Reorganization of National Science and Technology Authority

Policy and mandate of Authority

Section 3 states it is the policy of the State to:
- Support and encourage local scientific and technological efforts addressing national and local problems and positively contributing to national development.
- Promote development of local capability in science and technology to achieve technological self-reliance in selected areas vital to national development.
- Support and encourage public and private sector partnership aimed at accelerating self-reliance in the selected areas.
- Encourage and support private sector initiatives in science and technology and provide necessary incentives and assistance to enable the private sector to take increasing responsibility and a greater role in the country’s research and development efforts.
Section 4 mandates the Authority to provide central direction, leadership, and coordination of scientific and technological efforts.
The Authority must ensure that results are geared and utilized in areas of maximum economic and social benefits for the people.
Section 4 requires the Authority to formulate and implement policies, plans, programs and projects for science and technology development for both public and private sectors.
Section 4 requires continual review of the state and needs of science and technology in the context of the country’s development goals.

Reorganization scope and structure

Section 2 reorganizes the National Science and Technology Authority into an Authority with both structural and functional reorganization under the Executive Order.
Section 6 provides that the Authority consists of the Offices of the Director-General, Deputy and Assistant Directors-General, and includes:
- Services
- Inter-Council Review Board
- Sectoral Planning Councils
- Institutes
- Regional Offices
Section 7 vests the Authority’s mandate and the discharge of its powers and functions in a Director-General appointed by the President.
The Director-General exercises supervision and control of the Authority except the Inter-Council Review Board and Sectoral Planning Councils, over which he exercises supervision only.
Section 8 establishes the Office of the Director-General consisting of the Director-General and his immediate staff.

Leadership, deputization, and services

Section 9 provides for three (3) Deputy Directors-General, appointed by the President upon the recommendation of the Director-General.
The three Deputy Directors-General are:
- One for research and development
- One for regional operations
- One for scientific and technical services
Section 9 states the Deputy Directors-General shall have supervision over the Institute under their respective functional areas of responsibility.
Section 10 provides for three (3) Assistant Directors-General, appointed by the President upon the recommendation of the Director-General.
Section 11 establishes the Authority’s Services as:
- Planning and evaluation Service (planning, programs, project monitoring, and development support)
- Financial and Management Service (budgetary, financial, and management improvement staff advice and assistance)
- Administrative and Legal Service (personnel, information, records, supplies, equipment collection, disbursement, security and custodial work, and all legal matters)

Powers and functions

Section 5 provides that the Authority’s powers and functions include the following:
- Formulate and adopt a comprehensive National Science and Technology Plan with specific goals, policies, plans, programs, and projects based on the recommendation of the Inter-Council Review Board, and—upon approval by the President—monitor and coordinate funding and implementation by all government agencies and instrumentalities.
- Promote, assist, and where appropriate undertake scientific and technological research and development in areas vital to the country’s development and other optimum returns for resources employed.
- Promote development of indigenous technology and adaptation and innovation of suitable imported technology development up to the commercial stage, preferably in joint venture with the private sector or with public agencies.
- Undertake design and engineering work to complement research and development functions.
- Promote, assist, and where appropriate undertake transfer of research and development results to their end-users.
- Promote, assist, and where appropriate undertake technological services needed by agriculture, industry, transport, and the general public.
- Develop and maintain an information system and databank on science and technology for use by both public and private sectors.
- Develop and implement, together with other concerned entities, programs strengthening scientific and technological capabilities through manpower training and through infrastructure and institution building and rationalization in both public and private sectors.
- Promote public consciousness in science and technology.
- Undertake policy research, technology assessment studies, feasibility studies, and technical studies.

Inter-council review and sector councils

Section 12 creates an Inter-Council Review Board composed of the Ministers or their designated Deputy Ministers who are members of the sectoral planning councils under Sections 13, 14, 15, 16, 17 and 18, and chaired by the Director-General of Science and Technology.
The Inter-Council Review Board’s main function is to review:
- The plans of the sectoral planning councils, and
- The National Science and Technology Plan.
The Inter-Council Review Board is assisted by the Planning and Evaluation Service.
Section 13 provides for five (5) sectoral planning councils:
- Philippine Council for Industry and Energy Research and Development (industry, energy, and mineral resources)
- Philippine Council for Health Research and Development (health)
- Philippine Council for Agriculture, Forestry and Natural Resources Research and Development (agriculture and forestry resources)
- Philippine Council for Aquatic and Marine Research and Development (aquatic and marine resources)
- Philippine Council for Advanced Science and Technology Research and Development (advanced science and technology)
Section 13 assigns each council, within its sector, responsibility for:
- Formulation of strategies, policies, plans, programs and projects for science and technology development
- Programming and allocation of government and external funds for research and development
- Monitoring of research and development projects
- Generation of external funds
Section 13 provides that each council has a secretariat headed by an Executive Director appointed by the President upon recommendation of the Director-General.

Sector council composition and terms

Section 14 reorganizes the Philippine Council for Industry and Energy Research and Development under administrative supervision of the Authority, and sets membership as:
- Director-General as Chairman
- Eight (8) members including:
  - Minister of Trade and Industry
  - Minister of Transportation and Communications
  - Minister of Public Works and Highways
  - Executive Director of the Council Secretariat
  - Four (4) private sector representatives
- The Ministers may designate Deputy Ministers.
The private sector representatives are chief executive officers or acknowledged leaders in their professions, appointed by the President in their personal capacity upon recommendation of the Director-General.
Section 14 sets the term for members as two (2) years, with special rules for the tenure of the members first appointed:
- Some are fixed as one (1) year and others as two (2) years, as fixed in their respective appointments.
Section 14 requires members to serve until successors are duly appointed and qualified.
Section 14 provides that appointment to any vacancy is by the President for the unexpired portion of the predecessor’s term.
Sections 15 to 18 follow comparable structural rules (Chairman as Director-General, council under administrative supervision of the Authority, appointment by the President upon recommendation of the Director-General in personal capacity, two (2) year terms, and vacancy appointments for the unexpired portion), with these specific compositions:
- Section 15: Philippine Council for Agriculture and Forestry Research and Development includes Ministers of Agriculture and Food; Minister of Natural Resources; Chancellor of the University of the Philippines at Los Banos; Administrator of the National Food Authority; Executive Director of the Council Secretariat; and three (3) private sector representatives in agriculture or forestry.
- Section 16: Philippine Council for Health Research and Development includes Minister of Health (or designated Deputy Minister); Chancellor of the University of the Philippines Health Services Center; Executive Director of the National Nutrition Council; Executive Director of the Council Secretariat; and four (4) private sector representatives in health.
- Section 17: Philippine Council for Aquatic and Marine Research and Development includes Ministers of Agriculture and Food; Minister of Natural Resources; Executive Director of the Council Secretariat; two (2) representatives from academic/research institutions; and three (3) private sector representatives in aquaculture or marine research or development.
- Section 18: Philippine Council for Advanced Science and Technology Research and Development includes Minister of Education, Culture and Sports (or designated Deputy Minister); President of the University of the Philippines System; two (2) representatives from the government sector; and four (4) representatives from the private sector in advanced science research.

Institutes, functions, and internal divisions

Section 19 provides that the Authority has line-in-character Institutes including:
- Industrial Technology Development Institute
- Philippine Nuclear Research Institute
- Food and Nutrition Research Institute
- Forest Products Research and Development Institute
- Philippine Textile Research Institute
- Advanced Science and Technology Institute
- Science Education Institute
- Science and Technology Information Institute
- Technology Application and Promotion Institute
Section 20 creates the Industrial Technology Development Institute and assigns functions including applied research and development for industrial manufacturing, mineral processing, and energy; transfer of research results to end-users; technical services (including standards, analytical and calibration services mandated by law or needed by industry); and training and technical advisory services to industry clientele.
Section 20 heads the Industrial Technology Development Institute with a Director appointed by the President upon recommendation of the Director-General, assisted by one or more Deputy Directors as necessary, and sets divisions including:
- Chemicals and Minerals; Food Processing; Fuels and Energy; Material Science; Microbiology and Genetics; Electronics and Process Control; Environmental; Rural Technology; Economics; and Standards and Testing.
Section 21 reorganizes the Philippine Nuclear Research Institute (formerly the Philippine Atomic Energy Commission) and grants functions including research on radiation and nuclear applications; transfer of research results with technical extension and training; operation and maintenance of nuclear research reactors and radiation facilities; and licensing and regulating activities relative to production, transfer, and utilization of nuclear and radioactive substances.
Section 21 provides internal divisions for the Philippine Nuclear Research Institute:
- Atomic Research
- Nuclear Services and Training
- Nuclear Regulations, Licensing, and Safeguards
Sections 22 to 28 establish or reorganize the remaining institutes and state their functions, including:
- Section 22: Food Nutrition Research Institute functions include defining nutritional status and malnutrition causes/effects; recommending policy options and programs to address malnutrition; and disseminating research findings and recommendations to relevant end-users, with divisions including Nutrition Standard and Management; Bio-Medical Nutrition; Nutrition Intervention Modelling and Assessment; and Communication and Dissemination Services.
- Section 23: Forest Products Research and Development Institute functions include applied research and development for secondary and tertiary processing to improve utility value of wood and other forest products; transfer to end-users or via linkage units; and technical services and training programs.
- Section 24: Philippine Textile Research Institute functions include applied research and development for the textile industry; transfer to end-users or via linkage units; technical services and training programs, with divisions for Research and Development and Technical Services.
- Section 25: Advanced Science and Technology Institute functions include long-term research to strengthen and modernize science and technology infrastructure; research and development in advanced fields including biotechnology and microelectronics; and intensive activities in computer and information technologies.
- Section 26: Science Education Institute functions include science education and training; administering scholarships, awards and grants; science and technology manpower development; and formulating plans for science and technology education and training in coordination with the Ministry of Education, Culture and Sports, and other institutions of learning, with divisions for Scholarship and Training; Science and Technology Manpower Assessment; and Science and Technology Education.
- Section 27: Science and Technology Information Institute functions include establishing science and technology databank and library; disseminating information; and training on science and technology information.
- Section 28: Technology Application and Promotion Institute (TAPI) primarily promotes commercialization and markets services of other operating units, and functions include contract research at pilot plant and semi-commercial stage; technical consultancy including engineering design services and patenting and licensing services; and grants and/or venture-financing for new and/or emerging projects.

Geographical presence and international offices

Section 31 authorizes the Authority to establish, operate, and maintain a Regional Office whenever appropriate in each administrative region of the country.
Each Regional Office is headed by a Regional Director who reports to, and is subject to the supervision of, the Deputy Director-General for Regional Operations.
Section 31 requires Regional Offices to implement Authority laws, rules, regulations, policies, plans, programs and projects in the administrative region.
Regional Offices must provide efficient and effective services to the people, coordinate with regional offices of other ministries/agencies, and coordinate with local government units.
Section 32 authorizes the Authority to have offices and representatives in other countries where presence is necessary, subject to approval of the President for each.

Special reorganized scientific agencies

Section 29 reorganizes the Philippine Atmospheric, Geophysical and Astronomical Services Administration and assigns functions including maintaining a nationwide network for weather observation and forecasting; observation and data processing for agriculture, commerce, and industry; studies of geophysical and astronomical phenomena essential to safety and welfare; research on typhoon structure and measures for moderation; and linkages with scientific organizations abroad for exchange of information and cooperation.
Section 29 heads the reorganized Administration with a Director appointed by the President upon recommendation of the Director-General, assisted by one or more Deputy Directors as necessary.
Section 30 reorganizes the Philippine Institute of Volcanology and Seismology and assigns functions including predicting volcanic eruptions and earthquakes and their geotectonic phenomena; determining how eruptions/earthquakes occur and likely affected areas; exploiting positive aspects of volcanic terrain for socio-economic development; generating data for forecasting; formulating disaster preparedness plans; and mitigating hazards through detection, forecast, and warning systems.
Section 30 heads the Institute with a Director appointed by the President upon recommendation of the Director-General, assisted by one or more Deputy Directors as necessary.

Attached agencies and transfers

Section 33 attaches these agencies to the Authority:
- Philippine National Science Society (formerly National Research Council of the Philippines)
- National Academy of Science and Technology
- Philippine Science High School
Section 34 transfers the Metals Industry Research and Development Center from the Ministry of Trade and Industry to the Authority as a separate unit attached thereto, subject to a memorandum of agreement defining relationship with the Ministry of Trade and Industry and access to equipment and resources, with investment and trade promotion aspects remaining functions of the Ministry of Trade and Industry in cooperation with the Authority.
Section 34 similarly transfers the Philippine Textile Research Institute from the Ministry of Trade and Industry to the Authority as a separate attached unit, subject to a memorandum of agreement defining relationship and access to equipment and resources, with investment and trade promotion aspects remaining functions of the Ministry of Trade and Industry in cooperation with the Authority.
Section 34 requires that these subsections (a) and (b) comply with Section 36 (e).

Abolition of agencies and separation/hold-over rules

Section 35 abolishes the following agencies, with disposition and personnel rules:
- Section 35(a): Philippine Council for Agriculture and Resources Research and Development, with appropriations, funds, records, equipment, facilities, chose in actions, rights, other assets, and personnel transferred to the Philippine Council for Agriculture and Forestry Research and Development; liabilities treated under the Government Auditing Code and other pertinent laws; personnel continues in hold-over capacity until separated under Executive Order No. 17 (1986) or Article III of the Freedom Constitution; personnel not included in the Authority’s new position structure and staffing pattern or not reappointed is deemed separated and entitled to benefits under the second paragraph of Section 37.
- Section 35(b): National Research Council of the Philippines, abolishing the Council created under Executive Order No. 784.
- Section 35(c): Philippine Invention Development Institute, with appropriations, funds, records, equipment, facilities, chose in actions, rights, other assets, personnel, and liabilities transferred to TAPI in accordance with Section 35(a).
- Section 35(d): Science Promotions Institute, with appropriations, funds, records, equipment, facilities, chose in actions, rights, other assets, personnel, and liabilities transferred to the Science and Technology Information Institute (STII) and the Science Education Institute (SEI) in accordance with Section 35(a).
- Section 35(e): National Institute of Science and Technology, with resources and personnel transferred to the Industrial Technology Development Institute in accordance with Section 35(a).
- Section 35(f): Materials Science Research Institute, with resources and personnel transferred to the Industrial Technology Development Institute in accordance with Section 35(a).
- Section 35(g): Special Project Service, with resources and personnel transferred to the Planning and Evaluation Service in accordance with Section 35(a).
Section 36 sets transitory rules requiring transfer to include functions, appropriations, funds, records, equipment, facilities, chose in action, rights, other assets, liabilities (if any), and necessary personnel, with personnel continuing in hold-over capacity and receiving salaries and benefits unless separated under Executive Order No. 17 (1986) or Article III of the Freedom Constitution.
Section 36(a), (b), (c), (d), (e), and (f) provide detailed outcomes on reverting funds to the General Fund, allocating records/equipment/assets to appropriate units by determination of the Director-General, and treating liabilities under the Government Auditing Code and other pertinent laws and rules.
Section 37 provides that upon approval, officers and employees continue in hold-over capacity, and the new position structure and staffing pattern must be approved and prescribed by the Director-General within one hundred twenty (120) days from approval.
Section 37 states that authorized positions created shall be filled with regular appointments by the Director-General or by the President, as the case may be.
Section 37 sets the replacement/separation consequence:
- Incumbents whose positions are not included or not reappointed are deemed separated.
- Those separated receive retirement benefits under existing laws, rules and regulations.
- Others are paid the equivalent of one-month basic salary for every year of service, or fraction thereof, computed on the basis of the highest salary received, but capped so that payment shall in no case exceed the equivalent of 12 months salary.
Section 37 bars judicial and administrative intervention: no court or administrative body may issue any writ or preliminary injunction or restraining order to enjoin the separation/replacement of any officer or employee affected under this Executive Order.

Performance evaluation and creditor notice

Section 38 requires the Director-General to formulate and enforce a system measuring and evaluating Authority performance periodically and objectively.
Section 38 requires submission of the performance evaluation system annually to the President.
Section 39 requires creditor notice or consent before implementing any reorganizational change if such change is of substance or materially prejudices third persons with rights recognized by law or contract such that notice to or consent of creditors is required under agreements with creditors.

Nomenclature, change control, funding, and issuance authority

Section 40 provides that if a new Constitution adopts a presidential form of government, the Authority becomes the Department of Science and Technology, and the titles change:
- Director-General → Secretary
- Deputy Director General → Undersecretary
- Assistant Director-General → Assistant Secretary.
Section 41 prohibits changes in the prescribed reorganization unless there is prior approval of the President for promoting efficiency and effectiveness in public service delivery.
Section 42 provides that funds needed to carry out the Executive Order provisions shall be taken from funds available in the Authority.
Section 43 requires the Director-General to issue rules, regulations, and other issuances necessary to ensure effective implementation.

Separability and repealing authority

Section 44 provides separability: unconstitutional portions do not nullify other portions if the remaining portions can subsist and be given effect in their entirety.
Section 45 repeals or modifies all inconsistent laws, ordinances, rules and regulations, other issuances, or parts thereof.