Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

BS

EPS
RECEIVED %

18TH CONGRESS
First Regular Session

HOUSE BILL No. _}335

Introduced by Representative Michael L. Romero

EXPLANATORY NOTE

This bill seeks to establish the Philippine Corn and other Cereals
Research Institute (PhilCorn) that will unify, coordinate, fund, and
strengthen all research and development (R&D) as well as training and
technology sharing activities on corn and related crops for food, feeds,
industrial and biofuel purposes.

Corn is the second most important national food crop next to rice
and it also serves as the staple food of 20 percent of the Philippine
population. Furthermore, it is the main component of up to 75% of
formulated feeds for livestock, poultry, and aquaculture fishery. Corn is
grown mainly in rain fed farms after rice is harvested, and in upland and
dryland farms of over 2.5 million hectares, mostly in Mindanao, Cagayan
Valley, Ilocos Region, Central Luzon, and Western Visayas. The current
national grain yield in various ecological regions is still low, ranging from
0.5 to 2.5 tons in resource-poor areas although yield can be as high as 10
tons per hectare in few favorable farm environments. Consequently, the
country needs to improve overall productivity among farmers to achieve
self-sufficiency, secure food security, and target the export market over
the medium-and long-term view.

Of the major crops other than rice that support the national
economy, corn (and related cereals) as well as rotation crops such as grain
legumes are the most neglected in research support with an allocation of
less than 0.05 percent of the gross value added (GVA) compared to rice at
0.25 percent, coconut at 0.3 percent, and sugar at 0.5 percant.


In the Philippines, there are well established research institutes
devoted to rice, coconut, sugarcane, fiber and abaca, silkworm, cotton,
tobacco, root crops, biotechnology, plant breeding, crop protection,
farming systems, carabao, dairy, fishery, hogs, and other strategic
commodities and disciplines but unfortunately there is none devoted to
crops such as corn and other related cereals such as sorghum, grain
legumes.

Globalization and climate change require ‘that the country must
enhance its capability to continuously develop cutting-edge technology
and agricultural innovations that will enable corn and dryland farmers to
become prosperous by increasing their productivity and quality of their
produce through modern processing and packaging techniques for the
domestic and global markets,

From these observations, it is clear that there is an urgent need to
establish a proactive, modern agricultural research and extension institute
that is designed and committed: (1) to unify, coordinate, fund, and
strengthen all national and farm-level efforts on corn and other cereals,
suitable rotational crops such as grain legumes, biofuel crops that are also
used for food and feeds; (2) to hasten technology sharing activities that will
improve the livelihood of resource-poor farming communities and
empower them to cope up with low yields owing to frequent occurrences of
drought, warming temperatures, land degradation, and other risks arising
from environmental calamities and climate changes; (3) to insure adequate
and stable supply of quality products, and (4) to improve the economic
condition and income of farmers in the upland and dryland regions of the
country,

Approval of this biffis highly and earnestly recommended.

‘L L. ROMERO Ph.D.


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

18TH CONGRESS
First Regular Session

HOUSE BILL No, __1335

Introduced by Representative Michael L. Romero

AN ACT

ESTABLISHING THE PHILIPPINE CORN AND OTHER
CEREALS RESEARCH INSTITUTE AND
APPROPRIATING FUNDS THEREOF

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

SECTION 1. SHORT TITLE. This Act shall be known as the "Philippine
Com and other Cereals Research Institute Act"

SECTION 2. PHILIPPINE CORN AND OTHER CEREALS RESEARCH
INSTITUTE. The Philippine Corn and other Cereals Research Institute,
hereinafter referred to as PhilCorn, is hereby established as a body

corporate attached to the Department of Agriculture.

SECTION 3. OBJECTIVES. The objectives of this Act are as follows:

a) To develop and implement a strong, dynamic, and innovative
farmer-centered, needs-based national corn and other cereals
research and development, technology sharing, training and


extension programs;

b) To strengthen the national capacity for research and extension
in upland and dryland agriculture and modernize production,
utilization, and industrial processing of corn and related cereals
such as sorghum and pearl millets, and promoting rotational
cropping with legumes and other commodities for higher productivity
and income as well as to sustain soil health and fertility;

c) To improve the livelihood and economic conditions of small-
scale and resource-poor farmers;

d) To expand employment opportunities through corn and corn-
based farming systems in the rural areas, and ultimately promote
the general welfare of the people through higher efficiency and
profitability in production and industrial products processing,
development, and marketing;

e) To develop such other related programs in partnership and in
consultation with the DA-Bureau of Agricultural Research (DA-BAR),
the DA regional research centers (DA-RIARCs), the Philippine
Council for Agriculture, Aquatic Resources, Forestry, and Natural
Resources Research and Development (PCARRD), State Colleges and
Universities (SCUs), and the private sector.

SECTION 4. PRINCIPAL AND REGIONAL OFFICES. The PhilCorn

shall have its principal office at any suitable site as the Board of Trustees

may decide. It may also establish other offices, branches, satellite stations,

or subsidiaries in any geographically suitable region in the Philippines that

are major producers of corn and/or as may be necessary or proper for the

accomplishment of its purposes and objectives.

SECTION 5. DUTIES AND FUNCTIONS. The PhilCorn shall exercise

the following duties and functions:

a) Lead and coordinate a national network of corn and related


upland and dry-land based farming systems research and
extension agencies, centers, and stations located in the different
agro-ecological regions of the country where corn is one of the
major crops;

b) Plan, fund, conduct, monitor, and evaluate research,
development, and technology promotion in different scientific and
technological fields and programs, including but not limited to the
following: (1) germplasm collection, conservation, breeding, and
biotechnology; (2) natural resources management, watershed
conservation, drought adaptation and mitigation; (3) pest
surveillance, early warning system, and integrated pest
management; (4) socio-economics, impact assessment, and policy
advocacy; (5) technology demonstration, promotion and deployment,
training and communication, and products development, processing
and packaging: and (6) experiment station and farm management
improvement;

c) Develop technologies suitable for the upland and dryland agro-
ecosystems which will maximize the productivity and quality of
locally grown corn and related cereals as well as grain legumes and
suitable bioenergy crops while also reducing production costs and
ensuring a long-term and sustainable corn and dryland-based
production systems through genetic improvement and
environmental resources and conservation measures;

d) Enhance corn farmers’ income by developing suitable dryland-
based crops and livestock farming systems, and crop rotation where
applicable and value-adding corn technologies, including on-farm
verification, processing, packaging, marketing, and promotion of
economically viable technologies, giving emphasis on those aspects
necessary for group endeavor of small-scale farmers, cooperatives,
and seed growers;

¢) Develop databases needed in the identification and preparation
of necessary policy recommendations towards an efficient, highly
productive, and competitive corn and other cereal industry and
dryland-based farming systems through appropriate socio-economic
measures and public-private sector mobilization and participation;

f) Organize and develop strong training and communication
programs for corn and dryland-based farming systems scientists,
research managers, and extension specialists to enable them to
undertake effective and timely technology promotion of packaged
technologies among clusters of farmers and corporate growers by
utilizing modern extension systems such as information, education,


and communication (IEC) technology and participatory social
mobilization procedures;

g) Publish and disseminate research and extension findings and
recommendations through scientific journals, books, technical and
extension bulletins, videos, and other print and communication
channels.

SECTION 6. CORPORATE POWERS. The Phil Corn shall exercise the
following corporate powers:

a) Exercise all the powers of a corporation under the general
corporation law, in so far as such powers are not inconsistent with
the provisions of this Act;

b) Enter into, make and execute contracts and agreements of any
kind or nature, and to sue and be sued in its corporate name;

c) Borrow funds and obtain loans from all sources, whether local
or foreign and whether government or private, to help finance its
research programs and its capital and operating expenditures;

d) Invest in, purchase or otherwise acquire, own, lease, mortgage,
pledge, sell, assign, convey, exchange, encumber, borrow, or
otherwise deal in real and/or personal properties of whatever kind
and nature, or any interest therein, including shares of stock,
bonds, notes, securities, and other evidences of indebtedness of
natural or juridical persons, whether domestic or foreign and
whether government or private;

e) Receive and acquire from any person, government and private
entities, whether foreign or domestic, or from any person,
corporation, partnership, association or other entity such
characters, licenses, franchises, rights, privileges, concessions,
assistance, grants, donations, loans, and contributions consisting
of such properties, real or personal, including funds and valuable
effects, as may be useful, necessary or proper to finance its research,
capital and operating expenditures or otherwise carry out its
purposes and objectives, and to administer the same in accordance
with the terms and agreement consistent with its purposes and


objectives; and

f) Acquire from the government, whether national or local or from
any person, corporation, partnership, association or other entity,
such characters, franchises, rights, privileges, assistance, financial
or otherwise and concessions as may be conducive to and necessary
or proper for the attainment of the purposes and objectives of
PhilCorn.

SECTION 7. BOARD OF TRUSTEES, The corporate functions and
powers of the PhilCorn shall be exercised, and all its businesses, activities,
and properties shall be controlled, by a Board of Trustees, hereinafter
referred to as the Board,

a) The Board shall be composed of the Secretary of Agriculture or
his designate as ex-officio Chairperson and fourteen (14) members
from the following agencies and sectors: Director of the Bureau of
Agricultural Research (BAR) who will act as Vice-Chairman; Regional
Executive Director representing the DA Regional Field Units (DA-
RFU): Director of the Philippine Council for Agriculture, Aquaculture,
Forestry, and Natural Resources Research and Development
(PCAARRD) of the Department of Science and Technology (DOST):
Undersecretary of the Department of Budget and Management
(DBM); Director of the Agriculture Division of the National Economic
and Development Authority (NEDA), three (3) University Presidents
from the State Universities and Colleges (SUCs) representing major
corn producing and dryland-based agriculture regions: four (4)
private sector representatives, namely: one each from among the
national outstanding corn farmers, farmers’ organizations or
federations (Philippine Maize Federations, Inc,), private companies
engaged in corn research and seed production, and the
livestock/poultry industry: and two (2) distinguished scientists from
the public and private sectors,

b) The term of office of the members of the Board who are heads
or officials from their respective agencies or institutions shall be co-
terminus with their respective appointments; Provided, however,
That the term of office of the Regional Executive Director who
represents the DA-RFU where corn is a major crop and the four (4)
sector representatives shall be for five years without prejudice to a
reappointment for another five years based on merits and excellent
performance in the Board. The PhilCorn Executive Director shall


serve as Secretary of the Board. All government officials in the Board
shall serve as ex-officio members and shall not receive any salary or
compensation.

c) The Chairperson and members of the Board shall receive per
diem, as the Board may determine, for each Board meeting actually
attended; Provided, however, That such members shall also be
entitled to reimbursable transportation and representation
allowances in going to and coming from board meetings and in
transacting official business for the Institute.

d) The Board shall meet regularly, at least once (1) every quarter
or as often as the exigencies of the service demand. The presence of
the Chair or the Vice-Chair and at least seven (7) members of the
Board shall constitute a quorum and the majority vote of the
members present, there being a quorum, shall be necessary for the
adoption of any resolution, rule, regulation, decision or any other act
of the Board.

SECTION 8. POWERS AND FUNCTIONS OF THE BOARD. The Board
shall exercise the following powers and functions:

a) To adopt by-laws and promulgate policies, rules, regulations,
and procedures for the efficient and effective operations of the
Institute;

b) To define and guide in the formulation of the vision, mission,
strategy, and research-extension priorities, general plans and
programs, and guidelines for the proper operations and management
of the Institute in accordance with its purposes and objectives and
in line with BAR research planning and monitoring procedures;

c) To approve the PhilCorn's organizational structure and staffing
pattern, operating and capital expenditures, and financial budget
prepared in accordance with its corporate plans;

d) To approve the plantilla and salary ranges, benefits, privileges,
bonuses, scholarship and manpower development, housing facilities,
and other terms and conditions of service, including promotion
systems similar to those in the SUCs and DOST as well as life and


medical insurances and retirement schemes or benefits for all
officers and employees of the Institute, upon recommendation of the
Executive Director;

e) To appoint, promote, transfer, suspend, remove or otherwise
discipline any subordinate officer or employee of the Institute, upon
recommendation of the Executive Director;

f) To create such committee or committees and appoint the
members thereof, as may be necessary and proper for the
management of the Institute or for the attainment of its purposes
and objectives; and

g) To exercise such other powers and functions and perform such
other acts as may be necessary or proper for the attainment of the
purposes and objectives of the PhilCorn, or as may be delegated by
the Secretary of Agriculture.

SECTION 9. EXECUTIVE DIRECTOR AND OTHER OFFICERS. The
PhilCorn shall be headed by an Executive Director who shall be appointed
by the President of the Philippines, upon recommendation of the Board,
based on the findings of a Search Committee duly organized and

commissioned for such purpose;

a) The Executive Director shall serve for a term of five (5) years
subject to one term extension of five (5) years for very meritorious
performance, or a maximum total of ten (10) years without further
extension for any reason whatsoever.

b) The Executive Director shall be assisted by such Deputy
Executive Directors, Division Heads, Program Directors, and Branch
Station Managers as the Board may determine to carry out the
purposes and objectives of the Institute.

SECTION 10. POWERS, FUNCTIONS, AND DUTIES OF THE
EXECUTIVE DIRECTOR. The Executive Director shall be directly


responsible to the Board, and shall have the following powers, functions,

and duties:

a) To exercise dynamic leadership, create a vision, map out the
mission, provide strategic direction, and undertake systematic
supervision over the planning and implementation of all research for
development, technology sharing programs, training and extension,
upgrading of scientists and staff of the Institute and, in general,
administer and direct the management, operation, and transparent,
corrupt free administration of the PhilCorn;

b) To execute all contracts, incur obligations, acquire and dispose
of assets, and deliver documents on behalf of the PhilCorn within the
framework of the authority delegated by the Board;

c) To implement and enforce policies, decisions, orders, rules, and
regulations that are promulgated or adopted by the Board: and

4) To exercise such other powers and functions and performs such
other duties as may be authorized, assigned, or delegated by the
Board,

SECTION 11. TECHNICAL ADVISORY COMMITTEE. A Technical
Advisory Committee (TAC), organized and approved by the Board, shall
assist the Executive Director, Division heads, Program Directors, and
Branch Station Managers in pursuing interagency activities and

participation of the national R&DE network.

The TAC shall be composed of not more than nine (9) members, or as
the Board may designate, who are heads, representatives, or experts of
agencies, government or private, that are actively involved in any critical
aspect of corn research, dryland-based farming systems, seed quality
certification, training and extension, production and_ processing,
marketing and consumption, policy advocacy, and capacity building. TAC
members may be assigned to assist specific programs, divisions, or branch
stations as the services may require to achieve the goals and objectives of
Phil Corn.


SECTION 12. SERVICES OF GOVERNMENT PERSONNEL. The
PhilCorn may, for the purpose of its research, development, training, and
extension activities, obtain and secure the services of scholars, scientists,
technical, extension, and communication personnel of any unit,
experiment stations, institutes, and centers of the Department of
Agriculture, University of Southern Mindanao, University of the
Philippines Los Banos, Central Mindanao University, Mariano Marcos
State University, Isabela State University, and other agencies and

universities of the national government.

Those personnel of national and international reputations, from public
or private institutions, shall be designated as visiting scientists and
research fellows for a term of one year to five years to assist in conducting
major research problems of strategic importance and consequences in
pursuing the goals and objectives of the Institute. The selected personnel
may be paid such honoraria or incentives acceptable to all concerned and
as may be fixed and authorized by the Board,

SECTION 13. BUILDINGS, FACILITIES, AND EQUIPMENT. The
PhilCorn is hereby authorized to own, acquire, borrow, lease, plan, and
construct buildings, laboratories, experimental farms, and other facilities

as may be necessary or proper to attain its purposes and objectives.

It may also utilize facilities of any unit of any cooperating SUCs, the
Department of Agriculture, and of the national government engaged,
directly or indirectly, in activities that relate to agriculture, rain fed based

farming system, com production or development of the corn industry.

a) The PhilCorn is further authorized to purchase equipment,
materials and articles, either locally or abroad, as may be necessary


or proper to carry out its powers and functions and attain its
purposes and objectives. It shall be exempt from the payment of any
and all forms of taxes, duties, fees and charges on any and all such
importation of equipment, materials, articles, and services;
Provided, however, That the same are not available locally on
favorable terms.

b) The PhilCorn shall be authorized to expropriate lands for corn
and dryland-based farming systems research and development
purposes provided just compensation is paid to the owners of the
land. If the land belongs to the government or is inalienable, the
Institute is granted automatic title to the land.

c) Likewise, all lands, farms, plantations, whether directly or
indirectly owned, used, utilized or administered by the PhilCorn and
those that it may hereinafter acquire or utilize for research and
development purposes shall be exempted from the coverage of the
Comprehensive Agrarian Reform Law.

SECTION 14. APPROPRIATION. The Secretary of Agriculture and the
Secretary of Budget and Management are hereby authorized and directed
to set aside out of the existing funds of the Department of Agriculture the
amount of Four Hundred Million Pesos (P400M) as the initial fund to be
used for its initial operations, including provisions for salary of personnel,
conduct of research and technology promotion, construction of physical
infrastructures, and purchase of equipment.

This initial amount shall be drawn from the DA National Con Program,
BAR appropriations for research, RP-Japan Fertilizer Grant (KR-2), Public
Law PL 480 (PL480), and/or any other existing bilateral funding sources
in the Department of Agriculture. Thereafter, the government contribution
to the Institute's operations shall be provided for under its own Key
Budgetary Inclusion (K81) in the Annual General Appropriations Act.

Furthermore, the Board shall seek financial support from foreign


donors such as JICA, KOICA, AusAid, USAID, and similar institutions for
the establishment and improvement of PhilCorn infrastructures,
laboratory facilities, field experiment station development, and

training/scholarship of qualified personnel.

The annual appropriations herein provided shall be subject to the fiscal
control and management procedures provided for in Executive Order 714
of 1981. All funds, savings, grants, and income of the PhilCorn shall
constitute a revolving fund, to be managed as trust fund, and shall be

considered part of the funds automatically released to the PhilCorn.

‘ SECTION 15. APPLICABILITY OF CIVIL SERVICE LAWS. The
PhilCorn and its officers and employees shall be subject to the Civil Service

Law, rules and regulations;

Provided, however, That all technical personnel shall be selected on the
basis of the highest possible standards of merit and fitness for public
officials and employees, to be determined in accordance with such policies
and guidelines as may be approved by the Board.

SECTION 16. ANNUAL REPORT. The Board shall submit to the
President of the Philippines through the Secretary of Agriculture an annual
report, together with the audit report on the relevant accounts, generally

dealing with the activities and operations of the PhilCorn.

SECTION 17. SEPARABILITY CLAUSE. The provisions of this
Executive Order are hereby declared separable. If any portion hereof shall
be held invalid or unconstitutional, such invalidity or unconstitutionality

shall not affect the other provisions, which shall remain in full force and


effect in their entirety.

SECTION 18. EFFECTIVITY CLAUSE. 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,