Fifteenth Congress
First Regular Session

HOUSE BILL No.__ 674

Introduced.by Honorable Hadjiman S. Hataman-Salliman

EXPLANATORY NOTE

‘This bill seeks to provide for the creation of the Philippine Rubber
Industry Development Authority.

The Philippines boasts of fertile grounds for growing rubber trees. In
fact, the country is proven to be a producer of class A latex which are of
world class quality. The entry of multinational corporations in large-scale
plantation development led to the increased cultivation of rubber trees
throughout Mindanao, particularly in Basilan, Zamboanga del Sur and
Cotabato Provinces.

Based on the recent data from the Department of Agriculture, it
reveals that more than fifty C50%) of the country’s rubber production area is
found in Western Mindanao dubbed as the “Rubber Region of the
Philippines.” Notwithstanding the fact that rubber is a highly marketable
cash crop, however, latex production is relatively low due to lack of modem
technology and wanting in control and regulating mechanism of the industry.
The country has not fully taken advantage of the rubber industry’s incredible
potential for bringing about national economic development.

The creation of a rubber industry development authori aimed at
increasing the productivity of the rubber trees and improving further the
quality of the latex materials. It is also hoped that in the process, effective
utilization of the rubber trees will be maximized but likewise regulated. The
approval of this bill will not only improve the country’s rubber industry but
will also promote national development and accelerate progress.

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

S. HATAMAN-SALLIMAN


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Fifteenth Congress
st Regular Session

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HOUSE BILL No. __ 674

Introduced by Honorable Hadjiman S. Hataman-Salliman

AN ACT
ESTABLISHING THE PHILIPPINE RUBBER INDUSTRY
DEVELOPMENT AUTHORITY, DEFINING ITS POWERS AND
FUNCTIONS AND APPROPRIATING FUNDS THEREFOR

Be it enacted by the Senate and House of Representatives of the Philippines in
Congress assembled:

SECTION 1. Short Title. — This Act shall be known as the “Philippine
Rubber Industry Development Act.”

SEC. 2. Declaration of Policy. — Consistent with the objective of the
Government to develop self-reliant industries effectively controlled by
Fiipinos, encourage investments and provide incentives to private enterprise,
promote employment and livelihood opportunities for the poor, ensure well-
balanced ecology in the use of natural resources for industrial purposes, and
liberate poor farmers from the bondage of poverty and hunger and enhance
the rubber industry’s competitiveness, it is hereby declared the policy of the
State to develop the rubber industry in the country to its fullest potential.

Towards this end, the State shall provide the necessary support to rubber


industry development through appropriate services in rubber production,
research, extension and training, financial assistance, marketing and other
support services. It shall prescribe and strictly enforce regulations and quality
control standards needed to safeguard rubber growers and other important
players in the rubber industry, thereby increasing their income and uplifting
their quality of life.

SEC. 3. Rubber Industry Development Authority. — The Rubber
Industry Development Authority (PRIDA) is hereby created to serve as the
country’s rubber development authority. The PRIDA shall be an attached
agency of the Department of Agriculture.

SEC. 4. Powers and Functions. — The PRIDA shall exercise the
following powers and functions:

a) Promulgate and enforce laws, rules and regulations to govern
rubber production, distribution, pricing and marketing;

b) — Support and enhance efforts of rubber planters, processors and
workers in organizing themselves into associations or cooperatives and assist
them in the marketing of their produce;

c) Conduct regular consultations with the rubber workers,

producers, processors, traders and all other sectors involved in the rubber


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industry and design and implement the industry’s monitoring and information
system;

d) Design and administer a package of incentives to enhance
linkages with other government agencies and promote private sector
investments for the development and promotion of the rubber industry;

e) Establish, operate and maintain research testing and experimental
stations in the areas of harvesting, production, processing and marketing, and
disseminate recommended production technologies to ensure strong and
effective linkage between research and extension; and

f) Improve the quality of life of rubber workers, and planters
through rubber-growing in the areas suitable for the rubber trees;

g) Institute an orderly system for a stable, sufficient and balanced
production of rubber for local consumption and strategic reserves;

h) Establish and maintain such trading and marketing schemes that
will ensure stabilized prices at a level reasonably profitable to rubber
producers;

i) Undertake scientific researches as may be needed in the
formulation of policies pertaining to agricultural, industrial, marketing and

socio-economic aspect of the rubber industry;


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aD)

Coordinate and integrate all efforts of various agencies of

government and provide general direction for the steady and orderly

development of the industry; and

k)

Exercise all powers and functions as may be necessary or

incidental to attain the policy and objectives under this Act.

SEC. 5. Board of Directors. — The PRIDA shall be governed by a

Board of Directors which shall be composed of the following:

a)
b)
°)
d)
e)
f)

Secretary of Agriculture, as ex-officio chairman;
Under-secretary of Agriculture;

Executive Director of the Bureau of Agricultural Research;
Executive Director of the Bureau of Plant Industry;
Administrator of the PRIDA; and

One (1) representative from the rubber producers and one(1)

representative from rubber processors, as members , to be appointed by the

President of the Philippines upon recommendation of the Secretary of

Agriculture, for a term of three(3) years.

‘The Board of Directors shall act as the policy-making body of PRIDA

to formulate policies, promulgate regulations and prescribe rules to attain

PRIDA’s purposes and objectives.


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SEC. 6. Term of Office. — Unless sooner removed for cause, appointed
members of the Board of Directors shall hold office for a period of two (2)
years from the date of their appointments.

SEC. 7. Administrator. — There shall be an Administrator who shall
function as the chief executive officer of the PRIDA. The Administrator shall
be appointed by the President of the Philippines upon the recommendation of
the Secretary of Agriculture. He shall be assisted by two (2) Deputy
Administrators who shall be appointed by the Board of Directors upon the
recommendation of the Secretary of Agriculture.

‘The Board of Directors shall determine and create the organizational
structure of PRIDA to achieve its objectives.

SEC. 8. Prohibited Acts. — For purposes of this Act, the following are
expressly prohibited:

a) Importation of latex during the harvest season or in any other
period of the year without the resolution of approval by the Board of
Directors; and

b) — Hoarding of latex to deliberately control its commercial price.

SEC. 9. Penalties. — Any person who violates the provisions of the
preceding section shall, upon conviction, be punished with a fine of not less

than Fifty thousand pesos (P50,000.00) but not more than One hundred


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thousand pesos (P100,000.00) or an imprisonment of not less than six months
but not more than two (2) years, or both such fine and imprisonment at the
discretion of the court.

If the offender is a corporation, partnership or association or any other
juridical person, the penalty shall be imposed on the president, treasurer or
any officer responsible for the violation. If the offender is an alien, he shall,
in addition to the penalties herein prescribed, be deported immediately
without further proceedings in the Bureau of Immigration.

SEC. 10. Transitory Provision. — Upon the approval of this Act, all
initiatives and operational matters relative to rubber research, production,
processing, marketing and trade regulation by the Department of Agriculture
and its attached agencies shall be transferred to PRIDA with the necessary
funding requirements.

The new position structure and staffing pattern of PRIDA shall be
approved and implemented by the Board of Directors within one hundred
twenty (120) days from the approval of this Act, and the authorized positions
created shall be filled by the Administrator.

SEC. 11. Appropriations. — For the effective implementation of this
Act, the sum of Twenty Million Pesos (P20,000,000.00) is hereby

appropriated from the funds of the National Treasury. Thereafter, such


amount as may be necessary for the continuous implementation of this Act
shall be included in the annual General Appropriations Act.

SEC. 12. Other Sources of Funds. — The following are other sources
of funds for the operations of PRIDA:

a) Collections from tariff fees on imported latex and substitutes
from other countries;

b) A fixed percentage of at least 10% generated out of the taxes
paid by producers and processors in the Philippines;

c) A fixed percentage of at least 15% of the VAT collections on
finished products of which latex is the main ingredient; and

d) Other funds appropriated thereof by the Government of the
Philippines.

SEC. 13. Implementing Rules and Regulations. — Within ninety (90)
days after the effectivity of this Act, the Secretary of the Department of
Agriculture shall promulgate rules and regulations for the full implementation
of this Act.

SEC. 14. Separability Clause. — If, for any reason, any section or
provision of this Act shall be held unconstitutional, other provisions hereof

not affected thereby shall remain in full force and effect.


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SEC. 15. Repealing Clause. — All laws, decrees, rules and regulations,
and other issuances, or parts thereof inconsistent with the provisions of this
Act are hereby repealed or amended accordingly.

SEC. 16. Effectivity. ~ This Act shall take effect fifteen (15) days after
publication in the Official Gazette or in two (2) national newspapers of
general circulation.

Approved,