SEVENTEENTH CONGRESS OF THE )

REPUBLIC OF THE PHILIPPINES )
Third Regular Session )
RE ZZ
SENATE <
s.N.__1913

Introduced by Senator Cynthia A. Villar

AN ACTTO FURTHER STRENGTHEN THE PHILIPPINE COCONUT AUTHORITY,
REPEALING PD NO.1468 OTHERWISE KNOWN AS THE REVISED COCONUT
INDUSTRY CODE OF 1978, AS AMENDED

EXPLANATORY NOTE

In order to make the Philippine Coconut Authority responsive to the
needs of its constituency by way of granting better and improved
benefits to the 3.5 million coconut farmers, strengthening the coconut
industry making it competitive, safeguarding the almost P100-billion —~
coconut levy funds by creating the Coconut Farmers and Industry
Trust Fund (CFITF), and providing for its management and utilization
together with its yearly government subsidy, this bill seeks to introduce

an increased representation of coconut farmers in the reconstituted
PCA Board that will ensure that the protection of farmers’ interest in

the agency's decision-making process.

In view of the foregoing, the early approval of the bill is earnestly

sought. VV
CYNTHIA A. VILLAR

SENATOR



SEVENTEENTH CONGRESS OF THE )
REPUBLIC OF THE PHILIPPINES )
Third Regular Session )

18 AUG -6 PI2 37
SENATE

S.N.__ 19138 ec a

Introduced by Senator Cynthia A. Villar

AN ACT TO FURTHER STRENGTHEN THE PHILIPPINE COCONUT
AUTHORITY, REPEALING PD NO.1468 OTHERWISE KNOWN AS THE
REVISED COCONUT INDUSTRY CODE OF 1978, AS AMENDED

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

ARTICLE |
TITLE AND POLICY OF THE STATE

Section 1. Short Title. - This law shall be known as the “Reconstituted
Philippine Coconut Authority Board Law".

Section 2. Declaration of Policy. — It is hereby declared the policy of
the State to promote the integrated development and growth of the
coconut industry in all its aspects and to ensure that the coconut
farmers become direct Participants in, and beneficiaries of, such
development and growth through increased farm income and
productivity by modernizing and making competitive the coconut
industry.

ARTICLE I
THE PHILIPPINE COCONUT AUTHORITY

Section 1. The Philippine Coconut Authority shall continue to be an
independent public corporation with principal office in the National
Capital Region with branches and agencies within the country as
may be necessary for the Proper conduct of its business. As a
Government Owned and Controlled Corporation it shall follow the
Provisions of Republic Act 10149, otherwise known as “An Act to



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Promote Financial Viability and Fiscal Discipline in Government-
Owned or Controlled Corporations and to Strengthen the Role of the
State in its Governance and Management to Make Them More
Responsive to the Needs of Public Interest and for Other Purposes” of
May 2011. PCA retains its classification under Land and Water
Resources Sector of the Governance Commission for GOCCs (GCG).
As such the performance and relevance of the Authority is also
evaluated by the GCG.

Section 2. Power. The Authority shall have the following powers and
functions:

ron
b.

Prepare and adopt the PCA's annual budget;

Formulate and implement a_ general program of
development for the coconut and other palm oil industry in
all its aspects;

. Formulate and implement a nationwide replanting program

using high-yielding hybrid seed nuts;

. Make available, for free, to coconut farmers the hybrid

coconut planting materials;

- Conduct researches for varietal improvements;
. Undertake extensive research and programs for farmers in

the prevention, control, and eradication of coconut diseases
and pests;

. Fertilize and/or replace senile coconut trees as needed;
. Promote the development of new coconut products and

by-products and all derivatives of coconut oil locally and
internationally;

Keep and yearly update a coconut farmers registry;

In coordination with other government agencies provide
extension services to coconut farmers for better farming
techniques, modern technologies and mechanization;

. Promote integrated farming system to coconut areas by

introducing intercropping (cacao, coffee, high value crops)
and livestock raising.

Promote the empowerment of coconut farmers Qs groups,
associations and cooperatives to facilitate network,
economies of scale and farm support mechanism such as
shared facilities and infrastructure program;

m. Promote the establishment of coco hubs for farmer

organizations;



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n. Establish a credit program through LandBank and
Development Bank of the Philippines for coconut farmers;

o. Establish a system of providing scholarship and health
benefits to farmers and their dependents;

Pp. Promote the disposition or utilization of the Trust Fund or any
Portion thereof in accordance with the Coconut Farmers
and Industry Development Plan;

q. Regulate the marketing and the exportation of copra and its
by-products by establishing standards for domestic trade
and export; to conduct inspection of all copra and its by-
Products for exports to determine conformity to the
standards so established. (retained from P.D. 1468)

r. Exercise such other powers as may be necessary and proper
for the effective implementation of its mandate.

Section 3. Governing Board. - The corporate powers and duties of
the Authority shall be vested in and exercised by a Board of eleven
(11) members as follows:

a. Four (4) representatives of the government, the Secretary of the
Department of Agriculture (DA) as the Chairperson; the
Secretary of the Department of Finance (DOF) as the Vice
Chairperson; and as members, the Secretary of the
Department of Budget and Management (DBM), and the
Administrator of the PCA who will be appointed by the
President;

b. One (1) representative from the coconut industry; and

c. Six (6) representatives from the coconut farmers sector, divided
into two (2) representative each for the island groups of Luzon,
Visayas and Mindanao, as members, Provided, that the six (6)
representatives from the coconut farmers sector must be
Filipino citizens, registered with the Coconut Farmers Registry,
have considerable experience and reputable track record in
Promoting coconut farmer's interest and welfare, and
nominated by coconut farmers organizations or cooperatives
that are active for the past three (3) years in the farmers
organizations and development or community enterprise
development. They shall be appointed by the President from a
shortlist of four (4) nominees from each iskand grouping, as
submitted by the PCA Board. They shall hold a term of three (3)
years, and may be reappointed one. Any appointment to fill
the vacancy arising from death, removal, retirement or



resignation of the representative of the coconut farmer sector
shall only be for the unexpired term.

Within thirty days following the effectivity of this Act, the PCA
shall promulgate a nomination and screening process of
nominees as representatives of the coconut farmers sector in
the PCA in consultation with the coconut farmers’ organization.

Section 4. The PCA shall execute a reorganization plan and create
a dedicated unit for the planning, monitoring and evaluation of the
CFITF funded programs and report annually their accomplishments
and performance to both Houses of Congress and publish the same
in the PCA website;

PCA shall submit a Board approved reorganization Plan and staffing
pattern to the GCG and the Department of Budget and
Management for review and approval.

The personnel complement of the PCA shall be provided for in the
General Appropriations Act.

Section 5. The chief executive officer of the Authority shall be the
administrator assisted by such Deputy Administrators as the Board
may prescribe, all of whom shall be appointed, or removed, by the
Board and delegated with such powers and duties as it may
prescribe.

All officers and employees of the Authority shall be selected and
appointed by the Board on the basis of merit and fitness. (retained
from P.D. 1468)

Article Ill
MISCELLANEOUS

Section 1. Congressional Oversight. A Congressional Oversight
Committee to be called Coconut Farmers and Industry Fund
Oversight Committee, composed of five members each from the
House of Representatives and the Senate shall exercise oversight
and shall watch over how the PCA shall implement this Act.



Section 2. Separability Clause. - If any provision of this Act is
declared unconstitutional, the same shall not affect the validity and
effectivity of other provisions thereof.

Section 3. Repealing Clause. Presidential Decree 1468 as
amended is hereby repealed. All laws, decrees, orders, and
issuances or portions thereof, which are inconsistent with the
provisions of this Act, are hereby repealed, revoked, amended or
modified accordingly.

Section 4. Effectivity. - This Act shall take effect fifteen (15) days
following its publication in the Official Gazette or at least two
newspapers of general circulation.

Approved.