REPRESEN.
1S rege

Iz oafe

Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City, Metro Manila \

EIGHTEENTH CONGRESS
First Regular Session

HOUSE BILL NO. 2617

Introduced by: REP. ANTONIO T. ALBANO and
REP. RODOLFO B. ALBANO

EXPLANATORY NOTE

This bill seeks to unify, coordinate, fund, implement, and
strengthen all corn research and development (R&D) as well as
manpower training and extension of technologies on corn and corn-
based farming systems for the production of more food, feeds,
forage, industrial materials, and bioenergy purposes, including
those subsequent (or rotation) crops that are grown after rice in
rainfed farms and in dryland and marginal upland farms in the
country through the establishment of a national agency — the
Philippine Corn Research Institute or Philcorn.

To ensure the country’s food, feeds, forage, and bioenergy
security, it is imperative to develop a modern, highly productive,


efficient and competitive agriculture sector. A comprehensive
program to modernize and industrialize corn production is integral
to the realization of the vision for a modern, highly productive,
efficient and competitive agriculture sector. It would also
immensely contribute to improving and expanding employment and
livelihood opportunities and thus, reduce poverty and hunger,
particularly in the rural areas. Identifying target areas and
considering the vulnerable upland and dryland agro-ecosystems
where many of the resource-poor farmers, particularly the corn
farmers, grow their food and feed crops, including poultry and
livestock is imperative toward these ends.

Corn is the second most important national food crop next to
rice. It is the staple food of 20 percent (20%) of the Philippine
population. It is also the main component of up to 75% of
formulated feeds for livestock, poultry, and aquaculture fishery.
Corn is grown mainly in rainfed farms after rice is harvested, and
in upland and dryland farms, including steep hillsides, in over 2.5
million hectares, mostly in Mindanao, Cagayan Valley, Ilocos
Region, Central Luzon, Central Visayas, and Palawan.

The current national grain yield in various ecological regions
is still low, ranging from 0.5 to 2.5 tons per hectare in resource-
poor areas. That yields can be as high as 6 to 10 tons for hybrid
corn varieties in a few favorable farm environments encourage
confidence that there are bright prospects in further increasing

corn yields in other farm sites.

The country needs to improve the overall productivity to
achieve self-sufficiency, to stabilize food security and nutrition


among our rural population and to increase farm incomes.

The demand for both white corn as human food and yellow
corn as animal feeds and for industrial uses have been increasing
rapidly because of the high demand of our growing human
population, the expanding livestock and poultry industries, and the
rapid growth of the emerging industrial and bioenergy program (RA
9367, The Biofuels Act of 2006) designed to augment imports of
fossil-based fuel as energy source. Thus, targeting the export
markets over the medium- and long-term view is also a viable
prospect.

Low crop yields and household income of majority of corn
farmers in the rainfed, upland, and dryland farms are still far below
those obtained in experiment stations because of the following
factors and situations:

1. Limited access of farmers to and adoption of genetically
improved seeds;

2. Inadequate information and use of integrated nutrient and
pest management [isystems; [1

3. Slow adoption of crop rotation technologies; ©

4. Ineffective drought mitigation approaches; ©

5. Inadequate mechanization of field operations from land

preparation to harvesting (land drying, 0

6. Large portions of the corn-growing areas are hilly land with
highly variable soil fertility; and

7. Many farms are prone to drought due to erratic rainfall
pattern and therefore (irrigation facilities should be
installed)


Of the major crops other than rice that support the national
economy, corn and corn-based farming systems (including crops
planted after corn 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 0.30 percent, and sugarcane at 0.5 percent.

The Philippines has more than three million hectares of
upland and dryland areas inhabited by about five million
households, most of whom are very poor especially those in
Southern Mindanao, Central and Eastern Visayas, parts of
Western Luzon, Palawan, and the Bicol Region.

Recurrent droughts and typhoons, environmental degradation
due to short-duration and erratic rainfall, recurring El Nino and
climate change phenomenon, soil infertility and inaccessibility of
high quality crop seeds aggravate the low productivity and untold
hardships of poor corn farming communities.

The millions of degraded lands and infertile soils in the
upland and dryland areas without irrigation facilities, however,
comprise an untapped potential resource for the growing of
drought-tolerant corn and corn-based cropping systems such as,
for example, sorghum and grain legumes for food and feeds.
However, when properly managed, these crops will help ensure
household food security and sustainable farm productivity.

In the Philippines, there are well established research
institutes devoted to major crops and disciplines such
coconut, sugarcane, fiber and abaca, cotton, silkworm, tobacco,

rice,



root crops, biotechnology, plant breeding, crop protection, farming
systems, irrigation, carabao, dairy, fishery, hogs, farm
mechanization and post harvest, and other strategic commodities
and disciplines.

There is no similar research institute for corn and corn-
based farming systems that includes crops such as sorghum and
grain legumes that are important as food, feed, forage, and fuel.

It is imperative to establish the Philippine Corn Research
Institute (PhilCorn) now!

Globalization and climate change require that the country
continuously develops cutting-edge technology and agricultural
innovations that enable corn farmers to increase their income by
increasing the productivity and quality of their produce through
modern farm planting, harvesting, processing, and packaging
systems and techniques for both the domestic and global markets.

The proposed modern agricultural research and extension
institute for corn — The Philippine Corn Research Institute
(PhilCorn) is a strategically imperative step toward achieving these
ends because it is designed to :

i. Unify, coordinate, fund, implement, and strengthen all
national and farm-level efforts on Research &
Development, Extension (RDE) for corn and corn-based
farming systems for food, feeds, forage, and fuel; 0

2. 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. Ensure adequate and stable supply of quality corn
products for domestic and foreign markets, and

3. Improve the economic condition and income of farmers

in the upland and dryland regions of the country.
That our province, Isabela, is one of the major corn producing
provinces in the country, and the Isabela State University (ISU) is
the proposed primary site of the Institute further underscores the
paramount significance of this bill to our constituents and to the
advancement of our development efforts in the farming sector in

our province.

In view of the foregoing, and in order to improve farm
incomes, expand opportunities for employment and _ livelihood
particularly in the rural areas, and ensure national food sufficiency
and security, the immediate approval of this bill is imperative.

ee ewe

LODE

‘P. RODOLFO B. ALBANO


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Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City, Metro Manila

EIGHTEENTH CONGRESS
First Regular Session

2617
HOUSE BILL NO.

Introduced by REP. ANTONIO T. ALBANO and
REP. RODOLFO B. ALBANO

AN ACT ESTABLISHING
THE PHILIPPINE CORN RESEARCH INSTITUTE,
APPROPRIATING FUNDS THEREFOR
AND FOR OTHER PURPOSES

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 Corn Research Institute Act.

SECTION 2. Philippine Corn Research Institute. - The
Philippine Corn Research Institute, hereinafter referred to as
PhilCorn, is hereby established as a body corporate attached to the
Department of Agriculture (DA) in order to modernize the corn
industry and consequently, to expand livelihood opportunities and

increase the income of resource-poor corn farmers in the rainfed,


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upland, and dryland farming communities, and to equip with and
enable farmers to use and harness appropriate science and
technologies to effectively address problems of low yields and other
farm concerns brought about by droughts, floods, land
degradation, global warming, and other risks arising from
environmental and climate changes.

SEC. 3. Objectives - The objectives and goals of this Act are
as follows:

a) To develop and implement a dynamic, innovative, farmer-
centered and need-based national corn research and development,
technology sharing, training, and extension programs;

b) To strengthen and expand the national capabilities and
knowledge for corn research and extension, modernize production,
utilization and industrial processing of corn and corn-based crops,
diversify harvests through sequential crops to sustain soil health
and fertility and enhance long-term higher farm productivity and

income;

c) To improve and expand livelihood opportunities of
resource-poor and small-scale farmers who are growing corn after
rainfed rice as well as in upland and dryland farming ecosystems;

d) To work closely with regulatory agencies such as the BPI
(ie. National Seed Quality Control Laboratory, NSQCL; Quarantine
Division, and National Seed Industry Council, NSIC), Bureau of
Agriculture and Fisheries Standards (BAFS), and relevant private
stakeholders (ie. PhilMaize) and NGOs in the collection,
conservation, and utilization of endemic or traditional corn varieties


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as well as in the experimentation, planting, and monitoring of corn
hybrid and genetically engineered varieties;

e) To develop and implement sustainable and environment-
friendly corn and corn-based farming systems in the vulnerable
and marginal areas like sloping terrains and evaluate those areas
where crops other than corn may be more appropriate to grow;

f) To gather and provide up-to-date and reliable data to guide
policy makers with regard to, among others, corn improvement and
development, import and export volumes, and develop strong
linkages among stakeholders in promoting the national corn
industry;

g) 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, industrial products development,
processing, and marketing;

h) To initiate and undertake such other related programs in
partnership 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 (PCAARRD), State Colleges
and Universities (SCUs), and the private sector.

SEC. 4. Principal and Regional Offices. - The PhilCorn
shall have its principal office at the Isabela State University.


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It may also establish other offices, branches, satellite offices,
or subsidiaries in any geographically suitable region in the
Philippines that are major producers of corn and as may be
necessary or proper for the accomplishment of its purposes and
objectives.

SEC. 5. Duties and Functions. - The PhilCorn shall exercise
the following duties and functions:

a) Unify, plan, fund, conduct, monitor, and evaluate corn
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) corn engineering, farm mechanization, and
postharvest management;

(4) pest surveillance, early warning system, integrated
pest management, and biological control methods;

(5) socio-economics, impact assessment, and policy
advocacy;

(6) technology packaging and demonstration, promotion
and deployment, training and communication;


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(7) processing and _ industrial-chemical products

development; and

(8) corn- based farming systems, farm management
improvement, and experiment station development.

b) Unify, lead, fund, and coordinate a national network of
corn and corn-based farming systems research and extension
agencies, centers, and stations located in the different agro-
ecological regions of the country where corn is a major crop;

c) Develop technologies suitable for the rainfed, upland, and
dryland agro-ecosystems that will maximize the productivity and
quality of locally grown corn and corn-based crops while also
reducing production costs and ensuring long-term and sustainable
corn and corn-based production systems through genetic
improvement and environmental resources and conservation

measures;

d) Enhance income of corn farmers by developing suitable
corn-based(icrops and livestock farming systems as well as crop
rotations where applicable; value-adding corn technologies
including on-farm verification, processing, packaging, marketing,
and promotion of economically viable technologies as well as
entrepreneurial skills, giving emphasis on those aspects necessary
for group endeavors of small-scale farmers, cooperatives, and seed

growers;

e) Develop databases needed in the identification and
preparation of necessary policy recommendations towards efficient,
highly productivelland competitive corn industry and corn-based


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farming systems throughUappropriate socio-economic measures
and public-private sector mobilization and participation;

f) Organize and develop strong training and communication
programs forlicorn and corn-based farming systems scientists,
research managers, and extension specialists to enable them
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.

SEC. 6. Corporate Powers.- The PhilCorn 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 lawful contracts and
agreements of any kind or nature, and to sue and be sued in its
corporate name;

c) Obtain loans from all sources, whether local or foreign and
whether government or private, in accordance with existing laws

and regulations, to help finance its research programs and its


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capital and operating expenditures, or provide support to farmer

entrepreneurial activities;

d) Invest in, purchase or otherwise acquire, own, lease,
mortgage, pledge, sell, assign, convey, exchange, encumber,
borrow, or otherwise engage in lawful transactions involving real
and 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, in accordance with law and
regulations, from any person, government and private entitiy,
whether foreign or domestic, or from any 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.


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SEC. 7. Board of Trustees. The Board of Trustees,
hereinafter referred to as the Board, shall exercise all the corporate

functions and powers of the PhilCorn and shall control and

supervise all the activities, transactions and properties of the

Institute.

The Board shall be composed of the Secretary of Agriculture
or his designate as ex- officio Chairperson and ten (10) members

from the following agencies and sectors:

a)

b)

ro)

d)

e)

Executive Director of the Philippine Council for
Agriculture, Aquaculture, Forestry, and Natural
Resources Research and Development (PCAARRD) of
the Department of Science and Technology (DOST)
who will act as Co-Chairperson;

Director of the Bureau of Agricultural Research (BAR)
who will act as Vice-Chairperson;

Undersecretary of the Department of Budget and
Management (DBM);

Director of the Agriculture Division of the National
Economic and Development Authority (NEDA);

two (2) University Presidents from the State
Universities and Colleges (SUCs) representing major
corn producing and corn-based agriculture regions;
two (2) private sector representatives 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


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livestock/poultry industry; and
2) two (2) distinguished scientists from the public and

private sectors.

The credentials of private sector representatives shall be
evaluated and scrutinized by competent members of the Board.

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 private sector representatives
shall be for four (4) years without prejudice to a reappointment for
another four (4) 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 receive only per diems or every meeting
attended but not any fixed salary or compensation.

c) The Chairperson, Co-Chairperson, Vice-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 two
months or as often as the exigencies of the service demands. The
presence of the Chairperson, Co-Chairperson or Vice-Chairperson
and at least seven (7) members of the Board shall constitute a


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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.

SEC. 8. Powers and Functions of the Board. - The PhilCorn

Board shall exercise the following powers and functions:

a) Adopt its 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 operation and
management of the PhilCorn in accordance with its purposes and
objectives and in line with research planning and monitoring
policies and procedures of PCAARRD and BAR;

c) To approve the PhilCorn’s organizational structure and
staffing pattern, operation 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 support to staff as warranted by job
conditions, and other terms and conditions of service, including
promotion systems, medical insurance and retirement benefit
systems and such other lawful benefits for all officers and
employees of the PhilCorn, upon recommendation of the Executive
Director;


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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 committees and appoint the members thereof, as
may be necessary and proper for the effective management of the
PhilCorn and 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 or any competent
authority through the Board of Trustees.

SEC. 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 of the Trustees (BOT), based on the
findings and recommendations of a Search Committee duly

organized and commissioned by the Board for such purpose.

a) The Executive Director shall serve for a term of four (4)
years, subjectiito a one term extension of four (4) years for
meritorious performance, or a maximum total of eight (8) years
without further extension; Provided, however, That there shall be a
reserved plantilla position of the same salary rate for the outgoing
Executive Director, if he is previously a holder of a plantilla position
at PhilCorn and shall not yet be of retirement age at the end of his
term as Executive Director; Provided, further, That the Board of


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Trustees, through a Search Committee duly organized at least four
(4) months earlier, shall have chosen a new Executive Director who
shall immediately assume office during a turn-over ceremony on
the expiration date of the term of office of the outgoing Executive
Director; and Provided, finally, that no Officer-in-Charge shall be
designated as head of the Institute.

b) The Executive Director shall be assisted by two (2) Deputy
Executive Directors, Division Heads, and Branch Station Directors
orManagers as the Board may determine, to carry out the purposes
and objectives of the PhilCorn.

SEC. 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 establish a clear vision, map out the mission, provide
strategic direction, and undertake systematic supervision over the
planning and implementation of all research, development,
technology sharing programs, training and extension, upgrading of
scientists and staff of the Institute and, in general, administer and
direct the management and operation in a transparent and
accountable administration of the PhilCorn;

b) To enter into all contracts, incur obligations, acquire and
dispose of assets, and deliver documents on behalf of the PhilCorn
within the parameters of the authority delegated by the Board
through an appropriate Board Resolution, and upon prior approval
by the Chairman of the Board;


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

d) To arrange for the conduct of an External Program and
Management Review (EPMR) by a Panel of Experts every four (4)
years or as often as may be necessary in order to assess the
outputs and understand the impact of PhilCorn programs on corn
production and on the farmers and stakeholders of the corn
industry, and to provide guidance to management in charting
directions for future researches and programs of the institute; and

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

SEC. 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 Directors or Managers in pursuing
inter-agency activities and participation of the national RD&E
network.

The TAC shall be composed of not more than nine (9)
members designated by the Board from among the heads,
representatives, or scientists and experts of agencies, government
or private, that are actively involved in any critical aspect of corn
research, corn-based farming systems, seed quality certification,
training and extension, production and processing, marketing and
consumption, policy advocacy, and capacity building. TAC


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members may be assigned to assist specific programs, divisions, or
branch stations as the services may require in achieving the goals
of PhilCorn.

SEC. 12. Services of Other Government Personnel. - The
PhilCorn may, for the purpose of its research, development,
training, and extension activities, obtain and secure the services of
scholars and scientists as well as specialists in research, training,
extension, and communication of any unit, experiment station,
institute or center of the Department of Agriculture, University of
Southern Mindanao, Central Mindanao University, Visayan State
University, University of the Philippines Los Banos, Mariano
Marcos State University, Isabela State University, Central Luzon
State University, and other agencies and universities of the
national government and foreign institutions.

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.

SEC. 13. Buildings, Facilities, and Equipment. -The
PhilCorn is hereby authorized to own, acquire, borrow, lease, plan,
and construct or repair 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


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any cooperating SUC, the Department of Agriculture, and of the
national government that is engaged, directly or indirectly, in
activities that relate to agriculture, farming systems, corn
production or products development of the corn industry.

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 exempted 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.

The PhilCorn shall be authorized to expropriate lands for corn
and corn-based farming systems research and development
purposes provided that 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.

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,
training, extension and technology demonstration, and seed
production purposes shall be exempted from the coverage of the

Comprehensive Agrarian Reform Law.

SEC. 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


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Department of Agriculture the amount of Four Hundred Million
Pesos (P400M) as the initial fund of the PhilCorn for CY 2019 to be
used for its initial operations, including provisions for salary of
personnel, conduct of research and technology promotion,
construction of laboratories and other physical infrastructures,
purchase and development of experimental farms, and acquisition
and purchase of equipment for laboratories, farm development, and
offices. This initial amount shall be drawn from the DA National
Corn 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 (KBI) in the Annual General Appropriations
Act.

Furthermore, the PhilCorn Board of Trustees may seek and
receive financial support from foreign donors such as Japan
International Japan Agency (JICA), Korean International
Cooperation Agency (KOICA), Australian Agency for International
Development (AusAID), United States Agency for International
Development (USAID), and _ similar institutions for the
establishment and improvement of PhilCorn infrastructures,
laboratory facilities, field experiment station development, and
training and 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.


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SEC. 15. Use of Funds, Savings, Income and Grants. - 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.

SEC. 16. 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 standards of
merit and fitness for public officials and employees, preferably
those with postgraduate degrees, to be determined in accordance
with such policies and guidelines as may be approved by the
Board.

SEC. 17. Auditor. - The Chairperson of the Commission on
Audit (COA) shall be the Ex- Officio Auditor of the PhilCorn. For this
purpose, he may appoint a representative who shall be the auditor
of the PhilCorn, together with the necessary personnel to assist the
COA representative in the performance of his duties.

SEC. 18. Legal Counsel. - The Government Corporate
Counsel shall be the Legal Counsel of the PhilCorn; Provided,
however, That the PhilCorn may establish its own legal unit,
subject to the supervision and control of the Government Corporate
Counsel, to handle the day-to-day legal matters affecting the affairs
of the PhilCorn.

SEC. 19. Annual Report. - The Board shall submit to the
President of the Philippines through the Secretary of Agriculture an


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annual report, together with the audit report on the relevant
accounts, generally dealing with the activities and operations of the
PhilCorn.

SEC. 20. Separability Clause. - The provisions of this Act
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.

Sec. 21. Effectivity. - This Act shall take effect within fifteen
(15) days from its publication in the Official Gazetter or in any
national newspaper of general circulation.

Approved,