Strengthening the Coconut Farmers and Industry Trust Fund Act

SenaTe Office of the Secretarp TWENTIETH CONGRESS OF THE REPUBLIC OF THE PHILIPPINES ) 26 MAY -5 P2:58 First Regular Session RECEIVED BY SENATE 2095 Senate Bill No. . Introduced by Senator JOEL VILLANUEVA AN ACT STRENGTHENING THE IMPLEMENTATION, MANAGEMENT, AND UTILIZATION OF THE COCONUT FARMERS AND INDUSTRY TRUST FUND, ENHANCING GOVERNANCE AND BENEFICIARY 11524, OTHERWISE KNOWN AS THE COCONUT FARMERS AND INDUSTRY TRUST FUND ACT EXPLANATORY NOTE The coconut industry remains one of the most important agricultural sectors in the Philippines, providing livelihood to an estimated 2.5 to 3.5 million coconut farmers and their families across 69 provinces, and contributing significantly to agricultural land use and exports. 1 Despite its importance, the sector faces persistent structural challenges. Coconut farmers are among the poorest in the country, with Philippine Statistics Authority (PSA) data showing that poverty incidence among farmers and fisherfolk remains among the highest across sectors.3 Estimates from government and industry studies indicate that many coconut farmers earn an average of only P20,000 annually from coconut farming, far below the national per capita poverty threshold and significantly lower than the earnings of minimum wage workers in non-agricultural sectors. This DOST-PCAARRD ISP-IS. Coconut Industry Profile. Available at https://ispweb.pcaarrd.dost.gov.ph/isp- commodities/coconut/. Accessed on 05 May 2026. Livelihoods EU. Philippines: Bringing More Benefits to 5,000 Coco Farmers. Available at https://livelihoods.eu/portfolio/resilient-coconut-supply-chain-and-improved-income-philippines/. Accessed on 05 May 2026. PSA. Incidence the and 2023. Available at Poverty among Basic Sectors: 2018, 2021, https://psa.gov.ph/system/files/phdsd/Press%20Release_2023%20Official%20Povstat%20among%20Basic %20Sectors_26Mar2025.pdf. Accessed on 05 May 2026 Inquirer. 3.4M coconut farmers suffering. Available at https://business.inquirer.net/254564/3-4m-coconut- farmers-suffering. Accessed on 05 May 2026.

disparity highlights the urgent need to improve productivity, expand income opportunities, and enable participation in higher-value segments of the coconut value chain. The Coconut Levy Fund, sourced from contributions of coconut farmers in prior decades, is intended to support the development of the industry for their benefit. In 2021, Republic Act No. 11524, or the Coconut Farmers and Industry Trust Fund Act, was enacted to institutionalize the management and utilization of these funds through a 50-year Trust Fund aimed at rehabilitation, income improvement, and long-term sustainability. While Republic Act No. 11524 established a comprehensive framework, implementation challenges, including delays in program rollout, gaps in beneficiary identification, coordination issues, and weak monitoring systems, have constrained the timely delivery of benefits. Thus, this measure strengthens the implementation of the Trust Fund by enhancing the Coconut Farmers and Industry Development Plan through performance targets, periodic review, and a more responsive planning framework, while prioritizing programs that directly improve farmer welfare and income, including productivity enhancement, enterprise development, market access, diversification, credit, insurance, and social protection. It expands employment, capacity building, and skills development opportunities, improves beneficiary targeting through digitalization and regular validation of the Coconut Farmers Registry, with priority for smallholder farmers, and establishes a Program Management Office within the Philippine Coconut Authority to ensure coordinated and time-bound implementation. This bill likewise reinforces governance and fiscal safeguards, promotes transparency through strengthened reporting and public disclosure, and institutionalizes participatory consultation with stakeholders, thereby refining the implementation of the law to ensure that its benefits are delivered more efficiently, equitably, and directly to coconut farmers. By aligning governance, planning, and delivery systems with the goal of improving farmer welfare, expanding livelihood opportunities, and strengthening industry competitiveness, this bill seeks to advance inclusive rural development, reduce poverty, and ensure the long-term sustainability of the coconut industry. In view of the foregoing, the passage of this bill is earnestly sought. бремт JOEL/ VILLANUEVA@

Senate Office of the Secretary TWENTIETH CONGRESS OF THE REPUBLIC OF THE PHILIPPINES 26 MAY -5 P2:58 First Regular Session RECEIVED BY. SENATE 2095 Senate Bill No. Introduced by Senator JOEL VILLANUEVA AN ACT STRENGTHENING THE IMPLEMENTATION, MANAGEMENT, AND UTILIZATION OF THE COCONUT FARMERS AND INDUSTRY TRUST FUND, ENHANCING GOVERNANCE AND BENEFICIARY ACCESS, AMENDING FOR THE PURPOSE REPUBLIC ACT NO. 11524, OTHERWISE KNOWN AS THE COCONUT FARMERS AND INDUSTRY TRUST FUND ACT Be it enacted by the Senate and House of Representatives of the Philippines in Congress assembled:

SECTION 1. Section 3 of Republic Act No. 11524, or the "Coconut Farmers and

Industry Trust Fund Act," is hereby amended to read as follows: "SEC. 3. Definition of Terms. - As used in this Act: (a) xXX (b) xxx (c) XXX (D) COMPREHENSIVE INSURANCE REFERS TO YIELD INSURANCE, CROP INSURANCE, TERM INSURANCE, AND OTHER FORMS OF INSURANCE THAT MAY BE AVAILABLE TO COCONUT FARMERS; [(d)] (E) Designated Disposition Entity (DDE) refers to the Privatization Management Office (PMO), Land Bank of the Philippines (LBP), Development Bank of the Philippines (DBP), Social Security System (SSS),

Government Service Insurance System (GSIS) which, at the time of the enactment of this Act, are one hundred percent (100%) owned by the government."

SEC. 2. Section 4 of Republic Act No. 11524 is hereby amended to read as

follows: "[SEC. 4. Preparation of the Coconut Farmers and Industry Development Plan. - The Coconut Farmers and Industry Development Plan shall be prepared by the Philippine Coconut Authority (PCA) and approved by the President of the Philippines. The utilization of the Trust Fund created under this Act, or any portion thereof, shall be in accordance with the Development Plan. In the performance of its functions, the PCA shalt consult coconut farmers and their organizations, industry associations, civil society organizations, academe, government agencies concerned, particularly the Land Bank of the Philippines (LBP), Development Bank of the Philippines (DBP), Cooperative Development Authority (CDA), Department of Science and Technology Philippine Council for Agriculture, Aquatic and Natural Resources Research and Development (DOST- PCAARRD), Bureau of Micro, Small and Medium Enterprise Development under the Department of Trade and Industry (DTI), Commission on Higher Education (CHED), Technical Education and Skills Development Authority (TESDA), Agricultural Training Institute (ATI), Philippine Center for Post- Harvest Development and Mechanization (PhilMech), Department of Agriculture's High Value Crops Development Program, Department of Agriculture's Bureau of Animal Industry's Philippine Native Animals Development Program, National Dairy Authority (NDA), Department of Public Works and Highways (DPWH) and other stockholders in the coconut industry. The Plan shall set the directions and policies for the development and rehabilitation of the coconut industry within fifty (50) years.]

SEC. 4. PREPARATION OF THE COCONUT FARMERS AND

INDUSTRY DEVELOPMENT PLAN. - THE COCONUT FARMERS AND INDUSTRY DEVELOPMENT PLAN, HEREINAFTER REFERRED TO AS THE "PLAN," SHALL BE FORMULATED UNDER THE LEADERSHIP OF THE PHILIPPINE COCONUT AUTHORITY (PCA), IN COORDINATION WITH RELEVANT GOVERNMENT AGENCIES AND INDUSTRY STAKEHOLDERS, AND SHALL BE SUBMITTED TO THE PRESIDENT OF THE PHILIPPINES FOR APPROVAL. THE UTILIZATION OF THE TRUST FUND CREATED UNDER THIS ACT, OR ANY PORTION THEREOF, SHALL BE IN ACCORDANCE WITH THE PLAN: PROVIDED, THAT THE PCA MAY INTRODUCE SUCH ADJUSTMENTS AS MAY BE NECESSARY TO ADDRESS AGENCY ABSORPTIVE CAPACITIES AND THE EVOLVING NEEDS OF COCONUT FARMERS AND THE INDUSTRY.

IN THE PERFORMANCE OF THIS MANDATE, THE PCA SHALL ENSURE PARTICIPATORY CONSULTATION WITH COCONUT FARMERS AND THEIR ORGANIZATIONS, INDUSTRY ASSOCIATIONS, CIVIL SOCIETY ORGANIZATIONS, THE ACADEME, RELEVANT GOVERNMENT AGENCIES, AND OTHER STAKEHOLDERS IN THE COCONUT INDUSTRY TO ENSURE THAT THE PLAN REFLECTS THE NEEDS OF ITS INTENDED BENEFICIARIES. THE PLAN SHALL ESTABLISH THE LONG-TERM VISION, GOALS, POLICIES, AND STRATEGIES FOR THE DEVELOPMENT, REHABILITATION, AND MODERNIZATION OF THE COCONUT INDUSTRY OVER A PERIOD OF FIFTY (50) YEARS, AND SHALL INCLUDE MECHANISMS FOR PERIODIC REVIEW AND UPDATING TO RESPOND TO EMERGING CHALLENGES AND OPPORTUNITIES. IT SHALL LIKEWISE INCLUDE ANNUAL PERFORMANCE TARGETS, SUCH AS THE NUMBER OF FARMERS SERVED, HECTARES REPLANTED, IMPROVEMENTS IN YIELD, AND INCREASES IN FARMER INCOME. XXX The Plan shall include a national program for: (A) INCREASED COCONUT PRODUCTIVITY AND SUSTAINABILITY THROUGH MASSIVE COCONUT PLANTING AND REPLANTING, FERTILIZATION, AND COCONUT FARM IRRIGATION; [(a)] (B) Community-based enterprises, including integrated processing of products and downstream products intended to increase incomes of coconut farmers; [(b)] (C) Social protection that directly benefit coconut farmers, farm workers, and their families, taking into consideration existing social protection programs of the government; [(c)] (D) Coconut farmers organization and development; AND [(d)] (E) Innovative research projects and their practical application on coconut processing, production and distribution towards developing the local coconut industryL; and (e) Integrated processing of coconut and downstream products]. XXX

[Programs relating to planting, replanting, fertilization, research and development, market promotion, and farm to market roads in coconut producing provinces, shall also be funded through regular appropriations. The Plan shall take into account the distribution of the annual allocation from the Trust Fund, as follows: (a) Development of hybrid coconut seed farms, and nursery for planting and replanting, twenty percent (20%): to be implemented by the PCA fifteen percent (15%) and the Department of Science and Technology Philippine Council for Agriculture, Aquatic and Natural Resources Research and Development (DOST PCAARRD) at five percent (5%) for research respectively; (b) Training of farmers and their families, as listed in the coconut farmers registry, in farm schools, the training shall be on coconut production and processing technologies, value addition of coconut products, diversification and sustainable farming methods, including organic farming, financial literacy, and farm business schools programs among others through the TESDA and the ATI, eight percent (8%), to be shared equally; (c) Research, marketing, and promotion, five percent (5%), to be implemented by the Bureau of Micro, Small and Medium Enterprise Development under the DTI; (d) Crop Insurance, four percent (4%), to be implemented by the Philippine Crop Insurance Corporation (PCIC); (e) Farm improvements through diversification and/or intercropping with livestock, dairy, poultry, coffee, cacao production, ten percent (10%), to be implemented by the NDA, the Department of Agriculture's High Value Crops Development Program, and the Department of Agriculture's Bureau of Animal Industry, Native Animal Program to be shared equally; (f) Shared facilities for processing, ten percent (10%), to be implemented by the PhilMech, the beneficiaries of which are coconut farmers cooperatives and LGUs for coconut farmer organizations. LGUs shall create local small farmers councils to provide mechanisms for consultation and participation; (g) Organizing and empowerment of coconut farmer organization and their cooperatives, five percent (5%) to be implemented by the Cooperative Development Authority (CDA) for farmers cooperatives and LGUs for coconut farmer organizations. LGUs shall create local small farmers councils to provide mechanisms for consultations and participation;

(h) Credit programs through the DBP and LBP, ten percent (10%) to be shared equally; (i) Infrastructure development, ten percent (10%), to be implemented by the DPWH, in identified coconut producing LGUs. The DPWH shall give priority to the use of coconut coir or coconet bio engineering solutions in controlling soil erosion and slope stabilization in the construction of roads and in other applicable projects; (j) Scholarship program for farmers and their families eight percent (8%), to be implemented by the CHED; and (k) Health and medical program for farmers and their families ten percent (10%) thereby creating a special unit within the agency for the purpose. Within one hundred twenty (120) days from the effectivity of this Act, the PCA Board shall enter into a memorandum of agreement with the following agencies, as identified in this section: DOST PCAARRD, TESDA, ATI, NDA, PhilMech, CDA, LBP, DBP, CHED, STI, and DPWH, to ensure a coordinated implementation of the programs under the Development Plan, proper utilization of the allocations provided in this section, and submission of periodic accomplishment report of these implementing agencies to the PCA Board. To facilitate the implementation of these programs and the identification of beneficiaries, the PCA shall, within ninety (90) days from the effectivity of this Act, complete the Coconut Farmers Registry: Provided, That an annual verification of the registry shall be conducted by the LGUs in coordination with the PCA and the Department of Agriculture (DA) to ensure its veracity. Within one hundred twenty (120) days from the effectivity of this Act, the Plan shall be submitted by the PCA to the President, for approval.] THE PLAN SHALL UTILIZE THE ANNUAL ALLOCATION FROM THE TRUST FUND TO PRIORITIZE PROGRAMS THAT DIRECTLY ENHANCE THE WELFARE, PRODUCTIVITY, AND INCOME OF COCONUT FARMERS AND THEIR FAMILIES, AND PROMOTE THE SUSTAINABLE DEVELOPMENT OF THE COCONUT INDUSTRY, INCLUDING, BUT NOT LIMITED TO, THE FOLLOWING: (A) PRODUCTIVITY ENHANCEMENT AND FARM DEVELOPMENT. - PROGRAMS FOR COCONUT PLANTING AND REPLANTING, FERTILIZATION, IRRIGATION, AND THE ESTABLISHMENT OF HYBRID SEED FARMS AND NURSERIES, AS WELL AS OTHER

INTERVENTIONS TO IMPROVE FARM PRODUCTIVITY AND RESILIENCE; (B) RESEARCH, INNOVATION, AND EXTENSION. - RESEARCH AND DEVELOPMENT, TECHNOLOGY TRANSFER, EXTENSION SERVICES ON COCONUT PRODUCTION, PROCESSING, DIVERSIFICATION, AND CLIMATE-RESILIENT FARMING SYSTEMS, INCLUDING THE PRACTICAL APPLICATION OF INNOVATIONS ACROSS THE VALUE CHAIN; (C) CAPACITY BUILDING AND TRAINING. - TRAINING PROGRAMS FOR COCONUT FARMERS AND THEIR FAMILIES, AS LISTED IN THE COCONUT FARMERS REGISTRY, TO BE CONDUCTED THROUGH TECHNICAL-VOCATIONAL INSTITUTIONS, FARM SCHOOLS, AND OTHER ACCREDITED AGRICULTURAL TRAINING COVERING PROVIDERS, PRODUCTION AND PROCESSING TECHNOLOGIES, VALUE ADDITION, DIVERSIFIED AND SUSTAINABLE FARMING SYSTEMS, FINANCIAL LITERACY, AND FARM BUSINESS MANAGEMENT; (D) ENTERPRISE DEVELOPMENT AND MARKET ACCESS. - PROMOTION OF COMMUNITY-BASED ENTERPRISES, VALUE CHAIN DEVELOPMENT, MARKETING SUPPORT, AND MARKET LINKAGE PROGRAMS TO INCREASE FARMER INCOMES AND PARTICIPATION IN HIGHER-VALUE ACTIVITIES; (E) FARM DIVERSIFICATION AND LIVELIHOOD SUPPORT. - PROGRAMS SUPPORTING INTERCROPPING, INTEGRATED FARMING SYSTEMS, AND OTHER LIVELIHOOD ACTIVITIES THAT OPTIMIZE LAND USE AND ENHANCE INCOME OPPORTUNITIES; (F) CREDIT AND FINANCIAL SERVICES. - ACCESSIBLE AND AFFORDABLE CREDIT FACILITIES, FINANCING PROGRAMS, AND OTHER FINANCIAL SERVICES TAILORED TO THE NEEDS OF COCONUT FARMERS AND THEIR ORGANIZATIONS; (G) CROP INSURANCE AND RISK MITIGATION. - PROVISION OF COMPREHENSIVE CROP AND RELATED INSURANCE PROGRAMS, AND OTHER RISK MITIGATION MECHANISMS TO PROTECT FARMERS AGAINST LOSSES; (H) INFRASTRUCTURE AND POST-HARVEST FACILITIES. - DEVELOPMENT OF INFRASTRUCTURE AND SHARED FACILITIES FOR PROCESSING, STORAGE, AND TRANSPORT IN IDENTIFIED

COCONUT-PRODUCING AREAS, INCLUDING THE PRIORITIZATION OF COCONUT COIR OR COCONET BIO- ENGINEERING SOLUTIONS FOR SOIL EROSION CONTROL AND SLOPE STABILIZATION, WHERE TECHNICALLY APPROPRIATE; FARMER (I) INSTITUTIONAL DEVELOPMENT AND ORGANIZATION. - ORGANIZING AND STRENGTHENING OF COCONUT FARMERS AND THEIR ORGANIZATIONS, INCLUDING SUPPORT FOR COOPERATIVE DEVELOPMENT, INSTITUTIONAL CAPACITY-BUILDING, AND THE ESTABLISHMENT OF LOCAL SMALL COCONUT FARMER COUNCILS BY LGUS TO ENSURE CONSULTATION AND PARTICIPATION; (J) SOCIAL PROTECTION AND HUMAN CAPITAL DEVELOPMENT. - SCHOLARSHIP PROGRAMS, HEALTH AND MEDICAL SERVICES, AND OTHER SOCIAL PROTECTION MEASURES FOR COCONUT FARMERS AND THEIR INCLUDING THE FAMILIES, ESTABLISHMENT OF APPROPRIATE UNITS WITHIN THE PCA TO ADMINISTER SUCH PROGRAMS; AND (K) OTHER SUPPORT PROGRAMS. - SUCH OTHER PROGRAMS AS MAY BE NECESSARY TO DIRECTLY IMPROVE FARMER WELFARE, INCREASE INCOMES, AND SUSTAIN THE LONG-TERM DEVELOPMENT OF THE COCONUT INDUSTRY. PROVIDED, THAT NOT LESS THAN FIVE PERCENT (5%) OF THE ANNUAL ALLOCATION FROM THE TRUST FUND SHALL BE SET ASIDE AS FINANCIAL ASSISTANCE TO COCONUT FARMERS IN THE EVENT OF NATURAL OR HUMAN-INDUCED DISASTERS, PUBLIC HEALTH EMERGENCIES, OR OTHER UNFORESEEN CIRCUMSTANCES THAT MATERIALLY AFFECT COCONUT FARMERS AND THE COCONUT INDUSTRY. PROGRAMS UNDER THE PLAN SHALL BE IMPLEMENTED IN A TIMELY AND EFFICIENT MANNER, GUIDED BY ANNUAL IMPLEMENTATION SCHEDULES AND PERFORMANCE TARGETS TO BE ESTABLISHED BY THE PCA. THE PLAN SHALL BE REVIEWED AND UPDATED EVERY FIVE (5) YEARS, TAKING INTO ACCOUNT THE RESULTS OF MONITORING AND EVALUATION, EMERGING CHALLENGES AND OPPORTUNITIES, STAKEHOLDER FEEDBACK, AND EVOLVING LOCAL AND GLOBAL INDUSTRY CONDITIONS, IN ORDER TO ASSESS THE IMPACT OF PROGRAMS AND PROJECTS. FOR THIS PURPOSE, THE PCA SHALL SUBMIT TO THE PRESIDENT A

REVISED PLAN, INCLUDING UPDATED FUNDING REQUIREMENTS AND ALLOCATIONS. THE PLAN SHALL LIKEWISE ESTABLISH CLEAR AND TRANSPARENT CRITERIA FOR BENEFICIARY TARGETING, WITH PRIORITY GIVEN TO SMALLHOLDER FARMERS. TO SUPPORT THIS, THE PCA SHALL ENSURE THE COMPLETION AND CONTINUOUS UPDATING OF THE COCONUT FARMERS REGISTRY, AND SHALL CONDUCT ANNUAL VERIFICATION THEREOF IN COORDINATION WITH LOCAL GOVERNMENT UNITS (LGUS) AND THE DEPARTMENT OF AGRICULTURE (DA) TO ENSURE ITS ACCURACY. THE REGISTRY SHALL BE DIGITIZED, UPDATED ANNUALLY, AND SUPPORTED BY MOBILE AND COMMUNITY-BASED REGISTRATION MECHANISMS TO ENSURE THE INCLUSION OF REMOTE AND INFORMAL COCONUT FARMERS. WITHIN NINETY (90) DAYS FROM THE EFFECTIVITY OF THIS ACT, THE PCA SHALL PREPARE AND SUBMIT THE PLAN TO THE PRESIDENT FOR APPROVAL. Before the Plan is finalized and submitted to the President for approval, the DA, Department of Budget and Management (DBM), DEPARTMENT OF FINANCE (DOF), DEPARTMENT OF TRADE AND INDUSTRY (DTI), and [the National Economic and Development Authority (NEDA)] DEPARTMENT OF ECONOMY, PLANNING, AND DEVELOPMENT (DEPDEV) shall provide their advisory opinions on the following matters: (a) xxX (b) xxx (c) XXX (d) xxX"

SEC. 3. Section 5 of Republic Act No. 11524 is hereby amended to read as

follows: "SEC. 5. The Philippine Coconut Authority (PCA). - The PCA, an independent public corporation created under Presidential Decree No. 1468, shall be reconstituted and strengthened to ensure the participation of coconut farmers in the crafting and implementation of the [Coconut Farmers and Industry Development] Plan. The composition of the PCA

Board is hereby amended and the same shall now be composed of the following: (a) The Secretary of the [Department of Agriculture (DA)] DA, as Chairperson; (b) The Secretary of the [Department of Finance (DOF)] DOF, as Vice Chairperson; (c) The Secretary of the [Department of Budget and Management (DBM)] DBM; (d) The Secretary of the Department of Science and Technology (DOST); (e) The Secretary of the [Department of Trade and Industry (DTI)] DTI; (f) The Administrator of the Authority; and (g) Three (3) members from the coconut farmers sector (one (1) each from Luzon, Visayas, and Mindanao): Provided, That the representatives from the coconut farmers sector shall be Filipino citizens, registered with the PCA's Coconut Farmers Registry, own not more than five (5) hectares of coconut farm in the last ten (10) years, have considerable experience and reputable track record in promoting coconut farmers' interest and welfare, and nominated by coconut farmers organizations or cooperatives that are active for the past three (3) years in farmer organization and development or community enterprise development. They shall be appointed by the President of the Philippines from a list of four (4) nominees for each island grouping: Provided, That any appointment to fill a vacancy in the Board arising from death, removal, retirement, or resignation of the appointive members of the Board shall only be for the unexpired term: Provided, further, That the term of office of the appointive members of the Board shall be for [one (1)] THREE (3) years, unless sooner removed for cause: Provided, finally, That any appointive member of the Board shall continue to hold office until a successor is appointed. The government representatives in the reconstituted PCA Board shall, within thirty (30) days from the effectivity of this Act, coordinate with the PCA in promulgating a nomination and screening process for the nominees of representatives of the coconut farmers in consultation with their respective organizations or associations. THE PCA, AS THE LEAD AGENCY, SHALL STRENGTHEN THE IMPLEMENTATION OF THE PLAN AND MAY PROPOSE THE CREATION OF SUCH UNITS AND PLANTILLA POSITIONS AS MAY BE NECESSARY FOR THE EFFECTIVE PLANNING, EXECUTION,

AND MONITORING OF PROGRAMS THEREUNDER, IN ORDER TO ACCELERATE THE DEVELOPMENT OF THE COCONUT INDUSTRY. A PROGRAM MANAGEMENT OFFICE IS HEREBY ESTABLISHED WITHIN THE PCA TO SERVE AS THE CENTRAL DELIVERY UNIT RESPONSIBLE FOR THE TIME-BOUND IMPLEMENTATION, COORDINATION, AND MONITORING OF PROGRAMS UNDER THE PLAN, AND SHALL PUBLISH QUARTERLY DELIVERY SCORECARDS. THE PCA SHALL SUBMIT AN ORGANIZATIONAL STRENGTHENING PLAN AND STAFFING PATTERN, DULY APPROVED BY ITS BOARD, TO THE GOVERNANCE COMMISSION FOR GOVERNMENT-OWNED OR -CONTROLLED CORPORATIONS (GCG) FOR REVIEW AND APPROVAL: PROVIDED, THAT NO TRANSFER, REASSIGNMENT, OR SIMILAR PERSONNEL ACTION, NOR ANY DEMOTION OR DIMINUTION IN RANK, SALARY, OR OTHER EMOLUMENTS, SHALL BE EFFECTED WITHOUT THE PRIOR APPROVAL OF THE GCG AND DBM. THE APPROVED PERSONNEL COMPLEMENT OF THE PCA, INCLUDING THAT OF THE PROGRAM MANAGEMENT OFFICE, SHALL BE PROVIDED FOR IN THE GENERAL APPROPRIATIONS ACT."

SEC. 4. Section 10 of Republic Act No. 11524 is hereby amended to read as

follows: "SEC. 10. Creation of a Trust Fund Management Committee. - There is hereby created a Trust Fund Management Committee, which shall be comprised of authorized representatives of the DOF, DBM, and Department of Justice (DOJ). The Trust Fund Management Committee shall be responsible for setting the Investment Strategy of the Trust Fund, which includes the following, among others: (a) xxX (b) xxx (c) XXX (d) xxx (e) XXX (f) xxx (9) XXX

(h) xxx (i) Approval of the financial requirements of DDEs in relation to [its] THEIR function set forth under this Act, including [its] THEIR annual budget for operations, management, and privatization/disposition of Coconut Levy Assets and/or Funds transferred and entrusted in [its] THEIR care; [and] (J) TO WITHHOLD THE REMITTANCE OF DIVIDENDS ARISING FROM THE DISPOSITION OF COCONUT LEVY ASSETS, PARTICULARLY THOSE FROM GOVERNMENT-OWNED OR - CONTROLLED CORPORATIONS (GOCCS), WHERE SUCH REMITTANCE WOULD ADVERSELY AFFECT THE VALUATION OR FINANCIAL VIABILITY OF THE ASSETS; (K) IN CASES WHERE ENTITIES HOLDING OR CONTROLLING COCONUT LEVY ASSETS DO NOT HAVE DULY CONSTITUTED BOARDS OF DIRECTORS OR OFFICERS, TO EXERCISE THE FUNCTIONS OF THE BOARD IN AN EX OFFICIO CAPACITY, SOLELY FOR PURPOSES OF IMPLEMENTING THE DISPOSITION OF SUCH ASSETS IN ACCORDANCE WITH THIS ACT, EXISTING LAWS, AND APPLICABLE RULES AND REGULATIONS; AND [(i)] (L) Other guidelines as may be necessary to fulfill its mandate under this Act. THE TRUST FUND MANAGEMENT COMMITTEE SHALL ENSURE THAT ITS POLICIES AND DECISIONS ARE INFORMED BY REGULAR CONSULTATION WITH THE PCA AND REPRESENTATIVE ORGANIZATIONS OF COCONUT FARMERS. THE SECRETARY OF THE DOF, OR HIS DESIGNATED ALTERNATE, WITH A RANK OF UNDERSECRETARY, SHALL SERVE AS THE CHAIRPERSON OF THE TRUST FUND MANAGEMENT COMMITTEE. XXX"

SEC. 5. Section 13 of Republic Act No. 11524 is hereby amended to read as

follows: "SEC. 13. Disposition of Non-Cash Coconut Levy Assets. - Coconut Levy Assets defined in Section 3 hereof, which are assigned by the Trust Fund Management Committee to DDEs, shall be privatized or disposed OF, subject to the regulatory approvals as required by law [within the period of five (5) years from the effectivity of this Act.]: PROVIDED, THAT ASSETS DETERMINED BY THE TRUST FUND MANAGEMENT COMMITTEE TO DIRECTLY BENEFIT THE COCONUT INDUSTRY

AND ITS BENEFICIARIES MAY BE ACQUIRED OR UTILIZED BY THE NATIONAL GOVERNMENT FOR SUCH PURPOSE: PROVIDED, FURTHER, THAT NO DISPOSITION SHALL BE APPROVED UNLESS IT DEMONSTRATES CLEAR AND MEASURABLE BENEFIT TO COCONUT FARMERS, INCLUDING INCOME GENERATION OR EMPLOYMENT CREATION. FOR PURPOSES OF THIS ACT, DISPOSITION AND PRIVATIZATION SHALL, WHERE APPROPRIATE, INCLUDE THE DISSOLUTION OR SALE OF COCONUT LEVY ASSETS, AS WELL AS THE ACQUISITION OR UTILIZATION THEREOF BY THE NATIONAL GOVERNMENT, WHERE SUCH ACTION IS DETERMINED TO ADVANCE THE BROADER INTEREST AND LONG- TERM DEVELOPMENT OF THE COCONUT INDUSTRY: PROVIDED, THAT ANY ACQUISITION OR UTILIZATION OF ASSETS BY THE NATIONAL GOVERNMENT SHALL BE SUBJECT TO A FAVORABLE RECOMMENDATION BASED ON A THOROUGH STUDY CONDUCTED BY AN EXTERNAL AND INDEPENDENT ORGANIZATION OR RESEARCH OR CONSULTING FIRM, TO BE PROCURED BY AND AT THE EXPENSE OF THE REQUESTING GOVERNMENT ENTITY, AND SUBJECT TO THE APPROVAL OF THE TRUST FUND MANAGEMENT COMMITTEE. NON-CASH COCONUT LEVY ASSETS SHALL, UPON REVIEW AND RECOMMENDATION OF THE TRUST FUND MANAGER, BE ASSIGNED BY THE TRUST FUND MANAGEMENT COMMITTEE TO THE APPROPRIATE DDES FOR PURPOSES OF FACILITATING THEIR DISPOSITION WITHIN ONE (1) YEAR FROM THE RECONVEYANCE OF SUCH ASSETS TO THE NATIONAL GOVERNMENT. THE DDE SHALL BE RESPONSIBLE FOR THE DISPOSITION OF THE ASSIGNED ASSET WITHIN TEN (10) YEARS FROM THE DATE OF SUCH ASSIGNMENT. THE TRUST FUND MANAGEMENT COMMITTEE MAY GRANT AN EXTENSION OF THE DISPOSITION PERIOD: PROVIDED, THAT SUCH EXTENSION IS JUSTIFIED IN WRITING BY THE CONCERNED DDE. THE TRUST FUND MANAGEMENT COMMITTEE MAY LIKEWISE REASSIGN ASSETS TO ANOTHER DDE FOR REASONS OF PRACTICALITY OR EFFICIENCY. This Act shall in no case exempt Coconut Levy Assets from the respective jurisdictions of the various applicable regulators, particularly the [Governance Commission for Government-owned or controlled Corporations (GCG)] GCG, the Bangko Sentral ng Pilipinas (BSP), the

Philippine Deposit Insurance Corporation (PDIC), and the Insurance Commission (IC)."

SEC. 6. Section 16 of Republic Act No. 11524 is hereby amended to read as

follows: "SEC. 16. Reporting Requirements. - TO ENSURE TRANSPARENCY, ACCOUNTABILITY, AND PUBLIC PARTICIPATION IN THE IMPLEMENTATION OF THE PLAN, THE PCA SHALL PUBLISH AN ANNUAL REPORT CONTAINING, AMONG OTHERS, THE FOLLOWING INFORMATION: (A) ANNUAL AND QUARTERLY BUDGETS, ALLOCATIONS, AND RELEASES; (B) STATUS OF PROJECT IMPLEMENTATION, INCLUDING PHYSICAL AND FINANCIAL ACCOMPLISHMENTS; (C) NAMES OF BENEFICIARY COOPERATIVES, ORGANIZATIONS, AND INDIVIDUALS, SUBJECT TO APPLICABLE DATA PRIVACY LAWS; AND (D) AUDIT FINDINGS, EVALUATION REPORTS, AND OTHER RELEVANT INFORMATION. XXx."

SEC. 7. Implementing Rules and Regulations. - The rules and regulations

necessary for the effective and efficient enforcement of the provisions of this Act shall be formulated by the DA, through the PCA, in consultation with the DOF, DBM, DOST, DTI, DEPDev, DOJ, relevant government agencies, LGUs, the private sector, and other stakeholders, and shall be implemented within ninety (90) days from the effectivity of this Act. Unjustified or willful failure or refusal of the concerned government agencies to promulgate the implementing rules and regulations (IRR) within the specified period shall subject the heads of these government agencies to administrative penalties under applicable civil service laws. Should the IRR contain provisions that are contrary to this Act, the heads of the government agencies responsible for such provision, when done in bad faith or with gross negligence, shall be held administratively liable.

SEC. 8. Repealing Clause. - All laws, presidential decrees, executive orders,

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

SEC. 9. Separability Clause. - If any provision of this Act is declared

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

SEC. 10. Effectivity. - This Act shall take effect after fifteen (15) days following

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