (DA) for the implementation of this Executive Order.

Section 10. Effectivity - This Executive Order shall take effect immediately.

Done in the City of Manila this 28th day of April in the year of our Lord, Nineteen Hundred and Ninety-Five.

Pursuant Executive Order No. 240 "CREATING FISHERIES AND AQUATIC RESOURCES MANAGEMENT COUNCILS (FARMCs) IN BARANGAYS, CITIES AND MUNICIPALITIES THEIR COMPOSITION AND FUNCTIONS", issued on 28 April 1995, the following implementing Rules and Regulations (IRR) are hereby promulgated:

Section 1. Definition of Terms.

(a) Ancillary Industries - firms or companies related to the manufacture, supply and maintenance of fishing vessels, gears, nets and other fishing paraphernalia, fishery machine shops; and other facilities, processing plants and other preharvest and post-harvest facilities.

(b) Aquaculture - fishery operations involving all forms of raising and culture of fish and other fishery species in flesh, brackish and marine water areas.

(c) Demarcated Areas - areas with boundaries defined by markers such as buoys and other similar devices and assigned to specific individuals or organizations for certain limited uses such as: 1. fish culture production in fish cages, fishpens, including seaweeds/mollusk culture or sea ranching; 2. fish attracting and aggregating devices such as artificial reefs and fish shelters; and 3. fixed and passive fishing gears such as book and line, fish corrals, and stationary lift nets.

(d) Fish Cage - any method of culture of fish and fishery/aquatic resources in a fish enclosure that is either stationary or floating made up of netting or screens sewn or fastened together and installed in the water with opening or cover at the surface and held place by wooden/bamboo posts or various types of anchors and floats.

(e) Fish Pen - an artificial enclosure constructed within a body of water for the culture of fish and fishery/aquatic resources made of bamboo poles closely arranged in an enclosure with either fine bamboo materials, screen or nylon netting to prevent escape of fish.

(f) Fish Refuge of Sanctuary - a designated area where fishing and other forms of activities that may damage the ecosystem of the area are prohibited.

(g) Fish Worker - a person who is regularly or not regularly employed in commercial fishing and ancillary industries, whose income is either in wage, profit-sharing or stratified sharing-basis, including workers in fish pens, fishpond, prawn farms, sea farms, salt beds, fish ports fish corrals/traps, fishing boat or trawlers, or fish processing and/or packing plants, excluding administrators, security guards and overseers.

(h) Fisherfolk - person directly or personally and physically engaged in taking and/or culture of fish and processing of fishery and/or aquatic resources.

(i) Fisherfolk Cooperative - a voluntary organization of fisherfolk recognized by the government.

(j) Fisherfolk Organization - an organized group, association, federation, alliance or an institution of fisherfolk which has at least 15 members. a set of officers, constitution and bylaws. organizational structure and program of action.

(k) Fishery License - a permit to operate specific types of fishing boats and/or fishing gears and other paraphernalia for specific duration in areas in Philippine waters.

(l) Fishery Operator - one who owns and provides the means to engage in fishery, including capital, fishing gears and vessels, but may or may not personally engage in fishing.

(m) Fishery Reserve - a designated area or areas where fishing activities are regulated and set aside for special purposes such as educational and research.

(n) Fishing Gear - any instrument or device, including its accessories used in taking fish and fishery products.

1. Active Fishing Gear - characterized by active gear movements and/or pursuit of the target species by towing, lifting, and pushing the gears, surrounding, covering, dredging, pumping and scaring the target species to impoundments, such as but not limited to trawls, purse seines, Danish seines, bag nets, push nets, cast nets, harvesting machineries, beach seines, pa-aling, drift gill net and tuna longline.

2. Passive Fishing Gear - characterized by the absence of gear movements and/or pursuit of the target species, such as, but not limited to hook and line, fish pots, traps and gill nets across the path of the fish.

Section 6. Structural Framework - The FARMCs may follow the following framework: First Level - the Council to be assisted by an advisory body; and Second Level - task forces/committees/services (refer to Annex A). The advisory body shall be selected from the academe and research institutions, national government agencies, local government units, NGOs and POs based on their involvement expertise in fisheries and track record in helping the fisherfolk. The FARMCs may be supported or assisted by a secretariat to be appointed by the Council.

The task force/committee/services which may be created in support to the operational activities of FARMCs may include but not limited to the following: law enforcement (or bantay dagat/lawa kalikasan), rehabilitation and conservation, livelihood, research, education and training, legislative and prosecution, pollution control land and water use/zonation and resettlement.

Section 7. Officers of FARMCs - The FARMCs shall constitute the following officers that come from among the Council's regular fisherfolk members: Chairperson, Vice Chairperson, Secretary, Treasurer, Auditor, Press Relations Officer and Sergeant-at-Arms, who shall be elected among themselves.

Section 8. Tenure, Meetings and Compensation - The FARMCs members shall serve the council in its initial formative years, for three (30 years. Thereafter, the members shall be elected yearly.

The FARMCs shall hold regular meetings every month and may hold special meetings whenever necessary.

The FARMCs may set aside funds for allowances of its members for every meeting actually attended as funds become available.

Section 9. Barangay Fisheries and Aquatic Resource Management Councils (BFARMCs) - There is hereby created in every fishing barangay a BFARMC.

Section 10. Composition - The regular members of the Barangay FARMCs shall be composed of:

(a) Chairperson of Sangguniang Barangay Agriculture/Fisheries Committee

(b) Representative from an accredited non-government organization.

(c) Representative from private sectors.

(d) At least eight (8) representatives of the fisherfolk including the youth and women sectors.

The Council shall adopt rules and regulations necessary to govern its proceedings and election.

Section 11. Powers and Functions.

(a) Formulate and submit Barangay Fisheries and Aquatic Resources Development Plan (BFARDP) to the Barangay Development Council and implement it.

(b) Formulate and submit fisheries and aquatic resources policies and management measures to the Sangguniang Barangay.

(c) Screen qualified applicants and evaluate applications for fishing permits and/or licenses and recommend/endorse applications to appropriate offices of the municipality/city for approval.

(d) Participate in the conduct of fishery resources management studies or researches that need to be undertaken in the barangay.

(e) Create a law enforcement task force/committee in coordination with LGUs and law enforcement as its enforcement arm.

(f) In collaboration with the designed prosecutor, file complaints with administrative and/or judicial bodies against those who commit violations of fisheries and environmental laws, rules and regulations.

(g) Participate in the protection of fishery reserves and sanctuaries and manage the sustainable use of fisheries and aquatic resources.

(h) Assist in the arbitration of disputes between and among fisherfolk over fishery rights and sharing contracts.

(i) Source funds for the implementation of BFARDP.

(j) Take active participation in establishing fishing zones, demarcated areas and in delineating navigational lanes.

(k) Recommend and submit resolutions to the Sangguniang Bayan/Panlungsod concerning fisheries and aquatic resources management and conservation measures for adoption into municipality/city ordinances.

(l) Monitor and gather data in fish landing points as basis for the formulation of management plans and policies.

(m) Participate in the regulation of fishing effort in designated fishing grounds as may be determined by studies of concerned groups and/or agencies.

(n) Maintain a registry of barangay fisherfolk and their organizations.

(o) Promulgate guidelines, screen fisherfolk organizations and recommend to Sangguniang Bayan/Panlungsod for accreditation.

(p) Monitor and evaluate the implementation of BFARDP.

Section 12. Municipal/City Fisheries and Aquatic Resources Management Councils (M/CFARMCs) - There is hereby created in every fishing municipality or city a Municipal/City FARMC.

(o) Municipal Waters - include not only streams, rivers, lakes and tidal waters within the municipality that are not the subject of private ownership and not included within national parks, protected areas, brackish water fishpond leased by the government, and national fishery reserves, refuge and sanctuaries, but also marine waters included between two (2) lines drawn perpendicular to the general coastline from points where the boundary lines of the municipality concerned and extending to fifteen (15) kilometers from such coastline. Where two (2) municipalities are so situated on opposite shores such that there is less than thirty (30) kilometers of marine waters between them, the third line shall be a line equidistant from the opposite shores of the respective municipalities.

(p) Non-Government Organization (NGO) - refers to an agency, institution, a foundation or a group of persons whose purpose is to assist people's organizations/associations in various ways including but not limited to organizing, education, training, and research and/or access to resources.

(q) People's Organization - a bona fide association of citizens with demonstrated capacity to promote the public interest and with identifiable leadership, membership and structure. Its members belong to a sector/who voluntarily band themselves together to work for and by themselves for their own upliftment, development and greater good.

Section 2. Creation of FARMCs - To institutionalize the major role of the local fisherfolk and other resource users in the community based planning and implementation of policies and programs for the management, conservation, development and protection of fisheries and aquatic resources of the municipal waters as defined by the Local Government Code, there is hereby created FARMCs in all barangays, municipalities and cities abutting municipal waters. In bays, gulfs, lakes, and rivers bounded by two or more barangays or municipalities/cities, integrated/lakewide FARMCs shall be created.

Section 3. How to Organize the FARMCs - The FARMCs shall be formed by fisherfolk organizations in the locality to be assisted by the local government units and other government entities. Before organizing the FARMCs, the LGUs, NGOs, fisherfolk and other concerned POs shall undergo consultation and orientation on the formation of FARMCs.

Section 4. How to Elect Fisherfolk Representative to the Council - The Council's regular fisherfolk members shall be elected through a general election among the members of fisherfolk organizations in the locality to be administered by the Sangguniang Barangay in coordination with fisherfolk organizations. To be qualified to vote for and be voted upon as a fisherfolk representative to the council, a fisherfolk must possess the following the following qualifications:

(a) Must not be less than eighteen (18) years of age;

(b) Must have been a resident of the barangay for at least one (1) year; and

(c) Must be directly or personally engaged in taking or culture of fish and other fishery products in municipal waters as their main source of livelihood.

Section 5. Selection Criteria for Regular Members of FARMCs - Regular members of FARMCs shall be selected in accordance with the following:

(a) For fisherfolk representative, including the youth and the women sectors, they shall belong to a fisherfolk organization; residents of the barangay for at least one (1) year; engaged in fishing or fish culture which is their main source of livelihood; and with good moral character and reputation in the community.

(b) For representative from the NGOs and the private sector, they shall be endorsed/ recommended by fisherfolk organizations based on their involvement expertise in fisheries, track record in helping municipal fisherfolk and in protecting the fishery and aquatic resources.

Section 13. Composition - The regular members of the Municipal/City FARMC shall be composed of:

(a) Municipal/City Agriculture and Fishery Officer

(b) Chairperson, Agriculture/Fishery Committee of the Sangguniang Bayan/Panlungsod.

(c) Representative from the Municipal/City Development Council

(d) Representative from accredited non-government organization

(e) Representative from the private sector

(f) At least ten (10) representatives from the fisherfolk, inclusive of the Chairpersons of every Barangay FARMC in each municipality/city including the representatives from the youth and women sectors.

The Council shall adopt rules and regulations necessary to govern its proceedings and election.

Section 14. Powers and Functions - The Municipality/City FARMCs shall exercise the following powers and functions:

(a) Harmonize and integrate into a Municipal/City Fisheries and Aquatic Resources Development Plan (M/CFARDP) the existing Barangay FARDP and submit Plan to the Municipal/City Development Council.

(b) Monitor and evaluate the implementation of the M/CFARDP

(c) Assist law enforcement agencies and support BFARMC law enforcement task forces.committees in the enforcement of fisheries environmental laws, rules, regulations and ordinances.

(d) Assist and support BFARMCs in the filling of complaints with administrative and/or judicial bodies against those who commit violations of the fisheries and environmental laws, rules and regulations in collaboration with designated Prosecutor.

Recommend and submit resolutions to the Sangguniang Bayan/Panlungsod concerning fisheries and aquatic resources management and conservation measures for adoption into municipality/city ordinances.

(e) Endorse applications for fishing and/or license to the appropriate offices of the municipality/city and special agencies for consideration.

(f) Arbitrate disputes between and among barangay over fishery rights.

(h) Source funds for their requirements and assist in sourcing of funds for the needs of the Barangay FARMCs.

(i) Promote ancillary economic activities, including marketing and socioeconomic services.

(j) Assist and support BFARMCs in the conduct of fisheries and aquatic resources management studies and researches in the municipality/city.

(k) Assist and support BFARMCs in establishing fishing zones, demarcated areas and in delineating navigational lanes.

(l) Monitor and gather data in fish landing points as basis for the formulation of management plans and policies.

(m) Assist and support BFARMCs in regulating fishing effort in designated fishing grounds as may be determined by studies conducted by concerned groups and/or agencies.

(n) Maintain a registry of municipal fisherfolk and their organizations.

Section 15. Lakewide Fisheries and Aquatic Resources Management Councils (LFARMCs) - Lakes and other inland fisheries areas, whenever practicable, shall be managed as a unit.

Section 16. Composition - The regular members of the Lakewide FARMCs shall be composed of the following:

(a) Chairperson from the Committee on Agriculture/Fisheries of the Sangguniang Barangay.

(b) One (1) representative from the private sector.

(c) One (1) representative from the NGO.

(d) At least eight (8) representative from the fisherfolk including the youth and women sectors.

The Council shall adopt rules and regulations necessary to govern its proceedings and election.

Section 17. Powers and Functions.

(a) Formulate and submit Lakewide Fisheries and Aquatic Resources Development Plan (LFARDP) to the Barangay Development council and implement it.

(b) Formulate and implement the lakewide policy for the management protection, development and conservation of fisheries and aquatic resources.

(c) Encourage research/studies on fisheries and aquatic resources with the end view of attaining ecological balance and developing appropriate technology.

(d) Promote ancillary economic activities including marketing and socio-economic services.

(e) Assist in the arbitration of disputes between barangays/municipalities/ cities over fishery rights and jurisdictions.

(f) Screen qualified applicants and evaluate applications for fishing permits/licenses and recommend/endorse applications to appropriate offices of the LGUs or special agencies concerned.

(g) Assist law enforcement agencies in the enforcement of fishery laws, rules and regulations and ordinances.

(h) File complaints with administrative and/or judicial bodies in collaboration with the designated prosecutor against those who commit violations of fishery laws, rules and regulations.

(i) Participate in the protection of fishery reserves and sanctuaries and manage the sustainable use of the fisheries and aquatic resources.

(j) Monitor and gather data in fish landing points as basis for the formulation of management plans and policies.

(k) Participate in the regulation of fishing effort in designated fishing grounds as may be determined by studies conducted by concerned group and/or agencies.

(l) Source funds for the implementation of LFARDP.

(m) Maintain a registry of lakewide fisherfolk and their organizations

(n) Monitor and evaluate the implementation of LFARDP.

Section 18. Integrated Fisheries and Aquatic Resources Management Councils - Integrated FARMCs shall be created in bays, gulfs, lakes and rivers bounded by two or more barangays or municipalities/cities.

Section 19. Composition - The regular members of the Integrated FARMCs shall be composed of the following:

(a) One (1) representative from the different chairpersons of the Committee on Agriculture/Fisheries of the Sangguniang Bayan/Panlungsod.

(b) One (1) representative from the different representative of the Municipal/City Agriculture and Fisheries Officers.

(c) One (1) representative from the different representative of the Municipal Development Councils.

(d) One (1) representative from non-government organizations.

(e) One (1) representative from the private sector.

(f) At least nine (9) representative from the fisherfolk including representative from the youth and women sectors.

The Council shall adopt rules and regulations necessary to govern its proceedings and election.

Section 20. Powers and Functions.

(a) Formulate and coordinate the implementation of integrated policy for the management, protection, development and conservation of fisheries and aquatic resources.

(b) Prepare an Integrated Fisheries and Aquatic resources Development Plan (IFARDP) taking into account the municipal/city development plans.

(c) Monitor and assist in the enforcement of fisheries and environmental laws, rules and regulations and ordinances.

(d) Assist in the arbitration disputes between municipalities/cities over fishery rights and jurisdictions.

(e) In collaboration with the designated prosecutor, file complaints with administrative and/or judicial bodies against those who commit violations of fishery laws, rules and regulations.

(f) Participate in the protection of fishery reserves and sanctuaries and manage the sustainable use of the fisheries and aquatic resources.

(g) Monitor and gather data in fish landing points as basis for the formulation of management plans and policies.

(h) Participate in the regulation of fishing effort in designated fishing grounds as may be determined by studies conducted by concerned groups and/or agencies.

(i) Source funds for the implementation of IFARDP.

(j) Monitor/evaluate the implementation of IFARDP.

Section 21. Technical Assistance - The Department of Agriculture, Environment and Natural Resources, Interior and Local Government, Justice, the Commission on Human Rights, including other government agencies concerned with the management, protection, development and conservation of fisheries and aquatic resources shall provide continuous technical assistance to FARMCs and fisherfolk organizations/ cooperatives. this assistance shall include, but not limited to project planning, implementation and monitoring, training, research development, project feasibility studies, law enforcement, legal and human rights assistance, post-harvest facilities, fund sourcing, marketing facilities, extension of credit, mariculture and aquaculture undertaking, formation and strengthening of fisherfolk organizations/cooperatives, conservation/environmental measures, fisherfolk resettlement/housing projects, medical, education and other services. The Department of Interior and Local Government through the Local Government Units shall monitor the assistance extended to fisherfolk in all levels.

Section 22. Law Enforcement - To implement fisheries and environmental laws effectively, the FARMCs in coordination with PNP-MARICOM, Philippine Coast Guard and other law enforcement and technical agencies, shall initiate formulation of workable programs that include activities such as, but not limited to: Information campaign, education and training, up to-date consultations between resource users/fisherfolk organizations and enforcement /prosecution agencies, and regular monitoring and surveillance through team efforts. In the enforcement of fisheries and environmental, laws the Department of Justice (DOJ) shall ensure that deputized FARMC member and fisherfolk and their organizations shall have access to free legal services from the Public Attorney's Office in protecting their rights while carrying out their assigned duties.

Section 23. Deputation of FARMC Members and Fisherfolk - To effectively carry out the provisions of the Executive Order, FARMC members and fisherfolk leaders/ officers shall undergo rigid training on law enforcement whereby qualified FARMC members and fisherfolk leaders/officers shall be deputized as fish wardens and environmental and natural resources officers by DA/BFAR. DENR and LGU. The Department of Agriculture, Environment and Natural Resources, Justice and Interior and Local Government together with FARMCs shall develop a comprehensive training program for individual fisherfolk, and fisherfolk organizations/ cooperative on a continuing basis.

Section 24. Government Agencies - Government agencies or offices such as DENR, DA/BFAR, LGUs, LLDA and other special agencies having jurisdiction over municipal waters by virtue of specials laws shall integrate the plans and policies formulated by FARMCs into their agency/corporate policies and plans of operation for implementation.

Section 25. Guidelines for the Evaluation of Projects and Applications - The FARMCs shall be guided with the following rules in evaluating projects and issuances of permit/licenses for the appropriate use and sustainable development of fisheries and aquatic resources.

(a) It shall be limited to provide protection to the capability of the particular resource to renew itself to optimum harvestable levels.

(b) It shall not endanger the economic and ecologically viability of the resources in a designated area.

(c) It shall protect the rights of fisherfolk for preferential use of the resources.

(d) All projects that will have an impact on fish and fishery/aquatic resources are required to submit an Environmental Impact Statement (EIS) for evaluation by the Local Government Units concerned and FARMCs for the issuance of a certification to proceed with the project besides the requirements of other concerned government agencies.

Section 26. Licensing Procedure

(a) The FARMCs shall determine the fishery resources, fishery areas, fishing vessels and their tonnage, and fishing gears for which fishing and licenses shall be issued by appropriate government agencies.

(b) The FARMCs shall make public areas/fishery resources subject for fishery licensing within two (2) months prior to the acceptance of applications for designated fishery.

(c) Fishery license/permits shall be granted only to qualified individual fisherfolk, fisherfolk organizations/cooperative residing in the coastal /lakeshore areas for at least three (3) years, renewable after that on condition that the provisions of the license are fulfilled.

(d) Fishery license/permits shall not be transferred by lease, sale or mortgage. Any violations of this shall constitute grounds for the cancellation of the license granted and a disqualification of subsequent applications by the same person, organization/cooperative.

Section 27. Appeal - All decisions and actions of the FARMCs are appealable to appropriate local government units and/or special agencies and other government instrumentalities.

Section 28. Existing Fisheries and Aquatic Resources Management Councils - Fisheries and aquatic resources management councils already existing and organized before the approval of the Executive Order shall be duly recognized as FARMCs: Provided however, that such councils shall maintain at least 3/4 of the regular members belonging to municipal fisherfolk.

Section 29. Registry of Fisherfolk - The listing of individual fisherfolk and fisherfolk organizations/cooperatives in fishing and other ancillary industries in coastal/lakeshore areas shall be done by the FARMCs in coordination with the LGUs or special agencies. FARMCs shall therefore maintain a registry of barangay/ municipality/city fisherfolk and fisherfolk organizations/cooperative.

Section 30. Reporting and Monitoring System - All technical agencies concerned shall provide technical assistance and support to FARMCs in developing a reporting and monitoring system on all aspects of the activities and operation of fisherfolk and their organization/cooperatives. This system shall render the following data, but not limited to: number of fishers, fishing boats, catch effort and fishing violations and other related fisheries and aquatic resources activities. Such data will be collated and returned to the FARMCs for their planning exercise.

Section 31. Maintenance and Operation of FARMCs - The initial amount of FIVE MILLION PESOS (P5,000.000.00) form DA-BFAR shall be exclusively for organizing, consultation, training/seminar, and information campaign for the formation of FARMCs in priority areas to be identified and determined by fisherfolk organizations, including support to existing management councils which will be piloted in priority areas to be identified and determined by fisherfolk organizations with the approval of the Fisherfolk Council of Leaders and the DA-BFAR. The fund shall be administered by DA-BFAR through a trust fund and BFAR shall authorized to retain an appropriate amount for administrative expenses like consultations, coordination and meetings with representatives of fisherfolk organizations. Thereafter, all government agencies mentioned herein, including the Office of the President, shall allocate an annual appropriations to finance the activities of the FARMCs to be included in the budget of the Flagship Champions mentioned herein under the Social Reform Agenda.

Section 32. Repealing Clause - All orders, rules and regulations or parts thereof, inconsistent with the provisions of this Joint Administrative Order are hereby repealed or modified accordingly.

Section 33. Effectivity - This Joint Administrative Order shall take effect immediately upon approval.

Issued this 22nd day of April 1996 in Quezon City, Philippines.

WHEREAS, the Philippine Constitution provides for the preferential option for the poorest of the poor sector of our society;

WHEREAS, the municipal fishing sector, through having a significant contribution to the Philippine economy, is one of the marginalized sectors in our society;

WHEREAS, 40 percent of the country's population are founds in the coastal areas and 8 to 10 million of them are directly and indirectly relying on fisheries for subsistence livelihood;

WHEREAS, 80 percent of these communities are characterized by extreme poverty, lack of alternative livelihood and inadequate basic service delivery;

WHEREAS, the Local Government Code of 1991 grant organizations and cooperatives of marginal fisherfolk preferential right to erect fish corrals, oyster, mussel or aquatic beds or bangus fry areas, within a definite zone of the municipal waters;

NOW THEREFORE , pursuant to the directive of the President of the Philippines issued to the secretaries of the department of Agriculture and Department of Interior and Local Government dated 15 March 1996 and in consonance with Section 149 (b) of the LGC of 1991, the following guidelines are hereby issued:

Section 1. Coverage - The 15 km municipal waters shall include both marine and inland waters.

Section 2. Process of Granting Preferential Right.

a. The Municipality/City Fisheries and Aquatic Resources Management Council (MFARMC) shall determine a definite zone or zones within the municipal waters for the purpose above provided. The Sangguniang Bayan/Panlungsod (SB) shall pass a water zoning ordinance based on the determination made by MFARMC.

b. The MFARMC shall maintain a registry of municipal fisherfolk and their organizations.

c. The SB shall post in the municipality hall and least two (2) other strategic places a notice to fisherfolk's organizations or cooperatives to apply for the rights. The same notice shall be posted in a least two (2) strategic places in every fishing barangay and announced once a week for four 94) consecutive weeks.

d. Interested parties shall have a period of 45 days from the posting of the notice to signify their intention to the SB to avail of the preferential right.

e. Should two (2) or more groups signify their intent to avail the right, the MFARMC shall accommodate them, if possible. If this should not be possible, the MFARMC shall draw up the criteria of selecting qualified applicants.

f. Only when no qualified applicants who have signified their intent to avail of the right shall other parties be invited to participate in a public bidding. Provided, however, that the participating bidders should come from the same municipality/city.

g. The chosen organization or cooperative shall pay a reasonable amount to the municipality or city for the rights.

Section 3. Repealing Clause - All orders, rules and regulations or parts thereof, inconsistent with the provisions of this Joint Administrative Order are hereby repealed or modified accordingly.

Section 4. Effectivity - This Order shall take effect immediately upon approval.

Issued this 25th day of April 1996 in Quezon City, Philippines.