Purposes and Objectives
- Promote effective merchandising of leaf tobacco locally and internationally.
- Conduct research in agriculture and industry to improve yield, quality, and profit.
- Develop tobacco seed strains and utilize factory by-products.
- Improve manufacturing methods and product blends.
- Establish balanced production and consumption relations to stabilize prices.
- Ensure permanent and sufficient production for local and export markets.
- Create warehousing and marketing facilities.
- Supervise classification and grading of leaf tobacco.
- Enhance economic conditions of tobacco laborers through equity improvements.
Powers of the PTA
- Establish and operate research stations and seed farms.
- Maintain/sponsor a chemical tobacco research laboratory under Institute of Science and Technology.
- Acquire necessary machinery, equipment, and supplies.
- Expand domestic and foreign trade of tobacco products.
- Engage in ownership, operation, rental, or leasing of production and transportation equipment.
- Grant loans to tobacco planters.
- Enter contracts necessary for achieving objectives.
- Buy, process, age, and sell tobacco leaves; stabilize and guarantee prices.
- Provide credit facilities directly or via cooperatives or financial institutions.
- Promote cooperatives among tobacco producers and dealers.
- Act as agent or broker for cooperatives and manufacturers.
- Exercise broad corporate powers not inconsistent with the Act.
Governing Body Composition and Appointment
- Board of Directors with five members appointed by the President, with Commission on Appointments' consent.
- Chairman of Board appointed by President; acts as General Manager.
- Staggered terms for initial directors; subsequent terms of five years.
- Removal by the President possible.
- Quorum requires three members.
- Directors' compensation capped; limited number of meetings monthly.
Powers and Duties of the Board of Directors
- Prescribe, amend, repeal by-laws, rules, and regulations within law limits.
- Appoint Assistant General Manager and other officers with necessary approvals.
- Approve annual and supplemental budgets.
- Perform duties assigned by President or Administrator of Economic Coordination.
Management Head and General Manager
- General Manager manages PTA affairs under Board's supervision.
- Annual reporting to Administrator of Economic Coordination.
- Appointment and disciplinary powers over subordinate employees.
- Additional duties as assigned by the Board.
Assistant General Manager
- Assists General Manager; heads designated department.
- Technically trained in tobacco work.
- Acts as General Manager during temporary absence; participates (non-voting) in Board meetings.
Appointment and Promotion of Officers and Employees
- Merit, seniority, and efficiency are the bases; no political tests allowed.
- Violations lead to removal of appointee and suspension/removal of responsible officials.
- Subject to Civil Service Law and Rules, except certain policy or technical positions designated by the President.
Financial Records and Procurement
- Maintain complete and accurate books with five segregated accounts covering operations, development, social programs, production, and trade.
- Public bidding required for purchases and contracts except in emergencies, specific repair needs, minor purchases (≤ P500), or government price advantages.
- Award decisions consider quality, adaptability, financial responsibility, experience, timeliness, and compliance with specifications.
Audit and Financial Reporting
- Auditor General appoints PTA auditor and staff; salaries determined with Board advice.
- Annual audited financial report submitted to Board, President, Administrator, and Congress leaders within 60 days post fiscal year-end.
- Audit report includes comprehensive financial statements and notes on unauthorized or irregular transactions.
Funds and Capitalization
- Creation of Tobacco Industry Promotion Fund from tobacco taxes.
- Initial appropriation of 2 million pesos plus annual 2 million pesos for four years.
- Fund usage: 20% operating expenses, 70% tobacco trading, 10% research.
- Inclusion of assets from defunct National Tobacco Corporation.
Dissolution and Liquidation Procedures
- PTA continues as a corporate body for 3 years post-dissolution for winding up affairs.
- Appointment of a Board of Liquidators by President.
- Liquidation under Administrator of Economic Coordination supervision.
- Assets revert to the National Government after liquidation.
Miscellaneous Provisions
- Applicability of Corporation Law to the extent consistent with the Act.
- Repeal or modification of inconsistent prior laws and orders.
- Separability clause preserving valid provisions if any declared unconstitutional.
- Immediate effectivity upon approval.