AN ACT ESTABLISHING THE VIRGINIA TOBACCO ADMINISTRATION
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AN ACT ESTABLISHING THE VIRGINIA TOBACCO ADMINISTRATION
Republic Act No. 2265
June 19, 1959
Case Overview and Summary
Summary:Name and Domicile (Section 1)
- Establishes the "Philippine Virginia Tobacco Administration" (PVTA)
- Main office in Manila, with branches as necessary
Purposes and Objectives (Section 2)
- Promote effective merchandising of Virginia tobacco domestically and internationally
- Establish balanced production, consumption, and stable pricing of Virginia tobacco
- Create and operate facilities for processing, warehousing, and marketing Virginia tobacco
- Prescribe rules for grading, classifying, and inspecting Virginia tobacco
- Improve living and economic conditions of people in the tobacco industry
General Powers (Section 3)
- Adopt a corporate seal
- Make contracts, lease/own property, sue/be sued
- Submit annual report to the President and Congress
- Prescribe necessary regulations
- Make necessary expenditures
- Acquire assets and incur liabilities for authorized operations
Specific Powers (Section 4)
- Take over and control processing, warehousing, and trading of Virginia tobacco
- Buy Virginia tobacco grown in the Philippines for resale to local manufacturers and dealers (Section 4b)
- Give priority to purchases from farmers' cooperative marketing associations (Section 4c)
- Export Virginia tobacco directly or through cooperatives, with conditions (Section 4d)
- Give priority to using facilities owned by farmers' cooperatives (Section 4e)
- Develop and expand domestic and foreign markets for Virginia tobacco (Section 4f)
- Grant loans up to 7% interest to farmers' cooperatives for trading purposes (Section 4g)
- Enter into contracts as necessary (Section 4h)
- Promote cooperative associations among tobacco planters/producers (Section 4i)
- Exercise powers of a corporation under the Corporation Law (Section 4k)
Composition and Tenure of Board of Directors (Section 5)
- 7 members appointed by the President, including the Chairman
- Members must be natives of Virginia tobacco-growing provinces
- Initial terms of 1, 2, and 3 years, then 3-year terms
- Cannot simultaneously serve as director of other government corporations
Quorum and Compensation (Section 6)
- Quorum of 4 members
- Chairman receives 50 pesos per diem, members receive up to 30 pesos per diem
- Regular meetings twice a month, up to 4 special meetings per month
Powers and Duties of Board of Directors (Section 7)
- Prescribe bylaws, rules, and regulations (Section 7a)
- Appoint General Manager (12,000 pesos per year) and Assistant General Manager (9,600 pesos per year) (Section 7b)
- Confirm appointments of other officials and employees, except Auditor's staff (Section 7c)
- Approve annual and supplemental budgets (Section 7d)
- Perform other duties assigned by the President (Section 7e)
Powers and Duties of General Manager (Section 8)
- Manage affairs of PVTA under Board's supervision
- Submit annual budget 60 days before fiscal year start
- Appoint subordinate officials and employees, subject to Board confirmation
- Perform other duties assigned by the Board
- Submit annual report to the President through the Board within 60 days after fiscal year end
- Attend Board meetings but cannot vote
Powers and Duties of Assistant General Manager (Section 9)
- Assist the General Manager
- Act as General Manager in case of temporary absence/incapacity
- Attend Board meetings when acting as General Manager but cannot vote
Auditor and Personnel (Section 10)
- Auditor General is ex-officio auditor of PVTA
- Auditor General appoints and removes Auditor's staff upon recommendation of PVTA Auditor
- Operating expenses and salaries fixed by the Board and paid by PVTA
Basis for Appointments and Promotions (Section 11)
- Merit, seniority, and efficiency as basis
- No political test or qualification
Application of Civil Service Laws and Rules (Section 12)
- Officers and employees subject to Civil Service Law and Rules
- Except positions declared by the President as policy-determining, confidential, or highly technical
Annual Report (Section 13)
- Submit annual report within 60 days after fiscal year end
- Copy to the President and Congress
- Include financial statement certified by PVTA Auditor
Financing (Section 14)
- Central Bank to grant loans for purchasing locally grown flue-cured Virginia tobacco
- Loans to cover expenses for handling, processing, warehousing, and initial administrative expenses
- No loans for purchasing sun-dried Virginia tobacco
- No flue-cured Virginia tobacco to be classified as sun-dried
Transfer of ACCFA Functions and Operations (Section 15)
- ACCFA's functions and operations related to Virginia tobacco under R.A. 698 and 1194 transferred to PVTA
- FACOMAS dealing primarily with Virginia tobacco trading under PVTA supervision
- ACCFA to liquidate tobacco trading operations and stocks, proceeds to pay Central Bank debt
Applicability of Corporation Law (Section 16)
- Provisions of Corporation Law apply if not inconsistent with this Act
Repealing Clause (Section 17)
- Repeals inconsistent provisions of R.A. 698, 1135, 1194, and other orders/rules
Separability Clause (Section 18)
- If any provision is unconstitutional, the rest remains valid
Penal Provision (Section 19)
- Unlawful for PVTA officials/employees to engage in transactions involving PVTA funds
- Violation is malfeasance in office, punishable by:
- Fine of 1,000 to 10,000 pesos
- Imprisonment of 1 to 5 years
- Or both fine and imprisonment
- Plus other penalties under law
Effectivity (Section 20)
- Act takes effect upon approval on June 19, 1959
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Republic Acts
Virginia Tobacco Administration
Philippine Virginia Tobacco Administration (PVTA)
tobacco industry
tobacco processing
tobacco warehousing
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tobacco trading
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tobacco imports
tobacco cooperatives
tobacco loans
tobacco regulations
tobacco grading
tobacco classifying
tobacco inspecting
Law
AN ACT ESTABLISHING THE VIRGINIA TOBACCO ADMINISTRATION
Republic Act No. 2265
•June 19, 1959
REPUBLIC ACT No. 2265
AN ACT ESTABLISHING THE VIRGINIA TOBACCO ADMINISTRATION, DEFINING ITS OBJECTIVES, POWERS AND FUNCTIONS, AND FOR OTHER PURPOSES.
Section 1. Name and domicile. There is hereby created the "Philippine Virginia Tobacco Administration", hereinafter referred to as PVTA, which shall be organized upon approval of this Act. It shall have its main office in the City of Manila, and such branches and agencies within and outside of the Philippines as may be necessary for the proper conduct of its business.
Section 2. Purposes and objectives. The PVTA shall have the following purposes and objectives:
(a) To promote the effective merchandising of Virginia tobacco in the domestic and foreign markets so that those engaged in the industry will be places on a basis of economic security;
(b) To establish and maintain balanced production and consumption of Virginia Tobacco and its manufactured products, and such marketing conditions as will insure and stabilize the price at a level sufficient to cover the cost of production plus reasonable profit both in the local as well as in...
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