Republic of the Philippines Se,
HOUSE OF REPRESENTATIVES RECEIVED
Quezon City pare 1 AUG 201g
NEGO pn
SEVENTEENTH CONGRESS es —
First Regular Session _
ens oS! RATION Cary
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MICE

HOUSE BILL NO._3422

Introduced by Honorable Michael Odylon L. Romero

Explanatory Note

This bill seeks to establish the Philippine Corn and other Cereals
Research Institute (PhilCom) that will unify, coordinate, fund, and
strengthen all research and development (R&D) as well as training and
fechnology sharing activities on cor and related crops for food, feeds,
industrial and biofuel purposes.

Com is the second most important national food crop next to rice
and it also serves as the staple food of 20 percent of the Philippine
population. Furthermore, it is 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 of over 2.5 million hectares, mostly in Mindanao, Cagayan
Valley, locos Region, Central Luzon, and Western Visayas. The current
national grain yield in various ecological regions is still low, ranging from
0.5 to 2.5 tons in resource-poor areas although yield can be as high as 10
tons per hectare in few favorable farm environments. Consequently, the
country needs to improve overall productivity among farmers to achieve
self-sufficiency, secure food security, and target the export market over
the medium-and long-term view,

Of the major crops other than rice that support the national

SSENTATIVES


economy, corm (and related cereals) as well as rotation crops 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 0.3 percent, and sugar at
0.5 percant.

In the Philippines, there are well established research institutes
devoted to rice, coconut, sugarcane, fiber and abaca, silkworm, cotton,
tobacco, root crops, biotechnology, plant breeding, crop protection,
farming systems, carabao, dairy, fishery, hogs, and other strategic
commodities and disciplines but unfortunately there is none devoted to
crops such as com and other related cereals such as sorghum, grain
legumes.

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 and dryland farmers to
become prosperous by increasing their productivity and quality of their
produce through modem 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
that is designed and committed: (1) to unify, coordinate, fund, and
strengthen all national and farm-level efforts on com and other cereals,
suitable rotational crops such as grain legumes, biofuel crops that are also
used for food and feeds; (2) to 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) to insure
adequate and stable supply of quality products, and (4) to improve the
economic condition and income of farmers in the upland and dryland
regions of the country,

ly and earnestly

In view of the foregoing, approval of tpjs bill i
recommended.

L ODYLON L. ROMERO


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

SEVENTEENTH CONGRESS
First Regular Session

HOUSE BILL NO. 8422

Introduced by Honorable Michael Odylon L. Romero

AN ACT ESTABLISHING THE PHILIPPINE CORN AND OTHER CEREALS
RESEARCH INSTITUTE AND APPROPRIATING FUNDS THEREOF

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 Com
and other Cereals Research Institute Act"

SEC. 2. Philippine Corn and other Cereals Research Institute. The
Philippine Corn and other Cereals Research Institute, hereinafter referred
to as PhilCorn, is hereby established as a body corporate attached to the
Department of Agriculture

SEC. 3. Objectives. The objectives of this Act are as follows:
a) To develop and implement a strong, dynamic, and innovative
farmer-centered, needs-based national corn and other cereals research

and development, technology sharing, training and extension programs;

») To strengthen the national capacity for research and extension in
upland and dryland agriculture and modernize production, utilization,


and industrial processing of corn and related cereals such as sorghum
and pearl millets, and promoting rotational cropping with legumes and
other commodities for higher productivity and income as well as to sustain
soil health and fertility;

c) To improve the livelinood and economic conditions of small-scale
and resource-poor farmers;

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

e) To develop such other related programs in partnership and in
consultation 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 (PCARRD), State Colleges and Universities (SCUs), and
the private sector.

SEC. 4. Principal and Regional Offices. The PhilCorn shall have its
principal office at any suitable site as the Board of Trustees may decide. It
may also establish other offices, branches, satellite stations, or subsidiaries
in any geographically suitable region in the Philippines that are major
producers of corn and/or 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) Lead and coordinate a national network of corn and related
upland and dry-land based farming systems research and extension
agencies, centers, and stations located in the different agro-ecological
regions of the country where corn is one of the major crops;

b) Plan, fund, conduct, monitor, and evaluate 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 mitigalion; (3) pest surveillance, early warning system, and integrated


pest management: (4) socio-economics, impact assessment, and policy
advocacy; (5) technology demonstration, promotion and deployment,
training and communication, and products development, processing and
packaging: and (6) experiment station and farm management
improvement;

c) Develop technologies suitable for the upland and dryland agro-
ecosystems which will maximize the productivity and quality of locally
grown corn and related cereals as well as grain legumes and suitable
bioenergy crops while also reducing production costs and ensuring a
long-term and sustainable corn and dryland-based production systems
through genetic improvement and environmental resources and
conservation measures;

d) Enhance corn farmers’ income by developing suitable dryland-
based crops and livestock farming systems, and crop rotation where
applicable and value-adding corn technologies, including on-farm
verification, processing, packaging, marketing, and promotion of
economically viable technologies, giving emphasis on those aspects
necessary for group endeavor of small-scale farmers, cooperatives, and
seed growers;

e) Develop databases needed in the identification and preparation of
necessary policy recommendations towards an efficient, highly
productive, and competitive com and other cereal industry and dryland-
based farming systems through appropriate socio-economic measures
and public-private sector mobilization and participation:

f) Organize and develop strong training and communication programs
for corm and dryland-based farming systems scientists, research
managers, and extension specialists to enable them to 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 Phil Corn 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;

) Enter into, make and execute contracts and agreements of any
kind or nature, and to sue and be sued in its corporate name;

¢) 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;

d) 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;

e) Receive and acquire from any person, government and private
entities, whether foreign or domestic, or from any person, 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 cany out ifs 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 PhilCorm.

SEC. 7. Board of Trustees, The corporate functions and powers of the
PhilCorn shall be exercised, and alll its businesses, activities, and properties
shall be controlled, by a Board of Trustees, hereinafter referred to as the
Board,

Q) 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: Director of the Bureau of Agricultural
Research (BAR) who will act as Vice-Chairman; Regional Executive
Director representing the DA Regional Field Units (DA-RFU): Director of the


Philippine Council for Agriculture, Aquaculture, Forestry, and Natural
Resources Research and Development (PCAARRD) of the Department of
Science and Technology (DOST): Undersecretary of the Department of
Budget and Management (DBM); Director of the Agriculture Division of
the National Economic and Development Authority (NEDA), three (3)
University Presidents from the State Universities and Colleges (SUCs)
representing major corn producing and dryland-based agriculture
regions: four (4) private sector representatives, namely: one each 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 livestock/poultry
industry: and two (2) distinguished scientists from the public and private
sectors,

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 Regional Executive Director who represents the DA-RFU
where com is a major crop and the four (4) 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 PhilCorm
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 and members of the Board shali receive per diem,
as ihe 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 quarter or as
often as the exigencies of the service demand. The presence of the Chair
or the Vice-Chair 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.

SEC. 8. Powers and Functions of the Board The Board shall exercise the
following powers and functions:

a) To adopt 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 operations and management of the Institute in
accordance with its purposes and objectives and in line with BAR
research planning and monitoring procedures;

¢) To approve the PhilCorn’s organizational structure and staffing
pattern, operating 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
other terms and conditions of service, including promotion systems similar
to those in the SUCs and DOST as well as life and medical insurances and
retirement schemes or benefits for all officers and employees of the
Institute, upon recommendation of the Executive Director;

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 such committee or committees and appoint the members
thereof, as may be necessary and proper for the management of the
Institute 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.

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, based on the
findings of a Search Committee duly organized and commissioned for
such purpose,

a) The Executive Director shall serve for a term of five (5) years subject
to 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.


b) The Executive Director shall be assisted by such Deputy Executive
Directors, Division Heads, Program Directors, and Branch Station Managers
as the Board may determine to carry out the purposes and objectives of
the Institute.

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 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 for development,
technology sharing programs, training and extension, upgrading of
scientists and staff of the Institute and, in general, administer and direct
the management, operation, and transparent, corrupt free administration
of the PhilCorn;

b) 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
regulations that are promulgated or adopted by the Board: and

d) To exercise such other powers and functions and performs such
other duties 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
Managers in pursuing interagency activities and participation of the
national R&DE network. The TAC shall be composed of not more than nine
{9} members, or as the Board may designate, who are heads,
representatives, or experts of agencies, government or private, that are
actively involved in any critical aspect of corn research, dryland-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 to achieve the goals and objectives of Phil Corn.


SEC. 12. Services of Government Personnel. The PhilCorn may, for the
purpose of its research, development, training, and extension activities,
obtain and secure the services of scholars, scientists, technical, extension,
and communication personnel of any unit, experiment stations, institutes,
and centers of the Department of Agriculture, University of Southern
Mindanao, University of the Philippines Los Banos, Central Mindanao
University, Mariano Marcos State University, Isabela State University, and
other agencies and universities of the national government. 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 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 SUCs, the Department of Agriculture, and
of the national govemment engaged, directly or indirectly, in activities
that relate to agriculture, rainfed based farming system. com production
or development of the corm 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 exempt 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
dryland-based farming systems research and development purposes
provided 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.

C) 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 and development 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 Department of Agriculture the
amount of Four Hundred Million Pesos (P400M) as the initial fund to be
used for its initial operations, including provisions for salary of personnel,
conduct of research and technology promotion, construction of physical
infrastructures, and purchase of equipment. This initial amount shall be
drawn from the DA National Con 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
{K81} in the Annual General Appropriations Act. Furthermore, the Board
shall seek financial support from foreign donors such as JICA, KOICA,
AusAid, USAID, and similar institutions for the establishment and
improvement of PhilCom infrastructures, laboratory facilities, field
experiment station development, and training/scholarship of qualified
personnel.

The annual appropriations herein provided shall be subject to the fiscal
conirol 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 frust fund. and shall be
considered part of the funds automatically released to the PhilCorn.

SEC. 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, to be determined in accordance with
such policies and guidelines as may be approved by the Board.

SEC, 16, 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 PhilCorm.


SEC. 17. Separability Clause. The provisions of this Executive Order 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. 18. Effectivity. This Act shall take effect immediately.

Approved,