THIRTEENTH CONGRESS OF THE REPUBLI 
1 
OF THE PHILIPPINES 
First Regular Session 
S E N A T E  
* 
s. i;. 
33 
‘ 
introduced by Senator S. R. Osmeiia 111 
EXPLANATORY NOTE 
The coconut industry, involving some 3.3. million hectares of land 
continues to be among the top earners of the country and is a source of income 
for at least thirty percent (30%) of the country’s total population. Today, a new 
plague threatens the coconut industry in the Philippines. This is the rampant 
cutting of coconut trees as coconut farms promise nothing to coconut farmers but 
the prospect of continued impoverishment. 
During his presidency, Ferdinand Marcos established the Coconut Levy, 
total collections of which between I973 to I992 have been estimated at a 
staggering P9.695 billion. Although the Coconut Levy was for all intents and 
purposes a tax on coconut products collected from coconut farmers, provisions of 
P.D. No. 961, E.O. No. 490 and P.D. No. 1468 attempted to legalize the 
allegation that the coco levy funds partook of the nature of private funds. To 
quote Article I l l  Sec. 5 of P.D. 1468: ‘lxxx the intention being that said fund and 
disbursements thereof as herein authorized for the benefit of the coconut farmers 
shall be owned by them, in their own private capacities xxx”. This became the 
basis for the use of the coco levy funds for the acquisition of assets which 
benefited a few individuals close to the powers that be, but had, however little to 
do with the welfare of coconut farmers in general. These assets include: 
(a) majority shares of stock of the United Coconut Planters’ Bank (UCPB) the 
so-called coconut farmers’ bank, which however for all intents and 
purposes is no different from the ordinary profit-oriented, risk-shy 
commercial bank; 
(b) one-third (113) of the shares of stock of San Miguel Corporation; 
(c) the United Coconut Planters Life Assurance Corporation; 
(d) the Coconut Marketing Corporation; 
(e) the United Coconut Chemicals, Inc; and 
(9 the luxurious Coconut Palace. 
Notwithstanding the dubious effects of the Marcos Decrees, the coconut 
levy funds should in justice be restored to the 1.4 million farmers who became 
involuntary contributors to the fund, but have yet to realize beneficial returns from 
their contributions. 
This bill seeks to correct the injustice wrought upon the coconut farmers 
by strengthening the Philippine Coconut Authority to better serve the needs and 
interests of the coconut farmers. This bill also reaffirms the Coconut Levy Funds 
as Public Funds, and reconstitutes the same in the Coconut Industry 


Rehabilitation and Development Fund which will be placed in trust for, and for the 
benefit of the farmers, to be administered by the Philippine Coconut Authority, 
subject to 
agreement between the Authority 
and accredited 
national 
organizations of small farmers. 
In view of the foregoing, the immediate approval of this bill is earnestly 
requested. 
SERGIO OSMENA I I I 
Senator 


THIRTEENTH CONGRESS OF THE REPUBLIC 
) 
OF THE PHILIPPINES 
) 
First Regular Session 
1 
S E N A T E  
$3. N& 
Introduced by Senator S. R. OsmeAa 111 
AN ACT 
ST RE N G T H EN I N G TH E PHIL I PPI N E C 0 C 0 NUT AUT H 0 RlTY, I N C R €AS I N G 
THE SMALL COCONUT FARMERS' PARTICIPATION IN, AND THEIR 
BENEFITS FROM, THE COCONUT INDUSTRY, AND BOLSTERING THE 
INDUSTRY'S 
DEVELOPMENT, 
AMENDING 
FOR 
THE 
PURPOSE 
EIGHT, AS AMENDED, OTHERWISE KNOWN AS THE REVISED COCONUT 
INDUSTRY CODE. 
PRESIDENTIAL DECREE NUMBERED FOURTEEN HUNDRED AND SIXTY- 
Be it enacted by the Senate and House of Representatives of the Philippines in 
Congress assembled: 
I 
SECTION 1. Section, Article 1 of Presidential Decree No. 1468, as 
2 
amended, is hereby amended to read as follows: 
3 
"SEC. 2. Declaration of Policy. - It is hereby declared to be the 
4 
policy of the State to promote the rapid integrated and sustainable 
5 
development and growth of the coconut and other palm oil industry in all 
6 
its aspects and to ensure that the coconut farmers, ESPECIALLY THE 
7 
SMALL COCONUT FARMERS, TILLERS, WORKERS AND OWNER- 
8 
CULTIVATORS WHO COMPRISE THE OVERWHELMING MAJORITY 
9 
OF THE PEOPLE IN THE COCONUT INDUSTRY, become direct 
10 
participants in, and beneficiaries of, such development and growth.'' 
I I  
SEC. 2. Paragraph (b), (c), (e) and (h) of Section 3, Article II of the same 
12 
Decree are hereby amended to read as follows: 
13 
"b) to formulate and implement a nationwide replanting program using 
14 
RECOMMENDED [precocious] high-yielding [hybrid] seed nuts and, in the 


1 
2 
3 
4 
5 
6 
7 
s 
9 
I O  
11 
12 
13 
14 
15 
IG 
17 
IS 
19 
20 
21 
22 
23 
24 
25 
36 
27 
2s 
29 
discretion of the Philippine Coconut Authority, the program may include 
new areas provided that existing coconut farmers shall always be given 
priority; 
c) 
to 
distribute, 
for 
free, 
to 
coconut 
farmers 
the 
HIGH- 
YlELDING[hybrid] coconut seed nuts herein authorized to be acquired; 
e) 
in coordination with the HIGH-YIELDING [hybrid] coconut seed 
farm herein authorized to be established, to conduct genetic and 
agricultural researches and investigations for the improvement of the 
coconut palm productivity; 
h) 
to regulate the marketing and the exportation of ALL COCONUT 
PRODUCTS [copra] and by-products by establishing standards for 
domestic trade and export and, thereafter, to conduct an inspection o of all 
COCONUT PRODUCTS [copra] and its by-products proposed for export 
to determine if they conform to the standards established; 
The same Section is hereby further amended by deleting paragraphs 0) 
and (p) and adding a new paragraph to be denominated as paragraph (k), which 
shall read as follows: 
K) 
TO ENCOURAGE AND ASSIST, BUT NOT TO CONTROL 
OR DIRECT, THE GENUINE SMALL COCONUT FARMERS, TILLERS, 
WORKERS AND OWNER-CULTIVATORS TO FORM THEIR OWN 
INDEPENDENT ORGANIZATION, FREE FROM DOMINANCE OR 
PATERNALISM 
BY 
GOVERNMENT, 
LANLORDS 
OR 
OTHER 
INDIVIDUALS OR GROUPS, SO THAT THEY WILL BE IN A POSITION 
TO PROTECT AND ADVANCE THEIR OWN INTERESTS AND THE 
DEVELOPMENT OF THE COCONUT AND OTHER PALM OIL 
INDUSTRY IN COOPERATION AND COORDINATION WITH THE 
AUTHORITY AND OTHER GOVERNMENT AGENCIES: 
The paragraphs (k), (c) and (r) are hereby adjusted as paragraphs (j), (p)) 
and (q), respectively. 


I 
2 
3 
4 
5 
6 
7 
8 
9 
10 
I I  
12 
13 
14 
15 
I6 
17 
I S  
19 
20 
21 
22 
23 
24 
25 
26 
27 
Section 3. The first paragraph of Section 4, Article of the same Decree is 
hereby amended to read as follows: 
“SEC. 3. Governing Board. - The corporate powers and duties of 
the Authority shall be vested in and exercised by a GOVERNING Board of 
Nine (9) [seven (7)] members to be appointed by the President AS 
FOLLOWS: 
A) 
A 
REPRESENTATIVE 
FROM THE 
SCIENCE 
AND 
TECHNOLOGY SECTOR; 
6) 
THE ADMINISTRATOR OF THE PHILIPPJNE COCONUT 
AUTH 0 RlTY; 
C) 
A 
REPRESENTATIVE OF THE 
DEPARTMENT 
OF 
AGRARIAN REFORM; 
D) 
THREE 
(3) 
REPRESENTATIVES 
OF 
THE 
SMALL 
COCONUT FARMERS TO BE APPOINTED FROM AMONG THE 
NOMINEES OF THE SMALL COCONUT FARMERS ORGANIZATIONS 
ACCREDITED BY THE AUTHORITY TO COME ONE EACH FROM 
LUZIN, VISAYAS AND MINDANAO; AND 
E) 
TWO (2) REPRESENTATIVES TO COME ONE EACH 
FROM 
AMONG 
THE 
NOMINEES 
OF 
THE 
RESPECTIVE 
ORGANIZATION OF COCONUT PRODUCTS MANUFACTURERS AND 
COCONUT BY-PRODUCTS PROCESSORS ACCREDITED BY THE 
AUTH 0 Rl TY; 
F) 
A REPRESENTATIVE FROM THE NON-GOVERNMENT 
ORGANIZATION (NGO) INVOLVED IN THE COCONUT INDUSTRY; 
THE PRESIDENT SHALL DESIGNATE FROM AMONG THE 
MEMBERS OF THE CHAIRMAN OF THE BOARD.” 
SEC. 4. Section 6, Article I I  of the same Decree is hereby amended to 
2s 
read as follows: 


1 
“SEC. 6. Compensafion of the Members of the Board. - The 
2 
members of the Board shall receive a per diem of [two hundred] TWO 
3 
THOUSAND pesos for each meeting actually attended: Provided, That 
4 
such per diem shall not exceed [one] TEN thousand pesos during any 
5 
month for each member.” 
6 
7 
8 
ARTICLE I l l  
9 
COCONUT FARMERS 
SEC. 5. A new Article is hereby inserted after the last section of Article II 
to be denominated as Article Ill to read as follows: 
10 
“SECTION 
I .  PRlNClPAL 
BENEFICIARIES. - WITHOUT 
1 1  
PREJUDICE TO THE RIGHTS OF OTHER SECTORS, THE COCONUT 
12 
FARMERS, ESPECIALLY THE SMALL COCONUT FARMERS, WHO 
13 
CULTIVATE THE LAND PERSONALLY OR PHYSICALLY EITHER AS A 
14 
TENANT OR LESSEE, FARM WORKER, OWNER-CULTIVATOR AND 
15 
WHO DERIVE THEIR MAJOR SOURCE OF INCOME FROM THE 
16 
COCONUT FARM, AND THROUGH THEM THE ENTIRE COCONUT 
17 
INDUSTRY SHALL BE THE PRINCIPAL BENEFICIARIES OF THIS ACT. 
IS 
“SEC. 2. SELF-INITIATlVE AND SELF-RELIANCE. - IN ORDER 
19 
TO BENEFIT FROM THE INDUSTRY ON A SUSTAINABLE AND LONG- 
20 
TERM BASIS, THE SMALL COCONUT FARMERS SHALL DEVELOP 
21 
22 
23 
24 
25 
26 
27 
28 
SELF-INITIATIVE 
AND 
SELF-RELIANCE 
FOR 
EFFECTIVE 
PARTICIPATION 
IN, 
AND 
OPTIMUM 
BENEFITS 
FROM, THE 
DEVELOPMENT OF THE INDUSTRY, AFTER CONSULTATION AND 
UPON REQUEST OF THE FARMERS, AND FOR THIS PURPOSE, THE 
AUTHORITY SHALL EXTEND TO THEM ALL POSSIBLE ASSISTANCE. 
“SEC. 3. ASSISTANCE TO SMALL FARMERS. - UPON THE 
REQUEST OF THE COCONUT FARMERS, THE AUTHORITY SHALL 
ASSIST THEM IN THE FOLLOWNG WAYS, AMONG OTHERS; 


I 
2 
3 
4 
5 
6 
7 
S 
9 
I O  
I 1  
12 
13 
14 
15 
16 
17 
IS 
19 
20 
21 
22 
23 
24 
25 
26 
27 
2s 
’9 
“A) 
INFORMING AND MAKING THEM DEEPLY AWARE OF 
THEIR SITUATION, THEIR PROBLEMS, THE PROBLEMS OF THE 
COCONUT INDUSTRY INCLUDING THE OPPORTUNITIES AND 
PROSPECTS THEREOF, AND AT THE SAME TIME ACCEPT 
INFORMATION FROM THE FARMERS THEMSELVES OF THEIR 
UNDERSTANDING 
OF 
THEIR 
OWN 
PROBLEMS 
AND 
OPPORTUN IT1 ES; 
“B) 
ENCOURAGING 
AND 
HELPING THEM 
FORM AND 
STRENGTHEN 
THEIR 
VOLUNTARY 
AND 
INDEPENDENT 
ORGANIZATIONS; 
ELIMINATING 
THE 
OBSTACLES 
TO 
THE 
EXERCISE OF THEIR RIGHT TO SELF-ORGANIZATION THRU A 
PROGRAM OF INFORMATION, INDUCATINO AND TRAINING AND 
THROUGH OTHER WAYS OF FACILITATING THE ESTABLISHMENT 
AND GROWTH OF THEIR OWN ORGANIZATION(S); 
“C) 
TEACHING AND TRAINING THEM DIRECTLY OR THRU 
APPROPRIATE AGENCIES, 
SUCH AS THE DEPARTMENT OF 
SCIENCE AND TECHNOLOGY, TO FULLY UTILIZE THE COCONUT 
AND ITS BY-PRODUCTS LIKE COCONUT MEAT AND BAGASSE, 
COCONUT OIL, COCONUT WATER, COCONUT SHELL, COCONUT 
COIR AND DUST, AND OTHER BY-PRODUCTS; 
“D) 
ASSISTING 
THEM 
IN 
ACQUIRING 
THE 
LATEST 
TECHNOLOGY AND EQUIPMENT AS WELL AS IN RAISING FUNDS 
FOR THE PROCESSING OF ALL COCONUT PRODCUTS AND BY- 
PRODUCTS ON THE COTTAGE, VILLAGE, AND HIGHER LEVELS; 
“E) 
PROVIDING THEM THE KNOW-HOW AND SKILLS FOR 
THE EFFICIENT MARKETING OF THEIR COCONUT PRODUCTS AND 
BY-PRODUCTS 
INDIVIDUALLY 
OR 
THROUGH 
THEIR 
ORGANIZATION/COOPERATlVES BOTH IN THE DOMESTIC AND IN 
THE 
INTERNATIONAL 
MARKET 
SO 
THAT 
THE 
BENEFITS 


I 
2 
3 
4 
5 
6 
7 
S 
9 
10 
I I  
12 
13 
14 
15 
16 
17 
IS 
19 
20 
21 
22 
23 
24 
25 
26 
27 
28 
29 
THEREFROM WILL DIRECTLY ACCRUE TO THEM RATHER THAN TO 
MIDDLEMEN; 
“F) 
COOPERATING 
WITH 
THEM 
INDIVIDUALLY 
AND 
COLLECTIVELY, THROUGH 
THEIR 
ORGANIZATIONS, 
IN THE 
MONITORING OF ILLEGAL CUTTING OF COCONUT TREES, ILLEGAL 
CONVERSION OF COCONUT LANDS TO OTHER AGRICULTURAL OR 
NON-AGRICULTURAL 
USES, 
AND 
ALL 
CASES 
OF 
ILLEGAL 
EJECTMENT 
OR 
EXPLOITATION 
OF 
COCONUT 
FARMERS, 
TENANTS, LESSEES, WORKERS AND OWNER-CULTIVATORS, AND 
FILING, OR ASSISTING THEM IN THE FILING AND PROSECUTION 
OR, APPROPRIATE ADMINISTRATIVE AND JUDICIAL CASES TO 
HELP PROTECT THEIR RIGHTS; 
“G) 
HELPING 
THEM 
IN 
ThE 
PRODUCTION 
AND/OR 
ACQUISITION OF ORGANIC FERTILIZERS AS WELL AS OF BIO- 
ORGANIC 
TECHNIQUES 
OF 
SOIL 
ENRICHMENT 
AND 
BEST 
CONTROL; AND MOST IMPORTANTLY. 
“H) 
HELPING THEM IN PRESSING FOR THE IMMEDIATE 
AND THOROUGH IMPLEMENTATION OF AGRARIAN REFORM IN ALL 
COCONUT LANDS.” 
SEC. 6. Upon the effectivity of this Act, every reference in existing laws to 
the Philippine Coconut Producers Federation (COCOFED) shall, subject to the 
established rights of said federation and consistent with the letter and spirit of this 
Act, pertain to such genuine national organization, coalition, confederation, or 
association of coconut farmers accredited by the Philippine Coconut Authority as 
truly representing the coconut farmers, especially small coconut farmers, for all 
purposes favorable to them. 
SEC. 7. The whole of Article Ill, entitled Levies, of Presidential Decree No. 
1468, as amended, is hereby renumbered as Article IV and substituted to read as 
fo I lows : 


1 
2 
3 
4 
5 
6 
7 
8 
9 
10 
1 1  
12 
13 
14 
15 
I G  
17 
18 
19 
20 
21 
22 
23 
24 
25 
36 
27 
28 
“ARTICLE IV 
“LEVIES 
“SECTION 1. LEVIES AND PUBLIC FUNDS. - ALL COCONUT 
LEVIES ARE HEREBY REAFFIRMED AND DECLARED AS PUBLIC 
TRUST FUNDS. 
“SEC. 2. 
COCONUT INDUSTRY REHABILITA TlON AND 
DEVELOPMENT FUNDS. - ALL THE FUNDS ESTABLISHED FROM 
THE PROCEEDS OF THE LEVIES, INCLUDING THE COCONUT 
INVESTMENT FUND, THE COCONUT CONSUMERS STABILIZATION 
FUND, THE COCONUT INDUSTRY DEVELOPMENT FUND, THE 
COCONUT DEVELOMENT FUND, AND OTHERS, AS WELL AS ALL 
THE ASSETS ACQUIRED OR ESTABLISHED THEREFROM, AND ALL 
THE OTHER ASSETS SET UP USING THE COCONUT LEVY 
COLECTIONS SHALL FORM PART OF A SINGLE FUND WHICH IS 
HEREBY CREATED AND WHICH SHALL BE KNOWN AS THE 
COCONUT INDUSTRY REHABILITATION AND DEVELOPMENT FUND 
(C I RD F) . 
“SEC. 3. NATURE AND PRIMARY PURPOSE OR CIRDF. - THE 
COCONUT INDUSTRY REHABILITATION AND DEVELOPMENT FUND 
SHALL NOT BE PART OF THE GENERAL FUNDS OF THE NATIONAL 
GOVERNMENT AND SHALL BE USED EXCLUSIVELY FOR THE 
REHABILITATION 
AND 
DEVELOPMENT 
OF 
THE 
COCONUT 
INDUSTRY AND THE UPLIFTMENT OF THE LIVES OF THOSE 
DEPENDENT ON IT, PARTICULARLY THE SMALL COCONUT 
FARMERS, THE CIRDF SHALL BE SUBJECT TO AUDITING RULES 
AND REGULATIONS OF THE COMMISSION ON AUDIT. 
“SEC. 4. CIRDF UNDER THE PCA. -THE COCONUT INDUSTRY 
REHABILITATION AND DEVELOPMENT FUND SHALL BE HELD, 


1 
2 
3 
4 
5 
6 
7 
S 
9 
10 
I I  
12 
13 
14 
15 
16 
17 
18 
19 
20 
21 
22 
23 
24 
25 
36 
27 
2s 
29 
ADMINISTERED, UTILIZED, AND/OR DISPOSED OF UNDER THE 
PROVISION OF SECTION IN HEREOF. 
“SEC. 5. INVENTORY OF COCONUT LEVY-FUNDED ASSETS. - 
THE AUTHORITY AND THE COMMISSION ON AUDIT SHALL 
IMMEDIATELY CONDUCT A THOROUGH INVENTORY OF ALL 
ASSETS 
ACQUIRED 
OR 
FUNDED 
BY 
THE 
COCUNT 
LEVY 
COLLECTIONS, WITHIN SIX (6) MONTHS AFTER THE EFFECTIVITY 
OF THIS ACT, THE AUTHORITY AND THE COMMISSION ON AUDIT 
SHALL MAKE A PUBLIC DISCLOSURE OF THEIR FINDINGS. 
“SEC. 6. AUDITING OR EXPENDITURES MADE OUT OF THE 
LEVY COLLECT/ONS. - THE COMMISSION ON AUDIT SHALL 
CONDUCT 
AN 
AUDIT 
OF 
ALL 
THE 
DISBURSEMENT 
OR 
EXPENDITURES MADE OUT OF THE LEVY COLLECTIONS WITh THE 
END IN VIEW OF DETERMINING WHTHER THOSE EXPENDITURES 
ARE IN ACCORDANCE WITH THE PURPOSES FOR WHICH THE 
LEVIES WHERE COLLECTED AND THE RULES AND REGULATIONS 
CONCERNING THE DISBURSEMENT OF PUBLIC FUNDS. ON THE 
IMPROPER OR ILLEGAL USE OF THE LEVY COLLECTIONS, THE 
COMMISSION ON AUDIT, THE PRESIDENTIAL COMMISSION AND 
GOOD GOVERNMENT, THE AUTHORITY, THE OFFICE OF THE 
SOLICITOR GENERAL AND OTHER CONCERNED GOVERNMENT 
AGENCIES SHALL IMMEDIATELY INSTITUTE THE NECESSARY 
LEGAL ACTIONS WITH THE PRIMARY OBJECTIVE OF RECOVERING 
THE AMOUNT(S) IMPROPERLY USED. 
“SEC. 7. TRANSFER OF COCONUT LEVY-FUNDED ASSETS TO 
THE PCA - IN COORDINATION WITH THE OFFICE OF THE 
SOLICITOR GENERAL AND OTHER APPROPRIATE GOVERNMENT 
AGENCIES, THE AUTHORITY SHALL DRAW UP PLANS OF ACTION 
FOR THE IMMEDIATE TRANSFER OF THE COCONUT LEVY-FUNDED 


1 
2 
3 
4 
5 
6 
7 
8 
9 
10 
I 1  
12 
13 
14 
15 
I6 
17 
18 
19 
20 
21 
22 
23 
24 
25 
26 
27 
28 
29 
ASSETS TO THE AUTHORITY AS THE ADMINISTRATOR OF THE 
FUND. 
“S EC. 8. SA FEGUA RDiNG AND U TlLlZA TIONOF LE VY-FUNDED 
- THE AUTHORITY SHALL, IN COORDINATION WITH AND 
ASSETS. 
WITH THE CONSENT OF, THE COCONUT FARMERS AND THEIR 
ORGANIZATIONS, STUDY AND IMPLEMENT THE BEST MANNER BY 
WHICH EACH OF THESE COCONUT LEVY-FUNDED. ASSETS CAN BE 
SAFEGUARDED AND EVENTUALLY UTILIZED FOR THE PROGRAMS 
THAT THE AUTHORITY SHALL PURSUE, WITH THE EMPHASIS ON, 
AND PRIORITY FOR, THE UPLIFTMENT OF THE LIVES OF THE 
COCONUT FARMERS. 
“SEC. 9. 
UNITED COCONUT PLANTERS BANK. - THE 
AUTHORITY, AS ADMINISTRATOR OF THE CIRDF, SHALL REDEFINE 
OR REDIRECT THE POLICIES OF THE UNITED COCONUT PLANTERS 
BANK TOWARDS THE PURSUANCE OF THE VERY PURPOSE FOR 
WHICH IT WAS ESTABLISHED, THAT IS TO PROVIDE THE COCONUT 
FARMERS 
READILY 
AVAILABLE 
CREDIT 
FACILITIES 
AT 
REASONABLE RATES. 
“SEC. I O .  COLLECTlON OF UNCOLLECTED COCONUT LEVIES. 
- THE AUTHORITY SHALL MAKE A PUBLIC DISCLOSURE OF THE 
COCONUT LEVIES THAT HAVE NOT YET BEEN COLLECTED. IT 
SHALL DRAW UP AND IMPLEMENT A MORE EFFECTIVE AND 
EFFICIENT WAY OF COLLECTING THE UNCOLLECTED LEVIES 
WHICH SHALL BE ADDED TO THE CIRDF. 
“SEC. 11. ADMINISTRATION AND DISPOSITION OF ALL FUNDS 
AND ASSETS. - ALL FUNDS AND ASSETS HELD OR TO BE HELD BY 
THE AUTHORITY IN TRUST FOR, AND FOR THE BENEFIT OF, THE 
COCONUT FARMERS SHALL BE ADMINISTERED, UTILIZED AND/OR 
DISPOSED OF WHOLLY OR PARTIALLY UNDER EITHER OF THE 


1 
2 
3 
4 
5 
6 
7 
8 
9 
I O  
I I  
12 
13 
14 
15 
16 
17 
I8 
19 
20 
21 
22 
23 
24 
25 
26 
27 
28 
29 
FOLLOWING ARRANGEMENTS, DEPENDING ON THE MUTUAL 
AGREEMENT BETWEEN THE AUTHORITY AND THE ACCREDITED 
NATIONAL ORGANIZATIONS OF THE COCONUT FARMERS: 
“A) 
THE FUNDS AND ASSETS SHALL BE RETAINED BY THE 
AUTHORITY, AND THE AUTHORITY SHALL ADMINISTER, UTILIZE 
AND/OR DISPOSE OF THEM AS AGREED TO BY THE AUTHORITY 
AND THE DULY REGISTERED AND ACCREDITED ORGANIZATIONS 
OF THE SMALL COCONUT FARMERS, OR 
“B) 
THE FUNDS AND ASSETS SHALL BE TRANSFERRED TO 
THE SMALL COCONUT FARMERS ORGANIZATIONS THRU A SINGLE 
ACCREDITED 
NATIONAL 
ORGANIZATION 
FORMED 
AND 
AUTHORIZED BY THEM, FOR THE BENEFIT OF THE COCONUT 
FARMERS: PROVIDED, THAT THE TRANSFER OF FUNDS AND 
ASSETS SHALL BE GRADUAL, DEPENDING ON THE CAPABILITY OF 
THE FARMERS AND THEIR ORGANIZATIONS TO HANDLE THEM: 
PROVIDED, FURTHER, THAT THE AUTHORITY SHALL ASSIST IN, 
AND 
EXERCISE 
CONTINUING 
SUPERVISION 
OVER 
THE 
ADMINISTRATION, UTILIZATION, AND DISPOSITION OF SAID FUNDS 
AND ASSETS TO INSURE THEIR HONEST AND 
EFFECTIVE 
MANAGEMENT FOR THE OPTIMUM BENEFIT OF THE COCONUT 
FARMERS: PROVIDED, FURTHERMORE, THAT FOR THIS PURPOSE, 
THE 
SIGNATURE 
AND 
APPROVAL 
OF 
THE 
AUTHORITY’S 
ADMINISTRATOR OR HIS REPRESENTATIVE SHALL BE REQUIRED 
FOR EVERY DEPOSIT, ACQUISITION , UTI LlZATlON , DISBURSEMENT 
AND ALIENATION OF SAID FUNDS, AS WELL AS FOR EVERY 
CONTRACT OR AGREEMENT ENTERED INTO CONCERNING SAID 
FUNDS: AND PROVIDED, FINALLY, THAT THE AUTHORITY AND THE 
ACCREDITED 
NATIONAL 
FEDERATION OF 
SMALL 
COCONUT 
FARMERS SHALL PROMULGATE THE RULES AND REGULATIONS 


1 
FOR 
THE 
ENFORCEMENT 
AND 
OBSERVANCE 
OF 
ITS 
2 
SUPERVISORY POWER.” 
3 
4 
5 
G 
SEC. 8. Articles IV and V of the same Decree are hereby requmbered as 
Articles V and VI, respectively. 
SEC. 9. The incumbent members of the Board of the Philippine Coconut 
Authority shall continue to discharge their duties and responsibilities as such until 
7 
8 
9 
10 
1 1  
12 
13 
14 
15 
16 
17 
IS 
19 
their successors shall have been appointed and qualified. 
SEC. I O ,  Any person who is criminally liable as of the effectivity of this Act 
for violating any of the laws relating to the coconut levies herein repealed or 
amended shall remain so criminally liable and nothing herein shall extinguish 
such criminal liability. 
SEC. 11. The provisions of this Act are hereby declared to be separable. 
If, for any reason, a provision of this Act is held void or unconstitutional, the same 
shall not affect the validity of the rest of the provisions of this Act. 
SEC. 12. All laws, decrees, executive orders, rules and regulations, and 
other issuance of parts thereof, inconsistent with this Act are hereby repealed, 
amended or modified accordingly. 
SEC. 13. This Act shall take effect fifteen (15) days from its publication in 
the Official Gazette or in a national newspaper of general circulation. 
20 
Approved.