Republic of the Philippines t
HOUSE OF REPRESENTATIVES fz? ®
Quezon City {

FIFTEENTH CONGRESS
Third Regular Session

nousk BHL No._ 6725

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Introduced by Representative ANGELO B. PALMONES:

EXPLANATORY NOTE

Space science combines intense scientific discovery with entrepreneurship, inspiration and
excitement, It has served as driver for the development of technologies that have changed the world
resulting to widespread economic benefits, from the most sensitive detectors of light and radio waves
to the fastest supercomputers and the intemet The excitement that the field brings has inspired the
youth to choose careers in science and technology (S&T) contributing to the “knowledge economy”
of nations, Yet, with its unparalleled technological and cultural dimensions, space science has an
enormous potential to be a tool for furthering economic growth in developing nations, like the
Philippines.

‘A national aeronautical and space science program is NOT a monopoly of developed countries, It
stands more as a trademark of a government, whether rich or poor, that has big dreams for its people.
Years after 1945, when the Chinese civil war devastated the country and had led to secession of a
Nationalist goverment to Taiwan in 1949, even while recovering from an underdeveloped market
economy, China drafted its “7welve-Year-Plan for Chinese Aerospace”. The first Chinese-crewed
flight program began several decades later culminating in the successful 2003 flight aboard Shenzhou
5. This achievement has made China the third country to independently send humans into outer
space. India, too, is poised to become the second country after the US to send humans to the Moon by
2020. .

Even the rest of our Asian neighbors, Indonesia, Malaysia, Vietnam and Thailand, have advanced and
centralized space agencies of their own. Established in 1980, Bangladesh has Space Research and
Remote Sensing Organization (SPARRSO) that works closely with JAXA, NASA and the ESA. Sri
‘Lanka has its own aeronautics and space agency whose immediate goal is to construct and launch two
satellites by 2015 after signing an exclusive partnership agreement with China's state-owned China
Great Wall Industry Corporation (CGWIC) for the design, manufacturing and launching of the
satellites

It is the vision by our very own Filipino astronomers, here and abroad, to have a self-reliant and
‘coherent space program that will play a pivotal role in national economic and social development. The
gateway of creating the historic PHILIPPINE SPACE AGENCY is embodied in this bill. It will
usher the development of a medium-term S&T plan called the “Philippine Space Science
Roadmap”—-the framework for executing ambitious yet highly feasible projects for space education,


protection of national territory, natural resources accounting, environmental management, information
and communication capacity-building, energy-production optimization, weather prediction and
climate change monitoring, disaster management using satellite-based information all designed to
spur sustainable development and uplift our people out of poverty.

‘The Office of Space Innovation and Cooperation (OSSIC) of Rizal Technological University, the first
and only university that offers Astronomy program in the country, echoes the urgency for a space
agency that will lead the telecommunication sector to develop and launch the very first Philippine-
made and launched satellite that shall be replacing Agila-2, Named after the Philippine eagle, Agila-2
is the first and only Filipino-owned satellite designed and built by French, and launched to space by
Chinese scientists and engineers on Chinese soil. It has provided internet access downlink capabilities
of up to 15 Mbit/s to every Filipino. ABS-CBN Corporation has been using the satellite's C-band
capacity for its signal distribution and news gathering. But, Agila-2 is old and is set to be
decommissioned in 2013. A more powerful upgraded communication satellite is needed within the
coming years

The creation of the Philippine Space Agency is a doable dream. Moreover, this space agency shall be
‘one that will inspire Filipino scientists and engineers who are in their mother land, and attract those
who have left, and together, we will bring them back to work again with and for the Filipino people.

In view of the foregoing, immediate approval of this measure is sought.

Approved,

ANGE\\O B. PALMONES
Represelfative, AGHAM Party-list


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

FIFTEENTH CONGRESS
Third Regular Session

nouge HILL No. 672 5

Introduced by Representative ANGELO B. PALMONES:

AN ACT
CREATING AND ESTABLISHING THE PHILIPPINE SPACE AGENCY (PSA) AND
DEFINE THE PURPOSE AND SCOPE OF ITS ACTIVITIES.

Be it enacted by the Senate and House of Representatives of the Philippines in Congress assembled:
SECTION 1. Short Title. This Act shall be known as the “Philippine Space Act of 2012”
SECTION 2. Declaration of Policy. It is the declared policy of the State to translate into practical

realities the following policies and mandates in the 1987 Constitution, namely

+ The protection of national territory of the Philippines as defined by Article 1 with paramount
consideration to sovereignty of the Filipino people (Article Il, Section 7),

+ The provision of support to developing science and technology that will foster patriotism and
nationalism and accelerate social progress (Article II, Section 17).

+ The transfer and adaptation of technology for the national benefit (Article XIV, Section 12)

+ The recognition of the indispensable role of the private sector with the encouragement of
private enterprise and provision of incentives to needed investments (Article Il, Section 20).

+ The vital role of communication and information in nation-building (Article II, Section 24).
In this light, the Congress declares that to further national development adequate provisions will be
made for the furtherance of the peaceful and scientific application of aeronautical and space activities,

‘The support will translate to the Filipino contributions towards expanding human knowledge of the
phenomena in the atmosphere and space benefiting all mankind.

SECTION 3. Definition of Terms. ‘The definition of term used in this Act means any of the
following:

+ “Space Science” or “Space S&T” means scientific principles and their applications of space
science and engineering,

‘+ “Space exploitation” means any one of the following:


: research activities and technological development relevant to design,
manufacturing, launching, and operation of space objects, or
: activities for the use, exploration, and promotion of outer space.

Satellites” including flying objects to be launched beyond Earth orbit and artificial objects to
be placed on celestial bodies. It also includes the rockets to be used for the launch.

Space accident” means any accident causing loss of life, personal injury or damage to
property due to the fall, collision, or explosion of space objects and/or similar situations.

+ The term “Fundamental Research & Development” means research and development that fall
Within any of the following items

+ common research and development conceming science and technology;

+ research and development concerning science and technology requiring facilities and
equipment that are deemed, due to excessive cost, not appropriate to be installed
redundantly at national experimental research institutes or incorporated
administrative agencies

+ integrated research and development conceming science and technology requiring the
collaboration of multiple areas.

+ "Aeronautical and space activities" means
+ research and development into flight within and outside the earth's atmosphere;
+ development, construction, testing, and operation for research purposes of
‘aeronautical and space vehicles, and
+ other activities as may be required for the exploration of space.

SECTION 4. Establishment of the Philippine Space Commission (PSC), ‘The Philippine Space
Commission, hereinafter referred to as the Commission is hereby created and established with the
following objectives

'* to promote the peaceful use and exploitation of space and advance the knowledge of space
through research,

+ to help promote national security,

+ to ensure that space S&T shall provide economic benefits for the nation and help raise the
standard of living of Fi

+ to cooperate with other institutions in the country, or in other nations or groups of nations for
work to be done in pursuant to this Act,

= to expand and utilize scientific and engineering resources in close cooperation with and
among different institutions in the Philippines in order to avoid duplication of effort, facilities,
and equipment.

‘The Commission shall be an independent and autonomous body and shall have the same status as that
‘of @ national government agency. It shall be attached to the Office of the President,

‘The Commission shall be organized within sixty (60) days from the effectivity of this Act.

SECTION 8. Functions of the Commission. In carrying out its objectives, the Commission shall

+ adopt, alter, and use a corporate seal;


* assist the State coordinate space policies and relevant legislation;

+ perform academic or fundamental R&D relating to space science and aeronautics in
collaboration with universities and industries or otherwise, within the country, with other
nations or group of nations;

+ plan, direct, manage and implement programs and projects relating to scientific or industrial
space research and development and the application of space technology,

*+ promote the transfer and diffusion of space technology to and throughout Philippine industry,
+ encourage commercial exploitation of space capabilities, technology, facilities and systems,

+ design, develop and construct satellites, facilities and equipment necessary thereof, as well as
Jaunch, track and operate the satellites which may be done in collaboration with other entities,
government or private,

+ develop, construct, acquire, manage, maintain and operate space research and development
facilities and systems,

+ assist departments, boards and agencies of the State to use and to market space technology;

+ seek and/or provide grants and contributions in support of programs or projects relating to
scientific or industrial space research and development and the application of space
technology;

*+ cooperate with the space and space-related agencies of other countries in the peaceful use and
development of space,

+ provide services (training, etc.) and facilities for the use by entities conducting academic
research, research and development relating to space science;

+ disseminate of results of the activities referred to in each of the preceding items, and promote
utilization thereof, except when information is deemed confidential for national welfare and
security and for the protection of intellectual property rights;

+ license, sell or otherwise make available any patent, copyright, industrial design, trade-mark,
trade secret or other like property right controlled;

* enter into contracts, memoranda of understanding or other arrangements in the name of the
State or the Commission;

+ take hold of money, securities or other personal or movable property by gift or bequest and
expend, administer or dispose of any such money, securities or property subject to the terms,
if any, on which the gift or bequest was made in such manner as shall best promote the
‘Commission’s objectives, and

+ do all such things as are necessary or incidental to the attainment of the objectives of the
Commission

SECTION 6. Office. The Commission shall have its main office in Manila.


SECTION 7. The Commission. The Commission shall be composed of a Chairman and two other
‘Commissioners. The Commissioners shall be natural-born citizens of the Philippines and all shall
have a doctorate degrees in either Engineering, Physics, Mathematics, Astronomy or other space
sciences. The Chairman shall also act as the Executive Officer of the Commission,

+ Chairman of the Commission. The Chairman being the chief executive officer of the
‘Commission shall have control and supervision over the work, officers and employees of the
‘Commission. He is also authorized to represent the Commission in all transactions of the
agency and shall further be authorized to enter into agreements with other agencies of
government and also with intemational organizations. shall also be authorized to receive
‘donations for and in behalf of the Commission. He shall appoint other officers and employees
of the Commission except the other two Commissioners. With the recommendation of the
Secretary of the Department of Science & Technology, the President of the Republic of the
Philippines shall appoint the Chairman of the Commission.

+ Commissioners. ‘The other two Commissioners shall assist the Chairman manage the
activities of the agency as assigned by the Chairman, The seniority of the other two
Commissioners shall be established by the Chairman. In the event of the absence or
incapacity of the Chairman or a vacancy exists in that office, the more senior of the
Commissioners shall act as Chairman but he/she may only act as Chairman for a period not
exceeding ninety (90) days. The two Commissioners shall likewise be appointed by the
President of the Philippines upon recommendation by the Secretary of the Department of
‘Science and Technology.

* Offices under the Commission. The Commission, headed by the Chairman shall establish
offices and personnel of the Commission. The organizational set-up of the Commission shall
first be approved by the Office of the President. The Chairman shall appoint the personnel of
the Commission

+ The remuneration, allowances, subsidies and other benefits for employees shall be in
accordance with a system approved by the Civil Service Commission and with the
concurrence with the Department of Budget Management,

SECTION 8. Disqualification of a Commissioner. Any person falling under either of the following
items shall not become a Commissioner of the agency.

+ Any person engaged in the business of manufacturing or selling goods or contracting
construction, and have close interests with the Commission in business deals or, if such
persons are juridical persons, their executives (including those who have authority or
controlling power which is equivalent to or higher than that of such executives, regardless of
their ttle), or

+ Any executives of'a business organization referred to in the preceding item (including those
‘who have authority or controlling power which is equivalent to or higher than that of such
executives, regardless of their title)

SECTION 9 . Astronauts. The Commission may appoint and employ astronauts in positions in the
ageney and may, with the approval of the Commission en bane, establish the terms and conditions of
their employment. Their remuneration shall be set by the Commission with the concurrence of the
Department of Budget and Management.

SECTION 10. Duty of Confidentiality of Commissioners and Employees. The Commissioners and
employees of the agency shall not divulge any confidential information obtained in the course of the
performance of their duties. The same confidentiality preservation duty shall apply after their
retirement from the agency.


SECTION 11. Characteristics of Academic Research. The Secretary of the Department of Science
and Technology may set or modify the “Philippine Space Science Roadmap” in SECTION 16 (limited
only to the portions that relate to the fundamental R&D), with consideration for respect for the
autonomy of researchers,

SECTION 12. Public-Private Partnerships for Space Exploitation. The Commission shall encourage
the engagement into private-public partnerships (PPPs), and upon recommendation to and approval by
the Office of the President of the Republic of the Philippines, incentives to needed investments, eg,
tax exemptions, tariff cuts, etc., shall be provided. The agency may issue investment bonds for capital
contributions for the development and marketing of products and processes accrued from aeronautical
and space activities.

SECTION 13. Advisory Board The Agency shall have an advisory board composed of the
following:

+ Secretary of the Department of Science and Technology;
+ Secretary of the Department of National Defense;

+ Secretary of the Department of Transportation and Communications,
+ Secretary of the Department of Environment and Natural Resources;

+ Secretary of the Department of Agriculture,

+ Secretary of the Department of Education;

* Commissioner of the Commission of Higher Education (CHED)

+ Secretary of the Department of Foreign Affairs;

+ Secretary of the Department of Trade and Industry;

+ Secretary of the National Economic and Development Authority;

+ Representative from the Senate Committee on Science & Technology;

+ Representative from the Lower House Committee on Science & Technology,

he representatives shall serve for a term of six (6) years without reappointment unless their
epresentation is withdrawn by the sector they represent. Appointment to any vacancy shall be only
for the unexpired term of the predecessor. The Secretary of the Department of Science and
‘Technology shall serve as the Chairman of the Advisory Board.

Remuneration of the members of the Advisory Board shall be determined by the by the Office of the
President of the Republic of the Philippines.

SECTION 14. Meetings of the Advisory Board. ‘The Board shall meet at least four (4) times a year at
such times and places as the Advisory Board may determine. The President acting as the Chairperson
shall convene the meeting of the Board.


SECTION 15. Philippine Space Science Roadmap. The Commission shall, within six (6) months
from the effectivity of this Act, formulate the “Philippine Space Science Roadmap” to be submitted as
‘a Medium-Term S&T Plan for the country. The Roadmap shall serve as basis for the planning,
research and development, education, extension, and monitoring of activities in pursuit of the
objectives of the Agency.

The Roadmap shall be approved by the Advisory Board and reviewed every three (3) years, or as may
be deemed necessary

SECTION 16. Annual Report. ‘The Commission shall submit to the President and to both Houses of
Congress, not later than March 30 of every year following the effectivity of this Act, a report giving a
detailed account of the status of the implementation of this Act, a progress report on the
implementation of the Philippine Space Science Roadmap and recommended legislation, where
applicable and necessary.

SECTION 17. Appropriations. ‘The sum of Five Hundred Million Pesos (Php 500,000,000.00) is
hereby appropriated as initial operating fund. Thereafter, the amount necessary to effectively carry out
the provisions of this Act shall be included in the annual General Appropriations Act.

SECTION 18, Funds of Agency. The funds of the Commission shall consist of:
+ the annual General Appropriation for the agency,
+ fees, royalties or other revenue obtained in terms of this Act;
+ donations or contributions received by the agency; and
+ revenue accruing to the agency from any other source.
‘The Commission must utilize its funds to deftay the expenses incurred by the agency in the

performance of its functions. Money received by way of donation or contribution must be utilized in
‘accordance with the conditions imposed by the donor or contributor concemed,

SECTION 19. Implementing Rules and Regulations. Within ninety (90) days after the approval of
this Act, the Commission shall, upon consultation from its Advisory Board promulgate the
implementing rules and regulations of this Act, including but not limited to IRRs on capital
investments, launching satellites, special arrangement for consigned launch disposition of reserved
funds, insurance for space accidents, labor practices, etc. Failure to issue rules and regulations shall
not in any manner affect the executory nature of the provisions of this Act.

SECTION 20, Separability Clause If for any reason any section or provision of this Act is declared
‘as unconstitutional or invalid, the other sections or provisions hereof shall not be affected thereby.

SECTION 21. Repealing Clause. All laws, ordinances, rules and regulations, and other issuances or
parts thereof which are inconsistent with this Act are hereby repealed or modified accordingly.

SECTION 22. Effectivity. This Act shall take effect fifteen (15) days after the completion of its
Publication in the Official Gazette or in at least two (2) national newspapers of general circulation