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RECEIVED

Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

SEVENTEENTH CONGRESS
Second Regular Session

6132

House Bill No.

Introduced by Rep. JOSE T. PANGANIBAN, JR.
and Rep. NAPOLEON S. DY

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

EXPLANATORY NOTE

Com or maize is second to rice as the most important crop being produce by Filipino
farmers in the Philippines with one-third of the farmers or roughly around 1.8 million farmers
depends on maize as their major source of livelihood. White com is the major substitute staple
food in period of rice shortage especially in rural areas. In fact, 20 percent of Filipinos depends
‘on corn as their staple. Yellow corn is the primary source of feeds for the Philippines’ animal
industry and is being used by manufacturing sector. The demand for both maize (white and
yellow) for human consumption, animal feeds and industrial uses have significantly increase due
to high demand of the growing population and the major expansion of livestock and poultry
industry and the rapid growth in the emerging industrial and bio-energy programs designed to
augment the imports of fossil based fuel energy.

The proposed measure seeks to establish the Philippine Corn Research Institute
(PHILCORN) that shall:

1. unify, coordinate, fund, implement and strengthen all research and development
in the corn industry as well as manpower training and extension of technologies
on corn based farming systems for increase yield intended for human
consumption, feeds, forage, industrial and bio-energy uses including
technologies for crop production in lowland, upland and marginal farm areas
across the country.


2. Improve technology in farmers’ yield and livelihood of poor farmers to cope up
with the advent of globalization and climate change.

3. To insure adequate and stable supply of corn both in domestic and international
demand,

In view of the above premises, the approval of this bill is earnestly sought.

*ANGANIBAN, JR.
Partylist ANAC-IP


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

SEVENTEENTH CONGRESS
Second Regular Session

House Bill No. 6132

Introduced by Rep. JOSE T. PANGANIBAN, JR.
and Rep. NAPOLEON S. DY

AN ACT
ESTABLISHING THE PHILIPPINE CORN 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 Corn Research
Institute Act.

SEC. 2. Philippine Corn Research Institute. The Philippine Com Research Institute,
hereinafter referred to as PhilCorn, is hereby established as a body corporate attached to the
Department of Agriculture (DA) to modemize the corn industry and consequently improve the
livelihood and household income of resource-poor corn farmers in the rainfed, upland, and
dryland 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

SEC. 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 com research and extension, modemize
production and utilization as well as industrial processing of cor 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;

©) To improve the livelihood and economic conditions of small-scale and resource-poor
farmers who are growing com after rainfed rice as well as in upland and dryland farming
ecosystems;

d

To work closely with regulatory agencies such as BPI (i.e. National Seed Quality Control
Laboratory, NSQCL; Quarantine Division, and National Seed Industry Council, NSIC),
Bureau of Agriculture and Fisheries Standards (BAFS), and private stakeholders (ie
PhilMaize) and NGOs in the collection, conservation, and utilization of endemic or
traditional corn varieties as well as in the experimentation, planting, and monitoring of
com hybrid and genetically engineered varieties;

°)

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 com
improvement and development, import and export volumes, and develop strong linkages
among stakeholders in promoting the national corn industry;

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;

8)

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 (PCAARRD), State
Colleges and Universities (SCUs), and the private sector.

SEC. 4. Principal and Regional Offices. The PhilCorn shall have its principal office at the
Isabela State University, Main Campus, Echague, Isabela 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
com and 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) Unify, Plan, fund, conduct, monitor, and evaluate com research, development, and
technology promotion in different scientific and technological fields and programs,
including but not limited to the following thrusts: (1) germplasm collection, conservation,
breeding, and biotechnology; (2) natural resources management, watershed conservation,
drought adaptation and mitigation; (3) com engineering, farm mechanization, and
postharvest management; (4) pest surveillance, early warning system, integrated pest
management, and biological control methods; (5) socio-economics, impact assessment,
and policy advocacy; (6) technology packaging and demonstration, promotion and
deployment, training and communication; (7) processing and industrial-chemical
products development; and (8) corn-based farming systems, farm management
improvement, and experiment station development.

b)

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

©)

Develop technologies suitable for the rainfed, upland, and dryland agro-ecosystems that
will maximize the productivity and quality of locally grown corn and corn-based crops
while also reducing production costs and ensuring long-term and sustainable corn and
corn-based production systems through genetic improvement and environmental
resources and conservation measures;

) Enhance income of corn farmers by developing suitable corn-based crops and _ livestock
farming systems aswell as_—_crop rotations where applicable; value-adding
com technologies including on-farm verification, processing, packaging, marketing, and
promotion of economically viable technologies as well as entrepreneurial skills, giving
emphasis on those aspects necessary for group endeavors of small-scale farmers,
cooperatives, and seed growers;

©)

Develop databases needed in the identification and preparation of necessary policy
recommendations towards efficient, highly productive and competitive corn industry and
com-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 corn and com-
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

5)


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 PhilCorn 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;

1)

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, or support to farmer entrepreneurial activities;

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;

©)

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 its
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

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 PhilCorn.


SEC. 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:
Executive Director of the Philippine Council for Agriculture, Aquaculture, Forestry, and
Natural Resources Research and Development (PCAARRD) of the Department of
Science and Technology (DOST) who will act as Co-Chairperson; Director of the Bureau
of Agricultural Research (BAR) who will act as Vice-Chairperson; Regional Executive
Director (RED) representing the DA Regional Field Offices (DA-RFOs); Undersecretary
of the Department of Budget and Management (DBM); Director of the Agriculture
Division of the National Economic and Development Authority (NEDA); Director of the
DA-Philippine Council for Agriculture and Fisheries (DA-PCAF); two (2) University
Presidents from the State Universities and Colleges (SUCs) representing major com
producing and com-based agriculture regions; four 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 com research and seed production, and the livestock/poultry industry; and 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.

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-RFOs where com 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.

c) 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.

d

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

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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.

SEC. 8. Powers and Functions of the Board. The PhilCorn 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;

1)

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 operation
and management of the PhilCorn in accordance with its purposes and objectives and in
line with research planning and monitoring policies and procedures of PCAARRD and
BAR;

5

To approve the PhilCorn’s organizational structure and staffing pattern, operation 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 support to staff, and other terms and
conditions of service, including promotion systems similar to those in the State
Universities and Colleges (SUCs) 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;

©)

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 PhilCorm or for the attainment of its
purposes and objectives; and

g) 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 PhilCor, or
as may be delegated by the Secretary of Agriculture or any competent authority through
the Board of Trustees.

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 of the Trustees (BOT), 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 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.

b)

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 PhilCom.

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, 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;

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;

d)

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

e) 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 Directors or Managers in pursuing interagency activities
and participation of the national RD&E 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
com 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.

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 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.

SEC. 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 SUC, 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

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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.

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 of the PhilCorn for CY 2017 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 (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 (KBI) in the Annual General Appropriations Act. Furthermore, the PhilCorn Board of
Trustees shall seek financial support from foreign donors such as Japan International Japan
Agency (JICA), Korean International Cooperation Agency (KOICA), Australian Agency for
International Development (AusAID), United States Agency for International Development
(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.

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,

see


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.

SEC. 16. Auditor. The Chairperson of the Commission on Audit (COA) shall be the Ex-
Officio Auditor of the PhilCorn, For this purpose, he may appoint a representative who shall be
the auditor of the PhilCorn, together with the necessary personnel to assist the COA
representative in the performance of his duties.

SEC. 17. 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.

SEC. 18. 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.

SEC. 19. 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.

Sec. 20. Effectivity. This Act shall take effect immediately.

Approved.

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