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This page features the full text of
Batas Pambansa Bilang 21
"The
Dairy Industry Development Act of 1979"
AN
ACT PROVIDING FOR THE ACCELERATED DEVELOPMENT OF THE PHILIPPINES DAIRY
INDUSTRY AND FOR OTHER PURPOSES.
chan
robles
virtual law library
BATAS
PAMBANSA BILANG 21AN
ACT PROVIDING FOR THE ACCELERATED DEVELOPMENT OF THE PHILIPPINES DAIRY
INDUSTRY AND FOR OTHER PURPOSES.chan
robles
virtual law library
chan
robles virtual law librarySection
1. Title. — This Act shall
be known as "The Dairy Industry Development Act of 1979."chanrobles virtual law library
Sec.
2. Objectives. — The objectives
of this Act are:chanroblesvirtuallawlibrarychanrobles virtual law library
a. To
promote production of and achieve self-sufficiency in milk and milk
products
for the proper nutrition of the Filipino people;chanrobles virtual law library
b. To
generate employment and increase the level of income in the rural areas
through diary production; and
c. To
conserve foreign exchange.chanrobles virtual law library
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. chanrobles virtual law library
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:chanroblesvirtuallawlibrarychanrobles virtual law library
a. To
coordinate, integrate, and supervise the policies, programs, and
activities
of the different sectors involved in the development of an indigenous
dairy
industry;chanrobles virtual law library
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;chanrobles virtual law library
d. To
promulgate rules and regulations to carry out the provisions and
objectives
of this Act; andchanrobles virtual law library
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.chanrobles virtual law library
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.chanrobles virtual law library
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.chanrobles virtual law library
Sec.
5. Purposes of the Corporation.
— The purposes of the Corporation shall be as follows:chanroblesvirtuallawlibrarychanrobles virtual law library
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 Section 2 (j) of Presidential Decree No. 1159, where applicable.chanrobles virtual law library
Sec.
6. Powers and functions.
— The Corporation shall, in addition to those provided under the
Corporation
Law, have the following powers and functions:chanroblesvirtuallawlibrarychanrobles virtual law library
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;chanrobles virtual law library
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;chanrobles virtual law library
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;
andchanrobles virtual law library
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.chanrobles virtual law library
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.chanrobles virtual law library
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:chanroblesvirtuallawlibrary
a. Minister
of Agriculture, as Chairman; chanrobles virtual law library
b. Minister
of Natural Resources; chanrobles virtual law library
c. Minister
of Finance; chanrobles virtual law library
d. Minister
of Industry; chanrobles virtual law library
e. Minister
of Trade; chanrobles virtual law library
f. President
of the Corporation; and chanrobles virtual law library
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 Section 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.chanrobles virtual law library
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.chanrobles virtual law library
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.chanrobles virtual law library
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
Section 6 of Presidential Decree No. 1579 as well as other pertinent
Civil
Service, Budget and Compensation Laws.chanrobles virtual law library
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.chanrobles virtual law library
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:chanroblesvirtuallawlibrary
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.chanrobles virtual law library
The
corporation is further empowered to provide loans, grants, and such
services
as may be required, to dairy cooperatives and duly accredited farmers'
organizations.chanrobles virtual law library
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.chanrobles virtual law library
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.chanrobles virtual law library
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.chanrobles virtual law library
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.chanrobles virtual law library
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.chanrobles virtual law library
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.chanrobles virtual law library
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.chanrobles virtual law library
Sec.
23. Effectivity. — This
Act shall take effect upon its approval.chanrobles virtual law library
Approved:
March 27, 1979
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