Republic of the Philippines 
House of Representatives 
Quezon City, Metro Manila 
NINETEENTH CONGRESS 
First Regular Session 
HOUSE BILL NO. ______ 
______________________________________________________________ 
Introduced by Representative ED CHRISTOPHER S. GO 
__________________________________________________________________________ 
AN ACT ESTABLISHING  
THE PHILIPPINE CORN RESEARCH INSTITUTE 
AND APPROPRIATING FUNDS THEREFOR 
EXPLANATORY NOTE 
This bill seeks to establish the Philippine Corn Research 
Institute (PhilCorn), which shall 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 stock, including those subsequent 
(or rotational) crops that are grown after rice in rainfed farms and in 
dryland and marginal upland farms in the country. 
The national government has affirmed its goal of ensuring the 
country’s food, feeds, forage, and bioenergy security through the 
development of a modern, highly productive, efficient, and competitively 
secured agriculture. The success in this new and comprehensive 
venture of modernizing corn production and its industrialization would 
tremendously help improve and advance people’s employment and 
livelihood opportunities and thus reduce poverty and hunger, 
particularly in rural areas. Therefore, it is important to identify our 
target areas and to consider as well the vulnerable upland and dry-land 
agro-ecosystems where many of the resource-poor farmers, particularly 
the corn farmers, grow their food and feed crops, including poultry and 
livestock. 
Corn is the second most important national food crop next to rice.  
It serves as the staple food of 20 percent of the Philippine population. 
Furthermore, corn is the main component of up to 75% of formulated 
feeds for livestock, poultry, and aquaculture fishery.  
August 12, 2022
2:58 pm
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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 demand for both white corn as human food, and yellow corn 
as animal feeds and for industrial uses has 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 under Republic Act No. 
9367, the Biofuels Act of 2006. 
 
Low crop yields and the meager household income of the 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 systems;  
3. Slow adoption of crop rotation technologies; 
4. Ineffective drought mitigation approaches;  
5. Inadequate mechanization of field operations from 
land preparation to harvesting and drying; 
6. Large portions of 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. 
 
The Philippines has more than three million hectares of upland 
and dry-land areas inhabited by about five million households, most of 
which 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 phenomena, soil infertility, and inaccessibility of high-quality 
crop seeds aggravate the low productivity and untold sufferings of poor 
corn farming communities. 
 
The spacious degraded lands and infertile soils in the upland and 
dry-land 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. When properly nurtured, 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 as:  rice, coconut, 
sugarcane, fiber and abaca, cotton, silkworm, tobacco, 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.  
 
However, there is no such similar institute that is devoted to corn 
and corn-based farming systems that include crops such as sorghum 
and grain legumes that are important as food, feed, forage, and fuel. 
 
Therefore, it is time to establish the Philippine Corn Research 
Institute (PhilCorn). 
 
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 farmers to become 
prosperous by increasing the productivity and quality of their produce 
through modern farm planting practices, harvesting, 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 – The Philippine Corn Research Institute (PhilCorn) – that 
is designed and committed:  
 
1. 
To 
unify, 
coordinate, 
fund, 
implement, 
and 
strengthen all national and farm-level efforts on RDE for corn and 
corn-based farming systems for food, feeds, forage, and fuel; 
 
2. 
To hasten technology sharing activities that will 
improve the livelihood of resource-poor farming communities and 
empower them to cope 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 corn 
products for domestic and foreign markets, and  
 
4. 
To improve the economic condition and income of 
farmers in the upland and dry-land regions of the country. 
 
In view of the foregoing information and in order to dramatically 
reduce poverty and improve people’s employment and livelihoods, 
particularly those in the rural areas, and to ensure the country’s food 


sufficiency and energy security, approval of this landmark legislation is 
earnestly sought. 
     ED CHRISTOPHER S. GO 
  Representative 
2nd District, Isabela 


1 
Republic of the Philippines 
House of Representatives 
Quezon City, Metro Manila 
NINETEENTH CONGRESS 
First Regular Session 
HOUSE BILL NO. ______ 
______________________________________________________________ 
Introduced by Representative ED CHRISTOPHER S. GO 
__________________________________________________________________________ 
AN ACT ESTABLISHING  
THE PHILIPPINE CORN RESEARCH INSTITUTE 
AND APPROPRIATING FUNDS THEREFOR 
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 
1 
Philippine Corn Research Institute Act. 
2 
SEC. 2. Philippine Corn Research Institute. – The Philippine 
3 
Corn Research Institute, hereinafter referred to as PhilCorn, is hereby 
4 
established as a body corporate attached to the Department of 
5 
Agriculture (DA) to modernize the corn industry and consequently 
6 
improve the livelihood and household income of resource-poor corn 
7 
farmers in the rainfed, upland, and dryland farming communities and 
8 
to empower farmers with the tools of science and technologies so that 
9 
they can cope up with problems of low yields, droughts, floods, land 
10 
degradation, 
global 
warming, 
and 
other 
risks 
arising 
from 
11 
environmental and climate changes. 
12 
SEC. 3. Objectives. The objectives and goals of this Act are as 
13 
follows: 
14 
15 
a) To develop and implement a strong, dynamic, and innovative
16 
farmer-centered and need-based framework for national corn research 
17 
and development, technology sharing, training, and extension 
18 
programs; 
19 
b) To strengthen the national capacity for corn research and
20 
extension, modernize production and utilization as well as industrial 
21 
processing of corn and corn-based crops, diversify harvests through 
22 
sequential crops to sustain soil health and fertility and thus enhance 
23 
long-term higher productivity and household income; 
24 
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2 
 
     c) To improve the livelihood and economic conditions of small-scale 
25 
and resource-poor farmers who are growing corn after rainfed rice as 
26 
well as in upland and dryland farming ecosystems;  
27 
 
     d) To work closely with regulatory agencies such as BPI (i.e. National 
28 
Seed Quality Control Laboratory, NSQCL; Quarantine Division, and 
29 
National Seed Industry Council, NSIC), Bureau of Agriculture and 
30 
Fisheries Standards (BAFS), and private stakeholders (i.e. PhilMaize) 
31 
and NGOs in the collection, conservation, and utilization of endemic or 
32 
traditional corn varieties as well as in the experimentation, planting, 
33 
and monitoring of corn hybrid and genetically engineered varieties; 
34 
 
     e) To develop and implement sustainable and environment-friendly 
35 
corn and corn-based farming systems in the vulnerable and marginal 
36 
areas like sloping terrains and evaluate those areas where crops other 
37 
than corn may be more appropriate to grow;  
38 
 
     f) To gather and provide reliable, up-to-date data to guide 
39 
policymakers with regard to corn improvement and development, 
40 
import and export volumes, and develop strong linkages among 
41 
stakeholders in promoting the national corn industry;  
42 
 
     g) To expand employment opportunities through corn and corn-
43 
based farming systems in the rural areas, and ultimately promote the 
44 
general welfare of the people through higher efficiency and profitability 
45 
in production, industrial products development, processing, and 
46 
marketing; 
47 
 
     h) To initiate and undertake such other related programs in 
48 
consultation and partnership with the DA-Bureau of Agricultural 
49 
Research (DA-BAR), the DA regional research centers (DA-RIARCs), the 
50 
Philippine Council for Agriculture, Aquatic Resources, Forestry, and 
51 
Natural Resources Research and Development (PCAARRD), State 
52 
Universities and Colleges (SUCs), and the private sector.  
53 
 
      
SEC. 4. Principal and Regional Offices. The PhilCorn shall 
54 
have its principal office at the Isabela State University or at any other 
55 
suitable site as the Board of Trustees may decide. It may also establish 
56 
other offices, branches, satellite offices, or subsidiaries in any 
57 
geographically suitable region in the Philippines that are major 
58 
producers of corn and as may be necessary or proper for the 
59 
accomplishment of its purposes and objectives. 
60 
 
 
SEC. 5. Duties and Functions. The PhilCorn shall exercise the 
61 
following duties and functions:  
62 
 
     a) Unify, plan, fund, conduct, monitor, and evaluate corn research, 
63 
development, and technology promotion in different scientific and 
64 
technological fields and programs, including but not limited to the 
65 


3 
 
following thrusts: (1) germ plasm collection, conservation, breeding, 
66 
and biotechnology; (2) natural resources management, watershed 
67 
conservation, drought adaptation and mitigation; (3) corn engineering, 
68 
farm 
mechanization, 
and 
post-harvest 
management; 
(4) 
pest 
69 
surveillance, early warning system, integrated pest management, and 
70 
biological control methods; (5) socio-economics, impact assessment, 
71 
and policy advocacy; (6) technology packaging and demonstration, 
72 
promotion 
and 
deployment, 
training 
and 
communication; 
(7) 
73 
processing and industrial-chemical products development; and  (8) 
74 
corn-based farming systems, farm management improvement, and 
75 
experiment station development. 
76 
 
     b) Unify, lead, fund, and coordinate a national network of corn and 
77 
corn-based farming systems research and extension agencies, centers, 
78 
and stations located in the different agro-ecological regions of the 
79 
country where corn is a major crop;  
80 
 
     c) Develop technologies suitable for the rainfed, upland, and dryland 
81 
agro-ecosystems that will maximize the productivity and quality of 
82 
locally grown corn and corn-based crops while also reducing 
83 
production costs and ensuring long-term and sustainable corn and 
84 
corn-based production systems through genetic improvement and 
85 
environmental resources and conservation measures;  
86 
 
     d) Enhance income of corn farmers by developing suitable corn-
87 
based crops and livestock farming systems as well as crop rotations 
88 
where applicable; value-adding corn technologies including on-farm 
89 
verification, processing, packaging, marketing, and promotion of 
90 
economically viable technologies as well as entrepreneurial skills, giving 
91 
emphasis on those aspects necessary for group endeavors of small-
92 
scale farmers, cooperatives, and seed growers; 
93 
 
     e) Develop databases needed in the identification and preparation of 
94 
necessary policy recommendations towards efficient, highly productive 
95 
and competitive corn industry and corn-based farming systems 
96 
through appropriate socio-economic measures and public-private 
97 
sector mobilization and participation; 
98 
 
     f) Organize and develop strong training and communication 
99 
programs for corn and corn-based farming systems scientists, research 
100 
managers, and extension specialists to enable them undertake effective 
101 
and timely technology promotion of packaged technologies among 
102 
clusters of farmers and corporate growers by utilizing modern extension 
103 
systems such as information, education, and communication (IEC) 
104 
technology and participatory social mobilization procedures; 
105 
 
     g) Publish and disseminate research and extension findings and 
106 
recommendations through scientific journals, books, technical and 
107 


4 
 
extension bulletins, videos, and other print and communication 
108 
channels. 
109 
 
110 
 
SEC. 6. Corporate Powers. The PhilCorn shall exercise the 
111 
following corporate powers:  
112 
 
     a) Exercise all the powers of a corporation under the general 
113 
corporation law, in so far as such powers are not inconsistent with the 
114 
provisions of this Act; 
115 
 
116 
     b) Enter into, make and execute contracts and agreements of any 
117 
kind or nature, and to sue and be sued in its corporate name; 
118 
 
     c) Borrow funds and obtain loans from all sources, whether local or 
119 
foreign and whether government or private, to help finance its research 
120 
programs and its capital and operating expenditures, or support to 
121 
farmer entrepreneurial activities;  
122 
 
     d) Invest in, purchase or otherwise acquire, own, lease, mortgage, 
123 
pledge, sell, assign, convey, exchange, encumber, borrow, or otherwise 
124 
deal in real and/or personal properties of whatever kind and nature, or 
125 
any interest therein, including shares of stock, bonds, notes, securities, 
126 
and other evidences of indebtedness of natural or juridical persons, 
127 
whether domestic or foreign and whether government or private;  
128 
 
     e)Receive and acquire from any person, government and private 
129 
entities, whether foreign or domestic, or from any corporation, 
130 
partnership, association or other entity such characters, licenses, 
131 
franchises, 
rights, 
privileges, 
concessions, 
assistance, 
grants, 
132 
donations, loans, and contributions consisting of such properties, real 
133 
or personal, including funds and valuable effects, as may be useful, 
134 
necessary or proper to finance its research, capital and operating 
135 
expenditures or otherwise carry out its purposes and objectives, and to 
136 
administer the same in accordance with the terms and agreement 
137 
consistent with its purposes and objectives;   and 
138 
 
     f) Acquire from the government, whether national or local or from 
139 
any person, corporation, partnership, association or other entity, such 
140 
characters, franchises, rights, privileges, assistance, financial or 
141 
otherwise and concessions as may be conducive to and necessary or 
142 
proper for the attainment of the purposes and objectives of PhilCorn. 
143 
 
 
SEC. 7. Board of Trustees. The Board of Trustees, hereinafter 
144 
referred to as the Board, shall exercise all the corporate functions and 
145 
powers of the PhilCorn and shall control all its businesses, activities, 
146 
and properties that are relevant to the goals and functions of the 
147 
Institute. 
148 
 


5 
 
     a) The Board shall be composed of the Secretary of Agriculture or 
149 
his designate as ex-officio Chairperson and fourteen (14) members from 
150 
the following agencies and sectors: Executive Director of the Philippine 
151 
Council for Agriculture, Aquaculture, Forestry, and Natural Resources 
152 
Research and Development  (PCAARRD) of the Department of Science 
153 
and Technology (DOST) who will act as Co-Chairperson; Director of the 
154 
Bureau of Agricultural Research (BAR) who will act as Vice-
155 
Chairperson; Regional Executive   Director (RED) representing the DA 
156 
Regional Field Offices (DA-RFOs);Undersecretary of the Department of 
157 
Budget and Management (DBM); Director of the Agriculture Division of 
158 
the National Economic and Development Authority (NEDA);Director of 
159 
the DA-Philippine Council for Agriculture and Fisheries (DA-PCAF); two 
160 
(2) University Presidents from the State Universities and Colleges 
161 
(SUCs) representing major corn producing and corn-based agriculture 
162 
regions; four (4) private sector representatives, namely: one each from 
163 
among the national outstanding corn farmers, farmers' organizations 
164 
or federations (Philippine Maize Federations, Inc.),  private companies 
165 
engaged 
in 
corn 
research 
and 
seed 
production, 
and 
the 
166 
livestock/poultry industry; and two (2) distinguished scientists from 
167 
the public and private sectors. The credentials of private sector 
168 
representatives shall be evaluated and scrutinized by competent 
169 
members of the Board. 
170 
 
     b) The term of office of the members of the Board who are heads or 
171 
officials from their respective agencies or institutions shall be co-
172 
terminus with their respective appointments; Provided, however, That 
173 
the term of office of the Regional Executive Director who represents the 
174 
DA-RFOs where corn is a major crop and the four (4) private sector 
175 
representatives shall be for five years without prejudice to a 
176 
reappointment for another five years based on merits and excellent 
177 
performance in the Board. The PhilCorn Executive Director shall serve 
178 
as Secretary of the Board. All government officials in the Board shall 
179 
serve as ex-officio members and shall not receive any salary or 
180 
compensation. 
181 
 
     c) The Chairperson, Co-Chairperson, Vice-Chairperson, and 
182 
members of the Board shall receive per diem, as the Board may 
183 
determine, for each Board meeting actually attended; Provided, 
184 
however, That such members shall also be entitled to reimbursable 
185 
transportation and representation allowances in going to and coming 
186 
from board meetings and in transacting official business for the 
187 
Institute. 
188 
 
     d) The Board shall meet regularly at least once (1) every quarter or 
189 
as often as the exigencies of the service demands.  The presence of the 
190 
Chairperson, Co-Chairperson or Vice-Chairperson and at least seven 
191 
(7) members of the Board shall constitute a quorum and the majority 
192 
vote of the members present, there being a quorum, shall be necessary 
193 


6 
 
for the adoption of any resolution, rule, regulation, decision or any other 
194 
act of the Board. 
195 
 
      
SEC. 8. Powers and Functions of the Board.  The PhilCorn 
196 
Board shall exercise the following powers and functions: 
197 
 
     a) To adopt by-laws and promulgate policies, rules, regulations, and 
198 
procedures for the efficient and effective operations of the Institute; 
199 
 
b) To define and guide in the formulation of the vision, mission, 
200 
strategy, and research-extension priorities, general plans and 
201 
programs, and guidelines for the proper operation and management of 
202 
the PhilCorn in accordance with its purposes and objectives and in line 
203 
with research planning and monitoring policies and procedures of 
204 
PCAARRD and BAR; 
205 
 
c) To approve the PhilCorn’s organizational structure and staffing 
206 
pattern, operation and capital expenditures, and financial budget 
207 
prepared in accordance with its corporate plans; 
208 
 
d) To approve the plantilla and salary ranges, benefits, privileges, 
209 
bonuses, scholarship and manpower development, housing facilities 
210 
and support to staff, and other terms and conditions of service, 
211 
including promotion systems similar to those in the State Universities 
212 
and Colleges (SUCs) and the Department of Science and Technology 
213 
(DOST) as well as life and medical insurances and retirement schemes 
214 
or benefits for all officers and employees of the PhilCorn, upon 
215 
recommendation of the Executive Director; 
216 
 
e) To appoint, promote, transfer, suspend, remove or otherwise 
217 
discipline any subordinate officer or employee of the Institute, upon 
218 
recommendation of the Executive Director; 
219 
 
f) To create such committees and appoint the members thereof, as may 
220 
be necessary and proper for the management of the PhilCorn or for the 
221 
attainment of its purposes and objectives; and 
222 
 
g) To exercise such other powers and functions and perform such other 
223 
acts as may be necessary or proper for the attainment of the purposes 
224 
and objectives of the PhilCorn, or as may be delegated by the Secretary 
225 
of Agriculture or any competent authority through the Board of 
226 
Trustees.  
227 
 
SEC. 9. Executive Director and Other Officers.  The PhilCorn 
228 
shall be headed by an Executive Director who shall be appointed by the 
229 
President of the Philippines, upon recommendation of the Board of the 
230 
Trustees (BOT), based on the findings and recommendations of a search 
231 
committee duly organized and commissioned by the Board for such 
232 
purpose.   
233 


7 
 
 
The Executive Director shall serve for a term of five (5) years, subject to 
234 
a one term extension of five (5) years for very meritorious performance, 
235 
or a maximum total of ten (10) years without further extension for any 
236 
reason whatsoever; Provided, however, That there shall be a reserved 
237 
plantilla position of the same salary rate for the outgoing Executive 
238 
Director, if he is previously a holder of a plantilla position at PhilCorn 
239 
and shall not yet be of retirement age at the end of his term as Executive 
240 
Director; Provided, further, That the Board of Trustees, through a 
241 
search committee duly organized at least four (4) months earlier, shall 
242 
have chosen a new Executive Director who shall immediately assume 
243 
office during a turn-over ceremony on the expiration date of the term of 
244 
office of the outgoing Executive Director; Provided, finally, that no 
245 
Officer-in-Charge shall be designated as head of the Institute.  
246 
 
The Executive Director shall be assisted by two Deputy Executive 
247 
Directors, Division Heads, and Branch Station Directors or Managers 
248 
as the Board may determine, to carry out the purposes and objectives 
249 
of the PhilCorn.  
250 
 
SEC. 10. Powers, Functions, and Duties of the Executive 
251 
Director.  The Executive Director shall be directly responsible to the 
252 
Board and shall have the following powers, functions, and duties: 
253 
 
     a) To exercise dynamic leadership, create a vision, map out the 
254 
mission, provide strategic direction, and undertake systematic 
255 
supervision over the planning and implementation of all research, 
256 
development, technology sharing programs, training and extension, 
257 
upgrading of scientists and staff   of the Institute and, in general, 
258 
administer and direct the management and operations of PhilCorn with 
259 
transparency, accountability, and integrity; 
260 
 
     b) To execute all contracts, incur obligations, acquire and dispose of 
261 
assets, and deliver documents on behalf of the PhilCorn within the 
262 
framework of the authority delegated by the Board; 
263 
 
     c) To implement and enforce policies, decisions, orders, rules, and 
264 
regulations that are promulgated or adopted by the Board;  
265 
 
     d) To arrange for the conduct of an External Program and 
266 
Management Review (EPMR) by a Panel of Experts every 5 years or as 
267 
often as necessary in order to understand the output and impact of 
268 
PhilCorn programs to the farmers and stakeholders of the corn industry 
269 
and to provide guidance to management in charting the future of the 
270 
institute; and  
271 
 
     e) To exercise such other powers and functions and performs such 
272 
other duties as may be authorized, assigned, or delegated by the Board. 
273 
 


8 
 
SEC. 11. Technical Advisory Committee.  A Technical Advisory 
274 
Committee (TAC), organized and approved by the Board, shall assist the 
275 
Executive Director, Division heads, Program Directors, and Branch 
276 
Station Directors or Managers in pursuing interagency activities and 
277 
participation of the national RD&E network. The TAC shall be 
278 
composed of not more than nine (9) members, or as the Board may 
279 
designate, who are heads, representatives, or scientists and experts of 
280 
agencies, government or private, that are actively involved in any critical 
281 
aspect of corn research, corn-based farming systems, seed quality 
282 
certification, training and extension, production and processing, 
283 
marketing and consumption, policy advocacy, and capacity building. 
284 
TAC members may be assigned to assist specific programs, divisions, 
285 
or branch stations as the services may require in achieving the goals 
286 
and objectives of PhilCorn. 
287 
 
SEC. 12. Services of Government Personnel.  The PhilCorn 
288 
may, for the purpose of its research, development, training, and 
289 
extension activities, obtain and secure the services of scholars and 
290 
scientists as well as specialists in research, training, extension,  and 
291 
communication of any unit, experiment station, institute or center of 
292 
the Department of Agriculture, University of Southern Mindanao, 
293 
Central Mindanao University, Visayan State University, University of 
294 
the Philippines Los Banos, Mariano Marcos State University, Isabela 
295 
State University, Central Luzon State University, and other agencies 
296 
and universities of the national government and foreign institutions. 
297 
Those personnel of national and international reputations, from public 
298 
or private institutions, shall be designated as visiting scientists and 
299 
research fellows for a term of one year to five years to assist in 
300 
conducting major research problems of strategic importance and 
301 
consequences in pursuing the goals and objectives of the Institute. The 
302 
selected personnel may be paid such honoraria or incentives acceptable 
303 
to all concerned and as may be fixed and authorized by the Board. 
304 
 
SEC. 13. Buildings, Facilities, and Equipment.  The PhilCorn 
305 
is hereby authorized to own, acquire, borrow, lease, plan, and construct 
306 
or repair buildings, laboratories, experimental farms, and other 
307 
facilities as may be necessary or proper to attain its purposes and 
308 
objectives. It may also utilize facilities of any unit of any cooperating 
309 
SUC, the Department of Agriculture, and of the national government 
310 
that is engaged, directly or indirectly, in activities that relate to 
311 
agriculture, farming systems, corn production or products development 
312 
of the corn industry. 
313 
 
     a) The PhilCorn is further authorized to purchase equipment, 
314 
materials and articles, either locally or abroad, as may be necessary or 
315 
proper to carry out its powers and functions and attain its purposes 
316 
and objectives. It shall be exempted from the payment of any and all 
317 
forms of taxes, duties, fees and charges on any and all such importation 
318 


9 
 
of equipment, materials, articles, and services; Provided, however, That 
319 
the same are not available locally on favorable terms. 
320 
 
     c) Likewise, all lands, farms, plantations, whether directly or 
321 
indirectly owned, used, utilized or administered by the PhilCorn and 
322 
those that it may hereinafter acquire or utilize for research, training, 
323 
extension and technology demonstration, and seed production 
324 
purposes shall be exempted from the coverage of the Comprehensive 
325 
Agrarian Reform Law.  
326 
 
SEC. 14. Appropriation.  The Secretary of Agriculture and the 
327 
Secretary of Budget and Management are hereby authorized and 
328 
directed to set aside out of the existing funds of the Department of 
329 
Agriculture the amount of Four Hundred Million Pesos (P400M) as the 
330 
initial fund to be used for its initial operations, including provisions for 
331 
salary of personnel, conduct of research and technology promotion, 
332 
construction of laboratories and other physical infrastructures, 
333 
purchase and development of  experimental farms, and acquisition and 
334 
purchase of equipment for laboratories, farm development, and offices. 
335 
This initial amount shall be drawn from the DA National Corn Program, 
336 
BAR appropriations for research, RP-Japan Fertilizer Grant (KR-2), 
337 
Public Law PL 480 (PL480), and/or any other existing bilateral funding 
338 
sources in the Department of Agriculture.  Thereafter, the government 
339 
contribution to the Institute's operations shall be provided for under its 
340 
own Key Budgetary Inclusion (KBI) in the Annual General 
341 
Appropriations Act.  Furthermore, the PhilCorn Board of Trustees shall 
342 
seek financial support from foreign donors such as JICA, KOICA, 
343 
AusAid, USAID, and similar institutions for the establishment and 
344 
improvement of PhilCorn infrastructures, laboratory facilities, field 
345 
experiment station development, and training and scholarship of 
346 
qualified personnel. 
347 
 
The annual appropriations herein provided shall be subject to the fiscal 
348 
control and management procedures provided for in Executive Order 
349 
714 of 1981.  All funds, savings, grants, and income of the PhilCorn 
350 
shall constitute a revolving fund, to be managed as Trust Fund, and 
351 
shall be considered part of the funds automatically released to the 
352 
PhilCorn. 
353 
 
SEC. 15. Applicability of Civil Service Laws. The PhilCorn and 
354 
its officers and employees shall be subject to the Civil Service Law, rules 
355 
and regulations; Provided, however, That all technical personnel shall 
356 
be selected on the basis of the highest possible standards of merit and 
357 
fitness for public officials and employees, preferably those with 
358 
postgraduate degrees, to be determined in accordance with such 
359 
policies and guidelines as may be approved by the Board. 
360 
 
SEC. 16. Auditor.  The Chairperson of the Commission on Audit 
361 
(COA) shall be the Ex-Officio Auditor of the PhilCorn.  For this purpose, 
362 


10 
 
he may appoint a representative who shall be the auditor of the 
363 
PhilCorn, together with the necessary personnel to assist the COA 
364 
representative in the performance of his duties.   
365 
 
SEC. 17. Legal Counsel.  The Government Corporate Counsel 
366 
shall be the Legal Counsel of the PhilCorn; Provided, however, That the 
367 
PhilCorn may establish its own legal unit, subject to the supervision 
368 
and control of the Government Corporate Counsel, to handle the day-
369 
to-day legal matters affecting the affairs of the PhilCorn.  
370 
 
SEC. 18. Annual Report.  The Board shall submit to the 
371 
President of the Philippines through the Secretary of Agriculture an 
372 
annual report, together with the audit report on the relevant accounts, 
373 
generally dealing with the activities and operations of the PhilCorn.  
374 
 
SEC. 19. Separability Clause. The provisions of this Act are 
375 
hereby declared separable. If any portion hereof shall be held invalid or 
376 
unconstitutional, such invalidity or unconstitutionality shall not affect 
377 
the other provisions, which shall remain in full force and effect in their 
378 
entirety. 
379 
   
SECTION 20. Effectivity Clause – This act shall take effect 
380 
fifteen (15) days following its publication in two (2) newspaper of general 
381 
circulation.  
382 
 
          Approved,