M a n i l a



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 means 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. 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. The Institute shall have the following powers and functions:

(a) 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;

(b) To monitor all problems encountered by cotton farmers and processors in production, post-harvest processing, storage and marketing;

(c) To set and prescribe the directions for cotton research in the Philippines and to review and integrate cotton research studies and projects of improvement cotton varieties;

(d) To assist in the training requirements of cotton production and industry manpower development, and undertake programs related thereto;

(e) To assist in the multiplication and storage of quality seed and the dissemination of improved cotton varieties;

(f) To develop up-to-date information on cotton production and post-harvest technology;

(g) To hire, employ and dismiss personnel and to enter into contracts of agreements with them;

(h) To purchase, own, hold, lease and dispose of all types of property, real or chattel, essential for carrying out its functions;

(i) To enter into contracts with any agency, entity or person in the pursuit of its objectives;

(j) 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

(k) To undertake all such other activities required for, and related to, research and development in the cotton industry.

Section 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 State University.

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

(a) The Secretary of Agriculture

(b) The President of the Philippine Cotton Corporation

(c) The President of the Don Mariano Marcos State University

(d) The Director of the Cotton Research and Development Institute

(e) 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. 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 headed by an Executive Director who shall be appointed by the Board of 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 solely of merit and fitness and are not subject to the regulation of the Office of Compensation and position Classification.

Section 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. 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. Expenditure and disbursements made by the Institute in the conduct of its activity 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. 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. 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. 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. Any fund and all savings of the Institute shall constitute a revolving fund which shall not be reverted to the General Fund.

Section 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 of June, in the year of Our Lord, Nineteen Hundred and Seventy-Eight.

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