Article III
Utilization and Exploitation of Fishery Resources
Section 12. Preferential Treatment to Municipal Fisherfolks and Their oOrganization in the Grant of Exclusive Fishery Privileges The duly registered and accredited organizations, cooperatives of municipal fisherfolks and peoples’ organizations which have municipal fishers comprising the majority of members shall have preference in the grant of exclusive fishery privilege by the Sangguniang Bayan, pursuant to Section 149 of the Local Government Code of 1991: Provided, That the Sangguniang Bayan shall be guided by the following procedures: a. The Sangguniang Bayan shall post in the municipal hall and in at least two (2) other strategic places a notice to fishers’ organizations or cooperatives to apply for the exclusive fishery privileges. The notice shall also be posted in at least two (2) conspicuous places in every fishing Barangay and announced once a week for four (4) consecutive weeks. The same notice shall indicate the fee for the grant of the exclusive fishery privilege. b. Interested parties shall have a period of forty-five (45) days from the posting of the notice within which to signify their intention to the Sangguniang Bayan to avail of the exclusive fishery privilege. c. Should two (2) or more groups signify their intent to avail the exclusive fishery privilege, the Sangguniang Bayan shall accommodate them, if possible. If this should not be possible, the Sangguniang Bayan, in consultation with the FARMC, shall draw up guidelines to resolve the matter. d. Only when no organization has signified its intent to avail the exclusive privilege or after the failure to grant the exclusive fishery privilege to the qualified organization shall other parties be invited to participate in a public bidding, provided, however, that interested bidders should have fishery license issued by the Municipal Government. e. A Committee on Auction is hereby created to be composed of: (1) the Municipal Treasurer, as Chairman; (2) the Municipal Mayor as Co-Chairman; (3) Municipal Agriculturist as member; and, (4) two (2) members of the Sangguniang Bayan, as members. Changes in the membership of the said committee may be made at the sound discretion of the Sangguniang BayanThe Sangguniang Bayan through a resolution shall award the exclusive fishery privilege. f. In case no qualified fisherfolks cooperative or organization has been granted exclusive fishery privilege, the exclusive fishery privilege may be auctioned to qualified private bidders through an auction under the following process: (1.) The Sangguniang Bayan, through a resolution, shall cause the posting of a Notice of Auction announcing the commencement of the auction. (2.) The auction may be done through sealed bids or through viva voz, upon the decision of the Committee on Auction. (3.) The Notice of Auction must specify the time, date and place of the auction, the amount needed as deposit, the manner of bidding (whether through sealed bids or through viva voz) and the Zones in which the grant of the exclusive fishery privilege are up for auction. (4.) Interested bidders must post a Bond as guarantee of good faith in an amount equivalent to not less than two (2) years of the exclusive privilege fee prescribed for the particular zone where the exclusive fishery privilege is up for auction, for satisfactory compliance with the terms of the lease or grant. The bond shall be in cash, in real estate situated within the Philippines or by a surety company authorized for the purpose. (5.) The highest bidder will be awarded the grant of the exclusive fishery privilege. However, other conditions necessary to ensure the environmental sustainability and economic feasibility of the fishery project shall also be taken into account in determining the winning bid. g. The exclusive fishery privilege shall be awarded by the Sangguniang Bayan through a resolution. h. The grantee of the exclusive fishery privilege shall pay the corresponding fee prescribed for its grant to the municipal government through the Office of the Municipal Treasurer.
Section 13. Limitation on the Grant of Exclusive Fishery Privilege The following limitation shall be strictly followed: 1. The exclusive fishery privilege shall be binding and legal for three (3) __________year(s). 2. The exclusive fishery privilege shall not be sub-contracted or sub-leased, in whole or in part. 3. The membersmembers’ fisher folk organizations or cooperatives whose households are already in possession of any Exclusive Fishery Privilege, other than for fish capture cannot enjoy the Exclusive Fishery Privilege granted to the organization or cooperative.
Section 14. Grounds for the Cancellation of the Exclusive Fishery Privilege The following are the grounds for the cancellation of the exclusive fishery privilege: 1. Construction and operation of fish corral and/or gathering of bangus fry outside of the designated area in the municipal waters; 2. Violation of any fisheries and environment-related ordinances; 3. Use of dummies; 4. Failure to comply with national laws, rules and regulation; and 5. When public welfare so requires as deemed by the municipal government in consolation with the FARMC. Provided, That a voluntary written request to forego the exclusive fishery privilege by the holder is a sufficient ground for the cancellation of the privilege.