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Republic Act No. 8486.
REPUBLIC
ACT NO. 8486
AN
ACT
MERGING THE PHILIPPINE
COTTON CORPORATION AND THE COTTON RESEARCH AND DEVELOPMENT INSTITUTE
INTO
A COTTON DEVELOPMENT ADMINISTRATION, VESTING IT WITH REGULATORY POWERS
AND APPROPRIATING FUNDS FOR THE PURPOSE.
Section 1. Title. —
This
Act shall be known as the "Cotton Industry Development Law of 1998."
Sec. 2. Declaration
of principles and policy. — Consistent with the priority placed by
Government on developing the agricultural sector as the cornerstones of
the Philippine economy, and cognizant of the potential contribution of
cotton-growing to the nation, it is hereby declared a policy of the
State
to develop the cotton industry in the country to its fullest potential.
In this connection, the State shall safeguard the interest of small
cotton
farmers.
The State shall provide
the necessary support to cotton industry development through
appropriate
services in cotton production, research, extension and training,
financial
assistance and other support services. It shall prescribe and strictly
enforce regulations and quality control standards needed to safeguard
cotton-growers.
The State shall fully
exploit
the industry's potentials to increase the farmers' income, reduce
imports
of cotton lint and generate foreign exchange revenues.
Sec. 3. Merger of
the Philippine Cotton Corporation (PCC) and the Cotton Research and
Development
Institute (CRDI) into a Cotton Development Administration (CODA). —
The PCC is hereby merged with the CRDI to form a single entity to be
known
as the Cotton Development Administration (CODA) to serve as the
country's
cotton development authority. The CODA shall be an attached agency of
the
Department of Agriculture.
Sec. 4. Objectives.
— The CODA shall have the following objectives:cralaw:red
a. To
improve the
quality
of life of Filipino farmers through cotton-growing in the areas
suitable
for the crop;
b. To safeguard the
profitability
of cotton farmers through their adoption of prescribed technology; and
c. To ensure that
cotton
is planted only during the times prescribed and only in areas
specifically
identified as suitable for cotton-growing; and that only properly
certified
seed is used.
Sec. 5. Functions.
— The CODA shall have the following functions:cralaw:red
a. To
undertake research
studies on all aspects of the industry, including pilot studies, and to
ensure strong and effective linkages between research and extension;
b. To package and
disseminate
recommended production technology to guide cotton production activities
in the country;
c. To design and
implement
a specialized extension program on cotton production, and other
training
and communications program for manpower development in the various
aspects
of industry operations;
d. To promulgate and
enforce
rules and regulations to govern cotton production, particularly with
regard
to closed season planting; the production, distribution, and use of
planting
seeds; the areas for cotton-growing; pest control, and other quarantine
measures;
e. To identify
suitable
areas for cotton-growing and promote production in such areas;
f. To support and
enhance
efforts of cotton farmers in organizing themselves into cotton farmers'
association;
g. To produce
breeder,
foundation
and registered seeds; set and enforce standards and procedures for seed
production and marketing; supervise certified seed production by
private
cotton seed growers;
h. To provide ginning
services
to small cotton farmers;
i. To provide
assistance
to small farmers in the marketing of their cotton produce;
j. To design and
implement
an industry monitoring and information system;
k. To undertake
industry
manpower development;
l. To assist farmers
in
sourcing funds for cotton production;
m. To conduct regular
consultations
with the cotton farmers, growers, and all other sectors involved in the
cotton industry;
n. To design and
administer
a package of incentives to promote private sector investments in the
cotton
industry;
o. To develop the
export
potentials of cotton; and
p. In general, to
undertake
all other functions as may be necessary to ensure the success of the
cotton
industry and promote the interests of small cotton growers.
Sec. 6. Powers. —
The CODA shall have the following powers:cralaw:red
1. To
administer and
regulate
the cotton industry in the Philippines;
2. To incur any
obligation
or enter into contract with any person, material or juridical, domestic
or foreign, essential to the proper administration of its affairs and
the
accomplishment of its purposes and objectives;
3. To own, purchase,
lease,
mortgage, encumber or otherwise dispose of real and personal property
in
accordance with its purposes and objectives;
4. To accept and
receive
financial and other support from private and other sources for the
development
and promotion of the cotton industry;
5. To promulgate and
enforce
rules and regulations on the production of cotton;
6. To impose
administrative
sanctions for violation of the rules and regulations issued by the CODA;
7. To establish,
operate
and maintain testing and experimental stations;
8. To accredit
associations/confederations
of cotton farmers, growers, textile millers, ginners and other
associations
involved with the cotton industry; and
9. To undertake
measures
to ensure that small farmers receive a fair price for their produce.
Sec. 7. The Governing
Board of the CODA. — The CODA shall be governed by a Board,
composed
as follows:cralaw:red
a. Secretary
of
Agriculture,
as ex-officio Chairman;
b. Secretary of Trade
and
Industry;
c. Secretary of
Agrarian
Reform;
d. Executive
Director,
Philippine
Textile Research Institute;
e. Director,
Philippine
Council for Agriculture and Resources Research and Development;
f. One (1)
representative
from among the government financial institutions to be appointed by the
President of the Philippines upon the recommendation of the Secretary
of
Agriculture;
g. One (1)
representative
from among the textile millers to be appointed by the President of the
Philippines upon the recommendation of the association of textile
millers
duly accredited by the CODA;
h. One (1)
representative
from among the ginners appointed by the President of the Philippines
upon
the recommendation of the association of ginners duly accredited by the
CODA; and
i. Three (3)
representatives
from the cotton farmers associations to be appointed by the President
of
the Philippines upon the recommendation of their respective
confederations
in Luzon, Visayas and Mindanao duly accredited by the CODA.
Sec. 8. Term of office
of the members of the Governing Board. — Unless sooner removed for
cause by their respective associations, appointed members of the
Governing
Board shall hold office for a period of two (2) years from the date of
their appointments.
Sec. 9. Powers and
functions of the Board. — The Governing Board shall act as the
policy
making body of CODA to formulate policies, promulgate regulations and
prescribe
rules to attain CODA's purposes and objectives.
Sec. 10. Organization.
— An Administrator who shall be appointed by the President of the
Philippines,
upon the recommendation of the Secretary of Agriculture shall be the
Chief
Executive Officer of CODA. He shall be assisted by two (2) Deputy
Administrators
to be appointed by the President upon recommendation of the Secretary
of
Agriculture.
The Board shall
determine
and create the organizational structure of CODA to achieve its
objectives,
and shall appoint all other officers of the CODA.
Sec. 11. Promulgation
of rules and regulations. — The Governing Board shall promulgate
rules
and regulations for the full implementation of this Act within ninety
(90)
days of its effectivity. Such rules and regulations shall take effect
upon
publication in a newspaper of general circulation and shall be amended
by the Governing Board from time to time as it may deem appropriate.
Sec. 12. Prohibited
acts. — The following acts are expressly prohibited:cralaw:red
(a) Planting
of cotton
at
times other than those prescribed by CODA; and
(b) Sale,
distribution,
and planting of cotton seeds not previously certified by the Bureau of
Plant Industry.
Sec. 13. Authority to
cut and burn. — For the purpose of safeguarding the interest of
other
affected farmers and the long-term survival of the industry, the CODA,
after thorough investigation and upon observance of due process, shall
cut and burn all cotton planted outside the prescribed planting season
or with seeds not previously certified by the Bureau of Plant Industry.
Sec. 14. Dissolution
of the Philippine Cotton Corporation (PCC) and the Cotton Research and
Development Institute (CRDI). — Subject to the provisions of
existing
laws, the PCC and the CRDI, are hereby dissolved. All functions,
assets,
liabilities, records, appropriation, properties, facilities and
equipment
of PCC and the CRDI are hereby transferred to CODA except those under
the
administration of the APT.
Sec. 15. Transitory
provisions. — Upon approval of this Act, the officers and employees
of the Philippine Cotton Corporation (PCC) and the Cotton Research and
Development Institute (CRDI) shall continue to serve in a hold-over
capacity,
perform their respective duties and responsibilities, and receive the
corresponding
salaries and benefits, until a new staffing pattern shall have been
approved
by the Governing Board.
The new position
structure
and staffing pattern of CODA shall be approved and implemented by the
Governing
Board within one hundred twenty (120) days from the approval of this
Act,
and the authorized positions created thereunder shall be filled with
regular
appointments by the Board or by the Administrator, as the case may be.
Those incumbents whose positions are not included therein or are not
reappointed
shall be paid retirement or separation benefits equivalent to one and
one-fourth
(1¼) month basic salary for every year of their respective
government
service or the nearest equivalent fraction thereof favorable to them on
the basis of the highest salary which they respectively received in the
course of their employment in the government: Provided, That in
no case shall the benefit to be paid to any official or employee be
less
than Ten thousand pesos (P10,000.00): Provided, further, That
any
official or employee who has previously been found guilty in an
administrative
proceeding and whose rank or salary has been reduced shall be paid on
the
basis of his last salary.
In addition to the
benefits
herein authorized, the covered officials and employees shall be
entitled
to the return of GSIS personnel contributions pertaining to the
retirement
only and the payment of the corresponding share of the Government with
the interest earned pursuant to existing rules and regulations of the
Government
Service Insurance System. They shall likewise be entitled to the
commutation
of unused vacation and sick leaves in accordance with existing rules
and
regulations: Provided, That those who retire after rendering
government
services for thirty-one (31) years or more and avail themselves of the
incentive benefits provided in this Act shall be entitled to an
additional
ten percent (10%) of the amount corresponding to what they receive from
thirty-first year onward.
The application for
retirement
or voluntary separation shall be accepted unless the services of the
applicant
shall be deemed necessary.
Sec. 16. Appropriation.
— There is hereby authorized to be appropriated from the National
Treasury
not otherwise appropriated, the sums necessary to carry into effect the
provisions of this Act: Provided, That thereafter, it shall be included
in the General Appropriations Act.
Sec. 17. Separability
clause. — If, for any reason, any Sec. or provision of this Act
shall be held unconstitutional, other provisions hereof shall not be
affected
and shall remain in full force and effect.
Sec. 18. Suppletory
application of existing legislation. — All existing legislation
regarding
the cotton industry, not inconsistent with this law shall have
suppletory
effect.
Sec. 19. Repealing
clause. — All laws, issuances, decrees or parts thereof
inconsistent
with the provisions of this Act are hereby repealed.
Sec. 20. Effectivity
clause. — This Act shall take effect upon its approval.
Approved:
February 11, 1998
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