EIGHTEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
First Regular Session
SENATE
S.B. NO.
225
O i' rr of tin 2 ' T:t.irn
’19 JUL-3 P7:06
RECfc;
Introduced by SENATOR IMEE R. MARCOS
AN ACT
ESTABLISHING THE
PHILIPPINE CORN RESEARCH INSTITUTE 
AND APPROPRIATING FUNDS THEREFOR
EXPLANATORY NOTE
This bill seeks to establish the Philippine Corn Research Institute (PhilCorn) 
that shall unify, coordinate, fund, implement, and strengthen all corn research and 
development (R&D) as well as manpower training and extension of technologies 
on corn and corn-based farming systems for the production of more food, feeds, 
forage, industrial materials, and bioenergy purposes, including those subsequent 
(or rotation) crops that are grown after rice in rainfed farms and in dryland and 
marginal upland farms in the country.
The national government affirms its goal of ensuring the country's food, 
feeds, forage, and bioenergy security through the development of a modern, 
highly productive and efficient, and competitively secured agriculture. The success 
in this new and comprehensive venture of modernizing corn production and its 
industrialization 
would tremendously 
help 
improve and 
advance 
people's 
employment and livelihood opportunities and thus, reduce poverty and hunger, 
particularly in the rural areas. Therefore, it is important to identify our target areas 
and to consider as well the vulnerable upland and dryland agro-ecosystems where 
many of the resource-poor farmers, particularly the corn farmers, grow their food


and feed crops, including poultry and livestock.
Corn is the second most important national food crop next to rice. It serves 
as the staple food of 20 percent (20%) of the Philippine population. Furthermore, 
corn is the main component of up to 75% of formulated feeds for livestock, 
poultry, and aquaculture fishery. Corn is grown mainly in rainfed farms after rice is 
harvested, and in upland and dryland farms, including steep hillsides, in over 2.5 
million hectares, mostly in Mindanao, Cagayan Valley, Ilocos Region, Central 
Luzon, Central Visayas, and Palawan.
The current national grain yield in various ecological regions is still low, 
ranging from 0.5 to 2.5 tons per hectare in resource-poor areas although yields 
can be as high as 6 to 10 tons for hybrid corn varieties in few favorable farm 
environments, suggesting that there is bright prospect in further increasing com 
yields in specific farm sites. Consequently, the country needs to improve the 
overall productivity not only to achieve self-sufficiency but also to stabilize food 
security and nutrition among our rural population and increase farm incomes. We 
can also target the export markets over the medium- and long-term view.
The demand for both white corn as human food and yellow corn as animal 
feeds and for industrial uses have been increasing rapidly because of the high 
demand of our growing human population, the expanding livestock and poultry 
industries, and the rapid growth of the emerging industrial and bioenergy program 
(RA 9367, The Biofuels Act of 2006) designed to augment imports of fossil-based 
fuel as energy source.
Low crop yields and household income of majority of corn farmers in the 
rainfed, upland, and dryland farms are still far below those obtained in experiment 
stations because of the following factors and situations:
1. 
Limited access of farmers to and adoption of genetically improved seeds;
2. 
Inadequate 
information 
and 
use 
of integrated 
nutrient 
and 
pest
management systems;
3. 
Slow adoption of crop rotation technologies;


4. 
Ineffective drought mitigation approaches;
5. 
Inadequate mechanization of field operations from land preparation to
harvesting and drying;
6. 
Large portions of the corn-growing areas are hilly land with highly variable
soil fertility; and
7. 
Many farms are prone to drought due to erratic rainfall pattern and
therefore irrigation facilities should be installed.
Of the major crops other than rice that support the national economy, 
corn and corn-based farming systems (including crops planted after corn such 
as grain legumes) are the most neglected in research support with an allocation 
of less than 0.05 percent of the gross value added (GVA) compared to rice at
0.25 percent, coconut at 0.30 percent, and sugarcane at 0.5 percent. The 
Philippines has more than three million hectares of upland and dryland areas 
inhabited by about five million households, most of whom are very poor 
especially those in Southern Mindanao, Central and Eastern Visayas, parts of 
Western Luzon, Palawan, and the Bicol Region.
Recurrent droughts and typhoons, environmental degradation due to short- 
duration and erratic rainfall, recurring El Nino and climate change phenomenon, 
soil infertility and inaccessibility of high-quality crop seeds aggravate the low 
productivity and untold hardships of poor corn farming communities.
The millions of degraded lands and infertile soils in the upland and dryland 
areas without irrigation facilities, however, comprise an untapped potential 
resource for the growing of drought-tolerant corn and corn-based cropping 
systems such as, for example, sorghum and grain legumes for food and feeds. 
However, when properly managed, these crops will help ensure household food 
security and sustainable farm productivity.
In the Philippines, there are well established research institutes devoted to 
major crops and disciplines such as: rice, coconut, sugarcane, fiber and abaca, 
cotton, silkworm, tobacco, root crops, biotechnology, plant breeding, crop


protection, farming systems, irrigation, carabao, dairy, fishery, hogs, farm 
mechanization and post-harvest, and other strategic commodities and disciplines.
However, there is no such similar institute, that is devoted to crops such as 
corn and corn-based farming systems that includes crops such as sorghum and 
grain legumes that are important as food, feed, forage, and fuel.
It is time to establish the Philippine Corn Research Institute (PhilCom).
Globalization and climate change require that the country must enhance its 
capability to continuously develop cutting-edge technology and agricultural 
innovations that will enable corn farmers to become prosperous by increasing the 
productivity and quality of their produce through modern farm planting practices, 
harvesting, processing, and packaging techniques for the domestic and global 
markets.
From these observations, it is clear that there is an urgent need to establish 
a proactive, modern agricultural research and extension institute -  The Philippine 
Corn Research Institute (PhilCom) -- that is designed and committed to:
1. Unify, coordinate, fund, implement, and strengthen all national and farm- 
level efforts on Research & Development, Extension (RDE) for corn and 
corn-based farming systems for food, feeds, forage, and fuel;
2. Hasten technology sharing activities that will improve the livelihood of 
resource- poor farming communities and empower them to cope up with 
low 
yields 
owing 
to 
frequent 
occurrences 
of drought, 
warming 
temperatures, land degradation, and other risks arising from environmental 
calamities and climate changes;
3. Ensure adequate and stable supply of quality corn products for domestic 
and foreign markets; and
4. Improve the economic condition and income of farmers in the upland and
dryland regions of the country.


In view of the foregoing and in order to dramatically reduce poverty, 
improve people's employment and livelihood, particularly in the rural areas, and to 
ensure the country's food sufficiency and energy security, approval of this bill is 
strongly recommended.
tMEE R. MARCOS


EIGHTEENTH CONGRESS OF THE 
REPUBLIC OF THE PHIUPPINES 
First Regular Session
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SENATE
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BY:
Introduced by SENATOR IMEE R. MARCOS
AN ACT ESTABLISHING
THE PHILIPPINE CORN RESEARCH INSTITUTE AND 
APPROPRIATING FUNDS THEREFOR
Be it enacted by the Senate and the House o f Representatives o f the Philippines in 
Congress assembled:
1 
Section 1. Short Title. - This Act shall be known as the Philippine Corn
2 
Research Institute Act.
3 
Sec. 2. Philippine Corn Research Institute. - The Philippine Corn
4 
Research Institute, hereinafter referred to as PhilCorn, is hereby established
5 
as a body corporate attached to the Department of Agriculture (DA) to
6 
modernize the corn industry and consequently improve the livelihood and
7 
household income of resource-poor corn farmers in the rainfed, upland, and
8 
dryland farming communities and to empower farmers with the tools of
9 
science and technologies so that they can cope up with problems of low
10 
yields, droughts, floods, land degradation, global warming, and other risks
11 
arising from environmental and climate changes.
12
Sec. 3. Objectives. -The objectives and goals of this Act are as follows:


1 
a) To develop and implement a strong, dynamic, and innovative farmer-
2 
centered 
and 
need-based 
national 
corn 
research 
and 
development,
3 
technology sharing, training, and extension programs;
4 
b) To strengthen the national capacity for corn research and extension,
5 
modernize production and utilization as well as industrial processing of corn
6 
and corn-based crops, diversify harvests through sequential crops to sustain
7 
soil health and fertility and thus enhance long-term higher productivity and
8 
household income;
9 
c) To improve the livelihood and economic conditions of small-scale and
10 
resource-poor farmers who are growing corn after rainfed rice as well as in
11 
upland and dryland farming ecosystems;
12 
d) To work closely with regulatory agencies such as the BPI (i.e.
13 
National Seed Quality Control Laboratory, NSQCL; Quarantine Division, and
14 
National Seed Industry Council, NSIC), Bureau of Agriculture and Fisheries
15 
Standards (BAFS), and private stakeholders (i.e. PhilMaize) and NGOs in the
16 
collection, consen/ation, and utilization of endemic or traditional corn varieties
17 
as well as in the experimentation, planting, and monitoring of corn hybrid and
18 
genetically engineered varieties;
19 
e) To develop and implement sustainable and environment-friendly corn
20 
and corn-based farming systems in the vulnerable and marginal areas like
21 
sloping terrains and evaluate those areas where crops other than corn may be
22 
more appropriate to grow;
23 
f) To gather and provide reliable, up-to-date data to guide policy
24 
makers with regard to corn improvement and development, import and export
25 
volumes, and develop strong linkages among stakeholders in promoting the
26 
national corn industry;


1 
g) To expand employment opportunities through corn and corn-based
2 
farming systems in the rural areas, and ultimately promote the general
3 
welfare of the people through higher efficiency and profitability in production,
4 
industrial products development, processing, and marketing;
5 
h) To initiate and undertake such other related programs in consultation
6 
and partnership with the DA-Bureau of Agricultural Research (DA-BAR), the
7 
DA regional research centers (DA-RIARCs), the Philippine Council for
8 
Agriculture, Aquatic Resources, Forestry, and Natural Resources Research and
9 
Development (PCAARRD), State Colleges and Universities (SCUs), and the
10 
private sector.
11 
Sec. 4. Principal and Regional Offices. - The PhilCorn shall have its
12 
principal office at the Isabela State University or a t any other suitable site as
13 
the Board of Trustees may decide*.
14 
It may also establish other offices, branches, satellite offices, or
15 
subsidiaries in any geographically suitable region in the Philippines that are
16 
major producers of corn and as may be necessary or proper for the
17 
accomplishment of its purposes and objectives.
18 
Sec. 5. Duties and Functions. - The PhilCorn shall exercise the following
19 
duties and functions:
20 
a) Unify, plan, fund, conduct, monitor, and evaluate corn research,
21 
development, 
and 
technology 
promotion 
in 
different 
scientific 
and
22 
technological fields and programs, including but not limited to the following
23 
thrusts: (1) germplasm collection, conservation, breeding, and biotechnology;
24 
(2) 
natural 
resources 
management, 
watershed 
conservation, 
drought
25 
adaptation and mitigation; (3) corn engineering, farm mechanization, and
26 
postharvest management; (4) pest surveillance, early warning system.


1 
integrated pest management, and biological control methods; (5) socio-
2 
economics, 
impact assessment, 
and 
policy advocacy; 
(6) technology
3 
packaging and demonstration, promotion and deployment, training and
4 
communication; (7) processing and industrial-chemical products development;
5 
and (8) corn- based farming systems, farm management improvement, and
6 
experiment station development.
7 
b) Unify, lead, fund, and coordinate a national network of corn and
8 
corn-based farming systems research and extension agencies, centers, and
9 
stations located in the different agro- ecological regions of the country where
10 
corn is a major crop;
11 
c) Develop technologies suitable for the rainfed, upland, and dryland
12 
agro-ecosystems that will maximize the productivity and quality of locally
13 
grown corn and corn-based crops while also reducing production costs and
14 
ensuring long-term and sustainable corn and corn-based production systems
15 
through genetic improvement and environmental resources and conservation
16 
measures;
17 
d) Enhance income of corn farmers by developing suitable corn-based
18 
crops and livestock farming systems as well as crop rotations where
19 
applicable; value-adding corn technologies including on-farm verification,
20 
processing, packaging, marketing, and promotion of economically viable
21 
technologies as well as entrepreneurial skills, giving emphasis on those
22 
aspects necessary for group endeavors of small-scale farmers, cooperatives,
23 
and seed growers;
24 
e) Develop databases needed in the identification and preparation of
25 
necessary policy recommendations towards efficient, highly productive and
26 
competitive 
corn 
industry 
and 
corn-based 
farming 
systems 
through
27 
appropriate socio-economic measures and public-private sector mobilization


1 
and participation;
2 
f) Organize and develop strong training and communication programs
3 
for corn and corn-based farming systems scientists, research managers, and
4 
extension specialists to enable them 
undertake effective and timely
5 
technology promotion of packaged technologies among clusters of farmers
6 
and corporate growers by utilizing modern extension systems such as
7 
information, education, and communication (lEC) technology and participatory
8 
social mobilization procedures;
9 
g) Publish and disseminate research and extension findings and
10 
recommendations through scientific journals, books, technical and extension
11 
bulletins, videos, and other print and communication channels.
12 
Sec. 6. Corporate Powers. - The PhilCorn shall exercise the following
13 
corporate powers:
14 
a) Exercise all the powers of a corporation under the general
15 
corporation law, in so far as such powers are not inconsistent with the
16 
provisions of this Act;
17 
b) Enter into, make and execute contracts and agreements of any kind
18 
or nature, and to sue and be sued in its corporate name;
19 
c) Borrow funds and obtain loans from all sources, whether local or
20 
foreign and whether government or private, to help finance its research
21 
programs and its capital and operating expenditures, or support to farmer
22 
entrepreneurial activities;
23 
d) Invest in, purchase or otherwise acquire, own, lease, mortgage,
24 
pledge, sell, assign, convey, exchange, encumber, borrow, or otherwise deal
25 
in real and/or personal properties of whatever kind and nature, or any interest


1 
therein, including shares of stock, bonds, notes, securities, and other
2 
evidences of indebtedness of natural or juridical persons, whether domestic or
3 
foreign and whether government or private;
4 
e) Receive and acquire from any person, government and private
5 
entities, whether foreign or domestic, or from any corporation, partnership,
6 
association or other entity such characters, licenses, franchises, rights,
7 
privileges, concessions, assistance, grants, donations, loans, and contributions
8 
consisting of such properties, real or personal, including funds and valuable
9 
effects, as may be useful, necessary or proper to finance its research, capital
10 
and operating expenditures or otherwise carry out its purposes and
11 
objectives, and to administer the same in accordance with the terms and
12 
agreement consistent with its purposes and objectives; and
13 
f) Acquire from the government, whether national or local or from any
14 
person, corporation, partnership, association or other entity, such characters,
15 
franchises, 
rights, 
privileges, 
assistance, 
financial 
or 
otherwise 
and
16 
concessions as may be conducive to and necessary or proper for the
17 
attainment of the purposes and objectives of PhilCorn.
18 
Sec. 7. Board o f Trustees. - The Board of Trustees, hereinafter referred
19 
to as the Board, shall exercise all the corporate functions and powers of the
20 
PhilCorn and shall control all its businesses, activities, and properties that are
21 
relevant to the goals and functions of the Institute.
22 
The Board shall be composed of the Secretary of Agriculture or his
23 
designate as ex- officio Chairperson and fourteen (14) members from the
24 
following agencies and sectors:
25 
a) 
Executive Director of the Philippine Council for Agriculture,
26 
Aquaculture, Forestry, and Natural Resources Research and


2
3
4
5
6
7
8 
9
10
11
12
13
14
15
16
17
18
19
20 
21 
22
1
Development (PCAARRD) of the Department of Science and 
Technology (DOST) who will act as Co-Chairperson;
b) 
Director of the Bureau of Agricultural Research (BAR) who will 
act as Vice-Chairperson;
c) 
Regional 
Executive 
Director (RED) 
representing 
the DA 
Regional Field Offices (DA-RFOs);
d) 
Undersecretary of the Department of Budget and Management 
(DBM);
e) 
Director of the Agriculture Division of the National Economic 
and Development Authority (NEDA);
f) 
Director of the DA-Philippine Council for Agriculture and 
Fisheries (DA-PCAF);
g) 
two (2) University Presidents from the State Universities and 
Colleges (SUCs) representing major corn producing and corn- 
based agriculture regions;
h) 
four (4) private sector representatives, namely: one each from 
among the 
national 
outstanding 
corn 
farmers, 
farmers' 
organizations or federations (Philippine Maize Federations, 
Inc.), private companies engaged in corn research and seed 
production, and the livestock/poultry industry; and
i) 
two (2) distinguished scientists from the public and private 
sectors.
23 
The credentials of private sector representatives shall be evaluated and
24 
scrutinized by competent members of the Board.
25 
b) The term of office of the members of the Board who are heads or
26 
officials from their respective agencies or institutions shall be co-terminus with
27 
their respective appointments; Provided, however, That the term of office of
28 
the Regional Executive Director who represents the DA-RFOs where corn is a


1 
major crop and the four (4) private sector representatives shall be for five
2 
years without prejudice to a reappointment for another five years based on
3 
merits and excellent performance in the Board. The PhilCorn Executive
4 
Director shall serve as Secretary of the Board. All government officials in the
5 
Board shall serve as ex-officio members and shall not receive any salary or
6 
compensation.
7 
c) The Chairperson, Co-Chairperson, Vice-Chairperson, and members of
8 
the Board shall receive per diem, as the Board may determine, for each Board
9 
meeting actually attended; Provided, however. That such members shall also
10 
be entitled to reimbursable transportation and representation allowances in
11 
going to and coming from board meetings and in transacting official business
12 
for the Institute.
13 
d) The Board shall meet regularly at least once (1) every quarter or as
14 
often as the exigencies of the service demands. The presence of the
15 
Chairperson, Co-Chairperson or Vice-Chairperson and at least seven (7)
16 
members of the Board shall constitute a quorum and the majority vote of the
17 
members present, there being a quorum, shall be necessary for the adoption
18 
of any resolution, rule, regulation, decision or any other act of the Board.
19 
Sec. 8. Powers and Functions o f the Board. - The PhilCorn Board shall
20 
exercise the following powers and functions;
21 
a) Adopt its by-laws and promulgate policies, rules, regulations, and
22 
procedures for the efficient and effective operations of the Institute;
23 
b) To define and guide in the formulation of the vision, mission,
24 
strategy, and research- extension priorities, general plans and programs, and
25 
guidelines for the proper operation and management of the PhilCorn in
26 
accordance with its purposes and objectives and in line with research planning


1 
and monitoring policies and procedures of PCAARRD and BAR;
2 
c) To approve the PhilCorn's organizational structure and staffing
3 
pattern, operation and capital expenditures, and financial budget prepared in
4 
accordance with its corporate plans;
5 
d) To approve the plantilla and salary ranges, benefits, privileges,
6 
bonuses, scholarship and manpower development, housing facilities and
7 
support to staff, and other terms and conditions of service, including
8 
promotion systems similar to those in the State Universities and Colleges
9 
(SUCs) and the Department of Science and Technology (DOST) as well as life
10 
and medical insurances and retirement schemes or benefits for all officers and
11 
employees of the PhilCorn, upon recommendation of the Executive Director;
12 
e) To appoint, promote, transfer, suspend, remove or otherwise
13 
discipline any subordinate officer or employee of the Institute, upon
14 
recommendation of the Executive Director;
15 
f) To create such committee or committees and appoint the members
16 
thereof, as may be necessary and proper for the management of the PhilCorn
17 
or for the attainment of its purposes and objectives; and
18 
g) To exercise such other powers and functions and perform such other
19 
acts as may be necessary or proper for the attainment of the purposes and
20 
objectives of the PhilCorn, or as may be delegated by the Secretary of
21 
Agriculture or any competent authority through the Board of Trustees.
22 
Sec. 9. Executive Director and Other Officers. - The PhilCorn shall be
23 
headed by an Executive Director who shall be appointed by the President of
24 
the Philippines, upon recommendation of the Board of the Trustees (BOT),
25 
based on the findings and recommendations of a Search Committee duly
26 
organized and commissioned by the Board for such purpose.


1 
a) The Executive Director shall serve for a term of five (5) years,
2 
subject to a one term extension of five (5) years for very meritorious
3 
performance, or a maximum total of ten (10) years without further extension
4 
for any reason whatsoever; Provided, however, That there shall be a reserved
5 
plantilla position of the same salary rate for the outgoing Executive Director, if
6 
he is previously a holder of a plantilla position at PhilCorn and shall not yet be
7 
of retirement age at the end of his term as Executive Director; Provided,
8 
further, That the Board of Trustees, through a Search Committee duly
9 
organized at least four (4) months earlier, shall have chosen a new Executive
10 
Director who shall immediately assume office during a turn-over ceremony on
11 
the expiration date of the term of office of the outgoing Executive Director;
12 
and Provided, finally, that no Officer-in-Charge shall be designated as head of
13 
the Institute.
14 
b) The Executive Director shall be assisted by two (2) Deputy Executive
15 
Directors, Division Heads, and Branch Station Directors or Managers as the
16 
Board may determine, to carry out the purposes and objectives of the
17 
PhilCorn.
18 
Sec. 10. Powers, Functions, and Duties o f the Executive Director. - The
19 
Executive Director shall be directly responsible to the Board and shall have the
20 
following powers, functions, and duties;
21 
a) To exercise dynamic leadership, create a vision, map out the mission,
22 
provide strategic direction, and undertake systematic supervision over the
23 
planning and implementation of all research, development, technology sharing
24 
programs, training and extension, upgrading of scientists and staff of the
25 
Institute and, in general, administer and direct the management and
26 
operation in a transparent and corrupt-free administration of the PhilCorn;
27 
b) To execute all contracts, incur obligations, acquire and dispose of
10


1 
assets, and deliver documents on behalf of the PhilCorn within the framework
2 
of the authority delegated by the Board;
3 
c) To implement and enforce policies, decisions, orders, rules, and
4 
regulations that are promulgated or adopted by the Board;
5 
d) To arrange for the conduct of an External Program and Management
6 
Review (EPMR) by a Panel of Experts every 5 years or as often as necessary
7 
in order to understand the output and impact of PhilCorn programs to the
8 
farmers and stakeholders of the corn industry and to provide guidance to
9 
management in charting the future of the institute; and
10 
e) To exercise such other powers and functions and performs such
11 
other duties as may be authorized, assigned, or delegated by the Board.
12 
Sec. 
11. 
Technical Advisory Committee. 
- A Technical Advisory
13 
Committee (TAC), organized and approved by the Board, shall assist the
14 
Executive Director, Division heads. Program Directors, and Branch Station
15 
Directors or Managers in pursuing inter-agency activities and participation of
16 
the national RD&E network.
17 
The TAC shall be composed of not more than nine (9) members, or as
18 
the Board may designate, who are heads, representatives, or scientists and
19 
experts of agencies, government or private, that are actively involved in any
20 
critical aspect of corn research, corn-based farming systems, seed quality
21 
certification, training and extension, production and processing, marketing
22 
and consumption, policy advocacy, and capacity building. TAC members may
23 
be assigned to assist specific programs, divisions, or branch stations as the
24 
services may require in achieving the goals of PhilCorn.
25 
Sec 12. Services o f Government Personnel. - The PhilCorn may, for the
26 
purpose of its research, development, training, and extension activities, obtain
11


1 
and secure the services of scholars and scientists as well as specialists in
2 
research, training, extension, and communication of any unit, experiment
3 
station, institute or center of the Department of Agriculture, University of
4 
Southern Mindanao, Central Mindanao University, Visayan State University,
5 
University of the Philippines Los Banos, Mariano Marcos State University,
6 
Isabela State University, Central Luzon State University, and other agencies
7 
and universities of the national government and foreign institutions.
8 
Those personnel of national and international reputations, from public
9 
or private institutions, shall be designated as visiting scientists and research
10 
fellows for a term of one year to five years to assist in conducting major
11 
research problems of strategic importance and consequences in pursuing the
12 
goals and objectives of the Institute. The selected personnel may be paid
13 
such honoraria or incentives acceptable to all concerned and as may be fixed
14 
and authorized by the Board.
15 
Sec. 13. Buildings, Facilities, and Equipment -The PhilCorn is hereby
16 
authorized to own, acquire, borrow, lease, plan, and construct or repair
17 
buildings, laboratories, experimental farms, and other facilities as may be
18 
necessary or proper to attain its purposes and objectives. It may also utilize
19 
facilities of any unit of any cooperating SUC, the Department of Agriculture,
20 
and of the national government that is engaged, directly or indirectly, in
21 
activities that relate to agriculture, farming systems, corn production or
22 
products development of the corn industry.
23 
The PhilCorn is further authorized to purchase equipment, materials and
24 
articles, either locally or abroad, as may be necessary or proper to carry out
25 
its powers and functions and attain its purposes and objectives.
26 
It shall be exempted from the payment of any and all forms of taxes,
27 
duties, fees and charges on any and all such importation of equipment.
12


1 
materials, articles, and services; Provided, however. That the same are not
2 
available locally on favorable terms.
3 
The PhilCorn shall be authorized to expropriate lands for corn and corn-
4 
based farming systems research and development purposes provided that just
5 
compensation is paid to the owners of the land. If the land belongs to the
6 
government or is inalienable, the Institute is granted automatic title to the
7 
land.
8 
Likewise, all lands, farms, plantations, whether directly or indirectly
9 
owned, used, utilized or administered by the PhilCorn and those that it may
10 
hereinafter acquire or utilize for research, training, extension and technology
11 
demonstration, and seed production purposes shall be exempted from the
12 
coverage of the Comprehensive Agrarian Reform Law.
13 
Sec. 14. Appropriation. - The Secretary of Agriculture and the Secretary
14 
of Budget and Management are hereby authorized and directed to set aside
15 
out of the existing funds of the Department of Agriculture the amount of Four
16 
Hundred Million Pesos (P400M) as the initial fund of the PhilCorn for CY 2019
17 
to be used for its initial operations, including provisions for salary of
18 
personnel, conduct of research and technology promotion, construction of
19 
laboratories and other physical infrastructures, purchase and development of
20 
experimental 
farms, 
and 
acquisition 
and 
purchase 
of equipment for
21 
laboratories, farm development, and offices. This initial amount shall be
22 
drawn from the DA National Corn Program, BAR appropriations for research,
23 
RP-Japan Fertilizer Grant (KR-2), Public Law PL 480 (PL480), and/or any other
24 
existing bilateral funding sources in the Department of Agriculture. Thereafter,
25 
the government contribution to the Institute's operations shall be provided for
26 
under its own Key Budgetary Inclusion (KBI) in the Annual General
27 
Appropriations Act.
13


1 
Furthermore, the PhilCorn Board of Trustees shall seek financial support
2 
from foreign donors such as Japan International Japan Agency (JICA), Korean
3 
International 
Cooperation 
Agency 
(KOICA), 
Australian 
Agency 
for
4 
International Development (AusAID), United States Agency for International
5 
Development (USAID), and similar institutions for the establishment and
6 
improvement of PhilCorn infrastructures, laboratory facilities, field experiment
7 
station development, and training and scholarship of qualified personnel.
8 
The annual appropriations herein provided shall be subject to the fiscal
9 
control and management procedures provided for in Executive Order 714 of
10 
1981. All funds, savings, grants, and income of the PhilCorn shall constitute a
11 
revolving fund, to be managed as Trust Fund, and shall be considered part of
12 
the funds automatically released to the PhilCorn.
13 
Sec. 15. Applicability o f Civil Service Laws. -The PhilCorn and its officers
14 
and employees shall be subject to the Civil Service Law, rules and regulations;
15 
Provided, however, That all technical personnel shall be selected on the basis
16 
of the highest standards of merit and fitness for public officials and
17 
employees, preferably those with postgraduate degrees, to be determined in
18 
accordance with such policies and guidelines as may be approved by the
19 
Board.
20 
Sec. 16. Auditor. - The Chairperson of the Commission on Audit (COA)
21 
shall be the Ex- Officio Auditor of the PhilCorn. For this purpose, he may
22 
appoint a representative who shall be the auditor of the PhilCorn, together
23 
with the necessary personnel to assist the COA representative in the
24 
performance of his duties.
25 
Sec. 17. Legal Counsel. - The Government Corporate Counsel shall be
26 
the Legal Counsel of the PhilCorn; Provided, however. That the PhilCorn may
27 
establish its own legal unit, subject to the supervision and control of the
14


1 
Government Corporate Counsel, to handle the day-to-day legal matters
2 
affecting the affairs of the PhilCorn.
3 
Sec. 18. Annual Report. -The Board shall submit to the President of the
4 
Philippines through the Secretary of Agriculture an annual report, together
5 
with the audit report on the relevant accounts, generally dealing with the
6 
activities and operations of the PhilCorn.
7 
Sec. 19. Separability Clause. - The provisions of this Act are hereby
8 
declared 
separable. 
If any 
portion 
hereof shall 
be 
held 
invalid 
or
9 
unconstitutional, such invalidity or unconstitutionality shall not affect the other
10 
provisions, which shall remain in full force and effect in their entirety.
11 
Sec. 20. Effectivity. - This Act shall take effect within fifteen (15) days
12 
from its publication in the Official Gazette or in any national newspaper of
13 
general circulation.
14 
Approved,
15