Title
Amendments to RA 2067 on Science Bodies
Law
Republic Act No. 3589
Decision Date
Jun 22, 1963
The amendment to Republic Act No. 2067 introduces changes to the National Science Development Board, National Institute of Science and Technology, and the Philippine Atomic Energy Commission, including tax exemption for private educational institutions, the creation of a research fund, and the regulation of radioactive materials.
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Powers and Fee Structure of the National Institute of Science and Technology

  • Authorized to charge reasonable fees for analyses, tests, calibration, quality determination, refereeing in technical disputes, and other scientific services.
  • The Institute must establish rules and regulations on fee scales and collection procedures.

Research Foundation Fund of the National Institute

  • All income, donations, grants, bequests, and unexpended balances accrue to the Research Foundation Fund.
  • Funds are strictly to be used for scientific research and investigations with Board approval.

Functions and Powers of the Philippine Atomic Energy Commission (PAEC)

  • Supervised by the NSDB, tasked with establishing nuclear research laboratories.
  • Conducts research on nuclear processes, atomic energy theory, production materials, and peaceful utilization of radioactive materials.
  • Approves procurement of radioactive material and evaluates nuclear research proposals.
  • Coordinates research entities and represents the Philippines in atomic energy conferences.
  • Recommends candidates for nuclear science training and grants.
  • Required to submit annual and special reports to the NSDB.

Regulation and Licensing of Radioactive Materials

  • No manufacture, transfer, acquisition, or possession of radioactive materials without a license from the PAEC.
  • The Commission sets and enforces rules for handling radioactive materials to protect public health and national security.
  • Fees for licenses are limited to reasonable regulatory costs.
  • Rules enactment requires publication in the Official Gazette.

Disposal and Distribution of Radioactive Materials

  • PAEC may sell, lease, or dispose of radioactive material it owns; charges must compensate the government fairly and promote research.
  • The Commission may waive fees for nonprofits or charitable institutions depending on usage.

Tax Exemptions on Scientific Grants and Donations

  • Grants, bequests, and donations to NSDB, its agencies, and the University of the Philippines meant for scientific and technological research, scholarships, or professional chairs are tax-exempt and deductible for donors.
  • This exemption applies notwithstanding contrary laws.

Support and Tax Exemption for Private Scientific Foundations

  • The Board promotes and assists establishment of private scientific foundations and projects.
  • Contributions to these foundations and projects are tax-exempt and deductible.
  • Income from foundation assets and investments is also tax-exempt.

Tax-Free Importation of Scientific Apparatus and Materials

  • Scientific instruments and materials imported solely for research are exempt from all taxes and duties, regardless of foreign exchange allocation.
  • Transfer or sale of such items triggers double tax and duty rates on the transferor.
  • NSDB will issue implementing rules and regulations.

Penalties for Tax Evasion and Regulatory Violations

  • Fines up to ₱4,000 or imprisonment up to 1 year, or both, for individuals evading tax exemptions fraudulently.
  • Corporations face fines up to ₱10,000 plus liability of responsible officers or employees.
  • Violations of PAEC rules lead to fines up to ₱1,000 or imprisonment up to 6 months; corporations fined up to ₱20,000.

Employment and Retirement of Scientists and Researchers

  • Restrictive retirement provisions do not apply to scientists and researchers; however, appointing authorities may terminate services post-retirement age.

Atomic Energy Research Fund

  • PAEC controls a fiduciary fund for fees, income, donations, and unexpended balances.
  • Fund usage is exclusively for PAEC research and development upon Board approval.

Appropriation and Funding Availability

  • Appropriated funds remain available until fully expended without fiscal year limitations.

Repeal and Continuity of Existing Laws

  • Repeals specified prior Acts except certain amended provisions; removes inconsistencies.

Definitions Under the Act

  • "Agencies" refers to the National Institute of Science and Technology and PAEC.
  • "Radioactive material" means substances that emit ionizing radiation spontaneously.
  • "Source material" includes uranium, thorium, or similar minerals as regulated.
  • "Special nuclear materials" are plutonium, uranium, or other materials capable of substantial energy release via nuclear reactions.

Effective Date

  • The Act takes effect upon approval on June 22, 1963.

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