Be it enacted by the Senate and House of Representatives of the Philippines in Congress assembled:

SECTION 1. This Act shall be known as the "Science Act of 1958."

SEC. 2. In consonance with the provisions of section four, Article XIV of the Constitution, it is hereby declared to be the policy of the state to promote scientific and technological research and development, foster invention, and utilize scientific knowledge as an effective instrument for the promotion of national progress.

SEC. 3. In the implementation of the foregoing policy, the Government shall, in accordance with the provisions of this Act:

1. Stimulate and guide scientific, engineering and technological efforts towards filling the basic and immediate needs of the people;
   
2. Survey the scientific, engineering and technological resources of the country and formulate a comprehensive program for the development and maximum utilization of such resources in the solution of the country's problems;
   
3. Strengthen the educational system of the country so that the same will provide a steady source of competent scientific and technological manpower;
   
4. Furnish incentives to private and individual initiative in scientific work, as a fundamental basis for the advancement of science;
   
5. Promote and encourage the dissemination of the results of scientific and technological research and the general application thereof;
   
6. Encourage and facilitate the active participation of domestic and foreign sectors in furnishing financial, technical and other forms of assistance for scientific and technological activities;
   
7. Promote coordination and cooperation in research in order to secure concentration of effort, minimize duplication and thereby achieve maximum progress;
   
8. Initiate and bring about the establishment of standards, quality control measures and documentation facilities; and
   
9. Encourage studies in the pure and fundamental sciences.

SEC. 4. To carry out the provisions of the preceding section, there is hereby created a National Science Development Board, hereinafter referred to as the Board, with the following functions, powers and duties:

1. To coordinate and promote cooperation in the scientific research and development activities of government agencies and private enterprises;
   
2. With the approval of the President of the Philippines, to formulate consistent and specific national scientific policies and prepare comprehensive scientific and technological programs which shall be observed and implemented by the Government and all its subdivisions, agencies and instrumentalities;
   
3. To establish a system of priorities for scientific and technological projects;
   
4. To review and analyze scientific and technological projects, schedules of activities, programs and project proposals, including the progress of projects being under taken, and to take such measures as may be necessary to accomplish the objectives and policies involved in these activities;
   
5. To develop a program for the effective training and utilization of scientific and technological manpower;
   
6. To initiate and facilitate arrangements for scientific and technological aid from domestic private sectors and foreign sources and for the exchange of information among local and foreign institutions and scientific investigators ;
   
7. To offer to, and accept from, public and private sectors, specific project proposals of scientific and/or technological research and development in accordance with section ten hereof, and to provide appropriate financial, technical and other support thereto;
   
8. To establish and/or provide incentives, including financial and technological support, for the establishment of scientific and technological centers;
   
9. To disseminate the results of scientific and technological research and to encourage their practical application;
   
10. To grant scholarships in mathematics, science, technology and science teaching to deserving citizens;
    
11. To grant financial or other awards, bonuses and/or prizes to deserving scientific, engineering and technological
    researchers and inventors;
    
12. To pay additional compensation to scientific, engineering and technological researchers and inventors employed in the Government or its subdivisions and instrumentalities under such terms and conditions as may be most conducive towards the attainment of maximum emciency in scientific research and studies;
    
13. To extend travel grants for scientific and/or technological purposes; to send delegates and/or observers to scientific and technological conferences or conventions; and to promote and assist scientific and technological conferences and conventions in the Philippines;
    
14. With the approval of the President of the Philippines, to appoint not more than five science attaches with the proper scientific background and, whenever necessary, to send scientific and technological missions abroad;
    
15. To undertake, in collaboration with the Department of Education, a thorough survey of the educational system and to determine, as well as to recommend to the corresponding authorities, the measures which may be necessary to make it an effective instrument for scientific advancement;
    
16. To initiate and formulate measures designed to promote scientific effort and science consciousness;
    
17. To submit to the President of the Philippines and to both Houses of Congress, not later than the opening of the regular session each year, an annual report on the status of the national science effort, embodying such recommendations as it may deem proper to make; and
    
18. Generally, to do such other things and take such action as may be directly or indirectly incidental or conducive to the attainment of the objectives of this Act.

SEC. 5. The Board shall be composed of a Chairman; a Vice-Chairman, who shall concurrently be the Executive Director of the Board; and the following members: the Chairman of the National Research Council of the Philippines, the Commissioner of the National Institute of Science and Technology, the Commissioner of the Philippine Atomic Energy Commission, the Director of the Office of National Planning of the National Economic Council, a representative from the University of the Philippines to be designated by the President of the University, one member representing industry, one member representing scientific and/or technological associations or societies, one member representing agriculture, and one member representing education.

The members representing industry, scientific and/or technological associations or societies, agriculture and education shall be appointed by the President of the Philippines from among those who shall be recommended by representative groups, subject to the confirmation of the Commission on Appointments, and shall hold office each for a period of three years.

SEC. 6. The Chairman of the Board, who shall have cabinet rank, shall be appointed by the President of the Philippines, subject to the confirmation of the Commission on Appointments. He shall be a citizen of the Philippines with proven executive ability who shall have distinguished himself in science, technology and/or his chosen profession field of activity. He shall hold office for six years and shall not be removed therefrom except for cause.He shall receive an annual compensation of twenty-four thousand pesos.

The Vice-Chairman shall be appointed by the President of the Philippines, subject to the confirmation of the Commission on Appointments. He shall be a citizen of the Philippines with proven executive ability who shall have achieved distinction in science and/or technology. He shall receive an annual compensation of eighteen thousand pesos.

Both the Chairman and the Vice-Chairman shall pass the necessary security clearance.

SEC. 7. The members of the Board, except the Commissioner of the National Institute of Science and Technology and the Commissioner of the Philippine Atomic Energy Commission who shall serve as ex officio members without extra compensation, shall receive a per diem of fifty pesos each per session of the Board: Provided, That the monthly total of such per diems for each member shall not exceed two hundred pesos.

SEC. 8. The Board shall have the following divisions: the Division of Programming and Evaluation, the Division of Development and Assistance, the Administrative Division, the Legal Division and such other divisions which the Board may deem necessary to create.

SEC. 9. The Board shall have, for all legal purposes, all the duties, powers and prerogatives of a Board of Directors and shall function as such, unless otherwise provided for in. this Act. The Board shall promulgate such rules and regulations as may be necessary for the conduct and exercise of its functions, duties, and powers under this Act: Provided, That the concurrence of at least six members is required for the approval of any resolution; And provided, further, That only the members of the Board who have passed the necessary security clearance shall deliberate and act on classified matters relating to atomic energy and/or nuclear science.

The Board shall exercise its powers in such manner as to insure the continuity of research and development activities in the fields specified in this Act by the Government and private enterprise and to assist in increasing theoretical and practical knowledge in such fields.

SEC. 10. Notwithstanding the provisions of Commonwealth Act Numbered One hundred and thirty-eight and the requirements of public bidding, the Chairman shall, subject to the approval of the Board enter into contracts, or otherwise make arrangements, for the conduct of the following activities and their development:

1. Industrial research
   
2. Agricultural research
   
3. Medical and pharmaceutical research
   
4. Biological research
   
5. Atomic energy research
   
6. Food and nutrition research
   
7. Engineering research
   
8. Research on social science and the humanities, and
   
9. Pure and fundamental science studies.

In implementation of such contracts or arrangements the Chairman may, subject to the approval of the Board, make partial or advance payments and make available such equipment and facilities of the Board and its agencies as he may deem necessary.

The Chairman shall, with the approval of the Board, appoint such technical and administrative personnel as may be necessary to carry out the assigned functions of the Board.

SEC. 11. The Vice-Chairman and Executive Director shall exercise immediate control and supervision over the divisions and offices of the Board.

SEC. 12. There is hereby created the National Institute of Science and Technology, hereinafter referred to as the Institute, which shall be under the supervision of the National Science Development Board, with the following functions, powers, and duties:

1. To implement and conduct programs of scientific and technological research and development as may be directed by the Board;
   
2. To cooperate with private enterprise in research activities relating to scientific and technological problems of industry, agriculture, medicine, engineering, mathematics and the natural, biological and social sciences;
   
3. To conduct studies through its research centers on industrial, agricultural, medical, biological and related fields, and to cooperate with other government agencies along these lines;
   
4. To perform analyses and tests for the purpose of establishing suitable standards of products, to calibrate weights and measures, to determine the quality and composition of materials, and to issue certifications in relation thereto;
   
5. To provide government entities and local industrial organizations with data of scientific and/or technological nature, subject to established laws and regulations on national security;
   
6. To establish, expand, maintain and operate pilot plants, research centers, test and standard laboratories, experimental stations and documentation facilities;
   
7. To study and evaluate project proposals for research and development in the industrial, agricultural, medical, biological and related fields from public and private sectors, and to recommend necessary financial, technical and other appropriate assistance thereto;
   
8. To receive assignments or patents, grant exclusive rights to their use, charge and collect reasonable fees or charges for their use in accordance with the policies of the Institute;
   
9. To keep posted on research projects and activities financed or assisted under this Act;
   
10. To recommend deserving citizens for training, government and private grants and scholarships in the Philippines and abroad in science, other than nuclear science, technology, mathematics and science teaching; and
    
11. To render annual reports and such special reports as may be requested by the Board.

SEC. 13. The Institute shall be under a Commissioner and a Deputy Commissioner, both of whom shall be appointed by the President of the Philippines upon the recommendation of the Chairman of the Board, subject to the confirmation of the Commission on Appointments. Both officials shall be citizens of the Philippines with distinguished accomplishments in scientific and/or technological research and with broad administrative experience. The Commissioner shall receive an annual compensation of eighteen thousand pesos, and the Deputy Commissioner an annual compensation of fifteen thousand pesos.

SEC. 14. The Institute shall have the following divisions: the Administrative Division, the Division of Documentation, the Legal Division, and such other divisions as the Board may, upon the recommendation of the Commissioner of the Institute, deem necessary to create.

There shall also be under the control and supervision of the Institute the following centers: the Industrial Research Center, the Agricultural Research Center, the Medical Research Center, the Biological Research Center, and such other centers as may be created by the Board. Each research center shall be headed by a research director.

The President of the Philippines is hereby authorized to transfer to and place under the jurisdiction of the Institute, upon recommendation of the Board, such existing government research agencies and instrumentalities as may constitute the nucleus of the respective centers herein provided. The President may likewise, upon recommendation of the Board, reorganize and strengthen said government agencies and instrumentalities so that they may adequately function as research centers under the provisions of this Act.

The existing Institute of Nutrition under the Department of Health, together with its personnel, appropriation, supplies and equipment with all its functions and powers, is hereby transferred to the National Institute of Science and Technology, under which it shall become one of its research centers and shall function as presently organized, Reorganization Plan No. 14-A under Republic Act Numbered Nine hundred ninety-seven, as amended, notwithstanding, without prejudice to its reorganization by the President as above provided. The said Institute of Nutrition is hereby renamed Food and Nutrition Research Center.

SEC. 15. Such technical and administrative personnel as may toe necessary to carry out the functions of the Institute shall be appointed by the Chairman of the Board, upon recommendation of the Commissioner of the Institute and subject to the approval of the Board.

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 and training;
   
2. To conduct or cause the performance of research and development relating to:
   
   
1. Nuclear processes and techniques;
   
2. The theory of atomic energy;
   
3. Processes, materials, and devices used in the production of atomic energy;
   
4. The utilization of special nuclear material and radioactive material for commercial, industrial, medical, biological, agricultural, or other peaceful purposes;

3. To issue rules and regulations for the protection of its personnel and the general public and undertake their enforcement;
   
4. To approved and facilitate the procurement of radioactive material and instruments for use in nuclear laboratories;
   
5. To issue licenses for the use of radioactive material;
   
6. 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;
   
7. To coordinate the work of research entities and government agencies and instrumentalities on nuclear science;
   
8. To keep posted on nuclear research projects and activities financed or assisted under this Act;
   
9. To represent the Philippines in conferences related to atomic energy and its application;
   
10. To recommend deserving citizens for training, government and private grants and scholarships in the Philippines and abroad in nuclear science; and
    
11. To render annual reports and such special reports as may be requested by the Board.

SEC. 17. The Commission shall be under a Commissioner and a Deputy Commissioner, both of whom shall be appointed by the President of the Philippines upon recommendation of the Chairman of the Board, subject to the confirmation of the Commission on Appointments. Both officials shall be citizens of the Philippines with adequate administrative experience who shall have won distinction in science and/or technology and who possess sufficient background in nuclear science. Both shall pass the necessary security clearance.

The Commissioner shall receive an annual compensation of eighteen thousand pesos, and the Deputy Commissioner fifteen thousand pesos.

SEC. 18. The Commission shall have the following divisions; the Administrative Division, the Division, of Training, Plans and Policies, the Research and Development Division, the Legal Division and such other divisions as the Board may, upon recommendation of the Commissioner, deem necessary to create.

The Commission shall exercise control and supervision over the activities of the Atomic Energy Research Center which is hereby created, and such other centers as may be created by the Board, upon recommendation of the Commissioner.

SEC. 19. Such technical and administrative personnel as may be necessary to carry out the functions of the Commission shall be appointed by the Chairman of the Board, upon recommendation of the Commissioner and subject to the approval of the Board.

SEC. 20. The National Research Council of the Philippines shall act as the official adviser on scientific matters to the Government of the Philippines shall act as the official adviser on scientific matters to the Board.

SEC. 21. The Board and its agencies are hereby authorized to call upon other government agencies and instrumentalities for assistance and cooperation in the formulation and implementation of its policies, plans and programs.

SEC. 22. The Chairman and Vice-Chairman of the Board, the Commissioners and Deputy Commissioners of both the National Institute of Science and Technology and the Philippine Atomic Energy Commission shall not, during their continuance in office, engage in the practice of any profession, or intervene, directly or indirectly, in the management or control of any private enterprise which in any way may be affected by the functions of their office, nor shall they directly or indirectly be financially interested in any contract with the Government or any subdivision or instrumentality thereof.

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 scholarships in the fields of science, engineering and technology. Such grants, bequests and donations shall be tax-exempt and upon certification of the Board or the University that said grants, bequests and donations are dedicated to the purposes above-mentioned.

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 i 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.

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 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.

SEC. 26. Provisions of law to the contrary notwithstanding, all officials and employees appointed under this Act, classification, shall be exempt from the provisions of laws, except those who belong to the clerical and janitorial rules and regulations on wage and position classification.

SEC. 27. There are hereby authorized to be appropriated such sums as may be necessary to carry out the provisions and purposes of this Act.

All sums heretofore appropriated or to be appropriated under section three of Republic Act Numbered One thousand six hundred and six, including the special fund known as the Scientific, Engineering and Technological Research Fund, as well as other appropriations for the National Science Board, the National Scientific and Industrial Research Institute (the former Institute of Science and Technology), the Philippine Nuclear Energy Commission, the Institute of Nutrition and such other government agencies and instrumentalities as may be transferred to the Board pursuant to section fourteen hereof, and all appropriations for the foregoing agencies and instrumentalities under the Appropriation Act for the fiscal year 1959 are hereby re-appropriated as funds of the Board to be used in such manner as shall best insure the implementation of the objectives of this Act, subject to the provisions of section twenty-five hereof.

The sum of six hundred thousand pesos is hereby appropriated from any available funds of the National Treasury not otherwise appropriated as additional outlay for the activities of the Board for the fiscal year nineteen hundred fifty-nine.

SEC. 28. Funds appropriated for the Board and its agencies shall, if obligated by contract during the fiscal year for which appropriated, remain available for expenditure for four years following the expiration of the fiscal year for which appropriated or for the duration of the contract under which obligated.

SEC. 29. All files, records, supplies, equipment, buildings, personnel, funds and unexpended balance of appropriations of the National Science Board, the National Scientific and Industrial Research Institute (the former Institute of Science and Technology), and the Philippine Nuclear Energy Commission, are hereby transferred respectively to each of the corresponding agencies under this Act, subject to the provisions of sections ten, fifteen and nineteen hereof.

SEC. 30. Projects already initiated under the National Science Board shall be continued under the National Science Development Board.

The projects enumerated under Republic Act Numbered One thousand six hundred and six, which have not yet been initiated shall be reviewed and, if necessary, revised by the National Science Development Board which shall provide for their continuance until the end of the fiscal year nineteen hundred sixty-one.

SEC. 31. If any provision of this Act or the application of such provision to any person or circumstances is held invalid, the remainder of this Act or the application of such provision to other persons or circumstances shall not be affected thereby.

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-six hereof, Republic Act Numbered One thousand eight hundred and fifteen, except section ten thereof which shall continue in force as amended by section twenty-six hereof, and such other Acts or parts of Acts which are inconsistent herewith.

SEC. 33. This Act shall take effect upon the constitution of the Board but not later than thirty days after the approval hereof.

Approved, June 13, 1958.