REPUBLIC OF THE PHILIPPINES
HOUSE OF REPRESENTATIVES
Quezon City

SIXTEENTH CONGRESS
First Regular Session

House Bill No. __ 946

Introduced by MAGDALO Party List Representatives Gary C. Alejano
andFranciscoAshley L. Acedillo

EXPLANATORY NOTE

Of recent, coffee production has become a booming industry in the country. With the
introduction in the market of Starbucks, Scattle’s Best, and other high-end cafe, the demand for
the excellent varieties of coffee has reached unparalleled height. Even the country’s pride,
Figaro, has set standards of global competitiveness by opening satellite stores in Hongkong and
in Southeast Asia.

True enough, the demand for coffee has outpaced harvests and production. The Makati Business
Club (MBC) cited that local demand had already perked up to 55,000 tons while production
stood at only 35,000 tons. Areas planted to coffee declined from about 100,000 hectares in 1986
to only 78,000 hectares at present.

In the province of Cavite, a new festivity called “Pahimis” is being touting as a coffee feast
celebration in Amadeo. It is a tribute for the greatness of coffee, the town’s bountiful and chief
harvests. It is for this reason that the Province of Cavite and its municipalities and ci and the
Cavite State University spearheaded the campaign for the creation of a Coffee Research,
Development and Extension Center (CoRDEC).

The legislation envisions the creation of a center that will have the general powers and functions
in line with the research, development and extension programs of the Department of Agriculture-
Bureau of Agricultural Research (DA-BAR), Department of Science and Technology (DOST),
Department of Trade and Industry (DTI), National Economic and Development Authority
(NEDA) and the Cavite State University (CvSU). The Center will be in the forefront of
educating and training all stakeholders of the coffee industry; conducting relevant researches,
scientific study and feasible marketing strategies; extending technologies; and creating linkages
with international organizations and other coffee development centers in other countries.

‘Approval of this policy measure is eamestly sought.
~

‘GARY C. ALEJANO- ‘CISCO ASHLEY L. ACEDILLO


13

14

REPUBLIC OF THE PHILIPPINES
HOUSE OF REPRESENTATIVES,
Quezon City

SIXTEENTH CONGRESS
First Regular Session

House Bill No. __ 946

Introduced by MAGDALO Party List Representatives Gary C. Alejano
and Francisco Ashley L. Acedillo

AN ACT
CREATING A COFFEE RESEARCH, DEVELOPMENT AND EXTENSION CENTER,
AUTHORIZING THE APPROPRIATION OF FUNDS THEREFOR, AND FOR OTHER
PURPOSES

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

SECTION 1. The Coffee Research, Development and Extension Center (hereinafter
referred to as CoRDEC) based at the Cavite State University (CvSU), in the Municipality of

Indang, Province of Cavite is hereby established.

SEC. 2. The Center shall have the following general powers and functions in line with
the research, development and extension programs of the Department of Agriculture - Bureau of
Agricultural Research (DA-BAR), Department of Science and Technology (DOST), Department
of Trade and Industry (DTI), National Economic and Development Authority (NEDA) and the
Cavite State University (CvSU).

a. Educate and train all stakeholders of the coffee industry;

b. Conduct relevant researches, scientific study and feasible marketing strategies;

c. Extend technologies; and

d. Link with international organizations and other coffee development centers in other

countries.


10

1

12

13

14

a7

18

19

23

24

25

26

27

for the planning, implementation, and supervision of the Center's program of acti

SEC. 3. The Center shall have the specific powers and functions:

a. Develop productive, high yielding, good quality varieties/trains of coffee;

s

.. Develop efficient, economic and productive coffee production technologies;
c. Develop effective and sound coffee processing technologies for varieties ““Exelsa”,

‘‘Liberica” and other outstanding varieties coffee:

a

Develop effective production systems for all coffee varieties;

Establish and maintain germplasm collection and gene bank for coffee;

Develop effective and efficient marketing systems for coffee;

Evolve productive coffee-based farming systems;

®

h, Develop and implement appropriate and suitable technology packages and effective
technology transfer schemes, especially the conduct of training programs;

i. Upgrade the skills of development facilitators, estensionists and farmers through
trainings, seminars and workshop on coffee production and postharvest handling and
processing;

j. Establish national and international linkages for coffee research, development,

extension and production activities; and

k. Coordinate with other government/non-government agencies involved in the

development of the coffee industry.

SEC. 4. The Center shall be headed by an Executive Director who shall be responsible

Executive Director shall possess the following qualifications:

4.1. Must not be more than fifty (50) years of age;

4.2. Must have completed substantial and relevant education and experience on coffee
research and development; and

4.3. Must be of good moral character and has not been involved in a legal case involving

moral turpitude.


19

20

21

22

23

24

25

All other officers and employees of the Center shall be appointed by the Executive Director

consistent with the provisions of the Civil Service laws, rules and regulations.

SEC. 5. The plans and programs of the Center shall be reviewed annually by the
‘Advisory Board which shall be composed of:

a. The Secretary of the Department of Agriculture as Chairman;

b. The University President of the Cavite State University, as Vice-Chairman;

c. The Secretary of the Department of Trade and Industry, as Member;

d. One (1) representative from a non-governmental organization (NGO) working on

coffee production, research and development and processing;
¢, One (1) representative from the group of coffee tranders;

£. One (1) representative from the group of coffee processors; and

g, One (1) representative from the group of coffee growers.

SEC. 6. The presence of at least five (5) members at the time of the meeting shall
constitute the quorum: Provided, however, That the Chairman, in his absence, the Vice-

Chairman, shall preside.

SEC. 7. The Center is hereby authorized to plan, construct, develop, improve, acquire, or
lease buildings, farms, fields and other facilities, to purchase machineries, equipment, materials
and supplies locally or abroad as may be necessary to carry out its functions and objectives.
Moreover, the Center shall enjoy exemption from taxes and other duties in the importation of
such machineries, development and extension programs, subject to the provisions of Section
105(8) of the Tariff and Customs Code, Section 103(f) of the National Internal Revenue Code

and to the provisions on Automatic Appropriations under the General Appropriations Act.


10

co

12

13

14

15

16

ov

18

19

20

2a

22

SEC. 8. The main offices, experimental area and nursery of the Center shall be located at
the Cavite State University campus in Indang, Cavite. The Center may hereafter establish similar
facilities in its other service areas in order to promote the development of the coffee industry in

the country.

SEC. 9. The amount of fifty million pesos (Php50,000,000.00) is hereby authorized to be
appropriated from the Special Activities Fund of the President of the Republic of the Philippines,
or from any other sources that may be identified for the purpose. Thereafter, such sum required
for its operation, maintenance, research, development and extension activities shall be included

in the annual General Appropriations Act.

SEC. 10. Any and all savings and income of the Center shall constitute a revolving fund
which shall not be reverted to the General Fund and which shall be used by the Center in the

furtherance of its goals and objectives.

SEC. 11. All existing laws, rules and regulations or part thereof inconsistent with the
provisions of this Act are hereby repealed, superseded or modified accordingly; Provided,
however, That nothing in this Act shall amend, modify or repeal the provisions of Republic Act

No. 7160, otherwise known as the Local Government Code.

SEC. 12. This Act shall take effect fifteen (15) days of its complete publications in the

Official Gazette or in at least two (2) newspapers of national circulation.

Approved,