FIFTEENTH CONGRESS )
REPUBLIC OF THE PHILIPPINES )
FIRST REGULAR SESSION )

HOUSE OF REPRESENTATIVES

Introduced by Representative Rufus B. Rodriguez and
Representative Maximo B. Rodriguez, Jr.

2949

House Bill No.,

EXPLANATORY NOTE

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.

World production of natural 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 Philippines, however, is lagging behind its Asian neighbors in the
production and 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 bill seeks to create the Philippine Rubber Research Institute (PRR!)
to initiate and administer research and development programs that will improve
the quality and increase productivity of rubber, especially for the benefit of
small-holder rubber producers and processors.

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



FIFTEENTH CONGRESS es
REPUBLIC OF THE PHILIPPINES -
FIRST REGULAR SESSION )

HOUSE OF REPRESENTATIVES

Introduced by Representative Rufus B. Rodriguez and
Representative Maximo B. Rodriguez, Jr.

House Bill No._ 2940

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
Philippines in Congress assembled:

Section 1. Title. - This .Act shall be known as the “Philippine Rubber
Research Institute Act of 2010."

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 support of these State policies, the establishment of the Philippine
Rubber Research Institute aims to comprehensively realize the goals of human
empowerment and economic development in the countryside through programs
and projects 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
terms are defined as follows:

(a) “Philippine Rubber Research Institute" refers to the main institute for
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
Tubber 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;

(0) ‘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 operate 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 producers
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, cooperatives, 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 fo quality rubber tree seedlings, modern production techniques,
and other support services from production to marketing of rubber produce;

(©) 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 agricultural 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 rubber in 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 intemational 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 PRR! 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 Department of Agriculture. All other officers
and employees shall be appointed by the Director of the Institute, in
accordance with the Civil Service Law. The Executive Director must possess
high degree of educational, technical, and managerial competencies. in
research and development, as well as of integrity 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:

a.) Recommend the creation of divisions and sections including the
staffing pattern of the PRRI;

b.) Recommend to Agriculture Secretary the appointments of personnel
and consultants;

c.) Oversee the planning, implementation, and evaluation of the policies,
programs and projects of the PRRI;

d.) Consolidate and approve the overall budget of PRRI; and,

e.) 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
chairman;

b. Undersecretary of Department of 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 President 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 development 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 rubber 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 PRR! submit an annual report to the
Office of the President, the Senate, and the House of Representatives
indicating among others, the administration and institutional development of
PRRI, and the progress of programs 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 following its enactment into law and thereafter.

Sec. 15. Separability Clause. - \f 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,