Coconut Farmers and Industry Trust Fund Act

Case Overview and Summary

Summary of Republic Act No. 11524 (Coconut Farmers and Industry Trust Fund Act)

Definition of Terms (Section 3):
- Coconut Farmer:
    1) Owner of coconut farm not more than 5 hectares who tills the land or has control over cultivation.
    2) Leaseholder with not more than 5 hectares or tenant who tills or supervises cultivation.
    3) Farm worker or laborer engaged in harvesting nuts and processing copra.
- Coconut Levy Assets: Properties acquired through Coconut Levy Funds, including recovered assets.
- Coconut Levy Funds: Funds generated from levies, taxes, charges, and fees on copra or coconut products.
- Designated Disposition Entity (DDE): PMO, LBP, DBP, SSS, GSIS.

Coconut Farmers and Industry Development Plan (Section 4):
- Prepared by PCA and approved by the President.
- Utilization of Trust Fund shall be in accordance with the Plan.
- Objectives: Increased productivity and income, poverty alleviation, education, social equity, rehabilitation and modernization.
- Components: Community-based enterprises, social protection, farmer organization, research, integrated processing.
- Allocation from Trust Fund: 20% for hybrid seed farms and nursery, 8% for farmer training, 5% for research and marketing, 4% for crop insurance, 10% for farm improvements, 10% for shared processing facilities, 5% for farmer organization, 10% for credit programs, 10% for infrastructure, 8% for scholarship program, 10% for health program.

Philippine Coconut Authority (PCA) (Section 5):
- Reconstituted PCA Board composition specified.
- 3 members from coconut farmers sector appointed by the President.

Reconveyance of Coconut Levy Assets and/or Funds (Section 6):
- Within 1 year, government agencies to reconvey title, deliver stock certificates, and transfer cash assets to the Trust Fund.
- PCGG to conduct inventory and accounting of assets within 30 days.
- COA to audit inventory within 1 year.

Coconut Farmers and Industry Trust Fund (Sections 7-12):
- Trust Fund created for 50 years for benefit of coconut farmers and industry.
- Capitalized with proceeds from SMC shares, dividends, and other cash assets.
- BTr to transfer P10 billion in first year, P10 billion in second year, P15 billion in third and fourth years, P25 billion in fifth year, and any remaining amount.
- Augmented with proceeds from privatization of assets within 5 years.
- Minimum P5 billion available annually for implementing agencies.
- Trust Fund Management Committee to set investment strategy.
- DOF designated as Trust Fund Manager.
- BTr designated as depository and custodian.

Disposition of Non-Cash Coconut Levy Assets (Sections 13-16):
- DDEs to privatize or dispose assets within 5 years, subject to regulatory approvals.
- DDEs empowered to implement disposition program, execute documents, engage expertise.
- Proceeds from sale remitted to Trust Fund, except for reimbursable expenses.
- Reporting requirements for Trust Fund Management Committee and DDEs.