S. No. 94 H. No. 151 / 55 OG No. 29, 5454 (July 20, 1959)
"(g) To supervise and control the classification and grading of leaf tobacco in the packing establishments of wholesale tobacco dealers, exporters, large plantation owners, and auction floors; and"SEC. 2. Paragraphs (b), (h) and (k) of section three, Article two of Republic Act Numbered Eleven hundred and thirty-five, is hereby amended to read as follows:
"(b) To establish, maintain and/or subsidize a chemical tobacco research laboratory for industrialization studies on processing, fermentation and aging to produce a quality leaf for the factories and to establish and maintain and/or subsidize pilot plants for industrial studies in the manufacture of cigars and cigarettes, pipe and chewing tobacco to reduce the cost of production and develop new blends. This phase of the work shall toe coordinated with, and under the supervision of, the National Science Development Board.SEC. 3. Section four, Article three of Republic Act Numbered Eleven hundred and thirty-five, is hereby amended to read as follows:
"(h) To buy, process, and age, and sell all tobacco leaves, as well as stabilize and guarantee prices of just cured tobacco leaves, based on grades, and to promulgate such rules and regulations governing seed selection, pest control, culture, irrigation and the marketing of native tobacco leaf.
“(k) To encourage, foster and promote the establishment and maintenance by farmers' cooperative associations of factories for the manufacture of cigars, cigarettes, chewing tobacco, and other finished tobacco products, and to establish and maintain for this purpose a pilot factory in the area for such manufacture, and to act as agent, broker or commission merchant of producers' cooperative association or act as tobacco manufacturers' agent;"
"SEC. 4-A. Creation; Powers and Duties.—There shall be a Native Tobacco Classification Council which shall be under the direct supervision of the PTA to be composed of one chairman and two members, that shall have the exclusive power and authority to supervise and control the classification and grading of the native; leaf tobacco and to promulgate rules and regulations therefor not in conflict with any existing rules and regulations pertaining to and in pursuance of the authority to assess, levy or collect fees, charges or taxes on tobacco and tobacco products. The Chairman shall be designated by the General Manager of the Philippine Tobacco Administration from among its personnel, one member to be designated by the Bureau of internal Revenue, and one member to be appointed by the PTA Board of Directors, which shall predetermine the criteria for selection from among eligible native tobacco planters in the provinces where the native tobacco is produced, as well as the tenure of his office and his remuneration."SEC. 5. Section fifteen, Article eight of Republic Act Numbered Eleven hundred and thirty-five, is hereby amended to read as follows:
"There shall be added to the capital of the Philippine Tobacco Administration all the funds, assets and properties still available belonging to the defunct National Tobacco Corporation. In the event that there is an urgent or immediate need for funds to carry out the trading operations of the PTA and the funds herein appropriated are insufficient for such trading operations, the PTA may borrow the needed amount to be guaranteed by the Central Bank of the Philippines from any of the government financial institutions like the Philippine National Bank, the Development Bank of the Philippines and the Government Service Insurance System."SEC. 6. This Act shall take effect upon its approval.