Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City 
19TH CONGRESS 
First Regular Session 
HOUSE BILL NO. ___ 
Introduced by Representative Michael L. Romero 
    EXPLANATORY NOTE 
Last 04 October 2004, then President Gloria Macapagal-Arroyo, signed and 
approved Executive Order No. 366, entitled “Directing a Strategic Review of the 
Operations and Organizations of the Executive Branch and Providing Options and 
Incentives for Government Employees Who May Be Affected by the Rationalization 
of the Functions and Agencies of the Executive Branch” to rationalize Philippine 
Bureaucracy. 
The Department of Budget and Management (DBM) approved on 29 May 2013, 
the Department of Budget and Management (DBM) approved the Rationalization 
Plan of the two (2) attached agencies of the Department of Agriculture (DA), the 
Fiber Industry Development Authority (FIDA) and the Cotton Development 
Administration (CODA). The FIDA that was created by EO 709 dated July 27, 
1981 was mandated to promote the growth and development of the Philippine 
natural fiber, except cotton. On the other hand, the CODA that was created 
under RA 8486 signed on February 11, 1998 was mandated to undertake 
initiative that will spur the growth of the local cotton industry. 
The Philippine Fiber Industry Development Authority (PhilFIDA) is the result 
of the consolidation of FIDA and CODA which is mandated to promote the growth 
and development of the natural fiber industry through research and 
development; production support; extension support, education and training 
services; fiber processing and utilization; and standards implementation and 
trade regulation. 
October 20, 2022
4:18 pm
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This House Bill seeks to provide Modernization Funding to the Philippine 
Fiber Industry Development Authority (PhilFIDA), to promote a progressive 
community of fiber producers and entrepreneurs in an environment-friendly, 
economically viable and globally competitive Philippine natural fiber industry. 
 
. 
Thus, the early passage of this bill is earnestly requested.  
MICHAEL L. ROMERO  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 


Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City 
19TH CONGRESS 
First Regular Session 
HOUSE BILL NO. ___ 
Introduced by Representative Michael L. Romero 
AN ACT 
PROVIDING FOR MODERNIZATION FUNDINGFOR THE 
PHILIPPINE FIBER INDUSTRY DEVELOPMENT AUTHORITY 
(PHILFIDA), INCREASING AND REORGANIZING ITS 
ADMINISTRATION, PROVIDING FOR A PROGRESSIVE 
COMMUNITY OF FIBER PRODUCERS AND ENTREPRENEURS IN 
AN ENVIRONMENT-FRIENDLY, ECONOMICALLY VIABLE AND 
GLOBALLY COMPETITIVE PHILIPPINE NATURAL FIBER INDUSTRY 
AND FOR OTHER PURPOSES 
Be it enacted by the Senate and House of Representatives of the Philippines in 
Congress assembled: 
SECTION 1. 
DECLARATION OF POLICY – It shall hereby be a 
declared policy of the State to enhance the holistic development of the Philippine 
natural fiber industry through the implementation of appropriate, quality and 
timely support programs, projects and activities, guided by the following 
objectives: 
• Promote integrated development of the fiber industry in
various aspects of research, production, processing and regulation; 
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• Promote good agricultural production practices, enforce 
fiber standards and other regulatory policies to maintain supply of 
good quality fibers and to ensure worldwide acceptability; 
• Improve farm productivity, thereby, increasing farmers' 
income; and 
• Increase domestic processing for employment and higher 
value-added 
considerations 
and 
increase 
foreign 
exchange 
revenues. 
The state shall continually improve the effectiveness of our Quality Management 
System towards equitable development for improved quality of life for all. 
The state shall formulate policies for the efficient and effective administration 
and management of all manpower, skills and competencies to ensure 
compliance. 
SECTION 
2. 
MODERNIZATION FUNDING. – The amount of Five 
Hundred Million Pesos (Php 500,000,000.00) for the operation and 
administration of the Philippine Fiber Industry Development Authority 
(PhilFIDA) shall be chargeable against funds for the purpose and other sources 
recommended by the Department of Budget and Management (DBM). 
Thereafter, appropriations for the Philippine Fiber Industry Development 
Authority (PhilFIDA) shall be included in the budget proposals under the 
Department Agriculture (DA). 
 
The Department of Budget and Management (DBM) shall rationalize the existing 
organizational structure and staffing pattern of the in accordance with the 
provisions of this Act and relevant compensation and position classification laws, 
rules and regulations. 


Thereafter, the amount needed for the continued implementation of the 
modernization program, shall be included in the annual General Appropriations 
Act (GAA). 
SECTION 
3. 
Philippine Fiber Industry Development Authority 
(PhilFIDA) MODERNIZATION FUND – There is hereby created the (PhilFIDA) 
Modernization Fund to be used exclusively for the (PhilFIDA) Modernization 
Program. 
The (PhilFIDA) Modernization Fund shall be administered by the Secretary of the 
DA in accordance with existing government budgeting, accounting and auditing 
rules and regulations. 
SECTION 
4. 
PROGRESS REPORT – The Secretary of DA shall 
prepare an annual report on the status of the implementation of the (PhilFIDA) 
Modernization Programs which shall be submitted, to the Office of the President 
and to the Chairpersons of the Committee of Agriculture and Food of the Senate 
and the House of Representatives. 
SECTION 
5. 
PERIOD OF IMPLEMENTATION – The modernization 
program under this Act shall be implemented for an initial period of two (2) 
years:  
Provided, that payments for multi-year contract obligations incurred 
under this Act may extend beyond this period:  
Provided, further, That the Philippine Fiber Industry Development 
Authority (PhilFIDA) shall continue to develop, modernize and constantly 
update its operational capabilities to keep pace with best global practices. 
SECTION 
6. 
POWERS AND FUNCTIONS. – The Philippine Fiber 
Industry Development Authority (PhilFIDA) shall continue to exercise and 
uphold the following powers and functions; but not limited to: 


1. Formulate and implement integrated programs and policy 
guidelines for the continued development of the fiber industry 
in consultation with the industry stakeholders; 
2. Spearhead the harmonization of the programs, projects and 
activities of all sectors involved in the Philippine natural fiber 
industry; 
3. Undertake research and development programs in support 
to production, processing and utilization of fibers; 
4. Collaborate the formulation and development of standards 
for various commercial fibers that are or may, hereafter, be 
produced in the Philippines; 
5. Regulate the fiber trading in accordance with the law thru 
licensing and registration of fiber trade participants such as 
traders, exporters, manufacturers and classifiers; 
6. Recommend the accreditation of seed growers/nursery 
operators; 
7. Accredit fabricators to manufacture PhilFIDA-designed 
machinery, tool and equipment; 
8. Enforce the Philippine National Standards to include fiber 
classification, grading, baling, tagging and marking of 
Philippine natural fibers; and 
9. Undertake skills development trainings and workshops to 
improve the technical and entrepreneurial capabilities of 
stakeholders 
 
SECTION 
7. 
INCREASE OF PERSONNEL. – The Philippine Fiber 
Industry Development Authority (PhilFIDA) shall maintain the sufficient 
staffing pattern. Hence, it is authorized to increase its manpower to meet such 
required and may continue to increase personnel per percentage rate increase of 
committed mandates annually or as the need arises. 


SECTION 
8. 
TRANSITORY 
PROVISION – 
Existing 
industries, 
businesses and offices affected by the implementation of this Act shall be given 
six (6) months transitory period from the effectivity of the IRR or such other 
period as may be determined, to comply with the requirements of this Act. 
SECTION 
9. 
IMPLEMENTING RULES AND REGULATIONS. – The 
departments and agencies charged with carrying out the provisions of this Act 
shall, within sixty (60) days after the effectivity of this Act, formulate the 
necessary rules and regulations for its effective implementation. 
SECTION 
10. 
REPEALING CLAUSE. – All laws, decrees, executive 
orders, rules and regulations, or parts thereof inconsistent with the provisions 
of this Act are hereby repealed or modified accordingly. 
SECTION 
11. 
SEPARABILITY CLAUSE. – If, for any reason, any 
section or provision of this Act is held unconstitutional or invalid, the other 
sections or provisions hereof shall not be affected thereby. 
SECTION 
12. 
EFFECTIVITY CLAUSE. – This Act shall take effect 
after fifteen (15) days from its publication in the Official Gazette or in at least two 
(2) national newspapers of general circulation whichever comes earlier. 
Approved,