Law Summary
Declaration of Policy
- Consolidates benefits due to coconut farmers, especially poor and marginalized.
- Aims to expedite benefit delivery for increased income, poverty alleviation, and social equality.
Definition of Terms
- "Coconut Farmer": owners or leaseholders of up to 5 hectares, farm workers/laborers.
- "Coconut Levy Assets": Properties acquired through Coconut Levy Funds, including shares, oil mills group, holdings, converted preferred shares.
- "Coconut Levy Funds": Various levies and fees related to copra sales under specified statutes.
- "Designated Disposition Entity (DDE)": Government-owned agencies involved in privatization and management processes.
Preparation of the Coconut Farmers and Industry Development Plan
- PCA to prepare Plan, approved by the President.
- Consultation with farmers, industry stakeholders, government agencies.
- 50-year horizon focused on: increased productivity, poverty alleviation, social equity, rehabilitation, and modernization.
- National programs on community enterprises, social protection, farmer organization, research, integrated processing.
- Detailed funding allocation percentages for research, training, crop insurance, diversification, infrastructure, health, scholarship, credit, and processing facilities.
- Annual verification of coconut farmers registry mandated.
- Plan subject to advisory review by DBM, DOF, DTI, and NEDA.
Philippine Coconut Authority (PCA) Board Reconstitution
- PCA is strengthened and reconstituted.
- Board composition includes Secretaries of Agriculture, Finance, Budget, Science and Technology, Trade; PCA Administrator; 3 farmer representatives (Luzon, Visayas, Mindanao).
- Farmer reps must own no more than 5 hectares, registered, and have experience.
- Terms and nomination processes detailed.
Reconveyance of Coconut Levy Assets and Funds
- Within 1 year, assets/funds in government custody must be reconveyed to the Republic.
- Stock certificates delivered to BTr for safekeeping; cash assets transferred to Trust Fund.
- Prohibition of TROs/injunctions except by Supreme Court.
- PCGG to conduct full inventory; COA to audit.
- Audit reports published nationally.
- Permits third-party appraisals.
Coconut Farmers and Industry Trust Fund
- Created and capitalized by BTr.
- Separate from PCA annual appropriations.
- Initial capitalization from proceeds of converted SMC shares, UCPB assets, cash assets.
- Scheduled annual funding from P10B in the 1st and 2nd years up to P25B in the 5th year.
- Fund includes proceeds of privatization of Coconut Levy Assets, to be disposed within 5 years.
- Annual disbursement floor of P5B to implementing agencies.
Utilization of the Trust Fund
- Must be in accordance with the approved Coconut Farmers and Industry Development Plan.
- Initial allocation of P5B available for projects, including plan formulation.
Trust Fund Management Committee
- Composed of DOF, DBM, DOJ representatives.
- Responsibilities include setting investment strategy, priorities, asset allocation, policies, annual funding allocations.
- BTr acts as Secretariat and custodian.
- Management expenses capped at 0.5% of Trust Fund principal.
Department of Finance as Trust Fund Manager
- Implements investment strategy, manages portfolio.
- Tracks market trends, securities, company financial metrics.
- Recommends designated disposition entities.
Bangko Sentral ng Pilipinas as Depository
- Holds and accounts for Trust Fund assets.
- Releases funds/securities upon proper instruction.
- Ensures investments are in government or guaranteed securities.
Disposition of Non-Cash Coconut Levy Assets
- Assigned DDEs to privatize assets within 5 years.
- Subject to regulatory approvals.
- DDEs empowered to manage, market, dispose assets, enter partnerships.
- May require corporate restructuring for disposition.
- Maintenance expenses not drawn from cash assets.
Remittance of Privatization Proceeds
- All proceeds remitted to Trust Fund except approved expenses retained by DDEs.
Reporting Requirements
- Trust Fund Management Committee submits semi-annual disposition reports to President and Congressional Oversight Committee.
- DDEs to submit annual privatization reports.
Governance and Oversight
- Suppletory application of GOCC Governance Act where not inconsistent.
- Congressional Oversight Committee on Agriculture and Fisheries Modernization to exercise oversight.
Final Provisions
- Separability Clause preserves unaffected provisions if one held invalid.
- Repealing clause nullifies inconsistent laws or orders.
- Effectivity upon 15 days after official publication.