EXECUTIVE ORDER NO. 548
EXECUTIVE ORDER NO. 548 -
ESTABLISHING A TECHNOLOGY UTILIZATION SUPPORT SYSTEM AND PROVIDING
FUNDS THEREFOR AND FOR OTHER PURPOSES
WHEREAS,
the critical problem in the utilization of technology is the absence of
sufficient and financial support for the pre-investment and project
development activities necessary to implement the application of
technology;
WHEREAS, there is a need for system harnessing and organizing technical
expertise in government agencies and private industry, to support the
launching of projects particularly at the pre-investment stage;
WHEREAS, there are highly trained Filipino scientists and experts
abroad that can be utilized for local technology delivery under the
Balik-Scientist Program;
WHEREAS, there is a need to provide funding support to meet the
pre-investment requirements for projects applying improved
technologies;
WHEREAS, under Presidential Decree No. 1416, the President is given
continuing authority to reorganize the National Government.
NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the Philippines,
by virtue of the powers vested in me by the Constitution, and pursuant
to the authority vested in me by Presidential Decree No. 1416, do
hereby order and ordain:
Section 1. Technology Utilization Service Corps. —
There shall be created in the Technology Resource Center a Technology
Utilization Service Corps (hereinafter called the Corps) which shall
provide technical, managerial, financial and marketing expertise to
appliers and users of improved technologies at the pre-investment and
project development stages. The Corps shall:
(a)
Identify, establish, and maintain a roster of technology resource
experts from the government and private sectors, from within the
country and abroad, including Filipino scientists under the
Balik-Scientists Program of the National Science Development Board;
(b) Identify,
mobilize, and utilize such technology resource experts to assist
technology users in undertaking the pre-investment and project
development phases of projects utilizing improved and appropriate
technology;
(c) Serve as a
referral and information center to link technology users to appropriate
technology and technology expertise, and to provide assistance on
government technology; and
(d) Assist in
identifying, evaluating, and obtaining the necessary project financing
or guarantees from government and private financial institutions,
including overseas bilateral, regional and international financing and
where appropriate from the Technology Delivery Fund.
Sec. 2. Technology Utilization Service Teams. —
There shall be organized by the TRC Director-General such Technology
Utilization Service Teams (TUST) as necessary, composed of technology
resource experts drawn from the roster of the Corps and assigned on a
project basis. Any government technology resource experts in the roster
of the Corps assigned to a TUST shall be detailed to TRC upon approval
by the Office of the President for the duration of the particular
project undertaken by a TUST, on a full-time or part-time basis as
appropriate. The services of a TUST shall be provided by the Corps
under such terms and conditions as may be agreed upon between TRC and
the technology user.
The compensation, including honoraria and allowances of technology
resource experts serving TUST’s shall be determined solely by TRC upon
recommendation by the Management Advisory Council, any law to the
contrary notwithstanding.
To carry out its support services, effectively, TRC is hereby declared
a critical government agency in accordance with PD No. 985, and Section 11 of PD No. 1097 is hereby reaffirmed, any law to the contrary
notwithstanding.
Sec. 3. Equity Contribution. — To carry out the
functions specified in this Executive Order, TRC is hereby provided a
capitalization in the amount of Sixty-Five Million Pesos
(P65,000,000.00) consisting of an initial sum of Five Million Pesos
(P5,000,000.00) provided by the National Science Development Board from
its appropriations for FY 1979, and an annual appropriation of Ten
Million Pesos (P10,000,000.00) for each of the next six years as a
first priority assessment from the science tax effective FY 1980. This
capitalization shall be in addition to the capital contributions to TRC
by its founding institutions as per PD 1097, and in addition to the
annual budget appropriations which are provided to TRC’s other regular
programs and activities.
Sec. 4. Technology Delivery Fund. — A Technology
Delivery Fund (the “Fund”) is created as a revolving fund to finance
the annual operations of the Corps, the payment of fees to government
and private technology resource experts engaged by the Corps and the
pre-investment and project development costs of government and private
sectors and users which shall be recovered by the Corps to the extent
possible from the technology users.
The Fund shall consist of the following:
(a)
Such amounts as may be earmarked by TRC from its own capital resources.
(b) Fees,
charges, and other income arising from the operations of the Corps.
(c) Royalties
received by the TRC for the use of government technology.
(d) Recoveries
from the pre-investment and project development expenses financed by
the Corps.
(e) Other
external sources such as grants, donations, technical assistance by
foreign or local entities in government or private sectors to improve
fund sourcing possibilities.
Proceeds of the Fund arising from (b), (c), and (d) not expended in any
fiscal year shall not revert to the General Fund but shall remain with
the Fund to finance the activities of the Corps for the succeeding
years, the relevant provisions of Presidential Decrees Nos. 711, 1177,
and other decrees and issuances to the contrary notwithstanding.
Sec. 5. Government Technologies. — All government
agencies and instrumentalities, including research institutions and
government corporations, which are assignees of technology in
connection with the manufacture of a product, the application of a
process or the rendering of a service, whether such technical knowledge
is reflected in an invention, industrial design, a utility model or a
new plant variety or in technical information or skills, or in the
service and assistance provided by experts for the design,
installations, operation, or maintenance of an industrial plant or for
the management of an industrial or commercial enterprises or its
activities, shall report to TRC such technology.
Such technology shall be considered government technology, and shall
include, among others, (a) technology developed by persons under an
employment or consultancy relationship with the government, its
agencies, or its instrumentalities for the performance of research
work; (b) technology developed by persons who are under no explicit
obligation to exercise an inventive activity but who use the facilities
of the government available to them through an employment or
consultancy relationship with the government, its agencies or its
instrumentalities; and (c) technology developed by government and
development entities.
Sec. 6. Licensing of Government Technology. — TRC
shall have the first option to act as the sole intermediary for the
licensing of government technology to third parties, whether public or
private, subject to such terms and conditions, including the payment of
royalties where appropriate to be determined in accordance with
guidelines formulated by the Management Advisory Council and approved
by the TRC Board of Trustees.
Government technology which has been developed by the government, its
agencies, or its instrumentalities, either by itself or in cooperation
with foreign or international organizations, with the express intention
of making such technology available to the general public free of
charge need not be subject to such licensing agreements.
Sec. 7. TRC Relations with Other Agencies. — TRC
may call upon any government research and development center,
institute, university, college, technical school and similar agencies
for such assistance as the Corps may need in carrying out its
functions. TRC is hereby authorized to reimburse such government
agencies for the use of facilities and equipment. All government
research and development centers, universities, colleges, technical
schools and similar agencies are hereby directed to link up with TRC as
the information center for the utilization of government
technology.
TRC shall prescribe guidelines to be observed by such government
agencies in the transmission of technical information to, and retrieval
thereof, from TRC. Technical information generated from such link up
shall be made available to private technology users under terms and
conditions to be determined by TRC.
Sec. 8. Government Financial Institutions. — The
Development Bank of the Philippines, Philippine National Bank,
Philippine Veterans Bank, Land Bank of the Philippines, and other
government financial institutions shall include, as part of the loans
granted to qualified technology users and when so requested, the
pre-investment costs that may be incurred by technology users which
have service contracts with TRC. An amount equivalent to two hundred
percent of actual pre-investment costs of technology users with service
contracts with TRC shall be allowed as an additional deductible expense
for income tax purposes, and such deduction may be spread equally over
five taxable years at the option of the technology users.
Sec. 9. TRC Management Advisory Council. — A
management Advisory Council is hereby created within TRC to provide
advisory and consultation services on matters pertaining to technology
applications and utilization, with special reference to the Corps and
the Fund. It shall be composed of a (1) Chairman who is to be appointed
by, and who shall serve at the pleasure of, the President of the
Philippines; (2) the Deputy Minister of the Ministry of Human
Settlements as Vice-Chairman; and (3) the Presidential Assistant for
Economic and Development Affairs, (4) the Deputy Minister of the
Budget, (5) the President of the University of the Philippines System,
(6) the Chairman of the Development Bank of the Philippines, (7) the
Chairman of the National Science Development Board, (8) the Chairman of
the Technology Transfer Board, and (9) the Director-General of the
National Manpower and Youth Council, as members.
The Management Advisory Council shall recommend, for the approval by
the TRC Board of Trustees, such guidelines as may be necessary for the
effective operation of the Corps and the Fund, and shall review the
relevant rules, regulations, and procedures in the light of such
guidelines. The Management Advisory Council may also direct TUST’s to
undertake specific activities that will promote and operationalize the
objectives and purposes of this Executive Order.
Sec. 10. Separability Clause. — If any provision
of this Executive Order shall be held invalid, the remainder shall not
be affected thereby.
Sec. 11. Effectivity. — This Executive Order shall
take effect immediately.
DONE in the City of Manila,
this 23rd day of July, in the year of Our Lord, Nineteen Hundred and
Seventy-Nine.
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