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BATAS PAMBANSA BILANG. 21BATAS PAMBANSA BLG. 21 - AN ACT
PROVIDING FOR THE ACCELERATED DEVELOPMENT OF THE PHILIPPINES DAIRY
INDUSTRY AND FOR OTHER PURPOSES
Section 1. Title. — This Act shall be known as "The Dairy
Industry Development Act of 1979"
Sec. 2. Objectives. — The objectives of this Act
are:
a. To promote production of and achieve
self-sufficiency in milk and milk products for the proper nutrition of
the Filipino people;
b. To generate employment and increase the level of
income in the rural areas through diary production; and
c. To conserve foreign exchange.
Sec. 3. Powers and Functions of the Ministry of
Agriculture. — The Ministry of Agriculture, hereinafter referred to as
the "Ministry", shall be the principal agency of the government in
providing direction for the accelerated growth and development of a
rural-based, small-farmer oriented dairy industry, in providing or
helping to provide production, processing and marketing facilities and
services so as to insure an adequate supply of locally-produced milk
and milk products at reasonable prices to consumes, and in promoting
the active participation of the private sector in the development of an
indigenous dairy industry.
To achieve the purposes and objectives of this Act, the Ministry of
Agriculture, directly or through the Bureau of Animal Industry and its
other agencies and instrumentalities, shall, in addition to its present
powers and functions under Republic Act Numbered Four thousand
forty-one as amended, exercise the following powers and functions:
a. To coordinate, integrate, and supervise the
policies, programs, and activities of the different sectors involved in
the development of an indigenous dairy industry;
b. Subject to pertinent laws governing public debts
and expenditures and the final approval of the Prime Minister, to raise
and obtain funds from local and international financial institutions
for the funding of the various aspects of the diary development
program, and to help design and implement a credit system that will
finance dairy farmers and dairy cooperatives or associations;
c. To charge reasonable fees for services rendered
for the attainment of the objectives of this Act;
d. To promulgate rules and regulations to carry out
the provisions and objectives of this Act; and
e. To perform such other functions and exercise such
other powers as may be necessary or incidental to carry out the
objectives of this Act.
In no case shall the Ministry exercise its powers to give undue
business advantage to the Philippine Dairy Corporation hereafter
created or to any its subsidiaries or affiliates.
Sec. 4. Creation of Corporation. — There is hereby
created the Philippine Dairy Corporation, hereinafter referred to as
the "Corporation", which shall, for the purpose of policy and program
coordination, be attached to the Ministry of Agriculture.
Sec. 5. Purposes of the Corporation. — The
purposes of the Corporation shall be as follows:
a. To engage in a carry on the business of producing,
manufacturing, processing, purchasing and selling, importing and
exporting, handling and distributing, bartering or otherwise dealing in
and with dairy animals and other dairy farm inputs, facilities, and
equipment, milk and dairy products, the primary objective of such
activities to increase local milk production, with immediate priority
emphasis on the increased production of fresh milk and the local
marketing thereof to the extent acceptable to consumers rather than,
and in order to gradually reduce dependence on, powder-based milk for
import substitution: Provided, however, That, in carrying out said
purpose, and before undertaking business activities on a nationwide
scale, the Corporation, where necessary, shall coordinate with the
Ministry of Agriculture in the establishment of a modest pilot program
in one or two suitable dairy development zones to experiment on the
multifarious aspects of milk and dairy production, manufacturing,
collection, processing, marketing, transport and distribution, product
quality, extension services and other exposures in commercial dairying,
while developing management and technical expertise, as well as
correcting and adjusting systems therefor: Provided, finally, That the
corporation or its affiliates or subsidiaries shall engage only in
those areas of the dairy industry where the private sector has not
adequately engaged in, or where it has not yet substantially supplied
the measured capacity of the areas concerned and, in the judgment of
the Ministry, after due hearing, is unable or unwilling within a
reasonable period of time to do so and, in such sector where it has so
engaged, only to the extent of supplying the deficiency. The definition
of measured capacity shall be that contained in Sec. 2 (j) of
Presidential Decree No. 1159, where applicable.
Sec. 6. Powers and functions. — The Corporation
shall, in addition to those provided under the Corporation Law, have
the following powers and functions:
a. To construct, equip, manage, operate, lease,
purchase or sell dairy production facilities and equipment, dairy
refrigeration facilities and storage equipment, milk distribution
facilities, laboratories, or other facilities and equipment necessary
for the production, collection processing, quality control, storage,
transport, distribution and sale of milk and dairy products;
b. To produce, store, transport, distribute, buy,
sell, or otherwise trade in milk and dairy products;
c. To buy, import, propagate, store, distribute and
sell dairy animals, semen, feed, forage seeds, fertilizers, veterinary
supplies, dairy equipment and engineering supplies and such other
inputs as may be needed by the dairy industry;
d. To borrow, raise, or obtain funds, to issue bonds
and other instruments of indebtedness, or to enter into any financial
or credit arrangement in order to support or carry out its objectives
and purposes, subject to pertinent laws governing public debts and
expenditures;
e. To receive grants, subsidies, donations, or
contributions from corporations, trusts, foundations, associations and
other private sources and from any government office, agency or
corporation;
f. To establish, maintain or operate branches of
offices in other parts of the Philippines or abroad as the purposes of
the Corporation may require; and
g. To perform such other acts as may be necessary to
attain its corporate purposes and the objectives of this Act.
Sec. 7. Domicile and Corporate Existence of
Corporation. — The corporation shall have its principal office in
Metropolitan Manila and shall exist for a term of fifty years from the
dates of the approval of this Act.
Sec. 8. Capitalization. — The Corporation shall
have an authorized capital stock of One Hundred Million Pesos
(P100,000,000) divided into 100,000 shares with a par value of One
Thousand Pesos (P1,000) per share to be subscribed and paid for by the
Government of the Republic of the Philippines.
For this purpose, there is hereby appropriated the sum of Five Million
Pesos (P5,000,000) out of the sum already appropriated in Batas
Pambansa Blg. 1, Activity No. 2.2.22 in the appropriations for the
Ministry of Agriculture, as payment for the first five thousand (5,000)
shares which may be used for the initial capitalization of the
Corporation, subject to the approval of the Prime Minister and the
provisions of Presidential Decree No. 1177 and other pertinent budget
laws. Payments for the remaining unpaid subscription shall be
considered in the General Appropriations Act for subsequent calendar
years as part of the budget for corporate equity investment funds.
Sec. 9. Board of Directors. — The Corporation
shall be governed by a Board of Directors, composed of the following:
a. Minister of Agriculture, as Chairman;
b. Minister of Natural Resources;
c. Minister of Finance;
d. Minister of Industry;
e. Minister of Trade;
f. President of the Corporation; and
g. Three (3) other members from the private sector to
be appointed by the Prime Minister of a term of three (3) years:
Provided, That one of the three (3) members from the private sector
shall be chosen from among the leaders of duly-registered cooperatives
and organizations of small dairy farmers and producers as referred to
in Sec. 3 and 12 herein.
In case any Minister is unable to assume office for whatever reason,
the Prime Minister shall designate any government official to that
vacant position.
In case of vacancy in the Board from the private sector, the same shall
be filled by the Prime Minister for the unexpired term.
No person shall be appointed as member of the Board unless he is a
citizen of the Philippines, at least 21 years old, of established
integrity and competence, and is not disqualified by any provision of
law, rules, and regulations.
Sec. 10. President and staff of Corporation. — The
corporation shall be headed by a President who shall act as its chief
executive officer. He shall be appointed by the Board of Directors of
the Corporation and shall not hold any other position incompatible with
his office. His compensation, allowances and emoluments shall be fixed
by the Board.
The corporation shall appoint and maintain its managerial, technical
and administrative staff. Managerial and technical positions shall be
exempt from the Office of Compensation and Position Classification
coverage but shall fall under Sec. 6 of Presidential Decree No. 1579
as well as other pertinent Civil Service, Budget and Compensation Laws.
Sec. 11. Subsidiaries and Affiliates. — Subject to
the approval of the Prime Minister, the Corporation may organize
subsidiaries or affiliate companies under the Corporation Law whose
capital stock may be subscribed in whole or in part by the Corporation,
for the purpose of engaging in the production, processing, storage,
transport, distribution, purchase or sale of dairy products and other
inputs as may be required by the dairy industry.
Sec. 12. Dairy Cooperatives and Farmers
Organizations. — The Ministry of Agriculture shall help organize small
producers of milk into cooperatives pursuant to the provisions of
Presidential Decree No. 175 or other forms of organizations and assist
duly accredited existing farmers' organizations to achieve the purposes
of this Act including the following:
1. To facilitate the marketing of milk products with
emphasis on the establishment of milk collection facilities;
2. To enable the members to acquire dairy animals,
feeds, veterinary and other supplies, materials, equipment, services of
all kinds and other dairy inputs under a collective arrangement and
thus take advantage of economies of scale; and
3. To provide a forum for the members to discuss
common problems affecting not only production and marketing but also
their relationship with the Ministry of Agriculture, the Corporation or
its affiliates.
The corporation is further empowered to provide loans, grants, and such
services as may be required, to dairy cooperatives and duly accredited
farmers' organizations.
Sec. 13. Power to Establish and Operate Subsidy
Schemes. — With the approval of the Prime Minister, the Ministry of
Agriculture is empowered to establish and operate any subsidy scheme
that the government deems appropriate for milk production, processing,
transportation and distribution, including the sale of dairy animals to
small farmers at reduced prices below market or book value, the
procurement of raw liquid milk at price-support levels profitable to
milk producers, the sale of milk and dairy products to consumers at
reasonable prices, and such other schemes as may be in favor of dairy
farmers, dairy cooperatives and consumers of dairy products.
Sec. 14. Export and Import Regulations. — The
Ministry of Agriculture, after hearing and to the extent that local
dairy production may justify, may subject to the approval of the Prime
Minister, regulate the importation and exportation of dairy animals,
raw materials and other products necessary for the manufacture or
processing of milk and dairy products.
Sec. 15. Tax Exemption on Donations, Grants, and
Bequests. — The Ministry of Agriculture is empowered to receive
donations, grants, and bequests, and to utilize the same for the
attainment of the objectives of this Act under such terms and
conditions as may be determined by the Ministry. Such donations grants,
and bequests shall be exempt from the payment of transfer taxes and
shall be fully deductible from the gross income of the donor or grant
for income tax purposes.
Sec. 16. Rule-making Power. — The Ministry may
promulgate, adopt, amend or repeal such rules or regulations necessary
to implement the intent and purposes of this Act. such rules and
regulations shall be submitted to the Prime Minister for his approval.
Upon approval, the same shall have the force and effect of law and
shall take effect thirty days following the completion of its
publication in the Official Gazette.
Sec. 17. Credit Facilities. — The Central Bank
shall adopt such monetary and re-discounting policies as may be
designed to encourage rural banks, savings and loan associations,
commercial banks and other credit institutions to meet the financing
and credit needs essential to achieve the objectives of this Act.
In addition, the Philippine National Bank, the Land Bank of the
Philippines, and the Development Bank of the Philippines shall design
and establish special lending programs for small dairy farmers and
dairy cooperatives.
Sec. 18. Auditor. — The corporation shall have an
auditor and complementary personnel who shall be appointed by the
Commission on Audit in accordance with the Civil Service Law. The
salaries and other forms of compensation of the auditor and the staff
shall be based on the National Position Classification and Compensation
System and shall be subject to such rules and regulations as may be
established pursuant to law. Said salaries and all other expenses of
the office of the auditor shall be charged against the funds of the
Corporation in the manner provided for under Presidential Decree No.
1445. The auditor and personnel may be removed only by the Commission
on Audit.
Sec. 19. Funding. — For Calendar Year 1979, an
amount not exceeding the sum of Thirty Million Pesos (P30,000,000.00)
already appropriated in Batas Pambansa Blg. 1, Activities No. 2.2.22 in
the appropriations for the Ministry of Agriculture may be used for the
implementation of this Act, subject to the approval of the Prime
Minister of the Philippines and such other conditions as may be
established by law.
Sec. 20. Penalty Clause. — Any person who violates
any provision of this Act or of the rules and regulations issued by the
Ministry of Agriculture pursuant thereto shall, upon conviction by a
competent court, be sentenced to imprisonment for a period of not more
than six months or a fine of not more than Two Thousand Pesos (P2,000)
or both, upon the discretion of the Court.
Sec. 21. Repealing Clause. — All laws, decrees,
executive orders, rules and regulations or parts thereof which are
inconsistent with this Act are hereby repealed or modified accordingly.
Sec. 22. Separability Clause. — If any provision
of this Act is declared unconstitutional or invalid, other provisions
thereof which are not affected thereby shall continue in full force and
effect.
Sec. 23. Effectivity. — This Act shall take effect
upon its approval.
Approved: March 27,
1979.
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