FOURTEENTH CONGRESS OF THE ) 
REPUBLIC OF THE PHILIPPINES 
) 
First Regular Session 
Introduced by Senator Loren Legarda 
EXPLANATORY NOTE 
This bill seeks to create the Philippine Rubber Research Institute (PRRI) to 
initiate and administer research and development programs that will improve the 
quality and increase productivity of rubber, especially for the benefit of smaII-holder 
rubber producers and processors. 
In 1905, rubber tree seedlings were introduced in the country, almost at: the same 
time when Indonesia and Malaysia started their own rubber industries. According to 
the International Rubber Study Group, these countries are now among the leading 
rubber producers and exporters, togethe; with Thailand and India. Data from the 
Department of Agriculture (DA) suggests that there is great demand for rubber, as 
world consumption of rubber has been increasing. World production of natmal rubber 
is projected to increase at 3-5% per year up to 2020, that is from 6.6 million tons in 2006 
to 17.4 million tons in 2010 to 28.1 million in 2020. 
The Philjppines, howevcr, is lagging behind its Asian neighbors in the 
production an:! exportation of rubber. The country’s rubber industry accounted for only 
1.05 % of the world consumption of rubber in 2004, according to the DA. The slow 
progress of the rubber industry is attributed to the low quality of rubber products, lack 
of planting materials for expansion and lack of investments for the establishment of bud 
wood garden and nurseries. 
This proposed measure aims to increase rubber productivity and further develop 
and expand the Philippine rubber industry by creating the Philippine Rubber Research 
Institute, which shall propagate and promote the planting, maintenance and utilization 
of rubber trees. This proposed measure likewise seeks to provide access to quality 
rubber tree seedlings, modern production techniques, and other support: services, 
undertake training and other capacity-building programs for stakeholders in the rubber 
industry. This bill also supports the establishment of village-based rubber enterprises 
by providing them access to resources, technological know-how, research and 
development projects. 
In view of the foregoing, the passage of this bill is earnestly sought. 
- 
3 
-..- 
> 
<- 
LOREN LEGARDA 
Senator 


FOURTEENTH CONGRESS OF THE ) 
REPUBLIC OF THE PHILIPPINES 
) 
First Regular Session 
Introduced by Senator Loren Legarda 
AN ACT 
CREATING THE PHILIPPINE RUBBER RESEARCH INSTITUTE TO DEVELOP 
THE PHILIPPINE RUBBER INDUSTRY AND FOR OTHER PURPOSES 
Be it enacted by the Senate and House of Representatives of the Philippine Congress 
assembled: 
Section 1. Title. - This .Act shall be known as the "Philippine Rubber Research 
lnstitute Act of2007." 
Section 2. Declaration of Policy. - It'is a declared policy of the State to develop 
self-reliant industries effectively controlled by Filipinos, encourage investments and 
provide incentives to private enterprise, promote employment and livelihood 
opportunities for the poor, ensure well-balanced ecology in the use of natural resources 
for industrial purposes, and, prioritize education and training particularly in science 
and technology for sustainable development. 
In supyurt of these State policies, the establishment of the Philippine Rubber 
Research Institute aims to comprehensively realize the goals of human empiwerment 
and economic development in the countryside through programs and project4 that will 
increase rubber production in the country, and improve quality of life especially in poor 
rural communities that depend primarily on this industry. 
Section. 3. Definition of Terms. - As used in this Act, the following term are 
defined as follows: 
(a) "Philippine Rubber Research Institute" refers to the main institute fpr rubber 
at the Mindanao State University (MSU) to be based in 'the Municipality of 
Naga, Province of Zamboanga sibugay and its satellite units as may be 
subsequently established whose mandate is to initiate and administer 
research and development programs to improve quality and increase 
productivity of rubber especially for the benefit of small-holder rubber 
producers and processors; 
(b) "Rubber Tree" refers to the robust, perennial crop and the source of natural 
rubber also scientifically known as Hevea brasilienses; 


(c) “latex” refers to a milky usually white fluid that is produced by cells,of rubber 
trees, and is the raw material used in the manufacture of industrial, 
automotive, and other latex products; 
(d) “Small-holder rubber producers” refer to individuals, cooperatives, or 
corporations owning and/or cultivating five (5) hectares or less of rubber 
plantation; 
(e) “Small-holder rubber processors” refer to individuals, cooperatives, or 
corporations, which maintain and/or bperate small-scale processing plants of 
finished or semi-finished rubber products, capable of processing not more 
than fifty (50) metric tons of rubber annually; 
(f) “Rubber cooperatives” refer to duly organized and registered enterprises 
collectively owned and operated by groups of rubber producerb and/ or 
processors who partake of and share among themselves the benefits and 
profits of their economic ventures. 
(g) ”Big-holder rubber producers’’, refer to individuals, cooperdtives, or 
corporations owning and/ or cultivating more than five (5) hectares .of rubber 
plantation; 
(h) “Big-holder rubber processors’: refer to individuals, cooperatives, or 
corporations which maintain and/or operate large-scale processing plants of 
finished or semi-finished rubber products, capable of processing &tore than 
fifty (50) metric tons of rubber annually. 
Sec. 4. Creation of the Philippine Rubber Research Institute. - There is hereby 
created the Philippine Rubber Research Institute, hereinafter referred to as the PRRI, 
which shall be under the control and supervision of the Department of Agriculture. 
Sec. 5. Powers and Functions of the PRRI. - The PRRI shall have the following 
powers and functions: 
(a) Propagate and promote the planting, maintenance, as well as wise utilization 
of rubber trees as source of latex and finished rubber products; 
(b) Enable rubber producers and processors, especially small-holders, to have 
access to quality rubber tree seedlings, modern production techniques, and 
other support services from production to marketing of rubber produce; 
(c) Undertake training and capacity-building programs for rubber producers, 
processors, and cooperatives in order to increase production of quality rubber 
and raise level of income especially of poor small-holders; 
(d) Aid in the establishment of village-based rubber enterprises to generate 
livelihood opportunities and improve general well-being of the large 
percentage of workforce in agriculhiral communities; 
(e) Promote cooperative development among small-holders and provide them 
access to resources, technological know-how, as well as decision-making 
processes for the enhancement of their rubber enterprises and the protection 
of their welfare; 


(f) Initiate research and development projects on rubberin order to address 
technology and policy gaps in promoting robust rubber industry, ensuring 
standard in production, and meeting demands for quality rubber in both 
domestic and international trade; 
(g)Enter into memoranda of agreement and receive grants from local and 
foreign funding agencies through the Department of Agriculture upon the 
recommendation of the PRRI Advisory Board; or through the respective 
academic boards of satellite6 units housed in concerned State Universities 
and Colleges upon the recommendation of the PRRI Advisory Board. 
Sec. 6. Executive Director of PRRI. The Institute shall be headed by an Executive 
Director who shall be responsible for the planning, implementation and supervision of 
the program and activities of the Institute. He shall be appointed by the President of 
the Philippines for a term of three years, upon recommendation of the Depapment of 
Agriculture. All other officers and employees shall be appointed by the Director of the 
Instihte, in accordance with the Civil Service Law 
The Executive Director must possess high degree of educational, techhical, and 
managerial competencies in research and development, as well as of intepity and 
proven probity in public service. 
Sec. 7. Functions of the PRRI Executive Director. - The following are the'functions 
and powers of the Executive Director of PRRI: 
Recommend the creation of divisions and sections including the staffing 
pattern of the PRRI; 
Rxommend to Agriculture Secretary the appointments of personnel and 
consultants; 
Oversee the planning, implementation, and evaluation of the policies, 
programs and projects of the PRRI; 
Consolidate and approve the overall budget of PRRI; and, 
Perform such other functions as may be assigned by the PRRI Advisory 
Board. 
Sec. 8. Appointments of Division Chiefs and Unit Heads of PRRI. - Division 
Chiefs, Unit Heads, Coordinators, Project leaders, and other positions in PRRI shall be 
recommended by the Executive Director, and appointed by the Secretary of the 
Department of Agriculture. Appointments to various positions in PRRI are subject to 
corresponding qualification standards established by PRRI, and to rules and regulations 
set by the Civil Service Commission. 
Sec. 9. Composition of the PRRI Advisory Board. - There is hereby created an 
Advisory Board which is mandated to develop policies and programs aimed at 
improving the state of technologies needed for the Philippine rubber industry in order 
to meet global standards for competitiveness and product quality. 


The Advisory Board shall be composed of the following: 
a. Secretary of the Department of Agriculture or his representative, as shairman; 
b. Undersecretary of Department or',Agriculture, as vice-chairman; 
c. Executive Director of the Bureau of Agricultural Research; 
d. Executive Director of the Bureau of Plant Industry; 
e. Executive Director of the Philippine Rubber Research Institute; 
f. One representative from the rubber producers, and one representative from 
rubber processors, as members, to be appointed by the Presidept of the 
Philippines, upon recommendation of the Department of Agriculture, for a 
term of three years. 
Sec. 10. Functions and Powers of the PRRI Advisory Council. - The Advisory 
Board shall perform the following duties and functions: 
a. Formulate policies and initiate programs for the developme& of the 
Philippine rubber industry; 
b. Review and recommend the annual budget of the Institute; 
c. Evaluate the implementation, efficiency and effectiveness of the programs 
and projects of the Institute; and 
d. Recommend the establishment or abolition of satellite units or branches as 
may be deemed necessary. 
Sec. 11. Coordination among Stakeholders of PRRI and Linkages with Other 
Research Institutions. - The Institute shall monitor and evaluate the rubbeli research 
programs and identify the immediate needs and essential concerns in the rubber 
industry in 'consonance with the local and national economic development; It shall 
likewise coordinate with other government agencies' in order to formulate strategies 
that would jump-start the growth of the rubber industry. 
The Institute and the local government units where there are suitable areas for 
the planting of rubber trees shall jointly implement projects and programs necessary to 
achieve the goals of this Act. 
Sec.12. Allocation of Funds. - Not more than forty percent (40%) of funds 
allocated under this Act and in subsequent annual appropriations shall be used for 
personnel services, and maintenance and operating expenses; thirty-five percent (35%) 
for research and development as well as training and information; twenty-five percent 
(25%) for seedling propagation and dispersal of rubber trees. 
Sec. 13. Annual Report. - The PRRI submit an annual report to the Office of the 
President, the Senate, and the House of 'Representatives indicating among ofhers, the 
administration and institutional development of PRRI, and the progress of pograms 
and projects on rubber industry and its stakeholders. 


Sec., 14. Appropriation. - The amount necessary to carry out the provisions of 
this Act shall be included in the General Appropriations Act of the year foIlawing its 
enactment into law and thereafter. 
Sec. 15. Separability Clause. - If any part, section, or provision of this Act shall be 
held invalid or unconstitutional, the rest of the provisions shall not be affected thereby. 
Sec. 16. Repealing Clause. - All laws, executive orders, rules and regulations, or 
parts thereof which are inconsistent with this Act are hereby repealed or modified 
accordingly. 
Sec. 17. Effectivity. -This Act shall take effect fifteen (15) days from the date of its 
publication in the Official Gazette or in at least two (2) newspapers of general 
circulation. 
Approved,