Reorganization of Nat'l Science Dev't Board into NST Authority

Policy, Purpose, and National Planning

The Order directs that science and technology advancement must have priority in national development.
The Authority must gear scientific and technological efforts to meet economic and social development demands.
The Order requires that research and development results be properly applied and utilized in production processes to benefit the Filipino people.
The Order calls for a directed and common strategy and partnership between private and public sectors for science and technology self-reliance.
The Order establishes a need for innovative comprehensive national planning to integrate total government science and technology efforts and harmonize them with private sector efforts (WHEREAS clauses).

Creation of the Authority and Core Duties

The National Science Development Board is reorganized into the National Science and Technology Authority (Section 1).
The Authority provides central direction, leadership, and coordination of scientific and technological research and development (Section 1).
The Authority must, together with other government agencies, ensure the application and utilization of research and development results to achieve developmental goals (Section 1).
The Authority must formulate and implement policies, plans, and programs for science and technology capabilities and for promoting scientific and technological activities (Section 2).
The Authority must ensure research and technology results are properly applied and utilized to accelerate economic and social development (Section 2).
The Authority must continually review the state and needs of science and technology in light of national development goals (Section 2).

Comprehensive National Plan Requirements

The Authority must formulate a Comprehensive National Plan for Science and Technology (Section 3).
The Comprehensive National Plan must be implemented by all government agencies and instrumentalities only upon approval by the President of the Philippines (Section 3).
The Plan must be relevant to and consistent with the national economic development plan and must mobilize government resources for effective and efficient accelerated research and development and utilization of results (Section 3).
The Plan must establish priorities for specific programs and projects and must rationalize national government funding and budgetary requirements for research and development to attain optimum allocation of resources (Section 3).
The Plan must provide guidelines for private sector participation in the government research and development program (Section 3).

Authority Functions and Organizational Structure

The Authority must promote, assist, and where appropriate undertake research and development in all fields, and must provide direction and promote public-private cooperation in scientific and technological activities (Section 4(a)).
The Authority must promote development of indigenous technology and adaptation of foreign technology for domestic use (Section 4(b)).
The Authority must formulate and submit to the President for approval the Comprehensive National Plan, including specific goals, policies, plans, programs, and projects (Section 4(c)).
The Authority must prepare and submit to the Office of Budget and Management annual national budgetary requirements and coordinate funding and implementation of the Comprehensive National Plan (Section 4(d)).
The Authority must develop and implement a national delivery system for the effective and efficient utilization of research and development results (Section 4(e)).
The Authority must encourage and facilitate active private sector participation in scientific and technological activities (Section 4(f)).
The Authority must develop and implement, with other entities, a national program for strengthening science and technology capabilities through accelerated training and deployment of manpower and building infrastructure and institutions (Section 4(g)).
The Authority must develop and maintain a national information bank on science and technology for public and private sector use and must promote public consciousness in science and technology (Section 4(h)–(i)).

Director General and Authority Units

The exercise of the Authority’s powers and discharge of its functions are vested in the Director General of the National Science and Technology Authority, appointed by the President (Section 5).
The Director General is an ex-officio member of the National Economic and Development Authority (Section 5).
The Director General is assisted by Deputy Directors General appointed by the President (Section 5).
The Director General is authorized to determine and assign Deputy Directors General’s functional areas of responsibility, limited so that no Deputy Director General is assigned primarily to administrative matters (Section 5).
The Authority consists of the Authority proper, agencies under its supervision and control, agencies under its administrative supervision, and corporate entities attached for policy/program coordination (Section 5).
The Authority proper is composed of the Office of the Director General, Planning Service, Financial and Management Service, Administrative Service, and Special Projects Service (Section 6).
The Special Projects Service identifies and facilitates special research-result programs/projects of economic and social value, utilizes corporate facilities of the Technology Resource Center of the Ministry of Human Settlements, promotes cooperation with foreign institutions and international bodies, and generates funds in pursuit of Authority objectives (Section 6).

Line Agencies, Administrative Supervision, Attachments

The Authority exercises supervision and control over the following line agencies (Section 7):
- National Institute of Science and Technology
- Food and Nutrition Research Institute
- Philippine Institute of Volcanology
- Forest Products Research and Development Institute
- Philippine Invention Development Institute
- Science Foundation of the Philippines, renamed Science Promotion Institute and converted into a regular government agency from its original corporate status
- Materials Science Research Institute, created and assigned research functions previously performed by the Metals Industry Research and Development Center and absorbing the ceramics research unit of the National Institute of Science and Technology
The Materials Science Research Institute, for metals research functions, must avail itself of the Metals Industry Research and Development Center facilities under arrangements agreed between them (Section 7).
Each line agency institute is headed by a Director assisted by a Deputy Director, both appointed by the President upon recommendation of the Director General (Section 7).
The Authority exercises administrative supervision over (Section 8):
- National Academy of Science and Technology
- Philippine Atomic Energy Commission, transferred from the Office of the Prime Minister
- Science and Technology Councils under Section 10 of the Executive Order, except the National Research Council of the Philippines
The following corporate entities are attached to the Authority for policy and program coordination (Section 9):
- Philippine Science High School
- National Research Council of the Philippines
The Director General is the ex-officio Chairman of the governing boards of the attached corporate entities (Section 9).

Science and Technology Council System

The Order creates a Science and Technology Center System composed of four councils: the Philippine Council for Health Research and Development, the Philippine Council for Industry and Energy Research and Development, the Philippine Council for Agriculture and Resources Research and Development (renamed), and the National Research Council of the Philippines (Section 10).
The Philippine Council for Agriculture and Resources Research is renamed Philippine Council for Agriculture and Resources Research and Development (Section 10).
Each council except the National Research Council of the Philippines is serviced by a Secretariat headed by an Executive Director appointed by the President upon recommendation of the Director General (Section 10).
The Executive Director implements the Council’s policies, projects, and decisions (Section 10).
The Director General coordinates Council activities to ensure synchronization of research and development programs and to avoid duplications and rationalize total resource requirements (Section 10).
The President may create or transfer additional entities as additional components of the System upon recommendation of the Director General (Section 10).
Each Council formulates strategies and programs for science and technology development, programs allocation of government funds in coordination with the Office of Budget and Management, and establishes and maintains a system to generate funds in its specific sector (Section 11).

Council Composition and Membership Rules

The Philippine Council for Health Research and Development is under the Authority’s administrative supervision (Section 12).
The Health Council consists of nine persons with the Director General as Chairman (Section 12).
The Health Council members are: Deputy Minister of Health, Chancellor of the University of the Philippines Health Sciences Center, Executive Director of the National Nutrition Council, Executive Director of the Council Secretariat, and four other private sector representatives in health appointed by the President in their personal capacity upon recommendation of the Director General (Section 12).
Health Council private sector members are appointed for a term of two (2) years (Section 12).
The tenure of first-appointed members is set so that two serve for one year and the other two serve for two years, fixed in their respective appointments (Section 12).
Council members serve and continue holding office until successors are appointed and qualified (Section 12).
Vacancies are filled by Presidential appointment of a successor to serve the unexpired portion of the term (Section 12).
The Philippine Council for Industry and Energy Research and Development is under the Authority’s administrative supervision (Section 13).
The Industry and Energy Council consists of nine persons with the Director General as Chairman (Section 13).
The Industry and Energy Council members are: Deputy Minister of Trade and Industry, Deputy Minister of Energy, Deputy Minister of Public Works and Highways, Deputy Minister of Transportation and Communications, Executive Director of the Council Secretariat, and three private sector representatives in industry and energy appointed by the President in their personal capacity upon recommendation of the Director General (Section 13).
Industry and Energy Council private sector members serve for a term of two (2) years (Section 13).
The tenure of first-appointed members is set so that one serves for one year and two serve for two years, fixed in their respective appointments (Section 13).
Council members serve until successors are appointed and qualified (Section 13).
Vacancies are filled by Presidential appointment for the unexpired portion of the term (Section 13).
The Philippine Council for Agriculture and Resources Research and Development is under administrative supervision of the Authority and is reconstituted to consist of nine persons with the Director General as Chairman (Section 14).
The Agriculture and Resources Council members include: Deputy Minister of Agriculture, Deputy Minister of Natural Resources, Deputy Administrator of the National Food Authority, Chancellor of the University of the Philippines at Los BaAos, Executive Director of the Council Secretariat, and three private sector representatives in agriculture and resources appointed by the President in their personal capacity upon recommendation of the Director General (Section 14).
Private sector members serve for a term of two (2) years (Section 14).
The tenure of first-appointed members is set so that one serves for one year and two serve for two years, fixed in their respective appointments (Section 14).
Council members serve until successors are appointed and qualified (Section 14).
Vacancies are filled by Presidential appointment for the unexpired portion of the term (Section 14).
The National Research Council of the Philippines is attached to the Authority and retains its organizational structure as a collegial body (Section 15).
The National Research Council of the Philippines primarily supports basic and fundamental research, in contrast to the applied research orientation of the other three councils (Section 15).
The Director General must ensure priority research fields are clearly defined between the National Research Council of the Philippines and the other three councils (Section 15).

Technology Commercialization and TRC Powers

The Technology Resource Center (TRC) of the Ministry of Human Settlements is the implementing arm of the Authority for fostering and promoting commercialization of appropriate technologies specified in Section 6 of the Executive Order (Section 16).
The Chairman of the TRC Board of Trustees and the Director General must jointly issue implementing rules and regulations governing relationships related to TRC functions under the Order (Section 16).
TRC is empowered to engage in venture capital development (Section 16).
TRC must expand its existing information and cartographic bank into a National Data Communications System, establishing resource information networks both domestic and foreign (Section 16).
TRC must establish a physical infrastructure center to house and locate the Center’s facilities and programs, including those of the Authority itself as deemed appropriate, with authorization for the Chairman of the Board of Trustees to undertake physical construction (Section 16).
TRC must create a Livelihood External Assistance Program Office directly under the Management Advisory Council to oversee implementation of programs/projects using appropriate technologies with bilateral and multinational financing and/or assistance (Section 16).
The Livelihood External Assistance Program Office must be headed by a Managing Director appointed by the President upon recommendation of the Chairman, TRC Board of Trustees (Section 16).
The Livelihood External Assistance Program Office is created in anticipation of Authority requirements for commercialization and utilization specified in Section 6 (Section 16).

Extensions, Advisory Bodies, and Personnel Systems

The Authority is authorized to establish regional or field extension offices as necessary under the Integrated Reorganization Plan, as amended (Section 17).
The Authority may have offices and representatives abroad in specific sites where its presence is necessary, subject to President approval for each post abroad (Section 17).
The Director General may establish advisory bodies for science and technology development when appropriate or seek advice from recognized and reputable scientific, professional, industrial, and trade organizations (Section 18).
A Scientific Career System is established within the Civil Service to cover scientific personnel who have earned advance degrees in any field of the sciences (Section 19).
The Scientific Career System provides entrance to and career progression or advancement based on qualification and merit (Section 19(a)).
The Scientific Career System provides parallel career paths allowing scientists to develop within their respective areas of expertise without changing their status as scientist (Section 19(b)).
The Scientific Career System provides incentives and rewards to attract and retain highly qualified manpower in the science and technology sector (Section 19(c)).
The Civil Service Commission, with assistance of the Authority, is responsible for establishing and operating the Scientific Career System (Section 19).
The Director General is authorized to establish science communities that provide both research and living facilities for scientists and their families (Section 20).
Initially, three science communities are established: an energy, earth and atmospheric sciences community in Diliman, Quezon City; an industrial sciences community in Bicutan, Taguig, Metro Manila; and an agriculture, forestry and life sciences community in Los BaAos, Laguna (Section 20).

Appropriations and Funding Augmentation

The balance of appropriations authorized under Batas Pambansa Blg. 131 for the National Science Development Board and its agencies, including those transferred to the Authority, must be used for the Authority’s operational expenses for the current calendar year (Section 21).
The operational expenses appropriations must be augmented in an amount of not less than fifty million pesos (PHP 50,000,000) from any applicable appropriation item (Section 21).
Augmentation requires approval of the President and recommendation of the Director General of the Office of Budget and Management (Section 21).

Abolition, Transfers, Continuity, and Rights

The National Science Development Board, including its Governing Board, Board proper, and implementing agencies, is abolished (Section 22).
A new organization for the Authority is established under Sections 6 and 7 of the Executive Order (Section 22).
Unless otherwise provided, functions, powers, records, equipment, and applicable appropriations of the National Science Development Board under Republic Act No. 2067, as amended, and under other laws, decrees, orders, or other Presidential issuances are transferred to appropriate units and agencies of the Authority (Section 22).
References in laws, decrees, proclamations, and orders to the National Science Development Board or its Chairman are deemed references to the National Science and Technology Authority or the Director General, respectively (Section 22).
The Director General is authorized to issue orders, rules, and regulations needed to implement the Executive Order, but must obtain approval of the Office of Budget and Management relative to the new staffing pattern including appropriate salary rates, organizational structure at divisional and lower levels, and alignment of existing appropriations (Section 23).
The Director General may appoint qualified personnel from the former National Science Development Board and its agencies to appropriate positions in the Authority and its agencies (Section 23).
Personnel not appointed by the Director General are deemed laid off (Section 23).
All Presidential appointees of the former National Science Development Board and its agencies are laid off unless reappointed by the President (Section 24).
Career Executive Service Officers are either reappointed or reassigned by the President to appropriate Authority positions upon recommendation of the Director General, or assigned to a Career Executive Service Board for placement in other ministries or agencies (Section 24).
Career Executive Service Officers assigned to the Career Executive Service Board continue to receive their salaries from available and applicable funds (Section 24).
Career Executive Service Officers not placed to appropriate positions within six months after assignment to the Career Executive Service Board are similarly laid off (Section 24).
Those laid off under the Executive Order are entitled to all benefits and gratuities provided under existing laws (Section 25).
Present incumbents of positions in the National Science Development Board and its agencies, including those transferred or attached to it, continue exercising usual functions, duties, and responsibilities pending issuance of appropriate implementing orders, unless otherwise determined by the Director General (Section 26).

Repeals, Separability, and Reaffirmed Provisions

Laws, decrees, orders, proclamations, rules, regulations, or parts thereof that are inconsistent with any provision of the Executive Order are repealed or modified accordingly (Section 27).
Sections 24, 24-a and 26 of Republic Act No. 2067, as amended are reaffirmed in respect of the Authority, its line agencies, and its attached entities (Section 27).
If any portion or provision is declared unconstitutional, the remaining provisions remain in effect if they can still stand and be given effect to accomplish the Executive Order’s objectives (Section 28).
The Executive Order takes effect immediately (Section 29).