THIRTEENTH CONGRESS OF THE REPUBLIC 
) 
OF THE PHILIPPINES 
) 
Firsf Regular Session 
) 
w 
R 
BY: 
"2 
S E N A T E  
S. No. 
8 
Introduced by Senator S. R. Osmetia 111 
EXPLANATORY NOTE 
In the year 2003 primary industries, including agriculture, fishery, and forestry, 
comprised no more than 18.12% of Gross National Product (GNP) in real terms. In 
contrast, industry accounted for 31.45% of GNP, and the service sector, 42.87%. 
In the course of economic development and urbanization, it is natural that 
agriculture and primary sectors diminish relative to industry and services. However, 
even in advanced economies, agriculture continues to serve as an important resource 
base for other sectors, and the momentum of industrial development is often built 
upon the strength of the primary sectors. 
The Philippines is richly endowed in natural resources yielding supplies of 
primary commodifies - copper, zinc, forestry products, plantation crops like coconut, 
sugar, abaca and tobacco. The vertical integration of these sectors could lead to the 
production of higher value added products, generating employment for our workforce, 
and providing a cutting edge in our drive for competitiveness. It is important, however, 
that the benefits from agri-based industrialization should filter back to rural 
communities for the sake of efficiency and sustainability. 
It is important that the 
vertical integration of our primary industries should be pursued along lines anchored 
firmly on consensus and community-based management 
The present structure of government intervention, drawn along lines of 
bureaucratic specialization among executive departments, 
and with a tendency 
towards fragmented intervention add divisive policy planning is ill-equipped to achieve 
vertical integration. 
This bill proposes the creation of the Department of Primary Industries which 
will have the mandate to nurture, shepherd, and champion our primary commodity- 
based products to success in the world's markets. 
The Department will have 
multisectoral coverage, from agriculture and extractive sectors, to industry and the 
service sectors. Linkages across these sectors are crucial in developing products that 
our entrepreneurs can offer to the world's competitive markets. 


In view of the foregoing, early passage of this bill is earnestly requested. 
SERGIO OSMENA 111 
Senator 


THIRTEENTH CONGRESS OF THE REPUBLIC 
First Regular Session 
OF THE PHILIPPINES 
"04 JUN 30 P559 
S E N A T E  
Introduced by Senator S. R. Osmeila 111 
AN ACT 
CREATING THE DEPARTMENT OF PRIMARY INDUSTRIES, PROVIDING FUNDS 
THEREFOR AND FOR OTHER PURPOSES 
Be it enacted by the Senate and the House of Representatives of the Republic of the 
Philippines in Congress assembled: 
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SECTION 1. Title. - This Act shall be known as the "Charter of the 
Department of Primary Industries." 
SECTION 2. Declaration of Policy. - It is hereby declared to be the 
policy of the State to promote the sustainable development of 
its primary 
commodities as economically and socially strategic sectors. 
Commodity 
sectors employ a large segment of the population, especially in the rural areas, 
and commodity exports and the processed products thereof account for a 
sizable proportion of the country's national income and export earnings. 
Commodity sectors also have vast potentials for value added products on 
which 
the country's 
drive for global 
competitiveness 
can be securely 
anchored. 
For these reasons, measures aimed at increasing the efficiency, 
productivity and competitiveness of the commodity sector will have both a 
deep and widespread impact on the economy, on employment, and on 
poverty alleviation, In order to pursue the above objectives, the state shall 
encourage community responsibility in the management of natural resources, 
consolidate and strengthen existing markets for primary commodities and 


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their products, and assist the private sector in penetrating new ones. The 
state shall also support the development of various downstream linkages 
through infrastructure and technology development. 
To carry out such a 
purpose, and in recognition of the importance of a more effective consensus 
mechanism that will integrate the offen competing sectorat interests in the 
promotion of our industries, 
the State finds that the establishment of an 
executive department is desirable to achieve the best administration of the 
development process for the commodity-based primary 
industries of our 
country. 
SECTION 3. Definition of Terms. When used in this Act, unless the 
context otherwise requires, the term 
a) "Commodity Board" shall refer to the agency of the Department of 
Primary Industries 
created under Sec. 8 in relation to a specific 
primary industry or class of primary industries, and placed under 
the supervision 
of 
A commodity 
Director 
with the rank 
of 
Department Assistant Secretary. 
b) "Commodity Fund" shall refer to the Commodity Fund established 
in respect to a Commodity Council under Sec.17; 
c) "Council" shall refer to a commodity council established under Sec. 
11; 
d) "primary industry" shall 
refer to any field of endeavor 
whose 
objective 
is (a) 
the production 
of agricultural or other primary 
produce; or (b) the extraction from the environment of minerals or 
substances 
from which energy 
is made available; 
or (c) 
the 
conservation and sustainable use 
and management of natural 
resource. 
e) "representative organization" means, in relation to a Commodity 
Board, 
an organization 
declared under Sec. 10 to be 
a 
representative organization in relation to the Commodity Council ; 


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9 ".Selection 
Committee" 
shall refer to 
a selection committee 
established under Sec.19 in respect to a Commodity Council ; 
SECTION 4. 
Establishment of Department 
- 
There is hereby 
established at the seat of government an executive department to be known as 
the Department of Primary Industries. 
SECTION 5. Funcfions of the Deparfmenf . 
The Department shall 
have the following functions : 
a) to plan and manage the various commodity sectors 
b) to maintain a data base on primary commodities 
c) to deliberate on international commodity issues and problems 
d) to administer the financial and development performance of the 
Department and its agencies and instrumentalities; and manage 
the operational and current issues in the various commodity sectors 
such as coconut, sugar, fiber, fisheries and aquaculture, abaca, 
tobacco, copper, etc. 
SECTION 6. Powers of the Department. The Department shall have 
the power to do all things necessary or convenient to be done for, or in 
connection with the performance of its functions. In particular, the Department 
may 
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a) Adopt, alter, use a corporate seal; to contract, lease, buy, sell, 
acquire, own and dispose, movable and immovable as well as personal and 
real property of whatever nature (including but not limited to shares of stock or 
participation in private corporations or in limited partnerships, 
or in joint 
ventures with limited liability), bonds, precious metals in bullion, ingots, and 
easily convertible foreign exchange; to sue and be sued in order to carry out 
its duties, responsibilities, privilege, powers and functions as granted and 
provided for in this Act, and to exercise the power of eminent domain for public 
use and public purpose; 


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b) within the limitation provided by law, raise or borrow adequate and 
necessary funds from local or foreign sources to finance its projects and 
programs under this Act, and for that purpose to issue bonds, promissory 
notes and other forms of securities, and to secure the same by a guarantee, 
pledge, mortgage, deed of trust or an assignment of all or part of its property 
or assets; 
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c) form, establish organize and maintain subsidiary corporations as its 
business and operations 
may require, 
whether under the laws of the 
Philippines or not; 
d) issue rules and regulations consistent with the provisions of this Act 
as may be necessary to implement and accomplish the purposes, objectives 
and policies herein provided; and 
e) to exercise such powers 
as may be essential 
necessary 
or 
incidental to the power granted to it hereunder as well as those that shall 
enable it to carry out, implement and accomplish the purposes, objectives 
and policies of this Act. 
SECTION 7. Designation, appointment and supervision of Deparfment 
Secretary - 
There shall be at the head of the Department a Secretary of 
Primary Industries (hereinafter referred to as the "Secretary") who shall be 
appointed by the President by and with the advice and consent of Congress. 
The Department shall be administered under the supervision and direction of the 
Secretary. 
(a) General duties of the Secretary. 
The Secretary shall, among his 
responsibilities, advise the President with respect to government programs and 
activities relating to the development of primary 
commodities and their 
respective downstream industries; develop and recommend to the President 
policies for fostering the orderly growth and development of the nation's primary 
industries; exercise leadership at the direction of the President in coordinating 
all government activities affecting the development of primary industries; 


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provide technical assistance and information, including a clearinghouse service 
to aid national and local governments, private corporations, cooperatives and 
other organizations 
in developing solutions to the development of primary 
industries; 
consult and cooperate with other government agencies, other 
executive departments and focal government units, including, 
when 
appropriate, holding informal public hearings, with respect to government 
programs for the development of primary industries; encourage comprehensive 
planning by national and local governments with a view to coordinating public 
and private sector activities and enterprises; encourage private enterprise to 
serve as large a part in the country's development programs as it can and 
develop the fullest cooperation with private enterprise in achieving the objectives 
of the Department; and conduct continuing comprehensive studies, and make 
available findings, with respect to the development of primary industries. 
SECTION 8. Officers of Department 
(a) There shall be in the Department an Undersecretary, and three 
Assistant Secretaries, who shall be appointed by the President by and with the 
advice and consent of Congress, 
and who shall perform such functions, 
powers and duties as the Secretary shall prescribe from time to time. 
(b) Director of Programs. 
Designation; powers and duties; studies of 
industrial development problems and recommendafions for administration of 
public programs affecfing such problems. The Undersecretary shall serve as 
the Programs Director, 
who shall be designated by the Secretary. He shall 
assist the Secretary in carrying out his responsibilities to the President with 
respect to achieving maximum coordination of the programs of the various 
departments and agencies of the government which have a major impact on 
commodities and resource-based products. In providing such assistance, the 
Director shall make such studies of industry problems as the Secretary shall 
request, and shall develop recommendations relating to the administration of 
the development of primary industries, particularly with respect to achieving 


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effective cooperation among national and local government agencies and 
statutory organizations concerned. Subject to the direction of the Secretary, 
the Director shall in carrying out his responsibilities, (1) establish and maintain 
close liaison with the 
Executive Departments and local government units, 
statutory bodies concerned and other government agencies, and (2) consult 
with national, local and regional officials, and consider their recommendations 
with respect to such programs. 
(c) Commodity Directors. 
The Assistant Secretaries shall serve as 
Executive Directors who shall head respectively the three Commodity Boards 
within the Department: 
one for 
Agriculture 
and Livestock; 
another for 
Fisheries and Aquaculture, and the third for Forestry and Mining. Each 
Assistant Secretary shall exercise supervision over the development of the 
respective commodities under his jurisdiction, and 
helshe shall have such 
duties and powers as may be prescribed by the Secretary. 
He/she shall 
administer, 
under the supervision and direction of the Secretary, 
the 
departmental programs relating to the respective commodity markets. The 
Secretary shall ensure to the extent practicable 
that managers of the 
Commodity Board programs, 
shall be 
accountable for program operation, risk management, management of cash 
and other assets, and program financing related to activities over which such 
managers have responsibility. 
at each level of the Department, 
SECTION 
9. Transfer of functions. Except as otherwise provided, 
there are hereby transferred tq and vested in the Secretary all of the functions, 
powers and duties of the 
Philippine Coconut Authority (PCA), 
the Fiber 
Industry Development Authority (FIDA), the National Tobacco Administration, 
The Philippine Fisheries Development Authority, 
the Sugar Regulatory 
Administration, the Livestock Development Council, The National Agriculture 
and Fishery Council, and of the heads and other officers and offices of said 
agencies. 


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that are 
,e) 
operation 
in respect 
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fuqded 
:o facilitate the dissemination adoption and implementation of the 
Ian in relation to the primary industry or class of primary industries 
of which the Council was established; 
such other functions as are conferred to the council by this Act or 


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SECTION 13. Constitution and meetings of the Council - A commodity 
council shall meet at least once a month, or as often as deemed necessary. It 
shall consist of a Chairperson, a government member, and such number of 
other members, not fewer than 3 nor more than 7 as the Secretary determines 
in writing, to be appropriate for the Council. 
SECTION 14. Appointment of Council members - The members of a 
Commodity Council are to be appointed by the Secretary. The Secretary must 
not appoint a person as a government member unless he is satisfied that the 
person has experience in and knowledge of, government policy processes and 
public administration. The nominated members of a Commodity Council are 
to be appointed from persons nominated by a selection committee under 
Sec. 21. 
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SECTION 15. Commodify Development Plans and Annual Operational 
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Plans - (a) A Commodity Council must prepare an Commodity Development 
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Plan, and an annual operational plan that is expressed to relate to the 
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financial year during which the plan is in force. 
(b) An 
annual operation plan is to specify the broad groupings of 
activities that the Commodity Council proposes to be funded, wholly or partly 
from the Council's Commodity Fund during the financial year; describe how 
and to what extent funding those activities will give effect to the Development 
plan in force during that financial year; in particular pursue the strategies 
outlined in the development plan and help achieve the objectives described in 
the plan; and provide an estimate of the total amounts likely to be spent from 
the Council's Commodity Fund in respect of each broad grouping of activities 
the Council proposes to be funded during the financial year; and the total 
amounts that are likely to be paid into the Council's Commodity Fund during 
the financial year. 
(c) A Commodity Council must not submit a Commodity Development 
Plan to the Secretary for his approval or request the Secretary's approval to 


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the variation of a Commodity Development Plan unless the Council has at 
least one month beforehand, given a copy of the plan, variation or request to 
the respective Commodity Board; and if the respective Commodity Board has 
indicated to the Council that it wishes to have its comments accompany the 
plan, variation or request - the plan, variation or request is accompanied by 
the written comments that,the Commodity Board has provided to the Council 
for that purpose. 
e) To the extent that it is practicable to do so, a Commodity Council 
must ensure that at any time, the performance of its functions and the 
exercise of its powers are consistent with and designed to give effect to any 
Commodity Development Plan and annual operating plan prepared by it and 
in force at the time. 
SECTION 16. Accountability 
(1) A Commodity Council must, as soon as practicable after the end 
a report of its 
of each financial year, 
operations during the financial year just ended. 
prepare and give to the Secretary 
(2) Without limiting the matters that a Commodity Council may include 
in its annual report for a period, it must include in the report particulars of : the 
activities 
that it proposed 
should be funded, 
wholly or partly 
from its 
Commodity Fund, during the period: and the amount that was spend from the 
Fund during the period in relation to each of those activities; and revlsions in its 
Development plan or annual operational plan approved by the Secretary 
during the period; agreements that the Board entered into in behalf of the 
Council during the period and the activities of the Board within the period in 
relation to agreements entered into during the period; 
and the Board's 
activities on behalf of the Council during the period; significant acquisitions 
and dispositions of real property by the Board on behalf of the Council during 
the period; an assessment of the extent to which its operations during the 
period have achieved its objectives 
as stated in the Development Plan, 


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implemented the annual operational plan applicable to the period; and an 
assessment of the extent to which the Council has, 
during the period 
contributed to the attainment of the objectives of the Act as set out in Section 
2. 
(d) A Council must not give its annual report to the Secretary unless the 
council has at least one month beforehand given a copy of the report to the 
Commodity Board, and if the Commodity Board has indicated to the Council 
that it wishes to have its comments accompany the report - the report is 
accompanied by the written comments that the Board has provided to the 
Council for the purpose. 
(e) 
The Secretary must cause a copy of a Commodity Council's 
annual report to be laid before each House of Congress within 15 working 
days of that House after the Secretary receives the annual report. 
(f) The Chairperson of a Commodity Council 
must 
as soon as 
practicable 
after the Councils 
annual report has been submitted to the 
Secretary, 
provide copies 
of 
the report 
to each 
of the Council's 
representative organizations, and make arrangements with each of those 
organizations to attend the organization' annual conference or a meeting or the 
organizations executive for the purpose of enabling the annual report to be 
considered, and the Chairperson 
to deliver an address in relation to the 
Council's activities in the period to which the report relates; and the Council's 
intended activities in the financial year following the end of the period and the 
Chairperson to be questioned in relation to those activities. 
SECTION 17. Commodity funds - 
(a) Where as a result of the 
making of 
regulations, a Commodity Council is established under Sec. 11 on 
a particular day, a Commodity Fund is established in respect of the Council 
on that day, 
to be known 
by the name specified in the regulation. 
A 
Commodity Fund vests in, ,and is administered by a Commodity Board. 


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(b) There are to be paid into a Commodity Fund amounts equal to the 
amounts from time to time received by the government under the General 
Appropriations Act for each levy attached to the Fund; and amounts payable 
out of the General Fund which is appropriated accordingly. 
(c) In addition a Commodity Board must pay into the Fund money paid to 
the Board for the purposes of the Fund; amounts received by the Board from 
the sale of any property paid for with money from the Fund; or from the sale of 
any property purchased in the course of activity paid for with money from the 
Fund; or in respect of any world paid for with money from the Fund; and 
amounts received by the Board as interest from the investment of money 
standing to the credit of the Fund. 
(d) Except as otherwise provided by this Act, 
money that is 
in a 
Commodity Fund may, with the approval of a Commodity Council in respect 
of which the Fund was established, be spent only a) for the purpose of 
funding commodity development activities included in the broad groupings of 
activities specified in an annual operational plan prepared by the Council and 
in force when payments are made; b) in payment or discharge of expenses 
and liabilities incurred by the Board in the administration of the Fund; in 
payment of remuneration 
and allowances payable under this Act to the 
members of the Council; in payment or discharge of liabilities incurred by the 
Board as a result of entering into agreements on behalf of the Council; and in 
making payments in accordance with arrangements made between the Council 
and the Board, for services rendered by the Board for the Council at the 
Council's request. 
(e) the Board is liable to pay from 
a Commodity 
Fund 
amounts 
necessary to meet the expenses and discharge of liabilities, incurred by a 
Selection Committee in connection with the performance of its function, and the 
exercise of its powers, in relation to the selection of members for appointment 
to the Commodity Council in respect of which the Fund was established. 


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SECTION 18. Employees, consultants and administrative agreements 
- The Chairperson of a Commodity Council may on behalf of the Council 
employ persons to perform administrative and clerical services in connection 
with the performance of its functions and the exercise of its powers, and 
engage persons having suitable qualifications and experience as consultants 
to the council, under terms and conditions of employment to be determined 
by the Council. 
SECTION 19. Selection Committees - a) The Secretary must appoint 
on a part-time basis, a person as Presiding Member of Selection Committees 
for each Commodity Council. The Presiding Member shall hold office for a 
period not exceeding three years, subject to reappointment, specified in the 
instrument of appointment. 
b) For purposes of appointing the nominated directors of a Commodity 
Council or filling a vacancy caused by the resignation of or termination of the 
appointment of any such director, the Secretary must give a written notice to 
the Presiding Member of Selection Committees for that Commodity Council 
requesting the Presiding Member to establish a Selection Committee, 
specifying the period within which the Selection Committee must nominate 
persons, or a person, for appointment. 
c) Upon receipt 
of a request under paragraph b), 
the Presiding 
Member must establish a Selection Committee for the Commodity Council for 
the purpose of nominating a person or persons for appointment to the Council; 
give to each of the Council’s representative organizations written notice 
requesting the organization to nominate to the Secretary 
persons 
for 
appointment to the Selection Committee. 
d) The Selection Committee so established consists of the following 
members: The Presiding Member and 3 to 6 other members appointed by 
the Secretary on the nomination 
of 
the 
respective 
representative 
organizations. 


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e) Where the Secretary is satisfied that nominations for membership of 
a Selection Committee as provided for in paragraph C will not be made within 
a reasonable time, the Secretary may appoint persons to be members of the 
Selection Committee as if they had been so nominated. 
f) Where the Secretary is not satisfied that a person nominated for 
appointment should be appointed, he may reject the nomination and request 
another nomination. 
g) For the purpose of enabling it to make a nomination, the Selection 
Committee 
must invite 
nomination of persons for appointment 
by 
advertisements placed in a newspaper of general circulation; must invite 
nomination of persons for appointment from the representative organizations of 
the Commodity 
Council; 
and may invite 
nomination of persons 
for 
appointment in any other way it considers appropriate. 
h) A notice is to include a statement containing in respect of each 
nominee: details of the nominee's qualifications and experience and any other 
information relating to the nominee that the Selection Committee considers will 
assist the Secretary in deciding whether or not to appoint the nominee; and 
specifying how, in the Selection Committee's opinion, the nomination will best 
ensure that the members of the Council concerned collectively possess an 
appropriate balance of expertise in accordance with paragraph i). 
i) A Selection Committee must not nominate a person for appointment 
to a Commodity Council unless the person appears to the Selection Committee 
to be suitably qualified for appointment because of expertise in one of more of 
the following fields: commodity production; commodity processing; commodity 
marketing; conservation of natural resources; environmental and ecological 
matters; economics; 
development administration; 
finance; 
business 
management; and sociology. 
j) The Selection Committee is to nominate only one person in respect 
of each appointment to be made by the Secretary. In making the nomination, 


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the Selection Committee must choose from the available candidates the 
person who will best ensure that the members of the Council concerned 
collectively 
possess an appropriate balance of expertise 
in as many as 
possible fields 
referred to in paragraph i) having in regard to the particular 
primary industry or class of primary industries in respect of which the Council 
is to be established. 
k) A person may be nominated by a Selection Committee even if, on 
one or more previous occasions a proposal for a nomination for the person's 
appointment to a Commodity Council has been rejected at a meeting of a 
Selection Committee, or the Secretary has rejected such a nomination. 
I) The Presiding Member of the Selection Committee must as soon as 
practicable after every calendar year prepare and give to the Minister a 
report of the operations during the immediately preceding calendar year of 
Selection Committees established by the Presiding member or another person 
who was the Presiding Member of Selection Committees for the Commodity 
Council. A report for a calendar year may, subject to agreement between the 
Presiding member and the Chairperson of the Commodity Council concerned, 
be included as a discrete part in the Council's annual report for that calendar 
year. 
SECTION 20. Administrative Provisions. 
(a) Transfer of personnel, 
assets, etc. The personnel employed in 
connection with and the assets, liabilities, contracts, property, records, and 
unexpended balances of appropriations, authorizations, allocations, or other 
funds held, 
arising from or available or to be made available in 
connection with, the functions, powers and duties transferred by Sec. 9 of this 
Act are hereby transferred with such functions, powers and duties, respectively. 
used, 
(b) Employment, compensation, authority and duties of personnel. The 
Secretary is authorized, subject to the civil service and classification laws, to 
select, appoint, 
employ 
and 
fix the compensation of such officers and 


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employees, 
as shall be necessary to carry out the 
provisions of this Act and to prescribe their authority and duties: Provided, That 
any other provision of the law to the contrary notwithstanding, the Secretary 
may fix the compensation for ndt more than six (6) positions in the Department 
at the annual rate applicable to positions in level - 
provided by the Salary 
Standardization Law 
including attorneys, 
(c) Delegation of authority; rules and regulations. 
The Secretary may 
delegate any of his functions, powers and duties to such officers and employees 
of the Department as he may designate, may authorize such successive re- 
delegations of such functions, bowers and duties as he may deem desirable, 
and may make such rules and regulations as may be necessary to carry out his 
functions, powers and duties. 
(d) Temporary employment of experfs or consultants; 
compensation. 
The Secretary may obtain services at rates for individuals not the exceed the 
per diem equivalent to the highest rate for GS- 
of the Salary Standardization 
Law. The Secretary is authorized to enter into contracts with private companies 
for the provision of such managerial support to the Department as the Secretary 
determines to be appropriate, including by not limited to the management of 
corporate or cooperativized farms, the packaging of joint venture projects with 
foreign investors; and the penetration of overseas markets for resource-based 
products. 
(e) Financial transactions, 
finality; 
checking accounts for funds in 
Treasury; 
availability of funds for administrative expenses; 
consolidation of 
cash for banking and checking purposes. Except as such authority is otherwise 
expressly provided in any other Act administered by the Secretary, 
such 
financial transactions of the Secretary as the making of loans or grants (and 
vouchers approved by the Secretary in connection with such financial 
transactions) shall be final and conclusive upon all officers of the Government, 
Funds made available to the Secretary pursuant to any provision of law for such 


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financial transactions shall be deposited in a checking account or accounts with 
the Treasurer of the Republic of the Philippines. Such funds and any receipts 
and assets obtained or held by the Secretary in connection with such financial 
transactions shall be available, in such amounts as may from year to year be 
authorized by the Congress, for the administrative expenses of the Secretary in 
connection with such financial transactions. Notwithstanding the provisions of 
any other law, the Secretary may with the approval of the Budget Secretary, 
consolidate into one or more accounts for banking and checking purposes all 
cash obtained or held in connection with such financial transactions, including 
amounts appropriated from whatever source derived. 
(f) Fees and charges. Notwithstanding any other provision of law, the 
Secretary is authorized to establish fees and charges, 
chargeable against 
program beneficiaries and project participants, which shall be adequate to 
cover over the long run, 
costs of project supervision, review and financing 
service, 
audit by the Commission On Audit 
and other beneficial rights, 
privileges, licenses and other services. Such fees and charges heretofore or 
hereafter collected shall be considered non-administrative and shall remain 
available for the operating expenses of the Department in providing similar 
services on a consolidated basis. 
(8) Gifts and services, 
acceptance; 
taxable sfatus of properfy, 
investments; disbursement. The Secretary is authorized to accept and utilize 
voluntary and uncompensated services and accept, hold, administer and utilize 
gifts and bequests of property, both real and personal for the purpose of aiding 
or facilitating the work of the Department. Gifts and bequests of money and the 
proceeds from sales of other property received as gifts or bequests shall be 
deposited in the Treasury in a separate fund and shall be disbursed upon order 
of the Secretary. 
Property accepted pursuant to this paragraph and the 
proceeds thereof shall be used as nearly as possible in accordance with the 
terms of the gift or beauest. 


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For purpose of government income, estate and gift taxes, property 
accepted under paragraph (9) shall be considered as a gift or bequest to or for 
use of t.he Republic of the Philippines. 
Upon request of the Secretary, the Secretary of the Treasury may invest 
and reinvest in securities of the Philippine government or in securities 
guaranteed as to principal and interest by the 
Philippine government any 
moneys contained in the fund provided in. paragraph (e). Income accruing from 
such securities and from any other property held by the Secretary pursuant to 
paragraph (e) shall be depositea to the credit of the fund and shall be disbursed 
upon order of the Secretary. 
(j) Authorization of Appropriations; 
allocations for staff and training. 
Notwithstanding 
any other provisions of law, there is authorized 
to be 
appropriated for salaries and expenses to carry out the purposes of this section 
p--.- 
million which shall be available for each of the fiscal years 1998 and 
1999, which amounts shall be used to provide staff in regional field or zone 
offices of the Department to supervise the development of primary industries. 
Of the amounts authorized to be appropriated to carry out this section, 
not less that P__ 
million of such amount shall be available for each fiscal 
year exclusively for the purposes of providing ongoing training and capacity 
building for Department personnel. 
SECTION 21. Annual Reports. 
The Secretary shall as soon as 
practicable after the end of each calendar year, make a report to the President 
for submission to the Congress on the activities of the Department during the 
preceding calendar year. 
SECTION 22. Transitory Provisions. 
All officials and employees of 
the agencies 
mentioned in Sec. 6 of this Act 
shall be absorbed by the 
Department and shall continue in the service. Those who prefer to retire from 
the service, if qualified for retirement or to be laid off, shall be given gratuity 
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equivalent to one and one-fourth (1 'A) 
months gross pay for every year of 


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service, but in no case more than twenty-two months gross pay, in addition to 
all other benefits to which they are entitled under existing laws and regulations. 
For this purpose there is hereby appropriated the sum of 
pesos so 
much thereof as may be necessary, out of funds of the National Treasury not 
othetwise appropriated. 
SECTION 23. 
Repealing 
Clause. 
All laws, decrees, 
orders, 
proclamations and regulations or parts thereof inconsistent with the provisions of 
this Act are hereby repealed, amended or modified accordingly. 
SECTION 24. Separability of Provisions. 
Notwithstanding any other 
evidence of the intent of Congress, it is hereby declared to be the intent of 
Congress that if any provision of this Act or the application thereof to any 
persons or circumstances, 
shall be adjudged 
by any court of competent 
jurisdiction to be invalid, such judgment shall not affect, impair or invalidate the 
remainder of this Act, or its application to other persons and circumstances but 
shall be confined in its operation to the provision of this Act or the application 
thereof to the persons and circumstances directly involved in the controversy in 
which such judgment shall have been rendered. 
SECTION 25. Effectivity. This Act shall take effect fifteen (15) days 
after its publication in two (2) newspapers of general circulation. 
Approved,