AN ACT ESTABLISHING THE VIRGINIA TOBACCO ADMINISTRATION

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