Kawayan Act

Senate Offier of the s ctary TWENTIETH CONGRESS OF THE ) REPUBLIC OF THE PHILIPPINES First Regular Session SEP 16 A9:32 SENATE RECEIVED BY S. No. 1389 Introduced by Senator MARK A. VILLAR AN ACT INSTITUTIONALIZING THE BAMBOO INDUSTRY DEVELOPMENT IN THE PHILIPPINES AND APPROPRIATING FUNDS THEREFOR EXPLANATORY NOTE Article XII, Section 12 of the 1987 Constitution mandates the State to promote the preferential use of Filipino labor, domestic materials and locally produced goods, and adopt measures that help make them competitive. Bamboo or kawayan is one of the most economically significant non-timber products in the world thanks to its rapid growth and versatile applications. It serves as an ideal alternative to wood in various applications such as furniture, handcrafted items, building materials, and chemical production. This is especially relevant for the Philippines, which has abundant bamboo production, with an estimated total area ranging from 39,000 to 53,000 hectares.] While the country already ranks as one of the top bamboo exporters, experts predict that a more robust Philippine bamboo industry can contribute P3.5 Billion to the economy and create one million new jobs. Recognizing the need to aggressively promote product development and market access to sustain growth, Executive Order No. 879, Series of 2010 (EO No. 1 Department of Science and Technology-Philippine Council for Agriculture, Aquatic and Natural Resources Research and Development, Bamboo Industry Strategic Science and Technology Program <https://ispweb.pcaarrd.dost.gov.ph/bamboo/>.

879) was issued, making the development of the Philippine bamboo industry a priority program of the government. However, the local bamboo industry is still beset with numerous challenges, including, among others, reliable and updated data on bamboo and supply location, knowledge of potential uses, full development of its value chain, and incentives for value-adding activities.? This proposed measure aims to institutionalize the framework established by EO No. 879 which established the Philippine Bamboo Industry Development Council (PBDIC). It mandates the formulation of "The Philippine Bamboo Industry Development Roadmap" which will serve as a comprehensive national strategy for our local bamboo industry to include programs and projects that develop its competitiveness in local and global markets. The bill also promotes the use by the government of bamboo in public schools and other government facilities, in public schools, government facilities, and environmental rehabilitation, conservation, and protection programs. Finally, incentives shall also be granted to bamboo-related enterprises to boost their growth and maintain their viability. I therefore urge the immediate passage of this bill. MARK A. VILLAR 2 Supra note 1.

Schate ffice of the Scarct.try TWENTIETH CONGRESS OF THE REPUBLIC OF THE PHILIPPINES First Regular Session 25 SEP 16 A9:32 SENATE RECEN'FO BY S. No. 1389 Introduced by Senator MARK A. VILLAR AN ACT INSTITUTIONALIZING THE BAMBOO INDUSTRY DEVELOPMENT IN THE PHILIPPINES AND APPROPRIATING FUNDS THEREFOR Be it enacted by the Senate and House of Representatives of the Philippines in Congress assembled:

Section 1. Title. - This Act shall be known as the "Kawayan Act".

Sec. 2. Declaration of Policy. - It is the policy of the State to foster a self-reliant

3 and independent economy that supports indigenous, scientific and technological 4 capabilities, and skills improvement. The State aims to promote and support industries that generate employment, 6 especially in rural areas, reduce poverty, foster a sustainable environment, integrate 7 cultural development, and mitigate the impacts of climate change. Recognizing the strategic importance of bamboo as a sturdy, versatile, and renewable material that can be a sustainable source of livelihood and a catalyst for agro-industrial productivity, the State shall ensure the integrated and continuous development of the Philippine bamboo industry through policies and programs that will encourage bamboo planting, accelerate the development of bamboo-based products and designs, and promote Philippine bamboo products in the domestic and international markets. Toward this end, it shall establish a roadmap for the sustainable production, utilization, propagation, marketing, and promotion of bamboo as furniture, food, construction and design material, and other uses and provide substantial and attractive incentives to help stimulate the bamboo industry.

Sec. 3. Definition of Terms. - As used in this Act:

a) Bamboo refers to tropical or semi-tropical fast-growing grass usually having hollow culms and lignocellulose matrix; b) Bamboo Industry refers to the industry associated with the planting and cultivation of bamboo for sustainable raw materials and bamboo-based products, including, but not limited to, handicrafts, bamboo shoots, bamboo utilized for construction purposes, bamboo for industrial production involving mechanized processing of larger volumes of culms, such as for flooring, laminated furniture, chopsticks, mat boards, charcoal, paper and pulp, biomass, pellets, textiles, and unprocessed bamboo culms utilized in applications such as scaffolding and traditional construction; C) Bamboo Processing refers to the process of conversion of bamboo for various products and applications; d) Bamboo Plantations refer to aggregates of clumps occupying a specific area and sufficiently uniform in composition (species), age, spacing, and condition as to be distinguished from the natural and/or existing bamboo stands; and e) Bamboo Natural Stands refer to sporadically distributed and existing clumps with different bamboo species occurring in a given area.

Sec. 4. The Philippine Bamboo Industry Development Roadmap (PBIDR). -

There shall be a Philippine Bamboo Industry Development Roadmap, which sets forth a comprehensive national strategy for the Philippine bamboo industry and provides specific programs and projects, including the timeline for the propagation, development and management, processing, utilization, business development, and commercialization of the Philippine bamboo and bamboo products. It shall be a five- year roadmap subject to regular review and updating and shall be supported by an annual work and financial plan for the effective implementation of the law. The roadmap shall be guided by the following objectives, among others: a) To make available a sufficient supply of bamboo raw materials for various industries and end products;

associations. at least six (6) nominees submitted by different organizations and re- appointed once. The DTI Secretary shall appoint them from a list of as members, who shall serve for a term of three (3) years and may be organizations (NGOs) involved in the bamboo industry and agriculture d) Three (3) representatives from the private sector and non-governmental Indigenous Peoples (NCIP), as members; and Government (DILG), and the Chairperson of the National Commission on Science and Technology (DOST), the Department of Interior and Local c) Secretaries of the Department of Agriculture (DA), the Department of (DENR) as Vice-Chairperson; b) Secretary of the Department of Environment and Natural Resources Chairperson; a) Secretary of the Department of Trade and Industry (DTI) as 16 composed of the following: of 2010, hereinafter referred to as the Council, is hereby reconstituted and shall be Bamboo Industry Development Council, created under Executive Order No. 879, series

Sec. 5. Philippine Bamboo Industry Development Council. - The Philippine

g) Identify other necessary activities approved by the Council. Philippine economy and to inclusive growth; and f) To realize a significant contribution of the bamboo industry to the and mitigation; sustainable environmental sustainability and climate change adaptation e) To use bamboo as a medium to help attain the country's desire for bamboo industry; d) To establish a policy environment supportive to the development of the freedom from poverty; c) To develop bamboo-based communities with elevated Income and markets; b) To establish vibrant bamboo enterprises for domestic and international

The Council shall meet quarterly and may hold special meetings whenever the 2 need arises to consider urgent matters upon the call of the Chairperson or any of the 3 Council members: Provided, That each Council member may designate his/her representatives whose rank shall not be lower than an Assistant Secretary or its 5 equivalent. The Council shall be assisted by a Secretariat headed by an Executive Director. 7 Other member agencies of the Council shall provide additional administrative and 8 technical staff support on secondment or detailed arrangement to the secretariat upon 9 the determination by the Council of the necessity for such augmentation. The appointment of officers and employees of the secretariat shall be in accordance with the civil service laws.

Sec. 6. Powers and Functions of the Council. - The Council shall have the

following powers and functions, among others: a) Formulate and publish the PBIDR, which shall be updated and revised periodically as may be determined by the Council; b) Identify specific programs and projects aligned with the PBIDR; c) Identify the specific roles, and ensure compliance and coordination among government agencies for the attainment of the goals laid out in the PBIDR; d) Lead the creation of, and serve as the host organization to maintain a national and integrated information system related to bamboo, including but not limited to, plantations, population, species, workers and beneficiaries, investors, product demands and supplies, and costs and benefits for market research, and continuous research and development to advance sustainable bamboo industry development practices; e) Identify sources of financing and facilitate credit windows with government financial institutions to expand bamboo industry development; f) Promote the establishment of additional processing facilities that would accelerate the production and commercialization of bamboo and various

bamboo products in the domestic and international markets and identify land areas devoted to bamboo plantations; g) Promote the establishment and creation of bamboo farm tourism camps in coordination with the Department of Tourism (DOT); h) Implement mechanization of production in the bamboo industry through the provision of machinery and equipment; i) Harmonize and institutionalize fragmented capacity-building, business mentoring, and entrepreneurship programs, of relevant government agencies for farmers, farm workers, processors, designers, and other stakeholders in the bamboo industry; j) Strengthen market access, linkage and promotion of Philippine bamboo and locally made bamboo-based products through extensive marketing strategy; k) Promote the establishment of an agri-insurance program for bamboo plantations and farmers; 1) Coordinate and partner with the private sector, people's organizations and NGOs, and state colleges and universities in providing technical assistance to bamboo farmers and the industry commensurate to the size of the bamboo plantation or farm; m) Accept grants, donations, and contributions from local and international donors, and such similar sources of funds for the implementation of this Act, subject to the usual budget, accounting and auditing rules and regulations; n) Appoint the official representative of the Philippines to international bamboo organizations; o) Submit annual reports on the status of the implementation of the roadmap and the bamboo industry development in the country to the office of the President, the Senate Committee on Trade, Commerce and Entrepreneurship, and the House of Representatives Committee on Trade and Industry; p) Recommend to the Department of Budget and Management (DBM) the required yearly appropriations for the pian and implementation of the

bamboo industry development programs and ensure the inclusion of proposals, through program convergence budgeting to avoid duplication of funding for similar programs, activities and projects by the implementing agencies; and q) Promulgate rules and regulations, and exercise such other powers and functions as may be necessary to carry out effectively the attainment of the purposes and objectives of this Act.

Sec. 7. Executive Director. - By a vote of a simple majority of all its members,

the Council shall appoint an Executive Director who shall head the secretariat and serve as the administrative officer of the Council. The appointee must possess competencies and knowledge in bamboo industry development and shall have a fixed term of six (6) years and may be reappointed, subject to the approval of the Council. With the concurrence of the Council, the Executive Director shall determine the staffing complement as to the organizational structure, staffing pattern, and compensation system of the Secretariat.

Sec. 8. Use of Bamboo in Environmental Rehabilitation, Conservation, and

Protection Programs of the National Government - The DENR shall use bamboo as the planting material for at least twenty-five percent (25%) of its annual reforestation and rehabilitation programs, especially in provinces and towns that are engaged in or have the potential to engage in bamboo-based industries, or where trees are difficult to grow because of poor site quality, susceptibility to erosion or adverse and steep gradients. The Mines and Geosciences Bureau (MGB) shall likewise encourage mining contractors and permit holders to plant bamboo outside the disturbed areas mining sites, subject to pertinent rules and conditions as determined by relevant agencies.

Sec. 9. Use of Assistance Funds for Small and Medium Bamboo Enterprises. -

Twenty percent (20%) of DOST's small and medium enterprises (SMEs) assistance funds such as the Small Enterprise Technology Upgrading Program (SETUP) and the Technology Application and Promotion Institute (TAPI) venture capital program shall be allocated to bamboo-based enterprises.

Sec. 10. Promotion of Bamboo Products in Domestic and International Markets.

31 - The DTI, the DOT, and their attached agencies mandated to promote domestic

products, shall be directed to conduct aggressive marketing and trade campaigns of bamboo and bamboo products through domestic and international expositions, fairs 3 and exhibits. The DTI shall likewise be mandated to scale up domestic investment promotion 5 by hosting business-matching activities through its existing micro, small and medium 6 enterprises programs, to prioritize the access of its shared services facilities, and to 7 provide marketing assistance through its One Town One Product (OTOP) and other 8 shows and concept stores for the bamboo industry.

Sec. 11. Research, Development and Innovation for the Bamboo Industry. -

10 The DOST, in coordination with other government and private research institutions, shall conduct research and development on bamboo, innovate to develop more marketable bamboo-based products for both domestic and international consumers, and advance sustainable bamboo industry development practices.

Sec. 12. Use of Bamboo in Public Schools and Government Facilities. - As far

as practicable, at least twenty-five percent (25%) of all the annual school desks and armchairs requirement of all public elementary and secondary schools nationwide procured by the Department of Education (DepEd) shall be made from bamboo. The use of bamboo in furniture and fixtures of government facilities shall also be considered when feasible.

Sec. 13. Incentives. - The following incentives shall be provided:

a) The Board of Investments (BOI) shall classify bamboo farms/plantations, production or processing thereof, and other bamboo-related activities as preferred areas of investments under its Strategic Investments Priority Plan (SIPP) subject to pertinent rules and regulations; b) Nursery and plantation owners shall be exempt from the payment of rent for the use of public lands for commercial bamboo plantation subject to existing tenurial agreements with concerned government agencies; c) Bamboo plantation owners in public lands shall be exempt from the payment of forest charges that may be imposed by the national government;

d) The produce of Bamboo plantations shall be accepted as among the collaterals for loans in government-owned or controlled banks, subject to its rules and regulations; e) Bamboo plantation developers and bamboo processors shall be given priority to access credit assistance and guarantee schemes being granted by government-owned, controlled and/ or supported financial institutions; f) Bamboo plantations shall not be required a cutting permit for harvesting nor shall their produce need a transport permit for transporting: Provided, That such plantation is registered with the Community Environment and Natural Resources Office (CENRO) of the DENR; g) Bamboo plantations and plantation development equipment shall be covered by the Philippine Crop Insurance Corporation (PCIC); and n) For tenured bamboo plantation owners, upon the premature termination of the tenurial agreement with no fault of the holder, all capital improvements, depreciable permanent and semi-permanent improvements such as roads, buildings, nurseries including the planted and standing bamboo and other intercrops, introduced and retained in the area, shall be evaluated and the holder shall be entitled to a fair compensation thereof, the amount of which shall be mutually agreed upon by both the DENR and the tenure-holder and in case of disagreement between them, by arbitration through a mutually acceptable and impartial third party adjudicator through the DENR.

Sec. 14. Appropriations. - The amount necessary for the initial implementation

of this Act shall be charged against the current year's appropriations of the departments/agencies concerned. Thereafter, such sums as may be necessary for the continued implementation shall be included in the annual General Appropriations Act (GAA).

Sec. 15. Implementing Rules and Regulations. - Within six (6) months from the

effectivity of this Act, the DTI, in consultation with other concerned government agencies, the academe, the private sector, and NGOs shall promulgate the necessary implementing rules and regulations for the effective implementation of this Act.

Sec. 16. Separability Clause. - If any provision of this Act is declared

unconstitutional, the remainder thereof not otherwise affected shall remain in full force and effect.

Sec. 17. Repealing Clause. -All laws, presidential decrees, executive orders,

letters of instruction, and administrative regulations that are inconsistent with the provisions of this Act are hereby repealed, amended, or modified accordingly.

Sec. 18. Effectivity. - This Act shall take effect fifteen (15) days after its

8 publication in the Official Gazette, or in a newspaper of general circulation. Approved,