ESTABLISHING THE COTTON RESEARCH AND DEVELOPMENT INSTITUTE

• Number: Presidential Decree No. 1432
• Sections: 13

Preamble

WHEREAS, Presidential Decree No. 350, as amended by

Presidential Decree No. 1063, provided for the development of a viable

cotton-growing industry in the Philippines;

WHEREAS, the development of the cotton industry is dependent

upon the availability of effective and efficient cotton production, processing,

and utilization technology, and the transfer of such technology to users

thereof;

WHEREAS, there is need to strengthen and accelerate current

efforts in cotton research and development;

WHEREAS, a strong specialized organization with highly

competent full time teams of researchers and development technologists amply

supported with facilities, equipment, funds and staff, is required for the

implementation of cotton research and development programs fully responsive to

the demands of the industry;

NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the

Republic of the Philippines, by virtue of the powers in me vested by the

Constitution do hereby decree and order the following:

Section 1

SECTION 1. There is hereby established the Cotton Research

and Development Institute attached to the Don Mariano Marcos State University,

Batac, Ilocos Norte, to strengthen and accelerate current efforts in the

specialized areas of cotton research and development in order to support the

national objectives of attaining self-sufficiency in cotton in the shortest time

possible.

Section 2

SEC. 2. The Institute shall have the following powers and

functions:

To design, encourage, supervise, fund and undertake research and development

programs in cotton consistent with the policies of the Philippine Cotton

Corporation and the requirements of the cotton-growing industry, specifically in

the areas of varietal improvement, agronomic practices, pest management,

post-harvest processing and utilization technology, socio-economics, transfer of

technology and other fields related to the development of efficient cotton

production, post-harvest, and utilization technology and technology transfer;

To monitor all problems encountered by cotton farmers and processors in

production, post-harvest processing, storage and marketing;

To set and prescribe the directions for cotton research in the Philippines

and to review and integrate cotton research studies and projects of other

agencies;

To assist in the training requirements of cotton production and industry

manpower development, and undertake programs related thereto;

To assist in the multiplication and storage of quality seed and the

dissemination of improved cotton varieties;

To develop up-to-date information on cotton production and post-harvest

technology;

To hire, employ and dismiss personnel and to enter into contracts of

agreements with them;

To purchase, own, hold, lease and dispose of all types of property, real or

chattel, essential for carrying out its functions;

To enter into contracts with any agency, entity or person in the pursuit of

its objectives;

To delegate such selected privileges, powers or authority as may be allowed

by law to corporations, cooperatives, associations, or individuals, as may

presently exist or be organized, to assist the Institute in carrying out its

functions; and

To undertake all such other activities required for, and related to,

research and development in the cotton industry.

Section 3

SEC. 3. Policies, plans and programs of the Institute shall

be subject to the approval of an Advisory Board, and shall be reviewed annually

by the Board of Trustees of the Don Mariano Marcos State University.

The Board of the Institute shall be composed of the following:

The Secretary of Agriculture

The President of the Philippine Cotton Corporation

The President of the Don Mariano Marcos State University

The Director of the Cotton Research and Development Institute

Three others representing the research and development sectors to be

appointed by the President of the Philippines.

The Secretary of Agriculture shall be the Chairman of the Board.

Section 4

SEC. 4. The Advisory Board is hereby empowered to determine

and create an organizational structure appropriate for the Institute including

the number, position and salaries of its officers and employees.

The Board shall appoint all officers and employees of the Institute shall

establish a compensation scheme including allowances, honoraria and other

benefits, and such other conditions of employment as it may deem proper,

including the engagement and provision of services of consultants and the detail

of personnel, to and from the Institute, as the Board may deem necessary for the

development of a viable cotton-growing industry.

The Institute shall be heeded by an Executive Director who shall be appointed

by the Board of the Institute. He will be assisted by such number of Deputy

Directors as may be appointed by the Board as required for carrying out the

functions of the Institute.

By mutual agreement of the Board of Directors of the Philippine Cotton

Corporation and the Board of the Institute, transfer to the Institute of all, or

selected, existing employees of the Corporation currently involved in research

and development activities shall be effected.

All technical and managerial employees of the Institute shall be selected on

the basis of merit and fitness and are not subject to the regulation of the

Office of Compensation and position Classification.

Section 5

SEC. 5. The Institute may, for the purpose of its research

and development activities, obtain the services of scholars, scientists and

technical personnel of any agency of the government, the private sector, or from

abroad. Such personnel may be paid honoraria and allowances by the Institute,

exempted from existing provisions on honoraria and allowances contained in LOI

565 as implemented.

Section 6

SEC. 6. The Institute is hereby authorized to construct

buildings and other facilities, lease and buy land, and purchase equipment

locally and abroad as may be necessary to carry out its functions. Furthermore,

the Institute shall be exempt from all forms of taxes and import duties and

other imposts on any materials, equipment, articles, goods, and services that

may be imported from abroad when not available locally on favorable terms.

Section 7

SEC. 7. Expenditures and disbursements made by the Institute

in the conduct of its activities shall be subject to special auditing and

accounting rules and regulations suited to the requirements of research and

development. These special auditing rules and regulations shall be formulated by

the Commission on Audit and the Institute within four (4) months of the

effectivity of this Decree.

Section 8

SEC. 8. To enable the Institute to carry out its functions

there is hereby appropriated out of any funds in the National Treasury not

otherwise appropriated the amount of FIVE MILLION PESOS (P5,000,000), with an

amount of least equal to this to be likewise appropriated each year for a period

of three years, and such other amounts as may be required thereafter. To

supplement the initial year's funding of the Institute, the Philippine Cotton

Corporation is hereby authorized to transfer funds from the Special Cotton

Financing Fund to the Institute in the amount of FIVE MILLION PESOS

(P5,000,000).

Funds of the Institute shall be used only for purposes approved by its

Board.

Section 9

SEC. 9. The Institute is hereby authorized to negotiate for

the enter into contracts relating to loans to help finance its capital and

operating expenditures.

Section 10

SEC. 10. The Institute may solicit and receive grants and

donations from government and private entities, whether local or foreign, and

administer the same in accordance with the terms of the donation or grant,

consistent with the Institute's objectives and functions.

Section 11

SEC. 11. Any fund and all savings of the Institute shall

constitute a revolving fund which shall not be reverted to the General Fund.

Section 12

SEC. 12. This Decree shall take effect immediately. All

acts, parts of acts, executive orders, ordinances, rules and regulations which

are inconsistent with the provisions of this Presidential Decree are hereby

repealed, amended or modified accordingly.

Done in the City of Manila, this 10th day of June, in the year of Our Lord,

nineteen hundred and seventy-eight.

(Sgd.) FERDINAND E. MARCOS

President of the

Philippines

By the President:

(Sgd.) JACOBO C. CLAVE

Presidential Executive

Assistant