SIXTEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
Second Regular Session 
) 
) 
) 
SENATE 
"15 
MAR -2 P3:51 
Senate Bill No. ___ 2_6_7_5-
(In Substitution of Senate Bill Nos. 455, 2126, and 2467, 
and Proposed Senate Resolution No. 30) 
Prepared and submitted jointly by the Committees on Agriculture and Food, and Finance, 
with Senators Recto, Villar, and Aquino IV as authors thereof 
AN ACT 
DECLARING THE COCONUT LEVY ASSETS AS A TRUST FUND, PROVIDING 
FOR 
ITS 
MANAGEMENT 
AND 
UTILIZATION, 
AUTHORIZING 
THE 
PRIVATIZATION AND MANAGEMENT OFFICE TO DISPOSE THE COCONUT 
LEVY ASSETS, AND FOR OTHER PURPOSES 
Be it enacted by the Senate and the House of Representatives of the 
Philippines in Congress assembled: 
1 
SECTION 1. Short Tit/e. - This Act shall be known as the "Coconut Farmers 
2 
and Industry Development Act of 2015". 
3 
SEC. 2. Dec/aration of Policy. - It is hereby declared the policy of the State 
4 
to consolidate the benefits due to coconut farmers, especially the poor and 
5 
marginalized, under various statutes and to expedite the delivery thereof in order to 
6 
attain a balanced, equitable, integrated and sustainable growth and development of 
7 
the coconut industry. 
8 
9 
Definition of Terms 
10 
SEC. 3. Definition of Terms. - The following terms shall mean: 
11 
(a) "CIIF" shall refer to the Coconut Industry Investment Fund created by virtue 
12 
of Presidential Decree 1468; 
13 
(b) "CIIF - Oil Mills Group" shall refer to the CIIF companies, namely, Southern 
14 
Luzon Coconut Oil Mills; Cagayan de Oro Oil Co. Inc.; lligan Coconut Industries, Inc.; 
15 
San Pablo Manufacturing Corp.; Granexport Manufacturing Corp.; and Legaspi Oil 
16 
Co, Inc.; 


1 
(C) "CIIF Holding Companies" shall refer to the fourteen (14) holding 
2 
companies; namely: Anglo Ventures Corporation; ACS Investors, Inc.; Arc Investors, 
3 
Inc.; AP Holdings, Inc.; Fernandez Holdings, Inc.; First Meridian Development, Inc.; 
4 
Randy Allied Ventures, Inc.; Rock Steel Resources, Inc.; Roxas Shares, Inc.; San 
5 
Miguel Officers Corp., Inc.; Soriano Shares, Inc.; Te Deum Resources, Inc.; Toda 
6 
Holdings, Inc.; and Valhalla Properties Limited, Inc.; 
7 
(d) "CIIF SMC Block Shares" shall refer to the 33,133,266 shares of stock in 
8 
San Miguel Corporation (SMC), sequestered by the PCGG in April 1986 and 
9 
representing 31 % of the total outstanding capital stock of SMC; 
10 
(e) "Converted SMC 1 Preferred Shares" shall refer to that portion of the CIIF 
11 
SMC Block Shares covering 753,848,312 preferred shares of stock in SMC and 
12 
representing 24% of the outstanding capital stock of SMC; 
13 
(f) "Coconut Levy Assets" shall refer to any and all kinds of property, whether 
14 
real or personal, tangible or intangible, wherever situated, which have been acquired 
15 
through the Coconut Levy Funds as defined in this Section, including those assets 
16 
that may be recovered in favor of the government, as well as the fruits, or income 
17 
therefrom, including those acquired in exchange or substitution thereof, 
18 
This shall include, among others, the following: 
19 
i. 
The 72.2% shares of United Coconut Planters Bank's (UCPB's) 
20 
outstanding capital stock; 
21 
ii. The CIIF - Oil Mills Group; 
22 
iii. The CIIF Holding Companies; and 
23 
iv. The CIIF SMC Block Shares; 
24 
(g) "Coconut Levy Funds" shall refer to various funds generated from levies, 
25 
taxes, charges, and other fees exacted or imposed pursuant to or in connection with 
26 
the sale of copra rececada or its equivalent in other coconut products, and collected 
27 
for the most part from coconut farmers, planters, millers, refiners, processors, 
2 


1 
exporters, desiccators and other end-users of copra rececada or its equivalent in 
2 
other coconut products. 
3 
Specifically, the term shall refer to any or all of the following: 
4 
i. 
The Coconut Investment Fund created under Republic Act No. 6260; 
5 
ii. The Coconut Consumers Stabilization Fund, later renamed as the Coconut 
6 
Industry Stabilization Fund, created under Presidential Decree No. 276; 
7 
iii. The Coconut Industry Development Fund created under Presidential 
8 
Decree No. 582; 
9 
v. The Coconut Industry Investment Fund created under Presidential Decree 
10 
No. 1468; and 
11 
vi. The Coconut Reserve Fund under Presidential Decree No. 1468 and 
12 
Presidential Decree No. 1842. 
13 
(h) "Committee" shall refer to the Coconut Farmers and Industry Trust Fund 
14 
Committee created under Section 11 of this Act; 
15 
(i) "PMO" shall refer to the Privatization and Management Office organized 
16 
under Article III of Executive Order No. 323 (S. 2001); 
17 
G) "PCA" shall refer to the Philippine Coconut Authority, created under 
18 
Presidential Decree 232 (S. 1973) as amended by Presidential Decree 1468 (S. 
19 
1978); 
20 
(k) "PCGG" shall refer to the Presidential Commission on Good Government, 
21 
created under Executive Order No.1 (S. 1986); 
22 
(I) "Plan" shall refer to the Coconut Farmers and Industry Development Plan, 
23 
to be prepared under Section 17 of this Act; 
24 
(m)"President" shall refer to the President of the Republic of the Philippines; 
25 
(n) "Trust Fund" shall refer to the Coconut Farmers and Industry Trust Fund 
26 
declared under Section 6 of this Act; 
3 


1 
(0) "Trust Income" shall refer to the income, interest earnings, and other 
2 
monetary benefits, realized by and accruing to the Trust Fund or any portion thereof; 
3 
and 
4 
(p) "Trust Principal" shall refer to (i) the initial Trust Principal composed of the 
5 
proceeds from the redemption of the Converted SMC 1 Preferred Shares, dividends 
6 
declared, paid, or issued on the Converted SMC 1 Preferred Shares, and all income 
7 
or interest derived therefrom as of the effectivity of this Act; and any other cash 
8 
Coconut Levy Asset deposited in the Bureau of Treasury and UCPB as administrator 
9 
of the CIIF; (ii) any and all proceeds of privatization of the Coconut Levy Assets 
10 
remitted thereto by the Privatization and Management Office, and (iii) proceeds of 
11 
privatization of any or all properties or assets conveyed by any person, group or 
12 
entity to the Committee, from time to time, as provided in Section 8 hereof. 
13 
II 
14 
Audit and Reconveyance of Coconut Levy Assets 
15 
SEC. 4. Audit and Inventory of Coconut Levy Assets. - Upon the effectivity 
16 
of this Act, the Commission on Audit (COA), in coordination with the PCA and the 
17 
PCGG, shall conduct a complete accounting and inventory of the Coconut Levy 
18 
Assets. The audit shall determine and ascertain the amount, value, description and 
19 
nature of such funds, properties, assets, records, choses in action, and other rights, 
20 
claims, or causes of action pertaining thereto. Likewise, the COA shall conduct an 
21 
audit of all investments, disbursements or expenditures arising from Coconut Levy 
22 
Funds. 
23 
Within one hundred twenty (120) days from the effectivity of this Act, the COA 
24 
shall submit to the Committee its audit report, together with a complete list of 
25 
Coconut Levy Assets and their valuation, and the empirical basis and the 
26 
methodologies employed for the said valuation. 
27 
The Committee shall, within fifteen (15) days from its receipt of the audit 
28 
report, publish the same in at least two (2) newspapers of national circulation. 
4 


1 
Nothing herein shall be construed as preventing the PMO from procuring a 
2 
third-party appraisal of any of the Coconut Levy Assets prior to or in the course of 
3 
preparing the privatization or disposition plans for the said assets. 
4 
SEC. 5. Reconveyance of Coconut Levy Assets. - Immediately upon the 
5 
effectivity of this Act, the PCGG, the government representatives to the boards of 
6 
sequestered/surrendered corporations, and any government agency or person 
7 
having any Coconut Levy Asset in its administration, authority, custody or control, 
8 
shall perform or cause the performance of the following: 
9 
(1) reconvey title to the Republic of the Philippines over the Coconut Levy 
10 
Assets; 
11 
(2) deliver all stock certificates and other evidence of ownership to the Bureau 
12 
of Treasury for safekeeping; and 
13 
(3) deposit all cash Coconut Levy Assets in the Trust Fund. 
14 
III 
15 
Coconut Farmers and Industry Trust Fund 
16 
SEC. 6. The Coconut Farmers and Industry Trust Fund. - The Coconut 
17 
Levy Assets are hereby declared a trust fund to be known as the "Coconut Farmers 
18 
and Industry Trust Fund," herein referred to as the "Trust Fund," which shall be 
19 
capitalized, managed, utilized and accounted for in the manner provided in this Act. 
20 
SEC. 7. Purpose of the Trust Fund. -
The Trust Fund shall be used 
21 
exclusively for the development of the coconut industry for the ultimate benefit of 
22 
coconut farmers and farm workers. 
23 
SEC. 8. Capitalization of the Trust Fund. -
The proceeds from the 
24 
redemption of the Converted SMC 1 Preferred Shares, dividends declared, paid, or 
25 
issued on the Converted SMC 1 Preferred Shares, and all income or interest derived 
26 
therefrom as of the effectivity of this Act; and any other cash Coconut Levy Asset 
27 
deposited in the Bureau of Treasury and UCPB as administrator of the CIIF shall 
28 
form part of the initial capital of the Trust Fund. For this purpose, any provision of law 
5 


1 
to the contrary notwithstanding, the BTr and UCPB shall directly release any and all 
2 
monies to the Trust Fund. 
3 
The Trust Fund shall thereafter be augmented with all proceeds of 
4 
privatization/disposition of the Coconut Levy Assets remitted directly thereto by the 
5 
PMO in accordance with this Act, and any and all forms of income, interests, 
6 
earnings, yields, 
or any monetary benefit derived therefrom prior to the 
7 
privatization/disposition of these Coconut Levy Assets. 
8 
Nothing in this Act shall be understood to prevent or prohibit any person, 
9 
group or entity from conveying to the Committee other properties and/or additional 
10 
assets either for the use of the coconut industry, or for purposes of privatization, in 
11 
which case, the proceeds of such privatization shall form part of the Trust Fund. 
12 
No portion of the Trust Fund shall accrue to the general fund of the National 
13 
Government. 
14 
SEC. 9. Management and Utilization of the Trust Fund and Trust Income. 
15 
- The Trust Principal shall be preserved and maintained at all times and, for this 
16 
purpose, shall be invested only in Philippine government securities. Only the Trust 
17 
Income shall be used for the implementation of the Plan and for the payment of 
18 
expenses allowed under this Act: Provided, That, for purposes of the initial 
19 
implementation of the Plan and its programs and projects, and to fund the allowable 
20 
expenses under this Act, pending the accrual of or availability of the Trust Income, 
21 
the Committee is hereby authorized to use a portion of the Trust Principal which shall 
22 
in no case exceed five percent (5%) of the amount constituting the initial capital of the 
23 
Trust Fund. 
24 
For the initial year, the amount of Fifty Million Pesos (PhP50,OOO,OOO.OO), to 
25 
cover expenses of the Committee in connection with the discharge of its 
26 
responsibilities, and expenses for the conduct of an audit and inventory of Coconut 
27 
Levy Assets, and formulation of the Plan, is hereby authorized to be charged against 
28 
the five percent (5%) portion of the initial capital of the Trust Principal permitted to be 
6 


1 
used. For the succeeding years, not more than three percent (3%) of the Trust 
2 
Income accruing during the immediately preceding year shall be used to cover for 
3 
annual expenses of the Committee. If the expenses in any year are less than the 
4 
maximum amount permissible, the difference shall not be availed of as additional 
5 
expenses in the following years. 
6 
To fund the expenses of the PMO for the first year in the discharge of its 
7 
functions for the privatization or disposition of the Coconut Levy Assets, the 
8 
Committee is hereby authorized to approve advances and/or reimbursements to the 
9 
PMO in the amount of not more than Fifty Million Pesos (PhP50,OOO,OOO.OO), which 
10 
shall likewise be charged against the five percent (5%) portion of the initial capital of 
11 
the Trust Fund. 
12 
Temporary investment of the Trust Principal shall not be construed as 
13 
disbursement of funds. 
14 
All fund releases approved by the Committee shall be released directly to the 
15 
implementing agencies. 
16 
SEC. 10. Designation of the Bureau of Treasury as Depository of the 
17 
Trust Fund. - Any law to the contrary notwithstanding, the Bureau of Treasury is 
18 
hereby designated as the depository of the Trust Fund, which shall (i) invest the Trust 
19 
Fund in Philippine govemment securities; (ii) release funds directly to the 
20 
implementing agencies upon the instruction of the Committee; (iii) account for the 
21 
utilization and investment of the Trust Fund and (ii) exercise the tasks, functions and 
22 
duties determined and established by the Committee. 
23 
IV 
24 
Coconut Farmers and Industry Trust Fund Committee 
25 
SEC. 11. Creation of the Coconut Farmers and Industry Trust Fund 
26 
Committee. - There is hereby created the Coconut Farmers and Industry Trust Fund 
27 
Committee which shall be attached to the Office of the President. 
28 
The Committee shall have the following powers and functions: 
7 


1 
(1) Direct, supervise and coordinate the Implementation of the Coconut 
2 
Farmers and Industry Development Plan; 
3 
(2) Approve disbursements from the Trust Income and from the five percent 
4 
(5%) of the initial capital of the Trust Principal; 
5 
(3) Arrange for the transfer of the Coconut Levy Assets to the National 
6 
Government and/or to the Privatization and Management Office for privatization or 
7 
disposition; 
8 
(4) Establish guidelines for the privatization or disposition of the Coconut Levy 
9 
Assets by the PMO; 
10 
(5) Approve, or disapprove, on behalf of the National Government and without 
11 
need of any further approval by, or other action from any other govemment institution 
12 
or agency, the sale or disposition of the Coconut Levy Assets identified for disposition 
13 
or privatization, in each case on terms and to purchasers recommended by the PMO: 
14 
Provided, That neither the Committee itself, nor any of its members, shall undertake 
15 
the marketing of any such assets, participate in the negotiation for their sale, or make 
16 
the sale itself, nor yet bring about any situation which may give rise to a conflict of 
17 
interest; 
18 
(6) Exercise on behalf of the National Government all rights and incidents of 
19 
ownership with respect to such assets, including the right to vote, whether directly or 
20 
through duly authorized nominees, shares of stock held in the name of the National 
21 
Government; 
22 
(7) Approve the financial requirements of the PMO in relation to its functions 
23 
set forth in this Act, including its annual budget for operations, management and 
24 
disposition of the Coconut Levy Assets transferred and entrusted under its care; 
25 
which shall not be more than three percent (3%) of the Trust Income of the preceding 
26 
year; 
27 
(8) Appoint, transfer, remove for cause, personnel of the Committee, and fix 
28 
their remuneration in accordance with the Salary Standardization Law; and 
8 


1 
(9) Exercise such other incidental powers and functions as may be 
2 
necessary to attain the objectives of this Act. 
3 
SEC. 12. Composition. - The Committee shall be composed of the Secretary 
4 
of Agriculture as Chairman, the Secretary of Finance as Vice-Chairman, the Director-
s 
General of the National Economic and Development Authority, the Administrator of 
6 
the Philippine Coconut Authority, and five (5) representatives from the coconut 
7 
farmers sector. 
8 
The five (5) representatives from the coconut farmers sector shall be 
9 
appointed by the President from a list of nominees, containing at least eight (8) 
10 
names, submitted by the PCA, pursuant to a selection process under Section 24 of 
11 
this Act. They shall each hold a term of three (3) years, and may be reappointed 
12 
once. Any appointment to fill the vacancy in the Committee arising from death, 
13 
removal, retirement or resignation shall be made only for the unexpired term. 
14 
SEC. 13. Ex Officio Alternates. - The ex officio members of the Committee 
15 
may designate their respective alternates who shall be the officials next-in-rank to 
16 
them and their acts shall be considered the acts of their principals. 
17 
SEC 14. Executive Director of the Committee. -
The President, upon 
18 
recommendation of the Committee, shall appoint an Executive Director who shall 
19 
have the following powers and functions: 
20 
a) Execute, administer and implement the plans and programs approved or 
21 
promulgated by the Committee; 
22 
b) Direct and supervise officials, employees, representatives and agents for 
23 
the Committee; 
24 
c) Prepare an annual report on the activities of the Committee at the close of 
25 
each fiscal year and to submit a copy thereof to the President and Congress; 
26 
d) Keep and maintain official records and reports of the proceedings of the 
27 
Committee; 
9 


1 
e) Administer oaths in all matters falling within the jurisdiction of the 
2 
Committee; and 
3 
f) Exercise such other duties as may be vested by the Committee that are 
4 
consistent with the provisions of this Act. 
5 
SEC. 15. Meetings. - The Committee shall meet as frequently as may be 
6 
necessary and expedient to discharge its responsibilities: Provided, That, it shall 
7 
meet at least once a month. 
8 
The presence of at least a majority of the members of the Committee shall 
9 
constitute a quorum, and the concurrence of a majority of the members present at a 
10 
meeting at which a quorum exists shall be adequate for any decision by the 
11 
Committee: Provided, That, where the matter involves the approval of (i) any 
12 
disposition or privatization proposal involving more than Five Hundred Million Pesos 
13 
(PhP500,OOO,OOO.OO), (ii) any proposed investment involving more than One 
14 
Hundred Million Pesos (PhP100,OOO,OOO.OO), and (iii) the utilization of the Trust 
15 
Income in amounts exceeding Fifty Million Pesos (PhP50,OOO,OOO.OO), the approval 
16 
of at least a majority of the members of the Committee shall be required. 
17 
SEC. 16. Legal Counsel. - The Secretary of Justice shall be the ex-officio 
18 
adviser to the Committee on legal matters. 
~ 
V 
20 
Coconut Farmers and Industry Development Plan 
21 
SEC. 17. Preparation of the Coconut Farmers and Industry Development 
22 
Plan. -
The National Economic and Development Authority, Department of 
23 
Agriculture, Department of Agrarian Reform, Department of Trade and Industry, 
24 
Department of Science and Technology, Department of Energy, Department of Public 
25 
Works and Highways, Department of the Interior and Local Government, and the 
26 
National Anti-Poverty Commission are herein constituted as an ad-hoc committee 
27 
that will prepare the "Coconut Farmers and Industry Development Plan," herein 
28 
referred to as the "Plan." The Director-General of the National Economic and 
10 


1 
Development Authority shall be the Chairman of the ad hoc committee. In the 
2 
preparation of the Plan, the ad-hoc committee shall consult with representatives of 
3 
the coconut industry, including coconut farmers organizations. 
4 
The Plan shall set the directions and policies for the rehabilitation and 
5 
development of the coconut industry. 
6 
In the formulation of the Plan, the Committee shall be guided by the following 
7 
objectives: 
8 
a) increased farm productivity and incomes of coconut farmers; 
9 
b) establishment of coconut-based enterprises 
10 
c) rehabilitation of the coconut industry towards global competitiveness; and 
11 
d) poverty alleviation and social equity. 
12 
The Plan shall include a national program for (a) coconut productivity, 
13 
including intercropping and livestock raising; 
(b) community-based coconut 
14 
enterprises, including integrated processing of coconut products and downstream 
15 
products; (c) coconut farmers organization and development; and (d) social 
16 
protection that directly benefit coconut farmers and farm workers, such as, but not 
17 
limited to, medical and/or health and life insurance services, educational scholarships 
18 
for deserving students coming from families of coconut farmers, or beneficiaries of 
19 
the Coconut Levy Funds, in case these social protection programs are not funded by 
20 
an appropriations law or any other special law, or where funding is insufficient. 
21 
For the avoidance of doubt, programs relating to planting, replanting, 
22 
fertilization, research and development, market promotion, farm-to-market roads, and 
23 
direct lending, shall be funded though regular appropriations. 
24 
The Plan shall provide an indicative funding requirement or allocation for the 
25 
implementation of any and all of the programs and projects to be funded by the Trust 
26 
Income, which funding or allocation shall be itemized or broken down on a project-to-
27 
project basis: Provided, That, (i) for projects which are recurring, or to be 
28 
implemented on a regular basis, the allocation shall indicate the annual fund that may 
11 


1 
be required to implement said project; and (ii) for projects that are to be implemented 
2 
or concluded within a period of time, the allocation shall indicate the total fund that 
3 
may be required for the implementation of the whole project, itemized according to 
4 
the phases or stages of said project. 
5 
Within one hundred eighty (180) days from the start of the effectivity of this 
6 
Act, the Plan shall be submitted to the President, through the Committee, for 
7 
approval. Thereafter, the Committee shall approve the disbursements of funds in 
8 
accordance with the provisions of this Act. 
9 
Any amendment to the Plan shall require the approval of the President. 
10 
VI 
11 
Privatization of the Coconut Levy Assets 
12 
SEC. 18. Privatization of the Coconut Levy Assets. - To increase the 
13 
benefits that can be provided to the coconut farmers and enhance the development 
14 
of the coconut industry, all Coconut Levy Assets transferred to the Privatization and 
15 
Management Office shall be privatized or disposed within five (5) years from the 
16 
effectivity of this Act. 
17 
SEC. 19. Additional Mandate of the Privatization and Management Office 
18 
(PMO). - In addition to its powers, duties and functions under Executive Order No. 
19 
323 dated December 6, 2000, the PMO, shall, for and in behalf of the National 
20 
Govemment, take title to and possession of, conserve, provisionally manage, and 
21 
dispose of the Coco Levy Assets. 
22 
In the discharge of its mandate, the PMO is hereby empowered to (i) formulate 
23 
and implement the marketing and disposition program of the Coco Levy Assets; (ii) 
24 
execute and deliver, on behalf of the National Government, deeds of sale, contracts, 
25 
trust instruments, and other legally operative documents as may be necessary or 
26 
appropriate to convey title to, take possession of, and conserve, such assets; (iii) 
27 
engage external expertise as may be necessary in the fulfillment of its tasks under 
12 


1 
this Act; and (iv) adopt internal rules and regulations in relation to the marketing and 
2 
disposition of the Coconut Levy Assets. 
3 
Any and all sales and other modes of privatization or disposition shall not be 
4 
considered final unless and until approved by the Committee. 
5 
SEC. 20. Powers of the Privatization and Management Office. - The PMO 
6 
shall prepare the privatization plans and policies of the Coconut Levy Assets 
7 
transferred to it. It is empowered to enter into sales through public bidding, 
8 
negotiated sale, lease, or any form of divestment or transmission of rights over the 
9 
Coconut Levy Assets, including a partnership with the private sector in the 
10 
management or operation of these Coconut Levy Assets prior to actual sale or 
11 
disposition. 
12 
Prior to the implementation of any privatization plan, the PMO shall have the 
13 
following powers: 
14 
(i) 
require anyone or more of the subject corporations to adopt and 
15 
implement cost-reduction measures to enhance the viability, and therefore the 
16 
disposability of such corporations, to potential buyers, including measures requiring 
17 
personnel retrenchment plans or other forms of corporate downsizing; 
18 
(ii) direct anyone or all of the subject corporations to submit to the PMO, 
19 
within fixed time-tables, such reports and information as the PMO may require in the 
20 
exercise of its ownership, administrative, and disposition over such corporations or 
21 
their assets; and 
22 
(iii) cause the subject corporations to undergo merger, consolidation, spin-off, 
23 
or other corporate acts of reformatory nature as it may deem necessary or desirable 
24 
to expedite the disposition and privatization under this Act. 
25 
In all such cases, no corporate measure shall be implemented without the 
26 
approval of the Committee. 
13 


1 
Nothing herein shall be construed as authorizing the Committee or the PMO to 
2 
rehabilitate, or allow reinvestments of, any and all Coconut Levy Assets transferred to 
3 
the National Government. 
4 
SEC. 21. Committee to Determine Transfer Value. - The Committee is 
5 
hereby vested with full and complete powers and prerogatives to determine transfer 
6 
values and related valuations at which the Coconut Levy Assets shall be transferred 
7 
and conveyed to the PMO pursuant to the mandate of this Act and upon reasonable 
8 
consultation with the COA or a third-party appraiser: Provided, That any valuation 
9 
approved by the Committee for purposes of the transfer to the PMO shall not be 
10 
deemed a condonation, waiver, or extinguishment of any obligation by any third party 
11 
whose vested rights may be impaired by such transfer. 
12 
SEC. 22. Remittance of Proceeds of Privatization. - Any provision of law to 
13 
the contrary notwithstanding, all proceeds or receipts from the sale of Coconut Levy 
14 
Assets, except portions thereof for reimbursable custodianship and operational 
15 
expenses or such amount approved by the Committee to be retained by the PMO, 
16 
shall be remitted directly to the Trust Fund. 
17 
SEC. 23. Reporting Requirements. - The Committee shall, on a semi-annual 
18 
basis, submit to the President and to Congress a report on the status of disposition of 
19 
the Coconut Levy Assets, which shall include, among others, a description of the 
20 
individual assets disposed of, their purchasers thereof, .the consideration received 
21 
therefor, and the agreed terms of payment. 
22 
The PMO shall, within three (3) months following the closure of books at the 
23 
end of each fiscal year, submit a comprehensive annual report duly approved or 
24 
endorsed by the Committee, to the President and Congress on the status of its 
25 
privatization efforts and its disposition program for the Coconut Levy Assets, which 
26 
shall include the items described in the immediately preceding paragraph. 
D 
VII 
28 
Miscellaneous 
14 


1 
SEC. 24. Selection of Representatives of the Coconut Farmers Sector. -
2 
Within thirty (30) days following the effectivity of this Act, the PCA shall promulgate a 
3 
selection process of nominees as representatives of the coconut farmers sector in 
4 
the Committee. The nominees shall be validated and shortlisted from the coconut 
5 
farmers registry of the PCA: Provided, That the PCA shall first complete its coconut 
6 
farmers registry before the selection process can commence. The list of nominees 
7 
shall be submitted to the President not later than sixty (60) days from the start of the 
8 
selection process. 
9 
SEC. 25. Applicability of Republic Act No. 10149 and Executive Order 
10 
323. -
In case of doubt in the interpretation of the provisions of this Act, the 
11 
provisions of Republic Act No. 10149, otherwise known as the "GOCC Governance 
12 
Act of 2011," and Executive Order 323, entitled "Constituting an Inter-Agency 
13 
Privatization Council (PC) and Creating A Privatization and Management Office 
14 
(PMO) Under The Department of Finance For The Continuing Privatization of 
15 
Government Assets and Corporations," except Sections 2 and 3 of Article IV of E. O. 
16 
323, shall apply suppletorily. 
17 
SEC. 26. Implementing Rules and Regulations. - Within ninety (90) days 
18 
from the date of effectivity of this Act, the Committee, in consultation with the PMO, 
19 
shall formulate and promulgate the rules and regulations for the proper 
20 
implementation of this Act. 
21 
SEC. 27. 
Congressional Oversight. -
The Congressional Oversight 
22 
Committee on Agricultural and Fisheries Modernization (COCAFM) shall exercise 
23 
oversight on the implementation of this Act. 
24 
SEC. 28. Separability Clause. - If any provision of this Act is declared invalid 
25 
or unconstitutional, the other provisions not affected by such declaration shall remain 
26 
in full force and effect. 
15 


1 
SEC. 29. Repealing and Amendatory Clause. - All laws, executive and 
2 
administrative orders, rules and regulations inconsistent with this Act are hereby 
3 
repealed or amended accordingly. 
4 
SEC. 30. Effectivity Clause. - This Act shall take effect fifteen (15) days after 
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its complete publication in the Official Gazette or in two (2) newspapers of general 
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circulation. 
Approved, 
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