2Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

EIGHTEENTH CONGRESS
Second Regular Session

HOUSE BILL NO. 7818

Introduced by HON. LUIS RAYMUND “LRAY” F. VILLAFUERTE, JR.

AN ACT ESTABLISHING THE PHILIPPINE CORN RESEARCH INSTITUTE AND
APPROPRIATING FUNDS THEREFOR

Article XIII, Section 5 of the Constitution assures us that the “State shall provide
support to agriculture through appropriate technology and research, and adequate
financial, production, marketing, and other support services”.

This measure seeks to actualize the said Constitutional guarantee by establishing the
Philippine Corn Research Institute. It recognizes the fact that corn is the most
important food next to rice. It is a staple food of 20% of the population. It is a
component of up to 75% of formulated feeds for livestock, poultry and aquaculture
fishery.

In 2018, the Philippines produced around 7,772,000 metric tons of corn. Around
600,000 households depend on it as a primary source of income. We should be able
to increase the productivity and quality of our com produce by establishing the
Philippine Corn Research Institute. It intends to equip our farmers to combat climate
change by enhancing their capability to continuously develop cutting-edge technology
and agricultural innovations.

The bill seeks to increase productivity and quality of our corn produce through modern
farm planting practices, harvesting, processing, and packaging techniques for the
domestic and global markets.

In view of the foregoing, the immediate passage of this bill is most earnestly sought.

at

LUIS IND F. VILLAFUERTE, JR.



Republic of the Philippines
HOUSE OF REPRESENTATIVES
Queson City

EIGHTEENTH CONGRESS
Second Regular Session

7818

HOUSE BILL NO.

Introduced by HON. LUIS RAYMUND “LRAY” F. VILLAFUERTE, JR.

AN ACT ESTABLISHING THE PHILIPPINE CORN RESEARCH INSTITUTE AND
APPROPRIATING FUNDS THEREFOR

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

Section 1. Short Title. - This Act shall be known as the Philippine Corn Research
Institute Act.

Sec. 2. Philippine Corn Research Institute. - The Philippine Corn Research Institute,
hereinafter referred to as PhilCorn, is hereby established as a body corporate attached
to the Department of Agriculture (DA) to modernize the corn industry and consequently
improve the livelihood and household income of resource-poor corn farmers in the
rainfed, upland, and dryland farming communities and to empower farmers with the
tools of science and technologies so that they can cope up with problems of low yields,
droughts, floods, land degradation, global warming, and other risks arising from
environmental and climate changes.

Sec. 3. Objectives. -The objectives and goals of this Act are as follows:
a) To develop and implement a strong, dynamic, and innovative farmer centered and

need-based national con research and development, technology sharing, training,
and extension programs;

b) To strengthen the national capacity for corn research and extension, modernize
production and utilization as well as industrial processing of corn and corn-based
crops, diversify harvests through sequential crops to sustain soil health and fertility
and thus enhance long-term higher productivity and household income;


c) To improve the livelihood and economic conditions of small-scale and resource
poor farmers who are growing corn after rainfed rice as well as in upland and dryland
farming ecosystems;

d) To work closely with regulatory agencies such as the BPI (i.e. National Seed Quality
Control Laboratory, NSQCL; Quarantine Division, and National Seed Industry Council,
NSIC), Bureau of Agriculture and Fisheries Standards (BAFS), and private
stakeholders (i.e, PhilMaize) and NGOs in the collection, conservation, and utilization
of endemic or traditional corn varieties as well as in the experimentation, planting, and
monitoring of corn hybrid and genetically engineered varieties;

e) To develop and implement sustainable and environment-friendly corn and com-
based farming systems in the vulnerable and marginal areas like sloping terrains and
evaluate those areas where crops other than corn may be more appropriate to grow;

f) To gather and provide reliable, up-to-date data to guide policy makers with regard
to corn improvement and development, import and export volumes, and develop
strong linkages among stakeholders in promoting the national corn industry;

g) To expand employment opportunities through corn and com-based farming
systems in the rural areas, and ultimately promote the general welfare of the people
through higher efficiency and profitability in production, industrial products
development, processing, and marketing;

h) To initiate and undertake such other related programs in consultation and
partnership with the DA-Bureau of Agricultural Research (DA-BAR), the DA regional
research centers (DA-RIARCs), the Philippine Council for Agriculture, Aquatic
Resources, Forestry, and Natural Resources Research and Development
(PCAARRD), State Colleges and Universities (SCUs), and the private sector.

Sec. 4. Principal and Regional Offices. - The PhilCorn shall have its principal office at
the Isabela State University or at any other suitable site as the Board of Trustees may
decide.

It may also establish other offices, branches, satellite offices, or subsidiaries in any
geographically suitable region in the Philippines that are major producers of corn and
as may be necessary or proper for the accomplishment of its purposes and objectives.

Sec. 5. Duties and Functions. - The PhilCorn shall exercise the following duties and
functions:

a) Unify, plan, fund, conduct, monitor, and evaluate corn research, development, and
technology promotion in different scientific and technological fields and programs,
including but not limited to the following thrusts: (1) germplasm collection,
conservation, breeding, and biotechnology; (2) natural resources management,
watershed conservation, drought adaptation and mitigation; (3) corn engineering, farm
mechanization, and postharvest management; (4) pest surveillance, early warning


system, integrated pest management, and biological control methods; (5) socio
economics, impact assessment, and policy advocacy; (6) technology packaging and
demonstration, promotion and deployment, training and communication; (7)
processing and industrial-chemical products development; and (8) corn- based
farming systems, farm management improvement, and experiment station
development.

b) Unify, lead, fund, and coordinate a national network of corn and corn-based farming
systems research and extension agencies, centers, and stations located in the
different agro-ecological regions of the country where corn is a major crop;

c) Develop technologies suitable for the rainfed, upland, and dryland agro-ecosystems,
that will maximize the productivity and quality of locally grown corn and corn-based
crops while also reducing production costs and ensuring long-term and sustainable
corn and corn-based production systems through genetic improvement and
environmental resources and conservation measures;

d) Enhance income of corn farmers by developing suitable corn-based crops and
livestock farming systems as well as crop rotations where applicable; value-adding
corn technologies including on-farm verification, processing, packaging, marketing,
and promotion of economically viable technologies as well as entrepreneurial skills,
giving emphasis on those aspects necessary for group endeavors of small-scale
farmers, cooperatives, and seed growers;

e) Develop databases needed in the identification and preparation of necessary policy
recommendations towards efficient, highly productive and competitive corn industry
and corn-based farming systems through appropriate socio-economic measures and
public-private sector mobilization and participation;

f) Organize and develop strong training and communication programs for corn and
corn-based farming systems scientists, research managers, and extension specialists
to enable them undertake effective and timely technology promotion of packaged
technologies among clusters of farmers and corporate growers by utilizing modern
extension systems such as information, education, and communication (IEC)
technology and participatory social mobilization procedures;

g) Publish and disseminate research and extension findings and recommendations
through scientific journals, books, technical and extension bulletins, videos, and other
print and communication channels.

Sec. 6. Corporate Powers. - The PhilCorn shall exercise the following corporate
powers:

a) Exercise all the powers of a corporation under the general corporation law, in so far
as such powers are not inconsistent with the provisions of this Act;

b) Enter into, make and execute contracts and agreements of any kind or nature, and
to sue and be sued in its corporate name;


c) Borrow funds and obtain loans from all sources, whether local or foreign and
whether government or private, to help finance its research programs and its capital
and operating expenditures, or support to farmer entrepreneurial activities;

d) Invest in, purchase or otherwise acquire, own, lease, mortgage, pledge, sell, assign,
convey, exchange, encumber, borrow, or otherwise deal in real and/or personal
properties of whatever kind and nature, or any interest therein, including shares of
stock, bonds, notes, securities, and other evidences of indebtedness of natural or
juridical persons, whether domestic or foreign and whether government or private;

e) Receive and acquire from any person, government and private entities, whether
foreign or domestic, or from any corporation, partnership, association or other entity
such characters, licenses, franchises, rights, privileges, concessions, assistance,
grants, donations, loans, and contributions consisting of such properties, real or
personal, including funds and valuable effects, as may be useful, necessary or proper
to finance its research, capital and operating expenditures or otherwise carry out its
purposes and objectives, and to administer the same in accordance with the terms
and agreement consistent with its purposes and objectives; and

f) Acquire from the government, whether national or local or from any person,
corporation, partnership, association or other entity, such characters, franchises,
tights, privileges, assistance, financial or otherwise and concessions as may be
conducive to and necessary or proper for the attainment of the purposes and
objectives of PhilCorn.

Sec. 7. Board of Trustees. - The Board of Trustees, hereinafter referred to as the
Board, shall exercise all the corporate functions and powers of the PhilCorn and shall
control all its businesses, activities, and properties that are relevant to the goals and
functions of the Institute.

The Board shall be composed of the Secretary of Agriculture or his designate as ex-
officio Chairperson and fourteen (14) members from the following agencies and
sectors:

a) Executive Director of the Philippine Council for Agriculture, Aquaculture, Forestry,
and Natural Resources Research and Development (PCAARRD) of the Department
of Science and Technology (DOST) who will act as Co-Chairperson;

b) Director of the Bureau of Agricultural Research (BAR) who will act as Vice-
Chairperson;

c) Regional Executive Director (RED) representing the DA Regional Field Offices (DA-
RFOs);

d) Undersecretary of the Department of Budget and Management (DBM);

e) Director of the Agriculture Division of the National Economic and Development
Authority (NEDA);

f) Director of the DA-Philippine Council for Agriculture and Fisheries (DA-PCAF);

g) two (2) University Presidents from the State Universities and Colleges (SUCs)
representing major corn producing and corn based agriculture regions;

h) four (4) private sector representatives, namely: one each from among the national
outstanding corn farmers, farmers’ organizations or federations (Philippine Maize


Federations, Inc.), private companies engaged in corn research and seed production,
and the livestock/poultry industry; and

i) two (2) distinguished scientists from the public and private sectors.

The credentials of private sector representatives shall be evaluated and scrutinized by
competent members of the Board.

b) The term of office of the members of the Board who are heads or officials from their
respective agencies or institutions shall be co-terminus with their respective
appointments; Provided, however, That the term of office of the Regional Executive
Director who represents the DA-RFOs where corn is a major crop and the four (4)
private sector representatives shall be for five years without prejudice to a
reappointment for another five years based on merits and excellent performance in
the Board. The PhilCorn Executive Director shall serve as Secretary of the Board. All
government officials in the Board shall serve as ex-officio members and shall not
receive any salary or compensation.

c) The Chairperson, Co-Chairperson, Vice-Chairperson, and members of the Board
shall receive per diem, as the Board may determine, for each Board meeting actually
attended; Provided, however. That such members shall also be entitled to
reimbursable transportation and representation allowances in going to and coming
from board meetings and in transacting official business for the Institute.

d) The Board shall meet regularly at least once every quarter or as often as the
exigencies of the service demands. The presence of the Chairperson, Co-Chairperson
or Vice-Chairperson and at least seven members of the Board shall constitute a
quorum and the majority vote of the members present, there being a quorum, shall be
necessary for the adoption of any resolution, rule, regulation, decision or any other act
of the Board.

Sec. 8. Powers and Functions of the Board. - The PhilCorn Board shall exercise the
following powers and functions:

a) Adopt its by-laws and promulgate policies, rules, regulations, and procedures for
the efficient and effective operations of the Institute;

b) To define and guide in the formulation of the vision, mission, strategy, and research-
extension priorities, general plans and programs, and guidelines for the proper
operation and management of the PhilCorn in accordance with its purposes and
objectives and in line with research planning and monitoring policies and procedures
of PCAARRD and BAR;

c) To approve the PhilCorn's organizational structure and staffing pattern, operation
and capital expenditures, and financial budget prepared in accordance with its
corporate plans;

d) To approve the plantilla and salary ranges, benefits, privileges, bonuses,
scholarship and manpower development, housing facilities and support to staff, and
other terms and conditions of service, including promotion systems similar to those in
the State Universities and Colleges (SUCs) and the Department of Science and


Technology (DOST) as well as life and medical insurances and retirement schemes
or benefits for all officers and employees of the PhilCom, upon recommendation of the
Executive Director;

e) To appoint, promote, transfer, suspend, remove or otherwise discipline any
subordinate officer or employee of the Institute, upon recommendation of the
Executive Director;

f) To create such committee or committees and appoint the members thereof, as may
be necessary and proper for the management of the PhilCorn or for the attainment of
its purposes and objectives; and

g) To exercise such other powers and functions and perform such other acts as may
be necessary or proper for the attainment of the purposes and objectives of the
PhilCor, or as may be delegated by the Secretary of Agriculture or any competent
authority through the Board of Trustees.

Sec. 9. Executive Director and Other Officers. - The PhilCorn shall be headed by an
Executive Director who shall be appointed by the President of the Philippines, upon
recommendation of the Board of the Trustees (BOT), based on the findings and
recommendations of a Search Committee duly organized and commissioned by the
Board for such purpose.

a) The Executive Director shall serve for a term of five (5) years, subject to a one term
extension of five (5) years for very meritorious performance, or a maximum total of ten
(10) years without further extension for any reason whatsoever; Provided, however,
That there shall be a reserved plantilla position of the same salary rate for the outgoing
Executive Director, if he is previously a holder of a plantilla position at PhilCorn and
shall not yet be of retirement age at the end of his term as Executive Director;
Provided, further, That the Board of Trustees, through a Search Committee duly
organized at least four (4) months earlier, shall have chosen a new Executive Director
who shall immediately assume office during a turn-over ceremony on the expiration
date of the term of office of the outgoing Executive Director; and Provided, finally, that
no Officer-in-Charge shall be designated as head of the Institute.

b) The Executive Director shall be assisted by two (2) Deputy Executive Directors,
Division Heads, and Branch Station Directors or Managers as the Board may
determine, to carry out the purposes and objectives of the PhilCorn.

Sec. 10. Powers, Functions, and Duties of the Executive Director. - The Executive
Director shall be directly responsible to the Board and shalll have the following powers,
functions, and duties;

a) To exercise dynamic leadership, create a vision, map out the mission, provide
strategic direction, and undertake systematic supervision over the planning and
implementation of all research, development, technology sharing programs, training
and extension, upgrading of scientists and staff of the Institute and, in general,


administer and direct the management and operation in a transparent and corrupt-free
administration of the PhilCorn;

b) To execute all contracts, incur obligations, acquire and dispose of assets, and
deliver documents on behalf of the PhilCorn within the framework of the authority
delegated by the Board;

c) To implement and enforce policies, decisions, orders, rules, and regulations that
are promulgated or adopted by the Board;

d) To arrange for the conduct of an External Program and Management Review
(EPMR) by a Panel of Experts every 5 years or as often as necessary in order to
understand the output and impact of PhilCorn programs to the farmers and
stakeholders of the corn industry and to provide guidance to management in charting
the future of the institute; and

e) To exercise such other powers and functions and performs such other duties as
may be authorized, assigned, or delegated by the Board.

Sec. 11. Technical Advisory Committee. - A Technical Advisory Committee (TAC),
organized and approved by the Board, shall assist the Executive Director, Division
heads. Program Directors, and Branch Station Directors or Managers in pursuing
inter-agency activities and participation of the national RD&E network,

The TAC shall be composed of not more than nine (9) members, or as the Board may
designate, who are heads, representatives, or scientists and experts of agencies,
government or private, that are actively involved in any critical aspect of corn research,
corn-based farming systems, seed quality certification, training and extension,
production and processing, marketing and consumption, policy advocacy, and
capacity building. TAC members may be assigned to assist specific programs,
divisions, or branch stations as the services may require in achieving the goals of
PhilCor.

Sec 12. Services of Government Personnel. - The PhilCorn may, for the purpose of its
research, development, training, and extension activities, obtain and secure the
services of scholars and scientists as well as specialists in research, training,
extension, and communication of any unit, experiment station, institute or center of the
Department of Agriculture, University of Southern Mindanao, Central Mindanao
University, Visayan State University, University of the Philippines Los Banos, Mariano
Marcos State University, Isabela State University, Central Luzon State University, and
other agencies and universities of the national government and foreign institutions.

Those personnel of national and international reputations, from public or private
institutions, shall be designated as visiting scientists and research fellows for a term
of one year to five years to assist in conducting major research problems of strategic
importance and consequences in pursuing the goals and objectives of the Institute.
The selected personnel may be paid such honoraria or incentives acceptable to all
concerned and as may be fixed and authorized by the Board.


Sec. 13. Buildings, Facilities, and Equipment -The PhilCom is hereby authorized to
own, acquire, borrow, lease, plan, and construct or repair buildings, laboratories,
experimental farms, and other facilities as may be necessary or proper to attain its
purposes and objectives. It may also utilize facilities of any unit of any cooperating
SUC, the Department of Agriculture, and of the national government that is engaged,
directly or indirectly, in activities that relate to agriculture, farming systems, corn
production or products development of the corn industry.

The PhilCorn is further authorized to purchase equipment, materials and articles,
either locally or abroad, as may be necessary or proper to carry out its powers and
functions and attain its purposes and objectives.

It shall be exempted from the payment of any and all forms of taxes, duties, fees and
charges on any and all such importation of equipment, materials, articles, and
services; Provided, however, that the same are not available locally on favorable
terms.

The PhilCor shall be authorized to expropriate lands for com and corn based farming
systems research and development purposes provided that just compensation is paid
to the owners of the land. If the land belongs to the government or is inalienable, the
Institute is granted automatic title to the land.

Likewise, all lands, farms, plantations, whether directly or indirectly owned, used,
utilized or administered by the PhilCorn and those that it may hereinafter acquire or
utilize for research, training, extension and technology demonstration, and seed
production purposes shall be exempted from the coverage of the Comprehensive
Agrarian Reform Law.

Sec. 14. Appropriation. - The Secretary of Agriculture and the Secretary of Budget and
Management are hereby authorized and directed to set aside out of the existing funds
of the Department of Agriculture the amount of Four Hundred Million Pesos (P400M)
as the initial fund of the PhilCorn for CY 2020 to be used for its initial operations,
including provisions for salary of personnel, conduct of research and technology
promotion, construction of laboratories and other physical infrastructures, purchase
and development of experimental farms, and acquisition and purchase of equipment.
for laboratories, farm development, and offices. This initial amount shall be drawn from
the DA National Corn Program, BAR appropriations for research, RP-Japan Fertilizer
Grant (KR-2), Public Law PL 480 (PL480), and/or any other existing bilateral funding
sources in the Department of Agriculture. Thereafter, the government contribution to
the Institute's operations shall be provided for under its own Key Budgetary Inclusion
(KBI) in the Annual General Appropriations Act.

Furthermore, the PhilCorn Board of Trustees shall seek financial support from foreign
donors such as Japan International Japan Agency (JICA), Korean International
Cooperation Agency (KOICA), Australian Agency for International Development
(AusAID), United States Agency for International Development (USAID), and similar
institutions for the establishment and improvement of PhilCorn infrastructures,
laboratory facilities, field experiment station development, and training and scholarship


of qualified personnel. The annual appropriations herein provided shall be subject to
the fiscal control and management procedures provided for in Executive Order 714 of
1981. All funds, savings, grants, and income of the PhilCorn shall constitute a
revolving fund, to be managed as Trust Fund, and shall be considered part of the funds
automatically released to the PhilCorn.

Sec. 15. Applicability of Civil Service Laws. -The PhilCorn and its officers and
employees shall be subject to the Civil Service Law, rules and regulations; Provided,
however, That all technical personnel shall be selected on the basis of the highest
standards of merit and fitness for public officials and employees, preferably those with
postgraduate degrees, to be determined in accordance with such policies and
guidelines as may be approved by the Board.

Sec. 16. Auditor. - The Chairperson of the Commission on Audit (COA) shall be the
Ex- Officio Auditor of the PhilCorn. For this purpose, he may appoint a representative
who shall be the auditor of the PhilCorn, together with the necessary personnel to
assist the COA representative in the performance of his duties.

Sec. 17. Legal Counsel. - The Government Corporate Counsel shall be the Legal
Counsel of the PhilCorn; Provided, however, That the PhilCorn may establish its own
legal unit, subject to the supervision and control of the Government Corporate
Counsel, to handle the day-to-day legal matters affecting the affairs of the PhilCorn.

Sec. 18. Annual Report. - The Board shall submit to the President of the Philippines
through the Secretary of Agriculture an annual report, together with the audit report on
the relevant accounts, generally dealing with the activities and operations of the
PhilCom.

Sec. 19. Separal Clause. - The provisions of this Act are hereby declared
separable. If any portion hereof shall be held invalid or unconstitutional, such invalidity
or unconstitutionality shall not affect the other provisions, which shall remain in full
force and effect in their entirety.

Sec. 20, Effectivity. - This Act shall take effect within fifteen (15) days from its
publication in the Official Gazette or in any national newspaper of general circulation.

Approved,