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, BEQUESTS AND DONATIONS FOR SCIENTIFIC PURPOSES TO PRIVATE EDUCATIONAL INSTITUTIONS, AND FOR OTHER PURPOSES.

• Number: Republic Act No. 3589
• Sections: 17

Section 1

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."

Section 2

SEC. 2. New sections to be designated as Sections 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 purposes of establishing suitable standards, calibration of weights and measures, determination of quality composition of materials and products, for services as referee or umpire in cases of conflicts on scientific and technical determinations where arbitration is sought and for other analyses and tests. The Institute shall issue rules and regulations establishing scale of fees for above analyses, tests and services and such rules and regulations as the Institute may deem desirable for the collection of such fees.

"SEC. 12-b. Ale 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."

Section 3

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 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 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 and 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 conferences 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."

Section 4

SEC. 4. New sections to be designated as Sections sixteen-a and sixteen-b are inserted after Sections sixteen of the same Act, to read as follows:

Section 5

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 a 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 contrary notwithstanding.

Section 6

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 advancement 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."

Section 7

SEC. 7. A new section is hereby inserted after Section twenty-four of the same Act, to read as follows:

Section 8

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."

Section 9

SEC. 9. The same Act is hereby amended by adding after Section twenty-six thereof a new section lo be known us 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 Common wealth 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."

Section 10

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 a 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."

Section 11

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."

Section 12

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."

Section 13

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"&mdashmeans the National Institute of Science and Technology and the Philippine Atomic Energy Commission;

"Radioactive material"&mdashmeans any material which spontaneously gives off ionizing radiation;

"Source material"&mdashmeans 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"&mdashmeans 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."

Section 14

SEC. 14. Section thirty-three of the same Act is hereby redesignated as Section thirty-four.

Section 15

Sec. 15. This Act shall take effect upon its approval.

Approved, June 22, 1963.

Section 16-A

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 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 possesses, 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 or eleemosynary institution and on the purposes for which the radioactive material shall be used."

Section 24-A

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 eon at double the rate provided for under existing laws, payable by the transferor: Provided, further. That Board shall promulgate the rules and regulations to implement this provision."