Creation and Composition of the Philippine Sugar Commission
- Established within 30 days of the decree issuance.
- Composed of one Chairman and six Associate Commissioners.
- Members appointed by the President of the Philippines.
- Commissioners must be Filipino citizens with experience and recognized competence in the sugar industry.
- Office term: 4 years unless removed for cause.
- Compensation: Chairman receives P50,000 annually plus allowances; Associate Commissioners receive P40,000 plus allowances.
- Regular meetings twice monthly with the possibility of special sessions.
Powers and Functions of the Commission
- Formulate policies covering all sugar industry phases.
- Conduct inquiries to improve industry methods.
- Enter into contracts with individuals, corporations, and foreign governments.
- Levy and collect fees to finance operations and social welfare for industry workers; fees subject to Presidential approval.
- Serve as the single buying and selling agency for sugar at the quedan-permit level.
- Set floor-ceiling prices ensuring fair returns, considering production costs, profit margins set by authorized agencies, economic factors, and minimum wages.
- Adjust prices based on cost changes and consumer price indices.
- Promulgate rules, regulations, and impose penalties for violations.
- Supervise or control mills/refineries failing financially or operationally.
- Organize sugar planters' cooperatives nationwide.
- Submit periodic reports with recommendations to the President.
Role of the Chief Executive Officer (Chairman)
- The Chairman directs and controls Commission business.
- Prepares organizational plans subject to Commission approval.
- Manages affairs and appoints personnel with salary fixation exempted from usual wage laws, except for clerical/janitorial staff.
- Can designate an acting Chairman during absence or incapacity.
Social Welfare Office
- Established under the Chairman's office to address welfare concerns in the sugar industry.
Funding and Capitalization
- Establishes a fund deposited at the Philippine National Bank for industry development and market stabilization.
- Stabilization fees are collected: initially P2 per picul for 5 years, then P1 per picul annually thereafter.
- Fifty centavos per picul from levies supports Commission personnel-related costs.
- Fees constitute a lien on sugar quedan and warehouse receipts, payable immediately.
Audit and Accountability
- Chairman, Commission on Audit appoints audit representatives.
- Auditor salaries paid by the Commission.
- Commission affairs audited pursuant to law.
- Annual audit reports submitted to Commission on Audit Chairman, the Commission, and the President.
Financing Continuity
- Commission inherits revenues and impositions previously granted to the abolished Philippine Sugar Institute and Sugar Quota Administration.
Transitory Arrangements
- Abolishes Philippine Sugar Institute and Sugar Quota Administration;
- Transfers all assets, liabilities, records to the new Commission.
- Commission may retain personnel from abolished agencies; non-retained personnel entitled to retirement benefits or gratuity.
Legal Repeals and Effectivity
- Repeals or modifies laws inconsistent with this Decree.
- The Decree takes effect immediately upon promulgation.