EXECUTIVE ORDER NO. 94

REORGANIZING THE DIFFERENT EXECUTIVE DEPARTMENTS, BUREAUS, OFFICES, AND AGENCIES OF THE GOVERNMENT OF THE REPUBLIC OF THE PHILIPPINES, MAKING CERTAIN READJUSTMENTS OF PERSONNEL AND REALLOTMENTS OF FUNDS IN CONNECTION THEREWITH, AND FOR OTHER PURPOSES

By virtue of the powers vested in me by Republic Act Numbered Fifty-one, I, MANUEL ROXAS, President of the Philippines, do hereby order —

SECTION 1. Section seventy-four of the Revised Administrative Code, as amended, is hereby further amended to read as follows:

“SEC. 74. Departmental organization. — All executive functions of the Government of the Republic of the Philippines shall be directly under the Executive Department, subject to the supervision and control of the President of the Philippines in matters of general policy. The Departments are established for the proper distribution of the work of the Executive, for the performance of the functions expressly assigned to them by law, and in order that each branch of the administration may have a chief responsible for its direction and policy. Each Department Secretary shall assume the burden of, and responsibility for, all activities of the Government under his control and supervision.

“For administrative purposes, the President of the Philippines shall be considered the Department Head of the Executive Office, the Budget Commission, the Institute of Science, the Bureau of Civil Service, the Civil Service Board of Appeals, the National Commission on Educational, Scientific and Cultural Matters, the National Research Council, the National Economic Council, the Government Quarters Committee, the Board on Pensions for Veterans, the Council of National Defense, the Philippines Heraldry Committee, and of all other offices and branches of the service not assigned by law to any Department.”

SECTION 2. Section seventy-five of the Revised Administrative Code, as amended, is hereby further amended to read as follows:

“SEC. 75. Executive Departments. — There shall be eleven executive departments, to wit: the Department of Foreign Affairs, the Department of the Interior, the Department of Finance, the Department of Justice, the Department of Agriculture and Natural Resources, the Department of Public Works and Communications, the Department of Education, the Department of Labor, the Department of National Defense, the Department of Health, and the Department of Commerce and Industry, which shall be under the direct control of the respective Secretaries of Departments, exercising their functions subject to the general supervision and control of the President of the Philippines.”

SECTION 3. Section seventy-six of the Revised Administrative Code, as amended, is hereby further amended to read as follows:

“SEC. 76. Secretaries of Departments. — The Department of Foreign Affairs shall perform its functions under the executive authority of the Secretary of Foreign Affairs; the Department of the Interior shall perform its functions under the executive authority of the Secretary of the Interior; the Department of Finance shall perform its functions under the executive authority of the Secretary of Finance; the Department of Justice shall perform its functions under the executive authority of the Secretary of Justice; the Department of Agriculture and Natural Resources shall perform its functions under the executive authority of the Secretary of Agriculture and Natural Resources; the Department of Public Works and Communications shall perform its functions under the executive authority of the Secretary of Public Works and Communications; the Department of Education shall perform its functions under the executive authority of the Secretary of Education; the Department of Labor shall perform its functions under the executive authority of the Secretary of Labor; the Department of National Defense shall perform its functions under the executive authority of the Secretary of National Defense; the Department of Health shall perform its functions under the executive authority of the Secretary of Health; and the Department of Commerce and Industry shall perform its functions under the executive authority of the Secretary of Commerce and Industry.”

SECTION 4. Section seventy-seven of the Revised Administrative Code, as amended, is hereby further amended to read as follows:

“SEC. 77. Appointment of Secretaries. — The Secretaries of Departments shall be appointed by the President of the Philippines, with the consent of the Commission on Appointments of the Congress, at the beginning of his term of office, and shall hold office, unless sooner removed, until the expiration of his term of office, or until their successors shall have been appointed and qualified.”

SECTION 5. Section seventy-eight of the Revised Administrative Code, as amended, is hereby further amended to read as follows:

“SEC. 78. Qualifications of Secretaries. — All Secretaries shall have the following qualifications: Be a citizen of the Philippines and have resided in the Philippines continuously during the three years next preceding his appointment and be not less than thirty years of age.”

SECTION 6. The name “Shipping Commission,” as used in Executive Order Numbered Thirty-one, dated November twenty-eight, nineteen hundred and forty-six, as amended, is hereby changed to “Shipping Administration.”

Salary Law

SECTION 7. Section three of Commonwealth Act Numbered Four hundred and two, known as the Salary Law, is hereby amended to read as follows:

“SEC. 3. Schedule of grades and corresponding rates of compensation. — With the exception of the special groups in section five hereof, the positions to which this Act applies are classified into the following grades with their rates of annual compensation:

Chiefs of Divisions, Chiefs of Sections, Supervisory Positions, and Positions of Equivalent Rank

Grade	Rate of Compensation	Grade	Rate of Compensation
1	P 6,000.00	9	P 3,480.00
2	5,400.00	10	3,300.00
3	5,100.00	11	3,120.00
4	4,800.00	12	2,940.00
5	4,500.00	13	2,760.00
6	4,200.00	14	2,580.00
7	3,960.00	15	2,400.00
8	3,720.00

Subordinate Clerical or Equivalent Positions

A	P 2,280.00	J	P 1,200.00
B	2,160.00	K	1,080.00
C	2,040.00	L	960.00
D	1,920.00	M	900.00
E	1,800.00	N	840.00
F	1,680.00	O	780.00
G	1,560.00	P	720.00
H	1,440.00	Q	660.00
I	1,320.00	R	600.00

“(a) Grades 1, 2, and 3 shall include all classes of positions the duties of which are, under administrative direction and with very wide latitude for the exercise of independent judgment, to serve as heads of very large or very important divisions or other units of organization of similar import, engaged in work involving technical training and extended experience on the part of the incumbents; or to supervise the design and installation of complex and important accounting, office, or institutional system, methods, procedures; or to plan, organize and conduct investigations in original research or in development work in professional, scientific, or technical fields; or to perform the most important, difficult, and responsible work along highly specialized professional, scientific, or technical lines requiring training, extended experience, and demonstrated attainments of an exceptionally high order.

“(b) Grades 4, 5, 6, and 7 shall include all classes of positions the duties of which are, under administrative direction and with wide latitude for the exercise of independent judgment, to serve as heads of large or important divisions or other units of organization of similar import, engaged in work involving technical training and extended experience on the part of the incumbents; or to plan, organize, and conduct investigations in original research or in development work in a professional, scientific, or technical field; or to perform the most important, difficult, and responsible work along specialized professional, scientific, or technical lines, requiring training, extended experience, and demonstrated attainments of a high order.

“(c) Grades 8, 9, 10, and 11 shall include all classes of positions the duties of which are, under administrative direction and with considerable latitude for the exercise of independent judgment, to serve as heads of divisions of very large or very important sections or other units of organization of similar import, engaged in work involving technical training and considerable experience on the part of the incumbents; or to perform exceptionally difficult, important, and responsible work along professional, scientific, and technical lines, requiring training and extended experience and demonstrated attainments or along very highly specialized clerical lines requiring extended training and mastery in stenography, translation, or other kindred subjects.

“(d) Grades 12, 13, 14, and 15 shall include all classes of positions the duties of which are, under direction and with considerable latitude for the exercise of independent judgment, to serve as heads of sections, or other units of organization of similar import, engaged in work involving technical training and considerable experience on the part of the incumbents; to perform very difficult, important, and responsible work along professional, scientific, or technical lines, requiring training, considerable experience, and demonstrated executive ability, or along highly specialized clerical work, requiring training, extended experience and proficiency in stenography, translation, and kindred subjects.

“(e) Grades A to D shall include all classes of positions the duties of which are, under direction and with considerable latitude for the exercise of independent judgment, to engage in difficult specialized work; or to perform difficult, important, and responsible work along professional, scientific, technical or specialized clerical lines, requiring training, considerable experience, and demonstrated capacity for sound independent work, and an intimate knowledge of a special subject matter, and/or superior skill in crafts or arts.

“(f) Grades E to H shall include all classes of positions the duties of which are, under direct supervision and with substantial latitude for the exercise of independent judgment, to engage in varied and difficult work; or to perform moderately difficult, important, and responsible work along professional, scientific, technical or specialized clerical lines, requiring training and moderate experience, or a lower training but considerable experience, thorough knowledge of a special subject matter, and/or unusual skill in crafts or arts.

“(g) Grades I to L shall include all classes of positions the duties of which are, under general supervision and with some latitude for the exercise of independent judgment, to engage in difficult routine work; or to perform responsible work along professional, scientific, or technical lines, or along clerical lines, requiring training and moderate experience, or lower training but considerable experience, and a good knowledge of a special subject matter, or skill in arts, crafts, or trades.

“(h) Grades M to P shall include all classes of positions the duties of which are, under immediate or general supervision and with some latitude for the exercise of independent judgment, to perform responsible work along technical or clerical lines, requiring training and moderate experience, and a broad knowledge of a special subject matter; or simple elementary work requiring scientific or professional training with little or no experience; or subordinate professional or scientific work requiring training and experience; or important, difficult, and responsible subordinate vigilance work; or skill in crafts or manual labor.

“(i) Grades Q to R shall include all classes of positions the duties of which are, under immediate or general supervision and with limited latitude for the exercise of independent judgment, to perform simple but responsible work along technical, clerical, messengerial, or subordinate vigilance lines; or simple and elementary subordinate professional or scientific work or crafts; and all classes of positions the duties of which are, under immediate supervision, to perform the simplest routine clerical, messengerial, or custodial tasks or unskilled manual labor, including apprenticeship in subordinate professional or scientific work or crafts.”

SECTION 8. Section four of Commonwealth Act Numbered Four hundred and two is hereby amended to read as follows:

“SEC. 4. Services established by this Act. — The following services are established:

“I. Administrative Service

II. Professional and Scientific Service

III. Educational Service

IV. Navigation Service

V. Vigilance Service

VI. Subprofessional Service

VII. Craft and Labor Service

“The Administrative Service shall include all groups comprehending positions the duties of which are in general to perform administrative, fiscal, or clerical work, or any other work commonly associated with office, business or fiscal administration.

“The Professional and Scientific Service shall include all groups comprehending positions the duties of which are to perform routine, advisory, administrative, or research work which is based upon the established principles of a profession or science, and which requires professional or scientific training equivalent to that represented by graduation from a college or university of recognized standing.

“The Educational Service shall include all groups comprehending positions the duties of which in general are to give or to supervise regular and systematic instruction designed to develop the mental, physical, aesthetic or vocational powers, including manual skill.

“The Navigation Service shall include all groups comprehending positions the duties of which are to perform work related to the operation, maintenance, and administration of airships, vessels and other floating craft which are not a part of the equipment of the Armed Forces of the Philippines, including the operation, maintenance, and administration of property designed to aid navigation.

“The Vigilance Service shall include all groups comprehending positions the duties of which are to perform or supervise police or fire-protection work, the guarding of persons or property under the custody of the Government, the preservation of law and order, and the protection of life and property.

“The Subprofessional Service shall include all groups comprehending positions the duties of which are to perform work which is incident, subordinate, or preparatory to the work of employees holding positions in the professional and scientific service, requiring or involving professional and scientific service, requiring or involving professional, scientific, or technical training or any degree inferior to that represented by graduation from a college or university of recognized standing.

“The Craft and Labor Service shall include all groups comprehending positions the duties of which are to perform or supervise domestic, manual, or mechanical work involved in the execution of public works; the manufacture and handling of supplies and equipment; the repair of equipment; the operation of mechanical equipment; the transportation of personnel and property; the caring for the needs of the sick and of persons in the care and custody of the Government, and/or of persons in its employ who are entitled to maintenance; or to perform or supervise work of similar character.”

Salary Board Abolished

SECTION 9. The Salary Board created in section nine of Commonwealth Act Numbered Four hundred and two is hereby abolished, and its powers, functions, duties, and records are hereby transferred to the Budget Commission. The terms “Salary Board” and “Board” used in the other parts of said Act shall be understood to mean the “Budget Commission” and “Commission,” respectively.

SECTION 10. Paragraph (a) of section ten of Commonwealth Act Numbered Four hundred and two is hereby amended to read as follows:

“(a) To establish within the services the necessary groups with their corresponding grades, designating (1) the titles of the classes, (2) the duties and responsibilities involved in each class, illustrated where necessary by examples of typical tasks, and (3) the minimum qualifications required for the satisfactory performance of such duties and tasks, in conformity with the specifications outlined in sections three and four herein: Provided, however, That the Commission may lower or waive the experiential requirement for any particular group or groups in the service below Grade P and graduate the experiential requirement accordingly for the high grades within the same group if, in the opinion of the said Commission, such action is for the best interest of the public service.”

SECTION 11. Section fourteen of Commonwealth Act Numbered Four hundred and two is hereby amended to read as follows:

“SEC. 14. Limitation of salary rates. — Except as otherwise provided in this Act, no appointments to positions subject to the provisions of this Act shall be made except at rates of compensation in conformity to the rates prescribed herein. An appointee to any position shall be entitled to receive the salary appropriated for the position after serving at least six months in every intermediate grade, if any, between that position and the position from which he has been promoted, unless he has previously received the same or higher salary in any position under the same or any other branch of the government service or he has been in continuous service for more than one year prior to the proposed promotion, in which case every year of such service counting from the date of his original appointment, during which he has not had one-rate promotion, shall be equivalent to six months’ service in every intermediate grade between his old and new positions and entitle him to the corresponding salary increase not exceeding the rate provided for the new position: Provided, That original appointments shall be made at salaries not exceeding the entrance rates for the civil service eligibility of the employees concerned: Provided, further, That notwithstanding the provisions of this Act, no employee shall be appointed at a salary higher than the maximum allowed for his civil service eligibility: And, provided, finally, That an appointment to any position in grades seven to one shall not take effect until the fitness of the appointee to hold the higher position by reason of his character, experience, training and other personal qualifications shall have been passed upon and approved by the President upon recommendation of the Cabinet.”

SECTION 12. All positions now provided by law in the different departments, bureaus, and offices shall, upon approval of this Order, be deemed allocated to the grades to which they would correspond by reason of the rates of salaries now authorized therefor in accordance with the schedule provided in section seven hereof.

Automatic Salary Increases

SECTION 13. Should the savings made available under section 162 (5) of this Executive Order be insufficient to pay all employees the automatic salary increases authorized therein, priorities shall be given to the employees occupying positions of the lowest grades: Provided, That when payments of the automatic salary increases shall be made to employees of any grade, the same shall be made to all employees of that grade. No payment of the automatic salary increases shall be made to employees of the next higher grade if all employees within that grade cannot be provided for from the residual funds still available. Automatic salary increases unpaid by reason of insufficiency of funds shall not be cumulative.

Automatic salary increases shall not affect the basic salary attached to the positions.

The provisions of section 162 (5) of this Executive Order referring to automatic salary increases shall not be applicable to employees occupying positions the salaries of which are fixed by law, as in the case of enlisted men of the Armed Forces of the Philippines and the Philippine Constabulary.

Employees paid from funds other than those appropriated in Republic Act Numbered One hundred fifty-six may be paid automatic salary increases in accordance with the provisions of said Act and this Executive Order when authorized in the special budget allotting the corresponding funds.

Salary of Recreated Positions

SECTION 14. When a position, which is subject to the provisions of Commonwealth Act Numbered Four hundred and two, as herein amended, is abolished by the retirement of the incumbent thereof under Act Numbered Twenty-five hundred eighty-nine, as amended, the same may be filled, when recreated by authority of the President, at a salary equal to two-thirds of the salary authorized by law for the said position: Provided, That when such two-thirds is not of the rates authorized in this Order, the same shall be adjusted to the next higher or lower rate, whichever is the nearer, unless otherwise provided in subsequent general appropriation acts.

SECTION 15. Sections eleven and twelve of Commonwealth Act Numbered Four hundred and two are hereby repealed.

Councils of Personnel Administration

SECTION 16. There is hereby created in every Department, bureau or office, in every corporation owned or controlled by the government, and in every agency or instrumentality of the Government a Council of Personnel Administration to be composed of the chiefs of divisions or primary units in the said offices and two representatives of the subordinate personnel who shall be elected from among the employees whose basic salary does not exceed two thousand four hundred pesos per annum each. The chairman of the Council shall be elected by its members from among themselves.

SECTION 17. The Council is hereby authorized to examine the records of efficiency and fitness of all employees in its respective office with a view to making appropriate recommendations, in accordance with the Civil Service Law and Rules, concerning officials and employees who may be found inefficient, inept, incompetent or otherwise unfit for further efficient service.

SECTION 18. It shall be the duty of the Council to bring to the attention of the administrative authorities concerned matters of general interest or benefit to the public service; to recommend such measures as will promote the well-being and improve the morale or efficiency of the personnel in the service; and to perform such other allied duties as may be assigned to it from time to time by the Department Head, director or chief of the bureau or office, or managing head of the corporation concerned.

Office of the President of the Philippines

Institute of Science — Board of Regents

SECTION 19. The Bureau of Science is hereby renamed “Institute of Science” and placed under the executive supervision of the President of the Philippines. The Institute of Science shall be governed by a Board of Regents which is hereby created, consisting of a Chairman and eight members who shall all be appointed by the President of the Philippines with the consent of the Commission on Appointments of the Congress for a term of three years: Provided, That the members first appointed shall hold office as follows: the Chairman and four members for two years and four for three years, the term of office of each member to be specified in his appointment by the President. All vacancies, except through expiration of the term, shall be filled for the unexpired term only. There shall be a Director of Science to carry out the resolutions of the Board of Regents. He shall be appointed by the President with the consent of the Commission on Appointments of the Congress.

SECTION 20. The Institute of Science shall have such powers, functions, and activities as are now by law vested in the Bureau of Science including particularly the following:

(a) The conduct of regional researches and investigation in the basic science of industry;

(b) The conduct of researches, investigations, and experiments of a technical nature to find new uses for raw materials and their by-products;

(c) The conduct of researches, investigations, and experiments bearing on industry, on industrial plant scale, whether under government auspices or under the auspices of corporations owned or controlled by the Government or private enterprises, on a basis of cooperation approved by the Board of Regents;

(d) The testing or verifying under local conditions of the results of researches, investigations, and experiments obtained elsewhere that may have application to Philippine industries and their problems;

(e) The conduct of research and experimentation regarding the possibility of aircraft construction and the use of Philippine materials in such construction, as provided under subsection (b), section six, of Commonwealth Act Numbered One hundred sixty-eight, which function shall be transferred from the Civil Aeronautics Administration to the Institute of Science; and

(f) The conduct of such researches and experiments including those that are of fundamental nature incidental but indispensable thereto, as will benefit industry and, in other ways, increase, promote and improve industrial production.

SECTION 21. The Board of Regents shall exercise the following specific powers:

(a) To guide and control the Director of Science in the administration of all the funds appropriated for the maintenance and operation of the Institute of Science, or received in the manner indicated in sections twenty-three and twenty-five hereof;

(b) To decide on the program of industrial research and to act on the budget of the Institute submitted by the Director of Science; and

(c) To promulgate rules and regulations for the establishment of fellowships in accordance with the provisions of the subsequent sections hereof.

SECTION 22. The several bureaus and offices of the Executive Branch of the Government, the University of the Philippines, and the corporations owned or controlled by the Government may assign to the Institute of Science such personnel as the Director of Science and the head of the corresponding department or organization may agree upon, either to pursue a separate research or experiment in relation to industries not being undertaken by the Institute of Science, or to assist in the conduct of a research or experiment on a fellowship basis.

SECTION 23. The bureaus, offices, agencies or instrumentalities of the Government, including corporations owned or controlled by the Government, private individuals, corporations, and enterprises may grant subsidy or contribution to the Institute of Science for the conduct of whatever research, study, or investigation they may desire the Institute of Science to undertake but such research, study, or investigation shall be carried on under the direction and supervision of the said Institute.

SECTION 24. The personnel, equipment, and other facilities of the Institute of Science shall be available to researchers that may be detailed to the said Institute under fellowship conditions, as provided in this Executive Order and approved by the Board of Regents.

SECTION 25. The Board of Regents is authorized to receive for the Institute of Science subsidies, endowments, bequests, and donations and use the same for such purposes as the donors may specify. In the absence of the express wishes of the donors, all such contributions shall form part of the fund of the Institute and shall be available for such expenditure as may be authorized by the Board of Regents.

National Research Council of the Philippines

SECTION 26. The “National Research Council of the Philippine Islands” created and established under Act Numbered Four thousand one hundred twenty, shall hereafter be known as the “National Research Council of the Philippines.”

The Executive Office

SECTION 27. The Executive Office shall have a chief who shall be known as Executive Secretary. His assistants shall be known as Assistant Executive Secretaries. The Executive Secretary shall have the rank of a Secretary of Department and shall exercise such powers, functions, and duties as may be assigned to him by the President from time to time, and such others as may be imposed upon him by law.

Bureaus and Offices Under the Executive Office

SECTION 28. The Bureau of the Census and Statistics, the Shipping Administration, the Bureau of Printing, the National Museum, the Institute of Nutrition, the Social Welfare Commission, and the National Urban Planning Commission, together with their respective powers, functions, activities, personnel, records, supplies, equipment, properties, and unexpended balances of funds or appropriations are hereby placed under the immediate supervision and control of the Executive Secretary. The Radio Broadcasting Board shall continue to be under his supervision and control. The Bureau of Printing shall continue to be operated on a revolving fund basis.

National Museum

SECTION 29. The Gallery of Art and History Division of the National Library is hereby merged with the Natural History Museum Division of the Department of Agriculture and Commerce. These combined units shall have the category of a Bureau to be designated “National Museum,” and shall be placed under the immediate supervision and control of the Executive Secretary. The National Museum shall have a chief who shall be known as Director of National Museum and whose salary, until otherwise fixed by law, shall be seven thousand two hundred pesos per annum.

Institute of Nutrition

SECTION 30. There is hereby created, in the Executive Office, an Institute of Nutrition which shall serve as a clearing-house of data and information concerning nutrition; shall advise, guide, and give suggestions towards a coordination of all experimental work, objectives, and results of nutritional experiments being undertaken by the different units of the Government and by all private organizations; shall foster and encourage harmonious cooperation among the said units, private institutions and other organizations engaged in various activities in order to promote a national nutrition program; and shall seek close adherence to, and correlated execution of, the said program after its approval by the President. This Institute shall be composed of a Chairman and ten members, who shall all be appointed by the President of the Philippines with the consent of the Commission on Appointments of the Congress for a term of four years: Provided, That the members first appointed shall hold office as follows: the Chairman and three members for two years, three members for three years, and four for four years, the term of office of each member to be specified in his appointment by the President. All vacancies, except through expiration of the term, shall be filled for the unexpired term only. There shall be a Director of Nutrition who shall be appointed by the President, with the consent of the Commission on Appointments of the Congress.

The Institute of Nutrition is authorized to receive subsidies, endowments, bequests, and donations and use the same for such purposes as the donors may specify. In the absence of the express wishes of the donors, all such contributions shall form part of the fund of the Institute and shall be available for such expenditures as may duly be authorized by the said Institute.

Social Welfare Commission

SECTION 31. The Bureau of Public Welfare is hereby abolished and in lieu thereof, the Social Welfare Commission is created under the executive supervision of the Executive Secretary. This Commission shall have a chief who shall be known as Commissioner of Social Welfare to be appointed by the President, with the consent of the Commission on Appointments of the Congress, and whose salary, until otherwise fixed by law, shall be seven thousand two hundred pesos per annum.

SECTION 32. All the personnel, records, documents, supplies, equipment, properties, and the unexpended balances of funds or appropriations pertaining to the Bureau of Public Welfare are hereby transferred to the Social Welfare Commission.

SECTION 33. The Social Welfare Commission shall have such powers, functions, and activities as are now by law vested in the Bureau of Public Welfare, including, particularly, the proper enforcement of the laws and regulations relative to relief and other social services, and the administration of all charitable and relief agencies, including institutions for the care of the aged and/or infirm and of dependent, defective and/or delinquent children supported, whether wholly or partly by the Government or any of its branches or instrumentalities: Provided, That during the time that the Philippine Relief and Trade Rehabilitation Administration undertakes relief functions which are in conflict with the functions of the Social Welfare Commission specified in this section, the President of the Philippines may delimit and coordinate the jurisdiction and activities of the Philippine Relief and Trade Rehabilitation Administration and the Social Welfare Commission in connection therewith.

Department of the Interior

SECTION 34. Section eighty-six of the Revised Administrative Code, as amended, is hereby further amended to read as follows:

“SEC. 86. Bureaus and offices under the Department of the Interior. — The Department of the Interior shall have executive supervision over the administration of provinces, municipalities, chartered cities and other local political subdivisions, except the financial affairs and financial agencies thereof, the Philippine Constabulary, the Board of Review for Moving Pictures, the Racing Commission, and the Boxing and Wrestling Commission.”

Philippine Constabulary

SECTION 35. Twelve thousand officers and men of the present Military Police Command, Armed Forces of the Philippines, are hereby withdrawn therefrom and transferred to the Department of the Interior and constituted into a national police force to be known and designated as the Philippine Constabulary: Provided, however, That the President of the Philippines may, to meet emergency conditions, have the normal strength of the Constabulary temporarily increased by attaching thereto the necessary number of units from the Armed Forces through temporary detail. Such number of civilian personnel as the appropriations herein transferred will permit are likewise transferred to the Philippine Constabulary.

SECTION 36. The Philippine Constabulary herein organized shall be deemed to be a Bureau and the Chief of Constabulary shall have all the powers generally conferred upon directors of bureaus particularly by Sections five hundred fifty to five hundred fifty-seven, inclusive, of the Revised Administrative Code. He shall have power also to prescribe the insignia, arms, equipment, and uniform of the members of the Philippine Constabulary: Provided, That such uniform shall be different from those of the other armed forces of the Philippines or of the local police forces, and no person not a member of the Philippine Constabulary is authorized to wear the same or another closely similar to it.

SECTION 37. There shall be one Chief of Constabulary who shall have the rank of Brigadier General, one Deputy Chief who shall have the rank of Colonel, and such number of Assistant Chiefs, whose ranks shall not be lower than Lieutenant-Colonel, as the President may authorize from time to time within the limits of available appropriations. The Chief and the Deputy Chief of Constabulary shall be appointed by the President of the Philippines with the consent of the Commission on Appointments of the Congress.

SECTION 38. All police duties, functions, authority, and responsibility, except those of military character, of the Military Police Command, Armed Forces of the Philippines, shall hereafter be exercised and assumed by the Philippine Constabulary, which shall be charged with the enforcement of law and order. The provisions of Sections eight hundred thirty-two, eight hundred thirty-three, eight hundred thirty-four, eight hundred thirty-five, eight hundred thirty-six, eight hundred thirty-seven, eight hundred thirty-eight, eight hundred thirty-nine, eight hundred forty, and eight hundred forty-eight of the Revised Administrative Code, as amended, which are hereby declared in full force and effect, shall govern the members of the Philippine Constabulary in the exercise of their authority and duties as peace officers and in their relations with provincial and municipal law enforcement agencies and officials. During any period of emergency any element of the Armed Forces of the Philippines may, upon direction of the President, be employed to assist the Philippine Constabulary, and the military element thus employed shall be temporarily under the control or command of the appropriate Constabulary commander senior in relative rank unless the President directs otherwise. If the emergency so warrants, the President may direct that all Constabulary and local police elements operating in the affected region may be attached to the Armed Forces of the Philippines and placed under the operational control of the Chief of Staff of the Armed Forces or such subordinate commander as the Chief of Staff may designate. In all cases where elements of the Armed Forces and the Constabulary operate in conjunction with or under the control of the other, routine matters of administration and supply will remain the responsibility of their respective commanders.

SECTION 39. Commissioned and enlisted personnel detailed from the Armed Forces of the Philippines or transferred therefrom to the Philippine Constabulary shall be deemed to have the same status, including ranks, rights, privileges, and obligations as officers and enlisted men of the Armed Forces of the Philippines. The Philippine Constabulary shall form part of the Reserve Force, and all service performed by any officer or enlisted man in the Philippine Constabulary shall be counted, for all legal purposes, as military service rendered. No person called to the service of the Philippine Constabulary shall, by virtue thereof solely, suffer a reduction in pay or deprivation of any additional benefit or privilege earned by him as a member of the Armed Forces of the Philippines.

SECTION 40. For a period of one year after the effective date of this Order and with the authority of the President of the Philippines, any officer or enlisted man of the Armed Forces of the Philippines may, with his consent, be assigned to serve in the Philippine Constabulary or vice versa. To meet emergency conditions, the President is authorized to detail temporarily any personnel of the Armed Forces for duty with the Constabulary or vice versa.

SECTION 41. When the present strength of the Philippine Constabulary shall have been reduced to twelve thousand, no enlistment except when approved by the Secretary of the Interior for specially qualified key personnel will be permitted, unless the President determines that a larger strength than twelve thousand officers and men should be organized. Vacancies in the positions for enlisted personnel occurring from time to time may be filled by the Philippine Constabulary by direct enlistment, each enlistment to last for a period not more than three years, and the soldiers so enlisted shall be considered as members of the Reserve Force of the Armed Forces of the Philippines.

SECTION 42. By authority of the President of the Philippines, officers of the Philippine Constabulary temporarily detailed to the Armed Forces or vice versa with their consent may be temporarily promoted to grades authorized for the respective positions they may hold under such detail. All requirements for permanent promotions excepting those pertaining to position vacancies shall be the same as in the Armed Forces. For position vacancy requirements the Constabulary will have its own promotion roster.

SECTION 43. The Articles of War governing the Armed Forces of the Philippines are hereby made applicable to the Philippine Constabulary. Other laws, rules and regulations regarding appointments and commissions, enlistment, pay and allowances, rank or grade, promotions, retirements, resignation and discharge of members of the Armed Forces shall, as far as practicable, be applicable to members of the Constabulary: Provided, however, That the President may, if appropriations are available and in appropriate cases, authorize additional pay and allowances to members of the Constabulary. The provisions of the Constabulary Law, Chapter thirty-five, Book Two, of the Revised Administrative Code, as amended, and other laws, executive orders, rules and regulations which are not inconsistent with the provisions of this Order or with any of  the laws made applicable to the Constabulary are hereby declared applicable to the officers and enlisted men of the Philippine Constabulary.

SECTION 44. Real estate, including buildings and installations appurtenant thereto, formerly owned by the old Philippine Constabulary and still in the possession of the Government; leases over private property heretofore held by the Military Police Command, Armed Forces of the Philippines; facilities and equipment heretofore used by the Military Police Command in ballistics, fingerprinting and other activities peculiar only to criminal investigations and apprehension; and all record, files and correspondence heretofore kept by the Military Police Command are hereby transferred outright to the Constabulary. Armament, military supplies, and equipment sufficient for the use of twenty thousand officers and enlisted men belonging to the Armed Forces of the Philippines heretofore in the possession of the Military Police Command shall be turned over to the Philippine Constabulary on a loan or reimbursable basis. Future transfers to the Constabulary of armament, supplies and equipment belonging to the Armed Forces and surplus to their immediate needs shall be on a loan or reimbursable basis, upon mutual agreement subject to the approval of the President.

SECTION 45. Enlisted personnel transferred from the Military Police Command who are unqualified for Constabulary duty and not desired by the Armed Forces may be separated from the service without prejudice. Separation of officers unqualified for Constabulary duty who are not desired by the Armed Forces shall be in accordance with procedures established for similar personnel of the Armed Forces.

SECTION 46. The Armed Forces of the Philippines will furnish logistical support whenever practicable so as to eliminate duplication of installations and expense. Air or water transportation beyond the capabilities of the Philippine Constabulary shall be furnished by the Philippine Air Force or the Philippine Naval Patrol. Vehicle and armament repairs beyond the capabilities of the Constabulary shall be furnished by Armed Forces installations. Communication facilities and installations operated by the Armed Forces shall be utilized by the Constabulary whenever the communications system of the latter is inadequate, and vice versa. All logistical support rendered shall be reimbursable to the extent of actual cost.

Racing Commission

SECTION 47. The name “Board on Races” as used in Executive Order Numbered Three hundred twenty, dated January twenty-seventh, nineteen hundred forty-one, as amended, is hereby changed to “Racing Commission.”

Department of Finance

SECTION 48. Section eighty-one of the Revised Administrative Code, as amended, is hereby further amended to read as follows:

“SEC. 81 Bureaus and offices under the Department of Finance. — The Department of Finance shall have executive supervision over the Bureau of Customs, the Bureau of Internal Revenue, the Bureau of the Treasury, the Bureau of Banking, the Procurement Office, the Manila Harbor Board, and the Tobacco Board. It shall also have general supervision over the financial affairs and financial agencies of provincial, municipal, and city governments, banks, banking transactions, coinage, currency, and, except as otherwise specially provided, over all funds the investment of which may be authorized by law.”

Procurement Office

SECTION 49. The special division attached to the Office of the Secretary of Finance, which is known as the Division of Purchase and Supply, is hereby changed to and shall hereafter be known as the Procurement Office.

Direct Purchases by the Armed Forces

SECTION 50. Upon recommendation of the Secretary of National Defense, the President may authorize the Armed Forces of the Philippines to make direct purchases without the intervention of the Procurement Office, under such rules and regulations as he may prescribe, of specific materials, supplies and equipment of military character.

Bureau of Customs

Commissioner of Customs

SECTION 51. The designation of the position of “Insular Collector of Customs” is changed to “Commissioner of Customs,” and its salary is fixed at nine thousand pesos per annum until otherwise provided by law.

Collector of Customs for the Port of Manila

SECTION 52. The position of “Deputy Insular Collector of Customs” is changed to “Collector of Customs for the Port of Manila” which position shall have a compensation of seven thousand two hundred pesos per annum. The Port of Manila is hereby placed for administrative purposes under the immediate supervision of the Collector of Customs for the Port of Manila.

Customs Patrol Service

SECTION 53. There is hereby organized a “Customs Patrol Service” through the consolidation of the Secret Service Division and the Harbor Police Division, including the positions and personnel paid by the entity operating the arrastre service, to take direct charge of the enforcement of the laws and regulations within the customs premises and the port area.

SECTION 54. The positions in the Customs Patrol Service are hereby declared primarily confidential and appointments thereto will be subject only to the discretion of the Secretary of Finance.

Lighthouse Service and Revenue Cutter Service Transferred

SECTION 55. The Lighthouse Service and the Revenue Cutter Service of the Bureau of Customs, including the appropriations, personnel, records, properties and equipment pertaining thereto are transferred to the Philippine Naval Patrol.

The Commander of the Philippine Naval Patrol shall furnish the Commissioner of Customs or the Collector of Customs in ports of entry such vessels as may be necessary in connection with the performance of the duties of the Bureau of Customs.

Bureau of Internal Revenue

SECTION 56. Any laws or orders to the contrary notwithstanding, the authority of the Collector of Internal Revenue under section three hundred and nine of Commonwealth Act Numbered Four hundred sixty-six, otherwise known as the National Internal Revenue Code, to compromise internal revenue cases or to refund taxes, shall be exercised only after taking into consideration the recommendation of a committee to be composed of the head of the Law Division, as chairman, and the heads of the Income Tax Division, the Inspection Division, the Miscellaneous Tax Division, and the auditor for the Bureau of Internal Revenue, as members: Provided, That when the amount of the original assessment is in excess of twenty thousand pesos, the action of the Collector shall not become effective unless the same is approved by the Secretary of Finance: Provided, further, That warrants for the refund of taxes shall be countersigned by an official superior to the auditor for the Bureau of Internal Revenue.

For the purposes of sections three hundred forty-seven and three hundred forty-nine of the National Internal Revenue Code, the auditor for the Bureau of Internal Revenue shall be considered an officer of the said Bureau while performing duties as a member of the committee created in the next preceding paragraph.

SECTION 57. All violations of internal revenue laws, rules and regulations discovered and all persons apprehended for such violations shall be reported immediately by field men to the provincial or city revenue agent in the provinces and cities other than the City of Manila and to the Collector of Internal Revenue in the City for action. No final settlement of civil liability arising from such violations of internal laws, rules and regulations shall be made unless the corresponding tax and the corresponding penalties due are first paid.

SECTION 58. No officer or employee of the Bureau of Internal Revenue shall accept employment from any taxpayer nor accept a taxpayer as client in any matter related in any way to any tax. Violation of this rule shall be sufficient ground for the summary dismissal from the service of the officer or employee concerned. No officer or employee in any tax-collecting agency shall accept any outside occupation for gain without the prior approval of the President upon recommendation of the Secretary of Finance.

SECTION 59. No provincial revenue agent shall be stationed longer than three years in any one province, and no agent, examiner or other field men of the Bureau of Internal Revenue shall be assigned to any province for more than two years. In Manila and other cities or places where large numbers of business establishments are located, the territory shall be divided into districts and the necessary number of field men shall be assigned to each district. No field man shall be assigned to a district for more than six months. Each field man shall keep a diary of his activities and shall submit the same to the Collector of Internal Revenue, the diary to show the following:

(a) Place of assignment,

(b) Nature of inspection work undertaken,

(c) Names and addresses of persons, stores or firms inspected during the day,

(d) Time of inspection,

(e) Findings, and

(f) Action taken.

SECTION 60. All records of the Bureau of Internal Revenue shall be under the charge and custody of the Records Section of the Administrative Division.

SECTION 61. The Law Division of the Bureau of Internal Revenue, subject to the control and supervision of the Collector, shall pass upon all legal matters involved in internal revenue cases and shall take charge of the interpretation and application of internal revenue laws.

Department of Justice

SECTION 62. The first paragraph of section eighty-three of the Revised Administrative Code, as amended, is hereby further amended to read as follows:

“SEC. 83. Bureaus and offices under the Department of Justice. — The Department of Justice shall have executive supervision over the Office of the Solicitor General, the Courts of First Instance and the Inferior Courts, the Public Service Commission, the Bureau of Prisons, the General Land Registration Office, the Court of Industrial Relations, the National Bureau of Investigation, the Bureau of Immigration, the Board of Pardons and Parole, the People’s Court, the Office of Special Prosecutors, the Tenancy Law Enforcement Division, the Deportation Board, the Code Commission, and the Office of the Government Corporate Counsel. It shall also have the general supervision and control of the provincial sheriffs and all law officers of the Government other than provincial and city fiscals or attorneys and other prosecuting officers.”

National Bureau of Investigation

SECTION 63. The Bureau of Investigation created in Republic Act Numbered One hundred fifty-seven is hereby renamed National Bureau of Investigation.

SECTION 64. Section one hundred eighty-six of the Revised Administrative Code, as amended, is hereby further amended to read as follows:

“SEC. 186. Officers in function of sheriff. — In the City of Manila, the Clerk of Court of First Instance of said City shall exercise the functions of sheriff. In each of the several provinces of the Philippines the duties and functions of provincial sheriff shall hereafter be exercised by a Clerk of Court of First Instance, who is hereby designated ex officio provincial sheriff, in addition to his regular duties: Provided, That in provinces where there are at present separate individual provincial sheriffs, this arrangement shall not be effective until after the position of sheriff becomes vacant.”

Anti-Usury Board Abolished

SECTION 65. The Anti-Usury Board, created by Act Numbered Four thousand one hundred nine, as amended, is hereby abolished, and its powers, functions, duties, personnel, equipment, records and appropriations are transferred to the National Bureau of Investigation.

Bureau of Justice Renamed Office of the Solicitor General

SECTION 66. The present Bureau of Justice shall hereafter be known and referred to as the Office of the Solicitor General.

SECTION 67. The first paragraph of section one thousand six hundred fifty-nine of the Revised Administrative Code, as amended, is hereby further amended to read as follows:

“SEC. 1659. The Office of the Solicitor General shall have one Chief to be known as the Solicitor General whose salary shall be twelve thousand pesos per annum and shall have the rank of an Undersecretary of a Department. He shall be assisted by one First Assistant Solicitor General whose salary shall be nine thousand pesos per annum. When the Solicitor General is unable to perform his duties or in case of a vacancy in the office, the First Assistant Solicitor General shall temporarily perform the functions of said officer, or, in his absence, the Secretary of Justice may designate the acting chief of the office. There shall also be four Assistant Solicitors General and such number of solicitors as may from time to time be available under current appropriation and as the conditions of the service shall require.”

SECTION 68. Section one thousand six hundred sixty of the Revised Administrative Code, as amended, is hereby further amended to read as follows:

“SEC. 1660. Function of Office of the Solicitor General. — The Office of the Solicitor General constitutes the law office of the Government of the Philippines and by it shall be performed duties requiring the services of a law officer.

“The Office of the Solicitor General shall have general supervision and control over provincial and city fiscals and attorneys and over other prosecuting officers throughout the Philippines, shall prepare rules for their guidance, and may require reports from them concerning the public business in the courts of their respective provinces or concerning other matters relating to the administration of justice therein.”

Bureau of Immigration Transferred to Department of Justice

SECTION 69. The Bureau of Immigration, together with its personnel, powers, functions, activities, records, documents, equipment and unexpended balances of appropriations, is hereby transferred from the Department of Labor to the Department of Justice.

Salvage Warehouse and Industrial Division Revolving Funds Merged

SECTION 70. The Salvage Warehouse Revolving Fund and the Bureau of Prisons — Industrial Division Revolving Fund are hereby consolidated.

Board of Pardons and Parole

SECTION 71. The “Board of Indeterminate Sentence” created in Act Numbered Four thousand one hundred and three, as amended by Act Numbered Four thousand two hundred and twenty-five, and the “Board of Pardons” created in Executive Order Numbered Eighty-three, dated January eleventh, nineteen hundred and thirty-seven, are hereby abolished and there is created in their stead a “Board of Pardons and Parole.” Any reference to the abolished boards in any act, executive order, rule or regulation shall be deemed a reference to the “Board of Pardons and Parole.”

SECTION 72. Sections four and five of Act Numbered Four thousand one hundred and three are hereby amended to read as follows:

“SEC. 4. The Board of Pardons and Parole is authorized to adopt such rules and regulations as may be necessary for carrying out its functions and duties. The Board is empowered to call upon any bureau, office, branch, subdivision, agency, or instrumentality of the Government for such assistance as it may need in connection with the performance of its functions. A majority of all the members shall constitute a quorum and a majority vote shall be necessary to arrive at a decision. Any dissent from the majority opinion shall be reduced to writing and filed with the records of the proceedings. Each member of the Board, including the Chairman and the Executive Officer, shall be entitled to receive as compensation ten pesos for each meeting actually attended by him, notwithstanding the provisions of section two hundred and fifty-nine of the Revised Administrative Code, and in addition thereto, reimbursement of actual and necessary traveling expenses incurred in the performance of duties.”

“SEC. 5. It shall be the duty of the Board of Pardons and Parole to look into the physical, mental and moral record of the prisoners who shall be eligible to parole and to determine the proper time of release of such prisoners. Whenever any prisoner shall have served the minimum penalty imposed on him, and it shall appear to the Board, from the reports of the prisoner’s work and conduct and the study and investigation made by the Board itself, that such prisoner is fitted by his training for release, that there is a reasonable probability that such prisoner will live and remain at liberty without violating the law, and that such release will not be incompatible with the welfare of society, said Board of Pardons and Parole may, in its discretion, and in accordance with the rules and regulations adopted hereunder, authorize the release of such prisoner on parole, upon such terms and conditions as are herein prescribed and as may be prescribed by the Board. The said Board of Pardons and Parole shall also examine the records and status of prisoners who shall have been convicted of any offense other than those named in section two hereof, for more than one year by final judgment prior to the date on which this Act shall take effect, and shall make recommendations in all such cases to the President of the Philippines with regard to the parole of such prisoners as they shall deem qualified for parole as herein provided, after they shall have served a period of imprisonment not less than the minimum period for which they might have been sentenced under this Act for the same offense.

“It shall also be the duty of the Board of Pardons and Parole to examine or cause to be examined the prison records and history of prisoners confined in any prison or penal colony in the Philippines who are not entitled to parole under the provisions of this Act and to recommend the pardon of any of said prisoners whenever it is satisfied that such prisoner has so reformed that upon being pardoned, he will not become a menace to society or become a public charge. In passing upon the wisdom and advisability of recommending the granting of pardon, the Board shall take into consideration the crime committed, the probabilities of the prisoner’s again violating the law, his conduct while in prison, and all other matters that in any way bear upon the effect which the pardon of the prisoner may have upon society.”

Department of Agriculture and Natural Resources

SECTION 73. The present Department of Agriculture and Commerce shall hereafter be known as Department of Agriculture and Natural Resources.

SECTION 74. Section eighty-four of the Revised Administrative Code, as amended, is hereby further amended to read as follows:

“SEC. 84. Bureaus and offices under the Department of Agriculture and Natural Resources. — The Department of Agriculture and Natural Resources shall have executive supervision over the Bureau of Plant Industry, the Bureau of Animal Industry, the Bureau of Forestry, the Bureau of Lands, the Bureau of Mines, the Bureau of Fisheries, the Fiber Inspection Service, matters pertaining to colonies and plantations of public lands, and matters concerning hunting, fisheries, sponges, and other sea-products, including the issuance of licenses therefor.”

Veterinary, Mining Engineers, and Surveyors Examining Boards

SECTION 75. The Secretary of Agriculture and Natural Resources shall assume and exercise, with respect to the Veterinary Examining Board, the Board of Examiners for Mining Engineers, and the Board of Examiners for Surveyors, such prerogatives, functions, and authority as are conferred upon Department Heads by the provisions of Section ten of Act Numbered Four thousand seven, otherwise known as the Reorganization Law of 1932.

Department of Public Works and Communications

SECTION 76. Section eighty-five of the Revised Administrative Code, as amended, is hereby further amended to read as follows:

“SEC. 85. Bureaus and offices under the Department of Public Works and Communications. — The Department of Public Works and Communications shall have executive supervision over the Bureau of Public Works, the Bureau of Posts, the Bureau of Telecommunications, the Government Marine Railway and Repair Shops, the Motor Vehicles Office, the Irrigation Council, and the Flood Control Commission.”

Bureau of Posts

Stamp and Philatelic Division

SECTION 77. There is created in the Bureau of Posts a division to be known as the “Stamp and Philatelic Division.” The Bureau of Posts shall exercise and undertake, through this Division, the following powers, functions, and activities:

(a) To prepare appropriate designs for postage stamps so as to portray and serve the best interest of the Philippines — its history, great men, heroes, memorable events, places of historical and scenic importance, flora and fauna, and agriculture and industries;

(b) To determine and designate dates to be commemorated on postage stamps of the Philippines;

(c) To encourage and promote stamp collecting and better philately by cooperating with organized stamp clubs;

(d) To disseminate and propagate through the radio and press the educational and recreational value of philately in the public schools and other institutions and to the general public;

(e) To build a philatelic library;

(f) To publish Philippine philatelic literature;

(g) To determine when and by what method a stamp will be withdrawn from sale or condemned; and

(h) To undertake all other activities pertaining to philately, national or international.

Bureau of Telecommunications

SECTION 78. There is hereby created a Bureau of Telecommunications. It shall have one chief to be known as Director of Telecommunications who shall be appointed by the President of the Philippines with the consent of the Commission on Appointments of the Congress. Until otherwise provided by law, the salary of the Director of Telecommunications shall be fixed at seven thousand two hundred pesos per annum.

SECTION 79. The Bureau of Telecommunications shall exercise the following powers and duties:

(a) To operate and maintain existing wire-telegraph and radio-telegraph offices, stations, and facilities, and those to be established to restore the pre-war telecommunication service under the Bureau of Posts, as well as such additional offices or stations as may hereafter be established to provide telecommunication service in places requiring such service;

(b) To investigate, consolidate, negotiate for, operate and maintain wire-telephone or radio telephone communication service throughout the Philippines by utilizing such existing facilities in cities, towns, and provinces as may be found feasible and under such terms and conditions or arrangements with the present owners or operators thereof as may be agreed upon to the satisfaction of all concerned;

(c) To prescribe, subject to approval by the Department Head, equitable rates of charges for messages handled by the system and/or for timecalls and other services that may be rendered by said system;

(d) To establish and maintain coastal stations to serve ships at sea or aircrafts and, when public interest so requires, to engage in the international telecommunication service in agreement with other countries desiring to establish such service with the Republic of the Philippines; and

(e) To abide by all existing rules or regulations prescribed by the International Telecommunication Convention relative to the accounting, disposition and exchange of messages handled in the international service, and those that may hereafter be promulgated by said Convention and adhered to by the Government of the Republic of the Philippines.

SECTION 80. All provisions of laws and contracts relating to radio and telegraph stations and cables the enforcement of which has heretofore been vested in the Director of Posts shall hereafter be enforced by the Director of Telecommunications.

SECTION 81. All the personnel, powers, functions, activities, appropriations, properties, equipment, supplies, records and documents pertaining to or intended for the electrical communication service under the Bureau of Posts shall be transferred to the Bureau of Telecommunications.

Motor Vehicles Office

SECTION 82. The Division of Motor Vehicles shall hereafter be known as the Motor Vehicles Office. It shall have one chief to be known as Chief of the Motor Vehicles Office whose compensation, until otherwise provided by law shall be seven thousand two hundred pesos per annum. The Chief of the Motor Vehicles Office shall be in charge of the administration of the Motor Vehicles Law. Wherever the words “Director of Public Works” and “Bureau of Public Works” are used in said law, the same shall be substituted by the words “Chief of the Motor Vehicles Office” and “Motor Vehicles Office,” respectively.

Department of Education

Changes in Names of Bureaus

SECTION 83. The Department of Instruction shall hereafter be known as the Department of Education; the Bureau of Education as the Bureau of Public Schools; the Office of Private Education as the Bureau of Private Schools; and the National Library as the Bureau of Public Libraries.

SECTION 84. Section eighty-two of the Revised Administrative Code, as amended, is hereby further amended to read as follows:

“SEC. 82. Bureaus and offices under the Department of Education. — The Department of Education shall have executive supervision over the Bureau of Public Schools, the Bureau of Private Schools, the Bureau of Public Libraries, the Board on Textbooks, the Institute of National Language, and the Philippines Historical Committee.”

Division of Physical Education

SECTION 85. The Office of the National Physical Director shall hereafter function as a unit directly attached to the Office of the Secretary of Education and shall be renamed the Division of Physical Education.

Division of Adult Education

SECTION 86. The Office of Adult Education is hereby converted into the Division of Adult Education. The said Division, together with its functions, powers, duties, personnel, records, equipment, property and unexpended balances of appropriations, is transferred to the Bureau of Public Schools.

Board on Documents Abolished

SECTION 87. The Board on Documents created by Commonwealth Act Numbered fifty-four is hereby abolished, and its powers, functions and duties shall be assumed and exercised by the Director of Public Libraries.

National Council of Education Abolished

SECTION 88. The National Council of Education created and allocated under the Department of Public Instruction by Executive Order Numbered Nineteen, dated February nineteenth, nineteen hundred and thirty-six, is hereby abolished, and its records, property, equipment, and unexpended balances of appropriations, and personnel except the Chairman, the members, and the executive secretary, are transferred to the National Commission on Educational, Scientific and Cultural Matters created under Republic Act Numbered One hundred seventy-six.

Department of Labor

SECTION 89. Section four of Act Numbered Four thousand one hundred twenty-one, as amended by Commonwealth Act Numbered One hundred thirty-nine, is hereby further amended to read as follows:

“SEC. 4. Bureaus and offices under the Department of Labor. — The Department of Labor shall have executive supervision over the Bureau of Labor, the Labor Placement Office, the Safety Inspection Service, and all bureaus, divisions and offices hereafter created concerning labor alone or labor in its relation with capital, and also the proper enforcement of all laws relative to labor and capital in the Philippines and over all other matters related to the welfare of the Filipino laborers in this country and abroad.”

Department of National Defense

SECTION 90. Section two of Commonwealth Act Numbered Four hundred thirty is hereby amended to read as follows:

“SEC. 2. Bureaus and offices under the Department of National Defense. — The Department of National Defense shall be charged with the duty of supervising the national defense program of the country, and for this purpose, it shall have executive supervision over the Armed Forces of the Philippines, the Bureau of Coast and Geodetic Survey, and the Philippine Veterans Board. This Department shall function under the executive control of the Secretary of National Defense who may be assisted by an Undersecretary.”

Bureau of Coast and Geodetic Survey

SECTION 91. (a) There shall be established in the Bureau of Coast and Geodetic Survey a commissioned corps of officer distributed in the grades of captain, commander, lieutenant commander, lieutenant, lieutenant (junior grade), and ensign: Provided, That the number of officers in the grades of captain and commander shall not exceed five per centum and eight per centum, respectively, of the total authorized number of commissioned officers on the active list, except that the number of commanders may be increased by the number of vacancies in the captain grade.

(b) Officers of the corps shall be citizens of the Philippines and shall rank with and after officers of corresponding grades in the Armed Forces of the Philippines with the same length of service in grade, as follows: captain with colonel, commander with lieutenant colonel, lieutenant commander with major, lieutenant with captain, lieutenant (junior grade) with first lieutenant, and ensign with second lieutenant.

(c) Whenever a final fraction occurs in computing the authorized number of officers of any grade, the nearest whole number shall be regarded as the authorized number: Provided, That no officers shall be reduced in grade or pay or separated from the active list as the result of any computations made to determine the authorized number of officers in the various grades.

SECTION 92. (a) The President is authorized to appoint the commissioned officers of the Bureau of Coast and Geodetic Survey: Provided, That, except as provided in paragraph (b) of this section, all original appointments shall be made in the grade of ensign from among cadets who have qualified in accordance with this section: And provided, further, That all appointments and promotions to the rank of captain or commander shall be made with the consent of the Commission on Appointments of the Congress.

(b) Upon the effective date of this Order, the President is authorized to appoint to commissioned grades authorized in section 91 (a), (b), and (c) hereof qualified persons then serving in the Bureau of Coast and Geodetic Survey as field or administrative officers, without reference to the requirements specified in paragraph (a) of this section and Section 94 (b) hereof.

(c) The Director and the Assistant Director of the Bureau of Coast and Geodetic Survey shall have the ranks of captain and commander, respectively, and shall be appointed by the President, with the consent of the Commission on Appointments of the Congress from the list of commissioned officers of the Bureau not below the rank of lieutenant commander and lieutenant, respectively: Provided, That persons serving as Director and Assistant Director appointed by the President with the consent of the Commission on Appointments of the Congress upon the approval of this Order shall have the ranks of captain and commander, respectively.

SECTION 93. (a) Cadets shall be appointed by the Secretary of National Defense, upon recommendation of the Director of the Bureau of Coast and Geodetic Survey, from a list of eligibles established under such regulations as the Secretary of National Defense may prescribe. The number of cadets shall not exceed six, except that the number of cadets may be increased by the number of vacancies in the ensign grade. Persons to be eligible for appointment as cadets shall be citizens of the Philippines and shall have a bachelor’s degree in civil, mechanical, geodetic or electrical engineering from a college or university of recognized standing.

(b) Cadets shall be promoted to ensign under such regulations as the Secretary of National Defense may prescribe as vacancies occur in the commissioned force, after not less than six months of continuous and satisfactory service as cadet.

SECTION 94. (a) Commissioned officers of the Bureau of Coast and Geodetic Survey shall be promoted within the limitations imposed under Section 91 hereof, according to a system to be approved by the Secretary of National Defense, and shall receive the same pay and allowances as are now or may hereafter be authorized for officers of corresponding grades in the Armed Forces of the Philippines: Provided, That for officers commissioned in accordance with Section 92 (b) hereof, longevity pay shall be based on the total of all Coast and Geodetic Survey service completed on the date of commission.

(b) Promotions to all grades shall be made by the President: Provided, That no person shall be appointed ensign or shall be promoted from ensign to lieutenant (junior grade), or from lieutenant (junior grade) to lieutenant until after passing a satisfactory mental and physical examination conducted in accordance with regulations prescribed by the Secretary of National Defense.

SECTION 95. All laws now in effect or which hereafter may enacted relating to retirement, separation, leaves of absence, medical treatment, commissary, and all other privileges for officers of the Armed Forces of the Philippines shall apply to commissioned officers of the Bureau of Coast and Geodetic Survey.

Armed Forces of the Philippines

SECTION 96. The Armed Forces of the Philippines will consist of the Regular Force and the Reserve Force divided in major commands as hereinafter provided.

Commander-in-Chief

SECTION 97. The President of the Philippines is Commander-in-Chief of the Armed Forces of the Philippines. He exercises command through the Secretary of National Defense who directly represents him.

Chief of Staff

SECTION 98. The Chief of Staff executes the President’s command functions in relation to strategy, tactics, and operations. He is the immediate adviser of the Secretary of National Defense, and is responsible for the planning, development, and execution of the national defense program as prescribed by the Secretary of National Defense. He has command of all elements of the Armed Forces, and in the discharge of this responsibility, the Headquarters National Defense Forces shall function as a Field Headquarters in addition to its role as an administrative headquarters. He is authorized to prescribe the functions, duties, and powers of the various Staffs, Services, installations, and other units of the Armed Forces, and to issue from time to time such detailed instructions regarding personnel, funds, records, property, routing of correspondence, and such other matters as may be necessary to carry out the provisions of this Order. Orders, regulations, directives, and instructions are published in the name of the Chief of Staff, by order of the Secretary of National Defense.

Deputy Chief of Staff

SECTION 99. There shall be a Deputy Chief of Staff to assist the Chief of Staff and to perform his functions during his absence. The Deputy Chief of Staff shall also exercise general supervision over the General and Special Staffs and the Administrative and Technical Services.

General Council

SECTION 100. The General Council shall consist of the members of the General Staff and the Commanders of the Major Commands. The Council shall review and comment on any studies and plans which may be referred to it by the Chief of Staff. The Council or any of its individual members may initiate recommendations and suggestions to the Chief of Staff on any matter pertaining to the Armed Forces, especially on matters of long-range planning. The group functions are entirely advisory.

National Defense General Staff

SECTION 101. The National Defense General Staff shall be composed of the Chief of Staff, the Deputy Chief of Staff, the Assistant Chiefs of Staff from the General Staff Divisions, the Secretary to the National Defense General Staff, and such other officers of grades not below that of first lieutenant as may be detailed thereto from time to time by the Chief of Staff with the approval of the President of the Philippines. All officers in the Headquarters National Defense Forces with the rank of not lower than first lieutenant serving in or with the General Staff or performing duties that are of General Staff nature are designated as members of the General Staff Corps. Assignment to, or relief from, the National Defense General Staff shall be accomplished under such rules and regulations as the Chief of Staff may prescribe with the approval of the Secretary of National Defense.

Divisions of General Staff

SECTION 102. The National Defense General Staff shall be organized into five Divisions, each under the direction of an Assistant Chief of Staff, as follows:

(a) Plans and Operations Division (OPD);

(b) Personnel and Administration Division (G-1);

(c) Intelligence Division (G-2);

(d) Organization and Training Division (G-3); and

(e) Service, Supply and Procurement Division (G-4).

SECTION 103. The heads of the Divisions of the National Defense General Staff, acting as assistants to the Chief of Staff, will plan and coordinate the development and operations of the Armed Forces in accordance with the following principles:

(a) They plan, direct, coordinate, and supervise. They assist the Chief of Staff in getting assigned missions or duties done by the subordinate commands and agencies, but they are not in the chain of command.

(b) By direct contact with operating agencies, they insure that orders, directives, instructions, and plans are carried out faithfully.

(c) Decentralization to the fullest possible degree should be observed.

(d) Unnecessary duplication and overlapping of activities should be avoided.

(e) Personnel of the General Staff shall be representative of the Air, Naval, and Ground Forces.

(f) Only officers in the General Staff Corps Eligibility List may be assigned to the National Defense General Staff, but if not enough officers are available to fill the necessary General Staff positions, officers from other branches may be assigned. However, such assignment alone does not confer eligibility to the General Staff Corps Eligibility List nor the privilege of wearing the General Staff Corps insignia.

Administrative Staffs and Services

SECTION 104. The following constitute the Administrative Staffs and Services under the Chief of Staff:

(a) Adjutant General’s Service;

(b) Judge Advocate General’s Service;

(c) Educational and Recreational Service; and

(d) Chaplain Service.

Technical Staffs and Services

SECTION 105.     The following constitute the Technical Staffs and Services under the Chief of Staff:

(a) Corps of Engineers;

(b) Ordnance Service;

(c) Quartermaster Service;

(d) Signal Corps;

(e) Medical Service; and

(f) Finance Service.

National Defense Special Staff Divisions

SECTION 106. The following constitute the National Defense Special Staff Divisions under the Chief of Staff:

(a) Office of the Inspector General;

(b) Research and Development Division;

(c) Public and Legislative Relations Division;

(d) Budget Division; and

(e) Historical Division.

Each unit headed by a Chief of Division shall have such assistants as the Chief of Staff may direct. The Chiefs of Administrative Staffs and Services, Technical Staffs and Services, and of Special Staff Divisions shall be responsible for the efficient performance of the duties pertaining to their divisions and for the proper execution of all instructions and orders prescribed by the Chief of Staff.

Major Commands

SECTION 107. The Regular Force shall be divided into Major Commands and such other permanent installations, separate commands or task forces as may be created by authority of the President. There are hereby created the following Major Commands:

(a) Philippine Ground Force;

(b) Philippine Air Force; and

(c) Philippine Naval Patrol.

Philippine Ground Force

The Philippine Ground Force is charged with the mission of providing for the land defense of the Philippines and with such other missions as the President may direct. It shall be responsible for the determination of its requirements and provisions and for those of its units and attached services with respect to their personnel, materiel, and facilities; and for the preparation of plans for the development, organization, equipment, tactical operations, supply and maintenance thereof, including replacements.

It is also charged with the training and instruction of all trainees, the training of ground force reserve units, and such other missions as the President may direct.

Tenure of Office and Temporary Promotions

SECTION 108. The Commanders of the Major Commands and of the Military Areas, the Superintendent of the Philippine Military Academy, and the heads of the National Defense General Staff Divisions, the National Defense Special Staffs, and the Administrative and Technical Staffs and Services shall hold their positions for a period not exceeding three years, unless retained by authority of the Commander-in-Chief. By authority of the President, they may be temporarily promoted to grades authorized for their respective positions without vacating their permanent commissioned grades.

Military Areas

SECTION 109. The ten military districts are abolished and four Military Areas are hereby established as separate subordinate commands under the Chief of Staff which are designated as:

I. First Military Area;

II. Second Military Area;

III. Third Military Area; and

IV. Fourth Military Area.

The President shall, from time to time, determine the territorial extent of each Military Area. He may abolish a Military Area or create additional ones whenever he deems it necessary. Each Military Area shall be under a commander and such assistants as the Chief of Staff may direct. The commander shall be responsible for the efficient performance of the duties and the execution of all instructions and orders that may be issued by the Chief of Staff from time to time.

Philippine Air Force

SECTION 110. The present Philippine Army Air Force is hereby converted into the Philippine Air Force and raised to the category of a Major Command. All the powers, functions, duties, appropriations, personnel, records, armament, weapons, equipment, supplies, clothing, buildings, real estate and the appurtenances thereto, and other properties assigned or allocated to the Philippine Army Air Force are hereby transferred to the Philippine Air Force.

SECTION 111. The Philippine Air Force is charged with the primary mission of providing for the air defense of the Philippines. It shall be responsible, under policies prescribed by the Chief of Staff, for the determination of requirements and the provisions for the facilities and the preparation of necessary plans for the development, organization, equipment, training, tactical operations, supply and maintenance thereof, including replacements.

Commander of the Air Force

SECTION 112. The Philippine Air Force shall have a Commander with such rank as shall be determined by the President of the Philippines. He is charged with the administration, control, and operation of the Air Force under the Chief of Staff.

SECTION 113. Officers and enlisted men of the Philippine Air Force shall continue to be paid under existing laws and orders until otherwise provided for by law.

Philippine Naval Patrol

SECTION 114. The former Offshore Patrol is hereby converted into the Philippine Naval Patrol and raised to the category of a Major Command. All the powers, functions, duties, appropriations, personnel, records, armament, weapons, equipment, supplies, clothing, buildings, real estate and the appurtenances thereto, and other properties assigned or allocated to the former Offshore Patrol are hereby transferred to the Philippine Naval Patrol.

SECTION 115. The Philippine Naval Patrol is charged with the mission of carrying out sea patrol operations and defense action in Philippine waters, and the instruction and training of naval trainees and reserve units. Whenever properly authorized, it shall attend to, or render assistance in, the enforcement of laws and regulations pertaining to customs revenue, navigation, immigration, fishing, quarantine, and the neutrality of the Philippines. It shall be responsible for the determination, under policies prescribed by the Chief of Staff, of requirements and the provisions for its units with respect to personnel, materiel, facilities; and for the preparation of necessary plans for the development, organization, equipment, training, tactical operations, supply and maintenance thereof, including replacements.

Commander of Naval Patrol

SECTION 116. The Philippine Naval Patrol shall have a Commander with such rank as shall be determined by the President of the Philippines. He is charged with the administration, control, and operation of the Philippine Naval Patrol under the Chief of Staff.

The Revenue Cutter Service, The Lighthouse Service,
and the Philippine Nautical School

SECTION 117. The Philippine Nautical School under the Department of National Defense is hereby transferred to the Philippine Naval Patrol, together with its personnel, appropriations, properties, equipment, and records.

The revenue cutter service and the lighthouse service which have been transferred from the Bureau of Customs to the Philippine Naval Patrol, and the Philippine Nautical School shall be maintained as separate and distinct entities from the Naval Patrol proper and they shall retain their own personnel.

Commissioned and Enlisted Personnel

SECTION 118. Authorized commissioned and enlisted grades for personnel of the Philippine Naval Patrol, with their equivalent in the Ground Force and Air Force, shall be as follows:

Officers
Naval Patrol Grade	Ground Force Equivalent Grade
Commodore	Brigadier General
Captain	Colonel
Commander	Lt.-Colonel
Lt.-Commander	Major
Lieutenant (Senior Grade)	Captain
Lieutenant (Junior Grade)	1st Lieutenant
Ensign	2nd Lieutenant
Enlisted Men
Chief Petty Officer	Master Sergeant
Petty Officer 1st Class	Technical Sergeant
Petty Officer 2nd Class	Staff Sergeant
Petty Officer 3rd Class	Sergeant
Seaman 1st Class orFireman 1st Class	Corporal
Seaman 2nd Class orFireman 2nd Class	Private First Class
Apprentice Seaman	Private

Pay and Allowances

SECTION 119. The pay and allowances of officers and enlisted men of the Philippine Naval Patrol shall be the same as those prescribed for the corresponding ranks and grades in the Armed Forces, plus an additional amount equivalent to ten per cent of the base pay of officers and enlisted men while assigned on sea duty. Additional ration allowances may be provided for officers and men of the Philippine Naval Patrol assigned on sea duty in accordance with its annual appropriations.

Headquarters

SECTION 120. The Headquarters Army of the Philippines and the Central General Staff are hereby re-designated the Headquarters National Defense Forces and the National Defense General Staff, respectively.

Separate Rosters

SECTION 121. The Philippine Air Force and the Philippine Naval Patrol shall each keep a roster of its officers and men separate from that of the rest of the Armed Forces.

Uniforms and Insignia

SECTION 122. With the approval of the President of the Philippines, the Chief of Staff is authorized to prescribe the uniforms and insignia of the officers and enlisted men of all the Armed Forces of the Philippines.

Authority to Modify Existing Organizations

SECTION 123. Notwithstanding the foregoing provisions, the President of the Philippines may, in the interest of economy, efficiency, and simplicity abolish or modify existing major commands, staff divisions and sections, services, military areas, installations, task forces, and other units, establish new ones.

Laws Repealed

SECTION 124. The provision of General Order Numbered Six, dated June twenty-first, nineteen hundred and thirty-nine, entitled “Composition of the Central General Staff of the Philippine Army,” and of Executive Order Numbered One hundred, dated March fifteenth, nineteen hundred and forty-six, on the Peace and Order Functions of the Military Police Command, and of all other laws, orders or regulations inconsistent with any of the provisions of this Executive Order are hereby repealed or modified accordingly.

Department of Health

SECTION 125. The second paragraph of Executive Order Numbered Three hundred seventeen, dated January seventh, nineteen hundred and forty-one, is hereby amended to read as follows:

“The Department of Health shall be charged with the protection of the health of the people, the maintenance of sanitary conditions, and the proper enforcement of the laws and regulations relative to health, sanitation, food, drugs and narcotics, slum housing, garbage and other waste disposal, and for these purposes, it shall exercise executive supervision over the Bureau of Health; the Bureau of Quarantine; the Bureau of Hospitals; the Board of Medical Examiners; the Board of Pharmaceutical Examiners; the Board of Dental Examiners; the Board of Optical Examiners; the Board of Examiners for Nurses; the National Advisory Health Council; the Alabang Vaccine and Serum Laboratories; the health departments of chartered cities; the national, provincial, city and municipal hospitals, dispensaries and clinics except the Philippine General Hospital; the public markets and slaughter-houses; hotels, restaurants, and other food establishments; and health resorts and similar establishments.”

Alabang Vaccine and Serum Laboratories Transferred to Department of Health

SECTION 126. The Alabang Vaccine and Serum Laboratories together with its functions, duties, personnel, records, documents, equipment, supplies and other property, and the Alabang Laboratories Revolving Fund are hereby transferred to the Office of the Secretary of Health. The Secretary of Health, the Commissioner of the Budget and the President of the University of the Philippines shall determine the personnel who should be transferred to the Office of the Secretary of Health in case they render services both to the University of the Philippines and the Alabang Vaccine and Serum Laboratories.

SECTION 127. Samples of biological products manufactured in the Alabang Vaccine and Serum Laboratories shall be submitted at least once a month to the Institute of Science for analysis to determine their purity and efficacy. Copies of the report showing the results of the analysis shall be furnished the Office of the President. Rules and regulations for the securing and submission of samples of biological products for analysis shall be issued jointly by the Department of Health and the Institute of Science.

Bureau of Health

SECTION 128. Section nine hundred thirty-eight of the Revised Administrative Code is hereby amended to read as follows:

“SEC. 938. Functions of the Bureau of Health. — The Bureau of Health is charged with the protection of the health of the people of the Philippines and the maintenance of sanitary conditions therein. Its general powers and duties shall extend to and comprehend, among other things:

“(a) The detection and detention of persons suffering from dangerous communicable diseases and the making of provision for their isolation until they shall cease to be source of infection;

(b) The control over the sanitation of schoolhouses and school premises and over prisons, penal settlements, jails, and other places for the detention of arrested persons, convicts, or offenders of any sort;

“(c) The control and supervision of school medical service in private schools, colleges, and universities;

“(d) The effectuation and maintenance of internal quarantine in times of epidemic or threatened spread of any dangerous communicable diseases;

“(e) The inspection and investigation of the sanitary condition of coastwise passenger vessels;

“(f) The sanitary disposal of the dead and the control over the sanitation of cemeteries;

“(g) The effectuation, at regular intervals or from time to time as conditions may require, of systematic vaccination and inoculations of the people of the country by the use of virus, vaccines, sera, or other prophylactics;

“(h) The dissemination of hygienic information among the people and especially the inculcation of knowledge as to the proper care of infants and the methods of preventing and controlling dangerous communicable diseases;

“(i) The making, from time to time, of adequate inspections of all health organizations or offices primarily concerned with the prevention of diseases, taking account of their equipment and facilities and the character of their work; and

“(j) The making of an epidemiological study and/or investigation of preventable diseases, especially those of an epidemic or communicable character; and the collection of statistical data or other information relative to the sources of mortality in the Philippines and the effects of localities, employments, conditions, habits, foods, beverages, and medicines on the health of the people; and the chemical composition and medical properties of the minero-medicinal waters of the Philippines.”

Bureau of Hospitals

SECTION 129. There is hereby created a Bureau of Hospitals under the executive supervision and control of the Department of Health. The Bureau of Hospitals shall have one chief to be known as Director of Hospitals whose salary shall be seven thousand two hundred pesos per annum. The general powers and duties of the Bureau of Hospitals shall extend to and comprehend, among other things:

(a) The conduct and management of Government hospitals (except the Philippine General Hospital), leprosaria, and sanatoria;

(b) The control and supervision of all hospitals for dangerous communicable diseases;

(c) The control and supervision of maternity, mental, orthopedic, tuberculosis, and other special hospitals;

(d) The control and supervision of skin disease clinics, venereal disease clinics, and other medical units;

(e) The control and supervision of puericulture centers, charity clinics, and dispensaries; and

(f) The supervision of private hospitals.

Division of Hospitals Abolished

SECTION 130. The Division of Hospitals under the Bureau of Health is hereby abolished and all its powers, functions, activities, personnel, documents, records, equipment, property, and appropriations are transferred to the Bureau of Hospitals.

Division of Child and Maternal Health Transferred

SECTION 131. The powers, functions, activities, personnel, records, equipment, property, and appropriations of the Division of Child and Maternal Health under the Bureau of Health are hereby transferred to the Bureau of Hospitals.

Indigent Children’s Hospital Transferred

SECTION 132. The Indigent Children’s Hospital under the Bureau of Public Welfare, together with its personnel, records, equipment, property, powers, functions, activities, and appropriations are transferred to the Bureau of Hospitals.

Department of Commerce and Industry

SECTION 133. There is created the Department of Commerce and Industry which shall have charge of the regulation, control, promotion, and development of the commerce and industry of the country.

SECTION 134. The Department of Commerce and Industry shall have executive supervision over the Bureau of Commerce, excluding its function of supervising the organization and operation of provincial trading corporations; the Securities and Exchange Commission, the Weather Bureau, the Patent Office, the Civil Aeronautics Board, the Civil Aeronautics Administration, the Radio Control Division, the Manila Trading Center and Exchange, the Sugar Quota Office, the Radio Control Board, including the power of supervision and control over the establishment and operation of all radio stations (receiving, transmitting, or broadcasting) other than the Government radio station and those maintained by the Bureau of Posts. The Secretary of Commerce and Industry shall assume and exercise with respect to the Board of Examiners for Aeronautical Engineers such prerogatives, functions, and authority as are conferred upon Department Heads by the provisions of section ten of Act Numbered Four thousand seven, otherwise known as the Reorganization Law of 1932.

SECTION 135. All the personnel, powers, functions, activities, equipment, materials, records, and unexpended balances of funds or appropriations pertaining to the bureaus, offices, and services placed under the executive supervision of the Department of Commerce and Industry are hereby transferred thereto.

Civil Aeronautics Administration

Aviation Terms Defined

SECTION 136. The following definitions shall control in the application and construction of this Order and other laws in so far as they apply to the Civil Aeronautics Board and the Civil Aeronautics Administration, unless the context otherwise requires:

(a) “Administrator” means the Administrator of the Civil Aeronautics Administration.

(b) “Aeronautics” means the art or science of aerial flight, or the science that treats of the operation of aircraft.

(c) “Air commerce” shall be taken to mean and include the transportation, in whole or in part, by aircraft of persons, property, or mail; the navigation of aircraft in furtherance of a business; or the navigation of aircraft from one place to another in the conduct of a business.

(d) “Air transportation” means carriage of persons, property, or mail, in whole or in part by aircraft.

(e) “Domestic air transportation” and “foreign air transportation” respectively mean the carriage by aircraft of persons, property, or mail for hire, (1) between places within the limits of the territory of the Republic of the Philippines and (2) between a place in any part of the territory of the Philippines and any place outside thereof, whether such carriage is wholly by aircraft or partly by aircraft and partly by other means of transportation.

(f) “Aircraft” means any contrivance now known or hereafter invented, used, or designed for navigation of, or flight in, the air.

(g) “Aircraft engine” means a device used, or intended to be used, for propulsion of aircraft and includes all parts, appurtenances, and accessories thereof other than propellers.

(h) “Airman” means (1) any individual, such as the person in command, the pilot, mechanic, or any member of the crew, who engages or assists in the navigation or operation of aircraft while under way; (2) any individual who is directly in charge of or actually performs the inspection, maintenance, overhauling or repair of aircraft, aircraft engines, propellers, or appliances; and (3) any individual who serves in the capacity of aircraft dispatcher or air-traffic control operator.

(i) “Air navigation facility” shall include any airdrome, emergency landing field, light or other signal structure, radio directional finding facility, radio or other electrical communication facility, and any other structure or facility used as an aid to air navigation.

(j) “Airdrome” means an airport or a defined area, either on land or on water, including any building or installations thereon, normally used for the take-off and landing or alighting of aircraft, and which provides facilities for shelter, supply and repair of aircraft, or a place used regularly for receiving or discharging aircraft passengers or cargo.

(k) “Emergency landing field” means any locality, either on water or on land, which is adapted for taking-off and landing of aircraft located along an airway, and is intermediate to airports connected by the airways, but which is not equipped with facilities for shelter, supply, and repair of aircraft and is not used regularly for the receipt or discharge of passengers or cargo by air.

(l) “Airworthiness” means that condition in which an aircraft, its engines, propellers, and other components and accessories are of proper design and construction, and are safe for air navigation purposes, such design and construction being consistent with accepted engineering practice and in accordance with aerodynamic laws and aircraft science.

(m) “Airway” is a designated path in an air route identified by an area of specified width on the surface of the earth.

(n) “Appliances” means instruments, equipment, apparatus, parts, appurtenances, or accessories of whatever description which are used or are capable of being, or intended to be, used in the navigation, operation, or control of aircraft in flight (including parachutes and communication equipment and any other mechanism installed in or attached to aircraft during flight), and which are not a part or parts of aircraft, aircraft engines or propellers.

(o) The term “citizens of the Philippines” includes (a) those enumerated in Section one, Article six of the Constitution of the Philippines; (b) a partnership of which all the members are citizens as defined in the Constitution; (c) a corporation or association created or organized under the laws of the Philippines, of which the directing head and two-thirds or more of the members of the Board of Directors and other managing officers thereof, are citizens of the Philippines, and in which sixty-six and two-thirds per centum of the voting interest is owned or controlled by persons who are citizens of the Philippines.

(p) “Person” means and includes individuals, partnerships, joint enterprises, associations and/or corporations.

(q) “Foreign air carrier” means any person, not a citizen of the Philippines, who undertakes, whether directly or indirectly, or by lease or any other arrangements, to engage in foreign air transportation.

(r) “Mail” means Philippine mail and foreign-transit mail.

(s) “Navigation of aircraft” or “navigate aircraft” includes the piloting of aircraft.

(t) “Operation of aircraft” or “operate aircraft” means the use of aircraft for the purpose of air navigation and includes the navigation of aircraft. Any person who causes or authorizes the operation of aircraft, whether with or without the right of legal control (in the capacity of waiver, lessee, or otherwise) of aircraft, shall be deemed to be engaged in the operation of aircraft within the meaning of this Order.

(u) “Propeller” includes all parts, appurtenances, and accessories thereof.

Objectives of Civil Aeronautics Board and the Civil Aeronautics Administration

SECTION 137. In the exercise and performance of its powers and duties under this Executive Order, the Civil Aeronautics Board and the Civil Aeronautics Administration shall endeavor to attain, among others, the following objectives:

(a) The development and utilization of the air potential of the Philippines;

(b) The encouragement and development of an air transportation system properly adapted to the present and future needs of foreign and domestic commerce of the Philippines, of the postal service, and of the national defense;

(c) The regulation and control of air transportation in such manner as to insure the highest degree of safety, the fostering of sound economic condition and the coordination of air transportation;

(d) The promotion of adequate, economical, and efficient service by air carriers at reasonable charges, without unjust discriminations, undue preferences or advantages, or unfair or destructive competitive practices;

(e) Competition to the extent necessary to insure the sound development of an air transportation system properly adapted to the needs of the foreign and domestic commerce of the Philippines, of the postal service, and of the national defense;

(f) The encouragement and development of civil aeronautics.

Civil Aeronautics Board

SECTION 138. There is hereby created a Civil Aeronautics Board which shall be composed of the Secretary of Commerce and Industry, as Chairman, the Administrator of the Civil Aeronautics Administration, the Commander of the Philippine Air Force, and two other persons, as members, to be appointed by the President. They shall hold office at the pleasure of the President and shall be entitled to a per diem for each meeting actually attended at such amount as may be fixed by the President. During the absence or incapacity of the Secretary of Commerce, the Administrator shall act as Chairman. No member of the Board shall have any pecuniary interest or shall own any stock or bond in any civil aeronautics enterprise.

SECTION 139. The Chairman and at least two members of the Board shall constitute a quorum to transact business. A majority vote of the members constituting a quorum shall be necessary for a valid and enforceable decision or order of the Board.

SECTION 140. No person shall engage in air commerce nor shall any person be licensed as an airman unless he is a citizen of the Philippines: Provided, however, That the Civil Aeronautics Board may, for a period not exceeding ten years, authorize the grant of an air commerce permit or issue licenses for airmen to aliens whose country grants the same right and privilege to Filipino citizens, all laws to the contrary notwithstanding.

SECTION 141. The Board shall have the following powers and duties:

(a) To promulgate rules and regulations governing the issuance, denial, amendment, suspension, or revocation of any permit or certificate authorizing a foreign air carrier to engage in air transportation between the Philippines and foreign countries.

(b) To promulgate rules and regulations particularly relating to the economic aspects of air transportation, including the following specific powers and duties:

(1) To issue, deny, transfer, amend, alter, modify, cancel, suspend, or revoke any permit or the terms, conditions, and limitations contained therein, authorizing a person who is a citizen of the Philippines to engage in air commerce within or between the Philippines and another country;

(2) To require the submission of periodic and special reports by any person engaged in air commerce in such manner and form as the Board may prescribe; to require any person engaged in air commerce to file with the Board a true copy of each and every contract, agreement, understanding, or arrangement pertaining to air commerce transactions, between such person and any other person engaged in air commerce; to prescribe the forms of any and all accounts, records, and memoranda to be kept by persons engaged in air commerce including the accounts, records, and memoranda of the movements of the traffic, as well as the receipts and expenditures of money; and to transmit a report describing the shares of stock or other interest held by such persons engaged in air commerce with any person engaged in air commerce in any phase of aeronautics, and the holding of the stock in, and control of, other persons engaged in any phase of aeronautics;

(3) To inquire into the management of the business of any person in air commerce and, to the extent reasonably necessary for such inquiry, to obtain from such person engaged in air commerce, and from any person controlling or controlled by, or under common control with, such person engaged in air commerce, full and complete reports and other information;

(4) To approve or disapprove consolidation, merger, purchase, lease, operating contract or acquisition of control between persons engaged in air commerce; and

(5) To investigate, upon complaint or upon its own initiative, whether or not any individual or person engaged in air commerce is violating any of the provision of this Order, or the rules and regulations issued thereunder, and to take such action, consistent with the provisions of this Executive Order, as may be necessary to prevent further violation of such provision, rules and regulations.

(c) To review, revise, reverse, modify, or affirm on appeal any administrative decision or order of the Administrator on matters pertaining to the —

(1) Grounding of airmen and aircraft;

(2) Revocation or suspension of any certificate or the denial by the Administrator to issue any certificate.

(d) To perform such acts, conduct such investigations, issue and amend such orders, and make and amend such general or special rules, regulations, and procedures, as it shall deem necessary in the exercise and performance of its powers and duties under this Executive Order.

SECTION 142. The Board shall submit an annual report to the President which shall contain such information and data collected by the Board which may be of value in the determination of questions connected with the development of civil aeronautics, together with such recommendation for additional legislation relating thereto as the Board may deem necessary.

Civil Aeronautics Administration; Administrator and Deputy Administrator

SECTION 143. There is hereby created the Civil Aeronautics Administration under the administrative supervision and control of the Department of Commerce and Industry. The Administration shall have one chief and one assistant chief to be designated Administrator and Deputy Administrator, respectively. The Administrator and the Deputy Administrator shall be appointed by the President of the Philippines, with the consent of the Commission on Appointments of the Congress. Until otherwise provided by law, the Administrator and the Deputy Administrator shall receive an annual compensation of seven thousand two hundred pesos and six thousand pesos per annum, respectively. The Administrator shall be the administrative head of the Civil Aeronautics Administration and shall have charge of the administration of all laws relating to civil aeronautics in the Philippines. He shall submit to the Secretary of Commerce and Industry a report in writing of the activities and transactions of his Office, annually or oftener as may be required. During the absence of the Administrator, the Deputy Administrator shall act as, and perform the duties of, the Administrator, in addition to his own duties.

Qualifications of Deputy Administrator

SECTION 144. No person shall be appointed Deputy Administrator unless he be a citizen of the Philippines and possesses at least one of the following qualifications:

(a) He must meet the qualifications and requirements prescribed for a pilot to hold an airline transport license or its equivalent;

(b) He must meet the qualifications of a command pilot of the Philippine Air Force; or

(c) He must have at least ten years’ experience in aeronautical engineering or in the operational phase of civil aviation or its equivalent.

Powers and Duties of Civil Aeronautics Administration

SECTION 145. Subject to the general control and supervision of the Secretary of Commerce and Industry, the Civil Aeronautics Administration is empowered:

(a) To promote safety of flight in air commerce by prescribing and revising from time to time:

(1) Minimum standards governing the design, materials, workmanship, construction, and performance of aircraft, aircraft engines, propellers, and appliances;

(2) Rules and regulations and minimum standards governing:

(aa) the inspection, servicing, and overhauling of aircraft, aircraft engines, propellers, and appliances;

(bb) the equipment and facilities for such inspection, servicing, and overhauling;

(cc) the periods for, and the manner in, which inspection, servicing, and overhauling shall be made including provision for examinations and reports by properly qualified private persons whose examinations or reports the Administrator may accept in lieu of those made by its officers and employees.

(3) Rules and regulations governing the reserve supply of aircraft, aircraft engines, propellers, appliances, and aircraft fuel and oil, required in the interest of safety, including the reserve supply of aircraft fuel and oil which shall be carried in flight;

(4) Rules and regulations governing the maximum hours or periods of service of airmen and other employees of air carriers;

(5) Such rules and regulations, or minimum standards, governing other practices, methods, and procedures, as the Administrator may find necessary; and

(6) Air traffic rules governing the flight, navigation, protection, and identification of aircraft, including rules as to safe altitudes of flight, the prevention of collisions between aircrafts, and between aircraft and land or water vehicles;

(b) To promulgate rules and regulations governing the minimum standards, examination, and rating of:

(1) Airmen;

(2) Airworthiness of aircraft;

(3) Air navigation facilities for use by aircraft;

(4) Civilian schools giving instruction in flying or in the repair, alteration, maintenance, and overhauling of aircraft, aircraft engines, propellers, and appliances, as to the adequacy of the course of instruction, the suitability and airworthiness of the equipment and the competency of the instructors;

(5) Repair stations or shops for the repair, alteration, maintenance, and overhauling of aircraft, aircraft engines, propellers, or appliances, as to the adequacy and suitability of the equipment, facilities and materials for, and methods of, repair, alteration, maintenance, and overhauling of aircraft, aircraft engines, propellers, and appliances, and the competency of those engaged in the work of giving any instruction therein; and

(6) Such other air agencies as may be necessary in the interest of the public;

and to issue the corresponding certificates, specifying and prescribing such terms, conditions and limitations as are necessary for public interest and safety: Provided, That any order suspending, cancelling, or revoking any such certificate, or denying the issuance of any certificate, by the Administrator may be appealed to the Civil Aeronautics Board whose decision shall be final.

(c) To promulgate rules and regulations governing the registration and recording of aircrafts;

(d) To collect and disseminate information relative to civil aeronautics; to study the possibilities of the development of air commerce and the aeronautical industry; to exchange with foreign governments, through appropriate governmental channels, information pertaining to civil aeronautics; to make arrangements and provide direct correspondence, transmittal and communication of matters relating to the technical and operational phase of aeronautics with the International Civil Aviation Organization and other international aeronautical agencies;

(e) Within the limits of available appropriation, to plan, acquire, design, construct, operate, improve, and manage all necessary airdromes, airways, and air navigation facilities;

(f) To impose and fix, as authorized in Republic Act Numbered One hundred twenty-five, and subject to the approval of the Civil Aeronautics Board, such reasonable charges and fees for the use of government air navigation facilities, and for services rendered by it in the rating of any air navigation facility;

(g) To promulgate rules and regulations governing notification and report of accidents in civil air navigation in the Philippines; to investigate such accidents involving aircraft including the facts, conditions, and attending circumstances relating to each accident and the probable cause thereof, and to submit a report to the Civil Aeronautics Board and such recommendation as will tend to prevent similar accidents in the future: Provided, That, when any accident has resulted in serious or fatal injury, it shall be the duty of the Civil Aeronautics Board to make public such report: Provided, further, That any such statement or any report of such investigation or hearing or any part thereof shall not be admitted as evidence or used for any purpose in any civil suit or action growing out of any matter referred to in any such statement, investigation, hearing or report thereof.

SECTION 146. The provisions of Chapter Five, Sections seven and eight of Commonwealth Act Numbered One hundred sixty-eight, as amended, and the provisions of Chapter Four of Commonwealth Act Numbered One hundred forty-six are herein incorporated: Provided, That charging a fare lower than the minimum rate fixed by competent authority shall be a cause for the revocation or suspension of any permit to engage in air commerce: Provided, further, That violation of any of the provisions of this Executive Order for which no penalty is imposed shall be a cause for the revocation or suspension of any permit to engage in air commerce or any certificate issued under this Order.

SECTION 147. In enforcing the provisions of this Order, the Civil Aeronautics Board, or the Administrator, or any officer of the said Board, or the Civil Aeronautics Administration, designated by it or by the Administrator in writing for such purpose is authorized and empowered to hold public hearings at such places and time as is convenient and practicable, and for the purpose of such hearings, such officer is hereby authorized to administer oaths, examine witnesses, require the preservation of evidence, and issue subpoena for the attendance and examination of witnesses, or the production of books, papers, documents, exhibits or other evidence, or the taking of depositions before any designated individual competent to administer oaths.

Exemptions

SECTION 148. (a) The conditions and requirements of this Order and the rules and regulations issued thereunder shall not apply to aircraft and airmen of the armed forces of the Philippines and of the United States of America.

(b) Foreign aircraft and airmen serving in connection therewith may, except with respect to the observance by such airmen of the air traffic rules, be exempted from the provisions of Section 140 of this Order to the extent, and upon such terms and conditions, as may be prescribed by the Civil Aeronautics Board and/or the Civil Aeronautics Administration as being in the interest of the public.

Civil Aeronautics Commission Abolished
and Its Functions Transferred to Civil Aeronautics Board

SECTION 149. The Civil Aeronautics Commission created in Administrative Order Numbered Seven, dated July thirtieth, nineteen hundred and forty-six, as amended by Administrative Order Numbered Twenty-eight, dated March fifth, nineteen hundred and forty-seven, is hereby abolished and its functions and duties are transferred to the Civil Aeronautics Board herein created. The functions of the Bureau of Aeronautics as provided for in Commonwealth Act Numbered One hundred sixty-eight, as amended, except the functions provided in subsection (b), section six of the said Act, the functions provided in section thirteen of Commonwealth Act Numbered One hundred forty-six pertaining to the power of the Public Service Commission to fix the maximum passenger and freight rates that may be charged by airlines, the functions provided in Republic Act Numbered One hundred twenty-five are hereby transferred to and consolidated in the Civil Aeronautics Administration and/or Civil Aeronautics Board.

Bureau of Aeronautics Abolished

SECTION 150. The Bureau of Aeronautics is hereby abolished and all its personnel, records, property, equipment, funds, and appropriations are hereby transferred to the Civil Aeronautics Administration.

Radio Control Division Transferred

SECTION 151. The Radio Control Division now under the Department of National Defense, together with all its personnel, powers, functions, activities, records, equipment, and unexpended balances of funds or appropriations, is hereby transferred to the Department of Commerce and Industry.

Radio Activities Consolidated in Radio Control Board

SECTION 152. The Radio Board and the Radio Permit Committee, at present under the Office of the President, and the Radio Broadcasting Committee under the Department of National Defense are hereby abolished and all their personnel, functions, powers, activities, and unexpended balances of funds or appropriations are transferred to, and shall be assumed by, a board to be known as the Radio Control Board under the executive supervision of the Department of Commerce and Industry. The Radio Control Board shall be composed of the Undersecretary of Commerce and Industry, as Chairman, and the Press Secretary of the Office of the President, the Collector of Internal Revenue, the Director of Public Schools, and the Director of Posts, as members. The President may appoint additional members if the needs of the service require. The Chief of the Radio Control Division of the Department of Commerce and Industry shall be the Secretary of the Radio Control Board.

Sugar Quota Office

SECTION 153. The Philippine Sugar Administration under the Office of the President is hereby renamed “Sugar Quota Office” and transferred to the Department of Commerce and Industry together with its personnel, records, documents, supplies, equipment and appropriations. The Sugar Quota Office shall have a chief to be known as Sugar Quota Administrator whose salary, until otherwise fixed by law, shall be seven thousand two hundred pesos per annum.

SECTION 154. The Sugar Quota Office shall assume the functions, powers, and duties heretofore exercised by the Philippine Sugar Administration.

Division of Standards

SECTION 155. There is hereby created in the Bureau of Commerce a Division of Standards which shall have charge of inspection, classification, grading, standardization and licensing for export of copra and other agricultural products, as well as industrial, mineral, fish and all other exportable products of the Philippines, subject to such rules and regulations as the Secretary of Commerce and Industry may promulgate with the approval of the President.

Standardization of Products

SECTION 156. The Director of Commerce, through the Division of Standards, shall initiate the fixing and, upon approval of the President, the establishment of the grade, quality, and other standards for all agricultural, forest, mineral, fish, and industrial products of the Philippines (except sugar, abaca and other fibers, and tobacco) for which no standard has as yet been fixed by law, executive order, rules or regulations. The Institute of Science and other branches of the Government having the facilities for the purpose shall render the necessary assistance for the establishment of said standards. Chemical analyses, physical and biological tests necessary for the examination or standardization of products under the provisions of this Order shall be undertaken in the laboratories of the Institute of Science, except when there are other facilities available elsewhere.

Export of Philippine Products

SECTION 157. No product of the Philippines for which a standard has been prescribed in accordance with this Order, unless it is only in small quantity or is not for sale but for private consumption, shall be exported until it shall have been inspected by the Director of Commerce or his duly authorized representative and found to conform to the standards set for export. It shall be the duty and responsibility of all collectors of customs to enforce the prohibition on the exportation of any Philippine product herein imposed.

University of the Philippines

Philippine General Hospital Transferred to the University of the Philippines

SECTION 158. The Philippine General Hospital is hereby transferred from the Office of the President to the University of the Philippines, together with its personnel, powers, functions, duties, records, equipment, supplies and unexpended balances of appropriations. The appropriations for the Philippine General Hospital shall continue to be itemized in the annual general appropriation acts.

Reallotment of Funds

SECTION 159. From the total authorized appropriation of P226,356,306 consisting of —

1. General Appropriations, Republic Act No. 156 —	P 225,644,306.00
2. For the creation of a Board to have charge of the selection and approval of textbooks to be used by the colleges and schools of the Government, Republic Act No. 139—	10,000.00
3. For the creation of the Bureau of Investigation, Republic Act No. 157 —	500,000.00
4. For the creation of a Patent Office, Republic Act No. 165 —	75,000.00
5. For the creation of a National Commission on Educational, Scientific and Cultural Matters, Republic Act No. 176 —	100,000.00
6. For the creation of the Bureau of Fisheries, Republic Act No. 177 —	25,000.00
7. For the creation of the Board of Electrical Engineering Examiners, Republic Act No. 184 —	2,000.00

the following sums, or so much thereof as may be necessary, are reallotted for the operation of the Government of the Republic of the Philippines during the period from July first, nineteen hundred and forty-seven, to June thirtieth, nineteen hundred and forty-eight except where otherwise specifically provided: