Law Summary

SECTION 1: Amendment to the National Marketing Corporation (NAMARCO) Provisions

• This section amends Sub-section (b) of Section six of Republic Act No. 1345, which pertains to the financial operations of NAMARCO.

• Key Definitions Introduced:

  • Board of Directors: The governing body of NAMARCO responsible for financial appropriations.
  • Operating Expenses: Costs incurred by NAMARCO in the course of its operations, limited to three million pesos.

• Important Requirements or Procedures:

  • The Board of Directors is authorized to allocate funds from NAMARCO's gross earnings for operating expenses, contingent upon Presidential approval.
  • The appropriation for operating expenses must not exceed three million pesos per fiscal year.
  • The Board of Directors is explicitly prohibited from using any amount from its authorized capital for operating expenses.

• Relevant Timeframes:

  • The Act takes effect on January 1, 1962.

• Consequences:

  • In the event of an increase in the number of employees, priority must be given to former employees of NAMARCO or PKISCO who are civil service eligible and have been laid off.
  • Any unspent balance for operating expenses will revert to the revolving fund at the end of each fiscal year.
  • Any net earnings of NAMARCO will also accrue to the revolving fund.

SECTION 2: Effectivity

• Important Details:
  • The Act is approved on June 17, 1961, and will take effect on January 1, 1962.

Key Takeaways:

• Republic Act No. 3065 modifies provisions related to the financial management and operational expenses of NAMARCO.
• It sets clear limitations on operating expenses and prioritizes the reemployment of laid-off workers under certain conditions.
• The Act's provisions are closely tied to the fiscal regulations of NAMARCO and establish a framework for the use of its earnings and appropriations.
• The implementation of this amendment is scheduled for early 1962, aligning with the operational fiscal year of NAMARCO.