COTTON INDUSTRY DEVELOPMENT LAW OF 1998

Republic Act No. 8486

Summary of the Cotton Industry Development Law of 1998

Declaration of Principles and Policy (Section 2):
- Develop the cotton industry to its fullest potential.
- Safeguard the interest of small cotton farmers.
- Provide support for cotton production, research, extension, training, financial assistance, and other services.
- Prescribe and enforce regulations and quality control standards.
- Exploit the industry's potential to increase farmers' income, reduce cotton imports, and generate foreign exchange.

Merger of PCC and CRDI into CODA (Section 3):
- The Philippine Cotton Corporation (PCC) and the Cotton Research and Development Institute (CRDI) are merged into the Cotton Development Administration (CODA).
- CODA is an attached agency of the Department of Agriculture.

Objectives of CODA (Section 4):
- Improve the quality of life of Filipino farmers through cotton-growing.
- Safeguard the profitability of cotton farmers through adoption of prescribed technology.
- Ensure cotton is planted only during prescribed times and in suitable areas, and only certified seed is used.

Functions of CODA (Section 5):
- Undertake research studies on all aspects of the industry.
- Package and disseminate recommended production technology.
- Design and implement specialized extension programs, training, and communications programs.
- Promulgate and enforce rules and regulations on cotton production, closed season planting, seed production and distribution, suitable areas, pest control, and quarantine measures.
- Identify suitable areas for cotton-growing and promote production.
- Support and enhance efforts of cotton farmers' associations.
- Produce breeder, foundation, and registered seeds; set and enforce seed standards; supervise certified seed production.
- Provide ginning services to small cotton farmers.
- Provide assistance to small farmers in marketing their produce.
- Design and implement an industry monitoring and information system.
- Undertake industry manpower development.
- Assist farmers in sourcing funds for cotton production.
- Conduct regular consultations with industry stakeholders.
- Design and administer incentives to promote private sector investments.
- Develop the export potentials of cotton.
- Undertake other functions necessary for the success of the industry and promotion of small cotton growers' interests.

Powers of CODA (Section 6):
- Administer and regulate the cotton industry in the Philippines.
- Incur obligations or enter into contracts essential for its administration and objectives.
- Own, purchase, lease, mortgage, encumber or dispose of real and personal property.
- Accept and receive financial and other support from private and other sources.
- Promulgate and enforce rules and regulations on cotton production.
- Impose administrative sanctions for violation of rules and regulations.
- Establish, operate and maintain testing and experimental stations.
- Accredit associations/confederations of cotton farmers, growers, textile millers, ginners and other associations.
- Undertake measures to ensure small farmers receive a fair price for their produce.

Governing Board of CODA (Section 7):
- Composed of the Secretary of Agriculture (ex-officio Chairman), Secretary of Trade and Industry, Secretary of Agrarian Reform, Executive Director of Philippine Textile Research Institute, Director of Philippine Council for Agriculture and Resources Research and Development, one representative from government financial institutions, one representative from textile millers, one representative from ginners, and three representatives from cotton farmers associations in Luzon, Visayas, and Mindanao.

Term of Office of Board Members (Section 8):
- Appointed members shall hold office for a period of two (2) years from the date of their appointments, unless sooner removed for cause by their respective associations.

Powers and Functions of the Board (Section 9):
- Act as the policy making body of CODA.
- Formulate policies, promulgate regulations, and prescribe rules to attain CODA's purposes and objectives.

Organization of CODA (Section 10):
- An Administrator appointed by the President of the Philippines, upon the recommendation of the Secretary of Agriculture, shall be the Chief Executive Officer of CODA.
- The Administrator shall be assisted by two (2) Deputy Administrators appointed by the President upon recommendation of the Secretary of Agriculture.
- The Board shall determine and create the organizational structure of CODA and appoint all other officers.

Promulgation of Rules and Regulations (Section 11):
- The Governing Board shall promulgate rules and regulations for the full implementation of this Act within ninety (90) days of its effectivity.
- The rules and regulations shall take effect upon publication in a newspaper of general circulation and shall be amended by the Governing Board as deemed appropriate.

Prohibited Acts (Section 12):
- Planting of cotton at times other than those prescribed by CODA.
- Sale, distribution, and planting of cotton seeds not previously certified by the Bureau of Plant Industry.

Authority to Cut and Burn (Section 13):
- CODA, after thorough investigation and observance of due process, shall cut and burn all cotton planted outside the prescribed planting season or with seeds not previously certified by the Bureau of Plant Industry, to safeguard the interest of other affected farmers and the long-term survival of the industry.

Dissolution of PCC and CRDI (Section 14):
- The Philippine Cotton Corporation (PCC) and the Cotton Research and Development Institute (CRDI) are dissolved.
- All functions, assets, liabilities, records, appropriation, properties, facilities and equipment of PCC and CRDI are transferred to CODA, except those under the administration of the APT.

Transitory Provisions (Section 15):
- Upon approval of this Act, officers and employees of PCC and CRDI shall continue to serve in a hold-over capacity, perform their duties and responsibilities, and receive corresponding salaries and benefits, until a new staffing pattern is approved by the Governing Board.
- The new position structure and staffing pattern of CODA shall be approved and implemented by the Governing Board within one hundred twenty (120) days from the approval of this Act.
- Those incumbents whose positions are not included or are not reappointed shall be paid retirement or separation benefits equivalent to one and one-fourth (1¼) month basic salary for every year of their respective government service or the nearest equivalent fraction thereof favorable to them on the basis of the highest salary, with a minimum of Ten thousand pesos (P10,000.00).
- They shall also be entitled to the return of GSIS personnel contributions pertaining to retirement, payment of the corresponding government share with interest, commutation of unused vacation and sick leaves, and an additional ten percent (10%) for those who retire after rendering government services for thirty-one (31) years or more and avail themselves of the incentive benefits.
- The application for retirement or voluntary separation shall be accepted unless the services of the applicant shall be deemed necessary.

Appropriation (Section 16):
- There is hereby authorized to be appropriated from the National Treasury not otherwise appropriated, the sums necessary to carry into effect the provisions of this Act.
- Thereafter, it shall be included in the General Appropriations Act.

Separability Clause (Section 17):
- If any section or provision of this Act shall be held unconstitutional, other provisions shall not be affected and shall remain in full force and effect.

Suppletory Application of Existing Legislation (Section 18):
- All existing legislation regarding the cotton industry, not inconsistent with this law, shall have suppletory effect.

Repealing Clause (Section 19):
- All laws, issuances, decrees or parts thereof inconsistent with the provisions of this Act are hereby repealed.

Effectivity Clause (Section 20):
- This Act shall take effect upon its approval.