National Coffee Bill 2018

46
BIt-t.s SUPPLEYE}-T \o. I I 23rd r..ovember,20tE BILLS SUPPLEMET.-T toThe L,,gonda Ga:ette ito.59. lblwre C,\'l dated 23rd lt'otentber 2Al8 Printcd by UPPC. Entebbe, b)'Order ofthe Covernment. Bill No.20 The National Coffee Bill THE NATIONAL COFFEE BILL, 20I8 MEMORANDUM 2078 1. POLICYAND.PRINCIPLES The object of this Bill is to reform the law to provide for the Uganda Coffee Development Authority to regulate, promote and oversee the coffee sub-sector; and to regulate all on-farm and off-farm activities in the coffee value chain. The Bill seeks to repeal and replace the Uganda Coffee Development Authority Ac1, Cap. 325, which was enacted in l99l and only covered off-farm activities of marketing and processing, leaving on-farm activities like planting materials, nurseries, harvesting and posr harvesring handling outside the scope of the law. In addition, since the enactment ofthe Uganda Coffee Development Authority Act' Cap' 325 twenty years ago, new developments. advances and challenges in coffee research, extension' farmer organisations and climate change have emerged that need to bc addressed by the larv. lt is therefore irnperativelo reform the law as it does not meel the current needs and Iong-term goals of Governrhent. 2. DEFECTS INTHE EXISTING LAW There is need to regulate the entire coffee value chain as is donc in other jurisdictions most especially to include the on-farm activities alongiide the off-farm ones. especially in regard to generation of planiing materials. harvesting and drying of coffee to improve on the quality of coffee that goes to both the local and internalional market'

Transcript of National Coffee Bill 2018

Page 1: National Coffee Bill 2018

BIt-t.sSUPPLEYE}-T \o. I I 23rd r..ovember,20tE

BILLS SUPPLEMET.-T

toThe L,,gonda Ga:ette ito.59. lblwre C,\'l dated 23rd lt'otentber 2Al8

Printcd by UPPC. Entebbe, b)'Order ofthe Covernment.

Bill No.20 The National Coffee Bill

THE NATIONAL COFFEE BILL, 20I8

MEMORANDUM

2078

1. POLICYAND.PRINCIPLESThe object of this Bill is to reform the law to provide for the Uganda

Coffee Development Authority to regulate, promote and oversee the

coffee sub-sector; and to regulate all on-farm and off-farm activities in

the coffee value chain.

The Bill seeks to repeal and replace the Uganda Coffee Development

Authority Ac1, Cap. 325, which was enacted in l99l and only covered

off-farm activities of marketing and processing, leaving on-farm

activities like planting materials, nurseries, harvesting and posr

harvesring handling outside the scope of the law. In addition, since

the enactment ofthe Uganda Coffee Development Authority Act' Cap'

325 twenty years ago, new developments. advances and challenges in

coffee research, extension' farmer organisations and climate change

have emerged that need to bc addressed by the larv. lt is therefore

irnperativelo reform the law as it does not meel the current needs and

Iong-term goals of Governrhent.

2. DEFECTS INTHE EXISTING LAWThere is need to regulate the entire coffee value chain as is donc in

other jurisdictions most especially to include the on-farm activities

alongiide the off-farm ones. especially in regard to generation of

planiing materials. harvesting and drying of coffee to improve on the

quality of coffee that goes to both the local and internalional market'

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Bill No.20 The Narional Coffee Bill 2018

This is not adequately addressed in the current law. The current U-sanda

Coffee Development Authority Act, Cap. 325 provides mainly for the

marketing of coffee but does not address the regulation of on-farm

activities which has an effect on the quality and price of coffee.

The current legal framework does not adequately provide a strong

institutional arrangement with clearly demarcated roles for the

institutions involved. The interventions into the sub-sector by the

various stakeholder institutions are no1 holistic. As a result, the sub-

sector is not appropriately run and cannot perform to its maximuln or

expected capacity. Issucs reiating to the generation ofplanting materials,

harvesting and drying of coffee are not covered under the current law.

Additionally, under the existing Uganda Coffee Development AuthorityAct, Cap.325 coffee extension services are not provided for.

Funher, in the current law, the Uganda Coffee Development Authority's

roles are also limited and don't encompass the entire value chain.

Ideally Uganda Coffee Developtnent Authority should be regulating

both on- farm and off - farm activities including nursery management,

pest and disease control in the sector, rehabilitation, harvesting, drying

and grading which is not the case in the way the current legislations is

framed.

There is also need to amend the Act to allow for Uganda Coffee

Development Authority 10 lead the implementation of coffee specific

extension services as well by coordinating the efforts of differentagencies and fanner associations.

The Uganda Coffee Development Authority Act. Cap. 325 and the

Coffee Regulations. 1994 have a number of redundant clauses that

have been ovenaken by time including the selting of minimum prices

which is not sustainable in a liberal economy since Uganda Coffee

Development Authority only publishes indicative prices and also a

provision mandating the Aulhority to put in place a price comminee

The fees and penalrres in the Act are also rveak and therefore need

enhancement to make Ihem more meaningful and deterrent to match

the objectives of the re-gularorv framervork.

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Bill No.20

3. REMEDIESDEFECTS.

The object of this Bill is thereforc to address the gaps that have been

identified in the current law by reforming the law to specificallyprovide for the regulation of the entire value chain in the coffee sub-

sector from planting, through harvesting, up to marketing; providing

for thc Uganda Coffee Development Authority to regulate, promote

and oversee the coffee subsector; providing for the Authority to

regulate all on-farm and off - farm activities in the coffee value chain;

to provide for a coffee auction system and to create and enhance the

penalties.

The Bill further seeks to define the roles of different sukeholders in

the coffee value chain, including the role of the Minister responsible

for the ioffee subsector.

The proposed reforms will provide for-

(a) a more comprehensive regulation of the whole coffee value

chain including on-farm activities and processes alongside

the off-farm ones especially in regard to generation ofplanting materials, harvesting and drying of coffee;

(b) a marketirrg system by requiring UCDA to establish a

voluntary coffee auction system to offer an alternative

method of selling coffee. The system should bring

dynamism and efficiency in the subsector resulting fromincreased competition in the selling of coffeei

(c) coffee specific extension services by making UCDAresponsible for coffee extension services in order toremove ambiguity and create responsibility on the

UCDA ro provide extension services beyond agronomicpraclices:

The Narional Coffee Bill

PROPOSED TO DEAL

2018

WITH THE

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Bill \o.20(d)

The Narional Coffee Bill 2018

Uganda Coffee Development Authority to register and

promote coffee value chain organisations at various levelsofthe coffee value chain, that will ]ead to the formation ofan apex body;

(e) a strong institutional arrangement with clearly demarcated

roles for the institutions involved;

(0 enhancement of fees and penalties to make them more

meaningful and deterrent 10 the objectives ofthe regulatoryframelvork and encourage compliance;

(-e) repeal of redundant clauses that have been overtaken by

trme.

HO\, VI\CENT BAMULANGAKI SEMPIJJA (MP)

Mirtister of Agricullure, Anintal, Irtdustry and Fisheries.

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Bill No.20

Clause

10.

ll.12.

13.

14.

15.

16.

17.

18.

19.

70.?t.

Tlte Nariotnl CoJfee Bill

TI{E NAf IONAL COFFEE B ILL, 20 I8

ARRANGEMENT OF CLAUSES

PARr I - PRELr-vrNARY.

2018

l. Interpretation.

2. Purpose of the Acr

3. Uganda Coffee Development Authority

4. Objectives of the Authority.

5. Functions of the Authority,

6. Porvers of the Authority.

7. Appointment of coffee inspectors.

8. Qualification of coffee inspector.

9. Porvers of coffee inspector.

Penr ll- Ucnsoa Correr Devslopvrxr Alruol:rv.

Appointment of regional coffee extension officer.

Qualification of regional coffee extension officer.

Functions of regional coffee extension officer.

Cooperation rvith othe:- agencies,

Board of the Authority.

Disqualifi cation from appointment.

Tenure of office of members of the Board.

Filling of lacancies of the Board.

Functions of the Board.

Remuneration of membe:'s of the Board.

Meetings of rhe Board.

Committees of the Board.

ENT LIBRARY7178. KAMPALA 4

* 3C APR 20il *

PARLIAMPOBOX

CALL NO

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Bill No.20

Clause

The National Coffee Bill 2018

22.

23.

24.

25.

16.

39.40.

)A

27.

28.29.30.

31.

32.

1J.

)+.

35.

36.

3'7.

Prnr I II- Srerr oFrHE AurHoRIrY

Managing Director.

Functions of the Managing Director.

Secretary to the Board.

Other staff of the AuthoritY.

Panr lV - RecrsrRATro-\.. A\D LrcENCl\c or CorreeVeLue CH,cts Acrons.

Registration of coffee farmer.

National register of coffee farmers.

De-registration of coffee farmer.

Application to operate a coffee nursery bed.

Registration of coffee nursely operators.

Registration of coffee famer organisations and coop€ratives.

Registration of coffee value chain actors.

Registration of processin g factory.

National register of other coffee value chain actors

Porver to issue licences-

Power to cancel, r,ary and suspend licences,

Aggrieved parry to appeal to Minister.

P.cnr V -TvpEs, VARIErIES Al.'D Cpeotsc or Corrge .

Types and varieties of coffee.

homotion of recommended types and varjeties of coffee.

Grading and certification of coffee.

Panr VI - Vrlur ADDITIo\ AND DovrsrlcCo-r-sullvrtos or CorrEr.

2

,11. homotion of value addition

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Bill No. 20 l'he Natiortal Coffee Bill

42. Domestic consumption of coffee.

ClauseP,q,nr VII - Ftserces.

+J-

44.

45.

46.

48.

49.

50.

2018

51.

52.

53.

54.

55.

56.

57.

Funds of the Authority.

kvy on coffee exports.

Authority to operate on sound financial principlcs

Power to open and opemte bank accounts-

Borrorving powers.

Estimates of income and expenditure.

Accounts.

Audit.

. P,rnr IX- MrscELLA.\-Eous.

Coffee research.

Coffee auction system.

Protection from Iiability.

Offences and penalties.

Memorandum of understanding to rvarehouse coffee

Offence by body corporate.

Regulations.

Penr X - RepEAr, Sevtscs a:o TBessrrro^-

Vesting of assets and liabilities,

Continuation of employment of employees of the Uganda Coffee

Development Authority.

58.

59.

SCHEDULES

SCHEDULE I - Cunency Point

SCHEDULE 2 - \,leetings of the Board

J

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Bill No.20 The Narional Colfee Bill 2018

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Acc No..""""""":""""'3c APR ?oil *t

RARYPALA

NT LlB1?8. KAMPARL

POIAMEBox 7

CALL NO-.

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Bill No.20 The !\'atiornl Coflee l)lll 2018

A Bill for an Act

ENTIl'LED

THE NATIONAL COFFEE ACT,2018

An Act to repcal and replace thc Uganda Coffce DevelopmcntAuthority Act, Cap. 325; to continue in cxistence the UgandaCoffee Development Authority; to provide for the Uganda CoffceDevelopment Authoritl' to regulate, promote and oversee thecoffee subsector; to provide for the Authorit5' to rcgulatc all on-farm and off-farm activities in the coffee value chain; to providefor a coffee auction system; and for othcr relatcd matters.

BE IT E\ACTED by ParJiament as follows

Plnr I-Pnn.lvrrlnv-

1. Interpretation.In this Act. unless the conlext olhclwisc requires-

"Authority" means the L.ganda Coffce l)evelopmenr Autholityconlinued in existence und('r section 3:

;

PARLIAMENT LIBRARYP O BOX 7178- XAMPALA ;:A

3 [ APR 20i] **

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Bill No.20 The it'arional Coffee Bill 2018

"bare ground" means open soil surface;

"Board" mcans thc Board of the Authority established by scction

14l,

"cess" means a levy on export of coffee on Frec on Rail or Free

on Truck or any othel'form of acceptable contract pricc;

"coffee farmer" means a persott who grows coffee for commercial

purposes;

"coffee inspector" means any officcr of the Authority or other

person authoriscd in writing by the Authority lo carry out

any inspection under this Act:

"coffee subsector" means a division or part of thc a-gricultural

sector relating to the coffee value chain;

"coffee value chain" means the activities or processes relating to

coffee and includes:'esearch, planting and growin-e coffee'harvesting. drying. storage. soning. grading. handling,

processing, roasting. brcwing. marketin-1. expo11 and

consumption of coffee;

"currency point" has the Yalue assi-sned to it in Schedule I tothis Act:

"\,{inister" means the \4inister responsible for the coffee

subsector:

"Minisu'y' means thc trinistry responsible for the coffee

subseclor:

"off-falm" means any activily or process relating to coffec thaljs canicd out oulsjde a coffee fann and includes sorting,

drying. storing, proccssing. grading, transponing. marketing,

expofiing. roastins. brervin-e and consumption of coffee;

"on-farm' mear'rs an! activil) or process rclating to coffec that

is carried out on a coffee farm and includes planting'

soil or u'ater manegemenl. pest and disease control and

harvesting:6

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Bill No.20 The Narional Coffee Bill 20f8

"outturn test" means a test conducted to determine the qualityand value of coffee obrained from a given quantity ofprocessed coffee: and

"regional coffee extension officer" means any officer of theAuthority or other person authorised in writing by theAuthority to carry out functions of the Authority includingproviding extension services and any other function of theAuthority under this Act.

2. Purpose of the Act.The purpose ofthis Act is-

(a) to facilitate the development of a competitive, participatoryand sustainable coffee subsector in accordance with theNational Coffee Policy, 20 1 3 ;

(b) to provide for the Uganda Coffee Development Authorityto reguJatc, promole and oversee the coffee subsector; and

(c) to regulatc all on-farm and off-farm aclivities in the coffeevalue chain.

Prnr II - Uce.rn,r Corrrr DEvrroprrEsr Attuonrn'

3. Uganda Coffee Development Authority.(l) The Uganda Coffec Dcvelopment Authority existing

immediately bcfore the commencement of this Act, shall continue toexisr subject to the provisions of this Act.

(2) The Author-ity shall be a body corporale rvith perpetualsuccession and a scal and may. for the discharge of its functions underthis Act-

(a) acquire. hold and dispose of moveable and irnmovablcpropeny:

(b) sue and be sued in irs corporate nante: and

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Bill \o.20 |-he Narionttl Co-ffee Bill 20f8

(c) do all acrs and thitl,ss as a bodl"corporate may larvlully do'

(3) Thc scal of the Autholity sl.rall be deternlined by the Board

and shall bc kcpt in the custody of the Managing Dilcctot'.

(4) The scal shal[, when affi xcd to any documeltl, be authenticaled

by thc signatures of the Chairpcrson and the Managing Director'

(5) In rhe abscncc olrhe Chairperson or when the Chailperson is

unable to perfonr this function, a member of the Board appointed by

thc Board for that purpose shall sign in rhe placc of the Chairperson'

(6) A person pedorming the functions of Managing Director

shall sign in the absence of t)re Managitlg Director.

(7) A contract or iDstlulnent which if entered into or executed

by a person not being a body corporare rvould not be required to be

undei seal may bc entered into or executcd rvithout seal on behalf ofthe Authoriry by the Managing Direclor or any other person authorised

by the Board.

(8) Evcry documenl purponing Io be -(a) an instrumenl issucd by rhe Authority and sealed rvith

rhe seal of rhc Authority and authenticaled in the rnanner

prescribcd in subsections (4). (5) and (6): or

(b) a conlract or inslrumcllt enlcred i))to or cxeculed under

subscction (7). shall bc reccived in evidcnce as such an

insl:'umcttt rvirhout I'u:1hct proof unless the conlrar) is

proved.

.1. Objectiles of the Authorit].The objectives of thc Authoritl" arc -

(a) to promolc Sood practices in ail activiries in the coffce

valuc chain:

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(b)

5. Functions of the Authoritl,.The functions of the A uthorit), a:'c -

The Nariorlml Coffee Bill 2018

to rc_qulate on-farm a:rd ofl-farrl activitjcs in the coffeevalue chain:

(c) to promotc rcsearcl.r in proccsscs and producls relalcd tocoffee:

(d) to promote valuc addition to coffee including prirraryprocessing and cstablishing a solublc coffce plant:

(c) to promote access to easy and chcap crcdit for colfee valuechain actors:

(0 to promole and rnonilor trc rnarketing of coffee in ordcrto optimise fo:'ei_en exchange earnings and paymenrs lofarmers:

(g) to control the qualirl, of coffee at all stages of rhe valuechain in order to cnsurc that all coffee exported meels thcstandards prescribed by the Authority;

(h) to monitor the international price of coffee in ordcr todisseminate indicative priccs at which coffee may betraded;

(i) to conduct market rescarch for the development of thecoffee subseclor:

U) to prcmore industries rclatcd to coffee:(k) ro develop and promote coffce specific exlension services;

(l) to liaise with kcy srakcholde:-s to organise farmcrs in thecolfee subsector:

(rn) to promotc the production and marketing offinal productsof coffee: and

(n) to promotc domcstic consumption ofcoffec.

(a) to regulatc all activities u,irhin rhe corfL-e value chain orsubsector. on famr and otTlamr coi'lee actir,itres. colfee

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Bill No. 20 The Narional Cot'fee Bill 2018

roasling and brewittg. sales and marketing and the quaiity

of coffce and coflec by-products. including activiries ofrelated industries in accordance with this Abt;

to promote, slrengrhen and register coffee farnters ' farmers

groups, associations or cooperatives, processors, roasters,

brewers, traders, middlemen. persons or bodies involvedin the coffee value chain:

to register all coffee sales and assess cess;

to promote the formation and development of value chain

organisations at the various levels of the coffee value

chain;

to promote and suppon research into the coffee industry or

processes along the coffee value chain and determine and

prescribe through research, the types and varieties of coffee

to be cultivated in Uganda, and their management systems;

to promote and support joint ventures, investments and

concessions in the coffee value chain;

to prescribe the quality control standards for the sale and

nrarketing of coffee, issue indicative prices at whichcoffee may be traded and protect coffee farmers fromexploitarion and unfair rrade practices:

to grade and certify grades and quantities of coffee along

the value chain I

to license coffee nursery operators, traders, processors.

exporters, management agents, warehouse operators,

auctioneers, pulping stations, packers and roasters in

accordance with regulations issued by the Minister:

to coordinate the provision of coffee specific extension

services in consultation with the Ministry:

to advise Government on all coffee subsector policies and

reconcile them Io lhe national macroeconomic policies:

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(b)

(c)

(d)

(e)

(r)

(g)

(h)

(i)

0)

(k)

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Bill No. 20

(l)

(m)

(n)

(o)

The National Coffee Bill 2018

to liaise with the International Coffee Organisation to

promote l-iganda's coffee on the world market and be

responsible for the administration of the stamp of the

lntcrnalional Coffee Organisation I

to organisc capacity building initiatives and training forcoffee farmers, farmers associations, roasters, brewers,

technicians, coffee processors and quality controllers;

to collect, collate and analyse data, maintain a database on

coffee, and to document and monitor the coffee subsector

performance; and

to perform any olher function as may be directed by the

Minister.

6. Powers of the Authority.The Authority may, in the exercise of its functions, arbitrate disputes

between coffee farmers, coffee exporters, coffee processors, coffee

roasters and coffee buyers.

7. Appointment of coffee inspectors.( I ) The Authority may, by Notice in the Gazette, appoint fit and

proper persons to be coffee inspectors for the purposes of ensuring

compliance with this Act and the directives of the Authority.

(2) A person designated under subsection (l) shatl be r cffeeinspector for five years or such period as the Authority may determine.

8. Qualifications of coffee inspector.A person shall qualify to be a coffee inspector if he or she possesses a

minimum of a diploma in sciences and has extensive knowledge and

experience in coffee related matters.

9. Powers of coffee inspector.(l) A coffee inspector may, at any reasonable hour, enter any

place where coffee is grown, pulped, processed, packed, roasted,

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stoled, warchouscd or sold to inspcct and cxarninc it for thc purposc

of cnsuring that thc provisions oI this Act or Rcgulations madc undcrthis Act arc corrpJicd with.

(2) A colfcc inspcctor may, for purposes of sccuring cornplianccwith the provisions of this Act, take samplcs of coffee, found in astorc, plant, olhcr placc or prcmiscs including any land, and subjectthc samples to such tests as he or shc may dccnr ueccssary.

(3) A coffcc inspcctor shall. whcn cxcrcising powcrs under thisAct, producc the instrurncrlt of appointmenl and identification as acoffcc inspcctor whcn required to do so by any pcrson.

10. Appointmcnt of rcgional coffec extension officer.(l) 1'he Authority rnay, by Noticc in tlie Gazette, appoint fit

and propcr pcrsons to bc lcgional cof{cc cxlension officers for thcpurposes oI cnsuring cornpliancc with this Ac1 and the directives ofthc Authority.

(2) A pcrson dcsignatcd utrder subscction ( I ) shall be a regionalcoffec cxtcnsion officcr lor five years or such pcriod as the Authority:nay dctcrminc.

11. Qualifications of rcgional coffcc cxtension oflicer.A pcrson shall qualify to bc a rcgional coffce cxlcnsion officer iI hc

or s[c;(a) posscsscs a rniuirnum of a llachclor of scicnce in Agriculturc,

agribusincss managcrncnt o:- agriculturc cxtcnsion or a

:'elatcd ficld frorn a recognizcd univcrsity; and

(b) has atlcast fivc ycars working cxpcricncc in an cxtcnsion-rclated discip)inc.

12. Functions of rcgional cofl'cc cxtension officcr.A rcgiona) coffcc cxlcnsiorr officcr shall carry out thc followingJ'unctions - t2

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(a)

(b)

(c)

(d)

The National CoJfee Bill Z0l8implcmcnt and supcrvisc coffce nurscry developmcntprograms;

overscc compliancc with distribution procedures ofplanting materials, and established standard operatingguidclines;

implement coffee cxtension programs developed by theAuthority;

promote and disscminalc new technologies developed bycoffcc rcsearch to farmcrs;

maintain surveillancc on coffce diseases and pests;

advisc farmers on control of coffee disease and pestmeasures;

liase with and ensure effective collaboration with Iocalauthorities and other bodies with an interest in matters ofcoffee development in the respective regions;

participate in developmcnt of work plans and budgets forthe region;

provide technical support in the collection of coffeeproduction and marketing data;

monitor the quality of coffcc at rhe farm and cnforce coffeeregulalions;

compile monthly reports on coffee activities in the region;and

carry out other functions as the Authority may from timeto time assign.

(e)

(1)

G)

(h)

(i)

0)

(k)

(r)

13. Cooperation with other agencies.(1) 'l'he Authority shall coopcratc with other minrstries.

departments, agencics of Government, and with olher organisations inthc lmplcmcnrarion of this Acr.

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Bill No. 20 The National Co{fee Bill 2018

(2) The Ministry shall, in consultation with the Authority and

the bof,y ,"rponribt" io, provision of agricultural extension services'

.ooiainrr" ihe provision of coffee specific extensio.n services'

;;t;;;J and recommended coffee varieties and technical support

to farmers.

(3) For the purpose of subsection (1) all ministries' departments'

ug"n.i", oi ior.rn*"r, and other organisations shall accord to the

Authority such assistance as may be necessary to ensure the proper

discharge of the functions of the Authority'

14. Board of the AuthoritY'< rJif,e nutf,otlty shatl iave a Board of Directors' which shall be

the governing body of the Authority'

(2) The Board shall consist of-(a) a chairPerson;

(b) a representative of the Ministry responsible for trade and

cooperatir"s, at the rank of Commissioner and above;

(c) a representative of the Ministry responsible for finance at

the rank of Commissioner and above;

(d) a representative ofthe Ministry responsible for agriculture

at the rank of Commissioner and above;

(e) a representative of the Ministry responsible for local

gouernment at the rank of Commissioner and above"

(O a representative of the National Agricultural Research

(h)

(i)

(j)

(k)

Organisation;

two representatives of coffee farmers;

one representative of coffee roasters and brewers;

one representative of coffee processorsl

one representative of coffee exporters; and

the Managing Director, cx officio'

t4

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Bill No. 20 The Nationat Coffee Bill 201g(3) At least onc rhird of thc members of rhe Board shall be

women -

(4) The Minister shall, in appointing the members of the Board,under subsection 2, invite nominations from the respective institutionor organization from whom the appointments shall be made.

15. Disqualificationfrom appointment.A person shall not be appointed to the Board who-

(a) has been convicted of an offence involving dishonesty orfraud by a competent court in Uganda or elsewhere;

(b) has been declared insolvent under any law in force inUganda and has not been discharged;

(c) has been convicted of an offence and sentenced toimprisonment for six months or more without the optionof a fine by a competent coun in Uganda or elsewhere; or

(d) is a member of Parliament, a minister or a member of alocal government council.

16. Tenure of office of members of the Board.(l) A member of the Board other than the Managing Director

shall hold office for three years and is eligible for re-appointment forone more term.

(2) The Chairperson and members of the Board shall hold officeon terms and conditions specified in their instruments of appointment.

(3) A member of the Board may, ar any time, resign from officeby giving written notice of not less than one month to the Minister.

(4) The Minister nay, at any time remove a member of rheBoard -

(a) for inability to perform the funclions of his or her office arisingfrom infirmity of body or mind;

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(b)

(c)

(d)

(e)

(0(e)

(h)

(i)

T-he National Coffee Bill

for misbchaviour or misconducu

20t8

for incompetcnce;

for failure to disclose, at a Board meeting, a mattcr in

which he or shc has a personal intcrest;

for absence without prior notice to thc Chairperson of the-

Board, or without reasonable cause 10 the satisfaction of

ih. vinirt"t, for morc than four consecutive scheduled

mcetings of the Board, or absgnce from Uganda for rtorc

than twelve months;

for having been declarcd insolvent;

on the written recommcndation of the body represented by

that membcr stating reasons for disqualification;

for conviction for a criminal offence, in Uganda or

elsewhere, in respect of which the maximum penalty

exceeds six month; imprisonment without the option of a

fine; or

where information rclating to the conduct of a member'

which could have precluded his or her appointment if ithad been made availablc to thc Minister, is brought to thc

attention of thc Minister.

17 . Fitling of vacancies of the Board'

it ) wi.t. a membcr of thc Board resigns' dies' is removed from

office or is for any other rcason unable 10 act as a member ofthe lloard

ir'," Crruitp""on shatl notify the Minister of the vacancy within one

month after the occurrence of the vacancy.

(2) Thc Ministcr shall, aftcr being notified of thc vacancy undcr

.uUr""iion (1), appoint anothqr pcrson to hold officc in accordance

with section 14.

(3) Where the mcmbcr of thc lloard refcrred to in subsection ( I )

is thc ihairpcrson of the lloard, the Managing Director shall notify the

16

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a

Ilill No.20 The National Coffee Bill 2018

Ministcr of the vacancy and the Vinister shall appoinr another pcrson

to scrvc as Chairpcrson.

18. Functions of the Board.The functions of the Board are -(a) to formulate and review the policy of the Authority;

(b) to set targcts for the annual performance of thcAuthority;(c) to appraise and evaluate the performance of thc

management of the Authority;(d) to delcrmine the organisational slruc(ure and staffing of

the Authority;(e) to oversec the management of the financcs and assets of

the Authority;(l) to appoint and discipline members of staff of the Aulhority;

and(g) to perform any other function assigned 1o it under this Act.

19. Remuneration of memlrers of the Board.Thc Chairpcrson and membcrs of the Iloard shall be paid such

remuneration as may be determincd by thc Minisrer.

20. Meetings of the Board.The mcetings of the Board and related matlers shall be conducted inaccordancc with Schcdule 2 to this Act.

21. Committees of thc Board.( I )

'l'hc lloard may appoint committccs-

(a) to inquirc into and advisc thc Iloard on any ma11cr

conccrning the functions of the Authority as thc Iloardmay rcfer to thc committcc;

(b) to excrcise such powcrs or perform such functions ofthc Authority as thc Iloard may dclegatc or rcfer 1o thccommittec.

t7

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Bill No. 20 The National Coffee Bill 2018

(2) A committee appointed undcr subsection ( I ) shall consist ofa chairpcrson and other pcrsons, whcther mcmbcrs of the Board or not,

as thc IJoard may determine.

(3) The Board may requirc a committee appointed under this

section to act jointly or in co-operation with any other committee'

(4) Subject to any direction given by the Board, a committee

appointed under this section may regulate its own procedure, but shall,

in any event, be guided by the procedure in Schedule 2 to this Act-

Penr III-SrerP oF rHE AurHoRlrY.

22. Managing Director.( I ) There shall be a managing director of the Authority who shall

be appointed by the Minister on the reqommendation of the Board, on

terms and conditions specified in the instrument of appointment

(2) The Managing Director shall be a person of high moral

character and proven integriry, with the relevant professional

qualifications, skills and experience in coffee related matters'

(3) The Managing Director shall hold office for five years and is

eligible for reappointment for one more term.

(4) l'he Managing Director shall cease to hold office where-

(a) he or she resigns;

(b) he or she is declarcd insolvcnt or has made an arrangement

with his or her creditors;

(.) he or she is convicted of a criminal offence, in Uganda

or elsewhere, in rcspect of which the maximum penalty

exceeds six months imprisonmenl without the option of a

fine:

i8tt

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a

-

Bill No.20

(d)

The National Coffee Bill 2018

(e)

he or she is removed from office by the Minister on therecommendation of the Board for inability to perform thefunctions oI his or her office arising from infirmity of bodyor mind; or

he or she is removed from office for misbehaviour,misconduct or incompetence.

23. Functions of the Managing Director.(l) The Managing Director is responsible for the day to day

operations and administration of the Authority.

(2) The Managing Director shall be the Chief Executive andAccounting Officer of the Authority.

(3) Subject to this Act and to the general supervision and controlof the Board, the Managing Director is responsible for-

(a) the implementation of the policies and programmes ofthe Authority and reporting on rhem to the Board;

(b) the proper management of the funds and property ofrhe Authoriry;

(c) the organisation and control of the sraff of theAuthority;

(d) co-operation with other ministries, departments,agcncies of Government and organisations to achievethe objectives of the Aurhority;

(e) developing an economic, efficient and cost effectiveinternal management structure;

(D developing and implementing the strategic plan,business plan and annual plan of the Authority toachieve its objecrives;

(g) ensuring that the policies of the Authority areimplemented and that the agreed objectives, targctsand service standards are met;

19

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Bill No.20

(h)

(i)

The National Coffee Bill 2018

providing advice as requircd on all matters within the

Authority's resPonsibilitY; and

performing any other duty necessary for the

implementation of this Act as may be assigned to him

or her by the Board.

(4) In the performance of his or her functions, the Managing

Director is answerable to the Board.

24. SecretarY to the Board.(l)There shall be a secrotary to the Iloard who shall be appointed

by thc Board on terms and conditions specified in the instrument of

appointment.

(2) The Secretary to the Board shall be responsible for -(a) arranging the business at meetings of the Board;

(b) taking thc minutes of the meetings of the Board;

(c) keeping thc tecords of the decisions and other policy

records of the Board;

(d) providing legal advice on all activities of the Authority; and

(e) pcrforming any orher function assigncd by the Managing

Dircctor.

(3) ln the pctfor:nancc of his or hcr functions, the Sccrelary is

answerablc to the Managing Dircctol"

25- Other staff of the AuthoritY'(1) The lSoard shall appoint olher staff of thc Authority as may

be necessury for the proper and efficicnt pet{ormance of thc functions

of the Authority.

(2) 1'he staff appointcd under subscction ( I ) shall hold office on

such terms and conditions determined by the lloa:-d and specified irl

thc instrumcnts of aPPointmcnt. ,O

t

t

Page 25: National Coffee Bill 2018

Bill No.20 The National Co,ffee Bill 2018

(3)'l'hc lloard shall rcgulate thc manncr of appoinlment, tcrms

and conditions of scrvice and thc disciplinc of thc staff appointcd

under this scction.

PARr lV - RECrsrRAno\ A\D I-lcr-sstxc oF CoFFEE

Valur CHetr.' Acrons

26. Registration of coffcc farmers.(l) 1'hc Authority shall register all coffcc farmers in thc coffee

subsector.

(2) A person sha)l bc registcred as a coffcc farmer on fulfilling the

following requircments-

(a) he or she shall eithcr be growing coffce at the time ofregistration or shall have proof of his or her intention to

commence growing coffec within a period of six months,

fiom the date of rcgistralion; and

(b) the Iand wherc the coffee is Srown or is to be grown shall

havc becn evaluated by thc Authority and deemed suitable

for growing coffcc.

27. National register of coffce farmcrs.( I ) 1'he Authority shall cstablish and maintain a national register

of coffee farmcLs.

(2) The rcgistc:-shall bc rnaintaincd as an clcctronic database or

in any othcr for:r dctermincd by thc Iloard.

(3) 'l'he registcr shall contain paniculars of cach coffcc farmerincluding-

(a) thc full name and address oI thc Iarmcr', and if thc farmcris a membcr of a coffce farmc:'s group or association, thc

namc and address of the group or association;21

Page 26: National Coffee Bill 2018

Bill No.20

(b)

(c)

(d)

(e)

(f)

(g)

(h)

Tlte National Coffee Bill 2018

wherc the person who owns the land is different from thecoffee farmer, the name and address of the owner of theland;

the name ofthe district or village in which the coffee farmis locatedi

the acreage of land on which the coffee is grown on thedate of its registration;

where the person being registered has not yet plantedcoffee, the acreage that is proposed to be planted withcoffee;

the variety and type of coffee grown;

the age and number of coffee trees; and

any other information which may be deemed necessary forthe purpose of registration.

(3) The Authority shall, on registering a coffee farmer issue thecoffee farmer a coffee farmer's registration number.

(4) The Authority shall not charge fees for registration of a coffeefarmer-

(5) The Authority shall use the information compiled in theregister to facilitate the provision of services 1o coffee farmersindividually or through farmers groups.

28. De-registration of coffee farmer.(l) The Authority may, after being satisfied thal a registered

coffee farmer has failed to comply with the terms and conditions ofregistration, strike off the rcgister the name of the coffee farmer.

(2) A coffee farmer aggrieved by the decision of thc Authority madeunder subsection (1), may appeal to the Minjstcr.

Z2

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Bill No. 20 The National Coffee Bill 20L8

29. Application to operate a coffee nursery'( I ) A person who wishcs to opcrate a coffee nursery shall apply

to the Authority in writing.

(2) TheAuthority shall assess thc soil type to determine the type

and variety of coffee to be planted by the coffee nursery operator.

(3) The Authority shall assess the coffee nursery after potting

and if satisfied issue the coffec nursery operator a certificate 10 operate

a coffee nursery.

30. Registration of coffee nurscry operator'(1) The Authority, shall register every coffee nursery and every

coffee nursery operator.

(2) The register shall contain the particulars of each coffee

nursery operator including-

(a) the full name and address of the coffee nursery operator;

(b) where the person who owns the land is different from the

coffee nursery operator, the name and address of the owner

of the land;

(c) the name of the district or village in which the coffee

nursery is located;

(d) the type and variety of coffee grown or to be grown in the

coffee nursery; and

(e) any other information which may be deemed necessary forthc purpose of regislration.

31. Registration of cotTee farmer organisations andcooperatives.(l) The Authority shall registcr coffee farmer organisalions

and cooperatives.

l5

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Bill No.20 l'he Natioru Coflee Bill 2018

(2) l'hc Authority shall kecp a rcgister for coffcc farmcrorganisations and coopcrati ves.

(3) Thc rcgistcr of coffce farmcr organisations and coopcralivcsshall contain the particulars of cach coffee farmcr organisation and

cooperalivc i nc Iuding -(a) thc full namc and address of the coffee organisatton or

coopcralive:

(b) the numbcr of rncmbcrs, their namcs and address;

(c) the typc and variety of colfce in the coffcc farm; and

(d) any othcr information which may be deemed necessary forthc purposc of registration.

(4) ThcAuthority shall, on regislration of the coffec organisalionor cooperative, jssue the coffec organisation or cooperative a

registralion number.

(5) Thc Authority shall promote the formation of an apex bodyto reprcscnt all coffec farmers' organisations and coopcratives.

32. Registration of coffce value chain actors.(1) 'l'he Authority shalJ promote, register and regulate thc

formation of coflcc valuc chain actors at thc various levels of thccoffec value chain throughout Uganda.

(2) 'l'he Authority shall promotc thc formatjon of apex bodics tor-cprescnt and advocate for the intcrests of each catcgory of thc coffecvalue chain.

33, Registration of processing factory.( J )

'l'hc Authority shall rcgistcr cvcry coffcc proccssing factory.

(2)'fhc register of colfcc proccssing factories shall contain thcpaniculars of evcry coffcc factory including-'

24

Page 29: National Coffee Bill 2018

(3) TheAuthority shall, on ascetlaining the parliculal's submitted

undcr subsection (2) issue a certificate of registration to the owner

;;;;;;ff." pro.Lsing factory on pavmcnt of the registration fees

prescribed bY the AuthoritY'

(4) The cerrificate issued under this scction is not transferrable

,na ,t utt be renewed annually on payment of a fee prescribed by the

AuthoritY.

34, National register of other coffee value chain actors'

ii" ertrr"ti,v shail kecp and maintain the following registers-

Bill No.20

(a)

(b)

(c)

(d)

(e)

(f)

(a)

(b)

(c)

(d)

(e)

(f)

({)

'l'he Narional Colfee BitL 2018

thc namc and addrcss of thc factory;

thc namc and address oI cach dircctor or partuer and the

sharcs hcld bY cach shareholdcr:

thc proccssing capacity of thc factory;

rhe planncd production capacity of the factory;

the capacity, number and arca of the warehousc; and

the numbcr and quality of skillcd' serni-skilled and utl-

,t itt.d p.rronn.l employcd or to be employcd'

a register of PulPers;

a register of coffee buYers;

a register of coffcc gradcrs:

a rcgistcr of coffec exportcrs;

a register of coffcc store operators or warehousemctt;

a registcr of proccssors of coffee of any variety and gradc;

a registcr of exponers of cof{co of any variety and gradc;

a registcr of cerlificd coffec roasters' coffcc shop operators

and brewcrs; and

a registcr of coffcc hullers'25

Page 30: National Coffee Bill 2018

Bill No. 20 The National Coffee Biil ZOlg35. Power to issue licences.

. (1) The Authority shall on applicarion, issue the followingIicenscs upon such terms and condirions as the Authority thinks fit_

(a) a pulpery operator,s licence;

(b) a coffee buyer,s licence;

(c) a coffce grading Iicence for internal marketing;(d) a coffee processor,s licence;

(e) a coffee exportcr's Iicence;

(f) a coffee roaster's licence;

(g) a brewers and operator of a coffee shop operator,s licence;(h) a coffee store or warehouse operator,s licence; or(i) a coffee huller operator's Iiccnce.

(2) A licence issued under subsection (l) shall be_(a) in the form prescribed by Regulations;

(b) valid for a specified period;

(c) for a specific location; and

(d) issued subjecr to payment ofan application fee prescribedby thc Authority.

(3) A person shall nor a operare a pulpery, buy coffee, gradccoffec for internal marketing, roast coffce, brew and operate a coffeeshop or coffee store, operate a warehouse or coffee huller or processor export coffee on a commercial basis without a licence issued bv theAuthority.

_ (4) Where rhe Authorlty refuses to issue a licence to an applicanr,the applicant shall be informed in writing srating the reasons for therefusal.

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Bill No.20 The Narional Coffee Bill 2018

36. Power to cancel, vary, and suspcnd licences.The Authority may if the terms and conditions of the licence have notbeen complied with, cancel, vary or suspend a licence issued under

this Act.

37 , Aggrieved party to appeal to Minister.Any person aggrieved by the decision of the Authority under

subsection 35(4) may, within sixty days after being notified of the

decision, appeal to the Minister.

Panr V-Tvpss, Vanrrrres aNo Gnnorxc or Corrpp.

38. Tlpes and varieties of coffee.(l) The Authority shall determine and regulate the types and

varieties of coffee to be grown in the different parts of Uganda.

(2) In determining the type and variety of coffee to be grown ina particular part of Uganda, the Authority shall-

(a) be guided by the results of coffee research conductedby the National Coffee Research Institule on conditionssuitable for growing each recommended variety of coffee;and

(b) promote the use ofhigh yielding, disease resistant, droughttolerant and cup quality varielies of coffee.

39. Promotion of recommended types and varieties of coffce.(1) The Authority shall inform and sensitise coffee farmers on

the types and varicties of coffee recommended for cultivation in the

different pans of Uganda.

(2) For the purposes of this seclron, the Authority shall, incooperalion with the ministry responsible for agriculture and otherstakeholders develop a stralegy for promoting the cultivation ofrecommended coffee varieties in Uganda.

27

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Bill N0.20 The National Cot'fee llill 2018

(3) -l'hc prornotion 'stratcgy dcvclopcd by thc Authority undcrsubsection (2) shall includc -

(a) the use of coffcc cxtcnsion scrvices to train and build thccapacity of coffcc farmers to grow thc rccommcnded lypcsand varietics of coffeei

(b) information on how to access the recommended types and

varicties of coffec;

(c) good agricultural practices in respect of cach typc and

varicty of coffcc; and

(d) the means of controlling pests and diseases associatcd

with each type and variety of coffce.

40. Grading and ccrtification of coffee.(1) TheAuthority shall in collaboration with the body responsiblc

for standards develop coffee standards.

(2) Thc Authority shall glade and certify all coffee grown ormarketed in Uganda.

(3) For the purposcs oI this scction,lhc Authority shall take intoaccount intcrnational and rcgional coffee grading and certificationstandards issucd by the International Coffce Organisation or any olhcrintcrnational and rcgional coffcc statrdards organisation.

(4) 1-he Authority shall usc a uuivcrsal standard for outturn tests

Ior locally tradcd prc-exporl coffce.

Panr Vl-VeLUe Aontlor A\D I)oMEsrtcCorsr;vrrros or. Corrgr.

4l - Promotion of value addition.( 1)'l'hc Authority shall promotc and suppofl valuc addition at all

stagcs of the coffcc valuc chain.

28

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Bill No. 20 7'he National Crffie Bill 2018

(2) Irorthc purposcs of this sccrion. rhc Aurhority shall-(a) plomotc and support primar.y pr-occssing of coffcc at rhc

farm;(b) promolc and supporr bulking and rrarkcring of coffcc at

thc farnr or through farmers'associations;(c) facilitate incrcascd cxporl of valuc addcd coffee producrs;(d) promote and supporl roasting and packaging of coffce for

dorncstic consurnption:(c) build the capacity of coffcc brewcrs and coffee roastcr.s;(f) promotc and support coflce ccrrification schcmes;(g) prornotc and suppor! blanding of coffee produccd in

Uganda;

(h) promotc and support the establishmcnl of instant,granulated and soluble coffee plants; and

(i) facilitate access to alfordable finance ro stakeholders alongrhe coffec valuc chain.

42. Domestic consumption of coffcc,(l) 'lhc Authoriry shall promolc and support rhe domesric

consumption of coffec.

(2) Iror the purposc of this sccrion. thc Authority shall -(a) crcatc awarencss on the bcnclits of drinking coffee;

(b) conduct bchavior-al changc com,nultication alnong thepublic to encouragc the drinking of coffee; and

(c) build thc capacity of local coffee roasrcrs, coffcc baristasand colfec brewcrs.

l)enr VII-l--rrascls

43. Funds of the Authority.l-hc funds oI thc Aurhonty shall consisr of-

29

Page 34: National Coffee Bill 2018

Bill No. 20

(a)

(b)

(c)

(d)

(e)

Tlrc National CoJfee Bill 2018

money appropriatcd by Parliament for purposes of lhe

Authority;

fiIty perccnt of the cess levied on the Free on Rail or Frec on

Truck or olher form of acceptable conlract price of exports

of coffee under section 44;

monics received by the Authority for scrvices rendered by

the Authority under this Act;

loans and grants approved by the Minister responsible for

finance: and

gifls or donations from Government and other sources

made with the approval of the Minister and the Minister

responsible for fi nance.

30

44. Levy on coffee exPorts.The Authority shall levy a charge not exceeding two percenl on the

Free on Rail or Free on Truck or other form of acceptable contract

price of the export of coffee-

45. Authority to operate on sound financial principles'

In the performance of its funclions under this Act, the Authority shall

operate on sound financial principles.

46. Power to open and operate bank accounts'

The Board shall, with the authority of the Accountant General open

and maintain such bank accounts as are neccssary for the performance

of the functions of the AuthoritY

47, Borrowing Powers.Subject to Article- 159 of the Constitution, the Authority may with

prioi approval of thc Minister responsible for finance boruow money

ur rnry fr. required for meeting its obligations or for the discharge of

the functions of the Authority under this Act.

Page 35: National Coffee Bill 2018

Bill No.20 The National CoJfee Bill 2018

48. Estimatcs of incomc and cxpcnditure.( I ) 'fhc Authority shall, in accordancc with thc I)ublic l:inancc

Management Acl, 2015, prepare and submit to thc \4inis1er forapproval, a budgcl conlaining the estimates of incorne and cxpcnditurcof thc Authority for thc ncxl financial ycar.

(2) The Authority shalJ not incur any expenditure exceeding itsbudgct without the approval of the Minister.

49. Accounts.The Authority shall-

(a) keep proper books of accounts and all records relating tothe transactions and affairs of the Authorily;

(b) within three months after the cnd of each financial year,prepare annual financial statements for the precedingfinancial year; and

(c) within three months aflcr the cnd of cach financial year,submit the annual accounts to the Auditor General.

50. Audit.(l) The Auditor General or an auditor appointed by the Auditor

General shall, in each financial ycar, audit the accounts of thcAuthority.

(2) The Auditor General or an auditor appointed by the AuditorGeneral shall, within three months after :-eceipt of the accounts, subnritto the Minister and Parliament a reporl on the audited accounts of thcAuthority.

Penr IX - MtsceLlA\Eous.

51. Coffee research.(1) The Authority shall oversee the formulation of the National

Coffcc Research and Development Agenda to guide coffee research.

(2)'l'he National Coffee Research and Development Agendaformulated under subsection (l) shall be validated by thc industrystakcholders and approved by the Board.

3l

Page 36: National Coffee Bill 2018

Bill No.20 T-he Narional Coflee Bill 2018

(3) 1'hc \ational CofIcc Rcscalch lnstitute shall bc lcsponsib)e

for undcrtaking coffcc rescarch rclated to hcr mandatc and

corrpeteDce.

(4) The Autlro:'ity shall engage othcr rescarch sclviccs toundcrtake rescarch in alcas wherc thcy have comparative advantage

and compctcDcc.

52. Coffce auction s-vstem.(l) Thc Authority shall cstablish a coffee auction system.

(2) The colfcc auction systcm cstablished undcr subsection (1)

shall be uscd as an altcrnativc tnethod to thc day- to -day mcthod ofsclling coffee.

53. Protcction from liabilitY.A membcl of the Authority or member of staff of the Authority or

a person actjng on thc directions of the Authority shall not be held

personally liablc for any act or omission done or omittcd to bc done in

good faith in the excrcisc of functions undcr this Act.

54, Offences and penalties.( I ) Any pcrson who -(a) opcratcs an unrcgistcrcd coffec nurscry:

(b) sells or distributes subslandard seedlings or secds,

(c) harvests or is lound in possession of immaturc chcrries or

stlips a coffcc ttcc:

(d) ncglects a coffcc fatm;

(c) roasts or packages non-coffee matctial as cof{ce;

(f) poorly storcs wct chcn'ics or hcaps coffee lcading to mold

fornration:32

Page 37: National Coffee Bill 2018

Ilill No.20 Tlte National Coffee Rill 201t1

(S) sets up a storc or warehousc that docs not mcct thcrequircments for stoling coffee;

(h) bcing a processor, docs not have a husk chambcr ol.storc;(i) operates a hullcr without a liccncc or withoul an approved

struclure;

(j) dcals in coflec for internal markcting without a Iiccnce orin contraventjoll oI any of the provisions oI this Act;

commits an offence and is liable, on conviction, to a fiue notcxcecding forty eight curreDcy points or a term of imprisonmcntnot excccding two years or both.

(2) A pclson who-(a) operatcs a coffee plocessing factory without a Jicence;

(b) handles or processcs wet coffee wilh a moisture contcntabove fourteen percentl

(c) drics coffee on thc barc ground or around primary orsecondary factoly premises;

(d) proccsscs coffee without a vaId licence:(c) tampcrs, rcplaccsr rcrnoves ol is in possession ofa sccurity

seal of thc Authority without autho:-isation;

(f) rcplaces inspccted coffec with uninspccled coffee;(S) boils. contaminates or rough hulis coffcc:(h) adultcratcs coffce or is in possession of adultc:.atcd coIlcc;

includin g rnixing coffee of diffcr.cnt typcs or mixing colfcewith non,coffce matclials; or

(i) denics acccss to or blocks an inspcctor or stalf oI thcAutholity ol fails to rcndcr any rcasonable assislancc to aninspector,

commits an offencc and is liable, on convjclion. to a finc r.lo1

cxcceding onc hundred and lwenty cur.rcncy poinrs or a term o{imprisoument not excccdirl_n fivc year.s or both.

33

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Ilill No.20 Tlrc Narktnal Coffee Bitl 2011i

(3) A pclson who gradcs and exports coffce without a valid

liccncc comnrits an offencc and is liablc, on conviction' to a line not

cxceeding one hundred and fortyJ'our currency points or a term of

imprisonment not excecding five ycals or bolh '

(4) WheLc any court co).lvicts any person of an offence under this

Act or Regulations made under this Act, the Courl may, in addition

to uny p.nilty ir may imposc, otder that the colTce, vehicle, vessel or

othciaiticle used in thc cornmission of thc oflence be confiscated and

for{eitcd to the Government.

(5) Any coffee or arlicle forfcited undcr subsection (4) shall

vest in the Governmcnt fi-ec of any lnortgage, charge, Iien or othcr

cncumbrance oI anY kind.

(6)'i'he Authority shall confiscate and destroy-

(a) coffee found being spread to dry on the bare ground or

around primary or secondary factory premises;

(b) molded coffee; or

(c) wet coffee with a moisture content exceeding fourteen

percent being held or processed by anyone'

55. Memorandum of undcrstanding to warehouse coffee'

(l ) A company that intcnds to warehouse coffee for export shall

sign a memorandum of understanding with the Authority'

(2) Notwithstanding subsectiotr (1) a cornpany with a

Memorandutr.: of Understanding to warehouse coffee for export which

warehouses coffee not cleared for export by thc Authority or lampers

with coffee cleared by the n uthority for export shall have its licencc

cancelled and the coffec shalt bc confiscated forfeited to the State'

56. Offence s bY bod5'corporate.Whe:-e an offe nce under sectiott 54 is conrmitted by a body corporate-

34

Page 39: National Coffee Bill 2018

Bill No.20

(a)

The Natiorrul Cof.fee Bill 2018

every director and cmploycee of that body corporatc sha)l

also be takcn to havc commiltcd that offcncc: and

(b) where the body corporate is a firm, evcry partnel of thatfirm shall also be taken to have conrnritlcd that offcncc,

unless he or she proves that the offcncc was committed withouthis ol her knowledge or that he or she exercised due diligence toprevent the commission of thc offcncc.

57. Regulations.(l)Thc Ministermay,on the lecommcndatiorl of thc Iloard makc

regulations for better carrying into effect the provisions of this Act.

(2) Notwithstanding the generality of subsection ( I ) regulationsmade under this seclion may prescribe-

(a) the procedure for rcgistmtion of members in thc coffeevalue chain:

(b) the typc and varictics of coffee to be grown and in whichareas they are to be grown:

(c) the procedurc for sorting and gradrng coffee;

(d) the ag ron om ic practices fo r storing, handling, processins.b:-ewing, serving, scJIing, grading, packaging, rnarketingand exporting of coffcc;

(c) the proccdurc lor kecping of reco;-ds and thc furnishing ofreturns i:r respect of coffcc;

(f) the types and catcgolies ofcoffce value chain o:'ganisationsand the rcquircnrcnts for :-egistlalion of the coffce valucchain organisations at thc various lcvcls of the coffecvalue chain:

(g) thc proccdurc for ently by an authoriscd pcrson on anypremiscs uscd for growing or handling coffec for thepurposes of inspecting thc prcntiscs. equipment or coffecl

35

Page 40: National Coffee Bill 2018

Ilill No.20

(h)

(i)

(J)

(k)

(l)

(m)

(n)

(o)

(p)

(q)

7'he Nctional Coffee Bill 2018

the manner of appiication and the registratiotr form,ccrtificatc, liccncc ol othcr forrt rcquircd undcr this Act:

thc proccdurc fol importation of coffcc and coffce

products into Ugar)da;

thc procedure for inspcctiott of coffec;

the procedurc for testing of coffcc;

the rncthods of conducting outturn tests;

the rna;rncr in which starnps under thc lntclnational Coffee

Organisation rnay be administercd;

the manncr in rvhich traders and rniddlemen along the

coffee value chain maybe regulated in relatiorr to the

buying, transportation. storage and quality oI coffce;

the procedute for cnhancement of the capacity ofresear chers;

the uranner in which the quality and quantity incentiveschemc ol any other schcmc shall be operated;

the proccdure attd requiremcnts for coflee extension

services on good practiccs in planting material propagation,

planting, soil and watel' management, pcsl and disease

control , harvcsting, drying ol grading coffcc;

thc proccdurc for thc establishment of the coffcc auction

system:

thc standards for thc quality and grading of coffcc;

thc quality control standards fo:-thc salc and marketing ofcoflec;

application fccs to bc chargcd for rcgistralion and issuance

of licenccs;

form for issuancc oI a licencc:

lbr the pr-ocedutc for monjtoring of seed gardens and

nurscrv opcratjol) s.

36

(r)

(s)

(r)

(r)

(v)

(r")

Page 41: National Coffee Bill 2018

Bill No.20 Tlrc National Coffee Bill

Paxr X-Repeals, Savrrcs elo Tnexsrttor

2018

58, Vesting of assets and liabilities,(l)'t'he Uganda Coffee Devclopment Authorily Act, Cap.325. is

rcpealed.

(2) Any statutory instrument made under the Uganda CoffccDevelopment Authority Act, Cap. 325 repealed under subsection (l)and which is in force immediately before the commencemcnl of thisAct, shall remain in force, so far as it is not inconsistent with this Act,until it is revoked by a statutory instrumcnt madc under this Act and

until that revocation, shall be deemed to have been made under thisAct,

(3) Any registration, licence, certificate, permit or othcrdocument issued under the Uganda Coffee Development Act, Cap.153 repealed undcr subsection (l) and which is in force immediatelybefore the commencement of this Act-

(a) shall have effect from lhe commencement of this Act as ifit was granted under this Act;

(b) in the case of a registration, licence, cerlificate, permit orother document issued for a specified period, shall rgmainin force, subjecl to this Act, fol so much of that period as

falls after the commencement of this AcU

(4) On the commencement of this Act-(a) all property, assets, rights and inlerests of the Authority

shall continue to be the propeny, assets, rights and interestsof thc Authority;

(b) all obligations and Ijabilities subsisting against theAurhority undcr thc repealcd Act shall continue to subsistagainst the Authorily:

a-

Page 42: National Coffee Bill 2018

Bill No.20

(c)

The Narional Coflee Bill 2018

any money held by the Authority under the repealed Actshall continue to be held by the Authority;

all contracts, agreements and undertakings by theAuthorityand all securities lawfully given 10 or by it and in forcc

immcdiately before the commencement of this Act shall

have effect as contracts, agreements and undertakings

made by and with the Authority and may be enforced by

and against the Authority accordingly;

any proceedings cotnmenced by or against the Authorityunder the repealed Act may be continued by or against the

Authority;

(d)

(e)

59. Continuation of employment of employees of the Uganda

Coffee Development AuthoritY.(1) The Authority shall, on the effective day of its operations

accept into its emptoyment, every person who immediately before the

commencement of this Act, was an employee of the Authority.

(2) The terms and conditions, including the salary' on which

a person rcferred to in paragraph ( I ) was employed immediately

before the commencement of this Act, shall not be less favourable

than those that applied to that person's office immediately before thc

commencement of this Act.

(3) For the avoidance of doubt, anything commenced under the

repealed Act may be continued under this Act.

SCHEDULES

JO

Page 43: National Coffee Bill 2018

Bill No.20 The National Coffee Bill

SCHEDULE 1

2018

seclion 2

Currency Point

One currency point is equivalent to twenty thousand shillings.

3C APR 20il *ACC Nn

*

CALL NO-,..

PA LR A EM TN L BRA YRP o ao 7x 7I l( M LA

39

Page 44: National Coffee Bill 2018

Bill No,20 The National Colfee Bill

SCIIEDULE 2

2018

sectiou 20.2l(4)

1. Mectings ol'the Board'(l) The{hairpercon shall convene the meeting of the Boald as soon

as is practicable after tire aPPointment of the Board, and thereafter' the Board

,tutt'-"et for the transaciitn of business at times and places that may be

decided upon by the Boaldl and the Board shall meet at least once in every

three months.

(2) The Chairperson or, in the absence ofthe Chairperson' a member

appointed iy the Boaid to act as chairPerson may at any time call a special

meeting of ihe Board, or shall call a special meeting upon a w tten requesl

by a majority of the members of the Board'

(3) The Chairpelson shall preside at all meetings of the B-oard ' and in

his or her absence the members present may apPoint a member trom amonB

themselves to preside at that meeting.

Meetings of the Board.

2. Quorum.The quorum for a meeting of the Board shall be seven members

3. Decisions of the Board.

Qu.stion. ploposed at a meeting of the Boal'd shall be decided by a majority

& th. uot"i oi the members present: and in the event of an equality of votes'

,h" p.r.on presiding shall have a casting vote in addition to his or her

deliberative vote.

4. Disclosure'( I ) A member of the Board rvho has any pecuniary interest in a matter

being coniidered or about to be considered by the Board shall-' as soon as

porriut" oft". tt. televant facts have come to his or her knorvledge' disclose

ih" ru,ur. of his or her interest to the Boald'

(2) A djsclosu:'e of interest under subparagraph (1) shall be recorded

in the minutes of the meeting of the Board'40

Page 45: National Coffee Bill 2018

Bill No.20 The Narional Coffee Bill 2018

(3) A member who makes a disclosure under subparagraph ( l) shattnot be present during any deliberalion of the Board rvith respect to thatmatter.

(4) For the purpose of the derermining rvhether there is quorum, amember rvithdrawing from the meeting or who is taking pan in the meetingunder subparagraph (3) shall be treated as being present.

5. Minutes of procccdings.(l) The Board shall cause the minutes of all proceedings of its

meellngs to be recorded and kcpt.

(2) The minutes kept under subparagraph (1) shall be confilmed bythe Board at the next meeting and signed by the chairperson of that meeting,unless a different procedure is adopted by the Board.

(2) The Chairperson shall submir to rhe Minister a copy of theminutes of each meeting of the Board as soon as such minutes have beenconfirmed.

6. Board to regulate proceedings.Subject to this Act, the Board may regulate its orvn procedure or any othermatler relatjng to its me€tings.

JI

Page 46: National Coffee Bill 2018

Bill No. 20 T'he National Colfee Bill

CROSS REFERENCES

2018

The Constitution of the Republic of Uganda, 1995'

The Public Finance Management Act, Act 3 of 2015 '

PARLIAiIENT LIBRARYP O BOX 7178. KAMPALA

3 C APR ?Oi] **

12