Commission Composition and Tenure
- The Commission consists of one (1) Commissioner who serves as Chairman, and six (6) Associate Commissioners (Section 3).
- The President of the Philippines appoints the Chairman and all members (Section 3).
- Members must be Filipino citizens with sufficient experience in the sugar industry and proven honesty, integrity, and recognized competence (Section 3).
- The Chairman and members hold office for a term of four (4) years, unless sooner removed for cause (Section 3).
- The Chairman and members must hold regular sessions twice a month, and special sessions may be called by the Chairman as needed (Section 3).
Appointment, Compensation, and Meetings
- The Commissioner (Chairman) receives annual compensation of P50.000 plus a commutable representation and transportation allowance of P1,000 monthly (Section 3).
- Each Associate Commissioner receives annual compensation of P40,000 plus a commutable representation and transportation allowance of P1,000 monthly (Section 3).
- The Commission meets in regular session twice a month and may hold special sessions when called by the Chairman (Section 3).
Powers and Functions of the Commission
- The Commission establishes policies for all phases of the sugar industry and inquires into other aspects to improve existing methods and systems (Section 4).
- The Commission may enter into contracts, transactions, or undertakings of whatever nature necessary or incidental to its functions and objectives with any natural or juridical person and with any foreign government, private corporations, partnerships, institutions, or private individuals (Section 4).
- The Commission may levy and collect charges, fees and contributions to finance its operation, provide social amelioration of workers in the industry, and for other purposes the Commission determines (Section 4).
- The amount of the fees, charges and contributions is subject to approval by the President (Section 4).
- The Commission acts as the single buying and selling agency of sugar on the quedan-permit level to promote effective merchandising and distribution (Section 4).
- The Commission determines the floor-ceiling price of sugar that insures a fair return for planters, millers, traders, wholesalers, and retailers (Section 4).
- For each crop year, the sugar floor-ceiling price equals: the total anticipated cost of production per picul as determined by the Commission plus a corresponding reasonable margin of profit set by the Price Control Council or any other government agency authorized to regulate prices of commodities and services, taking into consideration effects of devaluation and other economic factors affecting production, processing, marketing, transportation, and other related expenses, including the minimum wage for agricultural and industrial workers (Section 4).
- The floor-ceiling price is adjusted in direct relation to significant changes in the cost of production as determined by the Commission and the Consumers Price Index prepared by the Central Bank of the Philippines (Section 4).
- The Commission promulgates rules and regulations to carry out the Decree’s provisions and to impose penalties for violations (Section 4).
- The Commission may assume control and/or supervision of any sugar mill or refinery that has failed to meet its financial and other contracted obligations for two (2) years or has become inefficient in operation (Section 4).
- The Commission organizes cooperatives of sugar planters throughout the Philippines (Section 4).
- The Commission performs other functions necessary and incidental to its purposes and objectives (Section 4).
- The Commission submits periodic reports to the President on its surveys, studies, investigations, and recommendations for appropriate action (Section 4).
Chairman as Chief Executive Officer
- The Chairman is the Commission’s Chief Executive Officer and has direction and control of the Commission’s business on behalf of the Commission (Section 5).
- The Chairman prepares an organizational plan of the office and plantilla of personnel, subject to the Commission’s approval (Section 5).
- The Chairman directs and manages the Commission’s affairs and business subject to the Commission’s supervision and control (Section 5).
- The Chairman appoints necessary personnel and fixes salaries approved by the Commission, and those salaries are exempt from laws, rules and regulations on wage and position classification, except for clerical and janitorial services (Section 5).
- If the Chairman is absent or temporarily incapacitated, the Chairman designates from among the Commissioners an acting Chairman (Section 5).
Social Welfare Office
- A Social Welfare Office exists under the Office of the Chairman (Section 6).
Special Fund, Stabilization Fees, and PNB Trust
- A fund is established for the Commission to finance the growth and development of the sugar industry and all its components, and to stabilize the domestic market including the foreign market, to be administered in trust by the Commission and deposited in the Philippine National Bank (Section 7).
- The fund is derived from stabilization collections provided in the Decree, including stabilization fees collected from planters and millers at P2.00 for every picul produced and milled for five (5) years from approval of the Decree (Section 7).
- After the five-year period, stabilization fees collected are P1.00 for every picul produced and milled every year thereafter (Section 7).
- Of the amounts levied on planters, millers, and traders under Section 4 (c), fifty centavos (0.50) per picul is used for payment of salaries and wages of personnel, fringe benefits and allowances of officers and employees to accomplish efficient performance of Commission duties (Section 7).
- The portion mentioned above constitutes a lien on sugar quedan and/or warehouse receipts (Section 7).
- Planters and mill companies, sugar centrals, and refineries must pay the lien amount immediately to the Commission (Section 7).
Audit Requirement and Reporting
- The Chairman and the Commission on Audit appoint a representative to the Commission and necessary personnel to assist in auditing (Section 8).
- Auditor and personnel salaries are determined and paid by the Commission (Section 8).
- The Commission’s affairs are audited in accordance with law and pertinent rules and regulations (Section 8).
- A yearly audit report is submitted by the auditor to the Chairman, Commission on Audit, the Commission, and the President of the Philippines (Section 8).
Financing Through Prior Revenues
- Until otherwise provided, the Commission continues to receive the proceeds of revenues and other impositions granted by law to the Philippine Sugar Institute and the Sugar Quota Administration (Section 9).
Transitory Absorption and Personnel Treatment
- The Philippine Sugar Institute and the Sugar Quota Administration are abolished and absorbed effective upon the organization of the Commission (Section 10).
- Their assets, liabilities and records are transferred to the Commission (Section 10).
- The Commission may retain personnel of the abolished agencies as it deems necessary (Section 10).
- Personnel not retained are entitled to retirement benefits, or otherwise receive gratuity determined by the Commission (Section 10).
Repeal, Effectivity, and Timing
- All laws or parts of laws inconsistent with the Decree are repealed or modified accordingly (Section 11).
- The Decree takes effect immediately (Section 12).
- The Decree is issued on February 02, 1974 and is signed by FERDINAND E. MARCOS as President, with ALEJANDRO MELCHOR as Executive Secretary by authority of the President (signature block).