REPUBLIC ACT NO. 3589 - AN ACT
AMENDING REPUBLIC ACT NUMBERED TWO THOUSAND SIXTY-SEVEN MODIFYING THE
NATIONAL SCIENCE DEVELOPMENT BOARD, NATIONAL INSTITUTE OF SCIENCE AND
TECHNOLOGY, AND THE PHILIPPINE ATOMIC ENERGY COMMISSION, EXTENDING TAX
EXEMPTION, PRIVILEGES ON GRANTS, REQUESTS AND DONATIONS FOR SCIENTIFIC
PURPOSES TO PRIVATE EDUCATIONAL INSTITUTIONS, AND FOR OTHER PURPOSES
Section 1. Republic Act Numbered Two thousand and sixty-seven
is hereby amended by adding a new section to be designated as Section ten-a, after Section ten thereof, to read as follows:
"Sec. 10-a. The National Science Development Board
shall have final authority to program and utilize exclusively for the
support of the activities mentioned in the preceding section, all
income, grants, bequests, donations and unexpended balances, which
shall compose a Fiduciary Fund to be known as the Science, Engineering
and Technology Research Fund."
Sec. 2. New sections to be designated as Section s
twelve-a and twelve-b, are inserted after section twelve of the same
Act, to read as follows:
"Sec. 12-a. The National Institute of Science and
Technology is authorized and empowered to charge reasonable fees in
connection with all analyses and tests for purposes of establishing
suitable standards, calibration of weights and measures, determination
of quality and composition of materials and products, for services as
technical determinations where arbitration is sought, and for other
analysis and tests. The Institute shall issue rules and regulations
establishing scale of fees for above analysis, tests and services and
such rules and regulations as the Institute may deem desirable for the
collection of such fees.
"Sec. 12-b. All income, donations, grants, bequests,
and unexpended balances of the National Institute of Science and
Technology shall accrue to a Fiduciary Fund, to be known as the
Research Foundation Fund, which shall be expended by the Commissioner
thereof solely for scientific researches and investigations in the
field of conventional science upon the approval and final authority of
the Board, the provisions of existing laws to the contrary
notwithstanding."
Sec. 3. Section sixteen of the same Act is hereby
amended to read as follows:
"Sec. 16. There is hereby created the Philippine
Atomic Energy Commission hereinafter referred to as the Commission,
which shall be under the supervision of the Board, with the following
functions, powers and duties:
"(1) To establish or cause the establishment of
laboratories for nuclear research training;
"(2) To conduct or cause the performance of research
and development relating to:
"(a) nuclear processes and techniques;
"(b) the theory of atomic energy,
"(c) processes, materials and devices used in the
production of atomic energy.
"(d) the utilization of special nuclear material and
other radioactive material for commercial, industrial, medical,
biological, agricultural or other peaceful purposes;
"(3) To approve and facilitate the procurement of
radioactive material and instrument for use in nuclear laboratories;
"(4) To study and evaluate project proposals on
nuclear research from public and private sectors, and to recommend
necessary technical, financial and other appropriate assistance
thereto;
"(5) To coordinate the work of research entities and
government agencies instrumentalities on nuclear science;
"(6) To keep posted on nuclear research projects and
activities financed or assisted under this Act;
"(7) To represent the Philippines in conference
related to atomic energy and its application;
"(8) To recommend deserving citizens for training,
government and private grants and scholarships in the Philippines and
abroad in nuclear science; and
"(9) To render annual reports and such special
reports as may be requested by the Board."
Sec. 4. New Section s to be designated as Section s
sixteen-a and sixteen-b are inserted after Section sixteen of the same
Act, to read as follows;
"Sec. 16-a. No person may manufacture, produce,
transfer, acquire, own, possess, import or export any radioactive
material except in pursuance of a license issued in accordance with
this Act.
"The Commission is hereby authorized to regulate and license the
acquisition, distribution, and use of radioactive material and for the
purpose issue and promulgate such rules, regulations or orders as may
be necessary depending upon the degree or importance to the health and
safety of the public or to the national defense and security, of the
physical characteristics, quantities and the intended use of the
radioactive materials.
"The Commission shall likewise issue such rules and regulations
establishing such standards and instructions to govern the shipments,
possession, and use of radioactive materials, and such other rules and
regulations, as the Commission may deem desirable, to protect health,
minimize danger to life and property, promote the national defense and
security or otherwise protect the general public.
"The Commission is authorized and empowered to charge reasonable fees
in connection with the issuance of licenses; Provided, however, That
such fees shall not exceed the reasonable cost of regulating and
licensing the activities as provided herein.
"The rules and regulations of the Commission shall take effect upon the
publication thereof in the Official Gazette."
"Sec. 16-b. The Commission may sell, lease or
otherwise dispose of such radioactive material, as it owns or possess,
with or without charge; Provided, however, That the Commission in
fixing a charge for radioactive material distributed by it shall
establish such charge, on an equitable basis, as in the opinion of the
Commission will (a) provide reasonable compensation to the Government
for such material, and (b) will encourage research and development:
Provided, further, That the Commission may waive any charge depending
on whether the licensee is a non-profit of eleemosynary institution and
on the purposes for which the radioactive material shall be
used."
Sec. 5. Section twenty-three of the same Act is
hereby amended to read as follows:
"Sec. 23. The Board and its agencies as well as the
University of the Philippines are hereby authorized and empowered to
receive grants, bequests, and donations made or given for the purpose
of aiding scientific and technological investigations or establishing
scholarship or professional chairs in the fields of science,
engineering and technology. Such grants, bequests and donations as well
as those received by public or recognized private educational
institutions, shall be tax exempt and deductible from the income tax
returns of the donor upon certification of the Board, or the University
of the Philippines in case it is the donee, that said grants, bequests
and donations are dedicated to the purpose above-mentioned, any
provision of law, rule or regulation to the contrary notwithstanding.
Sec. 6. Section twenty-four of Republic Act Numbered
Two thousand sixty-seven is hereby amended to read as follows:
"Sec. 24. The Board shall promote and, in its
discretion, assist in the establishment of private foundations for
scientific advancements as well as specific research and development
projects by private individuals, firms and institutions. All funds
contributed to the support and maintenance of such foundations and
their projects as well as specific research and development projects
undertaken by private individuals and educational institutions, shall
be tax-exempt and deductible from the donor's income tax returns, upon
certification by the Board that such foundations and funds are
dedicated to scientific pursuits. All income of whatever kind and
character which such foundations may derive from any of their
properties, real or personal, or from their investments shall also be
tax exempt."
Sec. 7. A new section is hereby inserted after
Section twenty-four of the same Act, to read as follows:
Sec. 24-a. Any provision of existing laws to the
contrary notwithstanding, apparatus, instruments, utensils, equipment,
and materials may be imported into the Philippines, whether or not
foreign exchange has been allocated by the Central Bank for the payment
of such importations, free from all taxes and duties, upon
certification of the National Science Development Board that such
articles are imported solely for scientific and technological research
and development and not for barter, sale or hire: Provided, however,
That in case such articles are subsequently conveyed or transferred to
other parties for a pecuniary consideration, taxes and duties shall be
collected thereon at double the rate provided for under existing laws,
payable by the transferor; Provided, further, That the Board shall
promulgate the rules and regulations to implement this provision."
Sec. 8. Section twenty-five of the same Act is hereby
amended so as to read as follows:
"Sec. 25. Any person who evades or defeats or
attempts to evade or defeat, in any manner, any tax imposed by law by
availing himself of the provisions of Section twenty-three or
twenty-four hereof through fraud or misrepresentation or violates the
rules and regulations promulgated by the Board under this Act shall be
punished by a fine of not more than four thousand pesos or imprisonment
for not more than one year or both, in the discretion of the
Court.
"In case the violator is a corporation or association the penalty shall
be a fine of not more than ten thousand pesos, without prejudice to the
criminal responsibility of the member, officer or employee thereof
committing such violation.
"Any person who violates any provision of the rules, regulations or
orders of the Commission issued pursuant to the provisions of this Act
shall be punished by a fine of not more than one thousand pesos or
imprisonment for not more than six months, or both, in the discretion
of the court.
"In case the violator is a corporation or association the penalty shall
be a fine of not more than twenty thousand pesos, without prejudice to
the criminal responsibility of the officer, member, or employee thereof
committing such violation."
Sec. 9. The same Act is hereby amended by adding
after Section twenty-six thereof a new section to be known as Section twenty-six-a, to read as follows:
"Sec. 26-a. The restrictive provisions of Section thirty of Republic Act Numbered Two thousand two hundred and sixty and
the law on automatic compulsory retirement, as provided for in Section twelve (c) of Commonwealth Act Numbered One hundred eighty-six, as
amended, shall not apply to scientists and researchers appointed and
working as such: Provided, however, That the appointing authority
concerned may terminate the services of said scientists and researchers
at any time after reaching the compulsory retirement age."
Sec. 10. The same Act is hereby amended by adding a
new section after Section twenty-seven thereof to be known as Section twenty-seven-a, to read as follows:
"Sec. 27-a. There shall be under the administration
and control of the Commission on Fiduciary Fund to be known as the
Atomic Energy Research Fund which shall accrue and pertain all the fees
and charges imposed and collected by the Commission, all income,
donations, bequests, grants, and unexpended balance of the Commission,
which shall not, any provisions of law to the contrary notwithstanding,
revert to the General Fund. The Atomic Energy Research Fund shall be
devoted to and disposed of exclusively for the purpose of carrying out
the research and development functions of the Commission as provided in
Section sixteen of this Act, upon the approval and final authority of
the Board."
Sec. 11. Section twenty-eight of the same Act is
hereby amended to read as follows:
"Sec. 28. Funds appropriated for the Board and its
agencies shall remain available for obligation, for expenditure, and
for obligation and expenditure, until expended."
Sec. 12. Section thirty-two of the same Act is hereby
amended to read as follows:
"Sec. 32. This Act repeals Republic Act Numbered One
thousand six hundred and six, except Section three thereof which shall
continue in force as amended by Section twenty-seven hereof, Republic
Act Numbered One thousand eight hundred and fifteen, except Section ten
thereof which shall continue in force as amended by Section twenty-seven hereof, and such other Acts or parts of Acts which are
inconsistent herewith.
Sec. 13. The same Act is hereby amended by adding a
new section to be known as Section thirty-three to read as follows:
"Sec. 33. For purposes of this Act and unless
otherwise indicated in the committee terms herein enumerated shall have
the following meanings;
"Agencies" — means the National Institute of Science and Technology and
the Philippine Atomic Energy Commission;
"Radioactive material" — means any material which spontaneously gives
off ionizing radiation;
"Source material" — means uranium, thorium or any other material which
is determined by the Commission to be source materials or ores
containing one or more of the foregoing materials in such concentration
as the Commission may by regulation determine from time to time;
"Special nuclear materials" — means plutonium, uranium, or any other
material in sufficient quantity which the Commission determines to be
capable of releasing substantial quantities of energy through nuclear
chain reaction of the material."
Sec. 14. Section thirty-three of the same Act is
hereby redesignated as Section thirty-four.
Sec. 15. This Act shall take effect upon its
approval.
Approved: June 22, 1963
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