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

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EIGHTEENTH CONGRESS |, tvs, ue @a_
First Regular Session \o 0": fa —
House pit No.__ 944 a e

Introduced by Representative ALYSSA SHEENA TAN

EXPLANATORY NOTE

Corn is a major crop product in the Philippines. In 2018, the Philippines has produced
about 7,772,000 Metric Tons of white and yellow corn, while a total of 2,511,000
Hectares have been used for corn production. It is considered as a basic commodity
and a staple food for most Filipinos, In fact, it is promoted as a healthy alternative
and a nutritious substitute for rice. Corn contributes to the livelihood of plenty as
about 600,000 farm households depend on the same as their primary source of income.
Additionally, corn is also a leading source of feed for the Philippine poultry and
livestock industry.

Notwithstanding the apparent importance of com to the Philippines, a specialized
corn research institute dedicated to researching and developing corn farming has yet
to be established. Consistent with Article XIII, Section 5 of the Constitution where it is
expressed that the State shall provide support to agriculture through appropriate
technology and research, this bill seeks to finally establish the long absent Philippine
Corn Research Institute. This institution, to be known as the "PhilCorn," aims to
modernize the corn industry, thereby improving the quality of corn products as well
as the livelihood and capacities of Philippine corn farmers.

The creation of the Philippine Corn Research Institute has been previously attempted
by prior bills filed in the seventeenth congress through various representatives.
Unfortunately, these bills were not able to transform into law. In view of the foregoing
the immediate approval of this bill is earnestly sought.

Atty. [Alyssa Sheena Tan
Represepttative, 4'* District of Isabela


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

EIGHTEENTH CONGRESS,
First Regular Session

HOUSE BILL NO.__914
Introduced by Representative ALYSSA SHEENA TAN

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 Philippine Corn Research
Institute Act of 2019.

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) to modernize the corn
industry and consequently improve the livelihood and household income of
resource-poor corn farmers in the rain-fed, upland, and dry-land farming
communities and to empower farmers with the tools of science and technologies so
that they can cope up with problems of low yields, droughts, floods, land
degradation, global warming, and other risks arising from environmental and
climate changes.

SECTION 3. Objectives. The objectives and goals of this Act are as follows:
a) To develop and implement a strong, dynamic, and innovative farmer-
centered and need-based national corn research and development,

technology sharing, training, and extension programs;

b)

To strengthen the national capacity for corn research and extension,
modernize production and utilization as well as industrial processing of
corn and corn-based crops, diversify harvests through sequential crops
to sustain soil health and fertility and thus enhance long-term higher
productivity and household income;


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To work closely with regulatory agencies such as the Bureau of Plant
Industry; the Bureau of Agriculture and Fisheries Standards; and
private stakeholders and NGOs in the collection, conservation, and
utilization of endemic or traditional corn varieties as well as in the
experimentation, planting, and monitoring of corn hybrid and
genetically engineered varieties;

d) To improve the livelihood and economic conditions of small-scale and
resource-poor farmers who are growing corn after rain-fed rice as well

as in upland and dry-land farming ecosystems

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 reliable, up-to-date data to guide policy makers
with regard to 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 consultation
and 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, State Colleges and Universities,
and the private sector.

SECTION 4. Principal and Regional Offices. The PhilCorn shall have its principal
office at the Isabela State University or at any other suitable site as the Board of
Trustees may decide. 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.


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

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4 a) Unify, plan, fund, conduct, monitor, and evaluate corn research,
5 development, and technology promotion in different scientific and
6 technological fields and programs, including but not limited to the
7 following thrusts: (1) germplasm collection, conservation, breeding, and
8 biotechnology; (2) natural resources management, watershed
9 conservation, drought adaptation and mitigation; (3) corn engineering,

10 farm mechanization, and post-harvest management; (4) _ pest
u surveillance, early warning system, integrated pest management, and
12 biological control methods; (5) socio-economics, impact assessment, and
13 policy advocacy; (6) technology packaging and demonstration,
14 promotion and deployment, training and communication; (7) processing
15 and industrial-chemical products development; and (8) corn-based
16 farming systems, farm management improvement, and experiment
7 station development.

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

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24 c) Develop technologies suitable for the rain-fed, upland, and dry-land
25 agro-ecosystems that will maximize the productivity and quality of
26 locally grown corn and corn-based crops while also reducing production
27 costs and ensuring long-term and sustainable corn and corn-based
28 production systems through genetic improvement and environmental
29 resources and conservation measures;

30

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

38

39  e) Develop databases needed in the identification and preparation of
40 necessary policy recommendations towards efficient, highly productive
41 and competitive corn industry and corn-based farming systems through
a2 appropriate socio-economic measures and public-private sector
43 mobilization and participation;


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f) Organize and develop strong training and communication programs for
corn 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 technology and
participatory social mobilization procedures; and

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 PhilCorn shall exercise the following corporate
powers:

a) To adopt and use a corporate seal,
b) To sue and be sued in its corporate name;
©) To have perpetual existence unless a law provides otherwise;

d) To adopt its by-laws and promulgate such rules and regulations as may
be necessary or proper to implement this Act, and to amend or repeal
the same from time to time;

e) To enter into, make and execute contracts and agreements of any kind or
nature;

f) To 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, or support to
farmer entrepreneurial activities;

g) To 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, as
may be useful, necessary or proper to serve the objectives of this Act;


h) To receive and acquire from any person, government and private

entities, 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 PhilCorn’s 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

To 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 the PhilCorn.

SECTION 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 all its businesses, activities, and properties that are relevant to the goals
and functions of the Institute.

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:

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

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

3. Regional Executive Director (RED) representing the DA Regional
Field Offices (DA-RFOs);

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

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


b)

6. Director of the DA-Philippine Council for Agriculture and
Fisheries (DA-PCAF);

7. Two (2) University Presidents from the State Universities and
Colleges representing major corn producing and corn-based
agriculture regions;

8. Four (4) private sector representatives, namely: one each from
among the national outstanding corn farmers, farmers’
organizations or federations, private companies engaged in corn
research and seed production, and the livestock/poultry industry;
and

9. 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.

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-RFOs where
corn is a major crop and the four (4) private 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.

©) 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.

The Board shall meet regularly at least once (1) every quarter 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 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 PhilCorn Board shall exercise

the following powers and functions:

a) To define and guide the formulation of the vision, mission, strategy, and
research-extension priorities, general plans and programs, policies,
procedures, and guidelines for the proper operation and management of
the PhilCorn in accordance with its purposes and objectives;

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

©) To approve the plantilla and salary ranges, benefits, privileges, bonuses,
scholarship and manpower development, housing facilities and support
to staff, and other terms and conditions of service, including promotion
systems similar to those in the State Universities and Colleges and the
Department of Science and Technology (DOST) as well as life and
medical insurances and retirement schemes or benefits for all officers
and employees of the PhilCorn, upon recommendation of the Executive
Director;

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

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

£) 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.

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 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 five (5) years, subject to a
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; Provided, however, That there shall be a reserved


b)

SECTION 10. Powers, Functions, and Duties of the Executive Director. The
Executive Director shall be directly responsible to the Board and shall have the

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 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; Provided, finally, that no Officer-in-
Charge shall be designated as head of the Institute.

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

following powers, functions, and duties:

a)

b}

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, 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 corrupt-free
administration of the PhilCorn;

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;

©) To implement and enforce policies, decisions, orders, rules, and

dy

e)

regulations that are promulgated or adopted by the Board;

To arrange for the conduct of an External Program and Management
Review (EPMR) by a Panel of Experts every 5 years or as often as
necessary in order to understand the output and impact of PhilCorn
programs to the farmers and stakeholders of the corn industry and to
provide guidance to management in charting the future of the institute;
and

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 Directors or Managers in
pursuing inter-agency activities and participation of the national research,
development, and extension network. The TAC shall be composed of not more than
nine (9) members, or as the Board may designate, who are 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 members may be
assigned to assist specific programs, divisions, or branch stations as the services may
require in achieving the goals and objectives of PhilCorn.

SECTION 12. Services of Government Personnel. The PhilCorn may, for the
purpose of its research, development, training, and extension acti 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.

SECTION 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 any
cooperating State Universities and Colleges, 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.

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 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.

b)

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.

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 in 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
(PLA80), 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 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 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. 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, preferably
those with postgraduate degrees, to be determined in accordance with such policies
and guidelines as may be approved by the Board.

SECTION 16. 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.

SECTION 17. 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 18. 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.

SECTION 19. Effectivity. This Act shall take effect fifteen (15) days after its
publication in the Official Gazette or in two (2) newspapers of general circulation.