ENTATIVES

Republic of the Philippines SEIVED
HOUSE OF REPRESENTATIVES — pave: _03 AUG 2016
Quezon City

ane
SEVENTEENTH CONGRESS| ey
First Regular Session

House Bill No._2402

INTRODUCED BY REPRESENTATIVE ARTHUR C. YAP

EXPLANATORY NOTE

This measure prescribes the strengthening of the national extension
system to accelerate agriculture and fisheries development. This has been
duly supported by the undersigned representation during his incumbency as
Secretary of Agriculture.

The primary objective of this measure is to 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 knowledge and technology based and market-oriented industry.

Under this measure, the Agricultural Training Institute shall be
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. Among others, the PAFEA shall be:

= The coordinator of all government extension programs in agriculture
and fisheries, providing direction, developing strategic plans, and
implementing policies and programs for a more efficient and client-
responsive national agriculture and fisheries knowledge management
system;

= Tasked to develop a National Agriculture & Fisheries Knowledge
Network (NAFKN) through a system of partnerships with LGUs,
development councils, civil society organizations, rural based
organizations and the private sector; and,

= Made to team up with state universities and colleges (SUCs) in the
implementation of extension innovations, training, and monitoring

and evaluation of extension institutions and programs.

The other essential features of this bill include the:


= Strengthening of the Council for Extension Research Development in
Agriculture and Fisheries (CERDAF).

= At the LGU level, making the Provincial Agriculture and Fisheries
Extension Services under the Office of the Governor, the
administrative unit for the planning and implementation of the
extension services.

= Transferring to the province all municipal and non-chartered
agriculture and fisheries extension personnel, but to continue to serve
municipalities and non-chartered cities as detailed employees of the
province.

= Professionalizing of extension services via the development of
qualification standards beyond the minimum set by the Civil Service
Commission for the various managerial, technical, and non-technical
positions of the extension services of the country.

= Requiring all provincial governments to develop a five-year strategic
plan in agriculture and fisheries that shall serve as the basis for the
Department of Agriculture to provide short and long term assistance.

* Initially appropriating the amount of Five Billion Pesos for personal
services, grants-in-aid to the LGUs, operation and capital outlay
requirements of the PAFEA.

= Tasking the Congressional Oversight Committee for Agriculture and
Fisheries Modernization to oversee the implementation of this Act for
a period of five years.

With this measure, one of the root causes of agricultural problems,
which is weak research and development extension services, will be
addressed. The goals of poverty alleviation and social equity, food security,
rational use of resources and sustainable development, global
competitiveness, and, people empowerment, all embodied under Republic
Act 8435 or the Agriculture and Fisheries Modernization Act or the AFMA
may soon be achieved.

In view of the foregoing, the immediate passage of the bill is earnestly
sought.

ARTHUR C, YAP
Representative


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

SEVENTEENTH CONGRESS
First Regular Session
S400
House Bill No._©4°2

INTRODUCED BY REPRESENTATIVE ARTHUR C. YAP

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 House of Representatives of the Philippines
in Congress assembled.

ARTICLE 1. GENERAL PROVISIONS

Section 1. Short Title. - This Act shall be known as the "Agriculture
and Fisheries Extension Act of 2016."

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 full and efficient use of human and natural resources, and which


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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
knowledge and technology-based and market-oriented industry.

The State shall adopt the market approach in assisting the agriculture
and fisheries sector while recognizing the contribution of these 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.


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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 goals of agriculture
modernization as mandated by Republic Act 8435:

a) Poverty Alleviation and Social Equity;

b) Food Security;

c) Rational Use of Resources and Sustainable Development;

d) Global Competitiveness; and,

e) People Empowerment.

Sec. 3. Definition of Terms. As used in this Act, the term:

1. "Agriculturist" - refers to a person who is a graduate of a bachelor's
degree in agriculture or any related course registered and licensed with the
Professional Regulation Commission or Civil Service Commission; who
performs communication, curriculum development, econometrics, statistical
work, training and extension works in agriculture production, trade, and
processing including crop and animal protection, food safety, agricultural
and natural resource economics, and marketing;

2. “Agricultural Engineer” - refers to a person registered with the
Professional Regulation Commission or Civil Service Commission
performing training and extension work in agricultural and fisheries
mechanization, irrigation, drainage, soil and water conservation, agricultural

buildings and structures, agricultural processing and post harvest facilities;


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3. “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;

4. “Civil Society” - refers to the group of organizations whose un-
coerced 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,
trade unions, self-help groups, social movements, business associations,
coalitions and advocacy groups;

5. “Consumers” - are those that acquire goods or services for direct
use or ownership rather than for resale or use in production and
manufacturing;

6. “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;

7. "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;


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8. "Fisheries Technologist" - refers to a person who is a graduate of a
four year course in Fisheries and registered and licensed with the
Professional Regulation Commission or Civil Service Commission
performing training and extension on fisheries, marine resources and
aquaculture;

9. "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;

10. "Formula Grants" - these are national government financial
transfers to the local governments to support the regular expenditures in the
provision of 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;

11. "Gross Value Added in Agriculture" - 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;

12. "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;


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13. "Partnership" - a relationship between and among agencies that is
characterized by mutual cooperation and responsibility towards the
achievement of shared goals;

14. "Private sector" - the part of a nation's economy that is not owned
and managed by the government;

15. "Producer" - one that produces, especially a person or
organization, that produces goods or services for sale;

16. "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;

17. "Targeted Financial Transfer" - is a financial support provided by
the national government to the LGUs in support of national goals or
programs;

18. "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;

19. "Veterinarian" - refers to a person registered with the

Professional Regulation Commission performing professional services

related to the practice of veterinary medicine including training and
extension on disease prevention control and animal health.

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.


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See. 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; Traders, to move goods in the expectation of
profits unconstrained by serious lack of knowledge and
information; 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 strengthens the
linkage between knowledge generation and knowledge use and
encourages increased investment in agriculture extension by the
private sector, civil society, and Local Governments.

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. The priority clients shall be the
economically and socially disadvantaged groups in agriculture and fisheries.
Local Government Units shall put primary attention to these groups in the
provision of extension services through formula grants and targeted and

catalytic financing of National Government Agencies.


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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.

The Philippine Agricultural and Fisheries Extension Agency

(PAFEA) shall coordinate all government extension programs in agriculture
and fisheries.

Sec. 8. Powers and Functions. The powers and functions of the

PAFEA are as follows:

a) Provide direction in the development of national extension policies
in agriculture and fisheries;

b) Orchestrate the development of extension strategic plan including
its financing in coordination with the Department of Budget and
Management and other stakeholders;

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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1 d) Develop a system towards the management of the country's

2 extension resources for agriculture and fisheries to ensure a
3 sustainable, participatory and efficient system of funding for
4 information, education, and communication materials (IEC) and to
5 achieve optimal efficiency along the value chain;

6 e) Provide leadership in the development and implementation of the
7 National Agriculture & Fisheries Knowledge Network (NAFKN)
8 in agriculture and fisheries of the Department through a system of
9 partnerships that may include, but not be limited to, the (Local
10 Government Units) LGUs, the regional development council
iW (RDC), the Regional Agriculture and Fisheries Council (RAFCs),
12 the academe especially the SUCs of agriculture and fisheries, the
13 Civil Society Organizations (CSOs), producers, rural based
14 organizations (RBO)s and the private sector;

1S f) Provide national leadership in consultation with agriculture and
16 fisheries councils (AFCs), in developing extension partnerships
17 towards increased investment and private sector participation;

18 g) Team up with state universities and colleges (SUCs) of agriculture
19 and fisheries as key partners in the implementation of the national
20 programs specially in the areas of extension innovations, national
21 training, and monitoring and evaluation of extension institutions
2 and programs;
23 h) Provide leadership in developing and implementing a national
24 system of strengthening institutional extension capacities at all

25 levels of implementation; and


i) In coordination with the Department of Budget and Management
(DBM); the Local Government Units, The Department of Local
governments, and other stakeholders, the PAFEA shall set up a
review mechanism for all agriculture and fisheries extension
programs and budgets of national agencies to determine cost
effectiveness of operations and potential impacts to national goals.

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
President upon recommendation of the Secretary of Agriculture from a list
submitted by an independent Search Committee organized and based on the
qualification standards set by the Council for Extension Research
Development in Agriculture and Fisheries (CERDAF). They shall have a
fixed tenure of six (6) years and may be re-appointed for an additional term
of four (4) years based on very satisfactory performance.

Sec. 10. The Council for Extension Research Development in
Agriculture and Fisheries (CERDAF) - The Council for Extension
Research Development in Agriculture and Fisheries (CERDAF) is hereby
strengthened. It shall ensure that the agriculture and fisheries research,
development and extension policies and programs of the Department are
consistent with national policies and priorities.

a) Functions and duties of the Council for Extension Research

Development in Agriculture and Fisheries (CERDAF).


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(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 Research Development and
Extension (NRDE) agenda and programs;

(4) Strengthen the institutional efficiency of the 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.

Sec. 11. Composition of the Council for Extension Research
Development in Agriculture and Fisheries (CERDAF). The
Undersecretary for Policy and Planning of the DA shall be the Chair of the
Council. There shall be a Vice Chair to be elected from among the other
members of the Board. The Executive Director 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 the Executive Director of PAFEA as Secretary of the Council. The

CERDAF shall have the following as members:


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(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 Department of Agriculture;

(4) One (1) private sector representative designated by the
Management Association of the Philippines (MAP);

(5) Representatives from scientific/professional
organizations/societies;

(6) One representative each from the following national
professional organizations:

i) agriculturists;

ii) agricultural engineers;

iii) fishery technologists and
iv) veterinarians.

See. 12. Offices under the PAFEA, - To carry out the functions of

the Agency, PAFEA shall have four technical offices as follows:

(1) Policy Development;

(2) Extension Innovations & National Training;


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(3) Knowledge Products & Services Development; and
(4) 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 policies and programs, and
(3) monitor and evaluate extension offices and programs being
undertaken by 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 III Organization of the Local Government Extension
Services

Sec. 13, Province as the LGU Unit of Operation for Agriculture &
Fisheries Extension. - To achieve efficiency and to provide more
responsive services, the administrative unit for the planning and
implementation of the extension services at the level of Local Government
Units is the province through a Provincial Agriculture and Fisheries
Extension Services under the Office of the Governor. The Provincial
Agriculture and Extension Services shall be headed by a technically-
qualified career Provincial Agriculturist (PA). The PAS shall be appointed
by the Director General of PAFEA chosen from three qualified nominees

submitted by the Governor. Its staff shall be composed of technically


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qualified career agriculturists, economists, statisticians, agricultural
engineers, fishery technologists and veterinarians appointed by the
Provincial Governor.

Sec. 14, Extension Personnel in the Municipalities. - All municipal
and non-chartered agriculture and fisheries extension personnel are hereby
transferred to the province, and they shall be appointed by Governor and
become employees of the provincial government upon the effectivity 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 LGUs and approved by the PAFEA
and the DBM. The Municipal Agriculture and Extension Services shall be
headed by a technically-qualified career Municipal Agriculturist Officer
(MAO) who shall be appointed by the Director General of PAFEA chosen
from three qualified nominees submitted by the Governor.

See. 15. 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 PAFEA of the Department of
Agriculture; Provided, however, that during the first year of the effectivity of
this Act, the local government concerned shall reallocate its savings from the
personal services for agricultural personnel to its agriculture and fisheries
operations; Provided, further, that every year thereafter, the concerned LGU
shall appropriate the equivalent funds as the minimum amount for its
agricultural and fisheries operation or counterparts to national grants-in-aid

in agriculture and fisheries, without prejudice to the provision of additional


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funds that may be allocated by the LGUs for this purpose. The salaries and
wages of technical extension personnel shall be standardized and equal to
that of comparable positions of national employees without prejudice to the
provision of additional staff benefits by concerned LGUs where finances
warrant. The provision of grants in aid to pay for the salaries and wages of
the technical personnel of the LGU extension services shall be subject to
external review and evaluation every five years to determine its impact to
the quality of services and its cost-effectiveness. A copy of the report shall
be provided to Congress and serve as the basis for the continuation or
modification of the grants-in-aid.

Sec. 16. Professionalization of Extension Services. The PAFEA, in
coordination with the Civil Service Commission and subject to the approval
of the CERDAF, shall develop qualification standards beyond the minimum
set by the Civil Service Commission for the various managerial, technical,
and non-technical positions of the extension services of the country
including that of all local government units. The PAFEA shall also develop a
career path of all technical extension personnel that will allow them
regardless of assignment or location in government, to move vertically in the
promotion system. Managerial positions shall be open to all qualified
personnel regardless of geographic or agency assignment. Towards this end,
the PAFEA shall issue guidelines for the creation of a merit promotion
boards for each extension agency that will include representatives of the
SUCs of agriculture and fisheries.

Sec. 17. Structure of the Provincial Extension Services. - The

provincial agriculture and fisheries extension services shall organize and


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structure its services based on the agricultural and extension needs of the
province and on the standards set by the PAFEA. The technical positions of
the PAFEA, and the Provincial Extension Services shall be rationalized to
provide the required number of positions for agriculturists, communication
and curriculum specialists, economists, agricultural engineers, fishery
technologists and veterinarians.

Sec. 18. LGU Livestock Production Services. In recognition of the
need to provide an integrated extension approach to total farm development,
the LGU livestock production Services shall be part and parcel of the
Provincial Agricultural Office (PAO). In cases where these functions were
transferred to the Provincial Veterinary Services, they shall be returned and
integrated to the rest of the PAO services.

Section 19. 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. 20. Initial Appropriation. - For the first year of implementation of
this Act, the amount of five billion pesos (PHP 5,000,000,000.00) shall be
appropriated out of the total budget of the Dept of Agriculture (DA) for

personal services, grants-in-aid to the LGUs, operation and capital outlay


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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
pesos (PHP 5,000,000,000.00) 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 the approval of the Governing Board.

ARTICLE IV Final Provisions

Sec. 21. Oversight Committee. - The Congressional Oversight
Committee for Agriculture and Fisheries Modernization shall oversee the
implementation of this Act for a period not exceeding five (5) years from its
effectivity.

Sec. 22. Implementing Rules and Regulations. -Within ninety (90)
days from the effectivity of this Act, the implementing rules and regulations
shall be formulated by the Department of Agriculture in coordination with
the members of the Congressional Oversight Committee on Agriculture and

Fisheries Modernization. The said rules and regulations shall be submitted


by the Secretary of the Department of Agriculture (DA) to the Committee of
Agriculture of both Houses of Congress.

Sec. 23, Separability Clause. - If any provision of this Act, or any
parts thereof, is declared unconstitutional, the same shall not affect the
validity and effectivity of the other portions.

Sec. 24. Repealing Clause. - All laws, executive orders, presidential
decrees, proclamations, rules, regulations, issuances and enactments of parts
thereof inconsistent with this Act are hereby repealed or modified
accordingly.

See. 25. Effectivity. - This Act shall take effect fifteen (15) days from
its complete publication in the Official Gazette of in a newspaper of general
circulation in the Philippines, whichever comes earlier.

APPROVED.