Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

SEVENTEENTH CONGRESS
First Regular Session |

2840

HOUSE BILL NO.

Introduced by REP. TEDDY BRAWNER BAGUILAT

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

EXPLANATORY NOTE

The Philippine coconut industry plays a pivotal role in the country's agriculture
sector. In 2014, it contributed 4.0% to the gross value added (GVA) in agriculture
and fishing, There are 68 coconut producing provinces as identified by the Philippine
Coconut Authority (PCA) out of 81 provinces nationwide and coconut lands are
estimated to have covered some 3.3 million hectares of land, or nearly 30 percent of
the total agricultural area in the country. Estimates by the PCA show that there are
3.5 million coconut farmers who are among the nation’s poorest of the poor. The
industry is suffering from declining production which causes poverty to worsen. Yet it
has among the highest potential for growth through productivity enhancement, value-
adding and diversification. It is but apt to focus on the industry to push for its growth
and tum it into a viable and profitable industry, and lift the coconut farmers and their
families out of poverty.

The bill proposes a complete accounting and inventory of the coconut levy assets,
creating the Coconut Farmers and Industry Trust Fund for the development of the
industry and for the benefit of coconut farmers and workers in the country. A

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Coconut Farmers and Industry Fund Committee will be created which shall
implement the Coconut Farmers and Industry Development Plan, among its other

powers and functions.

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

TEDDY BRAWNER BAGUILAT
ao Lone District


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Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

SEVENTEENTH CONGRESS
First Regular Session

HOUSE BILL NO. 2840

Introduced by REP. TEDDY BRAWNER BAGUILAT

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 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 "Coconut Farmers and
Industry Development Act of 2016."

SEC. 2. Declaration of Policy. - It is hereby declared the policy of the State to
consolidate the benefits due to coconut farmers, especially the poor and marginalized,
under various statutes and to expedite the delivery thereof to attain a balanced,
equitable, integrated and sustainable growth and development of the coconut industry.

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Definition of Terms

SEC. 3. Definition of Terms. - The following terms shall mean:

(a) "CIIF' shall refer to the Coconut Industry Investment Fund created by virtue of
Presidential Decree No. 1468;

(b) "CIIF - Oil Mills Group" shall refer to the CIIF companies, namely, Southern
Luzon Coconut Oil Mills; Cagayan de Oro Oil Co. Inc.; lligan Coconut Industries, Inc.;
San Pablo Manufacturing Corp.; Granexport Manufacturing Corp.; and Legaspi Oil Co,

Inc.;


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(c) "CIIF Holding Companies" shall refer to the fourteen (14) holding companies,
namely: Anglo Ventures Corporation; ACS Investors, Inc.; Arc Investors, Inc.; AP
Holdings, Inc.; Fernandez Holdings, Inc.; First Meridian Development, Inc.; Randy Allied
Ventures, Inc.; Rock Stee! Resources, Inc.; Roxas Shares, Inc.; San Miguel Officers
Corp., Inc.; Soriano Shares, Inc.; Te Deum Resources, Inc.; Toda Holdings, Inc.; and
Valhalla Properties Limited, Inc.;

(d) "CIF SMC Block Shares" shall refer to the 33,133,266 shares of stock in San
Miguel Corporation (SMC), sequestered by the PCGG in April 1986 and representing
31% of the total outstanding capital stock of SMC;

(e) "Converted SMC 1 Preferred Shares" shall refer to that portion of the ClIF SMC
Block Shares covering 753,848,312 preferred shares of stock in SMC and representing
24% of the outstanding capital stock of SMC;

(f) "Coconut Levy Assets" shall refer to any and alll kinds of property, whether real or
personal, tangible or intangible, wherever situated, which have been acquired through
the Coconut Levy Funds as defined in this Section, including those assets that may be
recovered in favor of the government, as well as the fruits, or income therefrom,
including those acquired in exchange or substitution thereof.

These shall include, among others, the following:

(i) The 72.2% shares of United Coconut Planters Bank's (UCPB's) outstanding
capital stock;

(ii) The CIF - Oil Mills Group;

(ii) The CIIF Holding Companies; and

(iv) The CIF SMC Block Shares;

(g) "Coconut Levy Funds" shall refer to various funds generated from levies, taxes,
charges, and other fees exacted or imposed pursuant to or in connection with the sale
of copra rececada or its equivalent in other coconut products, and collected for the most
part from coconut farmers, planters, millers, refiners, processors, exporters, desiccators
and other end-users of copra rececada or its equivalent in other coconut products.

Specifically, the term shall refer to any or all of the following:

(i) The Coconut Investment Fund created under Republic Act No. 6260;

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(ii) The Coconut Consumers Stabilization Fund, later renamed as the Coconut

Industry Stabilization Fund, created under Presidential Decree No. 276;

(iii) The Coconut Industry Development Fund created under Presidential Decree
No. 582;

(iv) The Coconut Industry Investment Fund created under Presidential Decree
No. 1468; and

(v) The Coconut Reserve Fund under Presidential Decree No. 1468 and
Presidential Decree No. 1842.

(h) "Committee" shall refer to the Coconut Farmers and Industry Trust Fund
Committee created under Section 11 of this Act;

(i) "PMO" shall refer to the Privatization and Management Office organized under
Article III of Executive Order No. 323 (S. 2001);

() "PCA" shall refer to the Philippine Coconut Authority, created under Presidential
Decree No. 232 (S. 1973) as amended by Presidential Decree No. 1468 (S. 1978);

(k) "PCGG" shall refer to the Presidential Commission on Good Government, created
under Executive Order No.1 (S. 1986);

(1) "Plan" shalll refer to the Coconut Farmers and Industry Development Plan, to be
prepared under Section 17 of this Act;

(m) "President" shall refer to the President of the Republic of the Philippines;

(n) "Trust Fund" shall refer to the Coconut Farmers and Industry Trust Fund
declared under Section 6 of this Act;

(0) "Trust Income" shall refer to the income, interest earnings, and other monetary
benefits, realized by and accruing to the Trust Fund or any portion thereof; and

(p) "Trust Principat’ shall refer to (i) the initial Trust Principal composed of the
proceeds from the redemption of the Converted SMC 1 Preferred Shares, dividends
declared, paid, or issued on the Converted SMC 1 Preferred Shares, and all income or
interest derived therefrom as of the effectivity of this Act; and any other cash Coconut
Levy Asset deposited in the Bureau of Treasury and UCPB as administrator of the CIIF:

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(ii) any and all proceeds of privatization of the Coconut Levy Assets remitted thereto by
the Privatization and Management Office, and (ii) proceeds of privatization of any or all
properties or assets conveyed by any person, group or entity to the Committee, from

time to time, as provided in Section 8 hereof.

Audit and Reconveyance of Coconut Levy Assets

SEC. 4. Audit and Inventory of Coconut Levy Assets. - Upon the effectivity of this
Act, the Commission on Audit (COA), in coordination with the PCA and the PCGG, shall
conduct a complete accounting and inventory of the Coconut Levy Assets. The audit
shall determine and ascertain the amount, value, description and nature of such funds,
properties, assets, records, choses in action, and other rights, claims, or causes of
action pertaining thereto. Likewise, the COA shall conduct an audit of all investments,
disbursements or expenditures arising from Coconut Levy Funds.

Within one hundred twenty (120) days from the effectivity of this Act, the COA shall
submit to the Committee its audit report, together with a complete list of Coconut Levy
Assets and their valuation, and the empirical basis and the methodologies employed for
the said valuation

The Committee shall, within fifteen (15) days from its receipt of the audit report,
publish the same in at least two (2) newspapers of national circulation

Nothing herein shall be construed as preventing the PMO from procuring a third-
party appraisal of any of the Coconut Levy Assets prior to or in the course of preparing
the privatization or disposition plans for the said assets.

SEC. 5. Reconveyance of Coconut Levy Assets. - Immediately upon the effectivity
of this Act, the PCGG, the government representatives to the boards of
sequestered/surrendered corporations, and any government agency or person having
any Coconut Levy Asset in its administration, authority, custody or control, shall perform
or cause the performance of the following:

(1) reconvey title to the Republic of the Philippines over the Coconut Levy Assets;
(2) deliver all stock certificates and other evidence of ownership to the Bureau of
Treasury for safekeeping; and


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(3) deposit all cash Coconut Levy Assets in the Trust Fund.

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Coconut Farmers and Industry Trust Fund

SEC. 6. The Coconut Farmers and Industry Trust Fund. - The Coconut Levy
Assets are hereby declared a trust fund to be known as the "Coconut Farmers and
Industry Trust Fund," herein referred to as the "Trust Fund," which shall be capitalized,

managed, utilized and accounted for in the manner provided in this Act.

SEC. 7. Purpose of the Trust Fund. - The Trust Fund shall be used exclusively for
the development of the coconut industry for the ultimate benefit of coconut farmers and

farm workers.

SEC. 8. Capitalization of the Trust Fund. - The proceeds from the redemption of
the Converted SMC 1 Preferred Shares, dividends declared, paid, or issued on the
Converted SMC 1 Preferred Shares, and all income or interest derived therefrom as of
the effectivity of this Act; and any other cash Coconut Levy Asset deposited in the
Bureau of Treasury and UCPB as administrator of the CIIF shall form part of the initial
capital of the Trust Fund. For this purpose, any provision of law to the contrary
notwithstanding, the BTr and UCPB shall directly release any and all monies to the
Trust Fund.

The Trust Fund shall thereafter be augmented with all proceeds of
privatization/disposition of the Coconut Levy Assets remitted directly thereto by the
PMO in accordance with this Act, and any and all forms of income, interests, earnings,
yields, or any monetary benefit derived therefrom prior to the privatization/disposition of
these Coconut Levy Assets.

Nothing in this Act shall be understood to prevent or prohibit any person, group or
entity from conveying to the Committee other properties and/or additional assets either
for the use of the coconut industry, or for purposes of privatization, in which case, the
proceeds of such privatization shall form part of the Trust Fund.

No portion of the Trust Fund shall accrue to the general fund of the National

Government.


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‘SEC. 9. Management and Utilization of the Trust Fund and Trust Income. - The
Trust Principal shall be preserved and maintained at all times and, for this purpose,
‘shall be invested only in Philippine government securities. Only the Trust Income shall
be used for the implementation of the Plan and for the payment of expenses allowed
under this Act: Provided, That, for purposes of the initial implementation of the Plan and
its programs and projects, and to fund the allowable expenses under this Act, pending
the accrual of or availability of the Trust Income, the Committee is hereby authorized to
use a portion of the Trust Principal which shall in no case exceed five percent (5%) of
the amount constituting the initial capital of the Trust Fund.

For the initial year, the amount of Fifty Million Pesos (Php 50,000,000.00), to cover
expenses of the Committee in connection with the discharge of its responsibilities, and
expenses for the conduct of an audit and inventory of Coconut Levy Assets, and
formulation of the Plan, is hereby authorized to be charged against the five percent (5%)
portion of the initial capital of the Trust Principal permitted to be used. For the
succeeding years, not more than three percent (3%) of the Trust Income accruing
during the immediately preceding year shall be used to cover annual expenses of the
Committee. If the expenses in any year are less than the maximum amount permissible,
the difference shall not be availed of as additional expenses in the following years.

To fund the expenses of the PMO for the first year in the discharge of its functions
for the privatization or disposition of the Coconut Levy Assets, the Committee is hereby
authorized to approve advances and/or reimbursements to the PMO in the amount of
not more than Fifty Million Pesos (Php 50,000,000.00), which shall likewise be charged
against the five percent (5%) portion of the initial capital of the Trust Fund.

Temporary investment of the Trust Principal shall not be construed as disbursement

of funds.

All fund releases approved by the Committee shall be released directly to the
implementing agencies.

SEC. 10. Designation of the Bureau of Treasury as Depository of the Trust
Fund, - Any law to the contrary notwithstanding, the Bureau of Treasury is hereby
designated as the depository of the Trust Fund, which shall (i) invest the Trust Fund in
Philippine government securities; (ji) release funds directly to the implementing
agencies upon the instruction of the Committee; (iii) account for the utilization and

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investment of the Trust Fund and (ii) exercise the tasks, functions and duties

determined and established by the Committee.

IV

Coconut Farmers and Industry Trust Fund Committee

SEC. 11. Creation of the Coconut Farmers and Industry Trust Fund Committee.
- There is hereby created the Coconut Farmers and Industry Trust Fund Committee
which shall be attached to the Office of the President

The Committee shall have the following powers and functions:

(1) Direct, supervise and coordinate the Implementation of the Coconut Farmers and
Industry Development Plan;

(2) Approve disbursements from the Trust Income and from the five percent (5%) of
the initial capital of the Trust Principal;

(3) Arrange for the transfer of the Coconut Levy Assets to the National Government
and/or to the Privatization and Management Office (PMO) for privatization or

disposition;

(4) Establish guidelines for the privatization or disposition of the Coconut Levy
Assets by the PMO;

(6) Approve, or disapprove, on behalf of the National Government and without need
of any further approval by, or other action from any other government institution or
agency, the sale or disposition of the Coconut Levy Assets identified for disposition or
privatization, in each case on terms and to purchasers recommended by the PMO:
Provided, That neither the Committee itself, nor any of its members, shall undertake the
marketing of any such assets, participate in the negotiation for their sale, or make the
sale itself, or bring about any situation which may give rise to a conflict of interest;

(6) Exercise on behalf of the National Government all rights and incidents of
‘ownership with respect to such assets, including the right to vote, whether directly or
through duly authorized nominees, shares of stock held in the name of the National
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(7) Approve the financial requirements of the PMO in relation to its functions set forth
in this Act, including its annual budget for operations, management and disposition of
the Coconut Levy Assets transferred and entrusted under its care; which shall not be
more than three percent (3%) of the Trust Income of the preceding year;

(8) Appoint, transfer, remove for cause, personnel of the Committee, and fix their
remuneration in accordance with the Salary Standardization Law; and

(9) Exercise such other incidental powers and functions as may be necessary to
attain the objectives of this Act.

SEC. 12. Composition. - The Committee shall be composed of the Secretary of
Agriculture as Chairman, the Secretary of Finance as Vice-Chairman, the Director-
General of the National Economic and Development Authority (NEDA), the
Administrator of the Philippine Coconut Authority (PCA), and five (5) representatives

from the coconut farmers sector.

The five (5) representatives from the coconut farmers sector shall be appointed by
the President from a list of nominees, containing at least eight (8) names, submitted by
the PCA, pursuant to a selection process under Section 24 of this Act. They shall each
hold a term of three (3) years, and may be reappointed once. Any appointment to fill the
vacancy in the Committee arising from death, removal, retirement or resignation shall
be made only for the unexpired term.

SEC. 13. Ex-Officio Alternates. - The ex-officio members of the Committee may
designate their respective alternates who shall be the officials next-in-rank to them and
their acts shall be considered the acts of their principals.

SEC. 14. Executive Director of the Committee. - The President, upon the
recommendation of the Committee, shall appoint an Executive Director who shall have

the following powers and functions:

a) Execute, administer and implement the plans and programs approved or
promulgated by the Committee;

b) Direct and supervise officials, employees, representatives and agents for the

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c) Prepare an annual report on the activities of the Committee at the close of each
fiscal year and to submit a copy thereof to the President and Congress;

d) Keep and maintain official records and reports of the proceedings of the
Committee;

e) Administer oaths in all matters falling within the jurisdiction of the Committee; and

f) Exercise such other duties as may be vested by the Committee that are consistent
with the provisions of this Act.

SEC. 15. Meetings. - The Committee shall meet as frequently as may be necessary
and expedient to discharge its responsibilities: Provided, That, it shall meet at least
once a month

The presence of at least a majority of the members of the Committee shall constitute
a quorum, and the concurrence of a majority of the members present at a meeting at
which a quorum exists shall be adequate for any decision by the Committee: Provided,
That, where the matter involves the approval of (i) any disposition or privatization
proposal involving more than Five Hundred Million Pesos (Php 500,000,000.00), (ii) any
proposed investment involving more than One Hundred Million Pesos (Php
100,000,000.00), and (iii) the utilization of the Trust Income in amounts exceeding Fifty
Million Pesos (Php 50,000,000.00), the approval of at least a majority of the members of
the Committee shall be required

SEC. 16. Legal Counsel. - The Secretary of Justice shall be the ex-officio adviser to
the Committee on legal matters.

Vv

Coconut Farmers and Industry Development Plan

SEC. 17. Preparation of the Coconut Farmers and Industry Development Plan. -
The National Economic and Development Authority, Department of Agriculture,
Department of Agrarian Reform, Department of Trade and Industry, Department of
Science and Technology, Department of Energy, Department of Public Works and
Highways, Department of the Interior and Local Government, and the National Anti-
Poverty Commission are herein constituted as an ad-hoc committee that will prepare
the "Coconut Farmers and Industry Development Plan," herein referred to as the "Plan.”


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The Director-General of the National Economic and Development Authority shall be the
Chairman of the ad-hoc committee. In the preparation of the Plan, the ad-hoc committee
shall consult with representatives of the coconut industry, including coconut farmers’
organizations.

The Plan shall set the directions and policies for the rehabilitation and development

of the coconut industry.

In the formulation of the Plan, the Committee shall be guided by the following

objectives:

a) Increased farm productivity and incomes of coconut farmers;
b) Establishment of coconut-based enterprises;

c) Rehabilitation of the coconut industry towards global competitiveness; and
d) Poverty alleviation and social equity.

The Plan shall include a national program for (a) coconut productivity, including
intercropping and livestock raising; (b) community-based coconut enterprises, including
integrated processing of coconut products and downstream products; (c) coconut
farmers organization and development; and (d) social protection that directly benefit
coconut farmers and farm workers, such as, but not limited to, medical and/or health
and life insurance services, educational scholarships for deserving students coming
from families of coconut farmers, or beneficiaries of the Coconut Levy Funds, in case
these social protection programs are not funded by an appropriations law or any other
special law, or where funding is insufficient

For the avoidance of doubt, programs relating to planting, replanting, fertilization,
research and development, market promotion, farm-to-market roads, and direct lending,

shall be funded through regular appropriations.

The Plan shall provide an indicative funding requirement or allocation for the
implementation of any and all of the programs and projects to be funded by the Trust
Income, which funding or allocation shall be itemized or broken down on a project-to-
project basis: Provided, That, (i) for projects which are recurring, or to be implemented
on a regular basis, the allocation shall indicate the annual fund that may be required to
implement said project; and (ii) for projects that are to be implemented or concluded
within a period of time, the allocation shall indicate the total fund that may be required
for the implementation of the whole project, itemized according to the phases or stages
of said project.

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Within one hundred eighty (180) days from the start of the effectivity of this Act, the
Plan shall be submitted to the President, through the Committee, for approval.
Thereafter, the Committee shall approve the disbursements of funds in accordance with
the provisions of this Act

Any amendment to the Plan shall require the approval of the President.

vi
Privatization of the Coconut Levy Assets

SEC. 18. Privatization of the Coconut Levy Assets. - To increase the benefits that
can be provided to the coconut farmers and enhance the development of the coconut
industry, all Coconut Levy Assets transferred to the Privatization and Management
Office (PMO) shall be privatized or disposed within five (5) years from the effectivity of
this Act.

SEC. 19. Additional Mandate of the Privatization and Management Office
(PMO). - In addition to its powers, duties and functions under Executive Order No. 323
dated December 6, 2000, the PMO, shall, for and in behalf of the National Government,
take title to and possession of, conserve, provisionally manage, and dispose of the
Coco Levy Assets

In the discharge of its mandate, the PMO is hereby empowered to (i) formulate and
implement the marketing and disposition program of the Coco Levy Assets; (ii) execute
and deliver, on behalf of the National Government, deeds of sale, contracts, trust
instruments, and other legally operative documents as may be necessary or appropriate
to convey title to, take possession of, and conserve, such assets; (iii) engage external
expertise as may be necessary in the fulfillment of its tasks under this Act; and (iv)
adopt internal rules and regulations in relation to the marketing and disposition of the
Coconut Levy Assets.

Any and all sales and other modes of privatization or disposition shall not be

considered final unless and until approved by the Committee.

SEC. 20. Powers of the Privatization and Management Office. - The PMO shall
prepare the privatization plans and policies of the Coconut Levy Assets transferred to it.
It is empowered to enter into sales through public bidding, negotiated sale, lease, or any

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form of divestment or transmission of rights over the Coconut Levy Assets, including a
partnership with the private sector in the management or operation of these Coconut
Levy Assets prior to actual sale or disposition

Prior to the implementation of any privatization plan, the PMO shall have the

following powers:

(i) Require any one or more of the subject corporations to adopt and implement cost-
reduction measures to enhance the viability, and therefore the disposability of such
corporations, to potential buyers, including measures requiring personnel retrenchment

plans or other forms of corporate downsizing;

(ii) Direct anyone or all of the subject corporations to submit to the PMO, within fixed
time-tables, such reports and information as the PMO may require in the exercise of its
ownership, administrative, and disposition over such corporations or their assets; and

(iii) Cause the subject corporations to undergo merger, consolidation, spin-off, or
other corporate acts of reformatory nature as it may deem necessary or desirable to
expedite the disposition and privatization under this Act.

In all such cases, no corporate measure shall be implemented without the approval

of the Committee.

Nothing herein shall be construed as authorizing the Committee or the PMO to
rehabilitate, or allow reinvestments of any and all Coconut Levy Assets transferred to

the National Government.

SEC. 21. Committee to Determine Transfer Value. - The Committee is hereby
vested with full and complete powers and prerogatives to determine transfer values and
related valuations at which the Coconut Levy Assets shall be transferred and conveyed
to the PMO pursuant to the mandate of this Act and upon reasonable consultation with
the COA or a third-party appraiser: Provided, That any valuation approved by the
Committee for purposes of the transfer to the PMO shalll not be deemed a condonation,
waiver, or extinguishment of any obligation by any third party whose vested rights may

be impaired by such transfer.

SEC. 22. Remittance of Proceeds of Privatization. - Any provision of law to the
contrary notwithstanding, all proceeds or receipts from the sale of Coconut Levy Assets,
except portions thereof for reimbursable custodianship and operational expenses or

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such amount approved by the Committee to be retained by the PMO, shall be remitted
directly to the Trust Fund

SEC. 23. Reporting Requirements. - The Committee shall, on a semi-annual basis,
submit to the President and to Congress a report on the status of disposition of the
Coconut Levy Assets, which shall include, among others, a description of the individual
assets disposed of, their purchasers thereof, the consideration received therefor, and
the agreed terms of payment.

The PMO shall, within three (3) months following the closure of books at the end of
each fiscal year, submit a comprehensive annual report duly approved or endorsed by
the Committee, to the President and Congress on the status of its privatization efforts
and its disposition program for the Coconut Levy Assets, which shall include the items
described in the immediately preceding paragraph.

vil
Miscellaneous Provisions

SEC. 24. Selection of Representatives of the Coconut Farmers Sector. - Within
thirty (30) days following the effectivity of this Act, the PCA shall promulgate a selection
process of nominees as representatives of the coconut farmers’ sector in the
Committee. The nominees shall be validated and shortlisted from the coconut farmers’
registry of the PCA: Provided, That the PCA shall first complete its coconut farmers’
registry before the selection process can commence. The list of nominees shall be
submitted to the President not later than sixty (60) days from the start of the selection

process.

SEC. 25. Applicability of Republic Act No. 10149 and Executive Order 323. - In
case of doubt in the interpretation of the provisions of this Act, the provisions of
Republic Act No. 10149, otherwise known as the "GOCC Governance Act of 2011," and
Executive Order 323, entitled "Constituting an Inter-Agency Privatization Council (PC)
and Creating A Privatization and Management Office (PMO) Under The Department of
Finance For The Continuing Privatization of Government Assets and Corporations,”
except Sections 2 and 3 of Article IV of E.O. 323, shall apply suppletorily.

SEC. 26. Implementing Rules and Regulations. - Within ninety (90) days from the
date of effectivity of this Act, the Committee, in consultation with the PMO, shall

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formulate and promulgate the rules and regulations for the proper implementation of this
Act.

SEC. 27. Congressional Oversight. - The Congressional Oversight Committee on
Agricultural and Fisheries Modernization (COCAFM) shall exercise oversight on the

implementation of this Act.

SEC. 28. Separability Clause. - If any provision of this Act is declared invalid or
unconstitutional, the other provisions not affected by such declaration shall remain in full
force and effect.

SEC. 29. Repealing and Amendatory Clause. - All laws, executive and
administrative orders, rules and regulations inconsistent with this Act are hereby

repealed or amended accordingly.

SEC. 30. Effectivity Clause. - This Act shall take effect fifteen (15) days after its
complete publication in the Official Gazette or in two (2) newspapers of general

circulation.

Approved,

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