14fh CONGRESS OF THE 
1 
REPUBLIC OF THE PHILIPPINES 
1 
First Regular Session 
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Senate Bill No. 
3 3 1  
I n t r o d u c e d  b y  S e n a t o r  E D G A R D O  J. A N G A R A  
Philippine agriculture is in crisis. The country has continually faced the 
problem of 
high food cost; it has the highest food prices among the ASEAN 
countries. And most recently, it experienced shortage of its most important 
staple food: rice. The high cost of food, being wage goods, has affected the 
competitiveness of the country’s industry specially those in export. Compounding 
the problem is high rural poverty. 
Agriculture and Fisheries extension is central to growth and development of 
the agriculture and fisheries sector. How a country manages its agriculture 
knowledge through its extension services is crucial to agriculture growth and 
development. Knowledge at the hands of the producers empowers and gives 
them the competitive edge. Extension, along with Research and Development 
(R&D), has the highest return of investment (ROI) among policy instruments. 
Therefore, it is worth investing on it. 
Agriculture growth should come from knowledge-intensive practices in 
agriculture such as crop intensification. However, knowledge intensive agriculture 
(KIA) is dependent on a dynamic, responsive agriculture and fisheries extension 
with strong linkage to knowledge generation. Unfortunately, Agriculture and 
Fisheries Extension Services (AFES) in the Philippines face serious problems 
that affect its efficiency and effectiveness. 
The extension unit is highly 
fragmented, lacks a coherent direction, demoralized and composed of aging 
personnel who has not fully recovered from the effects of decentralization, weak 
research-extension linkage, underinvestment, and highly politicized structure 
among others. 
The proposed Agriculture and Fisheries Extension bill will address the current 
problems and more. 
The bill seeks to: 


1. Strengthen the country’s extension system by decentralizing it to the 
appropriate level of political unit that provides a viable economic unit 
for agriculture development Le., the province; 
2. Making the national government pay for the salaries and wages of 
extension personnel under the administrative direction of the provincial 
government; 
3. Professionalizing and standardizing the salaries and wages of the 
Local Government Unit (LGU) extension personnel to that of equivalent 
positions in the national government; 
4. Creating a national agency, the Philippine Agriculture & Fisheries 
Extension Agency (PAFEA) to orchestrate, provide national directions, 
set standards of performance, and provide institutionalized financial 
and technical support to the LGUs. 
Hence, the approval of this bill is earnestly sought. 
SENATOR 


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14th CONGRESS OF THE REPUBLIC ) 
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,",*,'' :<:'! 
L.8 
OF THE PHILIPPINES 
1 
First regular Session 
) 
SENATE 
S. No. 
Introduced by SENATOR EDGARDO J. ANGARA 
AN ACT PRESCRIBING THE STRENGTHENING OF THE NATIONAL 
EXTENSION SYSTEM TO ACCELERATE AGRICULTURE AND FISHERIES 
DEVELOPMENT, APPROPRIATING FUNDS THEREFOR AND FOR OTHER 
PURPOSES 
Be it enacted by the Senate and the House of Representatives of the 
Philippines in Congress assembled: 
GENERAL PROVISIONS 
Section 1, Short Title. - This Act shall be known as the "Philippine Agriculture 
and Fisheries Extension Act of 2008." 
Sec. 2. Declaration of Policy. -The goals of the national economy are a more 
equitable distribution of opportunities, income and wealth; a sustained 
increase in the amount of goods and services produced by the nation for the 
benefit of the people; and an expanding productivity as the key to raising the 
quality of life for all, especially the underprivileged. 
The State shall promote industrialization and full employment based on sound 
agricultural development and agrarian reform, through industries that make 


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full and efficient use of human and natural resources, and which are 
competitive in both domestic and foreign markets. In pursuit of these goals, all 
sectors of the economy and all regions of the country shall be given optimum 
opportunity to develop. 
Thus, it is hereby declared the policy of the State to enable those who belong 
to the agriculture and fisheries sector to participate and share in the fruits of 
development and growth in a manner that utilizes the nation’s resources in the 
most efficient and sustainable way possible by establishing a more equitable 
access to assets, income, basic and support services and infrastructure. 
The State shall give priority to promote science, technology and human 
resource development as essentials for national development and progress. 
The State shall utilize research results through information, extension and 
communication services. 
It shall support the development of a national 
extension system that will help accelerate the transformation of agriculture 
and fisheries sectors of the Country from a resource-based industry to a 
technology-based industry. 
The State shall adopt the market approach in assisting the agriculture and 
fisheries sector while recognizing the contribution of said sectors to food 
security, environmental protection, and 
balanced 
urban and 
rural 
development, without neglecting the welfare of the consumers, especially the 
lower income groups. The State shall promote market-oriented policies in 
agricultural production to encourage farmers to shift to more profitable crops. 
The State shall empower the agriculture and fisheries sector to develop and 
sustain themselves to meet present and future needs of the Country. Toward 
this end, the State shall ensure the establishment and development of the 
agriculture and fisheries extension system that increases and sustains its 
contributions to the achievement of the following goals of agriculture 
modernization as mandated by Republic Act 8435: 
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a) Poverty Alleviation and Social Equity - The State shall ensure that the 
poorer sector of the society have equitable access to resources, 
income opportunities, basic and support services and infrastructure; 
b) Food Security - The State shall assure the availability, adequacy, 
accessibility and affordability of quality and nutritious food supplies to 
all at all times: 
c) Rational Use of Resources and Sustainable Development - The State 
shall adopt a rational approach in the allocation of public investment in 
agriculture and fisheries in order to assure efficiency and effectiveness 
in the use of scarce resources and thus obtain optimal return on its 
investments. The State shall promote development that is compatible 
with the preservation of the ecosystem in areas where agriculture and 
fisheries activities are carried out: 
d) Global Competitiveness -The State shall enhance the competitiveness 
of the agriculture and fisheries sector in both domestic and foreign 
markets; and 
e) People Empowerment - The State shall promote people empowerment 
by enabling all citizens through direct participation or through their duly 
elected chosen or designated representatives the opportunity to 
participate in policy formulation and decision making by establishing 
the appropriate mechanisms and by giving them access to information. 
Sec. 3. Definition of Terms. 
"Agricultural and Fisheries Extension Services" (AFES) - refer to the provision 
of training, information, communication support, 
and .other educational 
services by the government, private sector, civil society, and other non- 
government organizations to improve the individual and organizational 
capabilities of clients along the value chain towards increased income and 
improved quality of rural life. 
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“Agricultural Sector” - is the sector engaged in the cultivation of the soil, 
planting of crops, growing of fruit trees, raising of livestock, poultry, or fish, 
including the harvesting and marketing of such farm products, and other farm 
activities and practices. 
“Catalytic Financing” -the provision of financial support to achieve excellence, 
equity and increased investment by the local governments in the 
implementation of agriculture and fisheries extension services towards the 
achievement of national goals. 
“Civil Society” - refers to the group of organizations whose uncoerced 
collective action revolves around shared interests, purposes and values. Civil 
societies are organizations composed of community groups, women’s 
organizations, faith-based organizations, professional associations, trades 
unions, self-help groups, social movements, business associations, coalitions 
and advocacy groups. 
‘’Clients’’ - refer to the producers (farmers, fisherfolk, and agricultural 
processors), traders and consumers along the food value chain. 
“Comparative Advantage” - refers to competitive edge in the provision of 
services or development of a product in terms quality and/or price. It likewise 
refers to the ability to produce a product or provide a service with the greatest 
relative efficiency in the use of resources. 
“Consolidation” - a process of merging agencieslfirms for greater efficiency of 
resources and strategy. 
“Consumers” - are those that acquire goods or services for direct use or 
ownership rather than for resale or use in production and manufacturing. 
“Decentralization” - means the dispersion or distribution of functions and 
power from a central authority to regional and/or local governing bodies; 
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assigning responsibilities to the lowest level of government closest to the 
clients Le., the Local Government Units or LGU’s 
“Empowerment“ - is the expansion of assets and capabilities of people to 
participate in, negotiate with, influence, control and hold accountable 
institutions that affect their lives; it involves providing authority, responsibility, 
and information to people directly engaged on agriculture and fishery 
production, primarily at the level of the farmers, fisherfolk and those engaged 
in food and non-food production and processing, in order to give them 
enhanced economics rights. 
“Extension Policy” - edicts, executive orders, laws, orders, and other course 
of action of the government intended to influence and determine decisions, 
actions, and other matters related to provision of extension services of the 
Country. 
“Fisheries Sector” - is the sector engaged in the production, growing, 
harvesting, processing, marketing, developing, conserving, and managing of 
all aquatic resources and fisheries areas. 
“Fisheries” - refers to all systems or networks of interrelated activities which 
include the 
production, growing, 
harvesting, processing, 
marketing, 
developing, conserving and managing of all aquatic and fisheries areas. 
”Food Security” - refers to the policy objective, plan and strategy of meeting 
the food requirements of the present and future generations, of Filipinos in 
substantial quantity, ensuring the availability and affordability of safe and 
nutritious food to all, either through local production or importation, or both, 
based on the country’s existing and potential resource endowment and 
related production advantages, and consistent with the overall national 
development objectives and policies. 
“Formula grants” - these are national government financial transfers to the 
local governments to support the regular expenditures in the provision of 
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Agriculture and Fisheries Extension Services (AFES) based on a formula that 
takes into consideration, among others, the level of economic development of 
a municipality or a province. . 
“Global Competitiveness” - refers to the ability to compete in terms of price, 
quality and volume of agriculture and fishery products relative to those of 
other countries. 
“Gross Value-Added’’ - refers to the total value, excluding the value of non- 
agricultural or fisheries intermediate inputs, of goods and services contributed 
by the agricultural and fisheries sectors. 
“Jurisdictional Spillover” - a service should be controlled and financed at the 
jurisdictional level where there are no spillovers or externalities on 
neighboring jurisdictions. 
“Knowledge Management” - is a systematic approach which invents, 
understands, shares, creates and utilizes knowledge in order to create values 
such as customer’s value, employee’s value, stockholder’s value, business 
partner’s value and social value to achieve the vision and goal of the 
organization. 
“Partnership” - a relationship between and among agencies that is 
characterized 
by mutual cooperation and responsibility towards the 
achievement of a shared goal. 
“Policy Framework” - a structure that serves as guidelines to ensure 
coherence among the various policies adopted by the government and the 
different plans and programs they entail. 
“Private Goods” - are goods with a high degree of subtractability and 
excludability, which should be paid by the private sector. In agriculture, these 
include seedslseedlings, fertilizers, small-scale irrigation systems, small cold 
storage facilities, farm machinery and equipment, abattoir, processing plants. 
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“Private sector” - the part of a nation’s economy that is not owned and 
managed by the government. 
“Processors and Traders”- a wide variety of businesses and entrepreneurs in 
the agricultural market system that are principally engaged in agricultural 
activities such as processing, marketing, input provision and storage. 
“Producer” - one that produces, especially a person or organization that 
produces goods or services for sale. 
“Public Sector” - the part of the economy concerned with providing basic 
government services that a non-payer cannot be excluded from services that 
benefits all of society rather than just the individual who uses the services; 
services provided by government that encourages equal opportunity. 
“RBOs” - are rural based organizations or people’s organizations composed 
of various sectors of the rural community such as farmers, fisherfolk, growers, 
seed producers, women, and youth. 
“Specialization”- a principle in the provision of public goods wherein limits are 
imposed on the domain that an organization has authority to assume 
responsibility for autonomous decision-making. 
Subsidiarity” - administrative responsibilities are assigned to the lowest level 
of governance capable of carrying out responsibilities competently. 
”Targeted financial transfer” - is a financial support provided by the national 
government to the LGUs in support of national goals or programs. 
‘Toll Goods” - are goods characterized by excludability, but low 
subtractability. 
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“Value chain” - is a process from seed to shelf or from the producers to the 
consumers, 
showing 
activities 
and 
interventions 
of/for 
a 
chosen 
commodity/ties based on understanding the needs for such interventions. 
Sec. 4. Statement of Goals. - Agricultural extension is a policy instrument for 
empowering individuals and organizations; public agriculture extension shall 
contribute towards the achievement of the national goals of agriculture 
development. 
Sec. 5. Statement of Objectives. - Agriculture and fisheries extension shall 
contribute to the following objectives: 
a) To enhance the economic rights of: 
Producers, especially the poor, to use the most appropriate 
technologies they feel will give them the best profit and to choose 
the most affordable loans in producing the quality and quantity of 
products and to sell their products freely, domestic or abroad; 
Traders, to move goods in the expectation of profits unconstrained 
by serious lack of knowledge and information or peace and order; 
and 
Consumers, to buy safe and nutritious foods at the lowest prices 
possible. 
b) To 
manage 
knowledge in strengthening 
the 
individual 
and 
organizational capabilities of producers, traders and consumers; and 
c) To help create an enabling environment that encourages increased 
investment in agriculture extension by the private sector, civil society, 
and Local Governments. 
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Sec. 6. Clients. - The clients of Philippine agricultural and fisheries extension 
system are the producers (farmers, fisherfolk, agricultural processors), 
traders, and consumers along the value chain. Public extension shall focus on 
the delivery of public goods; its priority clients shall be the disadvantaged 
groups in agriculture and fisheries such as the farmers and fisherfolk in the 
marginal areas or fragile environments. 
ARTICLE II 
Structure and Organization 
Sec. 7. Creation of the Philippine Agriculture and Fisheries Extension Agency 
(PAFEA). - The Agricultural Training Institute is hereby strengthened and 
transformed into the Philippine Agriculture and Fisheries Extension Agency 
(PAFEA). It shall serve as the national apex organization for a unified and 
efficient agriculture and fisheries extension system of the country. It shall 
ensure that public extension services meet the national standards of 
performance and effectively contribute towards the achievement of the 
national goals of agriculture and fisheries modernization. 
Sec. 8. Powers. and Functions. 
a) Provide leadership in the development of national extension policies in 
agriculture and fisheries; 
b) Orchestrate the development of extension strategic plan for agriculture 
and fisheries to accelerate the achievement of the goals of the 
agriculture and fisheries modernization; 
c) Develop and implement national policies and programs aimed at the 
continuous improvement of the quality of extension methods, products, 
and services towards a more efficient and client-responsive national 
agriculture and fisheries knowledge management system: 
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d) Manage the national extension resources for agriculture and fisheries 
and ensure a sustainable and cost-effective system of funding public 
agriculture and fisheries information, education, and communication 
materials (IEC); 
e) Assume leadership in developing and implementing a participatory 
national agriculture and fisheries knowledge management system to 
achieve optimal efficiency along the value chain; 
9 Provide leadership in the development and implementation of the 
National Agriculture & Fisheries Knowledge 
Network (NAFKN) in 
agriculture and fisheries of the Department through a system of 
partnerships that includes the (Local Government Units) LGUs, the 
academe specially the state collegesluniversities of agriculture and 
fisheries, the Civil Society Organizations (CSOs), producers, RBOs. 
and the private sector; 
g) Provide national leadership in developing extension partnerships 
towards increased investment and private sector participation; 
h) Team 
up with state universities and colleges (SUCs) 
of 
agriculturelfisheries 
as key partners in the implementation of the 
national programs specially in the areas of 
extension innovations, 
national training, and monitoring and evaluation of 
extension 
institutions and programs; and 
i) Provide leadership in developing and implementing a national system 
of strengthening institutional extension capacities at all levels of 
implementation. 
The Department, through the Philippine Agricultural and Fisheries Extension 
Agency (PAFEA), shall lead and coordinate all national and local government 
extension programs in agriculture and fisheries. In coordination with the 
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Department of Budgat and Management (DBM), the PAFEA shall review and 
endorse all agriculture and fisheries IEC programs and budgets of national 
agencies. 
Sec. 9. Structure of PAFEA. - It shall be headed by a Director General (DG) 
with a rank of Assistant Secretary to be assisted by two Deputy Director 
Generals (DDG) and they shall be appointed by the Secretary of Agriculture 
upon recommendation by an independent Search Committee organized and 
based on the qualification standards set by the Governing Board for 
Research, Development and Extension (GBRDE) in Agriculture and 
Fisheries.. They shall have a fixed tenure of six (6) years without prejudice for 
reappointment of one additional term of four (4) years in the same position 
based on very satisfactory performance. 
Sec. 10. 
Governing Board for Research, Development and Extension 
(GBRDE) in Agriculture and Fisheries. - The Council for Extension Research 
Development in Agriculture and Fisheries (CERDAF) is hereby strengthened 
and transformed into the Governing Board for Research, Development and 
Extension (GBRDE) in Agriculture and Fisheries. It shall ensure that the 
agriculture and fisheries research, development and extension policies and 
.programs of the Department are consistent with national policies. 
a) Functions and duties of the Governing Board. 
(1) Approve policies covering program priorities and 
resource 
allocation in research and extension of all agencies of the 
Department; 
(2) Enhance coordination and linkage of government institutions 
involved in agriculture and fisheries research, development and 
extension; 
(3) Strengthen the participation of various stakeholders, especially the 
civil society, local government units, and private sector in the 
development of National RDE agenda and programs; 


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b) 
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(4) Strengthen the institutional efficiency of the National Research, 
Development and Extension (NRDE) system, including the setting 
up of a monitoring and evaluation system on the effectiveness and 
efficiency of its various components; and 
(5) Set guidelines in the use of services and facilities, collection of fees 
and in the utilization of income. 
Composition of the Governing Board for Research, Development and 
Extension (GBRDE) in Agriculture and Fisheries. The Undersecretary 
for Policy and Planning of the DA shall be the Chair of the Board. 
There shall be a Vice Chair to be elected from among the other 
members of the Board. The Executive Directors of the Philippine 
Agriculture and Fisheries Extension Agency (PAFEA) and the Director 
of the Bureau of Agriculture Research (BAR) shall be ex-officio 
members and the Chair shall appoint Executive Director of PAFEA as 
Secretary of the Board. 
The GBRDE shall have the following as 
members: 
(1) Designated Undersecretaries for Policy & Planning of the following 
Departments: 
i. 
Department of Science and Technology 
ii. Department of Environment and Natural Resources 
iii. Department of Agrarian Reform; 
(2) Presidents of the following LGU organizations: 
i. League of Provinces 
ii. Union of Local Authorities of the Philippines (ULAP); 
(3) Four (4) CSO representatives from the rural youth, rural women, 
and farmer, and fisherfolk sectors as identified and selected by the 
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Department of Agriculture* 
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(4) One (1) private sector representative designated by the 
Management Association of the Philippines (MAP): 
(5) Representatives for scientific/professional organizations/societies; 
One representative for agriculture; 
One representative of the national professional association 
of agriculture/fisheries extension; and 
One representative for fisheries. 
Sec. 11. Offices under the PAFEA. - To carry out the functions of the Agency, 
PAFEA shall have four technical directorates as follows: 
Policy Development 
Extension Innovations & National Training 
Knowledge Products & Services Development 
Extension Governance & Partnerships 
The PAFEA shall maintain a small regional office to: (1) liaise with the 
Department Regional Field Units (RFUs) that should serve as the 'principal 
arm of the Department to implement extension policies and programs in the 
regions (2) provide regional technical assistance in the implementation of 
PAFEA functions and (3) monitor and evaluate extension offices and 
programs being undertaken by the government agencies. 
The PAFEA is 
authorized to utilize existing Agricultural Training Institute (ATI) plantilla 
positions but in no case shall it exceed 85% of the plantilla positions in 2008. 
ARTICLE 111 
Organization of the Local Government Extension Services 
Sec. 12. Province as the LGU Unit of Operation for Agriculture & Fisheries 
Extension. -To achieve efficiency and to provide a more responsive services, 
the administrative unit for the planning and implementation of the Local 
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Government Units Extension Services is the province under the Office of the 
Governor that shall be headed by a technically-qualified career Provincial 
Agriculturist with a rank equal to that of Board Member of the province. 
Sec. 13. Extension Personnel in the Municipalities. - All municipal and non- 
chartered agriculture and fisheries extension personnel are hereby transferred 
to the province, and they shall become provincial employees upon the 
enactment of this Act. However, they will continue to serve municipalities and 
non-chartered cities as detailed employees of the province based on a 
rationalized organizational structure endorsed by the PAFEA and approved by 
the Department of Budget & Management. 
Sec. 14. Salaries and Wages of Extension Personnel. - The salaries and 
wages of the agriculture and fisheries technical extension personnel shall be 
paid by the National Government through an annual grant-in-aid to be paid 
out of the regular appropriation of the Department of Agriculture. The salaries 
and wages of technical extension personnel shall be standardized equal to 
that of comparable positions of national employees. 
Sec. 15. Structure of the Provincial Extension Services. - The provincial 
agriculture and fisheries extension services shall organize and structure its 
services based on the standards set by the National Government. The PAFEA 
. shall have technical supervision of all agencies of government undertaking 
agriculture and fisheries extension services 
Sec. 16. LGU Veferinary Services. - The LGU veterinary services shall 
principally perform regulatory functions of inspection to protect animal health 
and public safety. In cases where veterinary services also perform 
development functions in livestock production or development, these functions 
shall be integrated with the other development functions of the agriculture 
extension services of the Office of the Provincial Agriculturists to avoid conflict 
of interest. 
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Section 17. Strategic Plan in Agriculture & Fisheries. To provide coherence of 
all government plans in agriculture and fisheries and to achieve efficiency in 
the use of resources, all provincial governments are required to develop a 
five-year strategic plan in agriculture and fisheries based on the framework 
and principles provided by the Department of Agriculture (DA). The Strategic 
Plan shall serve as the basis for the DA to provide short-term and long-term 
assistance. The yearly program of work and budget shall be derived from the 
strategic plan. 
ARTICLE IV 
Funding for Extension Services 
Sec. 18. lnitial Appropriation. - For the first year of implementation of this Act, 
the amount of five billion pesos (PHP 58) shall be appropriated out of the total 
budget of the Dept of Agriculture (DA) for the personal services, operation 
and capital outlay requirements of the Philippine Agriculture and Fisheries 
Extension Agency (PAFEA). 
The Department of Budget and Management (DBM) is hereby mandated to 
include annually in the President's program of expenditures for submission to 
Congress and release an amount not less than five billion or one percent of 
the gross value added in agriculture and fisheries, whichever is higher, for the 
implementation of this Act. 
The PAFEA is authorized to utilize part of its yearly appropriation to set up or 
upgrade necessary facilities to improve the provision of national extension 
services. 
All assets, resources both human and financial of Agriculture Training Institute 
(ATI), shall be transferred to the PAFEA. 
All revenues generated out of the use of services, facilities and equipment 
shall be utilized by the Agency to augment its maintenance and operating 
expenditures subject to ttie approval of the Governing Board. 
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ARTICLE IV 
Final Provisions 
Sec. 19. Oversight Committee. - It is hereby created a Joint Congressional 
Oversight Committee to oversee the implementation of this Act for a period 
not exceeding five (5) years from its affectivity. The Committee shall be 
composed of the Chairmen of the Senate & House Committees on Agriculture 
and Food and two (2) members from each houses of Congress appointed 
respectively by the Senate President, and Speaker of the House of 
Representatives. 
Sec. 20. lmplemenfing Rules and Regulations. -Within ninety (90) days from 
the promulgation of this Act, the necessary rules and regulations for the 
proper implementation of its provisions shall be formulated by the members of 
the Oversight Committee created under Section I9 hereof. The said rules 
and regulations shall be approved by the Secretary of the Dept of Agriculture 
( DA) . 
Sec. 21. Repealing Clause. - All laws, decrees, executive orders, rules and 
regulations, issuances or parts thereof inconsistent with this Act are hereby 
repealed or amended accordingly. 
Sec. 22. Separability Clause. - If any provision of this Act is declared invalid 
or unconstitutional, the other provisions not affected thereby shall remain valid 
and subsisting. 
Sec. 23. Effecfivify Clause. - This Act shall take effect thirty (30) days from 
the date of its publication in the Official Gazette or in at least in two (2) 
national newspapers of general circulation. 
APPROVED: 
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