Coconut Farmers and Industry Trust Fund Act

Coconut Farmer: owners, leaseholders, tenants with farms not exceeding five hectares, including seasonal or itinerant laborers.
Coconut Levy Assets: all properties acquired through Coconut Levy Funds, including shares, companies, and preferred shares.
Coconut Levy Funds: funds generated via levies on copra and related products, created under various laws and decrees.
Designated Disposition Entity (DDE): government-owned entities responsible for asset disposition.

Prepared by the Philippine Coconut Authority (PCA) and approved by the President.
Associates various stakeholders for consultation and development.
Sets 50-year direction for industry development with objectives:
- Increase productivity and incomes
- Alleviate poverty and promote social equity
- Industry rehabilitation and modernization
Includes programs for community enterprises, social protection, farmer organization, research, and processing.
Criteria for beneficiary targeting, impact monitoring, and funding allocation included.
Annual funding percentages specified across different programs (seed farms, training, research, insurance, diversification, facilities, credit, infrastructure, scholarships, health).
PCA to finalize a farmer registry and submit plan within 120 days, with agency coordination and advisory reviews.

PCA reconstituted as independent public corporation.
PCA Board composition includes key government secretaries and three farmer representatives from Luzon, Visayas, and Mindanao.
Farmer representatives must meet specific qualifications and be nominated by active farmer organizations.
One-year terms for Board appointees, with processes for nomination and appointment.

All agencies (except BTr) must reconvey Coconut Levy Assets to the Republic within one year.
Assets include stocks, cash, and properties identified by Supreme Court as government-owned.
Presidential Commission on Good Government (PCGG) tasked to inventory assets and report.
Commission on Audit (COA) to audit asset inventory and valuation with public disclosure.
Third-party appraisals may be procured.

Trust Fund created for 50 years for the benefit of coconut farmers and industry development.
Separate from PCA’s regular appropriations.
Initial capital from SMC shares, dividends, cash assets with a specified yearly transfer schedule totaling billions of pesos.
Proceeds from asset privatization added to the Fund.
Annual minimum allocation of 5 billion pesos for projects.

Trust Fund used per the Development Plan.
Initial 5 billion pesos allocation provided to designated implementing agencies.
Allocation for PCA for plan formulation specified.

Composed of representatives from DOF, DBM, DOJ.
Responsible for investment strategy, asset allocation, fund disbursement guidelines, and other administrative policies.
BTr serves as Secretariat, maintains records, and is subject to COA audit.
Management expenses capped at 0.5% of Trust Fund principal.

DOF tasked with implementing investment strategies and portfolio management.
Monitors market, recommends strategy, supervises designated disposition entities (DDEs).

Holds and manages Trust Fund assets, releases funds to implementing agencies per plan.
Invests cash assets in government securities.
Requires DOF approval for managing non-cash assets.

DDEs hold title, manage, conserve, and market assets on behalf of government.
Authorized to execute contracts, engage experts, establish rules, and prepare disposition plans.
May recommend corporate restructuring prior to disposition.
Maintenance expenses not taken from cash Coconut Levy Assets.

GOCC Governance Act applies where consistent.
Separability clause ensures validity of unaffected provisions if others are invalidated.
Repealing clause amends inconsistent laws.
Act’s effectivity set 15 days after publication in official gazette or newspapers.