Republic of the Philippines

HOUSE OF REPRESENTATIVES y ? * RECEIVED
Quezon City = pave 29 JL 15
TWENTIETH CONGRESS

First Regular Session

HOUSE BILL noZ 4 58
Introduced by Rep. Dante S. Garcia and Rep. Kenneth Paolo C. Tereng

EXPLANATORY NOTE

As early as 1990, a systematic approach to urban agriculture was introduced in Quezon City with
its Urban Agriculture Program conceptualized by the Bureau of Agricultural Research. The
program aimed to develop technologies on the raising and use of crops, livestock, and fish in the
urban setting. To date, the Department of Agriculture (DA) continues to strengthen its urban
agriculture program, which aims to address the food needs in the urban areas that cushion the
impact of the Covid-19 pandemic

The bill’s main objective is to promote the development of modern, cost-effective, space-efficient,
and environmentally-safe agriculture technologies in urban areas to achieve sustainable food
production and food security, ensure adequate nutrition and public health, and improve the quality
of life of urban populations.

‘The proposed law covers idle or abandoned government or private lands, subdivisions or villages,
public housing, open spaces in all urban, peri-urban and urbanizable areas in the country; and all
available and appropriate land resources in state or private universities and colleges, and military
camps suitable for growing crops and raising poultry, livestock and aquaculture;

The program can be implemented in coordination with the Local Government Units (LGUs),
national government agencies, particularly the DA and its attached agencies, Department of Human
Settlements and Urban Development (DHSUD), Department of Education (DepEd) and the
Commission on Higher Education (CHED), non-government organizations, the private sectors, and
the academe.

‘The law also entitles subdivision and condominium developers who comply with the urban
agriculture practices provided for in Sec 5 of the Act, to avail of the incentives provided for under
Republic Act No. 10771, otherwise known as Philippine Green Jobs Act of 2016. And, provides
that loans relating to urban agriculture activities extended by government and private banks to
participating individuals, corporations and partnerships shall be considered as compliance to
Republic Act No. 10000, otherwise known as the Agri-Agra Reform Credit Act of 2009.

It is high time to institutionalize the said program, and augment considerable allocation under the
start the implementation of the same. Thus, I urge Congress that immediate
of the proposed law shall be prioritized.

EA Cf
GARCIA KENNETH PAOLO ©. TERENG
La Union KM Ngayon Na Partylist

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Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

TWENTIETH CONGRESS
First Regular Session

2458

HOUSE BILL Ni

Introduced by Rep. Dante S. Garcia and Rep. Kenneth Paolo C. Tereng

AN ACT
PROMOTING THE DEVELOPMENT OF THE BAMBOO INDUSTRY BY
STRENGTHENING THE PHILIPPINE BAMBOO INDUSTRY DEVELOPMENT
COUNCIL, CREATING THE BAMBOO INDUSTRY RESEARCH AND DEVELOPMENT
CENTER, PROVIDING INCENTIVES FOR BAMBOO PLANTATION DEVELOPMENT,
AND APPROPRIATING FUNDS THEREFOR

Be it enacted by the Senate and House of Representatives of the Philippines in Congress

assembled:

SECTION 1. Short Title. This Act shall be known as the ‘Philippine Bamboo Industry
Development Act.”

SEC. 2. Declaration of Policy. \t is the policy of the State to promote and support
industries that generate employment especially in the rural areas, reduce poverty, foster a
sustainable environment, and mitigate the impacts of climate change.

It shall also be the policy of the State to foster a self-reliant and independent economy that
supports indigenous, scientific and technological capabilities, and skills. To this end, the State shall
recognize the strategic importance of the bamboo as a sturdy, versatile, and replenishable material
that can be a sustainable source of livelihood and catalyst for agricultural productivity.

The State shall likewise ensure the integrated and continuous development of the Philippine
bamboo industry through policies and programs that encourage the planting of bamboo, accelerate
the development of bamboo-based products and designs, and promote Philippine bamboo products
in international markets. It shall establish a program for a sustainable utilization, propagation and
promotion of bamboo as furniture, food, construction and design material, and other uses.


SEC. 3. The Philippine Bamboo Industry Development Program (PBIDP). The
PBIDCshall formulate the Philippine Bamboo Industry Development Program which shall include
programs and projects for the scientific propagation, development and management, processing,
utilization, business development, and commercialization of Philippine bamboo and bamboo
products, through the cooperation of all stakeholders of the industry that include producers of raw
materials, processors, marketing and promotion service providers, and concemed national agencies
and local government units (LGUs).

SEC. 4. Objectives of the Philippine Bamboo Industry Development Program. The PBIDP
shall aimto make the Philippine bamboo industry competitive in the local and global markets and
provide opportunities for local employment and the establishment of bamboo-based community

enterprises. The PBIDP shall:

(a) Ensurethat the bamboo industry has sufficient quality raw materials through the
establishment and management of bamboo nurseries and plantations;

() Ensure that the bamboo industry continuously receives from the research and
development sector relevant technologies and new products;

(©) Ensure that the industry receives pertinent and accurate data from the PBIDC upon
which the industry can make business decisions;

(d) Promoteinvestment in the bamboo industry by establishing bamboo plantations and
bamboo processing operations, andproviding substantial incentives to investors;

(e) Provide skilled labor and manpower through continuous relevant capacity building;

(f) Provide continuous training and capacity building in the bamboo industry development;

(g) Ensure provision of locally manufactured machines of improved capacity and quality at
competitive costs;

(h) Ensure markets of bamboo products locally and globally; and

( Ensure sustainable resources for implementing the bamboo industry development

program.

SEC. 5. Role of the Philippine Bamboo Industry Development Council (PBIDC).The
Philippine Bamboo Industry Development Council (PBIDC), created under Executive Order No.
879, series of 2010, hereinafter referred to as the Council shall provide the overall policy and
program directions of various agencies and instrumentalities to ensure the implementation of the

Philippine Bamboo Industry Development Program (PBIDP).

The Council shall be administratively attached to the Department of Trade and Industry
(DTI) and shall now be composed of the following:


a) Secretary of the Department of Trade and Industry (DTI) as Chairperson;

b) Secretary of the Department of Environment and Natural Resources (DENR);
©) Secretary of the Department of Agriculture (DA);

4d) Secretary of the Department of Education (DepEd);

Secretary of the Department of Science and Technology (DOS);

f) Secretary of the Department of Labor and Employment (DOLE);

2) Executive Director of the Bamboo Industry Research and Development Center;

©

h) Chairperson of the National Commission of Indigenous Peoples;
i) National President of the League of Municipalities of the Philippines;
Executive Director of the Union of Local Authorities of the Philippines;

k) Two (2) Representatives from Non-Government Organizations;

1) One Representative from a reputable private industry association; and

m) One Representative each from the Bamboo Farmers, the Bamboo Manufacturers, and the
Bamboo Processors’ Associations.

The members of the Council shall be entitled to an honorarium for each meeting attended,

in accordance with existing rules and regulations.

The PBIDC shall promulgate such rules and regulations as may be necessary for the

attainment of the objectives of this Act.

SEC. 6. Bamboo Industry Research and Development Center (BIRDC).The Bamboo
Industry Research and Development Center, hereinafter referred to as the Center, is hereby created
to serve as the secretariat of the Council to be headed by an Executive Director. The Center shall
consist of divisions as may be necessary to ensure the effective implementation of the goals and
objectives of the Center, including the following functions: research and development; trade
promotion and education; networking and linkages; internal administration and finance; and such

other divisions as may be necessary.

The organizational structure, staffing pattern and compensation schedule of the Center shall
be prepared in accordance with existing laws, rules and regulations. Other member agencies of the
Council shall provide additional administrative and technical staff support to the Center upon the
determination by the Council of the necessity for such augmentation.

‘The Center shall perform the following powers and functions:


a)

Promote and encourage the establishment and management of bamboo nurseries,
plantations and processing facilities that would accelerate the production and
commercialization of bamboo and various bamboo products;

b) Promote the commercialization and market access of appropriate, innovative and viable
bamboo industry development technologies and products;

c)

Monitor and evaluate the performance of bamboo industry development programs and
projects;
d

Coordinate and partner with other government agencies in the implementation of
bamboo industry development programs and projects;

e)

Coordinate and partner with the private sector, people's organizations and non-
governmental organizations, and the academe in providing assistance on matters
pertaining to bamboo industry development;

f) Accept grants, donations and contributions from local and international donors and such
similar sources of funds for the implementation of the provisions of this Act, subject to
the usual budget, accounting and auditing rules and regulations;

2) Conduct capability-building initiatives for farmers, processors, designers, and other

stakeholders in the bamboo industry;

h) Conduct research and development in partnership with appropriate government

agencies to advance sustainable bamboo industry development practices;

i) Supervise the implementation of the plans and programs of the Council;

i) Manage and administer the projects identified by the Council;

k) Conduct, in cooperation or partnership with appropriate government agencies, a
periodic review of the Philippine Bamboo Industry Development Roadmap; and

1) Submit periodic reports to the Council on the progress and accomplishment of programs
and projects.

SEC. 7. The Executive Director of the Center. The Executive Director shall be appointed
by the Chairperson of the PBIDC with the approval of the Council. The Executive Director shall
be a citizen and resident of the Philippines and must possess executive and management
experience of at least three (3) years, and considerable knowledge about the bamboo industry.

In addition, the Executive Director shall have the following powers and functions:
a) Oversee the day-to-day operations of the Center;

b) Provide technical and administrative support to the Council;

©) Assist the Council in the performance of its tasks; and

d) Perform such other functions, duties and responsibilities as may be necessary to

implement this Act.


SEC. 8. Support to the Program by Local Government Units. Local government units
(LGUs)shall participate in the implementation of the PBIDP. Each LGU shall establish a Bamboo
Industry Development Council and shall endeavor to capacitate agricultural workers and encourage
entrepreneurs to acquire the needed competencies in harvesting and post-harvesting operations.

Provincial governments shall formulate and implement their respective bamboo industry
development programs within two (2) years from the enactment of this law.

SEC. 9. Incentives for bamboo in plantation development. The following incentives shall
be provided to investors in bamboo plantation development:

a) Exemption from the payment of rent for the use of government lands for commercial
bamboo plantation for the first five (5) years of operation reckoned from the date of the
first harvest of the plantation;

b)

Exemption of private plantations from the requirements to secure a cutting permit for
the harvesting of bamboo and a transport permit for as long as the plantation is
registered with the Community Environment and Natural Resources Office (CENRO) of
the DENR: Provided, that the plantation owner shall inform the CENRO about the date
of harvest, and the estimated volume that of the harvest. Inventory of the plantation
prior to harvest shall not be required, All CENROs shall approve and enter into a
registry, the names of private bamboo plantation investors;

c) Exemption from the payment of forest charges and other fees for taxes that local

government units may impose;
d) No inspection of harvested bamboo at check points:

e) Access to development loans from public financial institutions for plantation

developers;

f) Insurance coverage of plantations and plantation development equipment by the
Philippine Crop Insurance Corporation (PCIC);

g) Tax free importation of plantation development equipment, including tree nursery
facilities, pursuant to Republic Act No. 10863, otherwise known as the Customs
Modernization and Tariff Act;

h) Expenses incurred for plantation operations shall be allowed as deductible expenses for

income tax purposes, subject to the provisions of the National Internal Revenue Code of
1997, as amended: Provided, that the deduction shall only apply to the Taxable Period

when the expenses were incurred;


i) Expenses incurred in the development and operation of a bamboo plantation prior to the
commercial harvest shall be regarded as ordinary and necessary expenses or as capital
expenditure;

i) Prioritized access for plantation developers to credit assistance from government-
owned, controlled and/or supported financial institutions;

k) Acceptance of plantation as collateral for loans in government owned or controlled
banks;

For tenured developer, entitlement to fair compensation upon the premature termination

of the agreement at no fault of the holder: Provided , that all depreciable permanent and
semi-permanent improvements such as roads, buildings, and nurseries including the
planted and standing trees and other forest crops introduced and retained in the area,
shall be properly evaluated: Provided further, that the amount of compensation shall
be mutually agreed upon by both the Department and the tenure-holder: Provided
finally, that in case of disagreement between them, the matter shall be submitted to
arbitration by a mutually acceptable and impartial third party adjudicator;

m) Exportation of bamboo culms from plantation without restrictions in volume;

n) Tax free importation of processing equipment by processors engaged in bamboo
industry, pursuant to Republic Act No. 10863, otherwise known as the Customs
Modernization and Tariff Act; and

©) Inclusion in the annual investment program of the National Economic Development
Authority of industrial bamboo plantations in forest lands and priority access to funds

from external and internal sources.

SEC. 10. Appropriations. The funds necessary to carry out the initial implementation of
this Act shall be charged against the current year’s budget of the DTI. Thereafter, such sums as
may be necessary for the continued implementation of this Act shall be included in the annual
General Appropriations Act.

SEC. 11. Implementing Rules and Regulations. Within sixty (60) days after the effectivity
of this Act, the DTI-PBIDCshall, in coordination with the DENR, and DOST promulgate the rules

and regulations to implement this Act.

SEC. 12. Separability Clause. If any provision of this Act or part hereof is declared invalid
or unconstitutional, the other provisions not affected by such declaration shall remain in full force

and effect.


SEC. 13. Repealing Clause. All laws, executive and administrative orders, rules and
regulations inconsistent with this Act are hereby repealed or amended accordingly.

SEC. 14. Effectivity. This Act shall take effect fifteen (15) days after its publication in the

Official Gazette or in a newspaper of general circulation.

Approved,