ee REPRESEN.
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Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

EIGHTEENTH CONGRESS
First Regular Session

2108
HOUSE BILL NO.

Introduced by Rep. ERICO ARISTOTLE C. AUMENTADO.

HISTORICAL BACKGROUND

This bill seeks to strengthen the National Research Council of the Philippine Islands (NRCP)
For the Promotion of Research Work along Scientific Lines”. Act 4125 was enacted in the
Ninth (9") Legislature in 1933 patterned after that of the United States, an attempt to respond
to problems related to development and defense being faced then by the Philippines. For this,
NRCP became the first National Research Council in Asia.

At the onset, NRCP has effectively served the purpose of the Commonwealth Government in
providing administrative support through policy advice and research along scientific lines, It
enjoyed prominence not only for its illustrious members, but also because of its influence to
the President and legislature through its usefull outputs, Other than being one of the very few
government institutions established with a corporate character in the early years of the
Commonwealth, NRCP to perform its role in promoting research and policy advisory. For
instance, it participated in the drafting of the science provision during the 1935 Constitutional
Assembly and in providing legislative advice for the creation of agencies such as the
Philippine Institute of Volcanology (PhilVocs) and the National Science Development Board,
the predecessor of the Department of Science and Technology (DOST), to name a few,
Moreover, numerous pioneering researches covering various fields of science were also
Produced by the NRCP that became relevant to the developmental concerns of the country
during that time.

For 85 years, the charter of the NRCP has remained as a collegial body and was primarily
engaged in supporting research of a more basic and fundamental nature as provided by
Section 15 of EO No, 784. “In 1958, NRCP was attached to the National Science
Development Board (NSDB) in the 1960's which later became the Department of Science
and Technology in 1987. In the last 40 years, the agency has been overcome by events and by
its administrative structural nature that has diminished its capacity to expand or widen its
reach to the countryside and perform emerging and vital functions that are not covered by
other research institutions in the country.


For more than a decade now, its financial resources have stagnated as shown by the agency’s
Grants-in-Aid (GIA) budget for 2017 and 2018, which stood t P 15 million fr lower, if not the
lowest among the national research councils in the ASEAN.

NRCP’s desire to provide higher funds to capacitate more Filipinos in the regions to enable
them to conduct research and be researchers or scientists themselves has remained unrealized.
This has continued to widen the disparity in human development between the National
Capital Region (NCR) and that of the other regions. Based on the data of the NRCP, most
member-researchers in the country are from the NCR and the Calabarzon area (60%), while
the research projects are majority performed by researchers from the aforesaid regions. This
in effect has decelerated the impact of the inclusive development program of the national
government.

In order to better respond to the growing needs of the country in promoting basic and
evidenced or science-based policy research, enhance human resource capability in research
particularly in the regions and expanding research role in the ASEAN and in the international
front. It is with this reason, that it is imperative that NRCP’s mandate need to be strengthened
and expanded with the following new functions and features to wit: Shall serve as the
clearing house in basic research; and shall provide the official listing and accreditation of
researches nationwide, The NRCP shall also promote and conduct capacity building/training
on research to universities and colleges in the country, in the regions, collate and collaborate
in the conduct of researches with other national research councils and research institutes in
the ASEAN neighbors that will help enhance community understanding, facilitate knowledge
resource exchange and interdependence and define common interests towards the well-being
or security of the region. Active research engagements with similar research counterparts
outside the region are also being endeavored.

The NRCP shall also extend assistance to the legislature and local government units in
providing evidenced-based policy researches when needed, including matters pertaining to
defense or security within and alongside scientific lines.

In view of the above, the immediate passage of this bill is earnestly sought.

AUMENTADO.


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

EIGHTEENTH CONGRESS
First Regular Session
2108
HOUSE BILL NO.

Introduced by Rep. Erico Aristotle C. Aumentado

AN ACT STRENGTHENING THE NATIONAL RESEARCH COUNCIL OF THE
PHILIPPINES OF THE DEPARTMENT OF SCIENCE AND TECHNOLOGY
FOR THE PROMOTION OF RESEARCH WORK ALONG SCIENTIFIC
LINES AND APPROPRIATING FUNDS THEREFOR.

Be it enacted by the Senate and House of Representatives of the Philippines in Congress
assembled:

SECTION 1. Title. — This Act shall be known and cited as the “National Research
Council of the Philippines Act of 2018.”

SECTION 2. Declaration of Policy. ~ In consonance with the provisions of section
10, Article XIV of the Constitution, which provides that the State shall give priority to
research and development, it is hereby declared to be the policy of the state to promote
research and science or evidence- based policy in legislation and government
administration.

The State shall support the harmonization of national research agenda, including but
not limited to the National Integrated Basic Research Agenda (NIBRA) and the utilization
of research in the crafting of development plans in national and local governments that
will redound to progress and well-being of the people. It shall also endeavour to
decentralize research efforts that will expand opportunities for training and providing
budget available to researchers, scholars and scientists in the provinces that will
accelerate inclusive development. Empowering the researchers in the provinces will
harrow the disparity on the state of research between the National Capital Region (NCR)
and the provinces.

The State shall provide support for the creation of clearing house in basic and frontier
research, registry of researchers and scientists who are doing basic and frontier research,
This also includes the added role of NRCP to conduct impact assessment of researches,
and establishment of a Center for Research and Development (R & D), and of a Research
for Development (R for D) training in all the regions of the country.


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SECTION 3. Objectives. - The Council shall have the following purposes and

objectives:

(1) Stimulate and support research in the mathematical, physical and biological
sciences, engineering, agriculture, medicine, social sciences, humanities and the
arts, with the objective of increasing knowledge, starting studies of problems of
the national defense and security, and contributing in other ways to the public
welfare;

(2) Survey the larger possibilities of sciences, to formulate comprehensive projects of
research including but not limited to the National Integrated Basic Research
Agenda (NIBRA), and develop effective means of utilizing the scientific and
technical resources of the country for dealing with these projects;

(3) Promote cooperation in research in all the regions of the country and abroad in
order to secure concentration of effort, instill ethical standards, minimize
duplication, and stimulate progress; but in all cooperative undertakings to give
encouragement to individual initiative as fundamentally important to tie
advancement of science;

(4) Gather and collate scientific and technical information at home and abroad, in
cooperation with governmental and other agencies and to render such information
available to duly accredited persons;

(5) Promote the continuing total development of the Filipino scientist and researcher
as a professional and as a member of the larger society:

(6) Serve as consultative body to government policy-makers in matters relating to
sciences for development, defense and security; and to provide a forum for
discussion and formulation of scientific plans and policies;

(7) Provide research - based recommendations to legislations and in the crafting of
laws or plans that are of national and local importance geared towards solving
problems of the country. Government institutions, agencies and instrumentalities
shall endeavor to incorporate or embed evidence- based research or studies in the
development and passage of laws within their jurisdiction. Corollary to this, the
Council shall study and monitor the development of research or evidenced-based
policies in the government;

(8) Establish a custodial/repository for basic and frontier research; and become the
registry and certifying agency for basic and frontier researchers;

(9) Contribute in providing support mechanism and capacitate the research
capabilities of Higher Educational Institutions (HEIs) / State Universities and
Colleges (SUCs), government agencies, and local government units;

(10) Investigate, examine, experiment, survey and report any subject of importance as
called upon by any branch or Department of the Government, Regional
Development Councils (RDC) and by the various Local Government Units
(LGUs).


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SECTION 4. Scope. ~ The law shall have local and national application involving
research for development in all the regions of the country.

ECTION 5. Definition of Terms:

a. Accreditation ~ is the process in which an authoritative body formally recognizes
the competence of researchers to conduct research and other related activities
based on the prescribed criteria, guidelines and standards defined by the Council.

b. Clearing House ~ an agency or organization that collects and distributes
something specially information.

©. Research — is systematic study directed toward greater knowledge or
understanding of the fundamental aspects of phenomena and of observable facts
without specific applications towards processes or products in mind. Also called
pure research or fundamental research, is scientific research aimed to improve
scientific theories for improved understanding or prediction of natural or other
phenomena, Basic research can also be defined as creative work undertaken to
increase the stock knowledge, including knowledge of man, culture and society.

d. Repository — a place in which public records are maintained and preserved under
the custody and control of a government office.

e. Registry — is a record of document for registration entered in the appropriate
registry book.

f. Evidence-based ~ supported by a large amount of scientific research.
8. Capacity building — planned development of (or increase in) knowledge, output

rate, management, skills, and other capabilities of an organization through
acquisition, incentives, technology, and/or training.

h. Human development ~ is defined as the process of enlarging people's choices,
freedoms and opportunities and improving their well-being. A measurement of
achievements by humans through advancement of knowledge, biological changes,
habit formation or other criteria that displays changes of standard of living over
time.

i, Interdisciplinary ~ combining or involving two or more academic discipline or
field of study.

Frontier Research — an undeveloped field of study; a topic inviting research and
development; usually addresses highly controversial issues in the scientific
community in the area being explored, deals with hard to answer queries
employing normal methodological approaches, employs methodologies and
concepts atypical for concemed field, takes unexpected findings challenging
dominant paradigm used, focuses on issues where resolution is critical for
confirmation or rebuttal of the prevailing paradigm, and involves research with
extreme degree of uncertainty or failure (high cost, high risk of failure)


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k. National Research ~ refers to inclusive quality research and innovation programs
that involve the various disciplines in the sciences and humanities; concerned
with national or facets of national concern, and entailing multidisciplinary and
interdisciplinary research and training. It aims to achieve research impact,
academic impact, as well as societal and economic impact.

k.1. Academie impact refers to the contribution that quality research makes to
developments and advances, across and within disciplines, such as advances in
knowledge, method, theory, and application.

k.2. Societal and economic impaet refers to the contribution that quality
research makes to society and the economy, beneficial to individuals, their
way of life, and to national development.

SECTION 6. Powers. — The Council shall have the following powers:

(1) Make its own organization, be incorporated, constituted, and declared a corporate
body by the name of National Research Council of the Philippines:

(2) Adopt, alter and use a corporate seal;

(3) Provide implementing rules and regulations to determine its membership, fill
vacancies created by death, resignation or otherwise; shall hold an annual meeting
at such place and time as may be determined by the Board; to provide for the
election of the Governing Board members, division into classes, and other matters
needful or usual in such institution;

(4) Collect, receive and maintain a fund or funds from government appropriations and
from donations, grants, gifts, bequests, loans from domestic and foreign sources,
and to apply the income and principal thereof to the promotion of its aims and
purposes;

(5) Own, manage and hold such real and personal property as shall be necessary for
the Council’s purposes;

(6) Corollary to its purposes and objectives, to extend financial assistance to, and
enter into contracts of every kind and for any lawful purpose, with any person,
firm, association or corporation, domestic or foreign, or others in which it has a
lawful interest;

(7) Shall have the authority to invest its funds in such undertaking as it may deem
beneficial or necessary to carry out its objectives;

(8) Conduct joint international studies with other research councils or research
institutions;

(9) Extend research support along multi-disciplinal, inter-disciplinal and trans-
disciplinal scientific lines in the conduct of forecast studies along security,
defense, development, resiliency and disaster preparedness of the country.


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10) Investigate, examine experiment and report upon any subject of science or art,
whenever called upon by any department of the government.

SECTION 7. The Governing Board. — The affairs of the National Research Cou
shall be administered by a Governing Board (GB), as public officials, which shall consist
of two members ~ at — large, the Chairpersons of the Scientific Divisions, and the DOST
Secretary or his/her designate.

The officers of the National Research Council shall consist of a President, Vice-
President, a Corporate Secretary and a Treasurer. The President of the National Research
Council or in case of his absence or inability to act, the Vice-President shall be the Chief
Executive Officer of the Council and shall preside over the meetings of the Council and
of the Governing Board.

A majority of the members of the GB shall constitute a quorum for the transaction of
the business of the GB.

SECTION 8, Functions and Responsibilities of the Governing Board. — The
Governing shall have the following functions;

(1) Formulate and adopt policies and measures for the management and operation of
the Council including the admission of its members;

(2) Elect the President of the Council who shall come from among the elected
members of the Board;

(3) Approve the staffing pattern of the Council;

(4) Promulgate rules and regulations for the discharge of its powers and functions and
the internal operations of the Council; provided, that, the Chair of the GB shall
exercise the power to appoint, promote discipline or remove the personnel of the
Council;

(5) Manage the financial affairs of the Council and approve the annual budget of
receipt and expenditures of the Council according to its requirements;

(6) Monitor and review periodically the programs and projects of the Council; and

(7) Modify the number of divisions and the grouping of subjects to meet the changing
needs of science in the country.

SECTION 9. President of the Council, ~ The President of the Council shall be
elected the Governing Board annually and shall serve for one year, and may be reelected
for a maximum of three years. He shall be the executive officer of the Council and shall
receive honoraria as may be determined by the Governing Board; and shall have the
following powers and duties;

(1) Prepare, for the approval of the GB, the staffing pattern of the Council, which shall
include the determination of the qualifications, and fixing the number and


compensation of such officials and personnel as may be necessary for the proper
discharge of the function of the Council;

(2) Have control and supervision over the personnel, staff, operations and internal
administration of the Council in accordance with existing laws and rules and
regulations promulgated by the Governing Board;

(3) Recommend to the GB such policies and measures which deems necessary for the
effective exercise and discharge of the powers and responsibilities of the Council:
and

(4) Submit the annual report to the GB on the operations, the status of the programs
funded by, the financial condition of the Council, including a recommendation for its
budget for the ensuing year.

SECTION 10. Executive Director. ~ There shall be an Executive Director (ED) who
shall be appointed by the Governing Board and shall have the rank of a bureau
directorate, with a plamtilla position. The ED shall exercise administrative supervision
over the personnel, staff of the Council and shall be the primary implementer of the
policies and guidelines set by the GB.

SECTION 11. Research Fellows. — The Council is hereby authorized to engage its
member-researchers to conduct specialized studies and researches of the Council. Those
engaged by the Council shall be issued appointments as Researcher Fellows shall be
paid, as they are hereby authorized to be paid as honoraria determined by the Governing
Board.

SECTION 12. Endowment Fund. ~ An NRCP Endowment Fund shall be
established shall be self-sustaining and shall consist of contributions, donations, grants,
or loans from domestic and/or foreign sources, government subsidies and other income
aceruing from the operations of the Council. For the initial organizational and
operational requirements of the Council, there is hereby appropriated out of any fund in
the National Treasury not otherwise appropriated the sum of ONE BILLION PESOS
(Php 1,000,000,000.00). Hereafter, funding for the operational activities of the Council
shall be generated by the Council from earnings of this Fund.

In granting the endowment fund, the national government shall provide a 3-year
allocation beginning from the year of the approval of the law

The NRCP is hereby authorized and empowered to receive bequests and donations
hold the same in trust, to be applied by the said council in aid of scientific investigations,
examinations and experiments.

SECTION 13. Government Contribution to Research Funding, — There shall be
an not less than 10% of the Research and Development budget included in the annual
budget of the DOST as contribution in financing the research activities of the Council.
Other government agencies are hereby authorized to include in their respective annual
budget such necessary amounts as their contribution to the funding of certain research
activities of the Council. These contributions shall be managed under separate account.
The Council shall submit to the Secretary of DOST a program of work with budget

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estimates for each calendar year, not later than the 28" of February of the preceding year.

In order to pursue the defense and security research agenda of the country, the
Department of National Defense (DND) and other agencies with mandate to promote
public well-being, are authorized and empowered to allocate funds to the National
Research Council of the Philippines in the conduct of such researches along scientific
lines.

To ensure the availability of research funds in the local government units particularly
the provinces, cities and municipalities, a 1% allotment for research from its annual
budget shall be provided for such purpose in the utilization along the NIBRA and
Regional Development Council (RDC) Agenda, as such the LGU shall seek clearance
and review from the NRCP to guarantee equitable provision for research in the
countryside vis- a- vis Luzon, Visayas and Mindanao.

© SECTION 14. Regional Offices. — In order to decentralize research and
empower the capacity of the regions to perform policy researches, satellite
offices attached to the DOST shall be established in all regional areas. The
Regional Offices shall oversee the NRCP regional chapters which will be
established in order to address region-specific concerns and to promote a
science culture in the regions.

SECTION 15. Exemption from taxes. — Any provision of law to the contrary
notwithstanding, any donation, contribution, bequest, subsidy or financial aid which may
be made to the Council shall be exempt from taxes of any kind and shall constitute
allowable deductions in full from the income of the donors or grantors for income tax
purposes.

The Council, its assets, acquisitions, income and its operations and transactions shall
be exempt from any and all taxes, fees, charges, imports, licenses and assessments, direct
or indirect, imposed by the Republic of the Philippines or any of its political subdivision.
In carrying out its functions, and its purposes and powers provided in this Act, the
Council shall be exempt from the payment of all internal revenue taxes, fees, assessment
and other charges of the government.

SECTION 16. Tax Incentives. Expenses for research shall henceforth be deemed as
deductions from gross income within the contemplation of the National Internal Revenue
Code. Such expenses for research shall include, among others, that for research grants to
faculty members of universities conducting independent research or commissioned by
the private sector for business purposes.

All entities doing business in the Philippines in the field of research or those that use
new technology or research-based business activities shall be exempt from the payment
of income tax for a period of two (2) years from the time of the commencement of theit
research or technology-based business.

SECTION 17. Reporting Responsibility. — The National Research Council of the


Philippines shall submit regularly an annual to both Houses of Congress and to the
Office of the President, an accurate account of its work and activities during. the
corresponding fiscal year.

SECTION 18. Building Site. ~ The parcel of land presently occupied by the National
Research Council of the Philippines (NRCP), more particularly described and delineated
under Proclamation No. 376, Series of 1968, for building site and science community
site purposes, containing an area of fourteen thousand four hundred sixteen (14,416) sq
meters, is hereby permanently transferred to NRCP.

SECTION 19. Implementing Rules and Regulations (IRR). — The NRCP with
other concerned government departments, agencies and representatives mentioned in
Section 8 hereof shall within ninety (90) days from the effectivity of this Act issue the
necessary implementing rules and regulations of this Act.

SECTION 20. Repealing Clause. — Republic Act No. 4120, otherwise known as the
“An Act Creating a National Research Council of the Philippines Island for the
Promotion of Research Work Along Scientific Lines” is hereby repealed. All laws,
executive orders, rules and regulations or parts thereof inconsistent with the provisions
of this Act are hereby amended or repealed accordingly.

SECTION 21. Separability Clause. — Any provision or part of this Act declared
invalid or unconstitutional, the other provisions hereof which are not affected are thereby
repealed or modified accordingly.

SECTION 22. Effectivity Clause. — This Act shall take effect fifteen days after its
publication in the Official Gazette or in a national newspaper of general circulation,

Approved.