THIRTEENTH CONGRESS OF THE REPUBLIC 
) 
OF THE PHILIPPINES 
L 
. - 
1 :?P 
, 
First Regular Session 
1 
S E N A T E  
S. No. 
0 
- 
Introduced by Senator S.1R. OsmeAa I l l  
EXPLANATORY NOTE 
Republic Act No. 8435, otherwise known as the “Agriculture and Fisheries 
Modernization Act of 1997” (AFMA) was approved on December 22, 1997 and 
took effect on February 9, 1998. 
Department of Agriculture, flawed as it is 
today with the certain weaknesses is no match for the challenges posed by 
R.A. 8435. 
The mandates, authorities, and budgets for performing the various 
agriculture-related activities are spread over several different 
agencies 
belonging to at least three other departments. The Department of Science and 
Technology, for example officially has jurisdiction over the Philippine Council for 
Agriculture Resources Research Development; the Department of Agrarian 
Reform allocates about 2/3 of agrarian reform funds for the provision of 
agricultural support services; and the Department of Environment and Natural 
Resources delivers agricultural support services to upland areas. 
The proliferation of commodity-based structures like the Philippine 
Coconut Authority, the Sugar Regulatory Administration, 
Philippine Cotton 
Corporation, to name a few, 
has led to 
market distortions, 
unnecessary 
regulatory measures, duplication of functions and a lowering of the priority 
assigned to 
neutral growth-enhancing 
activities. 
The choice of these 
commodities are based on political economy considerations, 
rather than on 
sound, logical or economic criteria and have led to government encroachments 
into areas that are better left to private enterprises. 
This bill proposes changes that will streamline, refocus and reinvigorate the 
agriculture and fisheries but-eaucracy by addressing the following objectives: 
a) integrate the responsibility for all key public functions related to agriculture 
and fisheries with the Department proper; 
b) limit public intervention in agriculture and fisheries to the provision of 
basic services with the attributes of public goods; to the correction of 
market failures like external effects, natural monopolies, long gestation 
periods, and risks; 


c) devolve to local government units the provision of local public goods related 
to agriculture, 
such as extension, irrigation management and certain 
regulatory functions; 
d) streamline and 
reorganize the bureaucracy 
along 
functional lines of 
specialization to minimize redundancies and the need for outside 
coordination, delineate lines of responsibility, authority and accountability; 
e) free resources from unproductive trade and market regulations and licensing 
activities in favor of efficient delivery of growth-enhancing support services; 
and 
0 promote transparency in governance and participation of all stakeholders and 
relevant government and private agencies. 
The chart below summarizes the basic structure of the department where 
the line agencies are focused on three main priorities: (I) 
marketing assistance 
and regulation services; (2) production assistance services; and (3) research, 
development and extension services. 
Secretary 
:: .. 
Adm, Finance & Legal Svcs. 
I /  
I 
' I  
Policy and Planning Svcs. 
I 
' I  
Information and Coininunication Staff 
I 
.i .. 
:: :: 
. . . .  
li 
;; 
;; ........................................ 
11 2 National Agriculture and 
ii ii Fisheries 
~...~, 
~ ~ n n i l : ~ M . . : N ~ ~ n ~ . ~ t ~ ~ ~ . . , ~ , . ~ . ~ . ~ : ~ . ~ ~ ~  
.... 
.... 
.... 
ji 
............................................................................. 
i .......... I: 
ii Development and Extension Council ii 
1: .......... ii Agriculture and Fisheries Research 
li 
. I  .............................................................................. 
................................. 
....II-..,, .................................... 
I 
Marketing Assistance & 
Production 
Regional 
Regukion Svcs. (Usec) 
Assistance 
Development 
Operations 
& Extension 
(Usec) 
System 
Security 
1 :  
I 
Bureau of Agriculture and 
Fisheries Product 
H Standards 
I '  
Bureau of Quarantine 
i 
Food Safety 
Control and 
Surveillance 
Staff 
1 1-1 
Lsvcs.(usec) 
I 
I , 
Bureau of 
Irrigation 
Svcs. 
Bureau of 
Soil and 
I I Water Mgt. 
I 
Bureau of 
- Rural Infra 
Moder-on .
.
 
Bureau of 
Agriculture 
Fisheries 
Offices 
R & D  
Region a I 
Agriculture 
and Fisheries 
Extension 
Credit Support , 
Services 


In order to deliver on its promise of policies that will raise the quality of life 
especially for the poorest of the poor, the present administration needs an 
effective and efficient bureaucracy for governance over the agriculture and 
fisheries sectors. Such is outlined in the provisions of this bill. 
In view of the foregoing, the immediate approval of this bill is earnestly 
requested. 
* 
S RGlO OSMENA Ill 
Senator 
& 


THIRTEENTH CONGRESS OF THE REPUBLIC 
) 
OF THE PHILIPPINE 
1 
First Regular Session 
1 
S E N A T  
I 
’ 
.L 
S. No. 
Introduced by Senator S. R. OsmeAa 111 
AN ACT 
RATIONALIZING THE AGRICULTURE AND FISHERIES BUREAUCRACY 
REDEFINING THE FUNCTIONS OF THE DEPARTMENT OF AGRICULTURE 
AND VARIOUS AGENCIES TO BRING ABOUT AGRICULTURE AND 
FISHERIES MODERNIZATION, APPROPRIATING FUNDS THEREFOR, AND 
FOR OTHER PURPOSES. 
Be it enacted by the Senate and House of Representatives of the Philippines in 
Congress assembled: 
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Section I, 
Shod Title. --- This Act shall be known as the “Department of 
>. 
Agriculture and Fisheries Rationalization Act of 2004”. 
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Section 2. Declarafion of Policy. --- It is hereby declared the policy of 
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the State to develop the agriculture and fisheries sectors in order to attain 
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economic growth, alleviate rural poverty, assure food security and make farmers 
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and fisherfolk competitive. 
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To this end, policies and programs concerned with agriculture and 
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fisheries shall be rationalized to achieve in the most efficient and effective way 
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the national goal of enhancing productivity to raise the quality of life for all, 
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especially the underprivileged. Institutions, agencies, councils, bureaus, units, 
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and offices of the government concerned with agriculture and fisheries shall be 
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rationalized to conform with the following objectives: 
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1. 
To provide adequate rural public goods including infrastructure, 
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irrigation, post-harvest facilities and other production support, marketing 


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assistance and demand-driven research and development that will upgrade the 
productivity, efficiency and profitability of farms and fisheries; 
2. 
To minimize regulatory and licensing activities to areas that ensure 
the quality of products and protect the health of consumers and the environment; 
prevent market distortions and promote neutral policies that will bring out the 
natural comparative advantage of Philippine agricultural and fisheries products; 
and 
3. 
To promote transparency in governance and participation of all 
stakeholders and relevant government and private agencies. 
Section 3. Definition of Terms. --- When used in this Act, unless the 
context otherwise requires, 
1. 
Agribusiness shall refer to the unified and systematic way of 
considering production, processing, marketing and distribution of agriculture and 
fishery products. 
2. 
Agriculture shall refer to the cultivation of soil, planting of crops, 
growing of fruit trees, raising of livestock and poultry including the harvesting, 
processing, and marketing of such farm products, and other farm activities and 
practices. 
3. 
Department shall refer to the Department of Agriculture. 
4. 
Extension services shall refer to technology transfer activities 
such as training of farmers, fisherfolk, and those engaged in agriculture and 
fisheries, input and credit assistance, marketing assistance, and similar related 
services. 
5. 
Fisheries shall refer to all activities relating to the act or business 
of fishing, culturing, preserving, processing, marketing, developing, conserving, 
and managing aquatic resources and the fishery areas, including the privilege to 
fish or take aquatic resource thereof. 


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6. 
Food processing shall refer to the transformation, by hand or 
machine, of food materials into new products, regardless of whether it is done in 
a factory or domicile of the processor and whether the products are sold 
wholesale or retail. 
7. 
lnfegrafe shall mean to make a part of a larger unit or office with 
the same or similar functions. 
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8. 
lrrigafion shall refer to supplying dry land with water by means of 
ditches, pipes or streams. 
9. 
Market information shall include, but shall not be limited to, 
information, seminars and training on market that enable farmers and fisherfolk 
to make sound investment decisions and earn maximum returns. 
Markef infrasfrucfure shall include, but shall not be limited to, 
facilities such as market buildings, slaughterhouses, holding pens, cold storage, 
and other related facilities used by the farmers and fisherfolk in marketing their 
produce. 
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Marketing assistance shall include up-to-date and continuing 
information on input and output prices, the availability of needed inputs, 
assistance to gain access to markets for output, list of possible business 
ventures in their locality, and the like. 
12. 
Posf-hawesf facilities shall refer to post-harvest equipment and 
machinery such as, but not limited to, threshers, moisture meters, dryers, 
weighing scales, milling equipment, packing and canning machinery, storage 
facilities, buying stations, market infrastructure and transportation facilities. 
13. 
Product standards shall refer to a predetermined set of 
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description of quality, quantity and such other measures and characteristics 
specific to the type, kind and degree of processing of particular products. 
14. 
Quaranfine shall refer to a period of time during which a vehicle, 
person, animal or material suspected of carrying a contagious disease is 


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detained at a port of entry under enforced isolation to prevent disease from 
entering a country. It also refers to the place of such detention. 
15. 
Rafionalizafion shall refer to the reorganization of the bureaucracy 
in order to streamline the both the structure and functions based on identified 
government objectives and policies for increased effectiveness and efficiency. 
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16. 
Regional operations shall refer to all the activities, programs and 
projects done by the regional offices. 
17. 
Research and developmenf shall refer to all organized activities 
designed to search for new knowledge or modify existing ones, develop new 
methods and techniques of operation, tools, equipment or types of organisms, 
through the application of the scientific method. 
18. 
Resource-accounfing shall refer to a process of tracking changes 
in the environment and natural resources biophysically and economically (in 
monetary terms). 
79. 
20. 
Small farmers and fishe~olk shall refer to natural persons 
Secretary shall refer to the Secretary of the Agriculture. 
dependent on small-scale subsistence farming and/or fishing as their primary 
source of income or to those engaged in wholesale, barter or exchange of 
agricultural and/or fishery products which do not exceed a gross value of one 
hundred eighty thousand pesos (P180,OOO.OO) per annum based on 1992 
constant prices. 
21. 
Transfer shall mean to remove and place in another unit or office. 
Chapter 1 
The Department Proper 
Section 4. Rafionalizafion. --- The Department of Agriculture, hereinafter 
referred to as the Department, is hereby renamed as the Department of 
Agriculture and Fisheries, and structurally and functionally rationalized, in 
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accordance with the provisions of this Act. 


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The functions and services of departments, agencies, councils, bureaus, 
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units, and offices of the government concerned with agriculture and fisheries 
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shall likewise be rationalized in accordance with the provisions of this Act. 
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Section 5. Mandafe. --- The Department shall the government agency 
responsible for the development of sustainable agriculture and fisheries, food 
security, promotion of equity, people empowerment and global competitiveness. 
In pursuit of this mandate, the Department shall provide the policy framework, 
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direct public investments, 
and in coordination with local government units 
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provide support services needed to make agriculture, agri-based enterprises and 
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fisheries profitable and to help spread the benefits of development to the poor, 
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particularly those in the rural areas. 
To fulfill this mandate, it shall be the primary concern of the Department to 
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improve rural income and employment opportunities for farming and fishing 
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communities. It shall institutionalize efficient mechanisms to promote the active 
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participation of the people through people’s organizations and non-government 
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organizations in policy-making bodies for agriculture and fisheries, in the 
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formulation and implementation of plans and programs, and in the monitoring 
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and evaluation of the same to ensure their relevance and responsiveness. 
Section 6. Powers and Functions. --- The Department shall have the 
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following powers and functions: 
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1. Formulate policies and plans, and regulate, implement, monitor, and 
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evaluate all programs and activities relating to agriculture and fisheries; 
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2. Provide integrated support services in the production, harvesting, 
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storage and handling, processing, marketing, development, and management 
and preservation of agricultural and fisheries resources; 
3. Provide comprehensive support to all the extension workers of local 
government units, non-governmental organizations, and farmers and fisherfolks’ 
organizations equipping them with adequate knowledge and skills to enable 


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them to train and provide technological information and managerial skills to 
farmers, fisherfolk, and entrepreneurs on the production, harvesting, storage and 
handling, processing, marketing, and financing aspects of agricultural and 
fisheries enterprises; 
4. Assure the availability, adequacy, accessibility and affordability of food 
supplies to all, at all times; 
5. Collect, analyze, and disseminate information on agriculture and 
fisheries; 
6. Provide assistance and support services to facilitate market access for 
agricultural and fisheries producers and entrepreneurs particularly low income 
farmers in the processing and marketing of their agricultural and agri-based 
goods; 
7. Provide the mechanism for the participation of farmers, fisherfolk, and 
entrepreneurs at all levels of policy-making, planning, and program-formulation; 
8. Conduct, coordinate and disseminate research studies on agriculture 
and fisheries; 
9. Exercise regulatory functions over the agriculture and fisheries sector 
to prevent the over-exploitation of resources, protect the health and safety of the 
public, prevent the spread of pests and diseases, and prevent anti-competitive 
measures, and enforce international commodity agreements which the 
Philippines is a party to; 
10. Promulgate and enforce all laws, administrative orders, rules and 
regulations relating to agriculture and fisheries; 
I 11. Coordinate with local and international government and private 
agencies, offices and institutions on all matters related to agriculture and 
fisheries; and, 
12. Perform such other functions as may be provided by law 


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Section 7. Sfrucfure. -- The Department shall consist of the Department 
Proper and attached councils. The Department Proper shall consist of the Office 
of the Secretary, offices of the Undersecretaries, Assistant Secretaries, bureaus, 
research institutes, and regional offices. 
Chapter 2 
Office of the Secretary 
Section 8. Dufies of the Secrefary. -- The Secretary shall have the 
following responsibilities: 
1. 
Advise the President with respect to programs and activities 
relating to agriculture and fisheries; 
2. 
Develop and recommend to the President policies for fostering 
orderly growth of the country’s agriculture and fisheries sectors; 
3. 
Exercise leadership at the direction of the President in coordinating 
government activities affecting agriculture and fisheries; 
4. 
Provide 
technical 
assistance 
and 
information 
including 
a 
clearinghouse service to aid local government units in developing rural 
agriculture and fisheries enterprises; 
5. 
Consult and cooperate with local government officials including, 
when appropriate, holding informal public hearings, with respect to government 
programs and activities related to agriculture; 
6. 
Encourage comprehensive planning by government units with the 
full participation of non-government organizations, people’s organizations and 
other members of civil society; 
7. 
Encourage private enterprise to serve the country’s agriculture and 
fisheries development needs; 
8. 
9. 
Conduct continuing comprehensive studies; and 
Make available findings with respect to the problems of agriculture 
and fisheries development and modernization. 


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Section 9. 
Offices under the Office of the Secretary. -There are 
hereby created the following offices under the Office of the Secretary: 
1. Administrative, Finance and Legal Service; 
2. Information and Communication Staff; and 
3. Policy and Planning Service. 
Section I O .  
Adminisfrafive, 
Finance and Legal Service. --- The 
Administrative, Finance and Legal Service (AFLS) shall be headed by an 
Assistant Secretary and shall have the following functions: 
1. Develop human resources in the agriculture and fisheries bureaucracy 
by providing opportunities for continuing career development and benefits that 
will maximize personal productivity; 
2. Provide personnel, records, information, training and other general 
services; 
3. Provide services related to budgeting , accounting, and management; 
4. Handle the legal requirements including those pertaining to the quasi- 
judicial and regulatory functions of the Department; and, 
5. Perform such other functions assigned to it by the Secretary or as may 
be provided by law. 
Section 11. 
lnformation and Communicafion Service. --- There is 
hereby created the Information and Communication Service (ICs) which shall be 
headed by an Assistant Secretary. 
The ICs shall have the following functions: 
1. Design and set-up the National Information Network (NIN) as defined 
and described in R.A. 8435; 
2. Provide an integrated, comprehensive, and computer-based multi- 
media information system and service; 
3. Be mainly responsible for the compilation, and dissemination of 
information on production technologies, market strategies, competition, foreign 


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assistance, grants, credit, business ventures, laws, orders, rules and regulations, 
and other related information pertaining to agriculture and fisheries; 
4. Exercise technical supervision over data collection; 
5. Provide information regarding the objectives, plans, programs, and 
activities of the Department and represent and promote the interests and 
concerns of the Department before the general public and other government 
agencies and private institutions, including the media; and, 
6. Perform such other functions assigned to it by the Secretary or as may 
be provided by law. 
Section 12. 
Philippine Economic Environmental and Natural 
Resources Accounting Office. -- 
There is hereby created a Philippine 
Economic. Environmental and Natural Resources Accounting Division (PEENRA) 
under the Information and Communication Service which shall be headed by a 
Division Chief. 
Section 13. 
Functions of the PEENRA Division, -- 
The PEENRA 
Division shall have the following functions: 
1. 
In coordination with the Agriculture and Fisheries Research 
Development and Extension Council (AFRDEC) and other appropriate 
government and private agencies and institutions, collect, analyze, interpret and 
disseminate data required for environmental and natural resources accounting in 
the agriculture and fisheries sector through the National Information Network; 
2. 
Develop policy instruments and tools, formulate and implement 
policies to ensure that the agriculture and fisheries sectors are made 
accountable for the impact of their activities on our natural resources and 
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environment and to account for the use of the agriculture and fisheries resources 
as a natural capital; 


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and fisheries resources accounting; 
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4. 
In coordination with the Agriculture and Fisheries Research, 
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Development and Extension Council (AFRDEC), conduct special studies and 
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research on the impact of agriculture and fisheries on our natural resources and 
3. 
In coordination with the Agriculture and Fisheries Training Institute 
(AFTI), conduct training and information dissemination activities on agriculture 
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environment and other related studies; and 
5. 
Perform such other functions assigned to it by the Secretary or as 
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Section 14. 
The PEENRA System. 
-- 
The Philippine Economic 
may be provided by law. 
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Environmental and Natural Resources Accounting Division shall form part of the 
PEENRA System created under Executive Order No. 406, series of 1997. 
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Section 15. Transfer of Funcfions. -- The functions, powers and duties 
of the Bureau of Agricultural Statistics, Information and Technology Center for 
Agriculture and Fisheries, and the Agriculture and Fisheries Information Service 
are hereby transferred to the ICs. 
Section 16. Policy and Planning Service. --- There shall be created the 
Policy and Planning Service (PPS) which shall be headed by an Assistant 
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Secretary. 
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The PPS shall have the following functions: 
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1. Policy formulation, integration of plans and programs emanating from 
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all units, bureaus, and offices of the Department; 
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2. Data analysis, monitoring, and evaluation of the implementation of said 
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plans and'programs through its management information system; 
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and 
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provided by law. 
3. Analysis of economic information relating to agriculture and fisheries; 
4. Such other functions assigned to it by the Secretary or as may be 


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Section 17. Transfer of Functions. -- The functions of the Planning and 
Monitoring Service are hereby transferred to the PPS. 
Chapter 
Offices of the Undersecretarie 
Section 18. 
Undersecretaries. 
-- 
There shall be four (4) 
Undersecretaries who shall assist the Secretary in the exercise of the mandate 
and in the discharge of the powers and functions of the Department 
1 ) Undersecretary for Marketing Assistance and Regulations; 
2) Undersecretary for Research, Development and Extension; 
3) 
Undersecretary for Production Assistance Services; and 
4) Undersecretary for Regional Operations. 
Section 19. Functions of the Undersecretaries. -- An Undersecretary 
shall have the following functions: 
I, Exercise supervision and control over the services, offices, 
bureaus, units including the officers and employees under hidher assigned area 
of responsi b iI i ty ; 
2. 
Implement the laws, orders, issuances, rules and regulations as 
mandated and directed to by law or the Secretary; 
3. 
Through a participatory process, facilitate the formulation of his/her 
services’ short, long-term and strategic plans, programs and activities in 
accordance with the mandate given by law and executive orders, issuances and 
directives including the implementation, monitoring and evaluation of the same. 
4. 
Ensure that the plans and activities of hidher service is properly 
coordinated and in harmony with those of the other units and offices in the 
Department and with the overall mandate given to the Department by law; and 
5. 
Perform such other functions assigned by the Secretary or as may 
be provided by law. 


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Chapter 
Marketing Assistance and Regulation 
Section 20. Marketing Assistance and Regulation 
is hereby created the Marketing Assistance Regulation Services (MARS) which 
shall be headed by an Undersecretary. 
The MARS shall have the following functions: 
1. Identify markets for Philippine agricultural products and assist in the 
planning of market centers, marketing channels, and distribution networks; 
2. Establish National Marketing Assistance Program that will immediately 
lead to the creation of a national marketing umbrella ,matching supply and 
demand in both domestic and foreign markets; 
3. Identify, develop and strengthen local and foreign markets for 
Philippine agriculture and fishery products through, but not limited to, trade 
missions and trade fairs; 
4. Conduct research and studies in domestic and foreign agriculture and 
fisheries economies, trade, community programs, and related topics; 
5. Receive and analyze the reports of Agricultural Attaches; and 
6. Develop, codify, promulgate, implement and monitor adherence to and 
compliance with agriculture and fisheries product standards in order to ensure 
consumer safety and promote the competitiveness of agriculture and fisheries 
products; 
7. Review, codify and implement all laws, orders and regulations related 
to agriculture and fisheries such as quarantine laws, sanitary and phytosanitary 
measures and other regulatory programs to control and eradicate animal and 
plant pests and diseases; 
8. Conduct regular inspections to ensure the safeness of agriculture and 
fisheries products; 


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9. Monitor the volume of rice and take appropriate measures to ensure its 
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availability; and 
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Section 21. Bureaus and Offices. -- The MARS shall be composed of 
10. Perform such other functions as may be provided by law or assigned 
to it by the Secretary. 
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the following bureaus and offices: 
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1. 
Bureau of Food Security; 
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2. 
Bureau of Agriculture and Fisheries Product Standards; 
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3. 
Bureau of Quarantine; 
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Bureau of Inspection and Food Safety; and 
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Control and Surveillance Office. 
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Section 22. Bureau of Food Securify. -- There shall be a Bureau of 
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Food Security (BFS) which shall be headed by a Director, a career officer. 
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The BFS shall have the following functions: 
I. Formulate, develop, promulgate and implement a national food 
security program in coordination with the appropriate government and private 
agencies, offices, entities and units; 
2. Monitor and provide updated information on the current status of the 
volume of rice stocks and major staples of the country; 
3. Make regular national and regional forecasts on the supply and 
demand of rice and major staples and, based on forecasts of rice shortages and 
during calamities, exercise control over the flow and distribution of rice in order to 
ensure its availability; 
4. Recommend to the AFRDEC and other appropriate offices, research, 
development and extension subjects and activities in support of the national food 
security program; and 
5. Perform such other functions as may be provided by law or assigned 
to it by the Secretary. 


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Section 24. 
Transfer of Powers and Funcfions. -- The regulatory 
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power and functions and the appropriate units or sections of the National Food 
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Authority shall be transferred to the Bureau of Food Security and rationalized in 
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accordance with the provisions of this Act. 
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Section 25. Bureau of Agriculture and Fishery Product Standards. --- 
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There shall be a Bureau of Agriculture and Fisheries Product Standards 
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(BAFPS) which shall be headed by a Director, a career officer. 
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The 
BAFPS 
shall 
have 
the 
following 
f u n ct ion s : 
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1. 
Formulate and enforce standards of quality in the processing, 
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preservation, packaging, labeling, importation, exportation, distribution, and 
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advertising of agricultural and fisheries products; 
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2. 
Conduct research on product standardization, alignment of the 
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local standards with the international standards; and 
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3. 
Conduct regular inspection of processing plants, storage facilities, 
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abattoirs, as well as public and private markets in order to ensure freshness, 
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Section 26. Transfer of Powers and Functions. -- The 
powers 
and 
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functions of the National Dairy Authority, Food Development Center and the units 
safety and quality of products. 
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or sections of offices involved in the development and implement of agriculture 
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Agriculture and Fisheries ProductStandards. 
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Section 27. 
Bureau of Quarantine. --- There shall be a Bureau of 
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and fisheries standards shall be transferred to and integrated with the Bureau of 
Quarantine (BQ) that shall be headed by a Director, a career officer. 
The BQ shall have the following functions: 
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1. Examine imported plants and animals, their products, and other 
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materials capable of harbouring pests, pathogens and vectors of diseases and 
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process requests for approval of import-export permits; 


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laws; 
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so requires; 
2. Enter into and inspect all buildings, storage places, transportation 
vehicles and carriers, passengers, crew, luggage and mails for the purpose of 
implementing Section 27(a) of this Chapter and other regulatory and quarantine 
3. Inspect, administer treatment and certify plants and animals, their 
products and other related materials intended for export, if the importing country 
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4. Confiscate and destroy or refuse entry of plants, animals, and their 
products involved in prohibited importation and deny inspection certification or 
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clearance of the same; and 
5. Perform such other functions as may be provided by law or assigned 
to it by the Assistant Secretary for Regulatory Services. 
Section 28. Transfer of Powers and Functions. -- The appropriate 
units or sections of the Bureau of Animal Industry and Bureau of Plant Industry 
are hereby transferred to and integrated with the Bureau of Quarantine and 
rationalized in accordance with the provisions of this Act. 
Section 29. Bureau of lnspection and Food Safety. --- There shall be a 
Bureau of Inspection and Food Safety (BIFS) which shall be headed by a 
Director, a career officer. 
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1. Formulate, develop, promulgate, implement and monitor compliance 
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with guidelines pertaining or related to food safety, the use of fertilizers and 
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pesticides consistent with sustainability in agriculture and fisheries, and proper 
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labeling of agriculture and fisheries products; 
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2. Conduct inspection of agriculture and fisheries products for the 
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purpose of implementing Section 29(a) of this Chapter and conduct food safety 
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and consumer education programs; and 
The BIFS shall have the following functions: 


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3. Perform such other functions as may be provided by law or assigned 
to it by the Assistant Secretary for Regulatory Services. 
Section 30. Transfer of Functions. -- The functions of the National 
Meat Inspection Council, and the Fertilizer and Pesticide Authority are hereby 
transferred and integrated with the Bureau of Inspection and Food Safety and 
rationalized in accordance with this Act. 
Chapter 5 
Production Assistance Services 
Section 31. 
Production Assistance Services. - There is hereby 
created a Production Assistance Services (PAS) which shall be headed by an 
Undersecretary and shall have the following functions: 
1. 
Coordinate the provision of public goods that are critical to the 
efficient production of agricultural commodities; and 
2. 
Support farmers, fisherfolk and their organizations, the local 
government units and participants in the agriculture and fisheries sector in 
increasing production, harvesting, storage and handling, processing, marketing, 
infrastructure, technology and related assistance. 
Section 32. Bureaus and Offices, -- The PAS shall be composed of the 
following bureaus and offices: 
1. 
Bureau of Irrigation Services; 
2. 
Bureau of Soil and Water Management; 
3. 
Bureau of Rural Infrastructure Modernization; and 
4. 
Bureau of Credit Services Support. 
Section 33. Bureau of lrrigation Services. --- The National Irrigation 
Administration is hereby renamed the Bureau of Irrigation Services (BIS) and 
rationalized in accordance with the provisions of this Act. 
The BIS shall be headed by a Director, a career officer, and shall have the 
following functions: 


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1. Coordinate with and provide technical assistance to the local 
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government units and other appropriate government and private agencies, 
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institutions, and offices in planning, designing, constructing, and selecting 
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appropriate irrigation development schemes based on the criteria specified in 
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Section 28 of R.A. 8435; 
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2. Improve, rehabilitate, and maintain all types of irrigation projects 
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including the operation of major irrigation structures such as the headwork and 
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main canals, and turn-over of the operations and maintenance of the national 
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irrigation system's secondary canals and on-farm facilities to qualified Irrigators 
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the planning, design, and management of communal irrigation systems including 
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the transfer of the assets and resources of the National Irrigation Administration 
in relation to the communal irrigation systems to the local government units; 
4. Formulate and develop a plan for the promotion of a private-sector led 
development of minor irrigation systems such as Shallow Tube Wells (STWs), 
Low Lift Pumps (LLPs) and other inundation systems which shall be included in 
the Agriculture and Fisheries Modernization Plan referred to in Chapter 2 of R.A. 
8435; 
5. Review and recommend proposals for the construction of irrigation 
facilities through other viable schemes such as build-operate-and-transfer, build- 
transfer, and other schemes that will fast track the development of irrigation 
systems; 
6. Review irrigation service fee rates and recommend to the Department 
reasonable rates; 
7. Monitor the implementation of and evaluate research, development 
programs pertaining to irrigation and review every four (4) years all existing 
irrigation systems to determine their viability and effectiveness; 


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8. Recommend plans, programs, policies, rules, and regulations to the 
Secretary and provide for the technical assistance in the implementation of the 
same; and 
9. Perform such other functions as may be provided by law or assigned 
to it by thG Secretary. 
Section 34. Bureau of Soils and Wafer Management. --- There shall be 
a Bureau of Soils and Water Management (BSWM) which shall be headed by a 
Director, a career officer. 
The BSWM shall have the following functions: 
1. Advise and render assistance on matters relating to the utilization and 
management of land and water resources; 
2. Formulate measures and guidelines for effective soil, land, and water 
resource utilization, as well as soil conservation in agricultural areas and other 
areas affecting agriculture; 
3. Prepare plans and recommendations, as well as assist the farmers, 
local government units and other members of the agriculture sector, in soil 
impounding, prevention of soil erosion, fertility preservation and other matters 
related to soil and water management; 
4. Coordinate with government agencies on matters related to soil and 
water management; 
5. Engage in rainmaking projects for agricultural areas and watersheds to 
solve the problem of prolonged droughts and minimize their effects on standing 
ag ricu It u ral crops; 
6. Recommend plans, programs, policies, rules and regulations to the 
Secretary and provide technical assistance in the implementation of the same; 
and 
7. Perform such other functions as may be provided by law or assigned 
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to it by the Assistant Secretary for Support Services. 


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Section 35. Bureau of Rural Infrastructure Modernization. --- There 
shall be a Bureau of Rural Infrastructure Modernization (BRIM) which shall be 
headed by a Director, a career officer. 
The BRIM shall have the following functions: 
1. 
In coordination with Department of Public Works and Highways, the 
Department of Transportation and Communications, the Department of Trade 
and Industry 
and the local government units, address the infrastructure 
requirements of the agriculture and fisheries sectors; 
2. 
Together with the local government units, strengthen its agricultural 
and fisheries engineering groups to provide the necessary technical and 
engineering support in carrying out the smooth and expeditious implementation 
of agriculture and fisheries infrastructure projects; 
3. 
Coordinate with the Department of Public Works and Highways for 
the purpose of determining the order of priorities for public works funded under 
the Public Works Act which directly or indirectly affect agriculture and fisheries 
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Coordinate 
with 
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of 
Transportation 
and 
Communications and other appropriate government agencies and offices, for the 
purpose of determining priority fishports, seaports and airports and facilitating the 
installation of bulk-handling and storage facilities, and other post-harvest facilities 
needed in order to enhance the marketing of agriculture and fisheries products; 
5. 
Coordinate with the local government units and resident farmers 
and fisherfolk in identifying priority locations of farm-to-market roads; 
6. 
Coordinate with the Department of Energy, Department of Public 
Works and Highways, National Electrification Administration, and National Power 
Corporation for the identification and installation of appropriate types of energy 
sources particularly in the use of non-conventional energy sources for the locality 
in order to enhance agriculture and fisheries development in the area; 


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Coordinate 
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Communications to facilitate the installation of telecommunication facilities in 
priority areas; 
8. 
Coordinate with the Department of Public Works and Highways and 
local government units for the identification and installation of water supply 
system in 'the locality for agro-industrial uses; 
9. 
Coordinate with the Post-Harvest Horticulture, Training and 
Research Center of the University of the Philippines at Los Batios to identify 
appropriate post-harvest facilities and technology; and 
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Perform such other functions as may be provided by law or 
assigned to it by the Assistant Secretary for Support Services. 
Section 36. Bureau of Credit Supporf. --- There shall be a Bureau of 
Credit Support which shall be headed by a Director, a career officer. 
The BCS shall have the following functions: 
1. Monitor the implementation of the agriculture, fisheries, and agrarian 
reform credit and financing system including the Agro-Industry Modernization 
Credit and Financing Program (AMCFP) in accordance with the provisions of 
Section 23 of R.A. 8435; 
2. Review all existing credit and guarantee schemes and funds pertaining 
to the agriculture and fisheries sectors in order to rationalize and consolidate the 
same into an Agriculture and Fisheries Credit Guarantee Fund in accordance 
with the provisions of Section 25 of R.A. 8435; 
3. Recommend plans, programs and policies relating to credit assistance 
for the agriculture and fisheries sectors; 
4. Coordinate with other government and private agencies and entities in 
the performance of its functions; and 
5. Perform such other functions as may be provided by law or assigned 
to it by the Assistant Secretary for Support Services. 


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Section 37. Transfer of Functions. -- The powers and functions of the 
Agriculture Credit Policy (ACPC) and the Quedan Rural Credit and Guarantee 
Corporation (Quedancor) are hereby transferred to and integrated with the BCS 
and rationalized in accordance with the provisions of this Act. 
Chapter 6 
Research, Development and Extension Services 
Section 38. Research, Development and Extension Services. --- There 
is hereby created the Research, Development and Extension Services which 
shall be headed by an Undersecretary and shall consist of two (2) bureaus: 
1. Bureau of Agriculture and Fisheries Research and Development; and 
2. Bureau of Agriculture and Fisheries Extension 
Section 39. 
Bureau of Agriculture and Fisheries Research and 
Development. --- The Bureau of Agriculture Research is hereby renamed the 
Bureau of Agriculture and Fisheries Research and Development (BFARD) and 
shall be headed by a Director, a career officer. The functions of the Bureau of 
Fisheries and Aquatic Resources are hereby transferred to and integrated with 
the BAFRD and likewise rationalized in accordance with this Act. 
The BAFRD shall have the following functions: 
I. Serve as the Secretariat of the Agriculture and Fisheries Research and 
Development Council (AFRDC) to ensure that all agriculture and fisheries 
research is coordinated and undertaken for maximum utility to agriculture and 
fisheries: 
2. In coordination with appropriate government and private agencies, 
formulate the Agriculture and Fisheries National Research and Development 
System (AFNaRDS) for approval by the AFRDC; 
3. Coordinate the research and development system of the Department 
which includes the National Research Centers (NRC), Regional Integrated 
Agriculture and Fisheries Research Centers (RIAFRC), Regional Integrated 


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Agricultural 
Research Centers (RIARC), Research Outreach Stations (ROS), 
and the Research and Development units of bureaus and attached agencies; 
4. Provide leadership in the formulation of the national research and 
development agenda, approve the releases of funds for all agriculture and 
fisheries Research and Development and, in coordination with the State 
Universities and Colleges (SUCs), Philippine Council for Agriculture Research 
and Rural Development (PCARRD) and Philippine Council for Aquatic and 
Marine Research and Development (PCAMARD), draft and regularly review the 
"Guidelines in Planning and Implementation of Agriculture and Fisheries 
Research 'I; 
4. Tap farmers and fisherfolk, their organizations, and research 
institutions, especially state colleges and universities, in the conduct of research 
for use by the Department and its clientele, particularly farmers, fisherfolk, and 
other rural workers; 
5. Directly administer, and implement a monitoring 
and evaluation 
system for all research centers, institutes and research networks in agriculture 
and fisheries, specifically, but not limited to those identified in Chapter 7 of this 
Act and, in coordination with appropriate agencies, draft the program, 
parameters and guidelines for the evaluation of agricultural and fisheries 
research and development pe'rformance, activities and outputs incorporating the 
Output-Oriented Performance Standards (OOPS) and the standards and 
accreditation guidelines referred to in Section 72 (5) and the provisions of the 
Magna Carfa for Science and Technology Personnel; 
6. In coordination with the Agriculture and Fisheries Training Institute 
(AFTI) and other appropriate agencies, draft and regularly review the following: 
a. "Policies on the Autonomy and Academic Freedom of Research 
and Development Institutions in Agriculture and Fisheries" in relation to 
the institutional, fiscal and administrative autonomy and exercise of 


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academic freedom of professional staff and institutions including 
guidelines for the use and reinvestment of research and development 
extension income into research and development extension activities; 
b. 
"Harmonized Merit and Out-put Oriented Promotion System 
for Technical and Scientific Personnel Involved in Agriculture and Fishery 
Research and Development Extension" to harmonize performance 
standards, qualifications, salary scales and the collegial process of 
performance evaluation including the setting up of minimum qualification 
standards, compensation and incentive structure for directors and heads 
of research centers; 
C. 
"Salary and Fringe Benefit System for Technical and 
Scientific Personnel Involved in Agriculture and Fisheries Research and 
Development Extension" with the aim of providing a competitive edge in 
attracting and retaining in the research and development extension 
system the brightest and most productive technical and science 
personnel; 
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8. Coordinate with privately owned-and funded research centers, 
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institutes, and networks; 
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9. Develop an agriculture and fisheries research and development 
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information system linked to the National Information Network (NIN); 
I O .  Manage the research and development fund of the Department based 
on the guidelines approved by AFRDC; and 
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Section 40. Bureau of Agriculture and Fisheries Exfension. --- There 
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shall be a Bureau of Agriculture and Fisheries Extension (BAFEx) which shall be 
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headed by a Director, a 
career officer. 
The BAFEx 
shall administer the 
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following offices: 
11. Perform such other functions as may be provided by law or assigned 
to it by the Undersecretary for Research, Development and Extension. 


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2. Technology Tracking Office; and 
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3. Extension and Marketing Communication. 
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Section 4 1. 
Agriculture and Fisheries Training Institute -- The 
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Agriculture Training Institute shall be renamed as the Agriculture and Fisheries 
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Training Institute (AFTI) and its functions rationalized in accordance with the 
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provisions of this Act. Other offices and units of the department involved in 
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extension services in agriculture and fisheries shall be transferred and integrated 
with the AFTI. 
The AFT1 shall be headed by the Assistant Director for Training and shall 
have the following functions: 
a. 
Serve as the Secretariat for extension and training 
in 
agriculture and fisheries of the AFRDEC; 
b. 
Advise the Department in the management of financial and 
logistical support for extension based on principles approved by the 
AFRDEC; 
c. 
In coordination with appropriate government and private 
agencies, formulate the Agriculture and Fisheries National Extension 
System (AFNES) in harmony with the Agriculture and Fisheries National 
Research and Development System (AFNaRDS) for approval by the 
AFRDEC; 
d. 
Coordinate with farmers and fisherfolk organizations and 
with appropriate government and private agencies in order to determine 
priority areas for training and extension and in gathering information 
related to agriculture and fisheries; 
e. 
Provide leadership in the formulation of the national 
agriculture and fisheries extension agenda and the corresponding budget; 


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f. 
Directly administer and implement a monitoring and 
evaluation system for the AFNES; 
g. 
Prepare an integrated training plan for publicly-funded 
training in agriculture and fisheries for review by the AFRDEC and, in 
consultation with representatives of the institutions in the AFNES, shall 
promulgate the “Guidelines for the Planning and Implementation of 
Agriculfure and Fisheries Exfension” that shall provide guidelines on 
multidisciplinary extension work and its linkages to research and 
development , and strategies for increasing the participation of the 
clientele and the industry in the planning and in the monitoring and 
evaluation of extension programs; 
h. 
Set up a certification system for vocational and technical 
training in agriculture and fisheries in collaboration with the Technical 
Education and Skills Development Authority (TESDA); 
i. 
Develop and administer a national human resources 
development program for short-term and degree and non-degree training 
for local government units extension personnel in all areas related to 
agriculture and fisheries which include production, processing, marketing, 
use of appropriate technology, networking, product standards, credit 
facilities and entrepreneurship; 
j. 
In consultation with the Civil Service Commission (CSC), 
Department of Interior and Local Government and the local government 
units, formulate a national merit and output-oriented promotion system 
governing all extension personnel in the national and local levels; 
k. 
Develop an agriculture and fisheries extension information 
and communication system linked with the National Information Network 
and maintain a computerized database on the extension force, covering 
all agriculture and fisheries extension personnel of local government units, 


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the Department and its attached agencies, bureaus and other government 
and private agencies; 
I. 
Provide technical assistance to local government units in the 
implementation of extension services in agricultural and fisheries 
development plans and mobilize technical resources from all sources to 
assist local government units in solving specific problems related with 
extension services in agriculture and fisheries; 
m. 
Undertake relevant special studies related to training and 
extension services in agriculture and fisheries; 
n. 
Recommend specific policies and procedures related to 
training and extension in agriculture and fisheries; 
0. 
Provide an integrated and comprehensive multi-media 
support on extension and training services for the national research and 
development program; 
p. 
Perform such other functions as may be provided by law or 
assigned to it by the Bureau Director of the BAFEx. 
Section 42. 
Technology Tracking Office. --- There shall be a 
Technology Tracking Office (TTO) which shall be headed by an Assistant 
Director. The TTO shall establish a technology tracking system in order to 
monitor periodically the extent and level of technology applications in major 
agriculture and fishery commodities. 
Section 43. Extension and Marketing Communication Office. --- There 
shall be an Extension and Marketing Communication Office (EMCO) which shall 
be headed by an Assistant Director. The EMCO shall have the following 
functions: 
1. 
Provide an integrated and comprehensive multi-media support on 
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extension and training services for the national research and research extension 
program in agriculture and fisheries; 


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2. Develop information materials concerning agriculture and fisheries; 
3. Coordinate with government and private agencies for the collection of 
data related to fisheries and agriculture; and 
4. Perform such other functions assigned by the Secretary. 
Chapter 7 
Research & Development Centers, Stations, Outreach and Network 
Section 44. National Commodify Research Centers. --- The National 
Commodity Research Centers (NCRC) which are government agencies involved 
in agriculture and fisheries research and development shall be under the direct 
administration and/or supervision of the Bureau of Agriculture and Fisheries 
Research and Development (BAFRD) in accordance with their respective 
funding agreements or relationship with the Department and consistent with the 
national research and development agenda as formulated by the Agriculture and 
Fisheries Research Development and Extension Council (AFRDEC). 
Section 45. Functions of National Commodify Research Centers. --- 
The National Commodity Research Centers (NCRC), under the guidance of the 
Bureau of Agriculture and Fisheries Research and Development (BAFRD) and 
the Bureau of Agriculture and Fisheries Extension (BAFEx) 
shall have the 
following functions: 
1. Provide national leadership in the planning and coordination of the 
implementation, monitoring and evaluation of research and development 
extension programs; 
2. Undertake midstream and downstream 
applied research in the 
region, and 
3. Develop and maintain a network of provincial collaborators in 
undertaking the regional research and development extension programs. 
Section 46. Rationalized Offices. --- The following offices shall be 
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primarily engaged in research and development extension and rationalized as 


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National Commodity Centers in accordance with the provisions of this Act: Fiber 
Development Authority, National Crop Protection Center, National Fisheries 
Development Institute, Bureau of Post-Harvest Research and Extension, 
National Tobacco Administration, Philippine Carabao Center, Philippine Coconut 
Authority, Philippine Cotton Corporation, Philippine Rice Research Institute, and 
the Sugar Regula tory Ad ministration. 
Other agencies, offices, units or sections of agencies engaged in 
agriculture and fisheries research and development shall be integrated, 
whenever appropriate with the above National Commodity Research Centers 
(NCRC) or shall be transformed into separate NCRC as may be determined by 
the Agriculture and Fisheries Research and Development Extension Council 
(A F R D E C) 
The rationalized offices under this section including international research 
entities engaged in agriculture and/or fisheries research and development and 
extension such as the South East Asian Fisheries Development and Extension 
Council (SEAFDEC) shall form part of the Agriculture .and Fisheries National 
Research and Development System (AFNaRDS) or Agriculture and Fisheries 
National Extension System (AFNES) in accordance with the provisions of this 
Act. 
Section 47. State Universities and Colleges as National Mulfi-Media 
Commodity Research Centers, Regional Research Sfafions or Cooperafing 
Stafions. --- Selected state universities and colleges shall be included under the 
National Agriculture and Resources Research and Development Network 
(NARRDN) and the National Aquatic and Resources Research and Development 
System (NARRDS) as National Multi-Commodity Research Centers, (NMCRC), 
Regional Research Stations (RSS), or Cooperating Stations (CS), as determined 
by the AFRDEC. 


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Section 48. National Mulfi-Commodity Research Cenfers. -- National 
Multi-Commodity Research Centers are hereby defined as National Universities 
and Colleges of Agriculture and/or Fisheries (NUCAF) that are assigned national 
or zonal responsibilities on specific commodities by the Agriculture and Fisheries 
Research and Development Extension Council based on recommendations of 
the Bureau of Agriculture and Fisheries Research and Development 
in 
coordination with the Philippine Council for Agricultural Research and Rural 
Development and the Philippine Council for Aquatic and Marine Research and 
Develop me nt. 
Section 49. 
Functions of fhe National Multi-Commodity Research 
Centers. -- National Multi-Commodity Research Centers, in relation to their 
assigned national, zonal or commodity responsibilities, shall have the following 
functions: 
1. 
Provide leadership in the planning, implementation, monitoring and 
evaluation of their research, development and extension programs: 
2. 
Undertake basic research; 
3. 
Undertake upstream applied research including strategic research; 
and 
Develop and maintain a network of national regional and provincial 
4. 
colla bora tors. 
Section 50. Functions of the Regionat Integrated Agricultural 
Research Centers. -- The Regional Integrated Agricultural Research Centers, 
in relation to their assigned commodities or fields, under the guidance of the 
National Commodity Research Centers and in close cooperation with the 
relevant National Universities and Colleges of Agriculture and Fisheries, 
Regional Field Units and Provincial Agriculturist shall have the following 
functions: 


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Provide leadership in the planning and coordination of the 
implementation, 
monitoring and evaluation of 
an integrated 
research, 
development and extension program within a farming systems approach in 
coordination with the regional tr.aining centers; 
2. 
Undertake midstream and downstream applied research in the 
region; and 
3. 
Develop and maintain a network of provincial collaborators in 
undertaking the regional research, development and extension programs. 
Section 51. Functions of the Regional Oufreach Stafions. -- The 
Regional Outreach Stations, under the guidance of the Regional Integrated 
Agricultural Research Centers and in close collaboration with the Provincial 
Agriculturist and Philippine Institute of Agriculture and Fisheries, shall have the 
following functions: 
1. 
Serve as the satellite stations of the Regional Integrated 
Agricultural Research Centers and links between the regional and provincial 
research, development and extension programs; 
2. 
Undertake downstream applied research; 
3. 
4. 
5. 
Propagate genetic materials. 
Section 52. Regional Research Stafions. -- The Regional Research 
Stations are hereby constituted to consist of National Universities and Colleges 
Demonstrate new and appropriate technologies; 
Serve as an educational and training facility; and 
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that are assigned regional responsibilities on specific commodities by the 
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Agriculture and Fisheries Research, Development and Extension Council as 
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recommended by the Bureau of Agriculture and Fisheries Research and 
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Development in coordination with the Philippine Council for Agricultural 


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Research and Rural Development and the Philippine Council for Aquatic and 
Marine Research and Development. 
Section 53. Functions of the Regional Research Stations. -- The 
Regional Research Stations, under the technical guidance of the National 
Central Research Centers and in close cooperation with the Regional Integrated 
Agricultural Research Centers and the Provincial Agriculturists, shall, in relation 
to their assigned national, zonal, or commodity responsibilities, have the 
following functions: 
1. Provide regional leadership in the 
planning, implementation, 
monitoring and evaluation of the research, development and extension 
programs; 
2, Undertake midstream and downstream applied research in the region; 
and, 
3. Develop and maintain a network of provincial collaborators. 
Section 54. Cooperating Stations. -- The Cooperating Stations are 
hereby constituted to consist to National Universities and Colleges of Agriculture 
and Fisheries or Provincial Institutes of Agriculture and Fisheries that are 
assigned provincial responsibilities on specific commodities or areas by the 
Agriculture and Fisheries Research, Development and Extension Council as 
recommended by the Bureau of Agriculture and Fisheries Research and 
Development in coordination with the Philippine Council for Agriculture Research 
and Rural Development and the Philippine Council for Aquatic and Marine 
Research and Development. 
Section 55. Functions of the Cooperating Stations. --- The Cooperating 
Stations shall, under the guidance of the Regional Research Centers or the 
Regional Integrated Agricultural Research Centers and in close collaboration 
with the Research Outreach Stations and the Provincial Agriculturist, in relation 
to their assigned commodities, have the following functions: 


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1. Serve as satellite stations of the Regional Integrated Agriculture 
Research Centers or the Regional Research Stations and link the regional and 
provincial research, development and extension programs; 
2. Undertake downstream applied research relevant to the province; 
3. Demonstrate new and appropriate technologies in the province; and 
4. Serve as educational and training facilities. 
Chapter 8 
Regional Operations 
Section 56. Regional Qperations. -- The Department shall establish, 
operate and maintain a Regional Office in each of the country’s administrative 
regions, each of which shall be headed by a Regional Executive Director. The 
Regional Executive Director shall be assisted by three (3) Technical Directors 
equivalent to the level of Assistant Regional Directors assigned to Marketing 
Assistance and Regulatory Services, Production Support Services, and 
Research, Development and Extension Services, respectively. 
Section 57. Functions of the Regional Offices. -- The regional offices 
shall have the following functions: 
1. Implement and enforce in its area the laws and policies, plans, 
programs, projects, rules and regulations issued by the Department such as 
quarantine and food safety standards laws, rules and regulations; 
2. Implement and provide regulatory and support services and coordinate 
and/or exercise supervision over 
research, development and extension 
programs at the regional level; 
3. Provide technical and financial support to the local government units in 
terms of, but not limited to extension and training services, and in the 
implementation and management of agriculture and fisheries development 
programs; 


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4. Monitor and evaluate the local government units compliance with 
nationally-mandated programs and standards relating to agriculture and 
fisheries; 
5. Coordinate with government and private agencies and offices; and 
6. Perform such other functions as may be provided by law or assigned 
by the Undersecretary for Operations; 
Section 61. Other Offices and Units in Regional Offices. -- Other 
offices and units in the regional offices shall be rationalized and coordinated with 
the Administrative and Finance Services, Information and Communication Staff, 
and Policy and Planning Service structure of the Office of the Secretary of the 
Department 
Chapter 9 
The National Agriculture and Fisheries Modernization Council 
Section 58. 
National Agriculture and Fisheries Council for 
Modernization. --- There is hereby created a National Agriculture and Fisheries 
Council for Modernization (NAFCM), hereinafter referred to as the Council, a 
body attached to the Office of the Secretary, to promote a policy environment 
that will accelerate the development of a sustainable and globally competitive 
agriculture and fisheries industry. 
Section 59. 
Functions of the Council. -- The Council shall have the 
general powers and attributes of a corporation as set forth in the Corporation 
Law and the mandate to perform the following functions, powers and 
responsibilities: 
1. 
To formulate, implement, review and revise a medium and long- 
term comprehensive agriculture and fisheries modernization plan. Such plan 
shall be developed on the basis of the long-term agriculture and fisheries plans 
and programs developed by the Municipal, Provincial and Regional Agriculture 


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and Fisheries Development Councils for Modernization to effect consistency of 
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2. 
To ensure food security, alleviate poverty in the rural sector, 
such plans with national development framework and policies; 
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promote 
sustainable 
growth, 
and 
develop 
internationally 
competitive 
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agribusiness and fisheries ventures; 
3. 
Serve as the consultative and feedback mechanism which shall 
enable the farmers, fisherfolk and those involved in agriculture and fisheries at all 
levels of operations from the municipal up to the national level to be actively 
involved in the formulation of policies, plans, programs and activities; 
4. 
Review and recommend for the approval of the Secretary reports 
for submission to the Congressional Oversight Committee on Agriculture and 
Fisheries Modernization created under Republic Act 8435; 
5. 
Formulate policies, plans and programs on food production, post- 
harvest handling, storage, milling, distribution and credit support, including the 
coordination of its implementation among the various agencies and institutions of 
the government and the private sector; 
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6. 
Ensure the best administration of market development programs 
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for agricultural commodities and food products; 
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7. 
Ensure an adequate flow of these products to consumers as well 
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distribution; 
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8. 
Foster the empowerment of agricultural producers into effective 
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associations or corporations under their own control for greater unity of effort in 
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marketing; 
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9. 
Promote the establishment and financing of farm marketing 
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systems of producer-owned and producer-controlled cooperative associations 
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and other .agencies; 
as a fair return to producers and prevent inefficient and wasteful methods of 


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Set and review annually the government’s buffer grain stock 
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requirements at the national and local levels and ensure that these requirements 
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are achieved; 
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11. 
Effect, with the Regional Agricultural Councils and/or other 
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government entities as implementing agents, the domestic procurement of the 
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government’s buffer grain stock through purchases of warehouse receipts or 
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quedans of grain deposits in government, farmer-cooperatives and private 
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warehouses and/or by buying grain produce directly from farmer cooperatives; 
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12. 
Cause the direct importation of rice and allocation of import quotas 
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among private entities, especially certified and licensed farmer cooperatives; 
13. 
Promulgate the government’s stabilization price for grains to assure 
farmers with a reasonable mark-up on their production cost and participation in 
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stock; 
the profits that may be realized from the sale of the government’s buffer grain 
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14. 
Reorient the country’s food production policies, plans and 
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programs .in such a way that the thrust of increasing the productivity of farmers is 
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not only in terms of yield per unit area but more so in aggregate income from 
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farming enterprises; 
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15. 
Promote and coordinate plans and programs of assistance to 
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producers through input supplies, purchases and other operations, including 
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loans in partnership with available financial sources or institutions; 
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16. 
Institutionalize and actively promote the adoption of sustainable 
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agricultural practices at all farm levels so that steady production of various food 
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commodities to cope with the demands of a growing population is achieved in a 
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way that maintains the productivity of the soil and diminishes any adverse impact 
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to the immediate environment; and 


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Undertake other tasks and activities as may be necessary to 
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ensure the attainment of efficient agricultural marketing systems and food 
security. 
Section 60. Composition of the Council. --- The powers, functions and 
affairs of the Council shall be exercised and directed by a governing board to be 
chaired by the Secretary with the Secretary of Agrarian Reform as Vice- 
Chairman; and with six (6) members from the government sector who shall sit for 
a term of three (3) years; and five representatives from the private sector, who 
shall sit for a term of three years, without reappointment. The members from the 
government sector shall consist of the respective heads of the following agencies 
or offices: the National Economic and Development Authority; the Department of 
Environment and Natural Resources; the Department of Trade and Industry, the 
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Department of Transportation and Communications, the Department of Interior 
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and Local Government, and the Department of Public Works and Highways. Any 
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of the government members may designate his permanent representative who 
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shall serve in his place as member of the board: Provided, That such 
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representative shall have a rank not lower than Undersecretary. The remaining 
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five (5) members of the Council shall consist of representatives to be nominated 
by accredited non-government organizations and peoples’ organizations, and 
appointed by the President to. represent the following sectors: small farmers, 
fisherfolk, agricultural traders, agri-based manufacturers, and agri-based 
exporters . 
The governing board shall meet regularly at least every month on any 
date to be determined by the Chair: Provided, That the Chair may convene 
special meetings to discuss urgent matters needing immediate resolution. The 
Council members shall be entitled to a per diem for every meeting actually 
attended: Provided, That in no case shall per diems exceed the equivalent for 


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more than four (4) meetings per month. 
regulations to govern its deliberations and other official actions. 
Section 61. Organization and Staff -- The management of the day-to- 
day operations of the Council shall be vested in an Executive Director who shall 
be appointed with the rank of an Undersecretary by the President of the 
Philippines. 
It shall prescribe the rules and 
The Council shall set up the organizational structure, staffing pattern, 
qualification standards, compensation scale, functions and authorities of their 
officers and employees, pursuant to pertinent laws, rules and regulations being 
implemented by the Civil Service Commission and the Department of Budget 
and Management. 
Section 62. Committees. -- Committees shall be organized within the 
Council to address the respective concerns of the following: 
I. National Agriculture and Fisheries Education System (NAFES); 
2. 
The marketing umbrella for agriculture and fisheries products; 
3. 
Agro-industrial 
Modernization 
Credit 
and 
Finance 
Program 
(AMCFM); and 
4. 
Agriculture and Fisheries National Research and Development 
System (AFNaRDS). 
A Technical Advisory Group composed of representatives from various 
agricultural and fisheries professions and the scientific community shall be 
created to serve all the technical needs of the committees. 
Section 63. The Consultative Nefwork of National Agriculture and 
Fisheries Council for Modernization. --- The following shall be established 
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1. The Regional Agriculture and Fisheries Council (RAFC) 
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2. The Provincial Agriculture and Fisheries Council (PAFC) 
and organized to form the consultative network of the National Agriculture and 
Fisheries Council for Modernization (NAFCM): 


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3. The Municipal Agriculture and Fisheries Council (MAFC) 
Section 64. Sfrucfure of the Agriculture and Fisheries Councils. --- 
The Agriculture and Fisheries Councils (AFC) shall have the following 
membership and organizational structure: 
1. At the regional level, the presiding officer shall be the Regional 
Agriculture and Fisheries Council (RAFC) chairperson, with all Provincial and 
Fisheries Council chairpersons and all Provincial Agriculture Officers of the 
Department as members. The regional field units of the Department shall serve 
as the Secretariat. 
2. At the provincial level, the presiding officer shall be the Provincial 
Agriculture and Fisheries Council (PAFC) chairperson, to be elected from among 
the members who shall consist of all Municipal Agriculture and Fisheries Council 
Chairpersons and all Municipal Agriculture officers as members. The Provincial 
Agrarian Office shall serve as the Secretariat. 
3. At the municipal level, the presiding officer shall be the Municipal 
Council Chairman, to be elected from among the representatives of the following 
sectors: farmers’ organizations, fisherfolks’ organizations, non-government 
organizations, women, youth and agri-business groups. The Municipal Agrarian 
Office shall serve as the Secretariat. 
Section 65. Functions of the local AFCs. --- The local AFCs shall have 
the following functions: 
1. Convene meetings to discuss relevant agriculture and fisheries issues 
for submission and recommendation to the National Agriculture and Fisheries 
Council for Modernization (NAFCM) in order to ensure food security; 
2. Review and assess agriculture and fisheries programs; 
3. Represent the agriculture and fisheries sectors and participate actively 
in the Local Development Councils (LDCs); 


4. Assist the Department in the formulation of development plans for 
agriculture and fisheries; and 
5. .Perform such other functions as may be assigned to it by the Council 
to achieve its goals and objectives. 
Section 66. Transfer of Powers and Funcfions. -- The powers and 
functions of the National Agricultural and Fisheries Council, the National Nutrition 
Council, and the Livestock Development Council are hereby transferred to and 
integrated with the National Agriculture and Fisheries Council for Modernization. 
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Chapter I O  
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The Agriculture and Fisheries Research Development and Extension 
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Council 
Section 67. 
The Agriculture and Fisheries Research Development 
and Extension Council. 
There is hereby created the Agriculture and 
Fisheries Research Development and Extension Council (AFRDEC) which shall 
be attached to the Office of the Secretary. It shall be headed by the Secretary 
as Chairperson and the Director General as Vice-Chairperson. 
The 
Undersecretary for Research, Development and Extension Services of the 
Department shall serve as the Secretary of the Council. 
-- 
Each of the following departments, offices and agencies shall have a 
representative: Department of Agrarian Reform, Department of Environment and 
Natural Resources, Department of Interior and Local Government, Department of 
Science and Technology, Department of Budget and Management, Commission 
on Higher Education and the University of the Philippines at Los Bat7os. 
The 
representatives shall be designated by their respective departments, offices and 
agencies and shall sit as members of the Council for a term of three (3) years. 
The following organizations shall likewise have a representative in the 
Council duly designated by their respective governing boards: League of City 
Mayors, the League of Municipal Mayors and the League of Governors. 


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Each of the fobllowing sectors shaJJ have a representative who shall be 
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appointed by the President upon the nomination of non-government 
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organizations and people’s organizations duly accredited by the Department, 
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and who shall sit as members of the Council for a term of three (3) years with no 
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reappointment: rice farmers, corn and other grains farmers, plantation crop 
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farmers, livestock raisers, poultry raisers, municipal fishers, commercial fishers, 
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aquaculture enterprises, food processing industry, manufacturers of agricultural 
and fisheries machineries, the agriculture and fisheries marketing sector, the 
science and technology 
community, and non-government organizations 
concerned with the environment. 
Section 68. Functions of the Council. -- The Council shall have the 
following functions: 
1. 
Integrate all the research, development and extension functions 
and activities in agriculture and fisheries by enhancing, supporting, coordinating 
and consolidating the Agriculture and Fisheries National Research and 
Development System (AFNaRDS), and in close and effective linkage with the 
Agriculture and Fisheries National Extension System (AFNES); 
2. 
Prepare and oversee the implementation of a comprehensive 
research, development and extension program in agriculture and fisheries 
including the review and rationalization of the roles, functions and organization of 
various research, development and extension centers, institutes, and network 
such as the National Agriculture and Resources Research and Development 
Network (NARRDN) and the National Aquatic Resources and Development 
System (NARRDS) including the Philippine Council for Agriculture and 
Resources Research and Development (PCARRD) and the Philippine Council 
for Aquatic and Marine Research and Development (PCAMRD); 
3. 
Consolidate, 
review 
and 
approve 
the 
national 
research 
development and extension agenda, and the plans and programs developed by 


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the Agriculture and Fisheries National Research and 
(AFNaRDS) and the Agriculture and Fisheries Natioi 
(AF N ES) ; 
4. 
Set policies pertaining to research, develop 
Development System 
al Extension System 
nent and extension in 
agriculture and fisheries which will ensure food security, alleviate poverty, 
promote people empowerment, agricultural and fisheries productivity and 
development, and promote international competitiveness in the agriculture and 
fisheries sectors; 
5. 
Approve 
policies for the 
operationalization 
and 
continued 
strengthening of the institutional capabilities, efficiency, effectiveness and 
integration of the Agriculture and Fisheries National Research and Development 
System (AFNARDS) and the Agriculture and Fisheries National Extension 
System (AFNES), including the setting up of an output-oriented system of 
monitoring and evaluating research, development and extension in agriculture 
and fisheries; 
6. 
Create committees, technical working groups, and commodity 
teams to facilitate the accomplishment of its objectives; 
7. 
Set policies on relations and exchange between Philippine and 
international institutions on agriculture and fisheries research, development and 
extension, and approve the allocation of funds from national as well as foreign 
sources for national research, development and extension programs. 
8. 
Formulate and implement a national program to develop and 
maintain a critical mass of scientists involved in agriculture and fisheries 
research by providing adequate and up-to-date science laboratory facilities and 
equipment, promoting a scientific environment and culture conducive for 
scientific research and creativity, and providing compensation rates and other 
benefits comparable with international standards; and 


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Call on the personnel of any of the services and offices of the 
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Department and other government agencies for technical support and 
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assistance. 
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Section 69. The Secretariat. -- The Bureau of Agriculture and Fisheries 
Research and Development (BAFRD) shall serve as the Secretariat of the 
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Council for research and development while the Agriculture and Fisheries 
Training Institute (AFTI) shall serve as the Secretariat for Extension and 
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Training. 
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2. 
Implementing a system for monitoring and evaluating research, 
The Undersecretary of the Department for Research, Development and 
Extension shall head both Secretariats that shall assist the Council in: 
I. Formulating and setting the priorities for the national research, 
development and extension agenda for agriculture and fisheries; 
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development and extension in agriculture and fisheries; 
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3. 
Preparing details of the budget for the national agriculture and 
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fisheries research, development and extension activities; and 
4. 
Performing such other functions as may be assigned to it by the 
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Section 70. 
Agriculture and Fisheries National Research and 
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Development System) Subsystems. -- The Agriculture and Fisheries National 
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Research.and Development System (AFNaRDS) shall be composed of two (2) 
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subsystems: the Agriculture Research and Development subsystem and the 
Council to achieve its goals and objectives. 
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I. Agriculture Research and Development Subsystem -- 
The 
Fisheries Research and Development subsystem. 
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agriculture research and development subsystem shall be composed of the 
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following: 
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a. 
the agriculture research and development system of the 
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Department; 


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b. 
the national agriculture and resources research and 
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development network including PCARRD; 
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c. 
the Bureau of Agrarian Reform Beneficiaries Development of 
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the Department of Agrarian Reform; 
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d. 
appropriate units and offices of other government agencies 
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with functions relating to agricultural research; 
e. 
f. 
the Commission on Higher Education; 
selected State Universities and Colleges involved in fisheries 
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research; and 
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g. 
private agencies and institutions involved in agriculture 
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research. 
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2. 
Fisheries Research and Development Subsystem shall be 
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composed of the following: 
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a. 
the fisheries research and development system of the 
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Department; 
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b. 
the National Aquatic Resources Research and Development 
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System including the Philippine Council for Aquatic and Marine Research 
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and Development (PCAMRD); 
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c. 
appropriate units and offices of other government agencies 
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with functions relating to, fisheries research; 
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d. 
the Commission on Higher Education; 
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e. 
selected State Universities and Colleges involved in fisheries 
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research, and 
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f. 
private agencies and institutiohs involved in fisheries 
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research. 
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Section 71. Role of the Philippine Council for Agricultural Research 
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and Rural Development and the Philippine Council for Aquatic and Marine 
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Research and Development. - The Philippine Council for Agricultural 


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Research and Rural Development (PCARRD) and the Philippine Council for 
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Aquatic and Marine Research and Development (PCMARD) under the 
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Agriculture and Fisheries Research Development and Extension Council 
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(AFRDEC), shall perform the following functions: 
1. 
Collaborate with the Bureau of Agriculture and Fisheries Research 
and Development in the screening of proposals and in the monitoring of ongoing 
agriculture and fisheries research and development in the country; 
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2. 
Develop methodologies and systems for effective research, 
development and extension planning in agriculture and fisheries emphasizing the 
quality and intensity of participation on farmers, fisherfolk and the industry in 
setting the research, development and extension agenda of the Department and 
related allocation of resources; 
3. 
Develop and coordinate the implementation of output-oriented 
performance standards for staff, institutions and programs in agriculture and 
fisheries research and development; 
4. 
Set-up an efficient and effective computerized system of monitoring 
and evaluation of research, development and extension staff and institutions, 
including databases required for the assessment of research excellence, 
performance and capacity, such as the “Database of Scientific and Technical 
Personnel, ” D at ab as e f o r research , d eve Io p m e n t a n d ex t e n s io n i n f ra s t r u ct u re, 
and “Database of Research, Development and Extension Investment“; 
5. 
Develop and administer a career development program and a 
unified merit promotion system for scientific and technical personnel in 
agriculture and fisheries research, development and extension; 
6. 
Develop and administer a career development program and a 
unified merit promotion system for scientific and technical personnel in 
agriculture and fisheries research, development and extension; 


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7. 
Develop and administer an incentive system to support high quality 
scientific journals in agriculture and fisheries; 
8. 
Develop a human resource maintenance system for providing 
incentives and benefits to technical and scientific personnel in agriculture and 
fisheries aimed at ensuring that agriculture and fisheries institutions gain and 
maintain a competitive edge in attracting and maintaining their staff; and 
9. 
Provide technical'assistance in the improvement of institutions gain 
and maintain a competitive edge in attracting and maintaining their staff. 
Section 72. lnfegrafed Council. -- The Philippine Council for Agriculture 
and Rural Development (PCARRD) and the Philippine Council for Aquatic and 
Marine Research and Development (PCMARD) shall be transferred and 
integrated with the Agriculture and Fisheries, Research, Development and 
Extension Council (AFRDEC). 
Chapter 'l'l 
General Provisions 
Section 73. Other Agencies, Offices and Units. -- Other agencies, 
offices and units engaged in agriculture and fisheries not otherwise specifically 
mentioned in this Act shall be integrated with the appropriate bureaus, councils 
and offices created and/or rationalized in accordance with provisions of this Act. 
The National Stud Farm shall be integrated with the Philippine Racing 
Commission. 
Section 74. Securify of Tenure. -- In the implementation of this Act, the 
Department shall ensure that there shall be no undue loss of employment of 
personnel' as a result of the rationalization authorized herein. In the event that 
the separation of personnel becomes unavoidable because of the integration, 
transfer, or abolition of their office or positions, or the reduction of the functions 
of the office, impact mitigation measures shall be adopted, such as redeployment 


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of separated employees of one unit of the Department to other appropriate units, 
agencies, entities of the Department. 
Section 75. 
Transitory Provision . - In accomplishing the acts of 
rationalization herein prescribed, the following transitory provisions shall be 
complied with: 
1. 
The transfer or integration of a government unit or office shall 
include the functions, appropriations, funds, records, equipment, facilities, 
change in action, rights, other assets, and liabilities, if any, of the transferred or 
integrated unit or office as well as the personnel thereof, as may be necessary 
who shall in hold-over capacity continue to perform their respective duties and 
responsibilities, and receive the corresponding salaries and benefits unless 
separated from government due to causes other than the implementation of the 
provisions, of this Act. 
2. 
3. 
The integrated units or offices shall be deemed abolish. 
Personnel of the transferred or integrated units whose positions are 
not included or who are no longer qualified in the Department’s new position 
structure and staffing pattern shall be deemed separated from service and shall 
be entitled to the benefits provided for in this Act and such other applicable laws; 
The transfer of function which result in the abolition of the unit or 
office that has exercised them shall include the appropriations, fund, records, 
equipment, facilities, change in action, rights, other assets, and personnel as 
may be necessary to the proper discharge of the transferred functions. The 
4. 
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remaining appropriations for funds of the abolished units or offices shall revert to 
the General Fund and its remaining assets, if any, shall be allocated to such 
appropriate units in the new organizational structure of the Department as 
determined by the Secretary or shall otherwise be disposed in accordance with 
the Government Auditing Code and other pertinent laws, rules and regulations. 


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5. 
In case of termination of functions which does not result in the 
abolition of the government unit which has performed such functions, the 
appropriations and funds intended to finance the discharge of such function shall 
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revert to the General Fund, while the records, equipment, facilities, change in 
action, rights and other assets used in connection with the discharge of functions 
shall be allocated to the appropriate units as the Secretary shall determine or 
shall otherwise be disposed in accordance with the Government Auditing Code 
and other pertinent laws, rules and regulations. 
The liabilities, if any, that may have been incurred in connection with the 
discharge, of such functions shall likewise be treated in accordance with the 
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Government Auditing Code and other pertinent laws, rules and regulations. 
The personnel who may have performed such functions, whose positions 
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are not included or who may no longer be qualified in the new organization 
structure and staffing pattern shall be deemed separated from the service and 
shall be entitled to the benefits provided for in this Act and other pertinent laws. 
Section 76. New Sfructure and Pattern. - Upon approval of this Act, the 
offices and employees of the Department shall, in a hold-over capacity, continue 
to perform their respective duties and responsibilities and receive the 
corresponding salaries and benefits unless in the meantime, they are separated 
from the service from causes other than the implementation of the provisions of 
this Act. 
The new position structure and staffing pattern of the Department shall be 
approved and prescribed by the Secretary within one hundred twenty (120) days 
from the approval of this Act, and the authorized positions thereunder shall be 
filled with .regular appointments by him or by the President, as the case may be. 
Those incumbents whose positions are not included therein or those who are no 
longer qualified and re-appointed shall be deemed separated from the service 


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and shall be entitled to the benefits provided for in this Act and other pertinent 
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laws. 
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Section 77. Separation Benefifs. -- Career and civil service employees 
of the Department separated from the service not for cause but as a result of the 
rationalization effected pursuant to this Act, shall be entitled to appropriate 
separation pay and to retirement benefits accruing to them under the laws of 
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Section 78. 
Time Frame. - 
The Secretary 
shall complete the 
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implementation of this Act within six (6) months from the approval thereof and 
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shall, within two (2) months thereafter, submit to the President of the Philippines 
general application in force at the time of their separation. 
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the report of completion of this rationalization. 
Section 79. Submission of Report to Congress. -- Within four (4) 
months after the completion of the rationalization of the Department, the 
President shall submit to Congress a report on the result of the rationalization. 
Section 80. Appropriafions. -- Upon the effectivity of this Act, the 
rationalized councils, bureaus, agencies, and offices shall retain their present 
appropriations until a new budget of the rationalized Department shall have been 
completed and submitted to the Department of Budget and Management six (6) 
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20 
months after the effectivity of this Act. 
Section 81. Repealing Clause. -- All laws, decrees, executive issuance, 
21 
rules and regulations inconsistent with this Act are hereby repealed or modified 
22 
accordingly. 
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thereby. 
Section 82. Separability Clause. -- The provisions of this Act are hereby 
declared to be separable, and in the event one or more of such provisions are 
held unconstitutional, the validity of the other provisions shall not be affected 


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of general circulation. 
Section 83. Effectivity. -- This Act shall take effect thirty (30) days from 
the date of its publication in the Official Gazette or in at least two (2) newspapers 
Approved.