[ BAR ADMINISTRATIVE ORDER NO. 16, S. 2013, June 24, 2013 ]

IMPLEMENTING RULES AND REGULATIONS PURSUANT TO REPUBLIC ACT NO. 10089: œAN ACT CREATING THE PHILIPPINE RUBBER RESEARCH INSTITUTE (PRRL) TO DEVELOP THE PHILIPPINE RUBBER INDUSTRY AND FOR OTHER PURPOSES, OTHERWISE KNOWN AS THE PHILIPPINE RUBBER RESEARCH INSTITUTE ACT OF 2010 



SECTION 1. Title. - This Act shall be known as the œPhilippine Rubber Research Institute Act of 2010. 

Rule 1.1. Title - These Rules shall be known and cited as the Implementing Rules and Regulations (IRR) of the Philippine Rubber Research Institute Act of 2010;

Rule 1.2. Purpose - These Rules are promulgated to prescribe the procedure and guidelines in the implementation of the Philippine Rubber Research Institute Act of 2010 to facilitate compliance therewith and achieve the objectives thereof;

SECTION 2. Declaration of Policy - It is hereby declared the policy of the State:

a.
to develop self-reliant industries effectively controlled by Filipino;
b.
to encourage investments and provide incentives to private enterprise, promote employment and livelihood opportunities for the poor;
c.
to ensure well-balanced ecology in the use of natural resources for industrial purpose;
d.
to prioritize education and training particularly in science and technology for sustainable development;
e.
aim to comprehensively realize the goals of human empowerment and economic development in the country through programs and projects that will increase rubber production in the country;
f.
to improve quality of life especially in poor rural communities that depend primarily on this industry.

Rule 2.1. The main objective of these rules and regulations is to strengthen the implementation and enforcement of the provisions of RA 10089 in order to enhance the development and competitiveness of the Philippine rubber industry.

Rule 2.2. The rubber research and development (R&D) and all other aspects of the rubber industry shall be strengthened in order to increase rubber production and improve the quality of life of the rural communities that depend on this industry.

Rule 2.3. The mechanisms and strategies shall be instituted to promote livelihood opportunities for the poor by: a) providing access to quality budded rubber planting materials, modern production technologies, and other support services on production, processing, and marketing of rubber, and b) conducting trainings and capacity building for rubber stakeholders.

Rule 2.4. It shall also encourage investments and provide incentives to private enterprises by: a) providing training and accreditation to budders and tappers, b) providing technical support by experts for all sectors involved in rubber production, processing, and marketing, and c) promoting diversified cropping system, and ensuring good quality of rubber.

SECTION 3. Definition of Terms. - As used in this Act, the following terms shall be defined in this Act as follows:

a)
œPhilippine Rubber Research Institute  refers to the main institute for rubber at the Mindanao State University (MSU) to be based in the Municipality of Naga, Province of Zamboanga Sibugay and its satellite units as may be subsequently established whose mandate is to initiate and administer research and development program to improve quality and increase productivity of rubber especially for the benefit of smallholder rubber producers and processors.
b)
œRubber tree  refers to the robust, perennial tree crop which is the source of natural rubber, also scientifically known as Hevea brasiliensis.
c)
œLatex  refers to a milky usually white fluid that is produced by bark cells of rubber trees, and is the raw material used in the manufacture of industrial, automotive and other latex products.
d)
œSmallholder rubber producers  refer to individuals, cooperatives or corporations owning and/or cultivating five (5) hectares or less of rubber.
e)
œSmallholder rubber processors  refer to individuals, cooperatives or corporations who maintain and/or operate small-scale processing plants of finished or semi finished rubber products and are capable of processing not more than fifty (50) metric tons of rubber annually.
f)
œRubber cooperatives  refer to duly organized and registered enterprises collectively owned and operated by groups of rubber products and/or processors who partake of and share among themselves the benefits and profits of their economic ventures.
g)
œBig holder rubber producers  refer to individuals, cooperatives or corporations owning and/or cultivating more than five (5) hectares of rubber.
h)
œBig holder rubber processors  refer to individuals, cooperatives or corporations that maintain and/or operate large-scale processing plants of finished or semi finished rubber products, capable of processing more than fifty (50) metric tons of rubber annually.

Rule 3.1. As used in this IRR, the following words and phrases shall mean:

3.1.1.
œSelf-reliant industries  refer to established firms - capable of production, utilization and processing of rubber and rubber produce - that are classified as independent or highly unsubsidized by the government.
3.1.2.
œPrivate enterprise  refers to any non-government owned company or firm. This includes sole proprietorship, partnership, or a corporation recognized by the Securities Exchanged Commission (SEC) and is capable of investing and venturing into rubber production and processing.
3.1.3.
œLivelihood opportunities  refer to the income-generating activities as direct or indirect results of proposed and/or existing rubber-related programs and policies.
3.1.4.
œWell-balanced ecology  refers to a sustained healthy environment despite of human interventions and activities.
3.1.5.
œPoor rural communities  refer to the groups of marginalized and underprivileged people in the society, having little or less knowledge and access to livelihood opportunities, who primarily depend but could be potentially tapped for the establishment of the rubber industry.
3.1.6.
œVillage-based rubber enterprises  refer to private- or government-owned firms engaged in rubber production and processing within a rural community, thereby providing livelihood opportunities to members of the community.
3.1.7.
œTechnical know-how  refers to the practical and scientific knowledge on the principles, practices and processes involved in rubber production and processing.
3.1.8.
œAcademic boards  refer to the Technical Working Group (TWG) or committee established in state universities and colleges (SUCs) that are responsible in planning, monitoring and implementing agriculture R&D programs.
3.1.9.
œSatellite units  refer to research stations, under the DA or SUCs, other than the main PRRI office, where rubber research, development, and extension programs are being implemented.
3.1.10.
œManagerial competencies  refer to the qualification of an excellent director having strong leadership and management skills.
3.1.11.
œInformation services  refer to the necessary communication, education, and extension materials and methods for proper and efficient dissemination of information to the recipients.
3.1.12.
œPublic-private partnership  refers to the collaboration between the government and non-government sectors with the aim of uplifting and promoting the Philippine rubber industry.

SECTION 4. Creation of the Philippine Rubber Research Institute. - There is hereby created the Philippine Rubber Research Institute, hereinafter referred to as the PRRI which shall be under the control and supervision of the Department of Agriculture (DA).

Rule 4.1. In the absence of MSU in Naga, Zamboanga Sibugay, the DA shall utilize the Zamboanga Peninsula Integrated Agricultural Research Center (ZAMPIARC) as the transition site of the PRRI.

Rule 4.2. An interim Executive Director of PRRI shall be appointed by the DA Secretary as mentioned in Section 6 of this Act.

SECTION 5. Powers and Functions of the PRRI. - The PRRI shall have the following powers and functions:

a.
Propagate and promote the planting, maintenance, as well as wise utilization of rubber trees as source of latex and finished rubber products;
b.
Enable rubber producers and processors, especially the smallholders, to have access to quality rubber buddings, modern production techniques and other support services from production to marketing of rubber;
c.
Undertake training and capacity-building programs for rubber producers, processors and cooperatives in order to increase production of quality rubber and raise level of income especially of poor smallholders;
d.
Aid in the establishment of village-based rubber enterprises to generate livelihood opportunities;
e.
Promote cooperative development among stakeholders and provide them access to resources, technical know-how, as well as decision-making processes for the enhancement of their rubber enterprises and the protection of their welfare;
f.
Initiate research and development projects on rubber production and processing in order to address technology and policy gaps in promoting a robust rubber industry, ensuring standard in production and meeting demands for quality rubber in both domestic and international trade; and
g.
Enter into memoranda of agreement and receive grants from local and foreign funding agencies through the DA upon the recommendation of the PRRI Advisory Board; or through the respective academic boards of satellite units housed in concerned state universities and colleges upon the recommendation of the PRRI Advisory Board.

Rule 5.1. Jurisdiction - PRRI shall formulate and ensure quality standards for the rubber industry such as protocols in the establishment and management of rubber plantations, harvesting and post-harvest management that will improve the quality of Philippine rubber products in coordination with the existing rubber research institutes, but not limited to the following:

1.
Department of Agriculture - Bureau of Agricultural Research (DA-BAR)
2.
Department of Agriculture - Zamboanga Peninsula Integrated Agricultural Research Center (DA-ZAMPIARC)
3.
University of Southern Mindanao - Philippine Industrial Crops Research Institute (USM-PICRI)
4.
University of the Philippines Los Ba os - College of Forestry and Natural Resources (UPLB-CFNR)

Rule 5.2. PRRI shall serve as a training center to develop highly competent manpower of the rubber industry.

Rule 5.3. PRRI shall provide laboratory services to all sectors of the industry. The laboratory services shall include, but not limited to the following: a) Rubber product standards quality testing; b) Chemical analysis; c) Biotechnology laboratory; and d) Plant disease laboratory.

Rule 5.4. PRRI shall provide information services to all rubber industry players and stakeholders.

SECTION 6. Executive Director of the PRRI. - The PRRI shall be headed by an Executive Director who shall be responsible for the planning, implementation, and supervision of the programs and activities of the PRRI. He shall be appointed by the President of the Philippines for a term of three (3) years, upon recommendation of the DA. All other officers and employees shall be appointed by the Executive Director of the PRRI, in accordance with the Civil Service Law.

The Executive Director must possess high degree of educational, technical and managerial competencies in research and development, as well as integrity and proven probity in public service.

Rule 6.1. The following minimum qualification shall be taken into account in the recommendation of candidates for the position:

a.
Advanced degree in agricultural sciences, preferably a PhD.
b.
Strong research, development and extension experience in the rubber industry
c.
Proven involvement in the rubber industry sector
d.
Management competence

Rule 6.2. The Executive Director shall be assisted by two Deputy Executive Directors: one for Technical, and one for Administrative and Finance. The Deputy Executive Directors shall be appointed by the DA Secretary. The qualifications shall be based on the existing Civil Service Rules and Regulations.

SECTION 7. Functions and Powers of the PRRI Executive Director. - The following are the functions and powers of the PRRI Executive Director:

a.
Recommend the creation of divisions and sections including the staffing pattern of the PRRI;
b.
Recommend to the Agriculture Secretary the appointments of personnel and consultants;
c.
Oversee the planning, implementation and evaluation of the policies, programs, and projects of the PRRI;
d.
Consolidate and approve the overall budget of the PRRI;
e.
Perform such other functions as may be assigned by the PRRI Advisory Board.

SECTION 8. Appointments of Division Chiefs, Section Heads of the PRRI - Division Chiefs, Unit Heads, Coordinators, Project Leaders and other positions in the PRRI shall be recommended by the Executive Director, and appointed by the Secretary of the DA. Appointments to various positions in the PRRI are subject to corresponding qualification standards established by the PRRI and to rules and regulations set by the Civil Service Commission.

Rule 8.1. The creation of organizational units and staffing pattern, appointment of other officers and staff, as well as the consolidation and approval of agency budget shall consider existing policies, rules and regulations, in consultation with appropriate agencies.

SECTION 9. Composition of the PRRI Advisory Board - There is hereby created an Advisory Board, which is mandated to develop policies and programs aimed at improving the state of technologies needed for the Philippine rubber industry in order to meet global standards for competitiveness and product quality.

The Advisory Board shall be composed of the following:

a.
Secretary of the DA or his representative, as Chairman
b.
Undersecretary of the DA, as Vice Chairman
c.
Executive Director of the Bureau of Agricultural Research
d.
Executive Director of the Bureau of Plant Industry
e.
Executive Director of the PRRI
f.
One (1) representative from the rubber producers, and One (1) representative from rubber processors, as members, to be appointed by the President of the Philippines, upon recommendation of the DA, for a term of three (3) years.

SECTION 10. Functions and Powers of the PRRI Advisory Board. - The Advisory Board shall perform the following functions and powers:

a.
Formulate policies and initiate programs for the development of the Philippine rubber industry;
b.
Review and recommend the annual budget of the PRRI;
c.
Evaluate the implementation, efficiency and effectiveness of the programs and projects of the PRRI; and
d.
Recommend the establishment or abolition of satellite units or branches as maybe deemed necessary.

SECTION 11. Coordination among Stakeholders of the PRRI and Linkages with other Research Institutions. - The PRRI shall monitor and evaluate the rubber research programs and identify the immediate needs and essential concerns in the rubber industry in consonance with the local and national economic development goals. It shall likewise coordinate with other government agencies in order to formulate strategies that would jump-start the growth of the rubber industry.

The PRRI and the local government units where there are suitable areas for the planting of rubber trees shall jointly implement projects and programs necessary to achieve the goals of this Act.

Rule 11.1. The PRRI in coordination with other research agencies shall implement the existing National Rubber Research, Development and Extension Program (NRRDEP). Upon the approval of the IRR, the subsequent formulation of similar programs shall be the responsibility of the PRRI in coordination with other research agencies.

Rule 11.2. The Institute shall establish and support linkages with various government and private agencies, organizations, associations, institutions that directly or indirectly influence the development of the rubber industry, from the local, regional, national and international scenes, especially the identification of industry champions, consistent with the public-private partnership approach in developmental efforts of government.

Rule 11.3. The Institute may, for the purpose of its research and development activities, obtain and secure the services of consultants, scholars, scientists and technical personnel of state universities and colleges (SUCs), and other research institutions. Such personnel may be paid incentives and honorarium following existing COA Rules and Regulations.

SECTION 12. Allocation of Funds. - Not more than forty percent (40%) of funds allocated under this Act and in subsequent annual appropriations shall be used for personnel services, and maintenance and operating expenses; thirty-five percent (35%) for research and development, as well as training, and information; and twenty five percent (25%) for seedling propagation and dispersal of rubber trees.

Rule 12.1. Allocation of funds shall be subjected to Annual Review by the Advisory Board for proper utilization of funds.

SECTION 13. Annual Report. - The PRRI shall submit an annual report to the Office of the President, the Senate and the House of Representatives indicating among others, the administration and institutional development of the PRRl, and the progress of programs and projects on the rubber industry and its stakeholders.

Rule 13.1. Prior to the submission of annual reports to the Office of the President, the Senate and the House of Representatives, it must be reviewed and endorsed by the Advisory Board.

SECTION 14. Appropriations. - The amount necessary to carry out the provisions of this Act shall be included in the General Appropriations Act of the year following its enactment into law and thereafter.

Rule 14.1. Initial funding of Php 100 million, equivalent to less than 1 % of the Gross Value Added for rubber shall be allocated for Year 1, and yearly thereof subject to approved work and financial plan.

SECTION 15. Separability Clause. - If any part, section, or provision of this Act shall be held invalid or unconstitutional, the rest of the provisions shall not be affected thereby.

SECTION 16. Repealing Clause. All laws, executive orders, rules and regulations, or parts thereof which are inconsistent with this Act are hereby repealed or modified accordingly.

SECTION 17. Effectivity Clause. - These IRR shall take effect fifteen (15) days after its publication in a newspaper of general circulation and its filing with Administrative Register, UP Law Center.


Approved:

(SGD.) PROCESO J. ALCALA
Secretary